SUSTAINING THE RESOURCES ENTRUSTED TO OUR CARE.
Annual Real Estate Report
October 13, 2026
The San Francisco Public Utilities Commission
An Enterprise Department of the City and County of San Francisco, California
Annual Report
For the Fiscal Year Ended June 30, 2026
and other additional information as of the September 2025 Annual Report
Prepared by the Real Estate Services Division
3 The San Francisco Public Utilities Commission
Table of Contents
Introduction .............................................................................................. 4 Key Real Estate Initiatives ...................................................................... 6 Sales of SFPUC Real Property Interests ................................................ 9 Initiatives with Public Agencies ........................................................... 11 RES Participation in SFPUC Capital Projects ..................................... 14 Protection of SFPUC Infrastructure and Land .................................... 16 Third-Party Projects and Development ................................................ 18 Project Appendix ................................................................................... 21 Exhibits ................................................................................................... 28
4 Introduction
Mission
The San Francisco Public Utilities Commission (SFPUC) provides its customers with high-quality, efficient, and reliable water, power, and sewer services in a manner that incorporates environmental and community interests and sustains the resources entrusted to its care. The SFPUC Real Estate Services Division (RES) furthers this mission by carefully analyzing projects proposed for the real property over which the SFPUC has jurisdiction (SFPUC Property), issuing and administering rental agreements to third parties for the use of SFPUC Property, increasing rental revenue, and selling underutilized SFPUC Property.
RES also serves the three SFPUC enterprises by negotiating real property acquisitions and office and industrial leases for SFPUC operations and SFPUC capital projects and by resolving complex title issues. RES negotiates with third parties who seek to acquire real property interests from the SFPUC. Finally, RES works with colleagues in other divisions to protect the SFPUC by vetting proposed third- party projects for potential impacts on SFPUC Property and infrastructure. To this end, RES leads the In- City Project Review Committee in San Francisco and actively participates in the two other Project Review Committees outside of the City.
RES does not perform facilities management, which the three enterprises perform.
SFPUC Rental Revenues and Property Taxes
RES staff negotiates new leases, licenses, and memoranda of understanding for the use of SFPUC Property. The SFPUC rental agreement portfolio generates over $15.5 million annually from over 600 agreements. These transactions are subject to a complex project review process by several SFPUC divisions, the City Attorney’s Office, and regulatory agencies. The real estate agreements often require SFPUC Commission and San Francisco Board of Supervisors’ approval. Final agreements for even a small amount of SFPUC Property can take many months to negotiate and approve, particularly when other regulated public agencies are involved.
The SFPUC earned $15,548,738.64 in real estate rental revenue during the fiscal year 2025- 2026. Please see the chart attached as Exhibit A for a breakdown of the revenue by enterprise.
The SFPUC paid $2,906,572.22 in property taxes and assessments across the seven counties in which the SFPUC operates. Please see the chart attached as Exhibit C for a breakdown of taxes paid per county.
SFPUC rental agreements require tenants and licensees to reimburse the SFPUC for their pro rata share of property taxes and assessments paid by the SFPUC in proportion to the square footage of the SFPUC parcels they occupy. The SFPUC recouped
5 $240,375.85 in property taxes and assessment reimbursements from its tenants and licensees in the past fiscal year.
SFPUC Rental Expenditures
The SFPUC is both a landlord and a tenant. The SFPUC is currently a tenant under 38 leases, licenses, and Memoranda of Understanding ( Memoranda of Understanding) with the Port of San Francisco ( SF Port); however, it is a rent -paying tenant only under 21 of these agreements. The rental agreements allow for a variety of SFPUC uses, including construction staging, storage, vehicle parking, and equipment and materials storage; additional office space for staff; the installation and operation of water, power, and sewer infrastructure; and the operation of SFPUC telecommunications equipment.
The SFPUC’s base rent expenditures as a tenant increased from $6,844,053 for the fiscal year 2024- 25 to $7,569,168 for the fiscal year 2025- 2026. The SFPUC’s base rent expenditures as a tenant increased from $ for the fiscal 6,330,017.23 ase rent does not bThe . 2026-for the fiscal year 20256,844,053 25 to $-year 2024 include the cost of any utilities, insurance, taxes, or other fees that the SFPUC enterprises may be required to pay under each agreement. Please see Exhibit D, which summarizes the agreements in which the SFPUC is the tenant and the paid base rent 2026. -for fiscal year 2025
New SFPUC Tenant Agreements
RES negotiated other notable new and updated agreements where the SFPUC is a tenant:
• A new three- year office lease for the Hetch Hetchy Water and Power Division in the City of McClellan outside Sacramento (September 2025.)
• A new five -year parking and industrial office lease at 470 Bayshore Boulevard In San Francisco for the Wastewater Enterprise and support for the SFPUC Lower Alemany Stormwater Improvement Project (April 2026.)
• Three-year ground lease for the Water Enterprise San Francisco Water Division at 1876 Oakdale Avenue in San Francisco (October 2026).
• 66-year Memorandum of Understanding No. M-17468 with the Port of San Francisco ( SF Port ) for the new Emergency Firefighting Water System facilities at the Mission Bay Ferry Landing (June 2026).
• Six-month Memorandum of Understanding No. M-17307 with the SF Port for temporary staging related to the SFPUC Brannan Street Outfall Improvement Project (October 2025).
• Six-month Memorandum of Understanding No. M-17393 with the SF Port for temporary staging related to the SFPUC Sansome Street Outfall Improvement Project (February 2026).
6 • Five-year Temporary Construction Easement on San Francisco Assessor’s Parcel 5371 -020 owned by Best Tile for the SFPUC Lower Alemany Area Stormwater Improvement Project (February 2026).
• 60-day Permit to Enter for access and staging on property owned by Sunol Glen Unified School District for the SFPUC Town of Sunol Pipeline Replacement Project (May 2026).
• A Memorandum of Understanding between the SFPUC , the San Francisco Fire Department (SFFD) and the San Francisco Department of Public Works (Public Works) to preserve the SFPUC's access to and use of its existing wastewater facilities located within the SFFD’s new Division of Training site at 1200 Carroll Avenue in San Francisco (December 2025).
Extension of Existing SFPUC as Tenant Agreements
Other notable changes and updates where the SFPUC is a tenant include the following extended agreements:
• The SFPUC entered into a new five- year Memorandum of Understanding with the S F Port under which the SFPUC will continue to use approximately 3,440 square feet of shed space located at Pier 33.
• RES is currently renegotiating, on behalf of the Power Enterprise, the extension of three Memoranda of Understanding) with the SF Port.
Key Real Estate Initiatives
Purchase of the McElwaine Ranch
In December 2025, the City, through the SFPU C, acquired an approximately 42- acre property known as the “McElwaine Ranch” and located in the unincorporated Town of Moccasin in Tuolumne County. The McElwaine Ranch is a strategic property acquisition adjacent to SFPUC property in the area, creating an assemblage of land with existing SFPUC property while providing future flexibility for capital projects.
Southeast Community Center at 1550 Evans Avenue
The SFPUC operates the Southeast Community Center (SECC), located at 1550 Evans Avenue in San Francisco. The SECC serves as a local community hub and provides
7 reservable event spaces, non-profit office space and workstation desks, open space, an on-site café, and a low-cost childcare center.
On September 9, 2025, the SFPUC issued a solicitation for proposals for a contractor to operate the SECC Access Program to ensure that community members have access to high-quality services in the areas of digital literacy, technology access, career pathways, and economic development. Following the solicitation process, RES issued a lease to Five Keys Schools and Programs to operate the SECC Access Program in Double Rock Classroom No. 202.
Additionally, the SFPUC issued a new Request for Proposals in 2025 for non- profit entities to use Community Hub workstation spaces and office space on the SECC third floor. RES is currently working to issue four workstation licenses and one office lease to qualified non-profits. As a condition of the workstation licenses and the office lease, the Licensees and the Tenant must offer a combination of drop- in and pre- registered programs at the SECC that are open to the general public and free of charge for a minimum of 720 hours per year in the following program areas: (1) economic development, (2) environmental justice and advocacy, (3) financial empowerment, (4) health and well-being, (5) workforce development and education, (6) senior, youth, and family.
Grazing Lease Request for Proposals
The City, under the SFPUC’s jurisdiction, owns over 40,000 acres of land in the Alameda Creek Watershed, which is located within portions of Alameda and Santa Clara Counties. The SFPUC’s Alameda Creek Watershed lands include two reservoirs:
the San Antonio Reservoir and the Calaveras Reservoir. These reservoirs supply drinking water to San Francisco and other Bay Area communities as part of the Hetch Hetchy Regional Water System.
The SFPUC uses livestock grazing by tenants as one of many tools to achieve its resource management objectives within its watershed lands, which consist of approximately 33,000 acres of rangeland. These objectives include enhancing grassland and wildlife habitat, reducing the presence of non- native invasive plant species, reducing wildfire fuel loads, enhancing biodiversity, and promoting the growth of native vegetation.
The SFPUC recently issued a Request for Proposals for new grazing lease tenants.
Several existing grazing lease tenants submitted proposals. The SFPUC expects to award new leases in the next few months.
Balboa Reservoir Development
The SFPUC formerly had jurisdiction over an approximately 17- acre parcel known as the Balboa Reservoir site, located immediately west of the City College Ocean Avenue Campus in San Francisco (Balboa Reservoir Site). The City, through the SFPUC, sold the property on December 20, 2022, to BHC Balboa Builders , LLC, a California limited liability company and a BRIDGE Housing affiliate (Developer).
8 The Developer is developing a mixed- use project on the Balboa Reservoir Site that will include rental residential units, for -sale residential units, ground- floor retail and/or community organization space, open space, below -grade parking garages, and childcare and related uses (Balboa Reservoir Project).
The City, through the SFPUC, continues to own the fee interest in an eighty -foot (80) wide parcel of land located along the southern boundary of the Balboa Reservoir Site (Retained Fee). The Retained Fee is a utility corridor improved with SFPUC surface appurtenances and subsurface water transmission facilities that provide water service to a wide section of San Francisco residents.
In addition, the City, through the SFPUC, owns a parcel located between 1150 and 1298 Ocean Avenue (Ocean Avenue Parcel) near the Balboa Reservoir Site. The SFPUC owns and currently maintains various subsurface water and sewer infrastructure within the Ocean Avenue Parcel, as well as various above- ground appurtenances.
Neither the Retained Fee nor the Ocean Avenue Parcel are a part of the Balboa Reservoir Project, nor are they subject to the terms of the development agreement or the final map for the project.
On November 10, 2025, the Developer paid the SFPUC’s Water Enterprise $3,124,536.90 as the first note installment due under the agreement. As of June 30, 2026, the balance owed to the SFPUC is more than $9 million, which continues to accrue interest annually at three percent , subject to final payment due no later than December 31, 2028.
On December 2, 2025, the SFPUC issued a revocable license to the Developer to use a portion of the Retained Fee for vehicular access to implement the construction of residential improvements on a portion of the Balboa Reservoir Site and install new sewer facilities in and under a portion of the Retained Fee and a portion of the Ocean Avenue Parcel for the benefit of the Balboa Reservoir Project. As partial consideration for the use of the SFPUC land, the Developer will dedicate the sewer facilities to the City for ownership and maintenance.
SFPUC Property Bisecting Levi’s Stadium Parking Lot
The SFPUC owns approximately four acres of real property designated as SFPUC Parcel No. 142 in Santa Clara. SFPUC Parcel No. 142 bisects a portion of the main parking lot at Levi’s Stadium. The City of Santa Clara owns the land on one side of SFPUC Parcel No. 142, and land developer Prologis owns the other side.
The SFPUC’s primary use of SFPUC Parcel No. 142 is to access and operate its water transmission pipelines. The California Great America tenant , and its predecessors, have historically used the surface under a SFPUC lease to support its parking, landscaping, and access needs. The current theme park tenant is Six Flags, successor to Great America, which currently occupies Parcel No. 142 for parking and other uses on a month- to-month holdover basis under an expired lease between the SFPUC and the original theme park tenant.
9 The SFPUC is evaluating its options regarding the future use of Parcel No. 142 in preparation for larger upcoming regional events, such as 49ers football games, soccer games, and ongoing Levi’s Stadium concerts and other activities.
Bisected Parcel Permits
In certain areas of San Mateo and Alameda Counties, the SFPUC Property bisects adjacent parcels. These adjacent parcels have limited access and utility, and in some cases, are landlocked without authorization to use the SFPUC Property.
An SFPUC Bisected Parcel Permit allows an adjacent residential property owner (each, a Permittee) access to and use of a portion of the adjoining SFPUC Property as part of the Permittee’s yard or driveway.
The SFPUC issues Bisected Parcel Permits to adjacent residential property owners for five-year renewable terms. The Permittee must pay an annual fee starting at $200 and increasing by four percent annually thereafter, retain sufficient insurance to indemnify the City, and maintain the permitted portion of the SFPUC Property. RES manages 98 active fee-based Bisected Parcel Permits in San Mateo and Alameda Counties.
RES issued five new and 42 renewed Bisected Parcel Permits in the last fiscal year. A complete list of all Bisected Parcel Permits issued within the last fiscal year is attached as Exhibit F.
SFPUC Cottage Tenants
• Bay Area Cottage Leases : The SFPUC maintains 14 cottages leased for employee housing in the Bay Area. The SFPUC issued two new cottage leases in the past fiscal year.
• Hetch Hetchy and Upcountry Cottage Leases : The SFPUC maintains 41 cottage leases in Moccasin and the greater “Upcountry” area of the Tuolumne Watershed. The SFPUC issued five new cottage leases in the past fiscal year.
Sales of SFPUC Real Property Interests
Caltrans – Stanislaus County North County Corridor Project The California Department of Transportation (Caltrans) and various counties frequently target SFPUC Property for road improvement projects. These entities seek to acquire easements and small areas of SFPUC Property to widen bridges and roads and install
10 other road improvements. Sometimes, Caltrans and a county public works department will join forces to complete a road improvement project.
Highway improvement projects are generally complex and time- intensive under the threat of condemnation by Caltrans. RES, through the Project Review Committees, vets the projects to ensure their compliance with SFPUC policies . RES asl negotiates purchase and sale agreements, easements, and ancillary agreements, such as temporary licenses and cost -sharing agreements for the relocation of SFPUC water transmission pipelines.
One such project is the ongoing Stanislaus County -Caltrans North County Corridor Project – Phase 1: State Route 108 Expressway Project.
This is a high- priority Stanislaus County project to build a west -east expressway to improve regional circulation. The project seeks to connect State Route 219 near the City of Modesto to State Route 120 near the Town of Oakdale. The proposed expressway alignment crosses the SFPUC Property at two locations during two different phases of the project. The current phase ( Phase 1) will require the widening of Oakdale Road over SFPUC Property, a section of the Right -of-Way designated as SFPUC Parcel Numbers 647 and 648, to accommodate an anticipated increase in vehicular traffic.
RES issued a revocable license to Stanislaus County in March 2024 so that the road widening project can commence while the purchase and sale of the easement is completed.
Caltrans Arroyo de la Laguna Bridge Rehabilitation Project A second Caltrans project that requires the use of SFPUC Property is the Arroyo de la Laguna Bridge Rehabilitation Project in the unincorporated Town of Sunol.
The project plans to replace the existing 310- foot-long Arroyo de la Laguna Bridge on State Route 84 in Alameda County with a new bridge. Caltrans seeks to acquire approximately 16,488 square feet of SFPUC Parcel 65 for its new bridge and roadway improvements. Additionally, Caltrans requires the temporary use of approximately 114,043 square feet of SFPUC Parcel 65, adjacent to the Caltrans right -of-way, for construction staging, and another 84,992 square feet for the temporary monitoring and maintenance of restored vegetation in areas impacted by the project.
RES issued and delivered three fully executed licenses to Caltrans in June 2025 so that the project can commence while the parties’ purchase and sale of the property is completed.
Pending Sale of Parcel 21 to the City of South San Francisco RES is currently working with the City of South San Francisco to convey a remnant of the former Spring Valley Water Company Parcel 21 in South San Francisco to facilitate the City of South San Francisco’s Civic Campus Project. This Parcel 21 remnant never contained any SFPUC utility infrastructure. The City of South San Francisco has historically used Parcel 21 as a component of the public streets known as Mission Road
11 and Antoinette Lane under an SFPUC revocable license. The City of South San Francisco seeks to purchase the property to gain full control of its road infrastructure and all future improvements.
The SFPUC Commission and the San Francisco Board of Supervisors approved the sale of Parcel 21 to South San Francisco for the appraised fair market value of $132,000. SFPUC and South San Francisco staff are actively working to close the escrow on this transaction, tentatively set for September 2, 2026.
Sale of Easements to the City of Daly City
The SFPUC and the City of Daly City (Daly City) have been working collaboratively to implement Daly City’s Vista Grande Basin Drainage Improvement Project . This project will address storm-related flooding in the Vista Grande Drainage Basin in the northwest portion of Daly City and unincorporated San Mateo County. The project will benefit the SFPUC by augmenting Lake Merced water levels with treated stormwater. To implement the project, the SFPUC quitclaimed its existing easements for the Vista Grande Tunnel to Daly City and conveyed five additional easements to Daly City for project-related stormwater facilities. Additionally, the SFPUC granted Daly City a ten- year license to construct and maintain habitat mitigation sites at Lake Merced, a 50-year license to construct, operate, and maintain overflow -prevention facilities that will allow the removal of water from Lake Merced, and a 48- month license for staging related to project construction. The SFPUC and Daly City closed escrow in June 2026, and the project is currently in construction.
Remaining Underutilized Property
The SFPUC has the following remaining underutilized parcels: (1) two Manzano Way lots in Sunnyvale; (2) the Niles Reservoir and cottage in Fremont; (3) the remaining Old Muni Right of Way parcels in Burlingame; and (4) the former Hetch Hetchy Railroad right-of-way parcels in Tuolumne County. RES continues its efforts to sell these underutilized parcels. The disposition of any property serving no present or future utility purpose eliminates operational and maintenance costs , as well as unforeseen capital expenditures that would arise from continued ownership.
Initiatives with Public Agencies
and Universities
The SFPUC issued any older revocable permits for public agency use of SFPUC Property many years ago. The permits are both factually and legally outdated. They often fail to document all current public agency uses of SFPUC Property. In addition, these older permits lack the modern engineering restrictions, environmental protections, and indemnity and insurance requirements found in current SFPUC real estate agreements.
12 RES works on an ongoing basis to issue modern revocable licenses to replace outdated agreements. Negotiations are lengthy, often taking years to enter into executed agreements.
The SFPUC issued these licenses this year after multi-year negotiations:
• City of Palo Alto. On March 14, 2026, the SFPUC issued a seven- year revocable license to the City of Palo Alto (Palo Alto) to maintain gas transmission pipelines on SFPUC land at Page Mill Road, at an annual rent of $960, subject to four-percent annual increases . The 2026 license replaced an expired 2014 license issued to Palo Alto.
• City of Sunnyvale. On May 12, 2026, via Resolution No. 26- 0074, the Commission approved a no- fee revocable license to the City of Sunnyvale (Sunnyvale) to continue to use 17 acres of SFPUC land for a public recreational path, linear park, street crossings, and landscaping. The new license consolidated and replaced 10 outdated licenses issued over time since 1957.
The new license requires Sunnyvale to maintain a vacant SFPUC parcel as non- monetary consideration, saving the SFPUC the cost of maintaining the parcel.
• City of South San Francisco. On July 14, 2026, via Resolution No. 26- 0111, the Commission approved a no- fee, revocable, nine- year license to the City of South San Francisco (South San Francisco) to continue using approximately 5.6 acres of SFPUC property for a widened public recreational path, a renovated linear park, and landscaping. The nine- year license replaced two outdated revocable permits, one from 1969 and one from 2011. In exchange, South San Francisco will maintain an additional SFPUC parcel, saving the SFPUC the cost of its maintenance. South San Francisco will also manage the surface water drainage within an area prone to occasional flooding.
Consistent with other SFPUC licenses, both Sunnyvale and South San Francisco will install SFPUC- approved educational signage on the pathways in their respective license areas. The signage will provide a high- level overview of the Hetch Hetchy Regional Water System to pathway users.
• City of Burlingame. The SFPUC owns the former Muni Right -of-Way parcels in Burlingame. On July 21, 2026, the City of Burlingame (Burlingame) signed a revocable license to replace three old permits and a former lease that had been issued over the years since 1964. The new license will allow Burlingame to continue using a portion of the SFPUC property to maintain a portion of California Drive as a roadway, and to accommodate an existing off -street parking lot, an existing bus stop, two existing corporation yards, and an underground water main on the SFPUC parcels. The license also authorizes Burlingame to install and maintain a new bicycle-and-pedestrian trail on the parcels. RES will ask the SFPUC General Manager to sign this license after the SFPUC approves Burlingame’s 100 percent plans for the new improvements, expected to occur in December of this year.
13 • Stanford University. The SFPUC also continues to work with Stanford University to document all of Stanford University's current uses of SFPUC Property. Additionally, the SFPUC has an undocumented use of Stanford property, and the parties are actively negotiating a Reciprocal Use Agreement as described below.
• Internal Memoranda of Understanding within the SFPUC . The SFPUC Wastewater Enterprise had exclusive jurisdiction over an approximately 2.75- acre rectangular parcel formerly designated as San Francisco Block 5227, Lot 1.
The Power Enterprise desired to acquire jurisdiction over an approximately 13,403-square-foot portion of the Wastewater Enterprise’s property to develop electrical transmission and electrical distribution facilities, as part of the Power Enterprise Bay Corridor Transmission and Distribution Project. RES worked with an appraiser to assess the value of the transfer parcel, acquired a certificate of compliance for the subdivision of the property, and negotiated the internal jurisdictional transfer Memorandum of Understanding between the Wastewater Enterprise and the Power Enterprise.
14 RES Participation in SFPUC Capital Projects
RES staff acquires real estate rights for many Capital Improvement Program projects implemented mostly through the SFPUC’s Project Management Bureau. These capital projects are varied and include projects under the Water System Improvement Program, the Sewer System Improvement Program, the Water and Wastewater Enterprise Renewal and Replacement Programs, and other capital programs requiring right -of-way acquisition work.
RES actively participates in the development of new capital projects during the alternatives analysis, conceptual engineering, and design phases, identifying potential right-of-way issues and needs and providing opportunities to design around them at the earliest stages, where possible. RES works closely with the Project Management Bureau to assess alternatives, identify right -of-way issues, and plan acquisition strategies. RES supports the Project Management Bureau in drafting alternative analysis reports, scoring alternatives, and selecting project alternatives and alignments for further development. RES also participates in Technical Steering Committee meetings, presenting information to senior staff and fielding questions to aid the committee’s consideration of a project at key milestones and to determine whether project development should proceed.
RES support includes conducting extensive research and analysis of parcel ownership, providing input and feedback during the project planning and design phases, providing maps and drawings, coordinating with property owners and other public agencies and City departments, working with adjacent property owners to remove encroaching structures and vegetation before beginning project work, acquiring land rights from private property owners, negotiating agreements for temporary laydown and construction staging areas on third- party land, and negotiating, drafting, and seeking approval for various agreements.RES performs all work related to the property acquisition, including obtaining title reports, preparing legal descriptions and plat maps, ordering and obtaining appraisals, drafting purchase agreements and deeds, preparing government code offer packages, meeting with property owners to make offers, negotiating offers, obtaining SFPUC Commission and Board of Supervisors’ approval, and coordinating and closing escrow.
Many capital projects require the use of land under the jurisdiction of other City departments. In these instances, RES works with the Project Management Bureau to solicit feedback from the impacted City department(s) during the planning and design phases and to negotiate the necessary Memorandum of Understanding to construct the project.
Some SFPUC capital projects, including the Ocean Beach Climate Change Adaptation Project and the Seacliff 1 Pump Station and Force Main Upgrade Project, involve the use of federal lands under the jurisdiction of the National Park Service, through its
15 Golden Gate National Recreation Area (Park Service). RES works with the Park Service to review and provide feedback during the design phases of an SFPUC project and to obtain the necessary right -of-way authorizations for project elements within Park Service lands.
Key Completed Right-of-Way Transactions
• The SFPUC acquired a permanent access easement and two temporary construction easements on property owned by BART at Mission Road in Colma for vehicular and pedestrian access to the SFPUC’s Groundwater Well Station.
• The SFPUC entered into a 66-year Memorandum of Understanding, No.
M-17468, with the SF Port to install new Emergency Firefighting Water System facilities at the Mission Bay Ferry Landing.
• The SFPUC acquired a five-year temporary construction easement from Best Tile for the use of San Francisco Assessor’s Parcel 5371- 020 for the SFPUC Lower Alemany Area Stormwater Improvement Project (February 2026).
• The SFPUC acquired a permanent pipeline easement and a temporary construction easement on property owned by Sunol Glen Unified School District for the SFPUC Town of Sunol Pipeline Replacement Project (May 2026).
• The City, through the SFPUC, conveyed an easement to PG&E for a new natural gas meter station to deliver an increased natural gas supply to the Southeast Treatment Plant for the SFPUC Biosolids Digester Facilities Project.
SFPUC Use of Other City Land
Many proposed or active SFPUC capital projects involve the use of land under the jurisdiction of other City departments. Other City projects incorporate former streets in which the SFPUC maintains infrastructure. RES often negotiates memoranda of understanding with other City departments to protect the SFPUC’s utility assets in the vacated public streets.
One recent example is the Memorandum of Understanding dated December 5, 2025 between the SFPUC and SFFD and Public Works. As discussed above, t he Memorandum of Understanding will protect the SFPUC’s access to and use of its sewer facilities within a new fire training facility on approximately eight acres of r eal property under the SFFD’s jurisdiction (SFFD Property) located at 1236 Carroll Avenue in San Francisco. The SFFD project will incorporate three vacated City streets containing SFPUC facilities.
The construction of the fire training facility is anticipated to be substantially completed by 2028.
16 Hetch Hetchy Water and Power Division Projects
The SFPUC’s Hetch Hetchy Water and Power (HHWP) Division reviews a wide array of SFPUC and third -party projects that range from smaller projects, such as irrigation line installations and the planting of row crops, to larger -scale projects, such as highway expansions and utility relocations, that require significantly more RES involvement.
HHWP projects often involve significant coordination with multiple government agencies at the federal, state, and/or local levels. When a project proposal involves coordination with additional government agency stakeholders, each agency may need to conduct its own review of the project, issue its own authorization (e.g., a permit), and/or participate in real estate negotiations with the SFPUC. This additional coordination may add additional time to complete the Project Review and approval processes. HHWP and RES continue to work to streamline and improve the HHWP Project Review process.
Please see the Project Appendix for a list of current Hetch Hetchy Water and Power projects.
Current SFPUC Capital Projects
The key capital projects in which RES is participating are described in the attached Project Appendix.
Protection of SFPUC Infrastructure and Land
Right of Way Projects
City staff continues to handle a large influx of proposed real estate development projects impacting SFPUC Property and utilities. RES staff work with colleagues in other divisions to protect SFPUC Property by vetting proposed third- party projects for potential negative impacts on the SFPUC’s access to and use of the Right of Way. To this end, RES leads the In- City Project Review Team in San Francisco and participates with the Bay Area Project Review team and the Hetch Hetchy Water and Power Project Review team. The purpose of these committees is to vet proposed third- party uses for conflicts with SFPUC infrastructure and for conformance with SFPUC policies, of which the foremost policy is that the primary purpose of SFPUC Property is for its utility use.
Throughout the Bay Area and in more distant areas such as the City of Modesto, owners of the property adjacent to the Right of Way are redeveloping their adjacent property with denser uses. The third parties include savvy high- net-worth real estate developers and public agencies, and their consultants. They are replacing adjacent low-density shopping centers, small office building centers, and once industrial and
17 agricultural lands with high- density uses, such as mixed housing/office projects and large residential subdivisions. In addition, with recent State legislation supporting increased housing development, more and more accessory dwelling units are being installed, often with little setback from the Right of Way boundaries.
Third-Party Projects
SFPUC staff regularly review public notices to learn about third- party projects and then contact the project sponsor to try to offer early comments. Staff requests that the project sponsor present their projects before one of the Project Review Committees before proceeding with their projects. Despite staff's efforts, third parties routinely proceed to plan the use of the Right of Way in their projects without attempting to comply with SFPUC policies regarding the use of the Right of Way. Here are some examples:
• Third parties often put SFPUC Property in their public presentations for development proposals and CEQA documents without first obtaining SFPUC comments or consent. Often, their proposed uses conflict with SFPUC infrastructure and SFPUC land use and engineering policies.
• Real estate developers routinely include the Right of Way in their subdivision maps even though the City, through the SFPUC, owns this land. They plan roads, utilities, art installations, and recreational uses, benefitting their adjoining properties on the Right of Way. They sometimes seek to construct buildings close to property boundaries that not only affect the SFPUC’s ability to access its utilities (especially its overhead powerlines ) but also make it impossible for the walls and windows of these new buildings adjacent to the property boundary to be maintained without accessing SFPUC property.
• Public agencies plan parallel roads, other transit corridors like express bus lanes, utility installations, and recreational uses of the Right of Way without SFPUC input.
• Public agencies often apply for grant funding for a particular use on the Right of Way without the SFPUC's knowledge or input and then pressure SFPUC staff to approve the use because of grant deadlines.
• Adjacent property owners such as schools plan permanent uses like emergency access lanes and playgrounds on the Right of Way.
• Some Bay Area and Central Valley governments have changed, or tried to change, the zoning of SFPUC right -of-way parcels to “open space” with little or insufficient notice to the SFPUC. This effort complicates SFPUC operations and interferes with some existing SFPUC leases for other uses, particularly in jurisdictions with strict time limits for existing, nonconforming uses (e.g., a time limit for land uses, other than open space uses, to exist on the parcel).
RES works with other SFPUC staff and the City Attorney’s Office to respond to all such
18 proposals and protect the SFPUC’s interests
Third-Party Projects and Development
In-City Project Review Committee
RES leads and manages the In- City Project Review Committee. This committee reviews project proposals initiated by third parties and other City departments that affect SFPUC infrastructure or use SFPUC Property located within the City and County of San Francisco. The Committee also reviews tentative subdivision maps, street and easement vacations, and sidewalk changes when requested by the San Francisco Public Works Bureau of Street -Use and Mapping. This year , RES implemented an online application form for ease of use by project sponsors and staff.
In-City Project Review meetings are scheduled to discuss the impact of the projects and their feasibility. RES staff review and comment on all projects and solicit input from other SFPUC enterprises in order to issue a single consolidated comment letter on behalf of the SFPUC for the proposed work.
In the past year, RES analyzed and commented upon 21 proposed projects at the following locations in San Francisco:
• Buchanan Street Mall
• San Jose Avenue between Goethe Street and Alemany Boulevard • 70 Elk Street
• 3333 Mission Street
• 1301 Cesar Chavez Street and 1098 23
rd Street
• 335 Franconia Street and 146 Brewster Street
• 1354 York Street
• 1200-1298 3rd Street
• 306 Rutland Street
• Turner Terrace and Watchman Way
• Quint Street at Jerrold Avenue
• 207 Skyline Boulevard
• 1755 Egbert Avenue
• 159 Fell Street
• 380-386 Ivy Street and 534-536 Octavia Street
• 1721-1729 15th Street
• Portions of Quint St, McKinnon Avenue, and Newcomb Avenue • Potrero Power Station
• Oscar Alley
• 2395 Sacramento Street/2040 Webster Street
19 • 1252-1256 Howard Street
Bay Area Project Review Committee
RES collaborates with SFPUC colleagues in several divisions to protect SFPUC assets outside of San Francisco. Through the SFPUC’s formal Project Review process, SFPUC staff review proposals for secondary uses of SFPUC Property in Alameda, Santa Clara, and San Mateo Counties. Staff from the Water Enterprise’s Natural Resources Land Management Division, Water Supply and Treatment Division, and RES determine whether a proposal is compatible with City and SFPUC -adopted plans and policies.
Consistent with the Land Use Framework approved by the SFPUC’s Commission via Resolution No. 12-0042 on March 13, 2012, the SFPUC may permit a secondary use on the SFPUC right -of-way only if it benefits the SFPUC, is consistent with the SFPUC’s mission and policies, and does not in any way interfere with, endanger, or damage the SFPUC’s current or future operations, security, or facilities. No secondary use of SFPUC Property is permitted without the SFPUC’s written consent.
As the land adjacent to the SFPUC Right of Way in the Bay Area continues to be redeveloped for denser suburban and urban uses, vacant space has grown more limited. Private parties and public agencies increasingly seek to use the SFPUC Property for various uses. Real property appraisals show that SFPUC Property usually increases in value because of these project proposals. The owners of adjacent redeveloped private parcels seeking to use SFPUC Property often display significant resistance to RES’s efforts to meet the SFPUC’s obligation to charge fair market value.
RES staff often spend time negotiating rental rates for new real estate agreements and addressing project-specific issues to protect SFPUC interests.
As an active participant in the Project Review process, RES reviews each application, analyzes any existing land rights in the proposed project area, and determines the appropriate real estate agreement to authorize the proposed third- party use on SFPUC property (lease, license, consent letter, or , in very rare cases, an agreement for the purchase and sale of easements or SFPUC Property).
RES analyzed and provided comments for 62 projects during the Bay Area Project Review Meeting and Administrative Review processes during fiscal year 2025-2026. Of those 62 projects, RES analyzed and provided comments for (i) 14 projects from public agencies; (ii) two private-party projects; (iii) seven communications or (non- PG&E) utility installation projects; (iv) 26 PG&E projects; and (v) 13 internal SFPUC projects.
Many of the projects presented to the Project Review Committee are complex projects that require several rounds of review by SFPUC staff and revisions by the project sponsor before the proposal can be approved and authorized through a fully executed real estate agreement. Many of these projects begin the Project Review process in one fiscal year but receive approval through a fully executed real estate agreement during the subsequent fiscal year. Of the 62 projects RES analyzed in fiscal year 2025-
20 2026, seven real estate agreements were fully executed and delivered to the project sponsors.
In addition to the Project Review process, RES receives project review applications from the Natural Resources and Lands Management Division by “Direct Referral”.
These project applications are for minor work that does not require the formal Project Review committee to meet and confer. Such projects are typically less complex with low risk of impacts to SFPUC assets and include proposed fiber optic conduit installations, construction parking and/or staging, surface road work, and basic improvements to existing recreational uses. RES analyzed 14 projects that did not require participation in the formal Project Review process in the fiscal year 2025- 2026.
RES analyzed a total of 76 Bay Area projects in the fiscal year 2025-2026.
Pacific Gas and Electric Company Projects
As part of its ongoing plan to implement projects and accommodate new, more stringent safety and performance requirements in the wake of the Northern California wildfires, the Pacific Gas and Electric Company (PG&E) continues to request SFPUC approval for a variety of projects. These projects include (i) vegetation management initiatives related to power transmission and gas distribution; (ii) gas pipeline inspection, replacement, installation, and retirement projects; and (iii) electric transmission and distribution line inspection, pole and tower repair, and replacement, and reconductoring projects.
In the past fiscal year, the SFPUC, through RES, issued 17 agreements (revocable licenses, work authorization letters, and consent letters) for new and existing PG&E projects.
PG&E’s ongoing annual vegetation management projects have become short -term, small-scale vegetation maintenance (pruning) activities along roads and existing access routes. The SFPUC reviews PG&E’s vegetation maintenance activities through the Project Review process, but PG&E vegetation maintenance usually proceeds under a short-term access permit issued by the Natural Resources and Lands Management Division when appropriate.
SFPUC and PG&E staff continue to meet regularly to discuss pending and new projects and make process improvements to accommodate PG&E’s critical work.
A list of real estate agreements the SFPUC issued to PG&E in fiscal year 2025- 2026 is attached as Exhibit D.
21 Summary
In fiscal year 2025-2026, RES earned over $15.5 million in revenue for the SFPUC. The small RES team analyzed over 150 new third- party projects proposed for the use of SFPUC property, issued over 135 new real estate agreements, provided real estate transactional support for over 50 SFPUC active capital projects, continued to negotiate scores of draft agreements for third- party use of SFPUC Property, and administered over 600 existing real estate agreements for the use of SFPUC Property in seven counties.
Project Appendix
Current Water Enterprise Capital Projects
• Regional Groundwater Storage and Recovery Project, Phase I and Phase II : This ongoing project seeks to continue building groundwater facilities in San Mateo County to fulfill the goal of diversifying the SFPUC’s regional water supply for drought protection. RES activities this year included:
• Negotiating with BART, the City of South San Francisco, and a private developer for temporary access rights and permanent access easements for the SFPUC’s groundwater well station near Antoinette Lane in South San Francisco.
• Obtaining SFPUC Commission and San Francisco Board of Supervisors’ approval to purchase an aerial easement and two footing easements for a pipeline across San Mateo County Flood Control property.
• Emergency Fire Water System Project: The SFPUC Emergency Fire Water System (EFWS), formerly known as the Auxiliary Water Supply System, is an independent high- pressure, non- potable water supply system built following the 1906 earthquake and dedicated to fire protection. The EFWS mainly serves the northeastern portion of the City. RES continues to support the SFPUC project team in its efforts to improve the EFWS at various locations. RES is currently assisting with plans to install fireboat manifolds at Fort Mason on land under the jurisdiction of the Golden Gate National Recreation Area, and at Piers 20 and 35.5 on land under the SF Port jurisdiction.
22 • Bay Division Pipeline Nos. 1 and 2 Caltrain Crossing Upgrade: RES is working with the SFPUC Project Management Bureau and Caltrain to remediate a structural risk to a railroad bridge in Redwood City and to slip- line approximately 600 linear feet of pipeline where it crosses below the Caltrain tracks. The project will require RES support to negotiate an Amended and Restated Easement Agreement with Caltrain.
• Bay Division Pipeline Nos. 3 and 4 Crossover Project : RES is working with the Veterans’ Administration Hospital in Palo Alto on a project to acquire an access easement for permanent access to the SFPUC Crossover facility that runs through the Veterans’ Administration Hospital campus.
• Bay Division Pipeline Nos. 3 and 4 Valve Lot Safe Pipe Entry Project : RES is working with the SFPUC Project Management Bureau the City of Sunnyvale, Stanford University, and others to acquire the necessary right -of-way authorizations to construct the project.
• Bay Division Pipeline Nos. 3 and 4 Acoustic Fiber Optic PCCP Pipeline Monitoring Project: RES is negotiating a license to use property owned by Stanford University for access and construction staging during project construction.
• San Francisco Water Division Campus at 2000 Marin: RES is working with colleagues to negotiate an internal Memorandum of Understanding between the Water, Power, and Wastewater Enterprises for the mutual use of parcels belonging to the Wastewater Enterprise. The Wastewater Enterprise parcels contain the SFPUC’s Islais Creek Transport/Storage Box. The Wastewater Enterprise parcels would become part of the new SFWD campus to be used for traffic circulation and the installation of an EFWS pipeline and a n electrical duct bank across the Wastewater Enterprise parcels . The Memorandum of Understanding would allow the Wastewater Enterprise’s parcels to be used by the Water and Power Enterprises, while protecting the Wastewater Enterprise’s original utility purpose and assets.
• Cathodic Protection Capital Upgrades Phase III : This project will install cathodic protection improvements on the SFPUC pipeline right of way. RES will acquire utility easements, access easements, and temporary construction easements, as and where needed, for the improvements and for the installation of electrical supply lines needed to power the improvements. Currently, RES is working with the East Bay Regional Park District to acquire an easement for PG&E facilities for the SFPUC’s Calaveras Pipeline.
RES has also identified the need to acquire a second easement for this project on private property for the PG&E facilities. RES is currently obtaining appraisals for the value of the proposed easements.
• Crystal Springs Pipeline No. 2, Reaches 2 and 3 Re- Lining Project: This project seeks to rehabilitate Reaches 2 and 3 of Crystal Springs Pipeline No. 2 by replacing a portion of the pipeline within a new alignment and re- lining the rest. The project seeks to require access pits at multiple locations, as well as the construction of new manholes and the modification or relocation of pipeline appurtenances. The project is currently in the design phase. The anticipated right -of-way needs include (i) acquiring easements for the portions of the new pipeline that would cross private property; (ii) locating temporary space on SFPUC Property or within public right -of-way for temporary
23 equipment laydown and staging; and (iii) negotiating memoranda of agreement with impacted municipalities for project implementation.
• Golden Gate Park Water Main Rehabilitation Project : This project will reline an existing 12-inch cast iron water main within Golden Gate Park. RES is working with the Project Management Bureau on a Memorandum of Understanding with the San Francisco Recreation and Parks Department.
• Millbrae Yard Lab and Shops Improvement Project : This project seeks to redevelop the Millbrae Yard over multiple phases. RES support for the project to date has included an extensive analysis of the existing historic easements and agreements on the multiple parcels that comprise the Millbrae Yard, assisting with obtaining an accurate ALTA survey for the project site from the City’s Bureau of Streets and Mapping, and coordinating with the existing tenants to perform geotechnical and other investigations.
The a nticipated future RES support will mainly include coordinating with the existing tenants and easement holders to implement the project.
• Moccasin Dam Long- Term Improvement Project: This project proposes to construct a stilling basin on federal lands under the jurisdiction of the United States Bureau of Land Management (BLM), adjacent to SFPUC Raker Act lands. RES will support the Project Management Bureau to complete a “Section 2 Amendment” of the Raker Act, which would effectively remove certain lands not being used and not necessary for SFPUC operations and replace them with the area where the new stilling basin would be constructed. The BLM has identified an AT& T utility conflict that needs to be relocated and resolved prior to moving the Section 2 Amendment forward. RES is working with the SFPUC project team to help coordinate that utility relocation.
• Moccasin Penstocks Rehabilitation Project : This project is in the Alternatives Analysis Phase. Anticipated future work includes (i) acquiring special use permits from the BLM for the necessary access road improvements; (ii) potentially amending the SFPUC’s Raker Act grant; (iii) coordinating with Caltrans to define its Highway 49 right -of-way where it crosses SFPUC Property; and (iv) obtaining an encroachment permit from Caltrans to allow for new access to the SFPUC project area from Highway 49.
• Potable Emergency Firefighting Water System (PEFWS) : This proposed system is related to the EFWS. The PEFWS will serve the west side of San Francisco and will be connected to the drinking water system, using a system of valves that can be closed when needed, to function at the high pressure required for firefighting. RES will negotiate any necessary agreements with other City departments to install pipelines for the new system through City property (i.e., Stern Grove and Golden Gate Park).
• Southern Skyline Boulevard Ridge Trail Extension : This project constructed approximately six miles of multi -purpose trail generally following Skyline Boulevard (State Route 35) from State Route 92 to the southern boundary of the Peninsula Watershed at the Phleger Estate. RES will work to assume the existing easement owned by the Bay Area Ridge Trail Council across the Skylawn Memorial Park.
24 Current Wastewater Enterprise Capital Projects
• Folsom Area Stormwater Improvement Project: The SFPUC seeks to construct a 3,800- linear-foot, 12-foot-inside-diameter wet-weather conveyance tunnel along Alameda, De Haro, and Berry streets, extending between Florida Street and near the intersection of 7th Street and Berry Street. RES negotiated: (i) the acquisition of tunnel easements and restricted development easements across and below three commercial properties; (ii) the acquisition of a temporary access easement on a commercial property; (iii) a Right of Entry from the Peninsular Corridor Joint Powers Board at Berry Street; (iv) the negotiation of a lease for the use of Caltrans property to support the construction and operation of a shaft and tunnel boring machine; and (v) a license with Amazon.com Services, LLC for the use of approximately three acres of land for construction staging and SFPUC contractor operations.
• Islais Creek Southeast Outfall Bypass Service Life Extension Project: This project seeks to extend the life of the emergency bypass pipeline that the SFPUC constructed across Islais Creek. The project is almost entirely within the jurisdiction of the SF Port. RES support for this project includes: (i) negotiating a Memorandum of Understanding with SF Port for construction staging; and (ii) obtaining the required encroachment and building permit from the SF Port for construction.
• Lower Alemany Stormwater Improvement Project : The SFPUC seeks to bore a 5,650- foot-long 10-foot-diameter tunnel to alleviate flooding and improve flood resilience in the Lower Alemany Boulevard area. RES negotiated (i) the acquisition of tunnel easements across and below three residential properties; (ii) the completed acquisition of a temporary access easement across a commercial property; and (iii) a lease for the use of a commercial property for parking for local businesses to offset the significant loss of parking that will occur during project construction.
• PS-4 Security Upgrades Project : This project seeks to complete security upgrades at four wastewater pump stations. Two of the pump stations are partially located within the Caltrans Right of Way. RES worked with the Project Management Bureau and Caltrans to negotiate a Project -Specific Freeway Maintenance Agreement for the new security facilities.
• Seacliff No. 1 Pump Station and Force Main Upgrade Project : This project seeks to replace the existing Seacliff Pump Station No. 1 in a new location. The pump station is currently located in a landlocked SFPUC parcel at China Beach in San Francisco. The topography of the area and the landlocked nature of the SFPUC parcel led to the SFPUC’s decision to relocate the pump station to a location within the public right -of- way at the end of Seacliff Avenue. RES coordinated, among other things , the effort to obtain Special Use Permits from the National Park Service for the necessary access to decommission the existing pump station and for the long- term placement of electrical cabinetry on Golden Gate National Recreation Area property. Additionally, RES is negotiating with a property owner to acquire a temporary construction easement on private property, adjacent to an existing SFPUC easement, to perform the necessary work on the facilities within the easement.
25 • Westside Force Main Replacement Project: This project seeks to replace the existing Westside Force Main between the Westside Pump Station and the Oceanside Treatment Plant in San Francisco. RES will coordinate with the San Francisco Zoo and the San Francisco Recreation and Parks Department during the planning and design phases and negotiat e a Memorandum of Understanding with the San Francisco Recreation and Parks Department.
• Ocean Beach Climate Change Adaptation Project : This project focuses on alleviating chronic shoreline erosion at Ocean Beach between Sloat Boulevard and Fort Funston in San Francisco . The p roject elements include managed retreat, beach nourishment through the placement of sand, the construction of a buried wall to protect the Lake Merced Tunnel, public beach access and recreational improvements, and the permanent closure of the Great Highway Extension. RES is working with the National Park Service, among other things, to obtain easements for the project components on Golden Gate National Recreation Area lands and working with the San Francisco Recreation and Parks Department to negotiate a Memorandum of Understanding to govern the respective responsibilities and obligations of each department for the various improvements installed on the Recreation and Parks Department lands as part of the project.
• Quint Street Vacation and Jurisdictional Transfer : A Caltrain project in 2014 bisected Quint Street just south of Jerrold Avenue, creating a dead- end street on a block where the SFPUC owns the property on both sides of the street. To mitigate security issues, illegal dumping, and public safety concerns common to dead- end streets in San Francisco, the SFPUC seeks to install a control gate across Quint Street, securing the site and preventing public access. In order f or the SFPUC to control access at Quint Street (a public street), the San Francisco Board of Supervisors must pass legislation ordering the vacation of that portion of the street and authorizing the jurisdictional transfer of the vacated street portion from Public Works to the SFPUC. RES staff is leading the effort with Public Works and the City’s Real Estate Division to complete the street vacation and jurisdictional property transfer.
Current Power Enterprise Capital Projects
• SFPUC/Port Northern Waterfront Electrification Project : The SFPUC and the SF Port seek to increase the SFPUC’s capacity to provide power to Port operations. SFPUC and Port staff identified Port property on which the SFPUC could design and construct electrical infrastructure for the benefit of the SF Port ’s maritime operations. The project is currently in its design phase and has required significant RES support to gain Caltrans’ concurrence for the project , given Caltrans’ Bay Bridge easement on SF Port property. The new facilities will require a 66- year Memorandum of Understanding with the SF Port.
• Cordia Steam Loop Substation: The SFPUC is working with Cordia on the design of a new substation to serve Cordia’s goal of converting steam to clean energy . The substation would be constructed and owned by Cordia. The SFPUC is negotiating with Cordia to construct additional substation capacity in San Francisco so that the SFPUC
26 can serve non-Cordia customers as well. The arrangement will require a new easement to the SFPUC, as well as additional agreements for lease of space.
• Yerba Buena Island Project at McCalla Road : Caltrans, the Treasure Island Development Authority (TIDA), and the SFPUC have been working together to realign portions of the freeway on- ramps and surface streets, requiring utility relocations , on Yerba Buena Island. RES negotiated (i) an Easement Deed between TIDA and the City for the grant of a utility easement to the City for the installation of SFPUC and San Francisco Department of Technology facilities within McCalla R oad and Hillcrest Road on Yerba Buena Island and the on and off -ramps of I -80; and (ii) the assignment of a Joint Use Agreement between TIDA and Caltrans to the City.
Current Hetch Hetchy Water and Power Projects
• Verizon Cell Site Modifications and Lease Renewals : The SFPUC issued an eight -year communications site lease to Verizon for Verizon’s use of the SFPUC’s power transmission tower at Early Intake (also known as Intake Ridge) in Tuolumne County.
The SFPUC and Verizon streamlined negotiations by using terms that were already negotiated by the parties in the Moccasin Surge Tank L ease between the parties .
Verizon and RES will continue to work on subleasing space on the SFPUC’s communication towers located on federal property at Poopenaut Pass and Burnout Ridge. Further review and concurrence by the federal agencies may be required. In addition, Verizon continues to work with HHWP and RES to replace and upgrade communications facilities at other locations on SFPUC Property.
• Consent Letters for Irrigation Line Crossings and Planting of Row Crops: In San Joaquin and Stanislaus Counties, the SFPUC Right of Way traverses through miles of land used primarily for agriculture. The deeds for these SFPUC parcels often reserve the right for the adjacent landowner to cross the SFPUC Right of Way with irrigation lines and/or to plant row crops on the Right of Way. These types of uses of the Right of Way are the more common types of projects reviewed by HHWP. RES drafts consent letters to approve these uses.
• Hetch Hetchy Railroad Underutilized Property/Potential Surplus Property Sale. The City, through the SFPUC , owns the former Hetch Hetchy Railroad right -of-way parcels in Tuolumne County. The City constructed the now -defunct railroad to support the construction of the O’Shaughnessy Dam many years ago. The existing 19 remnant parcels of the former Hetch Hetchy Railroad are either landlocked, non- contiguous, and/or licensed to the Groveland Community Services District to maintain a sewer main under the parcels. The Groveland Community Services District seeks to acquire the parcels from the SFPUC to ensure its continued use of the sewer main and other utility facilities. The Groveland Community Services District hired a surveyor to prepare an ALTA survey of the Hetch Hetchy Railroad parcels that it is interested in acquiring.
Previously, the State of California Housing and Community Development Department tentatively agreed with the SFPUC analysis that the former railroad parcels may be considered “exempt surplus” land and would not be subject to most provisions of the State Surplus Lands Act (HCD will make a formal determination when more transaction details are available).
27 • Stanislaus County (in coordination with Caltrans) North County Corridor Project : Phase 1 State Route 108 Expressway Project – Please see the earlier discussion in this report.
• Federal Highway Administration and Tuolumne County Evergreen Road Widening Project: HHWP and RES are working with the Federal Highway Administration and Tuolumne County on their project to widen Evergreen Road, a portion of which runs through SFPUC Property. Tuolumne County paid the General Plan Referral fee. RES sent a revised purchase and sale agreement for the sale of the easement to Tuolumne County in the fiscal year 2024- 2025. The easement would add additional protection provisions for additional City infrastructure, including a San Francisco Recreation and Parks Department utility line, located along the Evergreen Road alignment. As of FY 2025-26, Tuolumne County has not yet responded to the revised purchase and sale agreement and easement deed. RES will continue to work with the Federal Highway Administration and Tuolumne County to finalize the sale of the easement for the Evergreen Road widening, which needs SFPUC Commission and San Francisco Board of Supervisors approval.
• SFPUC Transmission Line Clearance Mitigation Project: HHWP is working with PG&E to move existing aerial power distribution line conductors that cross under the HHWP power transmission lines to new subterranean conduits with new power conductors for PG&E. This project will resolve electrical clearance issues between the HHWP power transmission lines and other utility distribution lines. RES coordinated with another City agency to establish a process for authorizing this work where PG&E is undergrounding the existing power conductors within PG&E’s franchise area in a dedicated public right - of-way (street) across the SFPUC’s Right of Way . PG&E redesigned one of its power distribution line alignments to avoid crossing the SFPUC’s property.
28 Exhibits
Exhibit A
REAL ESTATE AGREEMENT REVENUE IN FY 2025-2026
Enterprise Revenue
Wastewater $ 479,766
Hetch Hetchy Water and Power $ 95,532
Water $ 14,973,441
Total $ 15,548,739
29 Exhibit B
REAL ESTATE AGREEMENTS ISSUED IN FY 2025-2026
Account County Date Licensee Use Use Fee Freq.
P4680 Alameda 7/7/25 Pacific Gas and
Electric Company
Ingress/
Egress,
parking, and
construction
staging
$ 6,700 One-
Time
P4348a Santa
Clara
7/7/25 554 San Antonio
LLC
Ingress/
Egress, repair
of paved
parking area
$ 77,377 Annual
P4690 Santa
Clara
8/4/25 Redwood City,
City of
Temporary
fencing for
parking
$ 3,500 One-
Time
P4693 San
Mateo
8/5/25 San Bruno, City
of
Parking,
staging and
vegetation
management
$ 5,400 Annual
P4703 San
Mateo
8/21/25 Daly City, City of Ingress/Egress
, temporary
irrigation for
habitat
migration sites
$ 27,512 One-
Time
P4704 San
Mateo
8/25/25 Pacific Gas and
Electric Company
Parking,
staging, and
gas inline
repair
$ 33,708 Annual
P4041B San
Joaquin
8/27/25 A. Teichert &
Sons, Inc.
Maintain and
repair water
pipelines
$ 12,000 Annual
P4692 Santa
Clara
9/2/25 Bandwidth IG,
LLC
Fiber optic $ 8,496 Annual
P4686 Alameda 9/15/25 Pacific Gas and
Electric Company
Ingress/
Egress,
parking and
construction
staging
$ 2,400 Annual
P4706 San
Mateo
9/23/25 Pacific Gas and
Electric Company
Ingress/Egress
staging and
repair of two
access roads
$ 2,400 Annual
P4682 Santa
Clara
9/30/25 Central California
Conference of
Seventh-Day Adv
Parking and
landscape
$ 8,880 Annual
30 P4660a San
Francisco
10/3/25 Mannar
Investments
Vehicle
parking and
storage
$ 130,800 Annual
P4676 Alameda 10/21/25 State of California
Dept. of
Transportation
(Caltrans)
Ingress/
Egress,
parking, and
construction
staging
$ 5,289 One-
Time
P4603 San
Francisco
10/30/25 Renaissance
Entrepreneurship
Center
Workstation
rental
$ 5,562 Annual
P4711 San
Mateo
11/3/25 Pacific Gas and
Electric Company
Staging,
parking and
bell hole repair
$ 20,076 Annual
P4657 San
Mateo
11/3/25 Cypress Lawn
Cemetery
Association
Installation
and repair of
irrigation line
$ 34,560 Annual
P4709 San
Mateo
12/5/25 Pacific Gas and
Electric Company
Parking,
staging and
maintenance
of gas
transmission
pipeline
$ 16,848 Annual
P4720 San
Francisco
12/5/25 BHC Balboa
Builders
Fencing,
landscape and
pipe protection
No Fee N/A
P4716 Alameda 12/18/25 Trion Parc 88,
DST
Parking,
driveway, and
landscaping
$ 30,000 Annual
P4712 Santa
Clara
12/29/25 Stephens &
Stephens, LLC
Parking and
landscape
$ 27,000 Annual
L4722 Tuolumne 1/15/26 Cottage Tenant Cottage $ 3,780 Annual P1783A San
Mateo
1/29/26 South San
Francisco Unified
School District
Playground,
parking and
landscaping
$ 10,500 Annual
P4719 Santa
Clara
1/30/26 Headway
Technologies, Inc
Parking $ 90,000 Annual
L4721 San
Francisco
2/3/26 Five Keys
Schools and
Programs
Youth Center No Fee N/A
P4616 Stanislaus 3/10/26 Stanislaus
County
Ingress/Egress
parking and
vegetation
management
No Fee N/A
P4225A Santa
Clara
3/19/26 Palo Alto, City of Gas pipeline $ 960 Annual
31 P4718 Alameda 3/31/26 Pacific Gas and
Electric Company
Ingress/Egress
, vegetation
management
and pipeline
restoration
$ 9,792 Annual
P4509A San
Mateo
4/22/26 Mid-Peninsula
Education Center,
Inc.
Parking and
athletic field
$ 57,816 Annual
L4731 Tuolumne 4/30/26 Cottage Tenant Cottage $ 189 Mo. To Mo.
L4732/L4734 Tuolumne 4/30/26 Cottage Tenant Cottage $ 289 Mo. To Mo.
L4734 Tuolumne 5/1/26 Cottage Tenant Cottage $ 3,465 Annual L4731 Tuolumne 5/1/26 Cottage Tenant Cottage $ 2,265 Annual L4732 Tuolumne 5/12/26 Cottage Tenant Cottage $ 3,465 Annual P4363A Santa
Clara
5/19/26 GTE Mobilnet of
California Limited
Partnership
Ingress/Egress
, vehicle
crossing
$ 11,844 Annual
P4438 Santa
Clara
5/26/26 Sunnyvale, City
of
Bike path and
landscaping
No Fee N/A
L4591 Tuolumne 6/24/26 Rural Cellular
Corporation doing
business as
Verizon Wireless
Wireless
communicatio
n site
$ 8,580 Annual
P4736 Alameda 6/1/26 Yolla Enterprise
LLC
Vehicle
parking and
staging
$ 12,000 Annual
Note: Excludes encroachment permits, consent letters, and work authorizations.
32 Exhibit C
SFPUC PROPERTY TAXES PAID IN FY 2025-2026
County Fiscal Year 2025-2026 Property
Assessments and Taxes Paid
Alameda $1,808,209
San Francisco $30,742
San Mateo $844,538
Santa Clara $322,262
San Joaquin $5,002
Stanislaus $19,653
Tuolumne $604,165
Total $2,906,572
33 Exhibit D
LIST OF CURRENT AGREEMENTS WHERE THE SFPUC PAYS RENT
Landlord Address Sq. Ft. Type/Use Start
Date
End
Date
Annual Rent
1880 Jerrold
Ave LLC
1876 Oakdale
Avenue
25,937
Staging and
Storage -
Materials for
Disposal
10/1/2018 9/30/2029
$ 189,600
2725 Oakdale
LLC
2725 Oakdale
Avenue
46,442
Warehouse and
Parking
6/1/2019 5/31/2028 $ 1,007,831
Raul and
Denise Arriaza;
and Linda and
Carl Olson
1325A Evans
Avenue
3,287
Office 1/1/2019 12/31/2026 $ 121,882
Executive Park
Properties LLC
150 Executive
Park Blvd.,
Suite 1300
4,164
Office 2/1/2025 1/31/2030 $ 138,961
Bayview Plaza,
LLC
3801 Third
Street, Suite
600
10,740
Office 7/1/2024 6/30/2027 $ 410,186
City of Hayward
- Hayward
Executive
Airport
22488 Skywest
Drive (Hayward
Executive
Airport)
24,974
Ground Lease for
Pump Station
1/1/2005 12/31/2054 $ 4,408
Kristian A.
Akseth, Lilly B.
Akseth, and
Libkra
Investments
1980 Oakdale
Ave
36,400
Warehouse and
Parking
1/1/2023 12/31/2030 $ 1,108,208
Communication
& Control, Inc. -
Livermore Hills
Livermore Hills
Near Morgan
Territory Road
APN#: 006-
070-021
(37.822556, -
121.782861)
Two (2) 6-
foot dishes
and shelter
space (+)
Communications
Site - Antennas,
Microwave,
and/or Radio
12/1/2022 11/30/2027 $ 21,263
Communication
& Control, Inc. -
Mt. Allison
Mt. Allison
APN#: 096-
0090-005-07
(37 29' 56",-121
52' 16")
10 -foot,
6-foot, and
4-foot
microwave
dishes on
Tower 1.
Tower Top
Amp, two
17.5-foot
omni whip
antennas,
2 GPS
antennas,
and shelter
space (+)
Communications
Site - Antennas,
Microwave,
and/or Radio
5/1/2015 4/30/2030 $ 112,223
34 Vertical Bridge Corral Hollow
APN: 251-120-
080-000
32322 Corral
Hollow Road,
Tracy
(37.65252222, -
121.47806667)
345
Communications
Site - Antennas,
Microwave,
and/or Radio
1/1/2023 12/31/2027 $ 32,782
Lolita Lodhia,
Hersha Lodhia
Miller and
Sharmila
Lodhia, as Co-
Trustees of the
Lodhia Living
Trust dated
11/21/1994
1900 Oakdale
Avenue
46,000
Warehouse and
Parking
7/15/2024 6/30/2029 $ 706,722
McClellan
Realty LLC
4926 43rd
Street
934
Office 9/1/2025 8/31/2028 $ 17,304
Three BG
Investments,
LLC
19500 Nugget
Boulevard
15,800
Warehouse and
Parking
9/1/2024 8/31/2029 $ 174,295
Toland 1, LLC 470 Bayshore
Boulevard
12500 Warehouse,
Contractor's
Office, and
Parking
4/15/2026 4/30/2031 $ 550,000
Alameda
County
Sunol Ridge
(APN: 96A-120-
1-1)
37000
Palomares
Road
N/A Communications
Site - Antennas,
Microwave,
and/or Radio
4/1/2020 3/31/2029 $ 41,352
Alameda
County
Crane Ridge
(APN: 99A-
2540-7-1)
14300 Mines
Road
N/A Communications
Site - Antennas,
Microwave,
and/or Radio
4/1/2020 3/31/2029 $ 34,056
American
Towers LLC
300 Radio
Road
(San Bruno
Mountain)
9 Communications
Site - Antennas,
Microwave,
and/or Radio
8/1/2024 7/31/2029 $ 32,742
Joaquin Bear,
LLC
Cedar Ridge
(APN: 083-010-
075)
16601 White
Fang Drive
N/A Communications
Site - Antennas,
Microwave,
and/or Radio
10/1/2020 9/30/2028 $ 32,845
Crown Castle
(formerly TriStar
Investors LLC)
2201 Blue Gum
Avenue
(BU 819990,
Site Modesto 2,
App. No.
297144)
N/A Communications
Site - Antennas,
Microwave,
and/or Radio
11/1/2020 10/31/2025 $ 32,630
Port Pier 23
87,363
Shed, Storage,
and Parking
10/1/2023 11/30/2026 $ 2,065,451
35 Port Roundhouse
Two Building -
Seawall Lot
318
10 Lombard
Street
7,350
Office 10/1/2023 11/30/2026 $ 447,590
Port Shed at Pier 33
(between Bays
20-26)
3,440
Shed, Trailer, and
Parking
8/1/2020 7/31/2028 $ 76,368
Port Pier 19 Shed
13,920
Storage 10/15/2024 10/31/2027 $ 210,470
Total: 23 Annual
Rent
$ 7,569,168
36 Exhibit E
PG&E AGREEMENTS ISSUED IN FY 2025-2026
PG&E Project Title Agreement Date Agreement
Type
PG&E - R-297 -L303 - Sunol Valley Fish Passage
Interim License
7/7/2025 Revocable
License
PG&E Pad Mount and Transformer Enclosure
Replacement - Lake Merced Blvd., San Francisco
7/18/2025 Consent Letter
PG&E L-147 ILI Pigging and Analysis 8/25/2025 Revocable License
PG&E Conduit Installation at Poplar Ave., Millbrae 9/10/2025 Consent Letter PG&E Arroyo de la Laguna Bridge Gas line
Installation - Staging License
9/15/2025 Revocable
License
PG&E - Swiss Park 9/23/2025 Revocable
License
PG&E Electric Transmission Short Cycle
Maintenance Repairs - Batch 7
10/3/2025 Authorization
Letter
PG&E Boardwalk Maintenance at Newark-
Ravenswood 230kV Dumbarton
10/15/2026 Authorization
Letter
PG&E Line 132 Urgent Gas Transmission Pipeline
Repair
11/3/2025 Revocable
License
PG&E - L-109/L132 Mitigation 12/5/2026 Revocable
License
PG&E Gas Abandonment 1868 Ogden Dr,
Burlingame
2/3/2026 Consent Letter
PG&E SCADA & Electric/Communication Trench Line
Installation
2/19/2026 Authorization
Letter
PG&E Pole Replacement (PG&E Job No. 35619460)
- 1333 Lowrie Ave., South San Francisco, CA
3/3/2026 Consent Letter
PG&E Batch 1 – Short Cycle Maintenance Repairs 3/18/2026 Authorization Letter
37 PG&E Hydrotest of Gas Transmission Pipeline L-131 3/31/2026 Revocable License
PG&E Pole Replacement (PG&E Job No. 35268343)
- SFPUC Parcel No. 275, Moccasin, CA
4/23/2026 Consent Letter
PG&E Gas Transmission Line 132 (“L-132”) Annual
Inline Inspection (“ILI”) – Crystal Springs/San
Andreas Station
6/24/2026 Authorization
Letter
38 EXHIBIT F
BISECTED PARCEL PERMITS ISSUED FY 2025 - 2026
County Commencement
Date
Permittee Permit No. Permit Type
San Mateo 8/1/2025 Garrett Dowdy and
Eunice Jiang
EP155 New
San Mateo 9/1/2025 Matthew Perry
EP154 New
San Mateo 1/7/2026 James and Alyssa
Stucky
EP158 New
San Mateo 3/1/2026 Scott and Jessica
Savage
EP089B Renewal
San Mateo 3/1/2026 Tamara and Ofer
Maltiel
EP119B Renewal
San Mateo 3/1/2026 William and Ana
Moya
EP126B Renewal
San Mateo 3/1/2026 Sam Ng EP131A Renewal
San Mateo 3/1/2026 Joseph and Kristy
Johnson
EP133A Renewal
San Mateo 3/1/2026 Qingxi Fang EP136A Renewal
San Mateo 3/1/2026 Stephen and Jami
Nachtsheim
EP137A Renewal
San Mateo 3/1/2026 Margaret Miller EP138A Renewal
San Mateo 3/1/2026 Tristan Seroff EP141A Renewal
San Mateo 4/1/2026 Miriam Kelman EP036B Renewal
San Mateo 4/1/2026 Raymond and
Brooke Leon
EP041B Renewal
San Mateo 4/1/2026 Kenneth and Sarah
Babcock
EP077B Renewal
San Mateo 4/1/2026 Rebecca Suttmann EP079B Renewal
39 Note: All new and renewed Permits are now set up to be billed annually on November 1st, with an annual use fee starting at $200 and increasing by four percent (4%) annually thereafter.
San Mateo 4/1/2026 Sonya Babcock EP103B Renewal
San Mateo 4/1/2026 Nianlin Li EP159 New
San Mateo 4/1/2026 Carlos and Kanako
Valencia
EP160 New
Alameda 5/1/2026 David Qingwu Xu
and Jie Gao
EP007B Renewal
San Mateo 5/1/2026 Ramon Tamayo and
Imelda Betancourt
EP018B Renewal
San Mateo 5/1/2026 James J. Melcher EP056B Renewal
San Mateo 5/1/2026 Dean Paleologos EP116B Renewal
San Mateo 5/1/2026 Elif Albuz EP118B Renewal
San Mateo 5/1/2026 Sherwood and
Marcy Anderson
EP124B Renewal
San Mateo 6/1/2026 Donatella Rossignoli EP035B Renewal
San Mateo 6/1/2026 Michael Rangel EP054B Renewal
Alameda 7/1/2026 Daniel and Kathline
Foster
EP012B Renewal
San Mateo 7/1/2026 Luis B. Lopez EP071B Renewal
San Mateo 7/1/2026 Jason G. Slobodian EP123B Renewal
San Mateo 7/1/2026 Preeti and
Sudhanshu Tikekar
EP148A Renewal
Our mission
To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the
resources entrusted to our care.