Skip to main content

tv   SF Public Utilities Commission  SFGTV  February 11, 2021 12:00am-5:11am PST

12:00 am
>> the utilities commission. madam secretary, will you take the roll please. >> president maxwell. >> here. >> vice president moran. >> here. >> commissioner harrington. >> here. >> commissioner. >> here. >> commissioner paulson will be arriving in 15 minutes. we are a quorum. >> i would like to welcome our new commissioner to our official meeting. welcome and thank you so much for your commitment. thank you. >> looking forward to working with you. >> thank you. next item, please. >> before i read the next item i would like to make a brief announcement. due to the covid-19 health machining and given the public
12:01 am
health recommendation issued by the san francisco department of public health and governor newsom and mayor breed lifted restrictions on teleconference. this is being televised by sfgovtv. if you are watching live stream there is a brief time lag. on behalf of the commission i would like to extend our thanks to sfgovtv for assistance during this meeting. if you wish to comment on an item dial 415-655-0001. meeting id1463590630. followed by pound pound. to speak press star 3. before i call the first item i would announce that item 15 is removed from today's agenda. for those watching if you want to speak on item 15 you may do
12:02 am
so during general comment for item 15. it is removed. you may provide public comment under general public comment. your first order of business is approval of minutes of january 26, 2021. >> commissioners, any discussion or corrections on the minutes of january 26? seeing none may i get a motion and second to approve? >> so moved. >> second. >> thank you. madam secretary public comment on this item, please. >> members of the public may make two minutes on item 3 comments of january 6, 2021, dial 415-655-0001. (146)359-0630 followed by pound pound. to speak press star 3.
12:03 am
there is one caller in the queue. >> good afternoon, commissioners, my apologies but i have a comment regarding the communication. can i discuss it at this moment or no? >> no, this is for item 3 approval of the minutes. general public comment if you wish to speak to an item not on the agenda for item 15 pulled you may do so during general public comment, the next item. >> thank you. >> thank you, caller. there are no more caller in the
12:04 am
queue. >> that closes public comment on item 3. >> roll call vote, please. >> president maxcle. >> aye. >> vice president moran. >> aye. >> commissioner harrington. >> aye. >> commissioner j a.m.i. e. >> i will abstain since i was not at the meeting. >> you are allowed to vote. >> yes. >> you have four ayes, madam president. >> next item, please. >> next item 4. general public comment. members of the public may address the commission for two minutes on matters within the jurisdiction and not on the agenda by dialing 415-655-0001. meeting id1463590630-pound pound. to speak press star 3.
12:05 am
>> there are seven callers. >> you have two minutes to speak. >> commissioners, i am francisco day costa. what i want to bring to your attention is this commission is unique that we have two general managers. neighbor it serves a purpose when we address audits. we have had a number of audits recently. i want to bring to your attention that the corruption
12:06 am
within the sfpuc has not ceased. you commissioners because of your experience two general managers and one member who has been a board member on the board of supervisors and a new member that i have welcomed her once but she has been in the private industry and in the private i does industry they give you a pink slip. it is blatant, defiant. doing what they want to. 20% of the worke forcer. you have a worke forcer of about
12:07 am
2000. if you continue doing what you do, it will be brought forth and burn you all. in other words, you are playing with fire. we need to admit that we have corruption. we need to admit they are good people representing the taxpayers and do the right thing. thank you very much. >> thank you for your comments. >> next caller. >> good afternoon, commissioners. i am calling on item 5 which is
12:08 am
the memo from the attorney's office. >> i am sorry to interrupt you. this is item 4 general public comment. item 5 is the next item. we will call for public comment when that item has been heard. >> thank you, caller. your call is open. you have two minutes to speak to item 4. >> coalition for san francisco neighborhoods speaking on my own behalf. for 10 long years advocates exposed the expansion of sfo to fill in two square miles of san francisco bay. i would like to thank commission president maxwell for being with us on this fight. we know from experience how difficult it is to oppose an enterprise department. at the january 13th meeting of
12:09 am
the board of supervisors budget and finance committee sfpuc staff said the first issuance of 221a series of bonds would include potable water pipes on 19th avenue and on slope from 19th to 25th avenue. this is despite the spite that the water is inferior to the existing dedicated system and inconsistent with prop 218. sadly, despite the advance at the p.u.c., the agency still is unwilling or unable to self-correct. the advocacy against the runway expansion has stood the test of time. two square miles of san francisco bay were preserved and the airport was able to flourish. i believe advocacy and
12:10 am
opposition to the water will stand the test of time. i would urge the p.u.c. to use the current situation to reassess the strategy of using drinking water to put out fires on the west side. the west side has waited decades expecting the dedicated system and should not be betrayed with bait and switch. new subject. the coastal commission has two p.u.c. items for this friday which is not on today's agenda. why is this? thank you. >> thank you, caller. your line is open. you have two minutes to speak on item 4. >> i am gave warner resident of palo alto. thank you for the workshop and thanks for the water supply
12:11 am
calculator workshop a few weeks ago. thank you. i sent my comments to last friday's meeting by e-mail. i am expressing importance of a risk analysis. i am going to mention a january 22 letter the sfpuc sent. table 3 shows in the third year consecutive dry year and footnotes 2023 that says the supply available would be 45% of 265mgd normally available. this is highly disturbing. if someone could infer two years from now the sfpuc could invoke 50% rationing and you heard the comments last friday. the 50% rations is wrong. demand is not close to that but alarming data. to me the problem is the sfpuc would consider reducing by 55%
12:12 am
in the year three of the drought without understanding the risk or probability profile of the design drought. if it is one in a 1,000 years taking into account climate change it is negligent to cut supply so much to protect against such a rare event. if the risk is higher there could be such a cut. you should be in a position to assess risk. the worst part to my knowledge there is no risk assessment. we have 100 years of data, 1,000 years from tree rings and climate change modeling you spent time on. my point is to please direct staff to perform risk analysis associated with design or flying blind without it. thank you so much. >> next caller. you have two minutes to speak on item 4.
12:13 am
>> hi, i am a member of the chapter water committee. regarding last week's workshop, no matter the conclusion and no firm conclusion is logical. we can agree there must be much less draw or more strategic draw on the water supplies. to that end we ask you to cocreate something like a roundtable to bring together wholesalers with sfpuc to address this. the drought trend expected by forecasters to be part of 100 year pattern. historic numbers might no longer be helpful. that is up for discussion. climate change will see more snow melt. some areas to addressing this are lack of implementation channels, lack of information channels. i urge you to join with the wholesale customers to create
12:14 am
the supply round table where success stories are exchanged, solutions discussed. funding, issues of water billing. the last meeting the hayward member replied with several ways the city is reducing fresh water dependence and two other members chimed in, too. one asking about his story. that was a beautiful thing. sfpuc staff members should be part of the discussion at the time and place just for that. please consider this proposal. we are overdue on this issue with the operatives at the table the current commission is the dream team for a robust response. thank you. >> thank you, caller. there is search callers remaining in the queue. next caller.
12:15 am
your line is open. >> hi, i am flow kelly. i am representing the coalition on homelessness. san francisco is displaced in one of the wealthiest cities in the world and not getting access to the lowest un international standards for water and sanitation. i am aware of the budget process is already happened. it is the committee that assesses the midyear budget assessments, i would like the committee to consider the expansion of public drinking water assets. although we are grateful for the creation of the permanent water access in the tenderloin, mission and bayview, they will not be sufficient to provide the minimal standards that are needed. there would need to be an additional 36 water assets in
12:16 am
the tenderloin alone in order to meet the minimal water sanitation and hygiene standards as set forth by the u.n. hrc which is the unitedmations human rights council that deals with refugees internationally. at the coalition on homelessness we did survey of ununhoused neighbors they are closed during covid. the library, churches, playgrounds, pools, today we are asking for additional three public water taps in the tenderloin which would bring the total to six which is very, very minimal for what people really
12:17 am
need in order to be safe during covid. thank you. >> next caller. you have two minutes to speak to item 4. >> i am carlos watkins, coalition on homelessness. i want to follow up on what flo said. in the budget that was approved you have made some commitment to inclusion and equality in the city of san francisco. i wanted to flag that. we have thousands unhoused in san francisco not getting adequate water for survival especially during covid not what they need to stay safe and sanitary and prepare to live through the pandemic. i understand the budget is approved this year. i wanted to really push the commission to make it a more
12:18 am
priority to increase water access. i mean more water assets in the tenderloin would be a step to be taken by public utilities to work to relieve for folks struggling. we did survey unhoused in the tenderloin and they are not getting the amount of water they need to survive to stay clean and to be presentable. water is so important for everything from life to dignity to survival. we really need action on this. we think the public commission is an ally in making san francisco more equitable with a lifeline to survive. thank you so much for your time. >> thank you for your comments. next caller. you have two minutes to speak to item 4.
12:19 am
>> hello, committee members. i am john steeple, san francisco resident. for the last four years working as community development monger among the unhoused in san francisco. i am also on the human rights with the coalition on homelessness. prior to that 12 years in international relief providing water sanitation and hygiene solutions. in the last four years san francisco is one of the wealthiest cities in the country following below the international water standards for hygiene. a survey showed over half of the residents in the tenderloin are not able to access the minimum standards of drinking water due to barriers facing them.
12:20 am
really encourage you guys in line with your inclusion in equality to look deeper at the issue of water access to unhoused community of 10,000. we want to at least meet the minimum standards. i ask as initial next step to add three additional water points in the tenderloin building on the momentum you are doing to address that. together we can overcome this falling below the standards. thank you so much. good-bye. >> thank you for your comments.
12:21 am
you have two comments. >> this is jennifer with the coalition on homelessness in san francisco. following up on the previous comments. it has been pointed out how much the pandemic through attention of water. i want to break down the practical situations for unhoused people what that means. people are trying to in many situations they have no other options forgetting off the street. there are thousands and thousands of people out there and not enough housing units. the shelters are closed. during regular times the shelter wait list is over 1,000 people waiting for shelter and many more trying to get into shelter. people when they don't have water, that means drinking water
12:22 am
for the critical. we hear they are not getting enough of that. that has huge health implications. it also has health implications when they don't have access to water to wash hands. water is just so critical for folks, and especially those living in the shadows of affluence in san francisco. i want be to thank you guys for working on this, putting resources into it, to the 15 permanent water sources city-wide. as stated before, we really are grateful for that. it is a huge, huge difference but it doesn't bring us to the gold line. that is not meeting the international standards laid out at least getting us a little closer than having a little bit
12:23 am
of the hardship removed from those struggling with no place to call home. thank you so much. >> are there any other callers? >> caller, your line is open. two minutes. >> thank you, commissioners. i am harry bernstein. i have a few questions related to the southeast commission facility. as you know, the mitigation
12:24 am
agreements from 1975 originally provided the bayview area with a -- built around 1987. there is an effort from the p.u.c. and the community to build a new southeast commission facility. with the mitigation agreement transfer from 1800 oakdale, the current facility, to evans when that comes into being. i need to know that and how could i find that information? second is i have been to the commission facility meetings, and i looked into their records.
12:25 am
it turns out they have some recordings from 2011 and 2012 but nothing more recent than that. they have spotty minutes and they don't seem to have recordings of their meetings. the p.u.c. knows how to do that. is there a plan to help? they have blue jeans which records programs but they don't seem to have them available. they have two or three committee meetings each month. what can be done to help the secf commission to get their meetings so they are recorded and those not able to attend will be able to access? there are important things that have gone on there, but they are occasionally there are minutes. very often there are not. it is sporadic.
12:26 am
>> there are two more caller inn the queue. >> your line is open. you have two minutes to speak on item 4. next caller. your line is open you have two minutes to speak to item 4. >> thank you. pronouns she and her. good to be back with you. again, reiterate clean power s.f. i would like to see clean power s.f. more to go beyond the selling of kilowatt-hours to being more engaged in helping people to i quote from an old
12:27 am
program. live better electrically. when i get done here i will turn on my electric stove to cook. i remember when i lived in san francisco for six months and i shared a place and from was a gas stove. i never turned it on. i bought a cheap toaster oven and hot plate. i was able to cook food and live better electrically. how can we have more resilience in the grid? it is the short towers apartments in new york city is energy independent to keep the lights on during city-wide blackouts. i am not saying san francisco is an island. with solar and storage we can have greater energy
12:28 am
independence. it should be a municipal district to control delivery rates. people should have inexpensive electricity. you are doing good work towards that end. there is much more to do to have a city that is powered by 100% renewable energy. it can be done. not today but it can be. thank you. [please stand by]
12:29 am
>> okay, madam secretary. next item,please . >> file follow up with staff on those two items. >> items five,communications .
12:30 am
>> do we needdiscussions on communications ? public comment onthis item . >> members of the public who wish totwo minutes of public comment on item 5, communications . meeting id 146359, jurisdiction 340 pounds pounds. press star threeto speak . do we have anycolors? >> there are three members of the public wishing to be recognized . yourline is open, you've got two minutes to item number five
12:31 am
. >>speaker: i hope you are doing well. i'm directing the member from the city attorney's office regarding cec contract. first of all this letter ignores all the comments in the letters that you have received from myself and other companies that are extremely concerned about this process. the letter also talked about the rotc base and notes the roc has other specific items stimulating the lb recuse will beconducted during the selection process. this is never mentioned in a memo . you might not agree with me but cmv is a criminalorganization . itis a part of the city corruption . jurisdictions are bought and sold on the market just like i'll give you one example, an
12:32 am
lbd working for 4 and a half million dollars, more than the maximum thresholdis 2 and a half million dollars . how could that have happened with a new company ? the memo also misses the fact that kathy how is adding more money into these contracts. this is effectively prevents any new set of contract competitions and would allow the same companies to be benefiting from it when they are not and lbe replacing d placing other lbe from the contract. i don't know what to tell you but they're actuallyviolating the civil rights and the civil rights act of the united states government . then francisco and the cmc is a recipient of federal money. this effectively will not allow you guys to get any more funding. so whoever told you there are no risks for the cdc, really
12:33 am
needs to examine the lawyers and their publications. >> thank you color, your time is expired. next collar, you have two minutes to speak to itemnumber five . >>speaker: i want to comment on 140, the cmb memo with requests for proposal. [inaudible] the selection process does not mean the proposal throughout the patient process. [inaudible] stage for the purpose of calculating this proposal. this is not what the contract documents state . each statement used does not mean the proposal must be followed inits entirety .
12:34 am
[inaudible] the interviews were held on september 18 and october 5. you filed a complaint on october 15, 2020 three at the lbe expired in august 31. there's no mathematical difference between withholding supplies versus showing up lines each state is not current. applying the discount! different statements does not allow a mathematical difference. as a result . [inaudible] our calculations and raising outcomes should not be executed since the argument is mute and are not contractual statements and the mathematical statement clearly shows that applyingthis to each phase does not change the outcome of the bid. our records show . [inaudible] i'm requesting is
12:35 am
in accordance with the recent bid and ideals my time.>> thank you foryour comments . next collar, you'vegot two minutes to speak item number five . >>speaker: can you hear me now? >> yes. >>speaker: good afternoon and welcome to the new commissione . i look forward to meeting you in person someday when we get there. in the meantime, onitem 5b, the contract advertisement report . i would like to see that report included the environmental review status of those contracts inthe future . it may take a little while to get there but i'm happy to follow up off-line with at the end on that and on item 5, the city attorney memo, i have no issue with the advice rendered
12:36 am
since the memo is now public, i would remove the header on pages two, three and four that suggests that it's still a privileged andconfidential memo .it's pretty public at this point and in fact, the city attorney may want to consider making it public memo that they post on their website under cityattorney opinions that's all i have on item 5 . >> thank you for your comments. secretary, there are no more colors in the queue. >> that closespublic comment on item 5. next item please . >> madam president your next item is item 6, update on the product to transfer san francisco public commission websiteinto a mobile friendly customer focused on . presented by teresa young and lawrence show.
12:37 am
>>. >>speaker: thankyou for welcoming myself teresa young and my colleague . i am part of the community department and we are very excited to hear about our website transformation project and again, this project has been in partnershipwith ips . i want to pause there and let us introduce ourselves. >> i have been partnering with lisa and other members of communicationsgroup in that we design our external website . >>speaker: please. i just want to showcase some of members of our team listed on the slide. there's so many other people
12:38 am
that have participated in collaborating with us and certainly helping us to be fought partners in our new website. i certainly do want to give a shout out to all into medications and it and the enterprises different programs, divisions andbureaus. who havetruly partnered with us on this website transformation project . next slide . just wanted to point out a couple of things that we will be going over today. we're talking about why we do, how we did the newwebsite. to really walk through the launch the rollout of the new website , it certainly provides a sneak to all on this website. is fully working but we're still not publicly launching just yet is why i say this needs to be to and certainly wantto open it up forquestions . next slide . i want to take usback in time .
12:39 am
about 10 years ago i'm not sure if you recall commissioner harrington, you were at the time rgm sp and we resigned our website to what you see today on sf water.org. over the last 10 years many of us have had adopted smart phones or just using phones differently, technology differently. methods are also very different compared to what it was when we first launched the current website on sfwater.org. people are using technology in so many different ways and we heard over the years there are some pain points withour current website such as it is not mobile friendly . i encourage you all if you take the time to after this meeting to try to access sfwater.org on
12:40 am
your mobile device whether it's smart phone, or account you will notice that there are some pain points youprobably have experienced , especially the pinching to enlarge the current website and just trying to navigate. certainly we heard a lot of pain points as pertains to the current website. it's just difficult to display on a mobile device. we also heard loud and clear from different stakeholders that the navigation is very difficult and some of the results that you plug into the search function will up a lot ofdifferent things . it's a very little intuitive search plus over a course of 10 years, there have been a lot of authors on the website so the consistency of the voice, the content, there's been redundancy . there's just different personalities on different pages as well and we heard a
12:41 am
lot of issues translation so all that to say many many reasons have applied why we're doing it and how we are hoping that our newwebsite that we will be showcasing in just as it will help resolve a lot of these painpoints . next slide . >> as teresa mentioned our website when you do visit the site currently on your mobile device you will realize a lot of pinching, a lot of us stretching, a lot of scrolling left and right which is not natural for mobile devices to one of the key things we focus on as part of the redesign effort was to make sure the underlying design was responsive and will allow us to support viewing the website consistent across all different types of devices whether you are on a standard desktop, on a tablet or on a mobile device. we anticipate like the rest of the world that visits to the website will drastically
12:42 am
increase on mobile devices in the future and we will become the de facto standard way in which consumers will view our website so we are ensuring that the redesigned website will support all devices across all types. >> throughout the course of thisproject we did not want to work in a vacuum . we wanted to be collaborative and hear from various partners , both internal as well as external. so different folks that we've engaged with again, not just our executive team but certainly a different working group, that's sfpc or even different ways they have been interacting with the public on various content pieces or certain calls to action that have been displayed on sfwater.org. we've engaged with the chp several times especially during
12:43 am
the kickoff and just really a vision for thisproject . taking in their feedback and asking them what is missing? what are the things you as a user, a website visitor would value as well? to page in fact in normal times we engaged in person with the city's digital services team. that really hasn't had a great working group, fully representing across the city, working on various website transformation projects. we mayhave had different , then on different phases of our project whether it was soliciting or maybe in the middle of an implementation or even after it's gone live, how have they been incorporating the feedback from the public. so we've got a lot of feedback from them, a lot of lessons learned from that group and then also just continuing those conversations as we want to learn, we want to be responsive
12:44 am
and certainly knowing that a lot of our audiences overlaps. it was important for us to really learn from others as well as thinking through how w would realistically implement a lot of that feedback into our project . next slide. which is how we came up with these goals. at the start of the project these were some of our guiding principles . and still are. for us to continue to march towards i would say it's really important toemphasize that once we launch the website , it's notthat we view it as a gun product . there are roads and thoughts to continue to enhance the product cause technology as we know continues to change so we want to be responsive to our community. these are just goals that we will continue to marchforward with even after we go live . next slide. we, this project is very user
12:45 am
focusedso as i mentioned before , with all the different folks that we engage with over the project, we always went back to okay, let's take ourselves out of the hat, staff person, let's ourselves in the shoes of a websiteuser, having a more empathetic approach when it comes to different audiences that may need to do certain things on our website . these are just five examples of five audiences that actually come to the site a lot to do certain thingsand we were really again putting ourselves in their shoes , empathizing with them what arethe things you are looking for to do or to learn about or to even find information , whether it is signing up to do something, attending ameeting, looking for a contract tbid on . reading more about a certain program , getting informed . really we were drawing upon i
12:46 am
guess a lot of empathy. and again taking ourselves out our staff minds and really looking at it from a user focused approach next line . laura, when you take this one? >> one of the things you'll see in the title of the slide is we are transitioning our new website domain from sfwater.org to sfpc.org. i'll provide details as to how the transition will take place i will go over to marie about why we are going with sfpc.org. >> sfwater.org has been around for a long time and as our organization has continued to grow in a lot of our program areas representing the different enterprises, it was important for us to move into a url that is representative of the rest of theagency . certainly not to say that water is not important.
12:47 am
it is certainly important as well as the various enterprises and services that we provide so sfpc.org is something that we were moving into but certainly we are still holdingonto sfwater.org as well as the other urls that we havealready purchased .and we will continue to maintain . so for sfpc.org, and sfwater.org sfwater.org, the sites are going to be living in tandem because we understand there's going to be a period of time that we need to do a lotof change management , informing the public that things are shifting over to the new site and certainly we want to make sure that people have the time to really learn about the new website and the new navigation. next slide. actually, i'll pause there. lee and brad, if you can queue up the homepage as well.
12:48 am
perfect. thank you so much. lee and brad, i'm going to slowly cue you to walk through and scroll down. this is the new homepage right now working website is not launched publicly .it's still in the faces where we are finishing up the bugs and testing and makingsure that we clean up all the content . i wanted to show you all the homepage will look like . as lawrence mentioned it is certainly built on a new advancement system that is mobile responsive to what you see here in this display is very much for the desktop but there are, there is a website that mobile finally will already size of the site to any mobile device and i'll have
12:49 am
moreon that in a moment. if you can scroll down just a little bit . you will see that there are someicons here . we brought up and elevated a lot of the top pages that we know people are accessing. this is just based on metrics that we tracked over time as well. very call to action oriented as you can see here area if you can scroll down just a bit. the new homepage also allows us to get again toelevate a lot of quick links . this is what we've done so far. and howcan we help these individuals ? for customers we have quick links, contractors and individuals we have quick links allover the homepage easy access . our goal is to not have the user embark on a labyrinth of content to get what they need which is why we have a lot of quicklinks on thehomepage .
12:50 am
if you can click over to developers and contractors . you can see just the folks there and see how under how can we help, there we go. we can follow between the two different groups and you can see different links as well. scroll down just a little bit further. the homepage, allows us to highlight certain programs . the team can actually editorialize a lotof the different programs . it gives us a chanceto highlight cool things the agency is doing . one of the key things that we will be doing a lot more is to update our homepage more frequently. it gives people a reason to come back. it feels scroll down a little bit so we can showcasethe video carousel . thank you.
12:51 am
and if you can click on to the little arrow right many the first video. i want to showcase how that experience is going to feel like so that the carousel actually scrolls sideways. you can take a look at more videos and again, the purpose of this is to do more storytelling. really highlight programs and some really neat things that we have captured on video. i wanted to show that experience really there's a lot of scrolling left and right within itself, not moving outside of what you can see on your page . thank you. if you canscroll all the way down . we have our news releases and our upcoming events. right now on our current website you almost have to dig into the website to find these
12:52 am
things so our purpose is to elevate a lot of the content, especially for some really good newsthat we want to share from press releases . we will be highlighting front and center as well as over to the right we have upcoming events. you want to highlight things that are coming up right away but certainly for foldsthat want to take a look at more they can click either on these columns . and then lastly, a really great feature that i think is standard across a lot of websites nowadays is if you click on that board arrow, that's kind of orange yellow. perfect. when you click on that it brings you directly to the top of the page again less scrolling with your finger or your mouse . there are ways, there are tricks,shortcuts you can navigate the site .you can take a look at things very differently but again, i think what we're trying to do is to make it as simple as possible.
12:53 am
to make links in different places where it's easy for people to access. some things will maintain on, on the floater as well as at the top written. multiple ways for people to find things. our search function is much better where you click onthe magnifying glass please . to the right ofabout us . once you start typing a lot of you type in, start typing in water. notice that actually is is more intuitive search features where it will hold a lot of differen pages that have the word water in . again, our current website does
12:54 am
not do that. so for the new site we certainly have more features, easier ways to navigate and an easier way to find things. i'm going to pause here and let lauren chime in as well quit i'll comment with regards to the mobile aspect andexperience all the content you saw there , quite a bit different types of widgets from the carousel to thecalendars . to the videos, all those layouts and widgets are represented on a mobile device consistently without the user having to pinch or resize the images, the text automatically resizes to a visible format on whatever device they are working on. whether it'stablets, whether it's smartphone. so we don't have to maintain a separate sort of mobile site . it is a single responsive design that will adjust depending on whether you're
12:55 am
looking at so regardless of the variety of content we have on our site it will render consistently across all devices because of the responsive framework that we have in place . so it makes reviewing consistent across the board without us having to maintain multiple iterations of our site. >> brad, if you cancall back to the presentation . and then you can go to the next slide so there's still a lot of work to be done . we're still in to launch the site at the end of this month and we are really approaching it as we are not showing off the light at sfwater.org. both sides will be running in tandem but after a training time we will stop updating and documentation around placing people to sfpc.org, have new updated information and contact their after a time, do a lot more change management and medication to the public to let
12:56 am
them know that sfwater.org will direct everything over to sfpc.org so there's a lot of work that isn't captured on this timeline but these are some immediate thingswe're going to see you doing . doing some initial external communications tovarious audiences .doing a lot of work with our audiences and employees. certainly we want to make sure that the information that we want with is correct so that's why we haven't made the site public yet and why we're still doing a lot of cleanup like i mentioned andworking through a lot of bugs . and also we're doing a lot of training . we certainly want to make sure that the folks that need to update the site know how to do it and we will continue to do these training sessions even after the launch. again, our plan is not to be one and done. it still launched with a workable product that at the
12:57 am
same time continue to enhance the product and be responsive to what we are hearing backfrom various audiences the feedback that howdo we make the website better ? lawrence, anything you want to add ? >> i think you got all points. >> next slide please. as imentioned a lot ofwork we are doing with employees right now . we have announcements coming our way . maybe i wouldn't call them lunch andlearns because everybody , i certainly don't want to take up somebody's lunch hour we will be doing some informal sneak the sessions and certainly do a little show and tell. and really take on questions because it's important for us to engage our employees again, for them to also feel confident as they engage with members of the public or evencustomers , knowing where to point people to you that'ssomething that's important to us as part of this rollout . next slide . we have a lot of planned
12:58 am
communications with our customers but certainly also with the general public. these are justsome of the ideas that we are going to be working towards . certainly not to say that captures everything so there's definitely a lot more that we are planning in terms of a newsletter that will be included on the bills . certainly a lot of change management on our current website people to the new sfpc.org. really promoting on socialmedia digital communications . telling people in various channels that this is the new site, please come to visit and be moved,etc. . next slide. >> as teresa mentioned numerous times as we transitioned over from sfwater.org to sfpc.org,
12:59 am
we will still keep peoples site up and running. we will likely update the banner to let individuals know that we have a newhome and to please visit the new home at sfpc.org. we will likely ask for people to operate a bookmarks they have with the new sites location . we will likely also put in the timeframe in which we will stop allowing folks to access the old sfwater.org website and automaticallyredirect them to the sfpc.org site .so generally that will probably take months out but we will still continue to monitor traffic on the old site and if we see a significant number of users still visiting sfwater.org we will collaborate with communications and conduct additional outreach to make sure that peopleare aware of our new sfpc.org website . on a separate but related project is with regards to emails. since we're changing our website domain to sfpc.org, we
1:00 am
are also looking at changing our email addresses to sfpc.org as well. with thattransition , we will also look at changing the nomenclature to something that's a little more contemporary where instead of just the first letter of your first name and last name we are looking at full first name, period, full last name as part ofyour email address . we also working with hr and working at changing the nomenclature and including sort of the mayors corrected on gender inclusivity where perhaps leveraging an individual's chosen name versus theirlegal name as part of the email address . we're still working through some of those details with hrs once we get some of those details plan that we will have a better time frame but our goal is to look to transition emails fairly shortly after we go live with the sfpc.org
1:01 am
website. >> next slide. as i mentioned, there's still so much work to be done and one thing i want to call attention to is that with our newwebsite we certainly want to make culturally responsive . so our current website has google translate on sfwater.org. we know as we heard back from a lot ofpeople we know that's not good enough . in partnership with ips, we procured a different translation tool that also allows for us to insert human translation so that's definitely something that is very important to us as we are able to and as we really just look for ways to enhance the content, it's also equally very important for us to be responsive in translation and
1:02 am
then also looking for ways to enhance how we can be more culturallyresponsive to our different communities . that may need toaccess a website for various reasons . so once we launch there's so much more work to be done. that's what he continued enhancement roadmap. also we procured thing is part of how we make decisions around enhancement which is a website optimization tool that will give us a lot of information about visitor behavior and what really draws them to certain pages or content. again allows us to have the data to make decisions on how to enhance our website going forward and then build out a roadmap that is again responsive to our community. our official launch will be an of the month . it's not one and done.
1:03 am
i would certainly hope to come back in the near future to you all and report back after we had time with the new website on how is performing and things we would like to include on our nextenhancement . that is all for our presentation and thank you so much for your time i appreciate yourattention at initiative in this . >> chair, presidentmaxwell, i have a couple comments if i may . one, teresa and lawrence, i'm incredibly impressed with what you've put together with us . i just as an example in a previous job i actually gave that assignment to again a much smaller staff to put something together i got bored because they were everything that i wanted to have with the insurance medications and
1:04 am
information andinteractive stuff and whatever else , there was no real plan to make sure it was simple and it was going to be accessible. it was going to be this great labyrinth like you were reading war and peace or something, the novel and it took everybody so long. so i'm really impressed with the amount of pills that you put into thinking about what this is going to look like. and i hope that is going to be what it is. anybody who has any desire to get on this website is going to find fast. they're not going to have to look too hard to get whatever they want. i don't care if it's like what about my bill, what is my water off, what are the commissioners doing ? whatever is going on is just pain. with the good things that you
1:05 am
put out it's clear that you're doing that stuff but again, just as commissioner you have to roll all this stuff out for transparency and we're doing this publicly right now.i kind of understood everything you saidabout halfway through it and then it went on and on . he keeps going and i hope that this does translate into all of the websites, the transitions from one to the other and whatever else that works on so i'm incredibly impressed and i hope it stays that simple. because we are a community of complainers . we've been on a, we don't find what we want and then we complain about . so that is, and i think you adjusted everything. you said we want to be simple and you have these beautiful, i'm going to lose my power digging in the sand? it is a friendly way of you
1:06 am
putting together so anyway, i am impressed and i hope it stays simple and i it stays in a way that people are going to say when i click on the link i'm going to get what i want and not have to search too much i didn't get theanswer or whatever else . again, i'm impressed and hope it works the way you've rolled it out. >> colleagues, any further comments western. >> i had a comment, thank you. nice job. i have a few comments and question actually for you. did you ever scrape the information in your search to see what people are looking for whenthey came to the website ? obviously there are people who come and have very specific needs.
1:07 am
it's much more straightforward but i want to find a specific answer and i search for it and i can't find, it's always somewhere in your system but i'm not sure you're able to take that data out to see what people have tried to look for and have not been as successful tofind . since there is a lot of interest in making sure you are serving everybody and every member ofthe public , i think that's veryimportant . the second thing is obviously this is a great effort and my previous jobs every job i've had they tried to launch a new website at different times and this is definitely a never ending effort. so i was wondering as you were going through this process, have you been trying to look to see where and how the websites
1:08 am
are ableto link ? maybe by the time you launch this and three years from now it will be outdated and particularly if you can get the next generation at this point rather than the previous one. and i guess that was about it. i was also one other question i have andi don't know , i assume based on what you showed you guys try to figure out who visits your website often but there's this search maps that people use to see how often people click on what and where theygo and what they do . and i have information that you had on your visitors site was to use what came out of that but i was wondering if that's the case and how to use that information? thank you, and great job
1:09 am
obviously . >> you want to follow up with some of the answers toyour questions . on our current website we have pages that people are frequently visiting so that drives some of the key lessons that you see on our initial websiteabout the search or reporting a problem . that has influenced our design. however one of the things we are lacking is sort of as teresa was mentioning is the search optimization. if somebody visits our site donated one page or do they go to areas of the site to see if they can follow that journey to help us better understand how to refine our website so the information that is frequently being listed is several layers deep and continues to search and we see that pattern of failure so part of it is going to be critical to providing us
1:10 am
an additional depth of information to our existing site so hopefully that answers your questions with regards to better understanding the behavior of our users and being able to adjust our website accordingly to get the information that they frequently get or we can get you. >> so that is coming after you launch the website ? >> it's going to be part of our website as we launch. >> at this point you're not able to scrape information out of previous website see how often you lost people because they were not able to find what they were looking for ? >> you have to understand statistics like. >> .what about the next generation? was that something you guys consider? >> i can take this one.
1:11 am
i think with web optimization certainly going to get a better picture of the difference visitors that come to our website area and also the journey andalso insights in terms of who are these individuals and what they cannot . we're excited to embark on that right after we launch the site and get some numbers and data to help support that. in terms of the different audiences, demographics, generations of people , we certainly have done a lot of research on what are some different websites that have more transactional call to action. we look at some really, some of them are our favoritewebsites that draws in . and then also look at okay, who are we advocating, what is the offer instead of making sure that ever we develop as realities around as well . i mean, i was just for us to
1:12 am
have a website in the future where really classy website that really is visionary for a utility agency and i think we're going to inch our way towards their course you want to make decisions about the different ways that we level our website based on metrics and data. certainly i think we are very excited to start network, this next phase of the website project and i think that would the different audiences, different age groups and demographics like we mentioned . hopefully our future ratepayers as well so again, i fully emphasize once we launch is not one and done,it's more work to come . >> thank you all. is there any further comments? i want to say thank you so much for your great workand we look forward to seeing more. thank you .
1:13 am
>> madam secretary. >> members of the public who wish totwo minutes of public comments on item 6 , 415-655-0001, meeting id 146-359-0630 poundpath . raise your hand to see pressáthree and update to the sfpc.org website. mister moderator,do we have any colors in the queue ? >> 2colors waiting to be recognized. go ahead caller,you have two minutes to speak on item number six . >>. >>speaker: this is very important and long overdue because i find that when i
1:14 am
first started reading the agendas i have to click through several pages of menus to do so so this is definitely welcome and i have several expensive mobile devices which i use because i like to be portable and so a large desktopcomputers and laptops don't work for me . so obviously i think they have to have a more mobile centric function about this. certainly the website should tie into more effective attainment to our customers. more and morepeople are getting smart phones and tablets . free cellular service so technology is becoming more available. we have to be responsive to that. hopefully we can create a app
1:15 am
that will come out of this and people can pay for their bills with a few keystrokes . thank you for the gender equit provisions that were mentioned i'm looking forward to it . thank you.>> thank you for your comments. next caller, you've got 2 minutes toitem number six . >>speaker: can you hear me now? david phil paul again. please post today's presentation on this item online. i would like to read carefully to appreciate the challenges that staff walked through. i hope that website updates and changes will remove existing content but only add and enhance. i'm happy to help and discuss with the appropriate staff. for example the construction
1:16 am
project list on page one, 275 on the website does not list all active projects in the city and does not look like it's been maintained or being maintained well remember, not everyone has digital access , good internet service or uses email i for one don't use email. we should try to meet people where they're at and i think this website overhaul to better address mobile devices is a great example of that. the city committee on information technology continues to discuss centralizing and standardizing city websites. it has its pros and cons. i don't think that takes into account the particularities of the various departments like ez. i doubt that the city's digital services team help on this redesign. i think that should be significantly downsized and decentralized to the departments and if you need help they should help you and not get in the way and wanted to be done there way andfinally
1:17 am
i think alida! before me about clicking through items is well taken . sharepoint may be useful for staff but i think it's very clunky for public downloads for this meeting attachmentsfor example so perhaps that will change in the future . anyway, good work. i hope to see morein the future . thanks. >> comments? madam secretary there are no more colors in the queue. >> publiccomment on item 6 is closed . >> madam president, you are muted. >> next item please. >> the next order of business is item 7: report of the general manager. mister karlin. >> michael carlin, acting general and i'm going to give you to katie millerto give you
1:18 am
an update on the program . >> thank you michael. good afternoon madampresident and commissioner . i'm katie miller, director of water capital programs here to present an update on the status project in water enterprise capital improvement program. as of the end of second quarter in december 2020 and i'd like to get a special warmwelcome to commissioner ajami, we're happy to have your expertise okay. let's get started . next slide. this slide shows the overall program status of the 36 regional and local projects representing $2.2 billion . at the end of the quarter, i'm sorry. ithought we were starting off in water enterprise . this is the water, i'm sorry,
1:19 am
can you go back one slide? this is our water system improvement program. and this is at the end of the second quarter.i apologize. you can go aheadand share the water system improvement program. that's okay brad . [inaudible] >> we will be hearing item 71st. water system improvement program, report first. thank you. >> this is our water systems improvement program and the half pleaded the local part of the water system improvement program so i will be reporting only on the regional programs. and as of december 2020, this slide shows the status of the over 52 projects inthe regional system representing $3.8
1:20 am
million . our program is 99 percent complete with only 124 million remaining to be spent. atthis time there is only one project , six are in construction andone is in close out . the other 42 projects have been completed . next slide. this table shows the summary of our project costs forecast compared to the approved budge . as you can see most of the projects are pretty on budget. with the exception of the san francisco regional region and that is fromour regional groundwater storage and recovery . this project is on cost and exceed the approved budget and this is primarily due to the much longer than expected construction contract and several changes in scope that have occurred for that project as it's gone along. next slide. this slide shows a schedule summary and it summarizes the number of projects that are
1:21 am
forecasted to exceed the current approved schedule. over the projects that are still underway you can see only one project exceeds is approved schedule by six months and again, the regionalgroundwater storageand recovery project . next slide . and now i will share with you some highlights from the projects that are underway. the alameda creek recapture project, we are very proud to share that divine documents are complete and the contract was advertised for construction in december. we did in january and the needs are being evaluated at this time we're lookingforward to getting this project in construction . next slide. the regional groundwater storage and recovery project is the project i was sharing that
1:22 am
has extended schedule and budget at this time. the phase i construction contract is 98percent complete . but there have been significant numbers of change orders in order to try and get these 14 well sites up and operational. just in q 2 there was $1 million in change orders this includes changing out the metering cost of site and carrier costs, calibrating flowmeters and performing repairs to three of the wells where there was significant corrosion issues down in the well shaft. so there's still some work to be done but we're hoping to wrap that phase i construction project in q2. so the phase 2 project, this is to complete the i'm sorry, go back one.complete the well construction at the south entrance is domain well. it's one well that was staggered behind because of the easements and issues and that, they're finishing the design on
1:23 am
it for the pipeline work . we're going to add protection improvements at all remaining well sites because of the corrosion issues that we saw at the three wells. this work is ongoing. we still expect it to be completed by the end of our currently approved date which is may 2023. there continue to be challenges withthe well site . next slide. the calendars dam replacement project as you are aware reached significant substantial completion in 2019.but with such a large project there were quite a few punchlist items and remaining things to be closed out. were also still trying to perform inspections in the reservoir feels completely and we had a pretty dry winter last year. hoping for somegood storms so
1:24 am
we can get that up to highlight and finish the inspections . next slide. the second contract that is part of the dam replacement project is fish passage facility at alameda creek conversion dan and as the name implies allows this to continue to migrate up alameda creek while we are able to diver water to the reservoir this budget also is 90 percent complete . we also need to do testing you can see in the top photo there's a bar screen and to really test that weneed very high flows in the greek . we hope we get a wet winter here ahead we can do some testing but in the meantime there are some challenges communication and the solar facilities medication . equipment that islocated in the dam site. and also we need , we learned we need protection equipment on
1:25 am
this so that people can get in and work on the facility. we are currently evaluating whether we do that under the existing contract or whether we close the contract out in this quarter and do this under a different contract in one of ourcloseout contracts . next slide. so now we have four closeout projectsthat are regional by nature and this was because it was a large program . there are just a lot of little follow up things to take care of. but these are progressing along and most of them will closeout in either this quarter by march or by the summer. in the san joaquin region we have solar panel facilities, a lot of equipment and several of the valve vault along the.
1:26 am
we are getting the battery back so we don't, all that work is coming to a close and we will get itdone this spring. next slide . there were several subprojects that mostly have been finished. we are selling polymer feed facilities for the water treatment plant. this project will fund the design and in our water capital improvement program project to install facilities. and the backup pipeline carrier water has some follow-up issues for monitoring. one of those is to put more water monitoring equipment in theirving tunnels and that's all getting completed and wrapped up .
1:27 am
next slide. the beta vision, we installed some drainage facilities around some of our valves. these all been installed and are completed. we would be finished but one fencepost that was in the districtwide way needed to be relocated and so that work is happening then we're going to build as well. really nice to see all coming to. next slide. and finally in the peninsula region, we completed the work on the replacement, a lower springs dan, that was a joint project with san joaquin county and all that's left is we have, we pledge to provide security system improvements for that and so we're working on design
1:28 am
for that and hope to have that installed in the next six months and distilling basin connectingchannel , i believe that the last commission meeting you all approved. that is done. next slide. and just a final kind of a fun slide. last quarter, a celebration of completion of the local cip which was a final project with the pump station was completed in june2020 . we had a little bit of acknowledgment into events, in october 20, 2010 was a press event at the lake merced qualification and we made a short video of that as well as we got coverage from the local media. then in december 2020resume event for employees . commissioner paulson was generous enough to join us and
1:29 am
was a lot of fun. we showed slides before and after, his slides of some of the facilities in san francisco and alan johansson and howard and kathy have joined and gave commentary on how some of the projects went and some of the successes it was a really nice event and i think that really appreciated urine from management and receiving some of that acknowledgment . that concludes my presentation on the water system improvement program and i'd be happy to answer any
1:30 am
1:31 am
>> -- that offset the corrosive qualities of the water and therefore keep -- prevent your -- the metal in the wells from corroding further. so we are now installing that cathodic protection. in addition to preparing those wells, which was very expensive, we are installing cathodic protection at those three sites, and we will add cathodic protection at the remaining 11 sites just in case. we don't think there is corrosion at these wells, but we think it would be a good idea. >> so do we know where it's coming from, the corrosion?
1:32 am
is it chemicals? is it the soil? where is it coming from? >> i don't presume to know or i don't want to go into too much detail, but there's been some nutrients in the water that are not harmful, but they provide opportunity for microbes. we did have experts come in, and they are providing information for us. i don't think -- i think this is a very normal-type thing that we just didn't anticipate and now we're responding to.
1:33 am
>> so how long -- is there a life cycle for these solutions? will it go on forever? will we have to replace? will we have to redo? what is that? >> i will get back to you with more details because i don't want to say something erroneous, but they do have a life cycle. it's probably ten years or something like that, but i can get back to you with more details. >> i'm wondering, if we're going to add to that with our maintenance and details, is that something we're going to add to our budget so we don't go oh, my goodness. >> i appreciate that comment. that is something that is really important to consideration, the cost and the security to maintain. >> and then, the next that you mentioned was the security at
1:34 am
crystal springs. what are we trying to secure? >> you know, i know it's for the bridge, and i think it's in conjunction with san mateo county, just to monitor for intruders or, you know, just to have some monitoring. >> so electronic surveillance of some kind? >> yeah. it's, like, cameras and video. here's steve. do you know more about that? >> yeah. it's additional fencing in some areas and additional -- and two security cameras. >> okay. fencing and security cameras? >> yes. >> all right. thank you. >> relatively simple. >> colleagues, any other questions or comments? >> just a quick comment. this is commissioner paulsen. i'm just very pleased, as i've been on this commission, to know that the talent of being able to monitor a major infrastructure, you know, can
1:35 am
deal with the type of questions that we've had, and it's, like, you know, like, any construction site, there's always going to be, no matter how well everything is built, which, of course, in the bay area, is usually so incredibly well bit, there's also a monitoring process and punch lists and what-have-you are based on forces that nobody can ever anticipate. and the sfpuc is enriched with the talent to -- and that the sfpuc is enriched with that talent to take care of this is just -- it's questions about what the government is supposed to be about, so i'm proud to be a part of this in this particular area of infrastructure, so thank you. >> thank you for that comment. i will pass that on. >> thank you.
1:36 am
>> i actually -- madam president, i actually wanted to -- katie, thank you so much for your presentation. it was very informative. i want to second the comments that president maxwell made on erosion, and i would like to see some more information on that, so if you end up putting them together, i would appreciate if you can share with all of us. thank you. >> yeah, absolutely. >> madam secretary? >> members of the public who wish to make comments on item 7-b, the water quality report, dial 415-655-0001, then enter
1:37 am
meeting i.d. to raise your hand to speak, press star, three, and i'd like to note that system 7-b was called out of order, and it's for the water system program quarterly report. >> moderator, do we have any callers? >> operator: yes, madam secretary, we have one caller in the queue. >> clerk: thank you. >> operator: caller, please go ahead. you have two minutes. >> this is david pillpel again. i would like to see items that are presented posted on the
1:38 am
website afterward. i can follow up with don on that. i also wanted to note that i chaired the p.u.c. citizen advisory subcommittee for a year, so when there are events that recognize project milestones and completion, particularly if they have been in the works for a long time, it would be nice to be invited or included. not just me, but there are a number of people, former staff and c.a.c. members who should be invited to those events. despite that there's a virus out there, we are still seeing projects to completion, so just wanted to mention that. thanks very much.
1:39 am
>> clerk: mr. moderator, are there any other callers? [inaudible] >> operator: go ahead, caller. i'm sorry. two minutes. >> thank you. commissioners, this is ali altahar. if you remember the c.s. 910, which is the construction management services that i won fair and square, and if you remember also how you tried to derail that contract by contacting a designer that was involved in the design of some of those processes under my contract, and you tried to give them the work directly not only violated the ethics code, you also violated the conflicts of interest by allowing a designer to conduct their own
1:40 am
construction management design and connection. shame on you, katie. this is why the corruption is so embedded in the p.u.c. because of your kind and because of the conduct of yourself. >> operator: thank you, caller. madam secretary, there are no more callers in the queue. >> clerk: thank you. [inaudible] >> clerk: public comment on item 7-b. >> can we go to the next item? >> clerk: yes, item 7-a.
1:41 am
[inaudible] >> next slide. this table shows a summary of the project costs forecast compared to their 2018 approved budget. the projects are grouped into categories. as you see, there are many projects with forecasted costs that exceed the 2018 budget. know that these forecasted costs are within the 20 to 30 ten-year c.i.p. in march, we will be bringing you you a recommendation to rebaseline these programs so the budget can be consistent with the budgets that were approved in the ten-year c.i.p. in 2020.
1:42 am
next slide. this table summarizes the number of projects that are forecasted to exceed the 2018 approved schedules. again, there are many project that's have exceeded the approved schedules by more than six months. this is for a variety of reasons that are specific to each project. over the past year, we have carefully analyzed the project's scope, schedules, and budgets, and we recommend revising many of these to accommodate our current resources and permitting and contracting restrictions. we will be bringing you our recommended rebaseline program for your approval in march. next slide. so some highlights of the reporting period. in general, we still are having some minor schedule impacts due to the covid safety requirements, but not too bad. and i shared with you, what
1:43 am
you're seeing in this will be the same that we propose to you when we come back in march to propose the new baseline for this program. and i'll skip the rest because i have slides for each individual project, so let's go onto the next slide. so this is the regional water project, and why don't we go to the next slide. so the sunol project, this gives you an idea of the breadth of what's needed. the san andreas number two, the
1:44 am
completed construction of over one mile of pipeline that was completed in san bruno. at this time, the creditor's completing -- the contractor's completing punch list items. this line carries water from the harry tracey treatment plant to several parts of san francisco. this project was completed on time and on budget, even with several times going through very environmentally sensitive habitats. next slide. the crystal springs pipeline is in early planning stage and undergoing corrosion assessments and geotechnical testing. next slide. the southern boulevard ridge extension, we are just waiting for the approval of the
1:45 am
environmental impact report. the planning commission is reviewing our response to public comments documents that was submitted to them last quarter, so we hope as soon as we can get approval, we'll get this project out to construction. for the sunol long-term improvements projects, there are two contracts. the first contract is the sunol yard and shops, and that contract was closed out during the quarter. for the watershed center, the walls are being erected, and this picture shows the lovely architecture that are being put on those walls. they're really doing a great job out there. a few additional native american features were found, and these are being handled appropriately as i've noted in past reports, and the arts exhibit continues. next slide. so this is an example of some of the art and exhibits that are being considered at this time, so very exciting
1:46 am
projects. and next slide. and now i'll cover some highlights of the local program. next slide. the [inaudible] and the contracts are approaching completion. again, there's just a lot of close-out items to do, and starting up the wells and converting them over to the potable water. right now, they are feeding the irrigation systems in golden gate park. next slide. and the sister project to this is the san francisco west side recycle water project because when this project's done, this will feed the irrigation in golden gate park, and we will convert the groundwater to potable system. for this project, the most of the building structures are completed at the oceanside
1:47 am
water pollution control plant, and the treatment system is being installed, and they're also making improvements to the building structures. next slide. the college hill reservoir project has completed design, and we anticipate this will go out to bid in either this quarter or in q-4, so it's a great one to get out to the streets. next slide. and our main replacement program, it never ends. continues to go on. we have 12 projects in construction right now. the geary street project was completed during q-2, and i think there's going to be a couple other projects going out to bid in the next project. and that's my presentation, and i'm happy to take any questions. >> any questions? i have a very [inaudible]
1:48 am
rollins road building that we just purchased, and i think at some point, you were going to have staff in that building, and then, you changed your minds and decided to [inaudible] so why was that? >> the rollins -- you want to recover that, michael? >> yeah. we purchased -- we leased rollins road for several years, and then, we purchased it. we went through the exercises of rebuilding the millbrae yard and then went through the procedure of removing them back to millbrae yard. so they're actually planned for their movement over there in a couple of years. >> thank you. all right. any further questions or comments, colleagues? seeing none, then, thank you. >> thank you. >> madam clerk, public comment
1:49 am
on item 7-a. >> clerk: members of the public who wish to make comment on item 7-a, water enterprise capital improvement program quarterly report, dial 415-655-0001, enter meeting i.d. 146-039-1469. press pound, and pound again, then press star, three to enter the queue. will moderator, do -- mr. moderator, do we have any
1:50 am
callers? >> operator: madam secretary, we have one caller in the queue. >> this is ali [inaudible] please check your records. that contract was signed about $400 million, so 800 from 400, that's, what, 200% increase, and you call that -- you call that keeping the project under budget, keeping the price? now, the reason for this is seeking is confidence of people like katie miller, todd kelley, and others. 200% increase, and you are telling the public that ratepayers, that we are keeping our projects under control, under budget. this is -- this is amazing. do you really believe those statements that are being made? do you believe someone like kate miller who is willing and has tried and actually has done it, to call the designers to do
1:51 am
the p.m.s, and i had a contract that i won fair and square? it's the same story all over again. please wake up, commissioners. thank you for your time. >> operator: thank you for your comments. madam secretary, there are no more callers in the queue. >> madam president, that concludes my report. >> item 7-c, you have nothing to report? >> no. >> and madam president, we don't typically engage, i understand that, but just to be clear, katie was not involved in the calaveras dam project. a lot of unknown sites factors there, but it's not katie's issue. >> thank you. madam secretary, next item, please. >> clerk: madam president, your next item is item 8, new
1:52 am
commission business. >> colleagues, any business? seeing none, then, madam secretary, next item, please. >> clerk: your next item is item 9, consent calendar. all matters listed hereunder constitute a consent calendar, are considered to be routine by the san francisco public utilities commission and will be acted upon by a single vote of the commission, there will be no separate discussion of these items unless a member of the commission or the public so requests, in which event the matter will be removed from the calendar and considered as a separate item. >> any items that you would like to see taken off the calendar? no? seeing none, madam secretary, please open this item up for public comment. >> clerk: members of the public who wish to comment on this matter, dial 415-655-0001,
1:53 am
meeting i.d. 146-039-0630, pound, pound. mr. moderator, are there any callers? >> operator: madam secretary, there are two callers. first caller, your line is open. you have two minutes to speak to item 9. >> eileen [inaudible] san francisco coalition neighborhood, speaking on my own behalf. i am requesting the commission separate item 9-e, as in edward. this is the lynn col way-48 avenue diversion project, contract number ww-694.
1:54 am
>> operator: thank you. next caller, you have two minutes to speak, and your line is open. >> can you hear me now? >> operator: yes. >> thank you. david pillpel. i have two items. item 9-a talks about a specific item without the contract or the date, so i'll be requesting that from city planning, if someone can find that. item 9-b, by contrast, includes the case number, the date, and has a link to the e.i.r. addendum. that's a much better model, and i would strongly encourage is that approach going forward. finally, 9-d. it has the case number and
1:55 am
contract, but there's no link to the staff report in the categorical exemption, so that could be better. just looking to have a little bit better organization of these items. thanks very much. >> operator: next caller. you have two minutes to speak to item 9. >> this is ali altaha again, and specifically the contract with midship. if some of you have the history that i do, you should recognize the company being awarded this contract, which the owner is a personal friend of [inaudible] kelly. could this just be another
1:56 am
walter wong sole source contract to buy pumps from china? finally, with all due respect, commissioner harrington, i have a lot of respect for you, and the fact that you are a previous general manager of the p.u.c. the issue here is not what katie -- whether katie is or was involved in what project, the issue is the conflict of interest, the issue is the incompetence of an agency that allows them to double the cost of the contract. i'm well aware of why the geotechnical report and what it did not include and how it was covered up. i'm well aware of the fact, and i know exactly why the price is 800. the question is when is the p.u.c. willing to hire
1:57 am
competent l.d.e.s and competent people instead of the pass through of the c.u.d. and the flea market for whoever is going to get certified as a construction manager. again, just to review the west side of the report on l.d.e.s and the licensing requirement, it's not difficult. anybody can see it, but unfortunately, a lot of people decided to shut their eyes and close their mouths as if -- >> operator: thank you, caller. your time has expired. madam secretary, no more callers in the queue. >> clerk: thank you. item 9, consent calendar is closed. madam president, you're muted. >> may we have a motion and a second on all items except item e?
1:58 am
>> so moved. >> second. >> i'll second. >> thank you. it's been moved and seconded on all items, except item e. roll call vote, please. [roll call] >> clerk: you have five ayes. >> it's been moved and passed. thank you. item 9-e? >> clerk: madam president, a member of the public had wished that to be severed, so i don't know if there's any other discussion on it? >> i don't think so. >> i move for the sake of the item that there be more discussion, so i make a motion to move it. >> it's been moved.
1:59 am
>> donna, i think you should -- >> i think we should -- >> call for public comment? >> yeah. >> okay. madam secretary, maybe we should -- i'd like to read the item and then call for public comment. i'd like to have you read the item, and then, we will call for public comment. >> clerk: yes. item 9 on the consent calendar, item 9-e, accept work performed by marinship development interest, l.l.c. for contract number ww-694, approve modification number one, decreasing the contract by $7,400, for a total contract amount of $960,580 and a total contract duration of 90
2:00 am
consecutive calendar days and authorize final payment to the contractor. >> thank you. is anyone available on this? >> yes, madam president. >> can you give us a little presentation on this? >> it was to divert flow to relief flow on one of the stagnant sewers so it would eliminate odor, and so it was a small contract that the commission did approve award to marinship. >> thank you. colleagues, any other questions? all right. let's open this up to public comment. >> clerk: members of the public who wish to make public comment specifically on item d-e of the consent calendar dial 415-655-0001, meeting i.d.
2:01 am
146-359-0630, pounce, pounce. to raise your hand, press star, three, and again, this is only on item 9-e. mr. moderator, do we have any callers? >> operator: madam secretary, there are two callers in the queue. first caller, your line is open. you have two minutes to make public comment on item 9-e. >> thank you. commissioner and president maxwell, i'm requesting that you direct staff to explain why this contract had only 4% l.d.e., and again, it seems like the c.m.d. report concurs with it. 4% is such a low number, such a low number for a basic simple construction contract. there's no explanation, there's
2:02 am
no indication whatsoever that there's any other bidders on this contract. this is a public agency. this is a public agency. this information should have been public, so if you don't mind, i'd like to ask you again, with all due respect, to ask kathy howe how did this work. now kathy might be more interested in making sure her son works for her at the p.u.c., just as they've been instrumental to taking this agency from a top agency to the bottom. thank you, and i look forward to hearing back from you. >> operator: thank you for your comments. next caller, your line is open. two minutes to speak to item 9-e. >> eileen broken, coalition for san francisco neighborhoods, speaking on my own behalf. i would like to thank the
2:03 am
commission for severing this item and for giving an initial presentation to clarify what it was all about. thank you. >> operator: thank you for your comments. another caller has joined the queue. caller, two minutes of public comments on item 9-e. >> so commissioners, you keep hearing from what ali altaha is explaining to you. what are you all going to do about it? do you want a couple of articles in the local newspapers? there are already articles that demean y'all, so commissioners, you have to put a stop to this. find out why don't y'all maintain standards?
2:04 am
any good government or even the federal government, they have standard operating procedures. what the hell is happening? even though there's on going investigation, the head of the sfpuc has stepped down, and you all keep listening to some of the [inaudible] and others, and you keep looking the other way. so i'm going to write something about this. i think you all are forcing me to write something about it. thank you very much. >> operator: thank you for your comments. madam secretary, there are no more callers in the queue. >> clerk: thank you. public comment on item 9-e is closed. >> thank you. may i have a motion and a second to move this item forward, please? >> i move this item. >> second.
2:05 am
>> it's been moved and seconded. roll call vote, please. [roll call] >> clerk: and you have five ayes. >> thank you. next item, please -- or item? >> clerk: madam president, your next items of business are items 10 through 13, and i want to note that staff will provide one presentation on all four items, item 10, 11, 12, 13, which will be followed by commission discussion, and then, we'll have four separate public comment periods for each individual comment period, followed by four separate commission votes for each individual item, and this item will be introduced by a.g.m. sandler. >> madam clerk, can you -- madam secretary, can you -- before me go forward --
2:06 am
>> clerk: oh, yes. i'm sorry. let me read the items. item 10, public hearing to consider and possible amount to adopt mid cycle adjusts to the fiscal year 2021-22 capital budget. item 11, public hearing to consider and possible action to adopt mid michael amendment to the san francisco public utilities commission fiscal year 2021-22 operating and viet nammatic budgets. item 12, public hearing to consider and possible action to adopt the san francisco public utilities commission ten-year capital plan for fiscal year 2021-22 through fiscal year 2030-31, and item 13, public hearing to consider and possible action to adopt the san francisco public utilities commission ten-year financial
2:07 am
plan for fiscal year 2021-22 through fiscal year 2030-31. mr. sandler? >> actually, madam president, this is michael, and if you would allow me, i want to provide a very brief overview. the budget proposal for our racial equity is influenced by two key drivers. the office for racial equity and this commission's initiative on racial justice. the first comes from the legal mandate of the city's office of racial equity. at the end of december, we submitted our plan to the city's office of racial equity. to implement this work, we detailed in our plan we must start by adding additional resources, developing a core racial equity team, and
2:08 am
deploying new systems to support the delivery of the items in our plan. as you know, we have 2300 staff over seven counties with very different needs and experiences when it comes to racial equity. to best serve our large and diverse staff, we need to bring on racial equity leads for our large enterprises to facilitate the work of our enterprises and bureaus and to coordinate with the agency wide plan. requirements that this commission adopted go beyond the office of racial equity requirement right side in three different areas: access to water as a human right, affordability, and equitable land use, and each of these is reflected in our budget proposal. second area that i wanted to highlight was covid response. this is a key driver of our proposal. it continues to impact our operations, dedicating our
2:09 am
staff to complete their tasks and objectives. we continue to work remotely for our office staff, but we have staff that have never left the field. the pandemic has had major impacts on our economy here in san francisco, and one of the things we want to make sure we do is actually help jump start that, so you'll see some additional resources being pulled forward in our capital plan to make sure that good paying jobs are available on our sites for san franciscans. other areas of impact include stewardship. this is an area that we kind of have to address now, given some certain circumstances. it is critical that we conduct audits of our various programs to ensure integrity and public transparency. we propose to hire an audit manager to complete the audits
2:10 am
that we will be conducting in the next year or so. [inaudible] there are several environmental challenges we face but we're dedicated to addressing them by allocating resources [inaudible] towards developing and implementing solutions. wildfire response has been a big part of our efforts this past year. as you know, we've had fires in the peninsula, we've had fires in alameda county, we've had fires up in the sierras. our budget proposal is to address some of those wildfire needs and mitigate those wildfire needs. we're also proposing some additional funds for green fur, maintenance, and support, and also when you heard our green water plant that will be opening later this year, and finally, we're proposing some new resources for our southeast community center. i will hand it over to eric who will go over in detail some of
2:11 am
the budget proposes that we have. >> thank you, mr. carlin. thank you. may we have the slides. commissioners, are the slides showing for you? okay. can we start at the beginning? okay. thank you. so commissioners, eric sandler. i'm the c.f.o. and the assistant manager of general services for the p.u.c. active manager carlin gave a great overview of the items that are before you. i just wanted to -- though i'm the one up here presenting it, it's the hard work of many,
2:12 am
many people in the department. i wanted to recognize people in the infrastructure bureau and all of our department bureaus. even though it's a mid cycle adjustment, it represents a lot of effort on behalf of a lot of people. so the items that i'm going to provide a little bit of an overview of the process, and we remind ourselves where we are, and then, i will talk about each one of these items separately. the first one is changing to our operating budget, changes to our capital budget, and then ten-year exercises that are required by our city charter, so a ten-year capital plan and a ten-year financial plan. next slide, please. so this is just a reminder of where we've been over the last year. a little less than a year ago, the commission approved the biannual budget for fiscal years 21 and 22.
2:13 am
not long after, the mayor's office ordered a shelter in place, and we formed a resiliency team to figure out how this pandemic and the response and the economic impact would impact our organization. we spent three months rebalancing our budget and presented to you a number of times, particularly on july 14, the proposed changes. the mayor submitted those to the board of supervisors in the end of july, and in the month of august, the board considered all of those changes. october 2, the mayor signed the adoptive budget. we have been on -- in a continuous budget process. last time we all spoke was december 8, and we spoke about budget priorities. since then, the mayor actually provided budget instructions for the entire city, and here
2:14 am
we are today. so next slide. let's see...it's an unusual year for us. we're at the midyear of a two-year budget cycle, which is usually closed, meaning, we usually don't have any changes to our tier budget at this point. however, the covid impact overshadowing the past year have driven us to make some adjustments to our budget. as we mentioned in the last slide, the rebalancing effort over the last year-long period resulted in a cut of about $90 million to our two-year budget. our current year revenues are tracking within about 5% of the agency, so we don't need to reopen our budget. what we're doing is just putting forward some critical adjustments, and so what will
2:15 am
be considered by the mayor and the board of supervisors are the adjustments to the budget, the operating budget. so what we were talking about are the items highlighted by acting general manager carlin, specific proposals related to implementation of racial justice, resolution, and the racial equity action plan adopted by the commission, and also, the mayor's budget instruction, which for the general fund, focused on austerity and core budget proposals, so this fits in the mayor's direction and budget priorities. so just to recap priorities, a year ago, when you adopted the two-year budget, it was focused on the utility of the future, resiliency, and people, those three things. and then, when we readapted our
2:16 am
budget and represented it to the board in august, it focused on some subthemes of inclusion and equity, adaptation to covid-19, how to maintain financial stability in the face of continued uncertainty, and then, really, using all of the work, call of our capital investment and our positions as an engine of local economic recovery and employment, and we're one of the better positioned agencies in the entire city to be driving employment and recovery. so when we spoke to you on december 8, we talked about the importance of moving -- of funding the planning that we had -- we're going through with respect to implementation of the racial equity action plan as well as racial justice resolution. i think, commissioner moran, you directed us to focus on
2:17 am
ensuring that we had adequate funding for audits and integrity as well as water supply management. we also had a comment from the public, i think mr. pillpel, about asset management. so that was the listening that we did on december 8 from you and the public. next slide. so now, i will give an overview of the operating changes that we're proposing. we're a very big organization. our operating budget is just under $1.5 billion. about half of it, you can see in blue and green, is related to water, about half of it is
2:18 am
related to waste water, and the rest is related to hetch hetchy. next slide. so what we have here is each of our budget areas, enterprises. the original area that has been approved and adopted for fiscal year 21-22, and then, the revised request that we're submitting to you and the changes. and as you can see, these are net changes, so there are some pluses and takes in each enter -- enterprise. so this next slide, here's a summary of the additions to the budget, and i'll address them in more detail, but you can see the big driver of the increases to our budget are the cost-to-purchase power. so it's purchasing power, and it's also the cost and distribution of power. and i'll just note that that
2:19 am
was actually one of the larger cuts that we had when we went through this process that we had and the balancing process during the summer of last year. if you -- other than the power purchases, you can see our priorities of racial equity, covid response, utility of the future, resiliency, and people are the remaining elements of the additions. so if we look at the biggest piece of the additions to the budget, i mention -- i'd wouldn't characterize this as additional investments so much as new costs. we have a very significant addition of $11.4 million in additional tran mission and distribution costs in the hetchy power enterprise, and
2:20 am
that is exclusively due to pg&es filing in the wholesale cost. as acting general manager carlin mentioned, we have two sources of our mandates for -- that really form the basis of our racial equity activities and investments. one is the direction from the city office of racial equity so implement racial equity action plans, which we delivered at the end of last year, and then, the second is the racial justice resolution adopted in the summer 2020, condemning systemic racism and promoting racial justice in the various areas that we operate, so water as a human right, racially just
2:21 am
land use, and then trauma informed resilient organization. as michael mentioned, the proposal for racial equity and for implementing the mandates and the plans that you and the city have directed us to do, we need some resources, and that breaks down into a core team to lead the work required by the office of racial equity, and that work really breaks down into -- it's very specific and highly prescriptive, yet it relates to hiring and promotion, diverse and equitable leadership, organizational culture of inclusion and belonging, and then board and commission diversity. and then, we also have all of the work that's related to the
2:22 am
commission's racial justice resolution. and so the investments that we're talking about are a combination of the core team -- core racial equity team to support organization's diverse staff and then also shoring up human resources and technology to be able to do modern people management and report and monitor around outcomes and success. the next priority that we're talking about relates to covit adaptation, and it's really about safety and communication and effectiveness of our workforce as we operate in a more remote distributive environment and need to have communication with field staff. so what we're talking about are investments in supplies for cleaning and sanitizing,
2:23 am
workplace upgrades as well as upgrade in remote equipment. next slide. so the -- the next area of priority is really a range of investments that we're characterizing under utility of the future, and these are items that we have talked about in the past and are continuing to fund, so advance quantitative precipitation, information radar network that will produce details precipitation forecast and help with our bay area forecast and responsiveness, the maintenance of our green infrastructure investment, funding for specialized analytical testing at our wastewater plant, recycle -- i think katie provided an update of our wastewater recycle water
2:24 am
plant and then improvements for the new southeast community center. the last area -- or schematic area of the budget is $4.2 million that's allocated to a range of mitigation areas. one is wildfire mitigation. the alameda watershed is classified by california as moderate high fire hazard severity risk. we experienced s.e.u. lightning risks and other bay area fires put a lot of stress on our organizations. our workers did heroic work and continue to need to be funded appropriately to do that work. additionally, i think president maxwell, you talked about this. as we bring facilities on-line, we need to be thinking about the costs of operating an
2:25 am
increasingly complex system, so there are some positions here related to operating new facilities in the regional water system. we have some additional funding for climate change assessment, maintenance and inspection of current infrastructure, and then replacement of equipment. next slide. so when we talk about people, all of the proposals i talked about earlier involve -- we're talking about an addition of 27 positions, including attrition reduction. we're going to be continuing with the city hall fellows program, which is an high level apprenticeship program, where we bring people just out of college into the program. you've seen a number of city
2:26 am
hall fellows. i think you've seen aaron franks here a number of times talking about the program. here are a number of things that are proposed to be added to the budget and the operating budget. next slide. so the next theme is really financial sustainability, so i guess i'd highlight a few things here. >> actually -- this is commissioner paulsen. can you go back? you said you were adding some additional apprenticeship positions? >> city hall fellows. i was talking about the city hall fellows program? >> no, it's not in the -- >> okay. go on. i'm sorry. continue. point taken.
2:27 am
>> in terms of financial sustainability, we are making some fiscally sustainable decisions. one was to really approach our power purchase and transmission distribution expense budgeting in a conservative way. there hasn't been a [inaudible] but we are budgeting for this additional cost. we actually made -- had to do some significant -- some fairly significant rebalancing in the hetchy power enterprise. we maybe -- we could have absorbed for one year, let's say, this increased cost, but we really needed to provide for an intensive structural cost reduction gl forward, so we made some prudent refinancial costs. we're maintaining it as policy
2:28 am
level of 25% of operating expenses. we made some reductions in cash-funded capital and making a temporary shift to a more leveraged position. and then, in terms of debt service costs, we've been -- you've heard from us a number of times about really taking advantage of attractive interest rates. we've refinanced, and you'll see that we have some very significant reductions in the water enterprise in particular. they're offsetting some of these additions, and then, the addition of an audit manager to fill out the audit and compliance team that we have. you hear regularly from our team, deputy c.f.o. charles pearl and before that, deputy c.f.o. nancy hom to report regularly on the adjustments that we're making at the p.u.c.
2:29 am
to address some of the issues that have been raised and to ensure integrity. we have -- okay. next slide. thank you. so just to summarize, you know here are the budget highlights and here's how we believe we've addressed the priorities, as i mentioned, the biggest change in the budget is the additional power purchase and distribution costs. that's $16.7 million. we have just under 2-point -- we have just under 2.9 million for racial equity and shoring up i.t. response. there's 2.5 million for covid response, 4.2 million related to maintenance investments.
2:30 am
in addition to the audit manager, we have $2.5 million of existing funds in our city services work order that we can dedicate to a whole audit plan. and then, i think, commissioner moran, you had asked about ensuring that we have proper funding for water supply development and appropriate positions. i just wanted to highlight, they're not necessarily additions, but we have existing funding, $36 million in the capital budget and $8 million in operating funds, but several staff in the base budget focused on these efforts managing the supply development portfolio. in terms of -- >> i have a question. >> oh, yes. >> i was just wondering, what was -- maybe i missed it. you talked about it. you have three f.d.s for people. what does that relates to? >> oh, that is some
2:31 am
adjustments -- that's new staff to support, manage, and maintain new facilities in the regional water system. let me see...laura bush, is there any more you can add to that question? >> everybody, can you see me? can you hear me? this is laura bush, the managing director. so we're adding four staff to maintain new facilities in the regional water system. 0933, 7347, 7307 and 5207, to manage and undertake this work. for instance -- >> is that the three -- laura, thank you. i think, on slide 18, was the
2:32 am
question, commissioner, was the three f.t.e.s for people -- >> yeah, i'm just wondering, where do those fall under? like, where do those fall under here? >> [inaudible]. >> oh, people? >> yes. >> that was just the attrition -- >> why didn't you have it categorized under wastewater, if that's where it's going? i mean, it just says people -- >> yeah. we would categorizing it kind
2:33 am
of cross agency investments under the priorities that we have at the beginning of the presentation rather than filing it out by enterprise. >> well, utility of the -- oh, okay. green power -- okay. it's just a little confusing. i can't understand that that it sits out a little bit itself. it almost seems like it should be categorized because it seems like it could be trying to fudge something. i don't know. >> i very much appreciate the comments. we have a large and complex budget that is sometimes -- you try to figure out ways to present it that are maybe
2:34 am
semantically helpful, but other things stick out like a sore thumb. thank you for noticing that, commissioner ajami. >> well, we'll have discussion at the end for each item. i'm going to turn now to the 21-22 capital budget. we are in the second year of a fixed two-year budget, so this update is only about critical changes that could not be addressed through budget reallocations. so our revised budget breaks down primarily wastewater, about 61%, and that's because of all of the work at the southeast plant and sewer system improvement program. about 20% of it's water, and the remainder of hetchy water
2:35 am
and hetchy power and a small portion of clean power. here is a summary of the revision. let's see...i'll go into more detail on the next slides, but you can see that the biggest change is related to the wastewater enterprise, and that's because of the ssip biosolids project as well as the grant infrastructure increase. next slide -- oh, sorry. i was talking about my last discussion -- comments were on this slide 21. the largest change is obviously in the wastewater enterprise, and that's primarily driven by the biosolids project, and i'll get into each of these areas. thank you. so now, we're on slide 22. the $213 million increase is driven primarily by the increase in the biosolid project due to scope and
2:36 am
scheduling changes. the revisions were included in the revised 2020 baseline scope and schedule for the ssip presented to the commission in december. there's also an additional $6 million increase for green infrastructure grants program. that program has been incredibly successful, and we are trying to fund it in advance of the implementation of a new stormwater charge that will be a part of the next repackage for wastewater that will be an incentive for folks to develop green infrastructure and detain stormwater runoff, and it's partially offset by other projects, and in association with the increased appropriation, there's an increased cost to finance it, as well. next slide. so the capital budget changes for hetchy water and power,
2:37 am
there's a $16.4 million increase related to the par enterprises big [inaudible] coming in over the original estimation. that was acted on about a month ago, and also, there's a decrease to the low carbon fuel standard project, and that fund is a separate self-appropriating fund, and there's also a --
2:38 am
>> -- that's contained in the budget or it could be the authorization to issue bonds, and these are the comparisons to the bond authorization that you proposed in 2020 in addition to these capital budget changes. so next item, and we're about halfway through, is the ten-year capital plan. and again, just from a big picture perspective, the ten-year -- we have a large ten-year capital plan. page 26.
2:39 am
that is about $9.1 billion over the ten-year period, and that is -- 60% represents the wastewater enterprise, so that's about $5.4 billion. $2 billion relates to the water enterprise. 1.6 is hetchy water and power, so that's both water, power, and joint, and then, a capital program for cleanpowersf. next slide. so again, we are in the mid cycle, and so we -- i think what i'd say is we haven't gone through a complete comprehensive rescoping of the ten-year capital plan. the charter requires us to update the capital plan every year, but we go through an exercise in conjunction with our biannual budget, so we're
2:40 am
in the offyear, and what we do in the plan is essentially change the -- make adjustments for the plan period so the first year is no longer part of the plan, and you add the 11th year, and it becomes the tenth year. so the changes in this mid cycle are not that significant. and as you can see, what we have here -- what this table shows is each of the enterprises, the approved capital plan and the ten-year capital plan, there's a change of about 1% or $10 million of the total time. the capital plan and the ten-year capital plan are planning exercises so that the commission and all of our stakeholders can see what it is
2:41 am
we're thinking about investing in and what are the potential impacts and rate impacts associated with it. this is a rolling planning ten-year planning exercise so that you can see the decisions that you're making now, what are the impacts potentially in the future? next slide. so just to summarize the updates for water, wastewater, and hetchy, you know, as i mentioned, they updated the ten-year time frame. for wastewater, we incorporated the s.s.i.p. and wastewater infrastructure project, including the rebaselining scope that the commission considered in december. in water, it was really just updating the ten-year time frame. in hetchy water, we updated the ten-year time frame, and there is -- we also had some
2:42 am
[inaudible] in our improvement projects, and so we reflected those reductions. next slide. for hetchy power, we updated the ten-year time frame. as i mentioned, we made the adjustment in the day quarter ten-year project. we made reductions so we could balance the ten-year project as well as the planning project going forward. we're funding the critical power revenue power project out of debt earlier in the ten-year period and then reverting to more cash funding later in the period, and as i mentioned, we made a decrease to the low carbon fuel standard project budget as those funds are
2:43 am
self-appropriating. cleanpowersf, it was just updating the time frame. okay. so now, i'm going to talk about the ten-year financial plan. next slide, please. as i mentioned before, the ten-year financial plan is providing visibility to the commission and stakeholders of really the capital investments that we'll be making over the next ten years. the plan has developed over the last several years from just these slides to an actual document, which you have received and is posted on the website and contains a lot more detail. this plan was critical due to the financial impacts from the covid-19 pandemic, the recession, and lower sales that we're seeing across the agency and really need to consider
2:44 am
financial sustainability. the plan has balanced sources and uses for all of our enterprises over the ten-year period. i'll highlight areas of where i think there are some things that the commission will want to pay attention to as we move forward. let's see...it incorporates the rate increases for next year that the commission has already adopted. we've provided the -- the published document contains some sensitivity analyses, which, now more than ever, we can see that there's a lot of uncertainty in terms of the volumetrics sales that we could see in the future, and it's important to not these as fixed-point and not deviate
2:45 am
from them. let's move onto the next slide. >> this is commissioner paulsen. sensitivity, is that, in one sentence, to get it going -- >> umm, yeah. >> is that, like, infrastructure and [inaudible]. >> it is -- >> -- homes and stuff like that? >> it could be -- really good question. it could be homes, it could be usage characteristic changes, it could be, you know, electrification of transit. let me try to put it this way -- >> does this have to do with the volatile of the economic -- >> yeah. >> -- based on everything you can think of, you know, in terms of infrastructure, housing, people staying in buildings. >> yeah. >> you know, whatever?
2:46 am
>> it's trying to account for all of those things. we think we will sell 100 units in the next ten years, but maybe we'll sell 80, and we want to know how those will play out. i want out in the weeds. thank you. >> yeah, and i wanted to do one sentence, thanks. >> so as i mentioned, the key updates for this plan include adjustments based on what we're seeing in terms of covid-19 on our sales volumes, and it's mainly a decrease in nonresidential customer demand. we have aligned our recovery assumptions with the city economists generally which provide for recovery by fiscal year 2024, but a longer term
2:47 am
recovery for tourism related industry. we have revised capital financing assumptions, and these are significant. so we've reduced the debt issuance sizing and timing based on project delivery and baselining reviews, and we've also made some adjustments in the cost of debt and interest rate assumptions, and that's the result of a study that was conducted with our financial advisor, and an updated view based on our historical financing cost. so our prior assumptions were that all debt would cost 5%, and we've made some more refined assumptions based on our actual experience and our success securing low interest cost financing. and the result is that the rate forecasts that we're looking at or the bill forecasts that we're looking at in the future are quite a bit lower than what we had looked at last year.
2:48 am
so those -- those are the highlights. now i'll go into each of the enterprises. the best case assumes a gradual recovery to slightly lower than prepandemic water sales by fiscal year 24 and flat sales thereafter. we have an upside sensitivity, which shows demand growth that increases at a rate that's close to what is being discussed in terms of our urban water management plan, and then, we have kind of a downsides sensitivity in water volumes that calls for a 10% increase, so there's quite a good spread there. the plan reflects updated capital planning revisions, the capital planning changes, and
2:49 am
adjusting for financial policies -- all of the financial policies that the commission had met. here on slide 34, this actually provides a visual that i think is helpful of historical and then projected retail and whole sale sales volumes from fiscal year 2010 through fiscal year 2031. and on the top of this graph, i guess let me be really specific, the y-axis is water seals in million gallons per day. the dark, it's showing up as gray green for me, line at the top is wholesale sales volumes, and the light blue line are retail sales volumes, so sales in san francisco. you can see they vary over time. you can see where we are in terms of -- you can actually see that the wholesale -- let
2:50 am
me see...if you look at 2020, 2021, you can see a demand of 134.8 m.g.d. going down to 129.2 m.g.d. on the wholesale side. that is really a function of the fact that the retail and wholesale service areas have a very different residential mix. it's not, like, rocket science precision, but we have seen where there's a large commercial customer base in san francisco, and we saw a pretty significant net reduction in demand. by 2024, we see a recovery to prepandemic levels. we're projecting -- our best
2:51 am
case projects flat demand, and then, we look at some sensitivities around that. slide 35 is kind of the result of the financial plan, and what i'll do, i'll walk-through this spreadsheet. all of the following plans have a similar spreadsheet, so the way this is structured, you start with a beginning fund balance. so we've got fiscal years across the table. you start with a beginning fund balance, you have your sources, so your retail water sales, your wholesale water sales, any other income. you have your uses, which are operation and maintenance expenses. in the case of the water enterprise, a transfer to hetch hetchy water and power for water-related costs. you can see debt service, which
2:52 am
and then rate revenue. and then, we see net revenue in the first few years. we see some net negatives, and then, you see the ending fund balance. so if you take the starting fund balance plus sources sales and uses, you get the ending fund balance. and there's some metric percentages below them. we have some metrics water increases, which are not discretionarily set, and then, you have some commission financial policy targets, which
2:53 am
are fund balance as a percentage of operating expenses, debt service coverage on a couple of different bases. the indenture is what we're legally obligated to. the current coverage bases is more of what credit rating agencies and external agencies look to for credit worthiness. and finally, there's a number at the bottom, which is how much of the capital was funded by revenue versus debt. it gives you a sense of the leverage contained in the plan, and the commission has policy metrics for each of these areas. and so this is the ten-year plan for the water enterprise, and we -- great. next slide. this is the companion slide of volumes for the wastewater enterprise. it's based on the same sort of
2:54 am
retail water demand information and assumes flow factors and strengths, etc., and the same kind of covid recovery path. here is the financial sort of presentation of the wastewater ten-year financial plan, and you can see that it's about 25% revenue-funded capital. i think that's an important element. let's see...and then, slide 38 shows the combined water and sewer bill that's implied by these projections and capital investments. so what you can see is fiscal year 21 is the fiscal year we're in. fiscal year 22 is the next fiscal year starting july 1.
2:55 am
the commission, as part of its rate package, has adopted -- has adopted four years of rates, which includes an adjustment next year. the -- you know, if you look at the current water -- the current combined bill for the typical single-family residential customer, it's about $142 for water and wastewater. and i think importantly, if you look at 2031, and you see the combined bill, it's about 12% lower than it was in the prior ten-year plan, so i think that's an important thing to highlight. it is largely driven by refined assumptions in the delivery -- deliverability of the capital plan from the cost of financing it, so -- and when you look at that combined bill in terms of a
2:56 am
percentage of median household income -- so this is a metric, a level of service goal that's been adopted by the commission that we're actually doing -- we have a lot of -- an internal team, kind of the water as a human right team and a team that has implemented some of the emergency customer affordability program. we're looking at different metrics of affordability, but right now, there's this system that's used by the industry, and the commission has adopted a policy of combined water and sewer bill that's below 2.5% of the median household income. and so you can see -- here, you can see the graph of the water bill for the typical single-family residential user in blue, and stacked on top is the wastewater bill. and you can see that the wastewater bill is growing larger because of the ssip
2:57 am
investment. currently, it's at 1.4% of the median household income. in san francisco, median household income is not a great metric for affordability for all of our people, but it's something that we're working on. we're reporting on this because it's the commission's adopted servicing goal, but we're developing a series of vengss -- interventions and adoptions to combat this. the best way to maintain affordability, we will develop and maintain great programs, but it's also to manage our costs. the greatest driver of costs in the future is our capital plan. [inaudible]. >> and so if i can interrupt right now through the chair,
2:58 am
i'm just going to ask a rhetorical question, which means, you know, our investment in infrastructure to do the aging sewer system, definitely, the customers are going to share in that burden. that is correct, right? >> yes, and we do -- we have done a fantastic job as an organization pursuing state and federal funding and -- >> no, i'm not asking -- >> and we have -- >> no, i'm not asking you to defend anything. >> okay. >> i'm just saying, we see houses fall into sinkholes, and there's ancient brick and things that we see throughout the city, and there's been a tremendous commitment in san francisco to fix infrastructure in many ways, and here at the sfpuc, that means that the wastewater thing has got to be
2:59 am
fixed. but we have to make sure that it's not magic; that it's going to be reflected in rates. >> absolutely. >> and i say that i'm right when i say that not as an excuse or a blame or anything, but it's just part of, you know, the budgetary fact, correct? [please stand by]
3:00 am
>> it is much more concentrated. and then we have delayed s.f.o. and redevelopment, “which were a significant element of our plan last year by 18-24 months. there is an upside to sensitivity, which has to do
3:01 am
with an increase of the housing development and infill customers and no further recessionary delays. it's revenue reduction from extended recovery time frame and a delayed load growth at s.f.o. and in redevelopment. now let's look at the next slide which shows, sort of, it's probably the most interesting of all of the enterprises. what we have, on the wide graph, the y. axis, is volumetric sales of gigawatt hours and on the x. axis is fiscal year. the solid yellow line that is relatively flat is historical sales of the power enterprise. it is relatively flat. the grey line, which is fiscal year 2021, low projection. that is what we thought last
3:02 am
year when we sat down and reviewed the 10 year financial plan for the power enterprise. that is what we were projecting. that was a 1.8% compound annual growth rate. it assumed growth in s.f.o. and others. it assumed redevelopment along the bay quarter. but what we actually realized was significant impact. we had to balance the new demand it's 20% below where we were and it grows over the 10 year period to 1,337 gigawatt hours. you may be wondering, it is larger than what it was last year. how is that possible? some of it is a delay, and some of it is more information regarding -- we had included a
3:03 am
redevelopment load in the last plan to be more conservative and we have included that here. so, the next slide shows the balanced plan for the power enterprise. sources and uses and the fund balance. because we don't have much debt outstanding currently, there is not a lot of pressure on debt related metrics, but you can see we are funding 17% of the capital plan over the 10 years with cash. we are relying on debt and there will be an increase in the forecast. i say to the commission that this is -- you know, when we go to the next 10 year plan, and as we start talking about it in the power enterprise, we need to keep in mind that this plan here
3:04 am
is based on about 5% compounded growth rate. we want to be mitigating that. this is the real homestretch. we are talking about clean power s.f. as with the other enterprises, there was a reduction in customer sales volume as a result of covid. it was offset by -- we had increased enrolment. the base case assumes an increase in sales volume over the 10 year period. largely from electrification. then there is an upside to sensitivity, which is based on
3:05 am
electric vehicle working group recommendations where all vehicles will be electric by 2030. we made some assumptions regarding rate increases in the near-term, and i know there have been some discussions about what will be happening with the pci a that is the area -- when we look at clean power s.f., unlike, you know, water and wastewater, we are not operating a monopolistic environment. we have competition and we have some unfair regulatory practices , or our competitors make it challenging. next slide. i'm sorry. this is the historical and projected demand of clean power
3:06 am
s.f. and i think there was debate amongst the team about whether to include the 2015 demand in this graph, but i think it is important to realize that this has been such a dramatic -- it has increased in growth. if you looked at our budget presentation four years ago, it would be little slices of pie. now they are 16%. and the cost of purchase power is one of our biggest expenses now. it is a managing portfolio and mitigating risk is associated with it. it is critical. next slide. here is the 10 year financial plan for clean power s.f. it is fairly straightforward. you can see the power sales,
3:07 am
operating costs, we have supply, separately identified here, you can see fund balances and an operating expense in the near term. it stays around in the commission. the commission operating the reserve target of about 25%. growth starts in 2026 to a larger number and more fully funding a rate stabilization reserve. here are some representative rates. pardon the labelling. the rate is not the appropriate label for the table. here are the indicative rates of categories of clean power s.f. customers. next slide. in summary, the 10 year plan that we have presented, or we
3:08 am
balance around economic development is we have been largely on target with our assumptions today. there is a lot of uncertainty, as with all budgets today regarding the pace of recovery and the recovery of our demands for our commodity. the sensitivities that we have provided are trying to help characterize some of the uncertainty. i hope that, you know, what we are talking about here -- here is our forecast. our rates in 10 years will be, you know, this number, but rather it is directionally helpful for the commission. we have made some reductions in our future revenue requirements, largely because of our capital financing option. these are prudent and they are what has resulted in a reduction of our planned future, forecasted future rate.
3:09 am
i think the next annual revision of the 10 year plans will be critical. we will have more data regarding economic recovery and what our demands are looking like. we will have a comprehensive review of the capital programs, as well as the deliverability of them. and then we will be able to consider some of the additional risks that we highlighted. particularly related to the power enterprise of clean power s.f. that concludes my presentation. i am happy to answer any questions. the commission may want to call on each of the items and have a discussion and public comment. >> thank you. well done. much appreciated.
3:10 am
>> thank you so much. that was really excellent. i have a few questions for you here. on the revenue side and the rates, have we been considering anything around the coupling to make sure we are not constantly. [indiscernible] -- all these different aspects of the change in use that came to pass every year? i will ask a few questions. the second thing is that, you know, you showed the demand projection in the years to come. and i'm wondering how our capital investment right now is correlated to that demand projection that we have and are we sort of -- i'm assuming they
3:11 am
are accounting for that steady consumption, or even draw of consumption due to various things. i am wondering how those two are being considered in order to make sure we are not over investing on an infrastructure that might not necessarily have revenue -- [indiscernible] >> the current question is on the power side. out of curiosity, how do the rates compare to the wider ones and how the cost and the size of the bill compared to income -- i am really curious to know how this works. it is not a very common thing to have three enterprises living in one umbrella. it is interesting to see these
3:12 am
next to each other. and then one last comment, there has been a lot of work done in the academic setting, but some of it is being picked up on affordability. we are trying to move away from that. and use a different metric to measure affordability. i am happy to send some of those to you. you might already be aware of it there has been some work done on these. we're looking into the issues of access and equity and affordability. thank you. >> thank you, very much. those are some great comments and questions. i will try to answer what i can and we can follow up on the complex ones, too.
3:13 am
revenue decoupling is way by which you can have automatic rate adjustments, essentially if you want to recover your costs in any year. i think, i actually don't know if we have considered that. we do have a bit of -- we have a version of it with clean power s.f. it is a little bit more to maintain -- it is not revenue decoupling. let me just stop that line of explanation. it is something to definitely consider. we do tend to try to set rates -- those that we have sufficient reserves to be able to have rate stability. we do have a drought rate in the
3:14 am
water enterprise. in the event that the commission declares a drought and we see a dramatic change in volume, we do have an automatic charge on them there is a mechanism in the case of drought that achieves a somewhat similar outcome. >> the wholesale rate, the contract is coupled. >> yes. >> that is a cost concern. we could get our revenue delayed by a couple of years. it is pretty much decoupled. >> thank you. there is half of the revenue from the water enterprise. it's collected under the wholesale contract. you may have noticed in the financial plan for the water enterprise some negative net
3:15 am
revenues. we have a balance owed to the customers from some overcollection that we are refunding and that it is represented in that revenue. >> the other question was, demand projections and the connection with capital investment. i think they are very different by enterprise. i don't know if mr. carlin -- this might be a discussion for later, but the water enterprise ... let me do my best effort here. in the case of the water enterprise, we need to build --
3:16 am
we have wholesale commitments that are not necessarily representative of the demands that are currently -- that our wholesale customers currently buy from us. we need to develop supplies in order to meet some commitments. on the wastewater side, we have not just sanitary flow, but stormwater runoff that we have to build to meet demand for. in the case of the power enterprise, that is probably one where we really are -- we really have been trying to meet demand, you know, and being in or out of sync has some impact. acting general manager? >> water aside, we have to go through a process every five
3:17 am
years where we have to sync sink up our demands projected on growth, new growth in the service area, each of our wholesale customers has to do the same sort of plan. we aggregate that up and that helps us project what our demands will be in the future going up. as most of you know, some of our demand projections have been off for a variety of reasons and we actually, in the past couple of years, have ratcheted them down the past couple of years. that is not a great answer, you know, because it is more complicated than that, but it goes hand-in-hand that way. >> we are trying to adjust how we are making this investment. it makes it part of the thinking process that we are going through. >> absolutely. one of the other thing this is we do go through a rate exercise we will do that very shortly.
3:18 am
you're decoupling question is a good one that we can address as we go through that process. >> we have been in a four year rate study -- we have been moving toward some level of fixed charge. we have been a highly volumetric agency. we have been moving prudently to be a little less exposed. you still have an incentive to conserve. >> i want to know, san francisco is not the only utility that is like that. it is a very common practice in water utilities to be dependent on a volumetric charge. i am wondering, if it might be something worth looking into or more explorer to make sure we can recover the cost of our fixed infrastructure that is dependent on infrastructure and
3:19 am
be able to also face the storms that we see once in a while. >> great. and your comments on affordability are extremely well -- sort of -- it is an effort the commission and staff is very engaged in and would welcome any input, additional input help and consideration. we have really phenomenal working team and we had been engaging not just with our organization, but nationwide to look at new ways of thinking about affordability and reform that would be required with the most vulnerable customers.
3:20 am
>> thank you. >> any other comments or questions? >> thank you. great presentation and great questions coming out. just a few quick things. one, i want to request a future presentation. i am glad that we had the resource to identify the other program. we have had probably one of the most robust programs that i am aware of in the public sector and that has been true for some time. that said, we also have challenges that we need to beef that effort up. i would like some discussion in a future meeting about how you see that going and what ways
3:21 am
that might change or expand. i am sure it is a very small -- i'm just curious, with clean power s.f., the consumption estimates, you did look at the electrification of vehicles. do you have any estimate there for the effect of moving from natural gas to electricity in the new buildings? >> i will have to punch that to my team or a.g.m. hill. >> i am christina cordero, director of financial planning. can you all hear me okay? >> yes. >> thank you. i am taking notes and some of the questions that we can dive more deeply and circle back to.
3:22 am
i am unable to answer was some information that i have right now. >> i would expect it would be smaller. i am curious what it would look like going forward. i will ask more substantive question. looking at the overall financial fixing of the enterprise, it will project the lowest coverage ratios as the water enterprise. on the other hand, we have good bond ratings, what is your thinking about that issue? >> the water enterprise is a very leveraged enterprise. that is because we made a very responsible capital investment
3:23 am
to ensure its sustainability. there is -- there are some trade-offs. when you're in a capital expensive part of the life cycle of the utility, you expect to have coverage that is maybe lower then steady states. i also think one of the most important elements for us that our wholesale contract, the feature of our wholesale contract is that they are part of what makes coverage lower on a current basis. this is a bit of inside baseball , but the nature of that contract doesn't provide for current coverage. so we will, just by necessity
3:24 am
have a lower metric. it is such a broad and diverse -- elective lee, we have a broad and diverse service area that the degree of leverage is we keep do not have any concerns regarding the water enterprise. >> anybody else? >> thank you for all the work. i had all questions reviewing these and you answered all of them. i have one really basic question you have schedules, not in your presentation, but in the packages that you gave us, and i am not sure how to read them because the very first column -- for the very first numbers is
3:25 am
the approved project budget and then there is the 10 year appropriation and there's a number of paces where there is an approved budget. does that mean we have already appropriated that or will it pass -- happen past the 10 years >> all of the above. let's move to slide 50. i don't know if brad and lee have a slide 50 that you can share. is anything showing up? >> okay. so here is a great question, commissioner harrington. we showed this about a year ago and i think -- my team wanted to included in the presentation, but it raised so many questions.
3:26 am
i said, let's use it as -- [indiscernible] -- what we have here is the water and wastewater and the clean capital plan. and there's -- [indiscernible] -- over time and by prior appropriation, the two year budget appropriation, were in this case, the one year budget appropriation, and it is outlined in black, and then the remaining amount that is in the 10 year plan which is in the orange. let me say this a different way. let's look at wastewater.
3:27 am
>> for example, it's land reuse. $85 million which is the approved budget. there is nothing after that. it could mean it is already appropriated and it may not have been spent. >> yes. >> are you looking at the two year budget? >> i am looking at your tenure capital plan summary. it doesn't necessarily add up to what you have on the slides that you have up on the screen. there is all kinds of roads that have an approved budget and nothing else. i am trying to figure out what that means. >> it means it has all been appropriated. >> and we don't know from these schedules where it has been spent or portions have been spent.
3:28 am
i assume when it is closed off it falls out? >> c.f.o., charles, maybe you can answer this? >> good afternoon. one of the changes we made with the last update was we wanted to reflect all of the outstanding projects. not those that we are requesting for appropriation. it is a project that has already been appropriated but not receiving any additional appropriation. in other words, as a part of resource conversation, we could say, do we really need to continue with that project dollar or could we use that in the future for another project purpose down the road? that is why we have included it there. >> that is great and helpful. but without knowing it has been spent you can't answer that last question. i can see there is money
3:29 am
appropriated. i can't tell if it is all gone or not or it could be reused. maybe in the future there is some way to throw in what has been spent and then we know what is left. you want to rearrange that? >> the second question, and again, it's relatively small, i notice you have money going in for replacement. a few million dollars a year. do we think that lines are a health problem in san francisco and that we are trying to fix? or is it just it's in pieces that happen every year? >> i think a.g.m. ritchie... >> steve ritchie, assistant general manager for water. it's a little of both. we have stumbled across a line once or twice a year. we also have, in this system of 180,000, we have about 5,000
3:30 am
that are unknown materials, and so we have set aside money to make sure that we can deal with those if we find lead in them. it's a very small percentage of the number of services that we have out there, but there is a possibility that we are going to find lead there. so we have assumed on the high side that we will find more than we would like to find and hopefully we are wrong and that we find out the unknowns turn -- [indiscernible] -- of lead. >> we are lucky that we have such a small problem. i am wondering if we need to be more proactive or whether we are just reacting. think about whether we should be trying to speed that up if it is a real health issue. sorry, i can't hear you.
3:31 am
you have fallen off the map. >> i have two different buttons. i got the right one. in any event, we have a dedicated group of folks working on that. we may add more to it to be sure we think it is not a large problem, but as we find more evidence, we may accelerate. >> that would be great. >> you said that you are monitoring it. so when you're monitoring, you are looking for it or are you just stumbling across it? >> we are looking for them. we know where those 5,000 unknowns are and we are systematically going and looking and seeing what they are made out of. >> what does it look like for a timeline? do you have a projection? >> we believe this will take us
3:32 am
a few years to take care of. i don't recall the numbers on the -- off the top of my head. we have folks dedicated to investigate those lines and determine what they are made out of. >> thank you. >> on the wastewater green infrastructure project, if you could add those to our discussion on our workshop on green infrastructure. there's a lot of them that seem fairly mushy in the description. it would be great to see more of what they are going to be doing. it doesn't seem quite to nail down some of the other projects. it would be great to add that to the green infrastructure discussion. >> will do. >> for future, after we finish
3:33 am
with the digesters on the work on the southeast plant, the next big thing is this channel reliability project of $500 million. that is supposed to start kicking off in the 22 or 23 period. before we get to that, i would love to have a real discussion about whether that project is needed. it has always struck me as a very ottawa way to spend another half a billion dollars when there so many sealevel rises in that same area. i would love to see if that will answer all the problems. i'm not changing it for today, but we could talk about it again don't -- let's bring back some conversation about that. i appreciate all your answers earlier. they were good.
3:34 am
>> i am assuming they all heard me. >> i got it. thank you. >> commissioners, any further discussion? on this, on these items? thank you very much for you and your staff. it has been a good exercise and very informative. thank you. madam secretary, will you open up item 10 for public comment, please? >> on item 10, members of the public who wish to make public comment specifically on item 10, you can dial in.
3:35 am
to raise your hand to speak, press star three. >> do we have any callers? >> there are two callers, i'm sorry, one caller. all right, you have two minutes to speak to item number 10. >> good afternoon, commissioners i heard the speech, and again, i'm sorry to say that this was a theatrical show again. i want to specifically address the comments regarding racial equity. ladies and gentlemen, racial equity is not a gift. what you are proposing here and
3:36 am
what is being proposed here is another gatekeeper for $3 million and adding 10 more people. i want to remind you of christmas day. you promoted them to another physician. let me go on the record with you again. i sent an e-mail to you. this individual -- i decide which word that i put on these jobs. this is your racial equity. [indiscernible]
3:37 am
look at the entire city. this is a class action lawsuit by african-american employees. some of them work for the p.u.c. there is another class action lawsuit for $27 billion for the development that was built on a superfund. that is the product of brown and kelly. in addition to mohammed and his girlfriend. there is no racial equity if the gangs in the city are in control >> thank you, your time has expired. madam secretary, there are no more speakers. >> that closes public comment on item 10. [indiscernible]
3:38 am
>> may i get a motion and a second to adopt item 10? >> i will move. >> thank you. >> may i have a second? >> thank you. >> thank you. it has been moved and seconded. roll call. [roll call] >> thank you. it has been approved. closing public comment -- open public comment for item 11, please. >> members of the public who wish to make public comment specifically on item 11, the operating and programmatic budget, you can dial in. to raise your hand to speak, press star three.
3:39 am
>> do we have any callers? or ? >> there is one in the queue. here line is open. you have two minutes to speak to item 11. >> it's me again. my comment is related to this item, specifically on references that are related to workforce development that is part of the budget. there is no workforce development. the good consultant, the good people that have worked on these programs -- [indiscernible] -- there are binders sitting in the controller's office documenting the fax that the p.u.c. told consultant, and i quote, "they are here to re address the issue." none of the individuals, and i will repeat, i am on record,
3:40 am
none of the individuals that went towards the development program paid for the p.u.c. and the public money. they have not got a job. the consultant went out of her way. she is also an african-american, by the way. they went out of their way to make sure they get something and she was denied. and she was eventually kicked off from her contract. president maxwell, i am begging you. this is getting way too much for this to continue. it is degrading for everyone. i am colourblind. i don't care what people are in front of me, as long as they're qualified to do the work. i will tell you this that the p.u.c. is full of garbage. staff don't have a clue what they are doing. yet, they sit on it. all she cares about is --
3:41 am
[indiscernible] -- they will never get a job. okay? this is the p.u.c. i want you to walk through the city right now in san francisco. it is a ghost town. companies are leaving by the dozens. i am not imagining, but you guys need to wake up because you were the body that is sitting here. >> thank you. your time has expired. one more caller has joined the queue. you have two minutes to comment on item number 11. >> thank you for the two minutes commissioners, today is a bad day. [indiscernible]
3:42 am
as soon as the task force produced a report, what the sfpuc did was they gave all the people on the task force a commendation. [indiscernible] corruption of the highest order. when you see a budget in the billions, remember, the project started with a budget of 6 million. it is now nearing 12 billion. it won't be surprising if we land with 20 billion.
3:43 am
it is downstairs money. [indiscernible] we have one of the commissioners who was a controller before. we understand the machine. we understand the corruption. >> thank you, caller. your time has expired. there are no more callers in the queue. >> that closes public comment on item 11. >> thank you. may i have a motion and a second to adopt item 11.
3:44 am
>> i will move it. >> may i have a second? >> it has been moved and seconded. madam secretary, roll call, please. [roll call] >> you have five eye. >> madam clerk, public comment on item 12, please. >> members of the public who wish to make public comment on item 12, the 10 year capital plan, you can dial in. to speak, press star three. do we have any callers? >> there is one in the queue. >> thank you. >> your line is open.
3:45 am
you have two minutes to comment on item 12. >> i am with the coalition of san francisco neighbourhoods speaking on my own behalf. as i stated during yesterday's capital planning committee meeting, i'm urging the p.u.c. to reassess the maintenance for the sunset reservoir. only north facing has been seismically retrofitted. in years eight and nine of the p.u.c. 10 year capital plan, it only calls for the risk assessment, not a retrofit. even the risk assessment funding has been significantly reduced. if south facing should rupture, substantial area of district district four would be wiped down.
3:46 am
[indiscernible] it would affect its ability to provide drinking water to his customers. the p.u.c. also is proposing to use drinking water to put out catastrophic fires on the west side. finally, how does the p.u.c. plan to provide water for the half-million additional san francisco residents that the s.f. planning department department is proposing? thank you. thank you for your comments. there are no more callers in the queue.
3:47 am
>> thank you. public comment on item 12 is closed. may i have a motion? >> motion. >> it has been moved and seconded. roll call, please. [roll call] you have five eye. >> thank you. public comment on item 13, please. >> members of the public who wish to make public comment specifically on item 13, you can dial in to raise your hand to speak, press star three. >> do we have any callers? >> there are three callers in the queue.
3:48 am
>> you have two minutes. >> thank you. by the way,. [indiscernible] -- this is 412 and 13 combined. i want to bring your attention to the same issues. racial equity, and open government. i want the p.u.c. to review the donations that are being made to specific districts in san francisco by employees. whether it is benjamin poole or some of the clowns that are sitting on this racial equity. ladies and gentlemen, a public employee is not in a position to engage in fundraising and donations to politicians. they have one reason to be there at the p.u.c.
3:49 am
there are employee his, and not even managers. i am begging you to please explain to me why is an employee of the p.u.c., more than one who is engaged in political action and donations to politicians? there is no reason. this is what i am saying. these are gatekeepers. the racial equity program as a gatekeeper program that ensures who gets in and who does not get in. if you are not convinced about what i'm saying, look at the f.b.i. and who has been arrested and why did they arrest them. you have a general manager who directed e-mails and also wants to go -- [indiscernible] -- go by -- [indiscernible] -- from china. explained to me, there are no pump vendors infant san francisco or the bay area? area? are you kidding me?
3:50 am
this is your gatekeeper and you are spending to $.9 million to get them more time to play the games that they have been playing. do something. come on, guys. >> thank you for your comments. next caller, your line is open. you have two minutes. >> hello. i appreciate your presentation. and you saw from the water enterprise that levels are projected to remain flat over the next 10 years. that is very different information then we hear other places. it's a pretty big difference. demand right now is 198. it is projecting 265.
3:51 am
up to a 30% difference in projections. i will hope you will explore that at some point. but the urban management water plans will have higher projections and there will likely be over projections. there is a poor track record. projections were at the demand of 194 by 2018, with the actual is 141 so 32% off. they will still be off. and a big problem was, i mentioned it earlier, there is a difference between the individual supply guarantee and demand projections. there is not an incentive for the agencies to give up because they don't have to pay for water they are not using. yet we hear from them that we have an obligation to provide 184, at the same time, they
3:52 am
don't want you to overbill the system because they pay for two thirds of it. we all need to sit down and come to a resolution on that issue. another thing you will hear in the plan is the narrative of 50% rationing in year three of a drought. that number drives me crazy. it is arbitrary because there are lots of different inputs that will change that demand, length of drought, supplies, and -- >> your time has expired. next caller. you have two minutes to comment on item 13. >> commissioners, you know, i think there are two or three people in the line. they should be given three minutes because peter is astute. to cut him off after two minutes , you deprive somebody who has the right type of information from sharing that
3:53 am
information, which you all know is needed. the reason i am calling his earlier i heard about a woman talking about the website. we need to make this website available to university students so they can give input on all the stuff that they are talking about. we have some good universities in the bay area and beyond the bay area and this university -- these university students should be playing a role in many of the deliberations. some of the comments that you make is smith so many in. i have to mind my language, i have to bite my tongue because we are not moving further. we are moving backwards.
3:54 am
i represent the first people of san francisco. i don't say that too many times but you all have no respect whatsoever for the first people. you guys have data, but you don't have wisdom. thank you very much. >> thank you for your comments. madam secretary, there are normal callers in the queue. >> thank you. that closes public comment on item 13. may i have a motion and a second to approve item 13? >> so moved. >> moved and seconded. madam secretary, roll call, please. [roll call]
3:55 am
>> you have five eye. >> thank you. it has been approved. next item, please. >> your next item is item 14, accept contract number ww 556 decreasing the contract amount by $600 and increasing the contract duration by 90 consecutive calendar days and authorized final payment to the contractor. >> good afternoon, president maxwell and commissioners commissioners. this item is to request the commission approve the final modification of the construction contract to decrease the dollar value and for the duration and to accept all of the work performed by the construction company. the notice to proceed by issues
3:56 am
in march of 2013 and construction completion was at the end of calendar year 1917. however, final construction and close our significantly delayed due to d.b.i. permitting issues, as well as mechanical and electrical equipment not meeting operational testing requirements it was kind of similar to the pump station on the water system improvement program and trying to get the electrical and mechanical equipment to operate properly. it proved to be a challenge and took longer than anticipated. >> any questions? commissioner harrington? >> one point. i know we are sometimes critical when you don't meet the requirements. thank you and thank you to the folks working on this project.
3:57 am
>> thank you. any further discussion? madam secretary, public comment, please. >> members of the public who wish to make two minutes of public comment specifically on item 14 can dial in. to raise your hand to speak, press start three. >> mr. moderator, do we have any callers? >> madam secretary, there are two callers in the queue. your line is open, first caller. >> commissioners, i want to remind you that the southeast water pollution control plant chemical system relocation and
3:58 am
facility upgrade is very important to the community. some of you should visit the adjacent area and smell this for yourself. this has been going on for a long time. by this time, they looked newer commissioner should remember that when you are around 2002, money was set aside to address properly the clean water known as the water system improvement project but the wastewater, also bonds, paid by the public. the san francisco public utilities commission chose to
3:59 am
address early the clean water and named it a fancy name. [please stand by] i do want to
4:00 am
attention the preferential treatment on item 9e. if you look at the growth, this company had a huge contract and not only they were able to reach the goal, but they exceeded it. now let me go back to the elite company and see how c. and d. deal with this. by the way, they are being paid by the p.u.c. the original contract was for 132, got reduced to 4.1% and the claim on the report is that the p.u.c. reduced the contract
4:01 am
value. that is such a lie. i'll tell you why. i looked up the company hernandez engineering. they have traffic control and they could have done a lot of other work besides the traffic control. if they were me not reaching those requirements, i would be on a pole at the p.u.c. the c and d with the explicit support from within the p.u.c. are among these companies allowing them to get away with it. one company is connected to the establishment and the other in front of you for item 14 has no connection whatsoever. this is an unfair treatment. this is your racial equity. shame on you. >> thank you for your comments,
4:02 am
madam secretary, there are no more caller in the queue. >> thank you, item 14 is closed. madam president, you are muted. >> may i have a motion and second. >> motion. >> second. >> thank you, roll call please. [roll call] >> thank you, you have five ayes. >> thank you. next item please. >> madam president, item 15 has been removed from the agenda and will not be heard today as
4:03 am
announced at the beginning of the meeting. your next item of business is item 16, approve increase of 1,500,000 to the contract cost contingency and retroactive increase of 390 calendar days to the duration contingency for contract wd-2687r. this is presented by how. >> commissioners, i wanted to point out that the contract duration was to end the last quarter of calendar year 2020 on october 21, 2020. the project team failed to request commission approval to increase the contract duration in a timely manner. the contractor has continued to
4:04 am
work on the pump station however, the p.u.c. has not been making any payments for work performed since the contract duration has been exceeded. >> so did they continue out of the kindness of their heart? how does all that happen? >> they continued and our construction management team is still negotiating with the contractor as to whether they get delay days or whether, you know, we pay them for those delay days or whether we don't. so they're still in negotiation at this point while the work is continuing. >> thank you very much. commissioners, any questions or comments on this -- commissioner paulson? >> sure, what are we doing here?
4:05 am
>> we're asking to extend the contract duration contingency, add days to the duration and also increase the cost contingency. >> i got it. so we're going to public comment before motions, correct? okay. thank you madam president. >> thank you. are there public comments on this item? >> members of the public who wish to make public comment specifically on 16 dial
4:06 am
1-415-655-0001. do we have any callers? >> madam secretary, there are three callers in the queue. you have 2 minutes to comment on item number 16. >> commissioners, again, i want to bring to your attention the open government put here in front of us today. let's look at the document that has been posted on the p.u.c. related to item 16. look at it again. what is it missing? the tracker record again. this contract for whatever reason that c & d and kathy how opted to did not include information on the participation on this contract. please tell me why that information is in the best interest of small firms that are working in san francisco. that information is not available in this meeting.
4:07 am
you're making a decision here without getting the entire set up information that if i were siting in front of you, i would ask where is that information? why is it not shown? why is it that the staff has decided not to share it with you? that's relevant information and whatever decision you make, besides the weird argument that i just heard from kathy how of a contractor doing work without having the board approval. this is way beyond any normal way of doing business. you guys need to ask for it, publish it, let everybody see it before you make a decision. thank you. >> thank you for your comments. next caller, your line is open. you have two minutes to comment on item 16.
4:08 am
>> commissioners, somebody especially like ali who is a contractor, who is somebody that understands the nuances and explains to y'all how you commissioners must look at some elements when the agenda is printed. i hope in the future we show these. i hope in the future that we don't accept an agenda that has some silly excuses like kathy how gave. she should be ashamed of herself.
4:09 am
what if there was a mishap, what if there was a casualty why the contractor is doing something on his own accord and is not following protocol? what are the standards? normally i just listen. i don't comment. today i am commenting to make a point. listen to the measly two minutes you give the public and then you know, whenever we have the next meeting, it's the same bull shit. we are fed up, more in this pandemic. we are fed up. that's money spent without any standards. thank you very much. >> thank you for your comments. next caller, your line is open.
4:10 am
you have two minutes to comment on item 16. >> coalition for san francisco neighborhoods speaking on my own behalf. based on information from a high ranking, retired firefighter, in 2011 a pumping station number 2 was fully functioning. it only needed four new diesel engines and to have accumulated mud cleaned out of the saltwater intake tunnel into the bay. this project is taking this amount of time and money is characterized as being grossly incompetent. from my own perspective, taking four years and $22 million for this project could trigger an independent audit. thank you. >> thank you for your comments. madam secretary, there are no more callers in the queue. >> thank you, that closes public
4:11 am
comment on item 16. any questions or comments on this item? may i have a motion and second? >> so i will make a motion and i will make a motion because i am feeling that this is, you know, another piece that the p.u.c. staff has put together with intelligence and competence so i'm going to make a motion to move this like i have with a lot of other things together. >> thank you. now a second please. >> i'll second. >> thank you. it's been moved and seconded. roll call vote please. [roll call] >> we have five ayes. >> thank you, next item please.
4:12 am
>> your next order of business is item 17, adopt a competitive selection process communications policy. it's presented by how. >> commissioners i have kendra cox with our contract administration bureau and she will talk -- speak to this item. kendra. >> sorry, i'm not sure if you can hear me. can you hear me now? sorry about that. good evening commissioners. my name is kendra cox and i'm a manager in the contract administration bureau. the sfpuc award most contracts
4:13 am
following a competitive selection process as required by law. the sfpuc adopted practices to assure that every competitive election process is managed in a fair, impartial, and transparent manner. on july 11, 2021, the controllers office issued a preliminary assessment of san francisco commission and board ethical standards for awarding contracts as part of their ongoing public integrity review stemming from allegations in the federal complaint against the former public works director. although the report is focused on airport commission in particular, it also made general recommendations for all city departments and boards. one of the recommendations was that city departments should state clearly and in writing the restrictions on communication by and with potential proposers for
4:14 am
city contracts. the proposed competitive selection process communications policy would codify many practices, the sfpuc already has in place to ensure no party receives selected assistance or a competitive advantage to obtain award of a sfpuc contract. this policy restricts city commissioners and employees from engaging in communication with a potential proposer that could constitute to confer competitive advantage. it also makes clear that any proposer that offers selective assistance from a city commissioner or employee may be disqualified all together. the consultants and contractors must reflect the exercise of public duties in a manner that maintains the integrity of the
4:15 am
competitive process by adopting this competitive adoption process policy, the sfpuc seeks to assure that no party receives assistance to obtain the s dpshgs -- sfpuc contract. thank you. >> commissioners i wanted to make one clarification. kendra had stated a date of july 2021, i think she went to say january 2021. >> thank you kathy, that is correct. i appreciate the update. >> all right, any further corrections or comments? mr. paulson? >> nope. >> thank you then public comment on this item?
4:16 am
>> thank you, public comment on this item. >> members of the public who wish to make 2 minutes of public comment on item 17, dial 1-415-655-0001, meeting id1463590630, pound, pound. to request to speak, press star 3. do we have any callers? >> madam secretary, there are two callers in the queue. caller, your line is open, item 17. >> commissioners what i want to say is some time ago this issue came up and i mentioned that i find holland and tracy coaching those who selected the
4:17 am
contractors. now you have one commissioner rubber stamping and the other commissioner who chronologically doesn't know what has been happening all this time second it. that's going to come to haunt you. this matter, what you are discussing today came about only because of the federal bureau of investigation. y'all are paying attention to this deliberation. you can't deny when you know, you second when somebody opposes and you know that it's wrong. it's wrong because you don't have all the facts. they have been coaching and then they choose the contractors and
4:18 am
everything was okay before. holland doesn't need to -- he shouldn't have resigned. now he is running his own company, open defiance. open defiance. that's called a machine. that's called the machine. when we advocates, we are not paid. so we speak the truth. i want to get it up their ass, really. bull shit. >> thank you caller. next caller. your line is open, you have two
4:19 am
minutes, comment on item 17. >> good afternoon commissioners. first and foremost i would like to thank you for moving the previous item. it's about time that you guys start taking action. in front of the courageous action by staff and the gang, what i'm hearing today from kendra is a kool-aid. you talk about communication policy in effect. i don't know if she is kidding herself or trying to kid everyone else. let me give you an example of how they do business. 45/25. they issue the contract, specifically with out -- two out of the three. they exclude people like myself from participating because i don't have the license they're
4:20 am
asking for, yet i do have the license that's required by state law. that's their communication policy. last month, the design contract that was sitting in front of you for approval, this election panel for whatever reason they qualified an l.v.e., an elite l.v.e., yet the protest identified and said that this company could not even meet the qualifications, yet you have four panel members, all p.u.c. employees qualify them. i want to bring to your attention another similar example. the plant that was procured by the board of san francisco. the winning company had 74/79 if i recall, in 2015, by qualified professional engineers supposedly. we actually recorded this company who is under federal
4:21 am
prosecution as we speak right now. so the wiretap was clear. they actually wiretapped the owners of the company clearly stating and would not qualify. the issue is here your selection panel. mohammed, kelly -- by the way let me go on the record here -- >> sorry caller, your time has expired. madam secretary, there are no more callers in the queue. >> thank you, public comment on item 17 is closed. commissioner harrington. >> thank you president maxwell. obviously we should be passing this. my recollection is that to avoid some of the selective assistance, we opened it so anyone would have access to get assistance. i understand with covid that may have been closed. so if someone wants to have access to the event, or they
4:22 am
don't understand how we're doing things, is there an easy way for them to engage so they won't have preferred assistance? >> go ahead kendra. >> i was going to inform the commissioners that while the contract center is not open for physical aid during the pandemic, there is still numbers and e-mails and staff working from the contract assistance center that are working to assist contractors looking for assistance, if not selective assistance. i would be happy to provide that information when you're looking for it. >> great. >> thank you. any further comments or questions? seeing none, then may i get a motion and second on this item please? >> i'll make a motion.
4:23 am
this is commissioner paulson. >> thank you. >> second. >> thank you. roll call please. [roll call] >> we have five ayes. >> thank you, next item please. >> item 18, approve a california community power joint powers agency agreement and authorize cleanpowersf participation in the j.p.a. with an annual cost not to exceed $50,000 and authorize the general manager to seek approval from the board of supervisors to execute the agreement. >> can you hear me? >> yes. >> welcome commissioners. my name is michael hines. i'm response for the
4:24 am
cleanpowersf program. you have a resolution that would approve membership in the joint powers authority or agency that has been developed by a group of northern and central california community choice aggregation programs. next slide please. it's called the california communities power agency. it's being called cc power for short. cleanpowersf has worked with other programs to form cc power so we may leverage our combined buying power to acquire energy supply and jointly develop new programs and services for our customers. joint powers agencies like cc power are common in california's public power sector. for example, the northern california power agency is a
4:25 am
joint power agency consisting of 16 public utility members in northern california providing wholesale power and energy services to its members for more than 50 years. the southern california public power authority has provided similar services to public power utilities since 1980. there is a long history of joint power agencies like cc power operating for the benefit of public power rate payers right here in california. with those benefits in mind, cc power's initial focus will be on projects that support grid reliability. next slide please. the agencies from northern and central california identified here have been working together to form cc power. all of the others have received approval and executed the j.p.a. agreement. if approved by this commission
4:26 am
and the board of supervisors, we will seek approval from the other members to have cleanpowersf join as the ninth member of cc power. next slide please. by joining cc power, cleanpowersf would have an opportunity but not an obligation to participate in larger projects that may not otherwise be possible or cost effective for cleanpowersf to pursue alone. for example, cleanpowersf's integrated resource plan, which the commission adopted in august of last year calls for cleanpowersf to procure 15 megawatts of long duration energy storage by 2026. it's an emerging technology that would meet the needs of our power grid, which is increasingly supplied by renewable energy sources like solar and wind. by joining sources with other
4:27 am
c.c.a.s, cleanpowersf can develop a larger project and lower cost than if we went alone, providing financial benefits to our rate payers. for emerging technologies like long duration energy storage, they provide a structure for sharing the risks of deploying new technologies with other c.c.a. programs. it would allow them to collaboration with other c.c.a.s to develop other programs. a group of c.c.a.s to collaborate on the development or procurement of a joint billing system or a customer relationship management system. there are also new programs that may be more appropriately regional. importantly, membership and c.c. power would allow cleanpowersf a
4:28 am
great opportunity to collaborate with other c.c.a. programs but does not commit cleanpowersf to purchase any services or participate in any programs. this will be made in the future subject to approval as c.c. power identifies such opportunities. next slide please. project participation will require additional agreements for the sharing of costs, risks and benefits among participating members. it will be each member's choice whether to participate in the project. cleanpowersf is working with
4:29 am
other members to promote san francisco's environmental and social values in the project c.c. power under takes. the resolution before you indicates that sfpuc's staff should work with our other c.c. power's members to develop policies and guidelines for the j.p.a. to procure products and services in a manner that promotes san francisco's and the sfpuc's environmental and social values. becoming a member of c.c. power will give us a seat at the table to do just that. next slide please. as for scheduling next steps, today is february 9th. if the commission approves, our next step will be board of supervisors approval, which we're hoping to receive by early
4:30 am
march. we will execute the j.p.a. agreement if approved by two-thirds of the c.c. power membership. next slide please. that concludes my presentation and i'm happy to answer any questions you may have. >> any questions or comments colleagues? >> paulson. am i in the queue? >> yes, commissioner paulson. >> i'm going to support this. the reason for supporting this is because this gets us into different counties, not just san francisco. we are regional organization based in san francisco and there have been places where we have extended some of this stuff that we have done where people have not been paid well and people have not been tak taken cared o
4:31 am
because of certain contracts that have been put together. so, i think that the pieces that were put into the resolution are satisfactory to me and so therefore i'm going to support that because i really do believe that our values should be extended with another ability to connect with the rest of northern california. >> thank you. i concur. any further comments? >> i have a quick question. i also want to agree with what commissioner paulson said. so, the $50,000 you mentioned. i know a little bit about the california power, but basically everybody's fees are similar or
4:32 am
sort of depends on the size of the organization? i'm just wondering how those numbers are calculated and then basically are we going to depend on them to do the negotiation for the power purchase or i'm just wondering how that process is going to work. also, one other question i have for you is the clean energy process, it can be different depending on what is available and i'm wondering -- i'm wondering if potentially some of the energy that we generate can be part of that mix as well. >> thank you commissioner. i think i got all those down. starting from the top on the fees, so the c.c. power
4:33 am
membership agreement establishes the reimbursement or recovery contributions, i should say, to the ongoing operating costs on a one member, one share basis. so if there are nine members with cleanpowersf joining, we're responsible for one ninth of the operating cost of the organization. these operating costs are expected to be fairly low, especially in the near term. we are -- the $50,000 figure, you can think of as a not to exceed value that we've estimated. we're actually expecting the operating cost will be lower than that. we're anticipating if membership is approved, that over the next year cleanpowersf will be on the order of $20,000. we figured the 50,000, just
4:34 am
because we're not exactly sure if c.c. power's work increases. those costs may go up. so we provide a little bit of a buffer there. we still think it's a fairly low cost for a significant benefit to the program. as far as negotiations go, we will have representation in the negotiation of our staff. c.c. power is also going to be hiring consultants to support the organization through negotiations, as well as outside council, but we will have representation of staff and city attorney's office will be working as part of the team in the negotiation process. finally, with respect to the clean energy mix, think of it this way. cleanpowersf is responsible for
4:35 am
managing. to procure from larger projects. that would then would deliver cleanpowersf. then we would get the opportunity to procure and benefit from the economy as it can be achieved by what amounts to 40% of the demand within pg&e's service area. that's about what they represent.
4:36 am
>> that's the only community choice aggregation agency that includes southern california edson area as well. >> thank you.
4:37 am
>> any further comments or questions? seeing none. thank you. i'm really thrilled. i think this is a great way to go and i certainly appreciate our values going forward and i also talked with vanilla who is with the peninsula g.p.a. and i put in some of the same language and the ncef, if i'm not mistaken, just did a work agreement with the union so, project agreement. i think we're in a good space and people are really going in the right direction. so, thank you. madam secretary, public comment on this item, please? >> members of the public who
4:38 am
wish to make two comments of public item on item 18 dial (415)655-0001 and meeting i.d. 146 359 0630 could raise your hand to speak press star 3. do we have any callers? >> there are three callers in the queue. caller, your line it open. >> there is (inaudible) and i'm here to address the (inaudible). while the previous gentleman was making his speech, i looked at the board's report and i made a quick, quick public request from public web sites. here is what i have for you. i do work $29 million participation on this contract.
4:39 am
and another company i looked them up, they are in san ramone. san ramone. they have roughly about two or three million dollars worth of work. everybody else is within the 100,000 per company. here is another one. another lbu, one of the famous ones connected to the family business licensed in the state of california. -- hello? can you hear me? >> yes. >> i got cut off for whatever reason. can i starts again. >> you can't get cut off. >> you continue. i paused your time. >> this is not the item we're on. >> yes, it is. my apologies. mr. harrington, i apologize. i made a mistake. sorry. >> thank you. >> thank you.
4:40 am
>> next caller, your line is open. two minutes to comment on item 18. >> commissioners, way back in 2002, we joined the cca and one of our first projects was providing solar to 58 homes in the bayview. we got no support from the sfpuc. in fact, the sfpuc initially was reluctant to go away with clean power. you have to be sincere. now, with all the comments the gentleman gave you, none of your last question about marketing,
4:41 am
none of y'all have a clue about the stacks that is produced the energy. now, we need energy. we're not going to get pg&e is not the enemy because we go to this point power agency relationships and all the most static they'll get from pg&e. now, we shouldn't be afraid of
4:42 am
pg&e. we should be strong enough to know what we're doing and we're not strong enough with what we're doing so the next time we discuss this, i'll be getting the data, like when you deal with the -- >> thank you, caller. your time is expired. your line is open, you have two minutes to comment on item 18. >> thank you, she and her. this is a very important item. thank you for bringing it back to be your consideration. this is very, very important because i believe in the value
4:43 am
of partnership and collaboration and in order to reach clean energy, no one can really do it alone. utility solar that you can't really get on a small scale because you can combine a lot of the various infrastructure such as the transformers and power lines and the efficiencies of doing contracting and building on a large scale. i think this is reasonable. so, at this ask for a yes vote on this and so we can have help with other this is an agency that will hold meetings that the public can have voices. i ask for your yes vote on this, thank you.
4:44 am
>> clerk: thank you for your comments. madam secretary, there are no more callers in the queue. >> i move approval. >> i'll second that. >> oh my goodness. i didn't even ask and i got it. [laughter] >> any further comments or questions on this item? no? ok. well, i look for approval is there a second. >> we've got one. >> great. >> roll call, please. [roll call vote] >> you have five ayes. >> thank you, next item, please. >> next item is item 19, approve amendment number 4 to contract number ww647r modifying the scope of work and contracting
4:45 am
the amount by 350,000,394,000,000 and contract duration by 693 consecutive calender days presented by agm hal. >> this requested increase includes scope changes to defer two maintenance buildings, remove energy recovery from this contract and also add a new steam generation facility to support the thermo hydrolysis process. the original contract value was used to hire rcmgc contractor and based on cost assessments developed early on at 35% design you pay recall we reported how the project cost assessment towards the end of the design process was significantly higher than budget. and we went through a cost reduction efforts. after working with the cmgc
4:46 am
contractor on construction ability, schedule and cost reduction, the revised construction cost estimate is closer to 1.3 million and the construction duration is close to nine years. we're asking to increase the contract for cost and duration. >> commissioners, any questions or comments on this item? seeing none, public comment, please. >> just a moment. >> i have a question. we went through a lot of discuss about this before. we've had all the explanations before. we can't be off by 40% and two years and $350 million. we can't do that again. our planning cannot be that badly done.
4:47 am
can you add something to that. can you add something to it. where we are where we are, please? i think when this goes back to capital planning when we first developed the budget for the project, there was not much scope definition. to be honest, we didn't know even where the digesters would be located. now that we've located the digesters, away from the homes and closer to the cal train tracks, it requires a lot more extensive geotechnical work, pile foundation work, and so it got a lot more extensive for those reasons. the underground work is extensive and the digesters i think commissioner maxwell, you went for site visits and it's going to be 60 feet below grade and we also are dealing with a very high water table and these investigations were not done at
4:48 am
the time we developed the initial budget. >> i have a question. just a quick question. so, the location, was there a reason it was moved? was it the internal decision to move it or external pressure to move it? just out of curiosity. >> we had a lot of community meetings and outreach and it was more of a, let's try to move these digesters away from the residential neighborhood as far from the residential neighborhood as we comment just because they're so massive. >> thank you. >> i was on the board at the time of environmental justice and it was also a better location because things were going to be more central and it
4:49 am
was more efficient with army street on cesar chavez and making it a better site and more holistic. any comments or questions? >> so, supervisor, i shouldn't say supervisor, i mean, president maxwell, was all those territorial/geographical. the space is given, correct. forget about the numbers, the space is where it has to be. there's inform question. >> if you remember the digesters were across the street on the other side of the street. >> right. >> and so kathy you can speak to
4:50 am
this better. it was thought it would be a better use of space to move them and have all the operations on one side of the street. >> the other thing, commissioner paulson, the plant has to continue operating and so we were struggling with where to put the digester and as it still needed to be operational and the plant needed to operate 24/7 and so, we did go through a long process to acquire the central shops location. originally we thought the puc owned central shops property. when the wastewater enterprise we thought it included the location it did not so we had to purchase that so that was and
4:51 am
the system. >> that's helpful to remind us. thank you. >> so we have to purchase that spot and did we have to move anyone else and build other facilities? >> we also got the asphalt -- we had to get the asphalt plant site cell. so it isn't until after the new digester facility is up, we can look if we demolish shows and what do we do with that space? >> i have one other question president maxwell. so, i was wondering, i was surprised to see the energy recovery was eliminated from this project so the long-term saving of that was not covering capital costs or i'm just trying
4:52 am
to better understand the logic. i know there was some explanation in the documents on sort of relying on natural gas and trying sort of switch to the way we want to do this. >> so i do have the project manager, caro line chiu who can speak on the energy recovery a little bit more and hopefully answer your questions. so caro line chiu is online. >> project manager, yes, you asked a great question. i think during the cost reduction effort, you know, we looked at everything, right and to kind of confirm and one thing this came up was in consideration that what we were doing with the energy recovery facility, by using the digester gas and converting it to heat, steam and power wasn't the highest value we could get for this digester gas. so, with that, we thought about what to do with our bio gas and
4:53 am
now we're looking at building what we've been calling a bio gas utilization facility and as i think it noted in the agenda item, basically turning this digester gas into a renewable natural gas. when we looked at it, it had benefits not just potentially saving capital dollars but provided potential, a revenue source for the puc by commodity, selling it as a commodity but also the state and federal incentives you could collect off of this renewable natural gas. so we're looking at it not just from a financial benefit but it really had some long-term sustainable benefits not just for the puc but probably greater neighborhood or greater community or maybe throughout san francisco if we go that far. that isn't a part of this contract under the cmgc and we respect to, like i said, we'll
4:54 am
still evaluating with it and working with our finance people to look at this from a financial model and really do a deep dive on it. our plan is to come back in front of you, commissioners with that update and any approval that needs to come from it and i should also mention that we just released a request for interest to possible partners out there to really kind of to say is anyone interested in a public-private partnership so it will give us information if this approach is something that what we -- really to evaluate what we hope is potential leon paper, right, and theory is really something that we can take advantage of in our future. >> that is your separate
4:55 am
project? >> it will be. it's not a part of this cmdc contract at all. >> got it, thank you. >> commissioner paulson. >> i'm going to say that the moment someone says private public "power & politics" then that raises red flags meaning like are we going to as a city and county as the commission going to be able to make sure that we get the best bang for the buck because putting it out there for private enterprises, not something that we like. >> understood. >> thank you. >> any further comments or questions? thank you helen, thank you very much and thank you kathy howell. all right. public comment on this item, please? >> members of the public who wish to make two minutes of
4:56 am
public comment on item 19 dial (415)655-0001 and meeting id146 359 0630-pound pound. to raise your hand to specific, press star 3. do we have any callers? >> there are three callers in the queue. >> thank you. >> your line is open and you have two minutes to comment on item 19. >> thank you, commissioners. my name is alex lance burg and i tried raising my hand for 18 and i was unsuccessful so i hope you will bear with me for a couple of minutes. i want to thank the commission for supporting the amendment and i apologize for the -- i did want to raise a point and it's something that president maxwell and commissioner paulson tried to address in this over the past
4:57 am
couple of weeks, it was a great concern to myself. i should (inaudible) as it was a great deal for myself and my colleagues that an initiative such as this, while youthful and generally a good idea was able to advance so far ahead to the commission and to all the other cca boards of directors without any involvement from the directors themselves and this was brought to commissions as a (inaudible). the decision makers were jammed and basically told either take it or leave it and that really, our best opportunity to make changes in the governing structure of this agency would happen after the fact it's done, after it's done. and i'm glad to hear clean energy and clean power sf are
4:58 am
going to take measures to really incorporate san francisco values or workforce or environmental concerns and business practices into the jpa's governance but i urge you, commissioners, to really watch your staff and not let them set up a situation like this where essentially they bring the decision that fully cooked and ask you to ratify it after the fact. thank you, very much.
4:59 am
>> the reason why she's here and the reason why other co-workers of hers are the puc, it's just a family business, you know what i mean. i'm looking at the lbe goal. you have $29 million, he is facing federal charges. that's not enough. we have another lbe on the list that the owner of the company that qualified to be the business does not even have a construction license in the state of california. how illegal is that? don't worry, it's paid for by the puc and cmd and then we have another lbe listed, i checked them out about a couple months ago and they're claiming to be a micro lbe and they have applied for ppp loans and they claim to have 78 employees. how in the hell is that possible? and finally another contractor that is on the list, or multiple
5:00 am
lists is based in san ran moan t of the office of the freeway. now if you are a contractor in san francisco at least that's what they used to claim, you have to have a yard in san francisco. when you are protected, when you are part of the establishment, when you are paying your duce to the family, they will get you any kind of license and any kind of certification that you want. now let me share with you something else. i have no issues with the contractor, as a matter of fact, one of the gentleman that runs that contract i have known him for at least 15 years i have a list of e-mails asking them to follow-up on a meeting three years ago to see what the opportunities are. and president maxwell -- >> i'm sorry, speaker, your time has expired. your line is over and item
5:01 am
number 19. >> i have two minutes, so this is what i'm going to say. one of the commissioners asked how is the information about the digesters given to the community. it's not given to the community. the commissioners should find out for how long the contracting center is closed. the commissioner should find out promises made the community would be informed and they have not been informed and the commissioner said they belonged to some environmental whatever it is. b.s. i attended all the meetings and i have all the minutes and i have the recording. she was not part of the task force. she may have been consulting around the side. that is not to be told that's
5:02 am
not included in the empirical data. sleeping with har lynn is not included in the empirical data. and that is what this thing is. why did we have to go the long way for the (inaudible). don't we have that technology here in the united states? so, the community is promised this and no promises kept. the way to keep the community silent is by bribing them. and the men who does it dwane jones and one of the commissioners, and she's listening to me she knows about that corruption. and we are finally say that we know about that. the f.b.i. knows about that and is listening to this meeting.
5:03 am
the community is not taken into account. >> thank you, caller. your time is expired. madam secretary, we have no more callers in the queue. >> clerk: thank you, public comment on item 19 is closed. >> may i have a motion and a second to approve this item, please. >> we have other business, may i have a motion. >> motion. >> and a second, please. >> i'll second. >> thank you. roll call, please. [roll call vote] >> clerk: we have five ayes. next item, please.
5:04 am
>> clerk: madam president, i will read your items for closed session followed by calling for public comment on those items. item number 22 conferring with or receiving advice from the city attorney regarding the following litigation which the city as a petition and pacific gas and electric company is in adverse party. and on that item, members of the public who wish to make two minutes of public comment specifically on closed session item 22, dial (415)655-0001 and meeting i.d. 146 359 0630-pound poundpound. to raise your hand to speak, press star 3. are there any callers? >> there are no callers in the queue. >> thank you. public comment on item 20 closed
5:05 am
session closed. we will no go into closed session. >> stand by for closed session. we need a motion. >> item 21, madam secretary. >> madam president, before we go into closed >> we had to come backout of closed session briefly because we forgot to call a motion for whether or not to assert attorney-client privilege. >> are you talking to me? >> i guess you are. >> so we're on item 21. >> correct. >> we'll go into closed session. >> thank you. >> so we need just a motion on whether to assert.
5:06 am
it's been motioned, moved and seconded. >> why don't you read item 21? that's where we are. >> ok. >> to item 21 a motion on whether to assert the attorney-client privilege regarding the matters listed below as conferenced with legal council. >> may i get a information and a second on whether to assert the attorney-client privilege regarding matters as conferenced with legal council. >> moved to assert. >> may i have a second. >> i'll second. >> roll call, please. [roll call vote] >> we have five ayes. >> thank you.
5:07 am
now we can >> we are out of closed session. there was no action taken. may i have a motion on whether to disclose the discussion had during closed session? >> move not to disclose. >> may i have a second? >> i will second that. >> it has been moved and seconded not to disclose. madam secretary, roll call, please. [roll call] >> you have five eye. >> thank you. madam secretary, is there any further business in front of the commission?
5:08 am
>> no, ma'am. that concludes your business for the day. >> thank you. this meeting is adjourned. thank you very much, colleagues. thank you. [♪♪♪]
5:09 am
5:10 am
>> president cohen: please take roll. [roll call] president cohen is in route. vice

81 Views

info Stream Only

Uploaded by TV Archive on