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tv   Public Utilities Commission  SFGTV  October 15, 2021 8:45am-1:01pm PDT

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maxwell. madam clerk, roll call, please. [roll call] >> clerk: and you have a quorum. >> thank you. due -- >> clerk: due to the covid-19 emergency and the governor's emergency order lifting the restrictions on teleconference, this meeting is being held via teleconference and being streamed on sfgtv. on behalf of the commission, i would like to extend our thanks to sfgtv staff and sfgtv i.t.
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for their help in broadcasting this meeting. to enter public comment on an item, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound. then press star, three to enter the queue. >> before calling the first item, i'd like to announce that the san francisco public utilities commission acknowledges that it owns and are stewards of the unceded lands of the muwekma ohlone tribe. the san francisco p.u.c. also recognizes that every citizen
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residing within the greater bay area have and continues to benefit from the use and occupation of the muwekma ohlone tribe's land since before and after the san francisco public utility commission's founding in 1932. it is important that we not only acknowledge the land so which we reside but that the muwekma ohlone are contributors to the p.u.c. and many thing that's we enjoy today. madam clerk, item 3. >> clerk: item 3 is annual election officers. discussion and possible action to elect a president and vice president of the commission, each to serve a one-year term,
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as per the san francisco public utilities commission rules of order, rule number 6. >> thank you. as the outgoing san francisco public utilities commission president, i'd like to thank the people of san francisco and our knowledgeable stakeholders who has made our lives better. lastly, it's been an honor to serve with such dedicated, knowledgeable, and committed commissioners. i've never served on any other commission, but if the people are like you, san francisco has a lot to be thankful for, so thank you very much for all that you are and do. next, i would like to go over this procedure. first, you will have public comment, and then nominations for commission president, and
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then, a motion and a second and a vote. and then, we will be followed by the vice president. so public comment at this time. >> clerk: members of the public who wish to make two minutes of public comment specifically on item 3, the election of the commission president, and this is for the president only at this time, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound. to raise your hand to speak, press star, three. mr. moderator, do we have any callers? >> operator: madam secretary, there are four callers in the queue at this time. caller number one, i have unmuted your line.
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>> can you hear me now? >> operator: we can. >> great. david pillpel. good afternoon. so first, two things here. one, when you're already done with this item, since you seem like you already are doing this, i would ask that you take item 12 and if that fails to pass, any actions that you take i believe would be null and void. i believe it's pretty important to take item 12, and i'm surprised that it's down on the calendar and not an early item. as to officers, i think any of you could and would do a fine job, and i want to appreciate not just the good work that all of you do on the commission but in particular as outgoing president maxwell indicated,
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she's been faced lots of times this year with difficult circumstances as have the other four of you, but i just wanted to appreciate president maxwell's work. i think we probably agree on greater than 90 or 95% of things, and where we may not, i think we respect each other very much, and so i appreciate her efforts and look forward to the new president and vice president. thanks again. >> operator: thank you for your comments. next caller, i've unmuted your line. you may begin your comments. >> thank you. peter drekmeier, tuolomne river trust. i want to thank president maxwell for her service.
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you did a great job, you educated and we learned from each other, and we made a lot of progress. this is the strongest board that i've seen in my 14 years working for the tuolomne river trust, so thank you, president maxwell. if you follow the precedent of elevating anson moran to president, i think he'll do a great job, and i'll weigh in a little later, too. thank you. >> operator: thank you for your comments. next caller, i've unmuted your line. you have two minutes. >> thank you, president maxwell and others.
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alita [indiscernible]. i'm going to talk about the election of officers. here's why. i don't know any of you. i've never met any of you. i hope to someday, but the people touched by the sfpuc is very diverse. it's not just about the city and county of san francisco. i was not born in the city of san francisco, i was born in new york. i fall into what one might call the lgbt sector, but yet in my time in san francisco, i'm touched by the sfpuc with its essential services, so i ask whoever you choose to elect as your chair and vice chair will
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choose to be cognizant of those touched by the sfpuc, of which i am one, that equity will be practiced when people like me approach you to speak and correspond, that i will be respected in the way that i identify myself, and chair maxwell has done so very respectfully to me, as have all previous p.u.c. chairs. so i ask that you acknowledge the diversity of anyone who reaches out to you as the board will be treated with respect. thank you. >> operator: thank you for your comments. next caller, i have unmuted your line. you have two minutes.
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>> yes, hello. is this for general comment? >> clerk: no, i'm sorry. this is for the election of the president. general public comment is item number 5. >> oh, i see. i should call back, then. thank you. >> clerk: thank you. >> operator: next caller, i have unmuted your line. you have two minutes. >> good afternoon, commissioners. nicolle [indiscernible], c.e.o. i just wanted to make a comment, to express my sincere appreciation for the efforts of sophie maxwell, as she has, in her role of president for this past year. it has been a challenging year and a year full of ups and downs and lefts and rights, and
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her steady hand and her calm demeanor i think have really led this commission to a better place this here, and i thank you for that. and i do look forward to continuing my work with the commission and to your next president and vice president. thank you very much. >> clerk: thank you for your comments. >> operator: madam secretary, there are no other callers in the queue at this time. >> clerk: thank you. public comment on the election of president is closed. >> thank you. and may i have a nomination for commission president? commissioner harrington? >> thank you, president maxwell, and i can add my thanks to all those who are also thanking you for your leadership, but you're not going anywhere, so we won't be
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strangers. i would like to nominate vice president moran for president. as mr. drekmeier said, we have a tradition of moving the vice president to president. as we're going with a new general manager, i think the depth of knowledge of not just san francisco p.u.c., but the issues and the players is vital, so i'm quite pleased to nominate andy as the next president. >> thank you. may i have a second?
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commissioner ajami? >> i second. >> commissioner paulson? >> if i could make a couple of comments. over the past couple of years, since i've been on the commission, when the mayor first nominated commissioner maxwell and myself to be on this board, i came a little bit kicking and screaming, but i have just taken this job so seriously, and there's been so many different changes that have happened with some of the leadership, you know, with people moving and new people coming on board, you know, the dynamic of this board is extremely important, and i value it, and i value the time that i'm spending on it, and i'm taking it very seriously. i also want to say, as many of
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you know, that my day job for the last 20, 30 years is incredibly political, counting public votes, but being on a commission with so many rules and what have you, i took that just as seriously also. but i do want to say that i've made it known that i was willing to volunteer my time, you know, to be a chair or vice president, and this commission has presidents and vice presidents, or a commissioner, and i'm still willing to serve on this board in that capacity if needed. so that being said, i just want
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to say that i very much look forward to continuing with the rest of you, i hope, to stay on the commission as we go through these wild times that has to do with, you know, not just power, not just water, not just sewage, but really, the fabric of san francisco and northern california when it comes to resources and climate and all the things that we have to do. so i did want to make that personal statement as we move forward, and i think working with all of you has been wonderful, and commissioner moran has, probably before i was born, some of the greatest expertise, as commissioner harrington talked about, in terms of federal, state, running this great organization
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back in the day. so that being said, i just wanted to make a couple of comments to that. thank you. and by the way, thank you for your leadership. we came in at the same time, and you dove in -- and for one year, you've had to navigate that stuff, so i want to thank you for your presidency. and this is the only commission in this city that has, so to speak, term limits, and i don't like that because folks have to be booted out whether they did something good or did not do something good, but i just want to thank you for your leadership this last year. >> thank you. thank you, tim. all right. the nomination's been made, and he's accepted the nomination. roll call vote, please. [roll call]
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>> clerk: you have five ayes. >> thank you. then at this time, i will hand over the gavel to commission president anson moran. there you go. >> i was wondering what a virtual gavel looks like. >> now you know. >> thank you. i just wanted to add my things to the general sense of public information and thanks for your service, sophie. it has been a year, and your steady hand has helped keep the ship, and i appreciate that. it is clear from what you do and what you say that you have a deep affection for the people you serve, and that makes
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itself known time and time again. you have worked us through a pretty tumultuous time that culminated in the approval of a general manager this last meeting, and you also hosted discussions for the irrigation districts, about possible early implementation actions on the tuolomne. time and time again, you've demonstrated that leadership is more than holding the gavel, and i think that demonstrates a model, and it's a model that's going to be hard to fill, and i appreciate your guidance on that. i do have a lot of experience with the commission. i promise not to say that very
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often, but i added it up this morning, and it's something like 40 years. tim, i think you're just a touch older than 40 years, but i'm not sure, and i'm delighted to work with this commission. it's certainly one of the strongest commissions i've seen in a long time. we have a new general manager, and i look forward to working with all of you our various interest groups and our new general manager to make sure that that transition is smooth and that we continue to make progress on all of the fronts that are so important to all of us, so thank you for that. >> thank you. >> and with that, i'll move
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onto the election of vice president, and we will use the same process that sophie outlined for the president's position. we'll have public comment, nomination, acceptance, and vote, and proceed in that manner. madam secretary, if you would open public comment for the election of the vice president. >> clerk: members of the public who wish to make two minutes of public comment specifically on item 3, the election of the commission president, vice president, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound. to raise your hand to speak, press star, three. mr. moderator, do we have any callers?
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>> operator: madam secretary, there was a hand, but it went down. there are no callers at this point. >> clerk: okay. speakers, if you want to comment on the position of vice president at this point, please press star, three, and if we have no callers, then we will close public comment. >> operator: all clear. >> clerk: okay. public comment on the nomination of the vice president is closed. >> okay. and with that, nominations are open. commissioner maxwell? >> i'd like to nominate commissioner nisha ajami. i think she will make a great vice president. >> thank you. and commissioner ajami, do you accept that nomination? >> yes, thank you so much. i just want to state that, chair maxwell, you have a great
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sense of collaboration and openness and created a -- sort of, like, a platform for dialogue, which i very much appreciate in this setting, so -- and i appreciate the nomination. >> commissioner harrington? >> just have a question of process. do we have one nomination at a time and then vote on that? is that how the process works? >> yeah. the process, as it was distributed to the commission all year, says it was only the only one in the pond. so if that particular -- if that nomination fails, then we would reopen nominations and keep doing that until we reached a conclusion. >> thank you. >> and with that, madam clerk, if you would call the roll.
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[roll call] >> there hasn't been a second. >> oh, i'm sorry. we need a second. there's been a motion. do we have a motion and a second? >> i move that we [indiscernible] commissioner ajami. >> moved by commissioner maxwell. >> i'll second it. >> and seconded by commissioner harrington. thank you. then with that, madam secretary, would you call the roll. [roll call] >> clerk: and you have five ayes. >> thank you, and we have a new vice president. congratulations.
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would you like to make a couple comments before we go on? >> sure. first of all, i just want to say a big thank you to all of you, as you have all been there for me, working alongside every one of you. it's one thing to come in with a set of knowledge. it's another thing to come in and be able to function in a collaborative body, and definitely, this has been one. i definitely look forward to working with every single one of you, and i do not have 40 years of experience working and dealing with this commission, but i have lived in this city for 20 years, and i really
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appreciate every opportunity to make a small mark, if i can, in this process. thank you. >> thank you. and madam secretary, would you call the next item? >> clerk: the next item is the approval of the minutes of the september 17, 2021 special meeting and the september 28, 2021 regular meeting. >> and commissioners, do you have any corrections to the minutes? >> i actually have a long comment. in the minute -- if you don't mind, in the meeting. give me one minute. with the special meeting on the september 17, there is a -- on the city of san diego on how much water they used, there's an error in the -- city of san
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diego is using 120 gallons a day indoors and 48 outdoors, and i think it should be switched, so i just want to make sure we note the city of san diego's use correctly. >> okay. thank you for that. madam secretary, would you open these items for public comment? >> clerk: members of the public who wish to make public comment
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on item 4 specifically, the minutes of september 17 and september 28, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound. to raise your hand, press star, three. mr. moderator, do we have any callers? >> operator: madam secretary, we have one caller in the queue. caller, i have unmuted your line. go ahead. you have two minutes to comment on the minutes. >> great. can you hear me okay? >> operator: yes. >> great. david pillpel just to say thanks to commission secretary hood for her great work. i hope she feels better, and i've already provided some incredibly minor suggested
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edits to her for the meeting, and i hope they will be incorporated. thank you so much. >> operator: thank you for your comments. madam secretary, there are no other callers in the queue. >> clerk: thank you. that closes public comment for item 4. >> thank you. commissioners, any further comment on the minutes? okay. seeing none, can we have a motion and a second to approve the minutes, and can we do that in one motion or should it be done in two? >> clerk: let's do it in two motions, and the minutes for september 17 should be amended. >> okay. can i have a motion and asecond for the minutes of september 17 amended? >> so moved. >> seconded. >> okay. thank you. it's been moved and seconded. madam secretary, would you take a roll call vote, please.
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[roll call] >> clerk: you have five ayes. >> okay. [indiscernible]. >> okay. the minutes are adopted, and for the minutes of september 28, a motion and a second, please. >> so moved. >> i'll move. >> okay. moved -- >> second. >> moved by commissioner paulson, seconded by commissioner ajami, and roll call, please. [roll call]
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>> clerk: you have five ayes. >> thank you. and madam secretary, if you'll call the next item, please. >> clerk: the next item is item 5, general public comment. members of the public that wish to make public comment on matters that are within the commission's jurisdiction but not on today's agenda may do so by calling 415-655-0001, meeting i.d. 146-067-9420, pound, pound. to raise your hand to speak, press star, three. mr. moderator, do we have any callers? >> operator: madam secretary, we have multiple callers in the queue. first caller, i have unmuted your line. you have two minutes. >> good afternoon,
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commissioners. first, thank you all for your service. i live direct across the street from your sfpuc crystal springs watershed on hallmark drives. sfpuc is the department that grants university of santa clara allowing them to hold a marathon. on september 9, the college of san mateo trustees voted to increase the large meet defined as over 1,000 runners with no caps from once a year to five times a year, increasing the
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burden on our neighborhood community totally contrary to our request. i support responsible sensible use of the crystal springs running course for smaller event due to 500 runners in our smaller community. however, the current events were 600 to 900 events, causing traffic congestion and pollution from dozens of buses and cars, as well as pedestrians safety is a burden to many in our neighborhood and is also an environmental danger due to increased on us of this land. for college of san mateo to now recommend a five fold increase of events with over 1,000 runners when we currently have one event of that size is a slap in our faces. i ask you to review the crystal
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springs permit and disallow any events with more than one event and 500 runners per day -- >> operator: your time has expired. hello, caller. i have unmuted your line, and you have two minutes. >> thank you. this is peter drekmeier from the tuolomne river trust. [indiscernible] and i will send you a link to that. the editorial include had several points, including that l.a. can be a good partner in the environment.
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the other take away is that the state water board can effectively act in the public interest if it's given sufficient public measure to do its works. the ultimate to relinquish a great deal of water was only due to [indiscernible] governor newsom has reached agreemented without being first called by a daughter department or meeting a court order, leading to talks that could go on forever.
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here we are. it's been decades, very little progress. the unimpeded flow in the tuolomne was 14% between february and june. we've made a lot of progress on dialogue but very little progress on environmental movement. >> operator: caller, your time has expired. next caller, your line is unmuted, and i have two minutes. >> at the last p.u.c. meeting on september 28, the commission approved the change in contract for a duration of a total of five years. this is a small project with seven contract modifications.
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the original amount was $17,949,125. the current cost is $22,744,037. the original contract duration was 950 consecutive days. the current duration is 1800 consecutive days. in the supporting documentation on september 28, the description of scope of work section for modifications one through six refer to, quote, unquote, nuts and bolts replacement. i've never seen this in a p.u.c. contract description before. the g.m. repeated the nuts and bolts replacement phrase. the project manager stated that there was a six month delay in a part procurement due to
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covid. if the part had been ordered when the issue was identified, the part would already not here. i would urge the p.u.c. to reevaluate this contractor for a possible disqualification of future bidding due to on going performance issues. thank you. >> operator: thank you for your comments. next caller, i have unmuted your line. >> thank you, commissioners. thank you, commissioners. i want to echo the concerns expressed by a prior caller about the impact of the cross-country course on the crystal springs watershed. at this stage, there will be 25 scheduled event drawing over 9,000 runners, and when you
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count runners, spectators, and others, you have over 25,000 people accessing this land. plus, this all takes place during high fire season on a grassy hill top right behind a neighborhood of several hundred homes, and incredibly, sfpuc has never done any environmental studies on the impacts of this use. for the ridgeline, you allow permits but you did a study, and for here, you allow 25,000 people with 25 scheduled events.
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i call for a full e.i.r. for a study on the land and the abutting neighborhood for this use. thank you. >> operator: thank you, caller. next caller, you have two minutes. i have unmuted your line. >> hello. thank you for letting me speak. i also live in the neighborhood adjacent to the watershed that is used as a running course, and i have to stay that it's very disheartening to be told by sfpuc staff that everything's going to just continue the way it is. i contacted my local contact, and he echos that everything is just fine the way it is. it is not fine the way it is. you are not fulfilling your obligation to consider the
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environment. we have important habitat there. i've seen mission blue butterflies out there. there's never been any environmental review for the use -- for public use of this property. you also have utterly failed to consider the impact to our neighborhood by having thousands of people converge on the neighborhood in one day. it's uncontrolled growth, it's unsustainable, it's destroying the habitat, you know, it's destructive to the quality of life for many people who live here. there are some people who don't care, but there are many people who do care, and i'm urging you not just to go along with your staff on this. this needs to be looked at and taken seriously. your staff wanted to approve
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the [indiscernible] hill cahill ridge trail, and you didn't want to do anything except push it through. your e.i.r. process works. use it, and it will protect the environment. the watershed is a huge gift to the bay area. >> operator: caller, your time has expired. madam secretary, we have two more calls. hello, caller. i have unmuted your line. >> can you hear me now? >> operator: yes. >> i have heard several sfpuc members have announced their departures, retirements, etc. i think the silver tsunami that
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we've heard about for years is here. i think that p.u.c. both through management, human resources, the various enterprises, departments, etc., is planning for these transitions and knowledge transfers, and i guess i'm concerned what would happen if all city employees who have not been vaccinated or declared their vaccine status, what impact that might have on 24-7 operations and key workers like electrical or plumbers, etc. i would encourage some discussion about that.
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i don't want us to be caught without key people in key positions and have to force overtime that people may or may not be willing to perform, etc., etc. so i'm just raising a point about that, mandatory transitions and the fact of implementing vaccine termination policies that are in place. thank you very much. >> operator: thank you for your comments. next caller, i have unmuted your line. you have two minutes for general public comment. >> thank you, chair anson moran. alita dupree. for the record, she and her. i'm going to talk about the significant program of sfpuc, which is cleanpowersf.
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i think it's the program that can generate excitement about sfpuc because i don't think that sfpuc is boring, and it should never be considered as such. how do we continue the work of providing renewable and inexpensive electricity to san francisco with the goal of reaching toward 100% and to develop new ways of consuming electricity than swapping out devices such as gas stoves and ovens or vehicles that use natural gas or petroleum, etc. because the future is electric, and i practice it. i'm here in my own electric home practicing what's called
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demand-based electric pricing, which is something you find in businesses and institutions all the time. i'm developing strategies in my home to minimize electric draw. i think it's important that we draw harder in our work of delivering renewables and storage, and we made a good farther with our contract last meeting about a battery storage project, but that should only be the start, so i want the cleanest and greatest and most affordable san francisco we can get for my beloved s.f. home -- >> operator: thank you, caller. your time has expired. madam secretary, there are no other callers in the queue. >> clerk: thank you. item 5, general public comment is closed.
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>> thank you for those comments, and madam secretary, would you call the next item. >> clerk: next item is item 6, communications. >> commissioners, do you have any questions or comments about the communications that you have received? seeing none, madam secretary, would you open for public comments? >> clerk: members of the public who wish to make two minutes on public comment specifically on item 6, communications, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound. to raise your hand to speak, press star, three.
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mr. moderator, do we have any callers? >> operator: madam secretary, we have two callers in the queue. first caller, i've unmuted your line. you have two minutes. >> peter drekmeier, tuolomne river trust. we have talked about a presentation in october once that [indiscernible] was available, and i haven't heard anything about that recently, so i was hoping for an update on when we expect the report to be available and when the ensuing workshop would take place. thank you. >> operator: thank you for your comments. next caller, you have two minutes. >> hello. can you hear me?
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>> operator: yes, we can. >> this is [indiscernible]. i am the president of the sfpuc citizens advisory committee, and i wanted to speak to item 6-d, citizens advisory committee resolution for continued support and budget for sfpuc racial equity plan and community benefits. [indiscernible] towards pollution or health, increased infant mortality, just to name a few. the 17 members of the body, we came together to create this resolution to make sure that promises made are promises kept. i live in the bayview. i've actually literally been part of these discussions because sometimes real estate developers, they sell their
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interests and community benefits evaporate, and they're forgotten. in this, we wanted to raise up the good work that you folks do and continue to do. you see that many of our bipoc and women are actually leaving mid level and field level positions. we need to be able to fill those respectfully, and the c.a.c., we support the sfpuc racial equity plan, and we respectfully ask that the commission ask the g.m. to report back to you and the c.a.c. on equity goals related to the plan itself. and lastly, we want to ensure that the work by the p.u.c. and
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staff, that we're treated respectfully. >> operator: i'm sorry, caller. your time has expired. madam secretary, there are no more callers in the queue. >> clerk: thank you. public comment is item 6 is closed. >> commissioner maxwell? >> thank you so much. when i realized i didn't have any comments, it was for the citizen advisory committee. i was going to ask somebody, if they're there, from the citizens advisory committee, to speak to that now. is it too late to do that now? >> no. after public comment, we have additional comments by the commission. >> clerk: mr. president, the chair of the c.a.c. is available to discuss this further.
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>> and i believe, also, we have one of the following items, i guess item 8, is a report from the c.a.c., as well. >> okay. then maybe that's it, and we can just do that one because i think it's the same person, so that's perfect. so i don't need to go any further. item 8. thank you. >> thank you. commissioners, any additional thoughts or comments? i do have -- steve, if you're around, the question was raised about the global warming report. do you have any information about that? >> it's still in the hands of the foundation. we are in contact with them. we expected the report to be available this month. it sounds like they are
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actually, due to workload, going to release the actual, actual report until early in november. the full report is actually quite daunting in terms of its volume, voluminous, i would expect it to be available by november. there's a lot of good information that i think we can present to the commission and others in this month ahead regarding that, but we do just
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have to get an okay from w.r.f. >> okay. commissioners, any other comments? commissioner maxwell? >> yes. concerned about some of the our neighbor -- some of our neighbors down at the peninsula. how are we going to deal with that or should we talk with the college how -- what? >> well, you know, you heard in general public comment about some of the things they've raised. i've asked our staff, hearing those, if we could provide a report back at the next commission meeting, and we will do that, because as always, there's two sides or more to every discussion that goes on, so we will have an item to report back at the next commission meeting. >> thank you. >> and through the chair, thanks for that question and
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also that answer because we do need to be attentive to, you know, all of our [indiscernible] so not just san francisco public utilities commission. thank you. >> thank you for your comments. any other comments? seeing none, madam secretary, would you call the next item? >> clerk: item 7, commissioner bond disclosure responsibility training. this is a presentation advising the commission on its responsibilitying under federal securities laws with respect to the san francisco public utilities commission issuance of public debt, including discussion of preliminary and official statements and related topics, of which mr. morales will introduce this.
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>> yes. so i'd like to introduce two people who will make the presentation. first, mark blake, our deputy city attorney, who works with us at the p.u.c. in terms of all bond disclosure responsibility items, and then, he will introduce our outside counsel. with that, i will turn it over to mark white. -- mark blake. >> operator: mr. blake, are you available? >> yes. can you hear me? >> operator: yes. >> members of the commission, my name is mark blake, and i'm a deputy city attorney.
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i'm on the real estate and finance team, and as rich indicated, i work with the p.u.c. on all of the, you know, bond issuances, the finance of p.u.c. capital projects. so today, we're going to do a short in-service training regarding the application of the federal service laws, and we're conducting this training today because of the rules, the federal securities law as they apply to the issuance of bonds to create a significant exposure in terms of the p.u.c. if we want to follow these rules, we would lose access to the capital markets. and then other, the secondary effect is if we undertake good practices here, that we can obtain generally the lowest cost of finance and capital
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assets. we've provided for your files, take-home, a memo, and then, we've also provided a slide deck that we -- that steve spitz will just outline, and then the ways that you can discharge your responsibilities under the federal service law. steve spitz is a partner in oreck. they are one of the leading firms in the public finance space, and they determine what some of the interpretations are and guidance of the laws by the
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securities and exchange commission. so with that, i'll turn it over to steve so he can walk you through the slide deck. >> thank you. steve spitz, partner at [indiscernible] carrington, and sutcliffe. outside counsel for the p.u.c. as you know, sfpuc finances capital bonds by selling stocks and bonds in the public capital market. the debt is offered through an official statement, which is something very similar to a declaration of bonds, it informs investors so they can
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make an informed decision as to whether they want to buy an investor's p.u.c. bonds. it's subject to the antifraud rules of the federal securities law, which means that the official statement must have no material misstatements or omissions. also, as mark noted, mr. blake noted, there's a positive benefit to the disclosure documents and having disclosure documents that are, you know, recognized by the market as quality productions. [please stand by]
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>> difficults -- difficulties
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and challenges are disclosed and addressed. i commented that the process is that the p.u.c. has put in place and the guidance of the city attorney and the calls for transparency that the commission has fostered is very strong. in terms of substance, the first obligation of commissioners is to really understand the transaction. understand the terms of what is the p.u.c. issuing bonds for, what is the p.u.c. terms of the bonds. what are the p.u.c.s obligations and commitment. it's hard to know that you have adequate disclosure if you don't know what the transaction is at your disclosure.
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second, commissioners need to be sure that senior staff is aware of what senior staff needs to be aware of. particularly items that are within the personal knowledge of commissioners. matters which you have particular information or information that the staff may not be aware of. the final important thing is that commissioners voice any concerns that you have with disclosure. any of the process or the substance or the draft documents that are included for your approval. to note that if there any concerns about substantive issues, the city attorney's office is your counsel and that particularly sensitive issues can discuss with the attorney office. we will pause and stop and see
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if commissioners have any questions or observations? >> president maxwell: i have a question. when you say personal responsibility, what personal knowledge of. what does that mean exactly? >> first of all, in the exchange commission that governing board members and commissioners have obligations with respect to the disclosure practice. like all other important matters that the sfpuc has responsibility. discussing matters which you have personal knowledge, the process for preparing an official statement it's prepared
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by -- under the direction of the finance department and its staff. we receive input from senior staff and relevant staff at the p.u.c. what i'm concerned -- what i mean by personal knowledge, personal information would be, there are some things that you know or may know as commissioners that are not within sort of the knowledge off senior staff. if there are such matters, then it will be difficult for senior staff to ensure that the documents is complete. that would be a concern that you ask yourself, is there something
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i know that might not be reflected in the disclosure documents because people preparing the disclosure documents don't have the knowledge that i have. something particularly sensitive always advisable to talk to your counsel or city attorneys office. >> did that answer your question? >> president maxwell: i want like an example of something -- i think you answered it. >> commissioner paulson: i want to thank the staff for putting work on to give us these disclosure comments and run through our responsibilities. i think it's very important. but at the same time, as somebody who sat on various
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boards trust funds and other entities that have investment, i do want to acknowledge that i don't wake up at 4:00 in the morning and wonder if the bond rate has changed. we as commissioners and with the staff hire professionals to do that stuff. even during the course of this, we're always diligent to say, well, why did do you this. those are the questions that you are reminding us that we still have to ask if we have those types of questions as to what we're doing. we are not the finance managers or the investors and wall street types that do this for a living. we're the stewards. i appreciate it but at the same time, we also need to know that
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we do need to ask the questions and but the liability is framed by the responsibilities you just mentioned. i want to acknowledge those pieces. i know that commissioner maxwell said, give me an example something we can ask. i think that's a good question to ask. i know that -- [indiscernible] just a comment i wanted to make. >> couple of notes, first of all, these training sessions and reminders of the process and the
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commissioner's role in this, --these are not scheduled becaue there was a concern. they are scheduled because it's matter of good practice to do these presentations on a periodic basis. in terms of -- >> commissioner paulson: i understand that. we supposed to be transparent and informed what our responsibilities are both legally and ethically. i get that. thank you. >> in terms of process, again, large part of responsibilities is making sure that the culture, the staff, the -- assistance what you're getting is what's needed. in terms of an example of something that a commissioner might know, that you staff wouldn't would be something for
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example, something that will be discussed in closed session with city attorney. with the city attorney's office, that might be the thing you want to discuss with the city attorney's office. whether this is a matter of what need to be disclosed to market. >> commissioner harrington: i wanted to thank you for doing this. we have been doing some joint training in the last two months pro bono. it's nice to see you getting paid for your work. thank you. >> i want to comment on couple of things. the types of -- what the s.e.c.
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charge board members with is gatekeepers. to the extend that you brief on water supply with respect to the p.u.c. what they would like you to do as a critical feature for the p.u.c. is to prove the official statement that you're proving is to make sure we got it right. to ask a question about that, that's a critical feature that if we're reckless in describing the amount of water that we had or amount of revenue or our expenses, if we are just cavalier about it, they expect board members to quiz staff or at least to peruse the document on an area that is of top of mind, critical and that if you do that, you just discharge your
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responsibilities. second darely the thing that the s.e.c. is wants to see, if you are competent experts at the table preparing your disclosure documents, you can rely on that. i can assure that steve has over 30 years experience in the public finance. he's an expert in this area. i, myself, have 30 years in this space, worked for the city of san diego during its troubled metropolitan water district. staff is trained, we're bringing lots of resources in terms of preparing p.u.c. official statements. it's that type of engagement with the process that the s.e.c. expects. that's why we're doing the training so at least from the
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defensive standpoint, defensive posture, we can say that we trained up. we talked about the issues. people were aware. that's all i wanted to add. >> commissioner ajami: thank you. i really appreciate these sessions. it was definitely something i was not aware of. i appreciate this discussion for sure. may be two questions here. you mentioned about having a discussion and closed session and making sure staff knows. is that something the commissioners need to be aware of or follow-up on or is that generally in the meetings we
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have general managers present. is that something they would need to make sure it's communicated? >> generally, i think that you have as part of the process, the disclosure documents run through by senior staff. you spend good deal of their own time reviewing things. what i was really not saying -- suggesting that commissioners can't rely on staff to have proper disclosures of all the things that staff is aware of. only concern would be if there's something you thought, i know something that the senior staff might not be aware of. >> commissioner ajami: how does this works when you're externally communicating things?
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can this be something that we have to be mindful of how we're communicating issues. not just official documents that comes out of sfpuc. how does that exactly translate into possible pitfalls? >> let's a very good point. there is a concern. speaking to the market that when commissioners or officials make statements that are likely to receive -- to make their way out to the market. the s.e.c. considers that speaking to the
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one of the things the sfpuc made good practice of, when there are events and use a process to make voluntary disclosures to the market. to make the official vetted p.u.c. statement on matters. filing that on the msrb disclosure system just to get things out. you are right what needs to be careful and what one says. consistency of messages is very important. >> commissioner ajami: one last question, just to make sure. i haven't seen these documents. i know we have an item obviously
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today on the agenda and discussing it. how does that -- how often do you get to review these documents? i'm sure you mentioned that and i missed it. i need to make sure. >> generally, as i said, a disclosure document in their final form will be approved as parts of your approval of issues. there will be a draft of that document available in the board package in advance of that meeting to be able to do that. generally, documents are prepared in connection with each bond issue.
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you'll have occasion to consider two of them very shortly, that the disclosure documents will be part of that package. >> commissioner ajami: do we give regular reviewing options after the bond is issued? i'm assuming this is an ongoing process. you have to pay attention. >> there are two times that -- one is speaking to the market. one is buying or selling securities. in connection with a bond offering. there's also -- commission has made an undertaking to provide annual financial operating data to the market. that's update of some materials made as part of your audit
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financial statements. i would say that the process of the annual financial statements, which consider approved, is a very important part of your financial disclosure. you definitely want to -- paying attention to the financial statements is also security matters. >> clerk: do you have a second part of the presentation? >> no, that's it. there's other material. >> okay, thank you. any further commission
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discussion? are we going to get that presentation? >> that was not part of the material. >> i can forward that presentation. >> vice president moran: call for a public comment please. >> clerk: member of the public who wish to make public comment specifically on item 7 dial (415)655-0001. meeting i.d., 146 067 9420. to raise your hand to speak press star. do we have any callers? >> we have one caller in the
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queue. >> caller: this is david pilpel. i too will be interested in more detailed presentation if 1 can find a way to get that to me, i like to see that and the presentation that was made today. i think it was a good solid presentation and discussion. i'm not sure it matters to anyone, for what its worth, i have great confidence in mark blake and rest of the city attorney team in terms of bond issues and disclosures and all of that. i think the last question that you were discussing related to continuing disclosure obligations, i think that was fairly asked and answered. but there are additional responsibilities not just when there's an issues being considered, annual disclosure obligations. there may be some additional
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requirement. i really don't know what the materiality standard is, i assume there's some -- there may be some disclosure obligation. i'm sure the p.u.c. is complying with all of that. again, i have great confidence in the team at p.u.c. finance, city attorney team and outside counsel on this. thank you for listening. >> clerk: there are no other callers in the queue. public comment is closed. >> vice president moran: any additional comments? did you have any closing comments? >> no, commissioner moran, this is a serious matter.
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i'll make this comment later on when i make my presentation with the capital financing plan. the p.u.c. has policies and procedures commission adopts from time to time. one of the things is training. this is actually an item or something that's formally part of our policies and procedures. >> vice president moran: thank you. read the next item please. >> clerk: item 8. citizens advisory committee annual update. presented by ekanem. >> hello, thank you so much for having me today. i wanted to start off and say thank you so much to our the
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commissioners. you done a tremendous job. i'm looking forward to work with every one here. i wanted to start off and talk about -- as a gay, cisgender black san franciscan i feel honored to chair the c.a.c. committee. all of you out there, if you have any issues you want to learn more, we are at we are a board of 17 people, 13 seats are filled currently. each board of trustees -- board of supervisors gets to appoint
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one person. we are very diverse group of folks. it's our job to represent the citizens for people within the service area. we done lot of that this year. we are organized four committees. first, water, waste water, power power. i had the opportunity to work around and oversee. i began this whole thing thanking the commissioners. i want to thank you president maxwell with your steady has been and collaboration and focus on community. this year has been really difficult for so many involved. you worked through so many issues not only increasing our capacity, increasing our economy but also really ensuring that we're not doing that on the back of the underserved is really amazing to me.
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president moran and vice president ajami, thank you so much for stepping up. i hope you continue to grow the collaboration. we want to citizen advocates with you. i want to talk about lot of the parties we have at c.a.c. for us where we are aligned, we will be your greatest advocates. where we differ, i hope you will be our greatest listeners. we actually went through a process of defining where our priorities line. we want to share those with you. usually, we have to go away to a retreat. we have to invite you all to give us your feedback. we didn't have the opportunity
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to do that. we'll be meeting in november to go through that and hopefully incorporate lot of the great work. i want focus first on the full c.a.c. we have seven areas that we want to look at. we have the actual annual report in our packet and it's available to the general public as well. first and foremost is advocating for equity. not only in our service area, not only within the organization but in all the services that we have. it's my sincere belief that equity is a business driver moving forward. it's not detriment. it's not concessionary. our second part is really about supporting the affordability program and policies you have put in place. when i talk about being aligned,
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it's actually really great. we've gone back to our community member saying, this is coming up. people like, that's good. [laughter] believe me, we're used to fighting. really, i laugh and i joke, i really want you to know and hear that we appreciate the work that you've done. for us, it's also accountabilities, being able it track our infrastructure investments through our capital plan. it's really important and we worked really hard to be partners with staff and hopefully with you in previous years and moving forward. we can strategize with you, to help wherever we can.
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our subcommittee, we have done great deal of work throughout the year. not only dealing with folks who had questions about our water sources. the education that goes along with that, what that looks like. we get the questions. we actually believe in the diversification of our water supply. we encourage more of that. we're looking at that through the equity lens. we don't want one district having to use recycled water over another. we want to see that dispersed evenly throughout the city of san francisco. on the water side, we want tra track the delta plan. we want to receive updates on water quality. understand that pross better and
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get feedback in that process. one of the other things that's important to us is our conversation just about drought and water conservation. what we hear from our neighbors, fellow san franciscans every day, these 5-year storms aren't happening every five years anymore. what's begin on with that. to be work with staff and get those questions answered in our c.a.c. meeting is extremely important to us. [please stand by]
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>> it's a great partnership and put together the report and i
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talked about the racial equity program and we love the virtual tours we don't want to see those go away and want to see how they can be integrated to education in our school systems and so with they also want to say look, i want to say we communicate not just one a years and i want to continue that conversation whenever have you a question or issue or concern, please feel free to call on the cac as a thought partner as we have a lot of we can leverage moving forward and perspectives that can help elevate the conversation to whole new levels. with they want to say thank you for your work and your continued success moving forward.
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>> thank you for that report. commissioners, any questions? commissioner maxwell. >> good to see you. is there anything you'd like to add to the racial equity plan the resolution -- you got cut off. is there anything you think is important you'd like to mention? >> number one i want to acknowledge the great work that's happened. i joined this because there was negative history and it was one of the only agencies instead that took a look at its own reflections and we need to do better. with they joined in and when i look at racial equity and the great work you've done, you've moved mountains. it's not an easy thing to do
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coming from someone who done some of this work and start inning internal affairs dropping into the business units and having that move forward is key. for me i think the other big is about accountability. the report comes up with some accountability metrics and they'll be expanded. i wanted to make sure they're moving forward. again, it's my belief equity and fairness is not just going hand in hand and to the extent things can be fully fund and the resources can be truly allocated will be critically important. i sit on other commissions
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including the san francisco african american reparatios task force and look at make sure the process is equitable too. i don't necessarily listen to what people say. i see what they fund. so when you nell you support equity, when you nell you support these programs and the funding and if we can make sure these are fund and get reports back it will be extremely important to us. >> thank you. >> commissioners, any other comments or questions? >> thank you for your presentation. maybe a different way of asking the question but i wonder how you put talk into how we as in the full enterprise not thinking
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about each one as a silo could implement solutions but individual enterprises. i'm a big believer they need to bake the silos between the different enterprises and wonder what you guys can bring into the table as you're figuring this out and you did mention like for example great infrastructure and some of the social equity are absolutely ways we can connect across the board but i also think there's financial opportunities. there are infrastructure opportunities and structural or institutional ways and wonder if you talked about this or if it's on our radar. >> we moved our retreat from
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like september to november to have these conversations and for us it's important to actually include staff in there because i presented what we think is important but i want to hear you from and where we'll push the bar and again it's my belief we can push the bar but in way to make money for all the folks who are part of this from an eco system and doing in equitable back up. i never want someone to come back and say we did x and didn't get the returns we needed. i do a lot of in social impact so working through these issues around impact, economics and how we can do both really well.
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for our november meetings we want to engage and if you have questions, concerns, thoughts, we'd love to partner with you on that. >> commissioner paulson. >> thank you for this important committee and as somebody who historically represent the majority of the folks that makes the organization run, the people who do the work, thank you for what you're doing and continue to reach out as you can because you mentioned city build and a
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training post for the jobs need ed and continue to use me as resources the for your presentation. >> i'll take you up on that, commissioner paulson and a want to invite every single one of you to a meeting >> we had a conversations and where we align it's great and where we don't we'll be listeners from one another because i know there'll be a lot of we can learn during this
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process. >> well said, thank you. commissioner harrington. >> a thumbs up, thank you. without strong talk. didn't work apparent flip -- apparently. >> thank you all. madame secretary open it up for public comment. >> members of public who wish do speak call and to raise your hand to speak press star 3. >> we have a caller in the queue.
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>> thank you. . for the record she and her. while i got to capture some of this. lost good things. i sent a subtle invitation. i'll have to drop in to a cac meeting because to be honest i don't know very much about the cac. in the report today i hear the word equity a lot and i'm going to maintain to you the importance of equity and welcome there's often a lot of definition and i maintain a person who does not meet societally established definitions and when i set foot
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on say, san francisco soil, the work of sfpuc impacts me. it's very important work because i depend on water and electricity and waste water. these are basic needs. i would like to see a greater level of engagement for people like myself to be able to engage respectfully and credibly. i think i'll have to come to one of your meetings. it is my desire to take advantage of your welcome and advance the cause. thank you. >> thank you. no callers in the queue.
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>> any discussion? seeing none pull the next item. >> it's item 9 report of the general manage. -- manager. >> commissioners, first, i'd like to reiterate thank you to commissioner maxwell for the past 11 months first is the capital financing plan and this is important for '21-'22. rich, take it way. >> thank you. i have a short presentation. members i'm richard morales and
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i'll present what was proveded to you formally as a memorandum. this is the sixth annual plan presented to the commission. last year's plan and we scheduled into the plan. the implemented transitions for supporting the programs of the water and waste water enterprises expiring credit facilities or renewed plans and we have expiring facilities. three transactions have carried over from last year's plan which i'll summarize later. just to start, the debt management function has an
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outstanding debt portfolio funding our programs and credit needs. the activity are closely guide the and management policies and procedures and last updated and presented to the commission in november 2019. these are policies as a comprehensive and dynamic document that provides guidance and parameters how to issue our debt and key areas such as disclosure and procurement of our advisors and structuring parameters and methods of transactions. these are among the many things you'll find in our debt policies. in addition to the debt policies, our debt management is guided by the policy and the debt service coverage policy adopt the commission in 2017. we also rely on the independent oversight of the bond committee
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and this culminates in our annual presentation to you for a plan which provides visibility in activities. this plan does not include any action items. there are no financings that you're being asked to look at same as any documents. it's just giving you a heads-up, if you will, we have on theers havon certain bond transaction. that's what this plan is describing to you. this shows the revenue bonds and the federal loans executed over the last few year and also shows the amount of commercial paper including what's been drawn and outstanding and we wanted to provide short term and long-term credit ratings of each
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enterprise. waste water are deemed to be each rated in the aa rating category. what you don't see is the new rating by clean power s.f. in december 2020 it was the highest rated community choice immigration in california by moody's. here there's primary types with managing debt portfolio. this is meeting credit needs. the goal is to issue debt to meet the ongoing capital requirements of each enterprise and decide how much and this is based on an analysis done on a regular basis each enterprise's
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spending plan and debt and a large part of what we do is the ongoing administration of this portfolio including replacing bank credit facilities that support the commercial paper or interim funding program. and we constantly evaluate what each enterprise interim funding needs are sufficiently met by programs or need to be increased or decreased as needed. we monitor the credit markets to look for opportunities that would result in make our debt portfolios more cost effective and staff work closely with independent municipal advisors is constantly looking for opportunities most notably the refunding of outstanding debt with lower cost debt. given the historically low interest rate environment of the past several years we've been able to have funding transactions for the water enterprise resulting in
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significant rate savings to the rate payers. so this year there's 11 transactions planned. the first transaction is a carry over the execution of the state revolving fund or srf loan by the water enterprise in the amount range from 200 to $240 million and low-cost loans we've been getting time to time from state primarily for waste water and water enterprise and this particular loan, if we execute it, will provide low-cost funding for the project. the second transaction is also a carry over transaction from last year's plan. the commission will be asked to authorize revenue notes for the project and emerald project. the notes will be the first in the series of notes to provide interim construction funding the
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beneficiary of low-cost loans executed in 2020. and the loans at the repayment beginning at the designate rate at rates lower than the 145 loan rate and in today's market notes can be .4 to .8% so considerably lower with the loan rates and the repayment will begin for the long-term financing for the projects. to the third is the 30-year revenue sale for the waste water paper issued for the capital program not related to the bio solvents projects.
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the bio solvents through the notes, if you will, because they were the recipients and the bonds will provide funding by taking up commercial paper for components of the capital program and the notes and bond we plan to bring to the next meeting october 26. the fourth traction carrying forward is a 30-revenue bond. the first sale since the issuance back in 2015 so it's been a while. revenue bonds will provide to the capital program. the fifth transaction is a revenue refunding bond transaction and interest rates
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remain at low levels p.u.c. is taking advantage of the low rate in the past allowing it to successfully implement revenue bond transaction for the water enterprise in 2017. in 2019 and 2020. each of which resulted in significant debt service savings to the rate payers and hope if rates continue to stay low we can execute a similar transaction nor water enterprise for rate payers' sake. the last one is for credit fasts for the waste water and the program. these will be brought forward to the commission during varying times of the year depending on the expiration rates and staff in the process of negotiaing a
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credit agreement with j.p. morgan and the credit fees will be lower and covenants becoming more favorable reflecting maturity as a utility and also reflecting the rating i referenced earlier. we're excited to make these particular amendments. this concludes my presentation. i'm happy to stop here and take any questions. thank you. >> commissioners, any questions? >> thank you i'm going to ask you a question and obviously i'm
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not a finance expert so i'm not going ask in a perfect manner but hopefully we can figure it out. i'm interesting to understand what is the ratio of the return on the bonds and the revenue that comes in and that's used for the payment? . what comes in, what comes out. i would like to see what comes on the other side? >> that's a good question and has to do with the overall debt issued. each enterprise has its own. the interest rate will inform to what service is and you are wear of the debt service and
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outstanding is your debt service. and a critical financial metric ric that credit agencies and others use is net revenues. that's defined as gross revenues less extension of the enterprise. that's the numerator. so debt services is the denominator. that's your coverage ratio. long answer to say the market looks and we provide service coverage ratio of one or two times the higher the better is considered a stronger credit that's what the market looks for in terms of the ratio you're trying to understand. that's called the debt service coverage ratio.
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that's a key critical component. >> just to clarify, i'm trying to see considering how we set our rates, how we recovered the cost how we pay debt. i'm trying to see and looking in the future for investment and waste water use and trying to understand that part a little bit more clearly. i appreciate the clarification on the terminology and how it's used but if i'm going to look at our future and looking at it
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from a purely financial mechanism or measure because obviously there's so many uncertainties that can impact and what goes out beyond just markets and bond issuance and things not independent from what we do but out of our hands sometimes. >> commissioner ajami you're talking about the overall budget and you're talking about the sources and the revenues coming in and how we project those revenues based on what we see
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now and into the future and what are the uses of those revenues now and into the future. rich manages our debt portfolio but we have other things such as personnel, equipment, chemicals. if the revenues are decreasing because people are using less or climate change, we take that into account in our rate setting process so we don't overextend ourselves. rich talks about a debt coverage ratio. that means we have a reserve to draw on if things go south but we want to be conservative. when we look at capital plan we look at spending it for the budget process and want to make sure we're spending money to fix things or improve things but we want to make sure we don't drive ourselves into such debt we can't actually get out of it in the future.
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>> i look at the budget closely when it comes to water and bond and basically what's going on at the state level every dollar we bring in based on water bond that we are passing, that dollar goes to the previous bonds, right, which if you think about it doesn't make sense. it's crazy because you're basically borrowing to pay back what you borrowed in the past. that's something we wouldn't be in that position or situation. and on this smaller scale i know the complexity is smaller and trying to understand what goes in and goes out and relationship with the bonds we are issuing
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all those relationships in a way we want them to stay rather than 10 years from now and saying maybe we should not have issued done that. that's a simplified version whatever i was trying to get at. [please stand by] .
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>> -- of our projections for sources and uses, and we're happy to, obviously, go into details in terms of what's incorporated in those, so it's our best show in terms of what we think will be in the calendar. >> thank you so much. >> commissioner harrington? >> maybe to add to that a bit, you know, if you go back before the water system improvement
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program, [indiscernible] but you're stuck with it. we had a big decision to make when we were getting off of bottles, realizing that this was going to make a huge portion of our budget. how much debt can you go into before it's inappropriate, and it's an interesting conversation because you have to figure out how to do that because they were more concerned that you might have to take on [indiscernible].
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>> you're muted. >> i'm sorry. madam clerk, would you open up the item for public comment. >> clerk: members of the public who wish to make public comment on item 9-a, dial 415-655-0001, meeting i.d. 146-067-9420, pound, pound.
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to raise your hand press star, three. mr. moderator, do we have callers? >> operator: madam secretary, there are no callers in the queue. >> clerk: thank you. public comment on item 9-a is closed. >> thank you. let's go to the next item, which is the water supply outlook [indiscernible] so i'm going to call on mr. ritchie to make the presentation. [indiscernible]. >> -- so the effects of the tuolomne river diversion curtailment, they went into effect on august 20.
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the curtailments eliminate extensions in [indiscernible] that's a very important point. we are releasing water from cherry lake and lake eleanor so that we can divert water into hetch hetchy. in other words, we're releasing water flowing into cherry and lake eleanor and we're releasing stored water from cherry lake and lake eleanoras we bring in the water, so the net amount of water going downstream is the same. we've requested a health and safety exception or diversions allowing us to divert enough water to supply 55 gallons per capita per day to our entire service area, but there are conditions for that, and that's the path that we're heading on is to start fulfilling those
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conditions. next slide. so we did an analysis of potential impacts if the drought persists. this is what i was talking about with commissioner moran. i talked about our design drought as being a stress test. we utilized prospective drought for operational purposes, which is the add-on that we used in the design drought, so in this case, we are taking our current state of affairs and adding extreme drought from 1976 and 1977, followed by some recovery that occurred in 1978. and under the scenario, curtailments are likely to be extended through august 2023.
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what happens if a health and safety exception is granted, so 55 gallons per capita per day for the entire service area. so what i'm going to show is not a prediction by any means. it's a what if if these things happened and what kinds of actions would we need to be taking? next slide, please. okay. this starts on september 1, 2021 and ends on september 1,
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2024. on the left is total system storage. if we have total storage that is down in that zone, we're getting very close to having those storage left, so we have to be really cognizant of that. so up there on the top, there is a curve that is total system storage that, right now, as we're getting close to the end of 2022, is about 900,000 acre
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feet. down at the bottom is what we call total deliverable storage, and that is a line about 360,000 acre feet below total system storage. that is the amount of water that we have in storage that we can't actually utilize, and that's a very important consideration. you see that there's a little signal there that the curtailment is scheduled to end in august 2023. currently, they're scheduled to end in august 2022, but if we had two dry years, the curtailment would continue another year. next animation.
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okay. so that red or orangish dash line, that's total deliver, and that reflected 177 million gallons per day demand. so if we start soon and cut demand by 10%, our storage will continue to go down and go down and go down, and basically under that scenario, without doing anything else, we would pretty much run out of water near the end of 2023, and that's, of course, not where we want to be. next animation. so that purple dotted, dashed line, that starts to divert away from the orange dash line is what if we got a health and safety exception to the curtailments, and so you can see that that gives us water
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that we can utilize and make deliveries from over time, so storage is actually increased by those. it starts to come down with demands, but eventually, we make it through two dry years or two really dry years and then start to come out of it in 2024, which is the equivalent of 1978. so -- >> quick, quick, quick question. just two words. don't want to interrupt you because this is good to see. health and safety exemption, please explain that. >> yeah, that's the health and safety exception to the curtailments that we initially requested. you had to put in your request right away when you acknowledged that you were going to comply with the curtailment orders, and so what you have to do is request it, but then, you have to carry out
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certain things. one, you have to make sure you're using all of your alternative water supplies. two, you have to declare a water supply emergency, and three, you have to institute enough water use reduction as shown to make a difference. but water use reduction, we run out of water. 20, 30%, it gets a little better, but this is not something that we can conserve our way out of. >> thank you, steve. >> so that's kind of the punch line on this. and so try to here graphically demonstrate some things that are itemized in the bullets on
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the next slide. health and safety exception through both years does add 275,000 acre feet over the next two years. the system effectively refills by july 2024, assuming no other changes. so the bottom line out of all of this, and the result of this analysis is we need to focus on two things. one, finding a way to regain access to water bank, which is what we're trying to
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accomplish. so this was done in a fairly short fashion. a lot of staff work and analysis went into understanding those numbers. we are pushing forward recycling water program in san francisco, we are doing things like that, but having lost that 360,000 acre feet of water bank storage really does put us in a pickle. it's as if we had another 1.5 years tacked onto the two years of drought we've already had overnight by the curtailment. so all of a sudden, we're starting to enter the fourth year of the doubt instead of the third year, so be happy to
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answer any questions about this. >> yeah, steve, i have one. this analysis is looking at with 2.5 years. when we talk about design droubt, we talk about 8.5 years. can you talk about the differences in process that are reflected in those two analyses? >> yeah.
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>>. >> if you look. >> -- then that might drive you to a very different kind of
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conclusion. i think it also -- we've spent enough time talking about that design drought and what it means and how to think about it, and we're going to revisit that in the next year. i think it would be good to have this discussion for how this current drought reflects in the design drought and what lessons do we take from that? >> i think we can do that, but just to emphasize, the design drought is for longer term planning purposes, but here, we're in the middle of what this drought is actually turning into right in front of our faces, and so that's why it won't be a very simple comparison, and it might be planned a little more aggressively. i would not be less aggressive.
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when you get into it, it's real-time, and it's not happening according to the plan. >> we just need to make sure that we are not planning on the assumption that this drought not only last 4.5 years. our experience is it can last longer than that, and we need to be planning for that. the planning we did during the last drought was very much this kind of plan, what's it like, and one of the things that we've learned is that's really not a sufficient window to be looking in. commissioner ajami? >> thank you [indiscernible] for your presentation. maybe then i'll ask you a different question. how deep can we go with savings? it sounds like quite
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disappointing to see that you are in a deep drought, much dryer and much severe drought, and we are asking people to reduce the drought by 10%. if i remember the last presentation, right now, water use in the peninsula is about 80 gallons per person per day, which requires a lot more cutting before we are at 55, so i'm just wondering if you looked at what -- you know, we can't get any of these exemptions that we want, we can't get the access to water bank, we can't get to many of these things. how are we going to balance this equation by looking at the map? >> you know, the 10% actually, as i mentioned, takes us down
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to the level we achieved at the end of the last drought, which was the 20-plus percent reduction from 2013. since 2015, demand has increased, and we have, since july 1, we've reduced about 8%. i think this will take us a bit more to get there, and so we will be actually asking a lot of people to get to the 177 level. if you take that to the 5%, that takes you down below 170, and things start to get a little tougher there, but i don't think they produce that line that much. even if we called for 30 or 40%, i don't think that that would necessarily get us out.
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we're trying to figure out what that number is. if we had to -- to rely on that is the obvious one. >> commissioner harrington? >> can we be helpful at all? what happens with this? how does that work? >> as i said, it was the access to water bank. we're -- we've communicated to the state board what the implications of their particular curtailment approach is relative to water bank. we haven't heard anything back from them, like, oh, yes, let's
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talk about that. we'll be pressing that at all levels in the state. on the health and safety exemptions, there's three or four things that we need to do. one is to make sure that you've declared an emergency, which i think -- i was personally thinking we would be getting to this maybe in january or so, but the curtailment issue, we really believe, needs to happen sooner so that we can get started on this. we need to demonstrate that we are using all of our alternative water supplies and we are requesting sufficient [indiscernible] from our customers to show that we are serious about that, and that they are contributing to the solution, as well, so that's where the emergency declaration gets us started on that path.
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>> the campaign will start after we declare the emergency. we've already communicated it to our public, and as i said, we've already achieved an 8% reduction since july 1, so we're seeing impacts out there that are pretty good. >> what would you like to see as some of the -- what would you like to see as the three key components to that strategy in talking to our customers? you just said they've been doing a good job, so what are we going to say to them? they've been doing a good job, but what? >> actually, the real key focus is going to be on the whole --
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limiting outdoor irrigation,
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and replacing old fixtures. those are the big three. always have been, always will be. >> so if you can use -- >> yeah, it's a nice thing. the numbers, particularly when we talk about percents, it
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doesn't mean much to people. one of the things that we did in the last drought and we're going to be doing in this drought, we had the green line, and we'll reintroduce the green line. if you're using less than this, way to go. you're a star. if you're using more than this, you want to get to where your neighbors are, so that was a particular tool that we used last time around. >> a visual that we're going to use? >> yeah. >> and in our media, we're going to do what? >> that's what we're working with right now on communications, on what kind of campaign we want to do.
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>> commissioner ajami? >> you know, the calculations, what does that mean, 80 gallons per person per day to 55, and that's water for basically 850,000 more people for a year, which is not a considerable amount of water. it's a lot of water. i would like to see what 10% reduction gets us here. i would like to see this is what gets us here, this is what
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gets us here. in the last droubt, -- drought, this is what people were using. so looking at the numbers that came out here in july, there are still some communities in the peninsula who -- actually, there are some communities that increased their water use, so there is a still some work to be done. i tell you, i drive down the street, i still see neighbors who are watering their front lawns and back lawns, and they should not be doing it, but they're doing it any way. if i don't have my kids yelling
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at me, mom, you shouldn't be going to yell at them, but we have people in san francisco using less than 55 gallons of water per person per day, and i don't think we have people running around saying i have health and safety concerns. so we should be doing our part, but we should be expecting just a little bit more than 10% from the peninsula. any of these options can go south, but we need to be a little bit more strategic about how we're balancing this equation in different ways. >> we'll provide that analysis. we'll see where it goes. >> commissioner harrington? >> just a request. i know it's really hard, but i am one of those 70% of our customers who don't get a water
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bill because i'm a renter, and so the green line doesn't do me any good. for the majority of our customers in san francisco, we need to figure out different communication strategies and different ways to do things because that by itself doesn't come to me, so as we're -- >> i use that as an example, and there are more things. that's why i talked about muni buses and other things, so it's a broader campaign than that, but we will get there. >> still, it can be great if we can ever get to the actual users. i know we don't need -- some way to do that would be helpful. >> commissioner maxwell? >> we hire consultants for everything else. maybe we should hire somebody
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who can help us get to those people that commissioner harrington is talking about and have a robust campaign. we don't want people to do this for this drought. we want this to be a way that we use water from now on. steve? >> okay. we will come back with it. >> and i think -- what's your timeline? >> we are looking at a timeline on the november 9 meeting, and after that, the came pain would probably be starting to be effective about the first of january. >> so what is your timeline of when you can come back to us? >> i will get with my people before i come back on it.
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>> okay. so maybe in november, you can come back with not a fast and hard date, but what you're thinking of? >> we will come back in november as part of that package. we will talk about our approach to the campaign, and where we expect to go with that. >> thank you. thank you. >> can we have public comment, please? >> clerk: members of the public who wish to provide public comment should dial
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415-655-0001, meeting i.d. 146-067-9420, press pound, pound, and press star, three to enter the queue. mr. moderator, do we have any callers. >> operator: madam secretary, we have one caller in the queue. caller, i have unmuted your line. >> david pillpel. i think it's about the water bank that changes the math on
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that. meters, to me, was one opportunity both in new construction but potentially also, where feasible, in existing multiunit residential buildings to get down to -- well, and frankly, in commercial spaces, as well, to get down to actual usage at the customer or dwelling unit or business level as opposed to at the account level, where that's possible, so perhaps not today, but perhaps in a future presentation, if we could hear something about where we're about on some metering and what that does to improve the precision that we can use going
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forward, but i'm interested in this. it's going to be tough going ahead in the next few months. thanks very much. >> operator: thank you very much, caller. additional caller has joined the queue. next caller, go ahead. i have unmuted your line. >> thank you. peter drekmeier, tuolomne river trust. i just want to say that there's a longer than normal between the video and the phones, up to two minutes, and i'm afraid some people that are watching and want to comment, it may be a little bit longer delay than it has been in the past. it's been a good discussion. hoping to hear more from the state water bank, and if i hear
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anything from the folks there, i will let you know. >> operator: thank you for your comments. additional caller has joined the queue. next caller, go ahead.
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>> [indiscernible] since we don't have community-based input in communication and water use. we don't have a culture of conserving water. i've moved here from the east coast. there was more going on there, but i'm thankful for the commission for bringing this up and asking for more information about community messaging on this topic. thanks. >> operator: thank you for your comments. madam secretary, there are no other commenters in the queue. >> clerk: thank you. public comment is closed, and i will pause for a little bit longer to allow additional callers.
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>> okay. thank you. mr. carlin? >> great. so back to the report. >> all right. good afternoon, commission president anson moran and commissioners. allen johanson, acting manager for infrastructure, today this afternoon, along with steven robinson, will be providing an update on where we are in the biosolids project at the southwest treatment plant. i'm going to hand it off to steven for the first slides, and then, i'll conclude. >> good afternoon, president moran and commissioners. actually, on this cover slide, this is a photo of one of the large excavations currently
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underway on the biosolids project. some of you have had a chance to get a look at the complexity and magnitude of this project, and we're here to give you an update. with that, we'll go to the second slide. we needed to pause and rethink our delivery strategy. we acknowledge that this project is large and complex, and the benefits of this cmgc and construction on this general contractor approach have not been realized up to this point, and it should have provided the ability to navigate the volatile market conditions that we're all experiencing, somewhat amplified perhaps because it's a large project. we concluded that we needed to adapt and evaluate the delivery approach, so in july of this year, over a period of two meetings, we came before the commission to ultimately authorize the general manager to enter into negotiations with
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the cmgc construction contract. we increased sfpuc leadership involvement. allen is the assistant general manager and myself as the director of the program.
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we committed to being much more closely involved to supporting the team during this time, and allen and i have taken a look at our own resources to do the work.
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>> we wanted a much level of higher cost certainty and we did it together as owner and cmgc the end result was the came in under our estimate compared to the base that we saw earlier in the year that triggered this we
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have proof that it is working much better and the way we expected it to. it gave us a data point to consider as we evaluated the hard to believe the rest of the project and inform that i'll hand it over. >> the team has been looking at other solutions to put it out as other contracts and we've listed seven criteria and i'm going focus on the first one and the last two. coming out of covid and really with the geopolitical and some of the supply chain issuing
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we're having it will be hard to pivot and put out packages that address that. if we go out to limited competition on packages, they're full packages designed to build, there's a tendency that risk gets bit into those packages because the contractors, i mean, let's face it, right now it's treacherous for contracts. if you look at the facility 600 it's a large contract and then we have a limited pool of bidders so that would in general, increase to 15%, 10% to 15% on the cost just because of the smaller bidding pool that can handle the project of that size so we're looking at cmgc being able to handle the scope of work. the other thing site logistics
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is just blow that is tied in. it's a tight site and we're good at dealing with tight sites and contractors working together but there's a schedule delay that comes with that and the cost when it happens and potentially it could lead into change order requests or claims. moving down to the second to the last criteria, this is always been a challenge. if we were to split it up, how do you take these various components delivered in different contracts and then have a commissioning period where it's all seamlessly working together. it's just much easier to do it with a single entity and multiple entities make it a lot more challenging. and on the last point, with the cmgc we can develop a pay for continue the pace we're going and work to keep the local labor force that is employed and
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continues to be and right size the package so we can spread the work and if we do go out to a larger contractors, they're going to have the same albe participation but they might not meet it the same way. it can be larger lbe contracts and there could be with starts and stops on the bid and award process there could be delays between the bigger contracts so we think it's an advantage to stick with the single cmtc contract. i'm sorry, i slipped on something. commissioner asked what other agencies i had done before or other owners and we did look at very particular there's dc water, new town creek in new york and they did bright waters
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and all of those they had broken up into multiple contracts and from the beginning not where we are farther along but they generally came back to us and said we wished we had one it in cun uniform contract because some of the issues that i spoke about earlier and it's different than the challenge we have on biosolids. so our next steps going forward, we would like to stick with the cmgc delivery of approach and we think this is the best way to
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hand this will as stephen mentioned the pivot we've been able to do with the westbound core staff has been significant and we've really seen results right sizing the packages and bringing the competition and the outreach that was performed was significant and it really you saw in the prices at the end and we feel that continuing in coordinating with mwh web core team we can handle some of the economic charges better for the remainder of the project so steve and i will be able to answer any questions that you may have. >> i have a comment, not so much a question. this is based on the fact that
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are as we took a tour down in the southeast, the other day, and i worked on multi contractor jobs because there are a lot of specialities and the general contractors is in my experience always been much more efficient in terms of and you have why want to talk about vanness. there are multiple agencies and multiple, even though there was a gc, there seemed to be and moving everything was working in
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a good way together. i do, without knowing all the details think was incredibly responsible fiduciarily responsible to go out and explore what it meant to have multiple bids and bundle them all up in a grocery bag and then maybe bring them all back home and try to remember what the hell you bought but i do think that that was important. i support, you know, the path that you are presenting right now in terms of bundling it in one package based on the fact that we all thought why the heck is that number so high right now and when they figure it out two
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years down the line, they're just going to say i covered my as s on that one and this was much more diligent so those are just my comments on the process where you have moved down and hopefully we're going to be in a position to approve, you know, the continuation of this incredibly historic and wonderful facilities and i think we've all now, i don't know if commissioner harrington has yet, but we've all toured the place at least once during our tenure here on the board. those are my comments. >> it sounds like you are kicking him in the side of the head strategy worked and thank you for coming up with it and good luck.
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>> we're not finished with him yet, commissioner harrington. [laughter] >> ok. >> i'm sure it's on going but it seems like that that come to jesus, i can say that, kind of worked. >> all right. well, commissioner maxwell. >> we've worked on both sides? >> coming to come conclusion besides what we need today do. how did we do with time? we saved some money and how are we with time? >> the schedule time wise? >> i think we're going to add time. i mean there's no way around it. we did hit the pause button for a while and it's hard to tell. i mean, we're kind of having to judge the marketplace but i think we'll probably add time.
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>> will it be a significant amount of time or do you think our efficiencies will save us as well? >> well, in conversations with the cmtc, they've been telling us hey, we really need to start bidding on the next packages and those to be the next in line so we can do the testing on the digesters and the pre treatment on the clinical path and that you said that it would be built if you had a lot of other contract and he is now that we've come back to our gmgc and we feel more confident, how
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about that work when we start putting all these things on-line together? you have to talk about it now but at some point i'd like to hear how you plan to do that? >> fort whole team to come together so now we get to plan together for this budgeting process and we'll absolutely be coming back with an amendment to the contract but also as part of the budget process and better understanding of what the budget looks like. >> thank you. >> ok. not seeing any other comments. madam secretary, can you open public comment. >> clerk: members of the public who wish to make two minutes of
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public comment on item 9c dial 1-415-655-0001 and meeting i.d. 146 067 9420-pound pound to raise your hand to speak press star 3. >> do we have any callers? >> secretary, we have two callers in the queue. >> thank you. >> first caller i have unmuted your line.
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>> caller, are you there? next caller. you have two minutes. >> caller: hello commission. my name is deric schmidt with marine ship development and we are local african american contractors and we've been in bayview hunters point for 29 years and you know, fortunately, we have been involved in this project for the last year-and-a-half on a very minor scale. and i understand the urgency and the need to rush, rush, rush, get this project done. i would love to see a little more transparency, to see how
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many of us in the neighborhood are performing work on this project. i agree with keeping the group that is in charge now on but it's like pulling teeth trying to figure out, you know, if we were successful on bids, if we were listed we spent a lot of time estimating on this project. and it takes us weeks to figure out whether we made any progress or not. and it's a little different when we bid directly to the puc and they open up the bids the day of and they explain who was listed and who ultimately will get the work. but with this set up, it's impossible for us to figure out whether we've gained work or not. and you know, i talked to everybody involved, everybody knows who we are. there's recently about $180 million in packages that were not awarded yet but released, and we still do know
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officially if we have any of that work or who have that work. they list 14% here but who does that 14% consist of. we need some help making sure folks from this community are getting work. if we keep pushing it down the road, we will miss out and this community deserves to benefit from this project. thank you. >> thank you for your comments. returning back to the first caller. caller, can you hear me? >> caller: can you hear me now? >> yes, thank you. >> caller: too many issues with muting and unmuting and devices and all that. david pillpel. on this issue, i was skeptical a couple of months ago when staff asked for time to negotiate but it sounds like things got better as a result and maybe there's something about a kick to the
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head and i hope you are not the kicker and i am not the head. in any event, despite your discussion a few minutes ago i'm not clear exactly what lessons were learned from the van ness avenue situation as to cmgc delivery methods that have been considered here. i mean, they are in my view, there can be advantages to cmgc and there can be disadvantages so understanding approach and charting a narrow path through the shark infested waters, is critical and maybe that's happened here and maybe there's some stuff that can be documented about that going forward. i'm also not clear what the over all cost and schedules implications are for the project and the ultimate impact on rate payers and i thought that a few months ago there was a billion
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dollar problem and i'm not sure what this brings it down to and finally, is delay to availability for reuse of the southeast plant south side real estate with existing digesters are fact order in and i'm not sure what the ultimate use of that land is going to be but i hope that planning for that is running in parallel and that any delays from change in project delivery here is not going to have as much of an impact on reuse of that site because the delay of a year or two. >> sorry caller, your time has expired. madam secretary. >> public comment on item 19 is closed. >> moving on to last but not
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least -- >> commissioner maxwell. >> i'd like to give back to what one of the callers mentioned and local hiring local participation. you mentioned that you were going to have smaller packages, it seems that might be an opportunity. is that what you are thinking and when and how will we make that happen? >> so, yes, i did hear some comments and mr. smith was among some of the people who contacted me and we are making improvements and i spoke with the team on this cmgc and we discussed some of the -- some of about what we can do on the outreach and the right sizing the packages moving forward and we also discussed the concerns deric had with notification in terms of the bidding too and so we'll follow-up with that also. it's a concern. >> yeah and i think also, we have a model and you mentioned
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that we were the model. he said the san francisco puc, we know almost the next day we know. so, if we know how to do it, i think it behove us to talk to our other folks and have them do it the way we do it. >> agreed. >> this is our project and they're working for us. >> we can talk to the joint venture about that. >> great. thank you. >> will you get back to us about when you come up and how we are going to fix that problem? >> yes, i will. >> thank you. >> were you raising your hand? >> i was but i'm not. i'm taking it down. >> ok. >> thank you. >> next is the employee vaccination status you've asked about this and i want to preface this a little bit before i ask
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justine to make the presentation. we do have a continuity of operations planned which we were update ong a weekly basis. i want to assure you if we have a gap in the types of people that we need to provide service, we will fill that gap. right now we are focused on this and why think we're going to lose service in any one of our areas. that's still a concern of ours as we move forward. the city makes mandates such as contractors now have to be vaccinated. and that has we're going to get clarification from the city administrator this week and when we have to information we can figure out how we're going to incorporate our contractors into this discussion. justine, go ahead and show what our employee vaccination status is as of today or so.
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>> thank you. hi, commissioners. nice to see everybody again. my name is justine and i'm the chief people officer here at the puc. we're going to be talking about our employee vaccination status and i'm going to take you through some background to understand the mandate that we're talking about, what we've done so far, take you through some analysis to illustrate the potential impact on our workforce and we can talk a little bit more about contingency plans moving forward and then take any questions. next slide, please. so the mandate that we're talking about is a city wide mandate and every single employee must be vaccinated by
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november 1st. there are religious processes available and we had about 90 or so of those exemption requests pending and it's a fairly specific process that we're going through with consultation through the city attorney's office as well as the department of human resources, the city department of human resources. so that we are working and collaboration with them on those as is every other city department. the impact for not complying with this policy is essentially separation and so non-compliance can mean either you are not vaccinated, or you have not reported your vaccinations status. depending on what our employees
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appointments are, whether they're in an ex element position or permanent civil servant, their separation kind of comes by way of different practices and exempt appointment would be released from their appointment, a permanent civil service employee would be terminated through the disciplinary process. so, we're not looking at our data as of today, because it does take a bit to do some analysis so we're looking at september 30 data. this is essentially changing every hour so it's really hard to give you real-time updates. i will give you more specific to date percentages as we go. but this will give you a sense of where we are so you can kind of understand how we're
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approaching it. some of the analysis that i'm going to show you involves a representation index and that is a way to show you the impact on our employee workforce so, it will show you essentially if it's impacting a certain demographic group higher or impacting them more than you would expect given the make up of our agency workforce. next slide, please. so, so far, we've done it a lot to support our agency and our employees to comply with this mandate and we've done weekly ways which i'm sure you are familiar with and that essentially an on-line recap of top stories within our agency
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and we've done done eight news letters from my group to all agency and when we do that we and we hand it out if folks want to read them personally. we've also done targeted communications so targeting the very population that we're talking about. the non compliant employees through e-mail and paper letter like through the mail and we've had within the seal and a country of moccasin that we have
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promoted and gotten lots of folks to come to and we've done informational or educational events, sometimes again in conjunction with these other communications that we've done. i really want to give a shout out to margaret and her folks up at moccasin because they've done a tremendous amount to educate and support their employees to understand this policy and the impact of non-compliance. so, thank you to margaret and everybody up there. so moccasin themselves have did not a fair amount of vaccination clinics they've also invited folks from within their tuolumne community to come in and answer questions that imposed by their various employees and it helps people to have people on the ground and connected to the community to answer those kinds of questions.
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we've had virtual forums that my team has put on and specifically targeting divisional support staff because a lot of those folks also get questions and their taxed with helping people understand how to up load information and up load their status. they can point them to resources so that's been helpful and city events have included ask the doctor table or the vaccination events we'll have city doctors there to answer various questions that folks may have and i think i mentioned this already, one-on-one conversations included lots of different resources and those conversations we pushed to have supervisors or folks within the chain of command to have those conversations because it's a lot more impactful coming from someone that you work with day in and day out as opposed to a professional who you may not know that well.
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lastly on the this, the city's software up to load your vaccination status is all electronic and for some of our employees can be a little tricky so we've provided dedicated staff to support that process and that actually helps a lot with making corrections if there were errors and so you can see at end of september we had done over 400 record up loads for various folks so that has been a help too. next slide, please. now we're getting into that the impact and keep in mind we're talking about the data is changing and hour and we're
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looking at 12% and folks that aren't fully vaccinated and haven't reported their status and it's broken out demographically here. this is a number i can give you this morning. we were at 10 and a half percent so you can see that a lot of our efforts -- it's chipping away at it and it's not going to resolve it entirely, right. so, at 10 and a half percent non-compliance rate is somewhere around 235 employees to give you a sense. next slide, please. so here we're looking at one of our representation index analysis and so this way you can see, you know, are we seeing at a higher impact in various different demographic groups and if you see in the red there,
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anything that has a number greater than one is essentially an over represented group compared to the agency workforce. and we have a hard time here. i will say under alaska native as well a small population size there and that demographic so really one person can make that number jump up, right, but really where we're seeing the hardest hit group is our black employees and they are the most over represented ethnicity in our non compliant group thus will likely be over or more represented in the disciplinary process and we also have a high hit in our white males and similar to our american indian and alaskan native our multi racial group is fairly small
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population so you are again, that's going to be a hard number to really gage. so here what we're looking at are the same non compliant population but only our exempt employees and the reason why i'm pointing this out is because it's a different process for separating an exempt employee versus a permanent civil servant. a permanent civil servant passed probation they have property rights to their job, they can only be separated through a disciplinary process with a meeting and they received notice and it's basically due process rights for those folks, right.
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and exempt employees don't have that property right so they are essentially at will, that's a fairly fair you can see a number above one is over represented group compared to our agency
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workforce. we see a female black employees. they are the group across the agency. >> how many people are we talking about there? >> i'm sorry. could you repeat it? >> how many people are we talking about in this whole exempt group? >> you know, i don't have that number off the top of my head but we do -- we're talking total about 230 or so people. so, really, we're at about 10 and a half percent of our total population. i'm sure i could text someone and find out what our exempt numbers are if you would like me
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to. let me see if i have it. i think as of this september 30th, date, we're probably talking about 6 o or so people from population standpoint. >> that's non compliant or in total. >> exempt non compliant. >> you have 2% that represent 60 of them. >> this isn't 2%, right. this is a different -- >> it's surprisingly large number of exempt employee. you have 60 non compliant. >> yeah, we do. i mean, we're at way 2200 employees and is over it may be
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more than you were expecting for sure. i'm going to go to the next slide. and so lastly i'm looking at our apprenticeship program and i'm highlighting this group because it's workforce development bringing folks up into our organization and we have over all about a 27% decrease across our programs and if these folks end up being non compliant at the end of the day when this policies comes into effect on november 1. and unfortunately, all of our non compliant apprentices are in the second phase of their apprenticeship program and these are all multi-year programs so we're talking like four years or so on average and if they're in their second phase then many of them would be finishing our
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completing their apprenticeship program within 12 months or so so i'm highlighting this because of the impacts to them specifically. the impact to our folks coming upbringing new people into our pipeline and because it does take a lot to take these programs and i know that from personal experience. other things that i would like to highlight beyond the real-time data for our 10 and a half percent as it was this morning, we have about six job classes that have zero compliance and most of those are single person or two people job classes and none of them are entry level. and you may think that that's kind of a good and a bad thing, really, because it could be a potential promotional
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opportunity for some folks and it loses a lot of institutional knowledge and for some of our lines that could be pretty drastic. and i will say that's just going to compound the problem because then we'll have to back fill people who wore promoting so it creates a lot of turn so you can kind of look at it in different ways. we have over all, about 26 classes with 33% or higher non-compliance so in some of those classes we could be talking about a handful of people and in others where we have larger classes, or learning numbers of people in a class that could be a significant amount of people. so, some things that we are doing in addition to what michael mentioned about
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emergency contracting, my team and i have already put together basically a hiring strategy should this come to fruition and what we would need to do from hiring activities stand points. i am already in conversations with department of human resources who understand how we may be able to utilize the mayor's 37th supplement to the emergency declaration which has emergency provisions about hiring and how we may be able to hire differently than the normal city process through civil service processes, which are extremely lengthy and complicated. so, i actually have had lots of conversations already about that but we're meeting later this week to really see how we might be able to utilize that
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provision. and you know, we will not stop in communicating with our folks to try and encourage it. i will say a little bit of reality settings may be kind of coming into focus now because folks know about it. they know about the mandate. they know really what the impact potentially could be. ultimately, it's their decision. [please stand by]
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>> there's not a whole lot. so is our department of public health involved in that and looking at what you can use as a medical exemption? >> there is a doctor in the department of human resources
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who was brought on specifically during covid. and in working with them, that is how they are being evaluated. it is a very limited exemption. >> and then, when you think about emergency hiring, what does that mean and what does it mean for us, diversity, and how we are looking -- if things go the way they are, we will be losing a lot of people of color. how are we, as we talk about emergency and hiring, how are we looking at that and of the country as well? when we look at who will be involved that will be people who may be surprised and may not be. how are we looking at emergency and how it -- and who we are losing? >> i would say this right now. we are still waiting for
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guidance from the department of human resources on how that would roll out. i would expect that we would apply an equity lens as we go forward. it depends on what the rules are for emergency hiring at that point. a number of the unions have people in the hiring halls right now. i don't want to say we can be selective, but we can be discriminatory on how we want to hire going forward. that is something we can look at. >> when we talk about, you know, the process of -- we need to pull all the stops out. everyone should see this information. it doesn't hurt anything for us to make sure that it is in people's hands. we know who these people are who are not vaccinated. is there any way we can drop them -- drop them a letter or have the mayor call them up and say, hey,, what are you thinking
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about? it's like a campaign for me. i would call people and say this is sophie maxwell they would say oh. everything would change. can we think about those kinds of things? i know it's only 200 and some old people, but when you mentioned that some of these people have been here a long time, and we lose them and we're losing a lot of knowledge. it's more than just that one person. >> for sure. we have done those one-on-one communication campaigns. through conversations, also direct e-mail, direct letters, so we really have approached it from a multimedia standpoint, if you will. we really have catered to creating events for informational sessions to address some of the folks who have concerns. hesitations, misinformation, whatever it may be.
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we absolutely have approached it from that one-on-one targeted perspective. >> is there a problem with us doing -- there's only 255. is there a problem -- i look at wiccans on basketball. who is he with? the warriors. he was being hold out. i don't know if staff or somebody called in, but all of a sudden he did an about-face. i'm just thinking, is there a possibility that we could get somebody, a friends, somebody -- i know we have done a lot and i appreciate all that you have done. i am just asking if we can possibly try to get across the finish line because that emergency, the emergency hiring to me can get problematic because sometimes they don't ever leave.
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and at any time in the process, if i am one of those people that is going to be going through the process, can i go and get a shot and be reinstated? >> yeah. >> we are hoping that folks get to that finish line, as you say, and if we see that working in that direction, then we will be working with the department of human resources to really pause and allow the person to get fully compliance. absolutely. i think it is being termed as an amnesty programme for folks. >> okay. a lot of things can happen. >> yes. it can happen through the process. we are not embarking on the disciplinary process until after the november 1st deadline has come and gone. but at that point, you know,
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honestly, sometimes seeing that kind of a notice sometimes can be the tip on the scale. you never really know what will reach someone. we have tried all these different things and maybe that is what five of the people need. >> okay. thank you. >> i hope you are right. >> thank you. not seeing any other comments, madam secretary, would you open for public comment? >> members of the public who wish to make two minutes a public comment on specifically on these items can dial in now. to raise your hand to speak, press star three.
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do we have any callers? >> we have two callers in the queue. i have on muted your line. go ahead. >> thank you. i will maintain to you that this is very, very important. i believe in the importance of vaccination. i am vaccinated myself. testing is present and backward looking. it gives a status of where you are at today and in some cases,
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the historical status. testing does not protect you going forward, but vaccination does. the overwhelming importance of safety, and keeping the safety going is through vaccination. the odds of losing employees to covid is greatly diminished with vaccination. as you know, employees of the p.u.c. are out in the world in positions that face and work with the public. and because these are essential services of the city and we can't do without having the workforce is paramount. it's something that people will have to do. i ask that you stand strong and
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not get cold feet when it comes to this. i have worked a number of jobs in my life, including serving in the military, and especially in the military there is something called obedience to orders. we can't forget that. i ask that you impress upon employees the importance of obeying lawful orders. and as i see it, vaccination is a lawful order. you made you lose a few people, but i'm guessing most will realize that these are good jobs and it's hard to get good jobs in this state and age. i ask you stand strong. >> thank you. your time has expired. next caller. i have on muted your line. >> can you hear me now? >> yes. >> go ahead. i made earlier comments under item five that relate here. i did not know how extensive this item was going to be.
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anyway, i would like a copy of the presentation here. this is exactly why, in my opinion, all presentations should be posted. it has very important information and is not currently posted on the web. it will be very interesting to see how this issue runs up against efforts on the racial equity action plan on the one hand, and a lot of time and energy has been put into improving concerns and sensitivity and actions on racial equity. if people are separated for not being vaccinated or not reporting their status, that will have a completely disproportional impact and really set back much of the effort on racial equity. i am concerned about that. i predict, as i suggested in my
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earlier comment, a significant change in p.u.c. staff, including senior staff in the next few months. i believe six months from now, by the spring, we will see a very different management, mid-management, and to some extent, field staff. there is that. i hope i am wrong, but that is what i believe. this is very serious to me and seems to be a substantial risk, challenge, and opportunity for the p.u.c. to get through and impacts not just h.r., but frankly the entire organization. i hope that everybody is taking this seriously as i am. i believe they are, and whether it's continuity -- >> your time has expired. there are no other callers in the queue. >> thank you.
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public comment is closed. >> that concludes my report. >> thank you. madam secretary, would you call the next item, please? >> next item is item 10, new commission business. >> is there any new business from commissioners? seeing none, madam secretary, please read the next item. >> before i read the next item, i want to make an announcement that commissioner paulson had to meet -- leave the meeting prior to the last presentation from our h.r. director. he left at 4:35 p.m. our next item is item 11, the consent calendar. all matters listed here under constitute the consent calendar are considered to be routine. they will be acted upon by a single vote of the commission. there will be no separate discussion of these items unless
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a member of the commissioner the public risk -- so requests, in which request it will be removed and considered as a separate item. i did receive a request from a member of the public to remove item 11 a and 11 b. for discussion. >> that being the case, we are foreseeing that they are regular calendar items. >> i believe so. city attorney, can you confirm? >> i will take that as a yes. >> sorry, i was on mute. i am futility's general counsel. it is your choice how you would like to proceed even the request. it is at the call of the chair. >> thank you. madam secretary, if you would call 11 a.
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>> eleven a is approve amendment number two to agreement 1075 and authorize the general manager to execute this amendment by one year for total renumeration of six years with no change to the agreement amount. it is presented by a.g.m. ritchie. >> i am the assisted -- assistant general manager. this is the item that is with the aquatic science centre. the aquatic science centre is a jpa between the state water and resource control board and the bay area clean water agency his association. the question -- this is basically an extension of work in terms of interpretive information on the watershed based on the historical ecology report that the aquatic centre prepared. in this case, the question was why where there no requirements
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for this contract? the agreement basically was posed versus an m.o.u. because it is in agreement with the public agency. it's not -- it's not relating to any construction project. in that case, 14 b does not apply. there are no requirements from any other kinds of participations. i will be happy to answer any questions. >> are there any questions? seeing none, madam secretary, please call for public comment. >> members of the public who wish to make two minutes a public comment specifically on consent calendar item 11 a, which is -- you can dial in now. to raise your hand to speak, press start three.
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do we have any callers? >> there are no callers in the queue. >> thank you. public comment is closed. >> okay. commissioners, is there any other additional discussion? can i have a motion and a second? >> so moved. >> so moved. >> moved and seconded. please call the role. [roll call]
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you are on mute. >> hi. >> thank you. [roll call] you have from front yes. >> thank you. please call 11 b. >> eleven b. is approve the specifications and work contract debbie debbie 710 are in the amount of $1.2 million and with the duration of 570 consecutive calendar days. the responses to -- the responsible bidder. mr. fung? >> good afternoon, president, commissioners. i am the manager of the project management euro. can you hear me? i'm sorry. okay. today i'm seeking your approval to award this contract to the responsible bidder submitting
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the lowest responsive bid solutions. this is to perform cleaning and video inspection of the existing stores on an as-needed basis. this will help supplement wastewater enterprise staff's ongoing self perform inspection work and to assist with their inspection data collection for the asset management programme. we received two responsive bids and there was a protest filed by the second bidder. after careful review and in consultation with the city attorney, the protest was denied. staff is recommending the approval to award this contract to pipe and plant solutions. i'm happy to answer any questions. >> commissioners? seeing no questions, please open public comment. >> members of the public who wish to make public comment can
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dial in now. raise your hand to speak by pressing star three. do we have any callers? >> there are no calls in the queue. >> thank you. public comment on item 11 b. is closed. >> thank you. commissioner harrington? >> a question that maybe the city attorney can respond to now or later, is it really true that anyone can send us a letter that would take everything off of our
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consent calendar for every meeting should they choose to do that? even if they don't show up or talk or do anything? do they have to be here or can they just do this? it would be nice to know that for the rules for the future. >> again, this is utilities general councillor. commissioner harrington, as i said, it is the call of the chair specifically. a member of the public can request that the matter be removed from the consent calendar, but it is not required that the commission can see to that request. it is to the call of the chair to take something, to move something from a consent. if an item is properly on the consent calendar based on the commission's guidelines, and the member of the public or anyone else requests that it be removed, that is a decision typically for the chair to take
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an item off. >> it's very interesting. we will have to think about that again. >> yeah. [laughter] that is just very different than i thought the case was. >> i wonder, if you keep it on consent calendar and then if someone is really concerned, then they can call here in public comment and ask for it to be removed from the consent calendar. that way you know there is a concerned authority he will be commenting on it. >> yeah. you are right. that might be the best way of dealing with that. commissioner maxwell? >> i'm thinking there might be a criteria that we can go by and maybe that is one that someone has to be on the line. as ed mentioned, they can do it for every item.
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i think there needs to be -- if we have that in writing from our city attorney, then we know we are on good footing. and if there is, you know, that might be a smart move. >> let me ask the department and the secretary to give that some thought as well and to give us a recommendation as to how to proceed. for that, for 11 b., can i have a motion and a second? >> i will move. >> i will second. >> moved and seconded. roll call, please. [roll call]
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you have from -- yo for yes. >> thank you. madam secretary, please call the next item. >> next item is item 12. adopt findings under new state urgency legislation to allow remote meetings during the covid-19 emergency, and it -- continuing remotely for the next 30 days and addressing the secretary. >> good afternoon. this is an unusual item. this is also for -- this will be a consent item moving forward. it is the first of this motion,
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of the type of motion that is generated as a result of the change to state law that requires policy bodies to adopt every 30 days findings concerning the continued remote meeting. so in compliance to state law, as well as local law and local orders, this is the motion that will enable the public utilities commission to continue meeting remotely. it is quite self-explanatory. i am able to answer any questions. >> they raised the question about sequencing. is it important that this be adopted at the beginning of a meeting or the beginning of the month? >> this is the first one.
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it's not critical that it be at any critical time at the meeting. my recommendation is that it just continue to appear on your calendar as a consent item for you to make that motion. >> okay. i just want to be clear. it takes us quite a while to get to the consent calendar. >> again, the commission can choose to take this motion. >> thank you. all right. any questions? public comment, please. >> members of the public who wish to make two minutes of public comment on item 12 can now dial in.
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to raise your hand to speak press star three. do we have any callers? >> we have one caller in the queue. i have an muted your line. go ahead. >> on this issue, the city attorney has a detailed memo about the law and the current status of public meeting laws on their website. it's dated september 28th. as i indicated earlier, i would have this item first on the agenda in the future.
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either someone else in the city attorney's office who advised a body in the last week or somehow i got the idea that in the event that a body does not adopt these findings at a particular meeting, that all they can do is adjourn and any action taken would be null and void. that's why it is imprudent to be made even if it is not technically required to have this be the first order of business. i don't anticipate this will be controversial, but i could be wrong. in the last results, a couple of things i wanted to raise. they're two references to the secretary. i might capitalize the s. and secretary. it has been driving me nuts that the last line in the final resolve is incorrect.
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it goes back to the impact that the city attorney prepared and there was just a minor wording issue there. if you choose to fix those things that would be great. if not, you know, i believe it legally complies. i think i have said enough for the day. thank you for listening to me. i appreciate it. >> thank you. >> thank you. president, there is another caller who has joined the queue. >> we want to talk about the basics of this item. this is coming up in a lot of public bodies around the city and state.
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i maintain the importance of inclusive themes of participation. having these meetings in a virtual format allows people, like myself, to be able to engage with you without having to come to city hall. i am about 600 miles from city hall right now. san francisco is always with me. i am a person with disabilities. there are many who can't come to city hall for various reasons. [please stand by] moved.
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>> it is moved and seconded by commissioner. roll call please. [roll call] >> we have four ayes. >> thank you, madam secretary, is there any other business to come before the commission? >> no mr. president, that concludes your business for the day. >> thank you. thanks again commissioner maxwell for her service as our
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past president. this meeting is adjourned. >> wait, wait. >> whoa. >> i want to thank you for all the times i called you when i was frantic saying oh my goodness. thank you so much for everything. no one knows the real side. thank you and thank you all. >> okay. >> thank you. we are adjourned.
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a city like no other, san francisco has been a beacon of hope, and an ally towards lgbtq equal rights. [♪♪] >> known as the gay capital of america, san francisco has been at the forefront fighting gay civil rights for decades becoming a bedrock for the historical firsts. the first city with the first openly gay bar.
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the first pride parade. the first city to legalize gay marriage. the first place of the iconic gay pride flag. established to help cancel policy, programses, and initiatives to support trans and lgbtq communities in san francisco. >> we've created an opportunity to have a seat at the table. where trans can be part of city government and create more civic engagement through our trans advisory committee which advises our office and the mayor's office. we've also worked to really address where there's gaps across services to see where we can address things like housing and homelessness, low income, access to small businesses and
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employment and education. so we really worked across the board as well as meeting overall policies. >> among the priorities, the office of transgender initiatives also works locally to track lgbtq across the country. >> especially our young trans kids and students. so we do a lot of work to make sure we're addressing and naming those anti-trans policies and doing what we can to combat them. >> trans communities often have not been included at the policy levels at really any level whether that's local government, state government. we've always had to fend for ourselves and figure out how to care for our own communities. so an office like this can really show and become a model for the country on how to really help make sure that our entire community is served by the city and that we all get opportunities to participate
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because, in the end, our entire community is stronger. >> the pandemic underscored many of the inequities they experienced on a daily basis. nonetheless, this health crisis also highlighted the strength in the lgbtq and trans community. >> several of our team members were deployed as part of the work at the covid command center and they did incredit able work there both in terms of navigation and shelter-in-place hotels to other team members who led equity and lgbtq inclusion work to make sure we had pop-up testing and information sites across the city as well as making sure that data collection was happening. we had statewide legislation that required that we collected information on sexual orientation and our team worked
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so closely with d.p.h. to make sure those questions were included at testing site but also throughout the whole network of care. part of the work i've had a privilege to be apart of was to work with o.t.i. and a community organization to work together to create a coalition that met monthly to make sure we worked together and coordinated as much as we could to lgbtq communities in the city. >> partnering with community organizations is key to the success of this office ensuring lgbtq and gender nonconforming people have access to a wide range of services and places to go where they will be respected. o.t.i.'s trans advisory committee is committed to being that voice. >> the transgender advisory counsel is a group of amazing community leaders here in san francisco. i think we all come from all walks of life, very diverse, different backgrounds, different expertises, and i
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think it's just an amazing group of people that have a vision to make san francisco a true liberated city for transgender folks. >> being apart of the grou allows us to provide more information on the ground. we're allowed to get. and prior to the pandemic, there's always been an issue around language barriers and education access and workforce development. now, of course, the city has been more invested in to make sure our community is thriving and making sure we are mobilizing. >> all of the supervisors along with mayor london breed know that there's still a lot to be done and like i said before,
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i'm just so happy to live in a city where they see trans folks and recognize us of human beings and know that we deserve to live with dignity and respect just like everybody else. >> being part of the trans initiative has been just a great privilege for me and i feel so lucky to have been able to serve for it for so far over three years. it's the only office of its kind and i think it's a big opportunity for us to show the country or the world about things we can do when we really put a focus on transgender issues and transgender communities. and when you put transgender people in leadership positions. >> thank you, claire. and i just want to say to claire farly who is the leader of the office of transgender initiatives, she has really taken that role to a whole other level and is currently a grand marshal for this year's s.f. prize.
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so congratulations, claire. >> my dream is to really look at where we want san francisco to be in the future. how can we have a place where we have transliberation, quality, and inclusion, and equity across san francisco? and so when i look five years from now, ten years from now, i want us to make sure that we're continuing to lead the country in being the best that we can be. not only are we working to make sure we have jobs and equal opportunity and pathways to education, employment, and advancement, but we're making sure we're taking care of our most impacted communities, our trans communities of color, trans women of color, and black trans women. and we're making sure we're addressing the barriers of the access to health care and mental health services and we're supporting our seniors who've done the work and really be able to age in place and have access to the services and resources they deserve.
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so there's so much more work to do, but we're really proud of the work that we've done so far. [♪♪] >> candlestick park known also as the stick was an outdoor stadium for sports and entertainment. built between 1958 to 1960, it was located in the bayview hunters point where it was home to the san francisco giants and 49ers. the last event held was a concert in late 2014. it was demolished in 2015. mlb team the san francisco giants played at candlestick from 1960-1999. fans came to see players such a willie mays and barry bonds,
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over 38 seasons in the open ballpark. an upper deck expansion was added in the 1970s. there are two world series played at the stick in 1962 and in 198 9. during the 1989 world series against the oakland as they were shook by an earthquake. candlestick's enclosure had minor damages from the quake but its design saved thousands of lives. nfl team the san francisco 49ers played at candlestick from feign 71-2013. it was home to five-time super bowl champion teams and hall of fame players by joe montana, jerry rice and steve jones. in 1982, the game-winning touchdown pass from joe montana to dwight clark was known as "the catch." leading the niners to their first super bowl. the 49ers hosted eight n.f.c.
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championship games including the 2001 season that ended with a loss to the new york giants. in 201, the last event held at candlestick park was a concert by paul mccartney who played with the beatles in 1966, the stadium's first concert. demolition of the stick began in late 2014 and it was completed in september 2015. the giants had moved to pacific rail park in 2000 while the 49ers moved to santa clara in 2014. with structural claims and numerous name changes, many have passed through and will remember candlestick park as home to the legendary athletes and entertainment. these memorable moments will live on in a place called the stick. (♪♪♪)
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