2020 SFPUC Strategic Plan | Page 3

Foreword from General Manager I’m thrilled to share our 2020 SFPUC Strategic Plan. It has been a pleasure to work with our Executive Team and Strategic Planning Steering Committee to reaffirm and focus our overall strategic direction. While this high-level plan does not capture all of our work, it identifies key priorities to get us where we want to be in 2020. This plan serves as a roadmap for the SFPUC, to ensure that we meet the challenges ahead and continue to deliver reliable water, power and sewer services. This is an exciting time for the SFPUC. We are nearing completion of our Water System Improvement Program, providing crucial seismic reliability and redundancy for the Hetch Hetchy Regional Water System. We recently launched CleanPowerSF and will be expanding the program rapidly over the next few years. This will be pivotal for our City’s clean energy future. In addition, our Sewer System Improvement Program is moving forward with essential upgrades at our Southeast Treatment Plant. We are making systemwide investments in both grey and green infrastructure that will ensure our operations remain reliable. We also face many challenges. We have just come out of the driest four-year period in recorded history. Water consumption has dropped significantly in the last few years, due in part to our successful public campaigns to encourage conservation. We are proud that conservation has become a way of life for our customers. However, decreases in demand have serious implications for our revenues. The drought has also affected our power generation, which is tied to our hydrologic conditions. While water demand is projected to increase slightly with population growth, we must work more efficiently to address our infrastructure and operating needs with less revenue. Like many public utilities around the country, we are anticipating a large number of employee retirements in the next five years. We need to ensure that new and existing employees are adequately trained and supported and that knowledge transfer systems are in place to ensure continuity in our services. Despite the challenges, we see great opportunities ahead. We are unique in that our systems are interconnected. The 2020 SFPUC Strategic Plan will help us to embody a “one water” concept – one water, one system, one organization. We look forward to building on our strong reputation for providing high-quality, reliable service, continuing our commitment to authentic and transparent stakeholder engagement and investing in our current and future employees. This plan is a living document that will be reviewed and revised as we move into implementation in coordination with our employees, our stakeholders and our Executive Team. We have a lot of work ahead, but we have a strong course of action, with clear goals and objectives, that will guide SFPUC’s work for years to come. Harlan L. Kelly, Jr. General Manager San Francisco Public Utilities Commission 2