PUC approves officer elections, code changes and ratepayer assurance policy; dozens of contracts on consent calendar

The San Francisco Public Utilities Commission on Oct. 23 elected Commissioner Torres as president and Commissioner Vince Courtney as vice president and approved a slate of administrative and policy measures, including changes to the local business enterprise (LBE) definition and a ratepayer assurance policy the commission amended to add an "operating cost containment" objective.

In officer votes during Item 6, the commission nominated and unanimously approved Commissioner Torres as president and then approved Vince Courtney as vice president. The chair transferred the gavel to President Torres after the vote.

The commission approved the consent calendar (Item 9AK), which included multiple contract awards and actions: award of Job Order Contracts (JOC 42 and JOC 43) each not to exceed $5,000,000; modifications and final acceptance payments for multiple water and wastewater construction contracts including increases of $186,613 (modification for WW455) and $344,118 (WD2634); execution of a revocable permit for SFPUC land at 1155 Junipero Serra Boulevard with a $500 per month fee; authorization for a joint funding agreement with the U.S. Geological Survey not to exceed $335,520 for one year; and extension of a memorandum of agreement with the City of San Bruno for project CUW301003 by 18 months (Item 9EK as read into the record). Public commenters asked for follow-up reports on some JPAs and historic deeds referenced in consent materials.

On Item 10, commissioners adopted revised SFPUC rules of order after public comment and a brief discussion of noticing and meeting-location language.

On Item 11 the commission voted to endorse proposed changes to San Francisco Administrative Code section 14B to widen the definition of PUC "regional projects" to include (1) projects cost-shared with other jurisdictions and (2) projects more than 70 miles outside San Francisco even if fully city-funded. Staff presented the proposal and multiple public speakers and union representatives addressed the commission. Supporters from the SFPUC Small Firm Advisory Committee and regional contractors said the change would expand contracting opportunities; union and community speakers urged stronger local-hire compliance and monitoring.

On Item 12 the commission approved amendments to Agreements CS 116b and CS 116d with URS Corporation to extend both environmental document agreements by four years with no change in contract value to support work on Sonol and Millbrae yard improvements.

Item 13, the Ratepayer Assurance Policy, moved through an extended presentation and discussion with input from the Citizens Advisory Committee, Rate Fairness Board and the Revenue Bond Oversight Committee. CFO Scott Reedstrom described a draft scorecard and transparency measures. Commissioner Moran moved, and the commission adopted, an amendment titled "operating cost containment" adding a policy objective that operating cost increases (exclusive of debt service and cash-funded capital investment) be limited to no more than the rate of inflation unless the commission adopts findings of necessity describing why increases above inflation are required. Commissioners and advisory members asked for quantitative metrics, report-card links to existing policies and a date stamp on adopted documents.

Separately, staff presented an informational workshop on the California Renewable Portfolio Standard (RPS) procurement plan (Item 14). Assistant GM for Power Barbara Hale described the approach: plan around a normal hydro year, monitor monthly and authorize the general manager limited authority to procure up to 5% of retail sales over the two-year budget cycle (presented in the packet as approximately 50,000 megawatt-hours or $500,000, with staff planning to use budgeted risk-management contingency funds as a cost-limitation safety valve). Staff said a formal resolution and procurement plan would return to the commission on Nov. 13. Commissioners and staff discussed bankable renewable energy credits (RECs), resource mix (hydro, biogas and solar), and past use of tax-equity financing for Sunset solar.

Before adjourning to closed session, the commission moved to assert the attorney-client privilege to consider several litigation matters listed on the closed-session agenda.

Votes recorded in the meeting packet and on the record matched the agenda actions: minutes approved, consent calendar adopted, rules of order adopted, endorsement of Administrative Code changes forwarded to the Board of Supervisors, CS116 contract extensions approved, the ratepayer assurance policy adopted as amended, and the closed-session privilege asserted. Public commenters pressed for clearer local-hire compliance, timely reporting back on projects such as Lake Merced, and better outreach and survey design for Clean Power SF pre-enrollment and non-English communities.

What's next: staff will return drafts and reports at the Nov. 13 meeting (regional water report addendum, Clean Power SF proposals, and the RPS procurement resolution). Several public requests (Lake Merced deliverables and JPA updates) were noted for follow-up.