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Commission approves water supply assessments and $200 million credit facility for interim water financing
Summary
The commission approved five water supply assessments for planning‑level CEQA review, discussed coordination with the Planning Commission about carrying capacity, and authorized a replacement $200 million commercial‑paper liquidity letter of credit from Sumitomo Mitsui to support interim funding of the Water Enterprise capital program.
The San Francisco Public Utilities Commission approved a package of water supply assessments (WSAs) and separately authorized a $200 million bank credit facility to support interim financing for water capital projects.
Steve Ritchie, assistant general manager for water, told the commission that the WSAs are technical assessments provided to the Planning Department so it can complete CEQA analysis for proposed development projects; several assessments were revised in light of recent state board action. Ritchie emphasized the WSAs do not represent project approvals and that the Planning Commission retains CEQA and project decision authority.
Public commenters asked the SFPUC to coordinate formally with the Planning Commission on carrying capacity and cumulative impacts, and to show projected jobs along with water demand estimates. Peter Drechmeier (Tuolumne River Trust) requested staff direct a meeting between SFPUC and the Planning Commission so planners can better understand the water‑supply assumptions used in project reviews.
On financing, Debt Manager Richard Morales presented a competitive procurement result and recommended approval of a $200,000,000 letter of credit from Sumitomo Mitsui Banking Corporation (three‑year initial term, annual fee about $675,800) to support the Water Enterprise commercial paper program. Morales said the bank facility was selected via RFP and will provide lower fees than the expiring facility; the commission approved the agreement.
Commissioners discussed a related policy question: whether the commission should adopt a formal "floor" or usage threshold (for example, a gallons‑per‑person or percent reduction floor) that certifies projects meeting a defined low‑use threshold would not be subject to further mandated rationing. Staff said work on a formal policy and on an array of alternative water supplies (conservation, reclamation, transfers) will require an agendized follow‑up and detailed analysis.
Next steps: staff will provide requested detail for the Planning Commission upon request and will return with additional analysis on rationing policy and water supply options in a future meeting.
