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Committee recommends SFPUC quarry lease to Oliver Da Silva with expanded environmental protections
Summary
The Budget and Finance Committee recommended forwarding a proposed lease of a San Francisco Public Utilities quarry (SMP 30) to Oliver Da Silva Inc., citing new conservation agreements, required environmental review for permit expansions, and commitments to water storage and local mitigation. Environmental groups and Sunol residents supported the package.
The Budget and Finance Committee on Nov. 18 recommended that the Board of Supervisors consider a proposed lease of a 308.5-acre San Francisco Public Utilities Commission quarry site (SMP 30) to Oliver Da Silva Incorporated, accompanied by new mitigation and conservation commitments negotiated with local environmental groups and Sunol residents.
Mike Martin, a development project manager at the SFPUC, summarized four central objectives of the lease: require environmental review before any expansion of mining permits; secure direct environmental enhancements such as a cutoff wall to limit creek infiltration; create reclaimed water storage in the eventual quarry reservoir; and improve financial terms for ratepayers by instituting base rent and higher royalties. "The lease institutes a base rent structure ... it starts out at $500,000 and escalates from there," Martin said, adding the royalty at SMP 30 would rise "from 10.5% to 15%."
The lease would also delay industrial activity at a nearby privately held site (SMP 17) until mining at SMP 30 is completed or until the year 2030, and would replace a proposed truck haul road with a gravity-powered conveyor system to reduce truck traffic and its water-quality impacts. Martin said the changes are intended to "keep more water in the river" for fish and wildlife.
Budget analyst Harvey Rose told the committee the SFPUC—s procurement process recommended Oliver Da Silva as the highest-scoring proposer and projected first-year royalty payments to the PUC of about $3.3 million, roughly $2.9 million more than the current lease.
Several environmental organizations and local residents urged approval. Jeff Miller of the Alameda Creek Alliance said the conservation agreement with Oliver Da Silva "is unprecedented in terms of the mitigations and environmental enhancements that are gonna be brought to these two quarries." Peter Galvin of the Center for Biological Diversity described the accord as "the most comprehensive and proactive resolution that we have ever been able to come to with any party in our 20-plus years." Neil Davies of Save Our Sunol highlighted community benefits under negotiation, including funding for a Sunol foundation and fire-suppression upgrades for the town.
Opponents and other public commenters raised concerns about the SFPUC—s role in mining and whether the agency—s primary mission of water provision could be distracted by revenue-generating activities. Francisco de Costa, representing the Muwekma Ohlone, said he was concerned SFPUC had not consulted the Ohlone on the project.
The committee took the lease forward with recommendation to the full board after members praised months of negotiation and outreach between the SFPUC, the developer and local stakeholders. The motion was taken without objection. The Board of Supervisors will review the lease and related approvals, including any required CEQA environmental review, before final action.
