Committee agrees to continue SFPUC audit request after public callers urge outside review

SAN FRANCISCO — The Government Audit and Oversight Committee on July 13 agreed to continue for one week a motion directing a prioritized audit of the San Francisco Public Utilities Commission’s water and wastewater enterprises, focusing on rate‑setting and contract oversight.

Sponsor Supervisor Safaie told the committee he wanted a one‑week continuance to coordinate with the Budget and Legislative Analyst (BLA) and SFPUC leadership and to see whether ongoing audits overlap with the proposed review. “I’m gonna ask for a 1 week continuance on this item,” Safaie said during his remarks.

The motion to continue to the July 20 GAO hearing passed unanimously, with Vice Chair Katherine Stephanie, Supervisor Connie Chan and Chair Dean Preston voting “Aye.” Safaie described the motion as intended to seek efficiencies and to ensure any analysis would reduce costs borne by ratepayers.

Public callers urged a broader, external review of SFPUC practices. David Hooper, a resident of Outer Mission/Mission Terrace, said sewer‑flooding problems that went unaddressed in prior years helped drive recent cost increases and that community engagement had been lacking. “We were told under the former leadership, that basically nothing could be done. It was an act of God,” Hooper said.

Eileen Bogan of the advocacy group SPEAK praised the audit request and alleged longstanding capital project cost overruns and problematic contracting at the SFPUC, noting: “In 2022, the PUC debt was $6,000,000,000.” She urged an external review to examine spending and contracting practices.

Peter Drechmeyer, policy director for the Tuolumne River Trust, supported a comprehensive audit and argued the SFPUC’s current 'design drought' standard is overly conservative. Drechmeyer said changing that standard could avoid unnecessary investments and potentially save “up to $300,000,000 per year” in avoided costs to ratepayers.

A caller identifying herself only as Molly with Sierra Club California asked the committee to recommend a full external audit, saying recent rate increases would have disproportionate impacts on low‑income and minority communities. Dave Warner, another caller, urged attention to financial risk and warned that falling water demand could push rates above current projections if fixed costs are spread over fewer sales.

Committee members said they supported further review but agreed Safaie should confer with the BLA and SFPUC to refine scope and avoid duplicative work. The committee will reconvene on July 20 for further consideration.