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Commission authorizes SFPUC to formalize utility services MOU with Treasure Island Development Authority
Summary
The commission authorized the general manager to execute a memorandum of understanding with the Treasure Island Development Authority. The MOU formalizes SFPUC's contractor role for gas, electric, water, stormwater and wastewater services on Treasure Island and clarifies cost recovery and indemnification; staff said island rates are set by TIDA and can be higher than city rates.
Deputy General Manager Michael Carlin presented a memorandum of understanding that would formalize the San Francisco Public Utilities Commission's contract role providing utility operation and maintenance services on Treasure Island.
Carlin said the city has operated utilities there essentially under handshake arrangements since a 1997 caretaker agreement with the U.S. Navy and that the MOU with the Treasure Island Development Authority (TIDA) clarifies reimbursement, ratesetting and liability so that SFPUC ratepayers are not exposed to Treasure Island capital and operating costs. "As a contractor, you're in no way responsible for putting out your ratepayers' dollars to spend on Treasure Island," Carlin said; the MOU sets a reimbursement framework so the PUC is made whole for services provided.
Commissioners asked practical questions: which customers will pay the bills (residents, commercial tenants, the U.S. Coast Guard and federal job centers), how rates compare to San Francisco and how liability is treated if facilities are contaminated or damaged. Staff said single-family rates on Treasure Island are set by TIDA and are roughly 15 percent higher than comparable San Francisco rates, reflecting scale and transportation costs; the MOU contains language addressing liability and indemnification and notes that the Navy retains ultimate responsibility for property it still owns.
The commission voted to authorize the general manager to execute the MOU; commissioners requested continued updates on implementation and billing arrangements as the development proceeds.
