SFPUC adopts consent calendar, lease, rate and fee changes and approves litigation settlement

At its May 8 meeting the San Francisco Public Utilities Commission approved a range of consent and action items including contract authorizations, a long‑term lease, rate schedules and fee changes.

Consent calendar: The commission approved the consent calendar by a single voice vote with no items removed for separate discussion.

Lease: The commission authorized staff to seek Board of Supervisors and mayoral approval to execute a 60‑year lease with MP Shoreline Associates (and Shore Breeze Associates) for use of SFPUC right‑of‑way to support affordable housing and ancillary parking, at an initial annual rent read in the record as 100,847 with periodic five‑year rent increases.

Wholesale water rates (Item 11): Deputy CFO Charles Pearl presented a public hearing recommending no change to wholesale water rates for FY2019 (maintaining $4.10 per CCF) while proposing a one‑cent increase to the discount offered to customers that take raw or untreated water. Pearl said wholesale revenues from higher sales allowed the commission to hold rates steady.

Hetch Hetchy Power municipal general use rates (Item 12): Pearl proposed consolidating six general‑use municipal rates into a single rate and continuing a glide path of a half‑cent per kWh increase for two years to move municipal customers closer to cost of service. The change is expected to generate roughly $2,000,000 in additional revenue per year for the general fund allocation to the departments affected; staff said the Rate Fairness Board had supported the approach.

Fees (Items 13 & 14): The commission adopted a suite of fee changes across water, wastewater and power enterprises designed to improve cost recovery and address equity concerns. Key elements: increasing the backflow tag fee by $3 annually for four years to approach cost recovery; establishing a stormwater control plan review fee and pretreatment permit fees; eliminating a "new account" sign‑up charge; reducing the bounced‑check fee to $50 (the treasurer's fee); lowering the 48‑hour shutoff notice fee to $50 and eliminating separate shutoff and turn‑on fees to reduce disproportionate impacts on low‑income customers. Staff said more outreach and coordination with permit streamlining efforts will follow.

Closed session settlement (Item 17): The commission announced it approved a partial settlement in pending litigation after a closed session. The clerk had read the closed‑session item into the public record prior to recess; the transcript contains inconsistent audio rendering of the settlement amount read aloud (see clarifying details). The commission then voted not to disclose closed‑session discussions.

All items noted above were carried by voice vote during the meeting; in most cases the record does not include a roll‑call vote with individual commissioner names on the tally.