>> we have quorum. >> okay. before calling the first item i'd like to announce the (coughing) excuse me - excuse me - are on the unceded ancestral homeland of the ramaytush (rah-my-toosh) ohlone (o-lon-ee) who are the original inhabitants of the san francisco peninsula. responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory.

elders, and relatives of the ramaytush ohlone community and by affirming their sovereign rights as first peoples. (clearing throat) can we have the first item. >> 3. approval of the minutes of november 14, 2023, >> any corrects only is minutes seeing none, open up for public comment please. item three. >> i don't see any individuals wanting to provide comment. >> nobody on public comment. is

there anybody in the room would like to comment seeing none, motion to approve the minutes. >> so moved. >> second. >> motion and second roll call on is approval of the minutes. >> president paulson, aye. >> commissioner maxwell, aye. >> commissioner stacy. >> 4 i's have four commissioners welcome commissioner ajami and now have the madam secretary open up for public comment for general public comment on item 4. >> any members of the public to provide comment on matters within the commissions jurisdiction and not on today's agenda? >> any members for public comment um, that are on-ramp

here for public comment? >> seeing none, let's go to the next item. thank you. >> >> 5a. report of the general manager (discussion only) green bond update. >> thank you madam secretary and. >> 5a. report of the general manager (discussion only) green bond update. from nicholas. >> good afternoon, commissioners it is real pleasure to come to speak about this topic i believe what requested by commissioner ajami and provide an overview of the green bonds and this is a big topic for a 10 minute discussion but we'll hit some quick highlights i think we'll try to focus on describe with green bonds are and talk about our green bond program; right why we

issue green bonds. >> talk about the market. certification options which we've discussed. >> talk about what potentially will come from our program. so let's define with what are green bonds? i think they are bonds that help convey constitute public what we're doing with the fund we are borrowing the climate bonds initiative describes them as standard bonds with a bonus green feature. which really gets to the heart all of the matter the bonds themselves commitments we make in terms of paying the bonds are the same. >> but we're describing with the green bonds how we're spending those procedures make sure commitments to the market in terms of reporting about those commitments. the green

bond market is actually still young the first issued in 2007 and the marketplace has evolved very rapidly since then the players and the products in the marketplace and it is grown um, especially a particularly internationally we the u.s. public finance market represent a tiny perjure of global green bobbed market. the first green bond if 2015 of theo million dollars that was a flunkal transaction one of the first municipal bond market i don't know our public generally realize how wide recognized the

sfpuc with the leadership my procedures. >> additional you have shown but interestingly about that 2015 transaction was self certified in terms of wer7 the ounce the sfpuc determined they were green bonds in 2015 that was the way certification was done. the marketplace has evolved investors have expressed interest rate in under parties the bond are real and thereafter, when the sfpuc move forward with consistent programs obtained programmatic certifications so the entire program was certified and the initiative. those certifications are verified by sustainable so

in terms of cb i and was confirmed after we spent the procedures and that represents what we believe the platinum standard of certifications we made have a issued many bonds with that. um, so again first bonds were self certified and we continue to evolve as we close this presentation we'll talk about the ways we hope to continue to evolve. this is the point i was making a few moments ago since 2015 the sfpuc has shown leadership in green bonds been awarded has been the first for example, to do cb i water criteria. environmental finance,

celebrated our transactions and, of course, described to you already this year 2023 has been is latter issuance of green bonds to date. um, standard, of course, is sfpuc global ratings ratings is a comprehensive labeled bonds and different labels some people label the bonds sustainable with green bonds and there is continues to be an investigative of types of labels applied specifically for green bonds the sfpuc before this record setting year the third large bond issuer in the united states andhe next page you'll see we've added a lot of green bonds and the way the chart the pal colors are the

non-green and the darker are the green bonds we issued more bonds but have in the prior year and more green bonds than any prior year i want the emphasize on the marketplace it is both new borrowing and refinancing of prior bonds. the green bond label is close to our mission. and really a way of articulating what we're doing with the bond proceeds. when's investors come to the marketplace, we are seeing a distinct preference for green bonds. we have often sell green bonds in non-green bonds at the same time the same

maturity it and watch the order from the investors. and almost universally will flow to the green bonds and sometimes have green bonds several times over subscribed with no orders of green bonds, of course, we're selling the bonds need to get all our bonds sold the underwriters work with the investors is to the other trengsz and the series of bonds to get all those sold. we don't see a pricing difference between those two. but we believe that we see a not only more buyers for our bonds but extension federal pricing and demand for sfpuc bonds. and in the end that's what we want to doe throughout including the

presentations that the general manager and others executive leaders made to the rating agencies to get on high ratings and the disclosure we provide to the investors designed to try to attract as many investors as possible create as much demand as potential for our bonds. and, of course, doing this does involve more work and expense for us. and as you can see we have issued expensive green bond reports articulating how we're spending the preseeds and a lot of detail how those projects line with u n fractions. the and this is the

expeditiously growth in the green bonds market. i'll caution in the united states you'll see on sequential pages backlash not everyone has addressed the climatic change the way 19 that california and san francisco have and actually states that like florida have banned the use of green bonds by the local government community. but we think not only articulates the values for our extension helps to for the investors how we're using our proceeds and hopefully creating the demand that will drive improved costs. the challenge, of course, is

(bell ringing) in addition to the cost i alluded to we have registries we rupert into the marketplace is subject to the provisions security laws. so just as the primary officer statement is subject to the information we provide about the bonds as well. so i think the last thing (bell ringing) the discussion of the politics of this um, i think republican of the concerns we have those are thirty year probations we're entering to and make sure that in compliance we do from year to year can stay consistent with that, happy to take questions. >> thanks for putting this together and commissioners to make sure we have updates on

this. i won't say niche but three commission as taken thank you for that and i'm sure many questions. so start with commissioner ajami. >> i wanted to ask if we can spend anymore time to finish this presentation they're a lot more valuable. >> absolutely. >> (multiple voices). >> if notice you stopped at the clock you're better than us. >> the remainder of slides please. thank you. >> let me quickly- >> (multiple voices). >> touch own this (clearing throat) there are i was starting to explain earlier multiple players entered into this

marketplace. even since we first um, were early adopter the bond rating agencies have entered the marketplace. additional verifyers entered the marketplace and so increasing complexity to that. it gives us a sense we're looking at the power bonds the different options we explored. one of the key distinctions in the marketplace is between second party opinion, and third party opinions the way we do if we have first, the climate bonds initiative and others coming in with their verifications. there are those are each it will be

helpful acceptable approaches. our approach to date which was adopted again years ago. has been of particular appeal to international investors. the climate bonds initiative um, not only addresses the same four principles as i c m a but also shows compliance with the paris agreement and limitation of one and a half percent. um, the point of all this to simply articulate the market has changed we have begun the process as we discussed in conjunction with the power bonds we made recommendation not to proceed with it certification and bring the power enterprise

the same level of diligence as the other two inspires but not simply add to powerful but reevaluate all the providers given the change in the marketplace i want to be careful but we do have a request for proposals in preparation and would expect to issue that working with our contract administration bureau in the spring. with that, happy to a conclusion exclude /* include commissioner stacy after this. >> i appreciate you giving this presentation and you know

what a little bit of history i was running any program at stafford in environmental finance and issued the thursday green bond at sfpuc put oat just because it was brand new and was interesting to see utilities taking that even but exciting to sit here and see that happen. um, two questions i have for you one is actually he personally have not realized how small the u.s. market 19is i want wondering a couple of things one are there concerns you're talking about the backlash all day points push back an backlog and other entities that issue the investments strategies out there do you think there is a

chance this backlash will attack our bonds i'm assuming this is part of it but i'm wondering negative sides we should think about that. >> a very interesting question a certain tension on one hand to step back and the way this market is developed was that climate activists went to the investors and said look you can get those bonds without giving up any individual by express support for climate. um, the promise to those of us in this community has been if only you issue enough of those bonds to create more demand and those two promises are continuing to

collide. so i think for many issuers across the country may not share the visuals values of the community in san francisco this is a transitional decision if i'm not note getting a substantial pricing benefit we have this costs. >> i think in addition to this environment that we're in as has reached a point in 2023 the house of representatives has hearings over the summer. on the one hand you've got political forces who that pushing back call. >> woke agenda and think there is intrusion in the financial

market. on the other side a roguey aspect sfpuc has taken action on the is green bonds. we have discussions with underwriters we have to be careful we're representing what we're doing and it as delicate balance. there is a regulatory yes we're not directly regulated but subject to the provisions but those underwriter bonds are subject to this. >> does that mean that people, you know. realized want to have more strength holds how those bonds are issued or how they're evaluated with that have bonds

looking at future bonds we, make retention on the bones in the future for example, to service bond going forward didn't mean a certain impact with the bonds. it is interesting that there is also an evolution at first f this marketplace you have a sporadic bond transaction serviced. the sfpuc took vantage of this programmatic approach we take advantage of of - there is now another evolution where you have a choice of servicing the bonds or civil rights the bore our we expect as part of the our

key responses we hear recommendations about those. >> thank you you we'll expect updates own this political thing that might happen budget committee and before i turn to the next commissioner, i want to comment especially what you highlighted shortly in your slide where you're talking about the house of republicans and people using scare tactics for jobs and all this scare tactics you're saying piece where get rid of jobs and, you know. make money off of that. on wall street and on about markets so there is three dynamic in san francisco the principles which illustrated so well, you know. not only doing the bonds but

because of reasons recognizing is here and we're participating a little bit early so a comment along those lines i think we expect updates and something that going south or whatever political pressure or some natural market surge. commissioner stacy. >> thank you. >> ditto what the president said thank you, for the presentation i'm glad we've been a leader in the green bond for the commission statements and the work we try to do. i had a couple of questions. i think you may have answered two of them but i wonder if you have any sense of the timing and the process to have the power bonds certified? >> have you been apprised have

been involved in that process. >> yes. so the rfp is being drafted. and work with our incarcerating administration for they've provided estimates would have me assuming we're going to issue that in the spring. with an award later on in the year. >> i think you weird this question i had about the political backlash. seeing those maybe some legitimate criticism on this maybe going on but otherwise sounds maybe sort of another policy move to deny climatic change. were there any legitimate criticisms we can address it seems to me the

certifications process would address this kind of green washing the purpose of that outside equity confirms it is real. >> i have to be careful what i say but is it fair to say a novelty to green bonds and some people raised it without the same level of diligence the puc did. because there are some people that are self-serviceing may not be. >> my last question maybe not really any current financial vacation rentals for the puc on issuing the bonds we have a lot

of interested buyers. you indicated i think in one of your slides the response been talk of interest rates. if the market is not big enough to justify. >> i want to be careful. i'd like to say look at our green bonds prices 20 base points lower than the non- bonds we can't say that. um, because that is a functional security isn't the same. so there are many of the investors just willing to take that bond if we can get the same deal. our job to figure out how we leverage this to get the best price on both of those that

is hard to say our bonds versus someone else's bond the average life is different eats the credit rating. we believe that based on the greater than demand we get the best pricing possible that is always our obviously to get as many buyers. >> and there is no vague vague to investors. >> yes, sir. there is and this is something that i i've challenged some of our investor friends about that i was on a panel this spring with one of the investors from - and asked why do you buy green bonds? there is a pricing difference. and the said there is a pricing difference in the future i want

to capture. of course, we want to live capture on the day we sell the bonds and again, this is that functional tension in terms of promises to the investors which was you won't have to give up yields we've held out having a pricing events. >> thank you. >> commissioner maxwell. >> always looked forward to the presentation you, you said those bonds green bonds are popular even though we have no real difference so what do you think the reasons may be the nay sayers are political as well? >> well the municipal bond market in the united states has had difficulty in 2k50e789 a

compelling difference. i think global warming that difference is compelling. part of this is that, you know. we are first of all, signal. oversees investors european investors and other investors will have a strong desire for the bonds and fair to suggest functional generational differences and young investors in particular want to know that not just getting a yield but doing good deeds. >> and i said that cost more to issue green bonds. so if it costs more to issue green bonds do we do that because it feels good or we feel will pay off a

lot of the things we do is cost effectively but important objective. >> the costs that i was alluding to those verifyers with their fees we're paying. those are in the context of multi million dollars programs but the time which we should dismiss of staff in preparing those detailed reports. but in terms of articulating our mission and kind of like demand for our pursuits that's why we do that. >> great. thank you. >> thank you. >> commissioner ajami. >> maybe this can be a comment or question. which impacts to what you said to help us track

how we're achieving those goals. the way you have to track it in some way (unintelligible); right? so my call might benefit us in the way so moved somebody else evaluating. >> i also mentioned about certification so well, there be a problem for us to certify ourselves that's what our saying. >> (multiple voices.) >> we have done that in the past with the power enterprise and many issuers do that but the market has shifted from investors the investors have saying they want to see something else. >> i think a third party

certifying. >> that is a potential new generation of the model. um, and we'll see when we get our rfp responses. um, how that compares. >> can i ask a follow-up? >> so does that mean if if they certificate us as a green institution does that mean we do not need to certify individuals bonds? >> is an issuer certification. >> means that every bonds we issue after that falls in that category without. >> it speaks to an- >> (multiple voices). >> okay. this basically we are a green bond issuer and every

bond still needs to go i want to make sure that is happening. >> yes. it even is separate if from the bonds. >> okay. >> any other commissioners? >> okay. i guess this item is on to public comment; right? so open up for public comment. >> madam secretary. >> members of the public present to provide comment an item 5 a? >> seeing none. >> we'll move on to general manager report. >> >> 5b. quarterly audit and performance review report.

>> good afternoon commissioners i'm and print the first quarter for the report may i please have the slide. >> as of september thirty, 202310 audits or three three percent have been completed. and in addition third planned audits were in progress in the first quarter and the remaining are to be for the latter fiscal year. as a completed audit 7 were financial and to performance and one from the committee. and at

this point there are 12 additional financial audits in progress or scheduled. in addition 6 performance audits one oversight bond and one revenue will begin. here is some of the details of 10 audits in the first quarter. july the comptroller's office issued a powerful audit with the enter security and the local interests enterprise in august. in august the revenue bond were issued by the bond oversight commission in september the wholesale statement in balancing the account for 2021 was completed. followed by the issuance of our annual warehousing you can see

the detail. so as mentioned the sfpuc warehousing has their inventory for the first quarter and pro limited liability firm completed that and the site visits to make sure accurate account for vifrnts remains and the results are variances into the inventory and the sfpuc maximum electronic records. in summary those variances were due to errors on labeled and software and hardware and lack of inventory organization. in some areas. so what were the details out of $13 million plus inventory items cross 5 zeros

200 and $36 million varied with 8 point one percent. the overall it is true that some zeros will have better records than other bureaus but the individual variances generally follow a trend had you look at the history of improvements for the last four years. there is additional room for improvement and the added zero we followed up with the individually and helping them to inventory. >> so the um, olney bureau actively monitored the recommendation throughout the agencies you know what this we are respected deadlines and 2023 regions from open across to

audits from the system improvement management incarcerating and an additional 8 from the revenue audit from the soft partners and moving forward we anticipate the completion of a total of 6 audits in the second year those will have 4 of the finance statements for water watering and hetch hetchy and water and power the interbriefing for the fiscal year fy2022-23 and the charter 6 procurement investment we anticipate the kickoff the annual financial report and the popular annual report. thank you for your time and

i'm available for any questions that you may have. >> commissioners any questions?. thank you. >> i'm wondering is there a normal for the warehouse and how that we in that and that's a great question. i was thinking about that i don't have the details but happy to do research and get back to you. >> seems that is pretty good. >> yeah. >> yeah. >> all right. thank you. >> yes. >> thank you. commissioner stacy. >> i had a question on the revenue bonds program. anti audit the reporter notes the puc partially concurred can you give me a list of details on the occurrence. >> we also strive to have full

concurrence we're open to recommendations and improvement. we have some settle disagreements on some of the standards that the auditor was using and b&b but didn't. come to a conclusion and discussed that with the stakeholders and not able to have any agreement in those areas those are the standards just came down to whether or not they're interpretation of some of the entrepreneurial trolls at that time were - happy to talk with you about that. >> any other questions or comments from the commissioner? >> i think own that two this

issue was also reported in our last report as well. i think that is going back to the question on the industry standards as our presenting valuable to know what - we do audits on; right? benchmarking it is very valuable and something like that would be valuable. >> will. thank you. >> any other comments commissioners? >> open up for public comment madam secretary. >> any members of the public present to provide comment on item 5 b? >> okay. seeing none. >> c. >> that concludes my report. >> any oats announcements in

item c. >> to. >> seeing none, next item. >> service goals and objectives which were originally approved in 2008 as part of the water system improvement program environmental impact report. consent agenda. >> anything on the consent agenda anyone wants to pull. >> okay. seeing none, then consent calendar i guess we'll open up for public comment to public comment. >> members of the public present to provide comment on item number 6? >> seeing none. >> okay. seeing none, motion and second to approve the consent calendar. >> i'll move. >> second. >> roll call. >> president paulson, aye. >> >> commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy.

>> 5 i's. >> so next two items 7 and item 8 call those up together and separate votes on those but item 7 7 read 7 read goals and objectives which were originally approved in 2008 as part of the water system improvement program environmental impact report. >> okay. so this is um, some important benchmarks for us who do we have. >> good afternoon. barbara hale for power and begin the presentation to have the slides please and turn the podium over to a gm richie so let's see - um, i'd like to sort of start

with level items and get into the topics and terms we're using and what power particular level of service are. >> so levels of service generally are standards we strive to manage; right? and intended to satisfy our customers exceptions in 2020 the strategy plan established within that plan and the levels of service goal setting really um, from our perspective an important activity for insuring accountability among the staff and transparency in our work strategy prioritization and organizational learning. so

moving to the specifics of power levels of service. this is the first time that power levels of service have been bought to the commission for consideration we established them in 2020 and operating as a proefrnl medic and remain 5 broad goals and objectives within those goal areas and nearly one hundred detailed performance medics and many below that i'll provide those and will not present all of the um, performance medics but present examples so you can see how they're captured in more detail the goals and policies are captured through the

performance 34e6kz are incorporated by the planning process and the 5 goals enthuses reliable and clean energy and i customer service thank you, follow the functional services we provide and supply and distribution programs administration and line with the budget and cost centers. so diving into the goals and objectives first power supply with clean energy the comprehensive prices that the broad goal you see below that the objectives india to power supply cost comprehensive and reliable and renewable excuse me

- the power to state the objectives and certify capacity and energy to observe all serve all the future customers and with the electricity supplied throw the renewal generation switching programs and next power transmission and under that the broad goal identity providing cost effective and reliable attraction service the objective to strategically invest to increase the reliability of our services for example, this broad goal and objective ruled in the proposed attraction project for san francisco. it was proposed in prior years and at that time. so that gives us a sense of how it is in the budget process. for

power distribution services we have a number of um, objectives here. reliable distribution to help with the grid and infrastructure in development and redevelopment for growth and effectively managing the assets by regular inventory and inspections and monitoring the maintenance and replacement work and minimizing the outages and the puc controls this in preparing the acquisition for san francisco. >> our city programs objective goal to maintain safe and reliable street lights and offer valuable customer programs this is to maintain the street lights and fourth of july and responding to street light

outages and emergencies and satisfying customers to invest in the decashtion for the local of clean energy development and operations and the final goal area power administration. where we are focused on so objectives here customer service rates, equity and outreach and regulatory compliance and workforce key areas for us in providing for satisfied customer experience. >> also where we capture our interest in fair market value equity and support not just for the workforce but for the customers we serve. our workforce is key in important part of our success we strive to

attract and have a healthy well workforce. as you can see imagine how those keywords and objectives influence is budget requests we make and how we spend our day and operationalize the activities underneath all of those goals and policies. and that brings me to an example of performance how those goals and objectives are factored into our performance medics measured and reported informing our budget proposals for responsible staff. really flunking our daily operations. so this the objectives they top of table and

moving across from left to right two indicators and the value to meet the objective and identified for this k pi for indicator a budget category we can operationalize and understand how a particular goals and objectives are can be addressed in through the budget process. and then the responsible management team. so we have compatible details for each of the almost one hundred performance mevengz that is collected and reported to to our performance lens for the - we approached this process from an attitude to set the right target and meet it than to not.

>> if we don't meet the target we're learning not intend to be punitive by intended to be a thought process that results in giving data to make informed decisions. we're all working collaboratively to meet the the target we recognize there are always going to elements outside of are our table we want to focus on what is in our control and influence the day to day operation with the budget. >> so with that, i'll conduct my part and i'll be happy to answer any questions you may have. >> about the power levels of service our process and then i'm going to turn it over to richie. >> any questions before we move to mr. richie?

>> okay. commissioner maxwell. >> no, i don't have any. >> um - thank you for the presentation. >> i appreciate you're including um, i think a couple of things having a question around project strategies and i brought this up i think you need to think about climate impacts and equity and applicability two overarching goals with you have; right? and anything else falls on those categories we have climate goals those climate goals are centered around emission reduction. we are going to have mobilityim we are going to have issues we have to deal with related to

that and need to do resilience it is a difficult agenda we have to have an item on power which actually focuses on what happens if we have a dry year this is a wet year how we'll respond a power mix it is actually like everything we do is centered around climate resilience. and beyond just the goals so want to i want to put that out there this is important to differentiate been overarching goals and individual goals can be met under the owner sort of banner. >> that's helpful if i make comment as well. i think part of what i think i'd like us to do as a institution for the feel

like climate and mitigation are a particular team job but all the work should be imbued with that; right? >> what i've expressed i'm expressing that like everywhere you expressed that overarching but i think we're saying the same thing. >> i'm not saying to put the word climate but actually have to (unintelligible) before - and right. >> the building of solutions and actions overarching goals i do know very similar to climate bonds we have had a climate team active all the time but sometimes, i feel they're very

much on they're on thing and not enough actually - i don't know if everything has happened on day to day basis but to your point across the board and one last thing that goes back to our access to finance and access to, you know. money that is focused on climate issues. a lot of this not just like evaluated the vulnerability but can on a different door to give us a chance to talk about resources available to us. thank you. >> if i might and yes. >> general manager. >> i agree with you and as a point of some clarification. it is philosophy and assistants

general manager barbara hale expressed that well, how we do the entire work whether that is in terms of doing it at ocean beach working collaboratively with the city and someone comes to work on the waterfront you'll notice the work by thompson b and richies operation and on plus a core of everything we do for the just on the projects but in terms of international leadership. um, having started the climate lineing we take it seriously that is a vocal want i appreciate the sentiment and rest assured something we take seriously and try to do everything we can we are aware of it and - but never hurts to be reminded.

>> any other comments. >> one last thing to both of us. i think you're right urban forester done a lot of work and one other area climatic change and resilience are coming to play the intersection of the two enterprises you have; right? how we can use that opportunity i know again, we have had that conversations but a lot of financing opportunities coming down the pike. >> sounds like everyone is reenforcing each other. and commissioner maxwell. >> i agree with you how have i want to see is it needs to be called out equity called out all those things and certainly we're number one, i read some of the

things we're doing. so we definitely need to talk about it i like to see that more the things we're doing have just beyond, you know. what you even you say maybe we go beyond that i want to see it i want to see it in issue objectives call it out more. it is important that's all i'm looking at why shouldn't it be a bullet point and even with the water i mean it is mentioned casually. this is what drives us i mean is really does our drives us a lot we need to see that i'd like to see it spelled out as an objective those are our goals we do this and that, you know. and i think that is important that we say it because doing it unfortunately,

we have to say what we do, you know.. you have to say that (laughter). >> i like and it is important to do that. >> before we go to mr. richie i think that, you know. we don't have this stuff documented especially we're talking about that i'm as chair a little bit confused about what we're not doing and seeing here the billboard or something i like to talk about that more. so offline i'm missing something we're doing a lot a having said that any other comments. >> mr. richie. >> thank you. >> (clearing throat). >> thank you, commissioners. steve richie general manager for water and turn to the water

levels of goals and objectives and um, those are our different from power were originally developed in 2008, as part of the water capital improvement that focused on design and construction of the regional improvements. they were issued a step forward for the puc of watering entrepreneurs that is a clear what we're trying to accomplish with the water program but recognize they didn't really cover all what we do so been working on relationships with our management team and water and staff over a series of years to address the operations and maintenance with the water issues and building issues for the workforce support. 2023 amended the goals and policies are intended to for the process and organization but one of the things to note similar to what barbara said objectives radio

are achieveable but aspirational as well. >> um, this concludes the objectives but not enough time to talk about that but were 6 original water serve goals level the service goal deliverable reliability and water supply and subsequent and cost effectivelyness and various degrees of detail but really emphasized the regional water system. now we have reliability and city seismic and deliver and

water supply and environmental steward ship all important issues to deal with the next flew slides will cover the objectives but i would like to highlight this is all here and for the record to make sure that is clear in the agenda packet and side by side comparison of goals and objectives, you know. for anybody's reference and the drinking water are in 2008, but the first words operate and maintain are in addition make it clear have to maintain our water quality over time cannot just build something and walk away life didn't work that way and another important edition at the bottom read into the record to servicing inquiries for this this is specific but important

our customers need to know we are hearing what they have to say and reacting this is splr to the original set on the first one is not just design and construct but to meet the seismic standards if you work in the world we're learning more about that all the time and we need to be on top of those and not sit on the laurels what we built once upon a time, and think regional liability this was interesting got into issues about our capabilities the first page here have many of the things that were in the original on the first objective is talking about supporting the

proper water system and proper operation of car pollutions for the water system parts of power system we have to have working to provide water to people are kirkwood and power houses and shared and transition lines have to work can't be ignored just new or just a water system but a power system as well. next, we made changes in particular talks about to deliver three hundred million gallons and day and make sure that is clear we can't deliver everyday of the year. so that's not what we do but clear what we can do important for you the staff to know we're recognizing there are limitations with what we have and may improve by demand of

three hundred million gralgz and day we only can achieve 250 units were shut down and then have a very specific call out there for when we take the hetch hetchy apply offline and getting ready to do that as we shut down we take that supply officially that limits our capability to make the use of all the resources and trying to articulate that more clearly than we have before. so finding of what our system can do and the challenges. next to the last one is the operating optimize water supply by the environmental regulations and down stream conditions that last phrase carefully vaulted the words flood control. we're not a

flood control agency is that i know we have to manage that so we don't say that out loud and provided the worthwhile customers to operate their systems a very important part of what we do. on the in city front brand new took a lot of work to put those together and i think we talked about those evolutionary goals and objectives and will change over time we learn more in the built and understanding how our system is four ourselves but basically in terms of storage maintaining systemic storage to provide the minimum pressures that are required in our system need to provide that so we can have safe

water and fire suppression this is more detailed around the fire hydrant system and involves over time and that is something that we'll be bringing to the commission as part of the budget process. and interesting one is water supply rotation looking at the system what can we do in the first 42 or 78 hours starting to errors service it is different in the city than were you build pipings with the grid we have and we recognize will be breaks and a gradual recovery over time that is where we try to lay use provocations what we do ultimately to do that as fast as

potential we can really provide. >> and in city liability able to provide a couple of storage for a couple of days and fire suppression flows within the structures throughout the system and again, maintaining that pressure but at the bottom the last two are how we maintain the deliveries on a routine basis this says less than one percent of service context go without water for hours on unplanned outages this is our veteran for us to make sure this is a small number and services are restored quickly and about a half of pregnancy without water for 8 hours or longer so again taking those numbers down we feel like

we're doing a pretty good job but improve on those and help people as quickly as posh and is waters front the first two goals with the tools 5 million gallons per day and during the system drought so those are the goals basically as they were in 2008, goals and objectives. >> further down maintaining the retail water use for 45 gallons her per person may not be where we ultimately end up but we 0 over time expected to knock down more and make sure that the recycled water for the faculties. in environmental standardship one of the original

a type of sustainability and was a shorter one comply with the environmental laws that's a good thing and that's a start we need to make sure we manage the waterfront to protect the resources and minimizing wildfire and then operating the educates consistent with the water standard stewardship a philosophy that is captured and lastly barbara head of administration i'm more on a maintenance about the fabric and maintaining the gravity and

continuing to manage this. >> so security is something we have to worry about in our our facilities language last year barbara talked about that a well valued workforce supporter workforce to make sure it is deliverable and lastly, providing for community support making responsibility to our communities and educational opportunities. and dealing with the issues in the california for americans part of future and the last is our educate management policy. making sure that we are properly um, managing our assets so we can continue to have supplies regardless we need to be able to deliver water to customers in a responsible way.

today, tomorrow a year from now, 20 years from now 50 years from now a lifetime and i'll be happy to answer any questions you may have thank you, mr. richie and my hail a lot of metrics and build on things we do so thank you very much for putting this together and some of the basics is helpful to move forward and give it to us i can't imagine updating and putting things together so thanks i think we all have many questions in there this is only two questions i would have and said right now refer to see we mentioned it,

you know. the number of water consumption numbers on there said will be hopefully going on down and thank you, that and again a point that things are in range based on, you know. if this happens or that happens. all of a sudden we're going to have to do this and that and what have you and i'll mention he know we have been able orders one piece was down a little bit should to get a contractors to make sure everything was in place nothing was down and even just a glitch in the system it is compounded somewhere. a grid of metrics so again, thank you to the staff and both of those presentations.

>> especially on there so will be questions. so commissioner ajami. >> thank you, chief going on to the comment we had a call um, you know. i look at all the fantastic i couldn't see stewardship falls under rose gibbens to different kind of environmental issues; right? including climatic change and wildfires but now kind of like becoming an epidemic so environmental stewardship goes hand in hand i know can be different terminology but the knowledge and again, i still say we need to think about how to hold the measures for the

capacity and part of our experience. functioning i have a conceptual 20 years ago, you know. i have been working in the water system for many years. 20 years ago i would have asked you what are our 5 top priorities? >> i think beyond the fact gone from the list we had to where it is right now, what are the unanticipated things you thought about now it is stairwell to our function. >> wildfires are a good example we have a history of fires the magnitude has gotten much

different now and i imagine that much bigger overall. >> it be we the thing i didn't anticipate in, you know. i go back puc in the noticing there was serious questions about whether or not san francisco would step up and take care of the system i - i i recall a meeting with operated agencies like my first one is 1996 i think as a result of the discussion talking fair market value about a capital improvement program for that water one million dollars over all the water over 10 years and on the agency gave us a negative outlook the commission didn't

have the wherewith all for the agency and interesting i was very brand new for the water at that time this is a challenge well, i think the city the puc and people are stepped up and done that that is a change from where we were just prior to the 2020. in terms of other things out there um, i answered this question, you know. what would it surprise you to hear that; right? >> nothing surprises me no where that i've been around too much literally have to be ready for that. >> economic development. >> that's why i asked that question because i think one thing to be a rodent and often

because it is as day to day operation. >> right. >> that's a function that can provide - another thing to anticipate, you know. are we going to have another like 5 year drought back to back for another 10 years; right? >> we don't know but the reason i'm asking the question - - >> (multiple voices). >> oh, i know. >> so i think the point is i think level of service is one basic thing we currently are doing 20 years from now, what do we have to do and the last 20 years not an indicator. and considering everything that has happened in colfax and a lot of the anticipated nobody knows. i

want to give you you, i mean i want to give everybody on the staff an opportunity to outside the box what i'm not imagining everything but all those things you're imagining that's why i asked you have been around for a long time and seen even when you were in i mean, we're not dealing with laws, you know. out ousted breaks the way you're doing it now; right? a lot of things we're not. >> at that time we know harder and wondering why there was a lot of research and started at that time and now to understand that. >> (multiple voices).

>> we should be thinking about. >> we even though we have improved we see a lot more; right? it wasn't just improving the technology but the chance we don't have control over it. >> the reason i'm saying all that then we have a chance to think about this. strategically i think we should use this level of service as a quasi of saying how those things will function. i mentioned that we're having this conversation and not about the earthquake about one break this gradual i don't know what to call that but gradual rates come true i want to see for us to be a little bit more - this

is all coming not as criticism but as need to be more strategic to think about that long term and think about the unanticipated things we might be dealing with in 20 years. >> that we have to change the rates the bond marked and have to change the way we do operations in the water system. you know. if we have to deal with a lot of things this so; right? >> so long comment saying, you know. i appreciate all p and want to see for the challenge us to see what we are trying to anticipate all the unknowns right. >> commissioner maxwell. >> thank you. >> i lost my train of thought. >> i guess any one of the my

concerns when i look at the towers water supply duration. >> uh-huh. and saw the routine maintenance on my phones an alert routine handsome so what is a routine (unintelligible) as it relates to water supply. >> what's the difference between - because routine means to me all times of the day. >> actually - well it is hard to say that all main breaks are a rarity. to me one hundred and 200 a year to routine main breaks there were, you know. a couple in the last few days we're able to keep people in water generally and the restoration might take a couple

of hours. that is generally what you would put in a routine category. so beyond routine is what happens after at fillmore green we disrupted the whole city block. so the routines are they are going to happen we can't prevent them we do our best to come up with a best technology to avoid them the first towers that is a systemic events resulting in probably several hundred main breaks in san francisco it is hard to - lots of people are analyzed standards the whole system will fall apart or have a few hundreds or have a lot of. the excitement will be many, many breaks. and that will be far from routine. >> okay. so but we think the

best way to cure that is to i mean, i mean you feel that is best- >> (multiple voices). >> sounds like routine just expect the main break all the time. i know we should but is that what we want to i want to put that out there and that goes to us internally they used to say usual they're all usual we can work on different words but they will happen between one hundred and two hundred a year one in a few days or every couple of days. >> okay. i up to the same comment with the water when we talk about educating our public and talk about trying to bring

us down from under 45 one of the goals i mean - it seems to me should be we, you know. what we we're doing educating the public on trying to save water and giving them all kinds of different tools to use. providing things and seems that should be part of our goal the education i know you're trying to make that short i i guess but should be a little bit more what we're doing and when we talk about education educating them towards what it seems to me more specific on how we educate our people and populace about water to us a less of it. i just think we we're doing so many great

things and so humble and modest we should do a better job of saying of talking about what we do. >> we tried to do with the water resources. >> (multiple voices). >> i know you're loonl. >> this is where i'm not saying you don't but giving me something and talking about it what i see levels of service and water this is - i mean, i look at my bill and i like to see that here. >> i appreciate that that is four pages long. >> make that 6- >> (multiple voices). >> or making it 12. >> this seems very long. >> okay. we read those reports yeah. i i don't mind. >> other people may get this

but it is on. how and i'd like people to see a little bit more if they happened to want to get into that what we're doing and in more than one place. >> other comments? >> no. >> can i ask something. >> for a second i want to say actually, i agree with commissioner maxwell i think people under estimate us all the time oh, your 45. oh, you no, we are the leaders. and i think that is into important and we know because on my day job i see it all the time and you're always talking about san francisco values and what you've done that but it is important for the people to know what the

leaders are doing water and pour and finance. those are things don't come easily but from vision from a vision it is what commissioner maxwell is talking about it is great you're doing this make sure we and everybody knows. >> okay. >> point is well-taken on everything and let's publicize it as much as can be and the many departments and staffers to do general manager any recommendations comments. >> we appreciate you complimenting us so thank you and i will say that every document that we oifshs e observing for different purchase and that is a document that

guides us never been our view i'm not saying we shouldn't include things by not every documents in our minds is advocacy but your point is well-taken and a good job in advocating and talking about the good work that everybody in the department is doing. but i hear your sentiments and we will look at maybe ways to incorporate some of our sent sentiments in the documents but that is important to be as open as possible. >> xaushd. thank you. >> i just have been listening to the comments of the commission and thinking about what do we do now? and how we posted? i was looking at the

objectives on the community support and reference to your last comment commissioner maxwell says provide the public library with educational opportunities and reactional opportunities in cooperation with other departments and i wonder if we can look at how to help people to decrease further their water consumption. you both said that we need to be anymore specific about our successes and we have been leaders. and when i think about the climatic change questions we talked about earlier i'm not sure the long los but certainly

it is long overarching all of those not adjoin an obviously obviously and think about that part of the environment in which we find ourselves and further problems we'll see in the future so i think moving forward what you're hearing is that we would like to hear a presentation articulate what we're doing just to make sure that the public is aware of it and make sure that is commission is aware of how much planning and how much we think about those issues and everything that is done. i don't

know if you were suggesting especially amendments today or thinking more long term but my thoughts on how to address those issues. >> thank you, commissioner. >> commissioner maxwell. >> i wanted to move forward. i don't want to hold up but not said to see amendments that are talking about our environmental stewardship it is important we have to make sure we talked about it bus other people are saying we're not and so we need to talk about what we're doing in my stewardship and people begin to associate with the environmental stewardship that's who we are and what we are to

make sure i don't want to hold anything up but like to see that. >> point is well-taken and i think we're getting close to the comments but xaukd and commissioner stacy have anymore comments. >> i think actually impacts the environmental degradation and climate change will impact our level of service so in some was. so as our social and environmental justice they're going to impact you're levels of service that's why they're very sort of instrumental in the way we have those in the long-term i

don't want to keep us from moving forward but make sure we as wearing moving forward it is incorporated in our decisions. >> point is well-taken and thank you. >> incorporate them. >> and i want to ask you one last thing good morning commissioner maxwell also good to a lot of meetings from water. and those days everyone only talks about how you're impacting the environment not many people talk about water use aspiration goals or have been initiative i barely hear any of that. but what is going on in the xyz notice as much positive and i don't want to - wanting the workforce but it is for to make

sure we're represented correctly. >> commissioner stacy. >> my last comment i think in the beginning get into the weeds but recommend on the power level of services to have a live link to the performance metrics people can pull up the links eased same thing with the level of services guess have a live link so people can a connect to the link. >> thank you. >> that's a great question. and good answer and commissioner stacy perhaps those are levels of service obviously but there be ways to get more grandular in

detail and i'm sure for previous scripture 0 people will be interested too. >> open up for public comment. >> on mr. richies presentation it is we're booifks those. >> public comment for 7 and 8. >> okay. public comment on first no way public comment on 7 and 8 is now open. >> i see nobody coming to the mic is there anybody has. >> asked for permission to get

on. >> we had three letters on item no. 7 will be reflected in the minutes and their comments will be linked. >> thank you. >> madam secretary. >> so can we have a motion and second take those surprisingly a motion to accept item 7? >> i'll move. >> for the goals and objectives. >> motion and second roll call, please. >> a president paulson, aye. >> commissioner maxwell, aye. >> commissioner stacy, aye. >> a commissioner stacy, aye. >> 4 i's and do we have motion and second for item 7. >> i'm sorry item 8 an item 8 i'm sorry. >> move to approve the. >> 8. approve power enterprise los goals and objectives. >> i'm second and a roll call. >> president paulson, aye. >> and commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy, aye. >> 4 i's. >> okay. can we read the next

item, please. >> california water code section 10910 et seq., california environmental quality act (ceqa)section 21151.9, and ceqa guidelines section 15155. before we start came back recognition commissioner commissioner stacy. >> thank you president paulson i said lying took recuse on that item and the element aethsdz office is a block away and a rule that for lease hold it is clearance and evidenced of this development have the financial impacts on their lease that i should ask to be recused so in the abundance of caution like to ask the commission to recrews me and we feed to have a vote to authorize the individual and

take that motion to that effect motion to accept the recusal of commissioner stacy for item 9. >> i'll move and a motion and second. >> roll call. >> president paulson, aye. >> commissioner maxwell, aye. >> commissioner ajami, aye. >> and and i have three i's. >> commissioner stacy has been recused and step out as we hear item 9 we have - i guess we're ready for item 9. >> yes. commissioner steve richie for water? one of our standard water supplies this was one that has been revised based on the new numbers included. this is again not approval of the project this is approval of

the water supply assessment to move forward in the ceqa process so we recommend approval of this document. >> any comments from the commissioners? >> questions? >> i have a quick question. does that mean that come back after the ceqa process? >> well as needed what the ceqa process what the permits may be an action by in commission or may not be by this commission but not an approval action just to be clear, on that. >> thank you and got it. >> so any other questions or comments from the commissioners? >> if not we have go to public comment. >> members of the public to provide comment on item number 9

a seeing none, so motion to approve item 9? >> i'll move to approve. >> motion and second roll call, please. >> vice president rivera, aye. >> commissioner maxwell, aye. >> commissioner ajami, aye. >> three i's and passes and can we have commissioner stacy back to the podium? >> i'll go. >> and magic. >> item >> item number ten. >> 10. approve the revised water supply assessment for the proposed 655 4th street project,pursuant to the state of california water code section 10910 et seq., california environmental quality act (ceqa) section 21151.9, and ceqa guidelines section 15155. who will be presenting. >> richie a routine water supply assessment for the numbers and again, this is going forward to the planning commission and carry forward did ceqa process an approval we

recommend approval. >> any comments from the commissioners? >> seeing none, we'll open up for public comment. >> members of the public present to provide comment on item 10? >> seeing none. >> seeing none, motion for item 9 approval. >> move to approve. >> i'm sorry this is item 910 for ceqa guidelines section 15155. >> is there a motion so moved. >> sorry. >> president paulson, aye. >> commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy, aye. >> four i's. >> motion >> motion passes item 11. >> 11. approve hetch hetchy

power's updated integrated resource plan (october 2023); and authorize the general manager, or the general manager's designee, to submit the updated integrated resource plan to the california energy commission prior to april 30, 2024. >> good afternoon, commissioners my name is juno trail laya the director for the furthermore, enterprise may i please have any slides my slides. >> i are a spoiler abundance the forecast of logos hetch hetchy will need more renewable energy for one hundred portfolio and staff recommendations we continue to monitor the standards and for renewable energy to serve hetch hetchy consumers. >> for the rest of the presentation i will provide a

background on it described the approach to update and review the finding and conclude with next steps. >> we have defined a few - key terms that we used in our reference by the commission and you public and in the in the interest of time those are important words we used. an integrated plan or index rp to support the policy goals if meeting the requirements in the electricity supply and demand for the resources option can deliver affordable resources hetch hetchy is defined by the policy and index rp every 5

years and the update you must be submitted to the commission in 24 and hetch hetchy rfp as adopted for operation and in the hetch hetchy hydro electrical system and the tradeoffs between the capital development a goal of optimizing the hetch hetchy electrical system to electricity customers. our 2023 update focused on identifying the electricity resources requirements to support hetch hetchy greg customer demands. the 2023 index f p supply and demand under the conditions identified whether power supplies one hundred renewal energy for hetch hetchy power

companies. today hetch hetchy power portfolio has three hundred and 8 megawatt generating capacities and operating energy it is greenhouse gas free think as you can see from this the electricity by the power hours make up the hetch hetchy travels down one hundred and 60 miles from the sierra to the california have an grade in the bay area and the city-owned infrastructure to our customers. for i rp update we analyzed the emergencies for forecast and this is the one and two scenario or forecast has a 50 percent chance of occurring. other three scenarios forecast in peak

demands and those cases refer to as one in 5 or one in one in 20 and the displaced under hetch hetchy power is forecasting a garage with the scenarios growing by 5 percent per year over 2024 and takes into consideration various factors with development and car territory and other changes among the customers including san francisco international airport and the multiple transportation agency. our analyze will be continued the operations of hetch hetchy hydro generations for 2045 the forecast included three

scenarios an average normal and wet and average dry scenario those scenarios were developed historical system performance over 20s years. >> redeveloped 4 now resource scenarios that are summarized in the table sniersz are north and california and onshore and offshore winds up the analysis has seen is delivery start dates for the renewable supply in three three with a articulated of adding one hundred and fifty megawatts with the hetch hetchy portfolio. >> over the next server years hetch hetchy power has forecasted to a long generation and power accelerate there the end of decade the generation is forecast to be sufficient to meet all scenarios by short time

markets, however, when the hetch hetchy power strange retail sales over the periods we forecast new to supplements the supplies to meet the demands on a regular basis gip in 20 beginning in 20 and adopted did portfolio procurement plan the resolution since that time hetch hetchy has supplied the retail sales on is an annual basis with the hydro or with california splim and this table summarizes the snapshot of rp f in 5 year increments for vertical the bottom row it the compliance of

the sample years and 2040 and 2045. and this chart provides another snapshot of hetch hetchy portfolio showing the monthly energy balance with no additional procurements. for the caliber year of 2035 that is a demand portfolio the orange bar hetch hetchy is projected to be short energy in the late summer and fall and winter and early spring and i recall here's the results of incorporating our renewable resource scenario a does one hundred megawatts of southern california solar and 25 offshore and 25 of geothermal and a list of the shortfalls

require short time are netted by sales nato summer months. >> as you can see with the addition of the new long term renewable conservator apply in real estate brokerage and splimentd but short time portfolio hetch hetchy will meet an annual energy apply to the market. >> supple to summarize hetch hetchy sales will grow 5 percent over the next decade. this customer low growth with the hiv will require hetch hetchy power to procure one hundred and fifty megawatts in three three and adding new hetch hetchy energy

market risks maintaining in compliance with the safe policy requirements. the energy supply needs will be met with the combines of the new renewable sources in support of portfolio diversity. going back to our hetch hetchy power illustration this is one future say in 2035 might look like and hetch hetchy customers seek the demand from one hundred and fifty megawatts to two hundred and 40 megawatts with one had the and one hundred and fifty megawatts to r50ib8 serve our retail customers. (bell ringing) looking ahead. considering the commission to adopt the aircraft for the end of the commander year staff needs to finalize and

submit this to the california commission and finally staff will monitored our customer logos and have further analyze for an open mall cost fetch and commercially renewable energy and keep the commission informed of our finding and recommended actions. >> that concludes my presentation. i'll be happy to answer any questions you may have. >> thank you for that presentation that was quite and believe it or not and balance sheet. and pretty serious stuff i assume we have questions about that start with commissioner. >> i have a couple of questions but start from our hydro. >> pull you up the slide you

mentioned um, it is using historical data i'm to wait until 10 slide 10 please. thank you. >> perfect. >> so you mentioned this was used generated using historical data. >> uh-huh. >> i of the wondering does anybody used additional preserving i mean historic data is not what we're anticipating i'm wondering introducing other extreme fence to get there are ways to do that obviously we have very sophisticated models how to do this but any introduction to look at, you know. historical data and then even anymore to have a broader sample because what if instead of those three or four years of

drought we have three years; right? >> and for another thing we have. >> you have a question; right? t mid one second. >> (laughter.) >> if you have multiple back to back how do you manage that those things can be quiet unexpected. >> so we need the run the activities i totally agree have to be looking at this i'm an thief river falls not all in the i think we have 10 minutes. >> fence happen and is reason

we have the 20-year historical is that we don't have a great tool for a 20-year plus forecast moving forward for what how we have the hetch hetchy say this is great but let's stress that analysis my team is responsible to do exactly that we have to know the why how we're to manage 2 and the risks we're to be associated with that portfolio. this is part of our opention - we we found out everything between the years 20 thirty a 2035 were going to be a need for

extra generations and main demands doing it because the demand curve was exceeding our entry and i know for. >> fact mr. richie has a team that are up in the mountains and do you go i've had a few conversations and doing a lot of the forecasting beyond. the historical data and the analysis so i suggest may be an opportunity for you guys there are sort of new um, technologies we can do a better projection considering the climate scenarios and then as a follow-up on that question going to slide um. >> sorry one quick second.

>> slide 15 and 16 while you're going there i assume a power agreement you have highlighted; right? >> you're in a cost. >> no. >> because we're going looking at this like in three three we want to make sure we have cost effective. so everything we're doing i spoke quite a bit about that earlier with the portfolios we want to make sure that first of all, that we're um, you know. in a new new assets we bring into the portfolio and reliability and keeping the lights on for our customers and resiliency in the portfolio. >> so we the four different scenarios based on what we could be purchasing in today's market that is how we looked to going forward that would be great we

we knew is technologies but taking what the snapshot we have today that's how we look at the planning tool and help to look at the portfolios every day snapshot day and what it looks like tomorrow and continue what i presented today is ongoing for us. the reason i'm asking that. >> i'm wondering how many other utilities are out there on those projects as part of the portfolio? >> yeah. >> ; right? and (laughter.) that's why i asked that question; right? (laughter). >> we're all counting on that and 50 of those a power monopoly in california but beyond there all those small utilities and that's, you know. we are all

competing for the same thing. >> one other thing i want to mention you guys talk about how hundred different environmental regulations to release water at different times what will happen. that mate impact you're reduction think about that as part of the our scenario analysis too and then the last thing is that on slide 19. so earlier, you had a slide and it said 8 plus megawatts and had the same thing on the earlier slide. um, up and running i brought this up to, you know. i figure out study are solar panels and actually, i think since there are some encounters how much power we'll see what happens and the technology. i think we should look at how we

can put programs together for example, you know. you're probably looked at this is you can i can't remember the name of that but program you pay rent on everybody's roof and put solar panel on that and have an agreement think those power that is generated and i'm sure it it will come to me that's why we have different kinds of spaces and i'm trying to understand what are the other ways to increase that in our city production. beyond just thinking about where we can purchase that is public defender's office a cheaper option than getting them - those are any comments but. thank you very much. as always to exciting i love the whole integrated thing.

>> (laughter.) >> that's great. >> (laughter.) >> thank you. >> so a comment you made in recognition to the last question. puc does not have agreements in place with the wind projects in moral bay like the projects you see coming on (clearing throat) and also may have answered this already in several of our slides 13 and 14 and 17 show the they're in hydro electrical. >> in calendar years three 8 to 41. because of projections show would be dry years is that why. >> we want to make sure that we were using anomalously in our forecast it is extremely important i agree that especially in a micro climate

environment and the climate change we were showing in the generation portfolio i want to make sure we're doing that on both sides. >> thank you. >> commissioners? [off mic.] >> great. >> 4 i's.

>> water and sewer bills (affordability policy), with a focus on typical and low-income customers. >> to make sure we have the financial resources in the future and the big capital improvement we would. okay. how about the financial policy what financial policies and have they having guidance for the long term decisions we have policies many are important and guide all the choices. we have a fund balance reserve to make sure we have few minutes for emergency operations and coverage policy to make sure we can meet the benchmarks and pay the debt commitment and have a capital fidgeting policy that talks about how we're funding for

issuing bonds and sets the target about the rates how we have our budget as a gap was we don't have any policies that speaks to customer affordability that is what the policy is ama to target. we have existing documents that say we should care about affordability of puc the charter says how to look at the restructures to support of low income customers and one of the existing policies that we should care about accountability they are helpful in doing the final planning they make decisions. it almost community-based organizations without saying to say that san francisco is an extensive place to building but in the context we need to say. as one of the

highest cost of living in the entire united states san franciscans face challenges just to continue to live here one example the medium household makes one hundred and $44,000 a year and according to the california later and living wage for a two person with three children just to meet the needs is one hundred and 61 thousand dollars a year this is a gap our average household struggle with housing and transportation and with their utilities. right now we have a large number thousands of customers in the wurtd are behind and you're fame with the programs but still there and struggling. our customers everyday make decisions about how they're going to fund their basic necessity we have an

observation to make sure we considering their needs when we make your financial discussions. this slide shows the existing affordability metric we have in place for wurt for the mediums households they're their bills should not go past 12 percent this is the water and power a in the next 10 years this graft and all future grafts are using the ray increases were approved in the february 2023 financial plan and is residential rates out of rate study in may that's where those numbers are coming from the red line this is the target i can see in if we are meeting in targeted we're well on track

and in fact, over the next 20 yearsblast will meet that take the, however, this average monthly household bill from one hundred and 23 three today to 4 hundred and 6. >> inflation is real $400 be not the same as day but hard for me to pay my utility bills that 4 hundred water a sewer bill is affordable this this is something that we engaged the feedback have we drawn that red line that is appropriate for families in san francisco. >> we want the lines we draw the details self passes smell check but also know we have to do giant capital programs to say operational if you don't invest

in our capital system you can end up like flint, michigan we need to have the flexibility to side those capital improvements while they're helping our customers and finally to ground the met i can see and finally that last slide is water and sewer nothing for power this policy is setting one piece of that we'll continue to develop for the power enterprise. i want to destine terms because there are a lot of ways to measure income and can get technical what it graft on the left is the ideas of winding up every household from the low income to the highest income the mediums

household is a household 50 percent gray data in san francisco make one hundred and $26,000 a year and winds tiles are the percent tile the lowest household is the customer that is 20 percent of hours this san francisco are under that line and they're making $38 and the second is the percent tile we're lining up everything and defining those terms they come back and one thing on the note the distribution of incomes ferry is united states and as you can see that our medium household income is 8 three percent higher than the rest of country and our households make 80 percent more in the entire u.s. we want to make sure we look at sfta san francisco economic strategies when we look

at the target for accountability we're not the same as the rest of country wand air we want to focus on racial equity and taking actions to promote racial equity we have an obligation introduce promote racial equity in our performance and long term planning this ties to thinking about the income and on this chart we're seeing on the far left the dark blue bar for all san franciscans this is one hundred and twrif thousand in the appraiser slides on the right this is by the medium by different races everyone single person of color in san francisco has a lower medium income than the city overall we just look at the city evil we're going

improper ignoring. >> guess first is a typical hourly we want to keep - we're ltgo back from the mediums to accountant from the high cost of living and is low income household we're looking and not a lot of magic it is an household that faces the challenges. finally, i want to talk about what is the target? that's what we're measuring and stay within that red line (bell ringing) that the 40 percentage actually we're arbitrating their average water bill under three percent for the low income tackling that

under 7 percent and is low income households we have various programs help to bring those bills down and look at that and keep those bills under 5 percent of income all the target for water and sewer only (bell ringing) for the power we need to do anymore work. >> keep on going. >> thanks >> um, so talking about that target what did it mean what do you do with the target? to have decision makers this establishes for measuring the performance metrics and reporting our aim for the operating budget that keep us under the target lines. however, we know that not always possible and he has regulatory

requirement and may issue an rfp we have to make policy decided we need to invest more to stay within that target if we do that we'll report that out to the commission and the public it is important to transparency in our planning. this means because we're doing in 20-year look gives you the opportunity to see what we can do rates don't jump out over night if we see it 15 years we're to go over is line we are to look at ways to bring it down and seek outside funding or ways to help people so our goal is to make this one piece

of our position to make sure our customers are getting the support they need and maintained. >> i'll close by showing the average household bills under the new metrics this is the same graft you saw because changed the red line this red line is showing the 7 percent of households 20 percent our low income and an orange line the three percent of that 40th percentile households. as you can see that now and last night's according to the rates approved we will meet this gap the gap is closed it is realistic assessment of affordability for san franciscans. >> this is also a new view this green and blue bar is the bills

for customers in the program it ties back to the 5 percent of 20 per tile household and we continue to meet this target. and one familiar with the wurt and sewer the orange bars is hetch hetchy power average household bill over the next 10 years and the purple bars the discounted bill we don't have a line like wurt we're not ready to set the targets yet we need to do more thinking for the 80th percentile they paying .9 percent for their power bill and over the next two years finally here's clean power sf and more

complicated because a reminder we only control the generation portion of bill and pg&e and pg&e delivery charges are there. so that's what you see in the back chart a couple of slides with the clean air and the red and blue and orange funded by penalizing and again, we're for the reporting a lot of complexity we don't control the bill but we are ready to forecast what we think customers with paying and with that, i'll be happy to answer any questions you may have. >> thanks. >> thanks it, it is to thorough and important and fits in with lawful the policy we have soto put that on the agenda is absolutely very important. i have one question. adopting this we put the targeted in the

policy no later than what under federal and state laws and raising costs this is still and metric we adopt to keep in that mix when you said, yes we have a target and the red line for for whatever reason in 29 comes up we can't meet it it comes back to us and say we approve it that's the flexibility of this target in a nut shell. >> that's exactly iowa right this is a our decision making like the goals with the atm went through that is not imposed by outside regulators may have their own criteria we hold our own standards of care. >> i think that is wonderful. thank you. >> for putting this together and once we posted with that

have questions i see that - i hope this also as commissioner maxwell said people know about where we're taking those kinds of income and equitability seriously. >> xaukd. >> thank you for that presentation i have a couple of questions you have 6 and seven hundred wurt buildings for a single-family homes can you remind me how many? >> i'm going to get this belong i think that is one one hundred and fifty thousand. >> i thought n my head. >> and another thing is do we have any sense that 6 or seven hundred is great in our system that caused them to fall behind payment and the bills are ballooning and they're not able

to pay for that a gradual problem? >> uh-huh. >> do you know. >> objective every hourltd experience is different one of the things the trends during the pandemic with a moratorium on water shutoffs and people were out of work stopped pcia in their bills or couldn't afford it or for whatever reason and 6 memos behind on a 6 mobile is hard to catch up the biggest trendline the customers are facing right now. >> the reason i ask that a identifying it is extremely you're asked to report on the discussions and i'm sure you followed some of that academics talking about how we have to move forward from the 2 and a half percent the same thing is happening in chicago and other cities. and across the country

and different cities i present trying to zoom in and understand this what the percent will be but at the same time, i on you should look at the odd side to understand how can we help people move forward and be able to to gradually pay rather than be thankful i see you want to say something. >> go for that. >> it is combination with what was said it is true we as a careers in the pandemic as you recall we came here before and told you at the state level to advocate to get money provided by the state to alleviate the

challenges suppressed for the pandemic and provided a lot of relief to those individuals we are actionsly monitoring that side so it is very much in our screen. >> and the the other piece the biggest trendline before the pandemic the fact that people have leaks and they don't know what is going on and struggle like not paying or paying massive bills don't have to pay it so those used to be another topic. thanks the smart metering. >> monitor and realtime people's water usage and if there's an issue we identify we

can get in contact- >> (multiple voices). >> to alleviate and minimize the challenges they have thanks smart metering is important for san franciscans. >> absolutely this is very important. >> on the power side and i also note obviously we don't have - hard time figuring out what is going on but on the power side do we know out of numbers you provided on the projects do we know what percent of those are apartment buildings and or people who are residing in apartments um, single-family homes? >> almost all hetch hetchy residential residences are apartments and condos and a house is a house we're part of that. >> so but it is different yes.

yes. and . >> clean power but hetch hetchy power specifically is almost all multi-family. >> brought it up last time somehow somebody needs to look at how the single-family homes sorry not single-family homes apartments have issues pcia in their power bill how are they pagan for i don't know (unintelligible) but a lot of those are building into their rent? >> so how did that account somehow we need to capture that. >> multi-family customers are one of the harder to tangible we don't have a direct relationship with them or data i agree so somehow. >> i wonder if we can use is

power people - i mean the power side to identify the power are there challenges for them for paying oat utilities bills or provide some relief? >> again, i know that is complicated and some of that but show you be creative so putting is on here to forecast it somehow. >> there's a whole team thinking about what we can do for families customers and reach out to them. >> thank you. >> that's all i have to say. >> commissioner stacy. >> thank you i really have a comment i really appreciate the clarity and the focus of this presentation. thank you. and it really when we look at the affordability metrics amplifies so much all of pieces the puc

puts together in order for us to maintain our rates within affordability to pursue how and when we pursue all of the financing work that the departments does and how we finance and try to keep those costs as low as possible and then i guess on the payment end when it is accountability metrics really makes me want to look for ways of supporting those households for 5 percent of their income it pout towards wurt. >> i know that is legally constrained for for how we set our rates but encouraged how as

general manager mentioned to find state funding, federal grant money, even general fund money to support those low income families that really struggle bus it is really hard to see those numbers not really sympathies but appreciate the work the puc does to maintain that affordability and comment on the commission as well to keep that in mind thank you for that presentation. >> already. thank you. >> commissioner ajami. >> one thing i want to actually pass through is in your water use community-based organization down further we'll have very different revenue projection

than we have now; right? this will impact us very kifl differently so somehow run a scenario on that situation because how are we going to balance when it comes to paying off our debt and operating high quality and dealing with the changed revenue and affordability. i think all sort of coming at the same time and so, you know. i appreciate everything that is done here but (unintelligible) you're sort of forcing those numbers. >> okay. any other comments? thank you, again, for that great presentation. so open up for public comment. >> members of the public present to provide comment on item 12?

>> seeing none, i'd like to note we have one written communications which was provided to the commission and will be included in the minutes. >> thank you. >> so is there a motion to adopt those affordability metrics title of for 12. >> so moved. >> and motion and second roll call, please. >> or sfo), and the san francisco public utilities commission in an amount not-to-exceed $50,000,000, with a term starting december 4, 2023, through december 31, 2028, for the airport to procure and manage project management support services and design-build services to replace two existing airport substation transformers with three new 55mva transformers and other supporting electrical systems and for the sfpuc to reimburse the airport for cost. this action constitutes the approval action for .

>> who will be presenting. >> barbara hale general manager for power madam secretary was expensive. the airport with one of the largest customers their load is growing and needs to be improved to meet that need we are proposing a memorandum of understanding we will be reimburse them and the corvette will be incorporated and recover the costs over time we concurred and with that, i'll be happy to answer any questions you may have. >> >> simple any questions from the commissioners? >> our big airport. thank you. >> thank you. >> ms. hale no commissioners

comments as members of the public any comments. >> i don't see anybody coming to the microphone i'll entertain a possession to adopt in operation to execute the contract. >> i move. >> okay. >> motion and second i heard squeezing in under only motion. >> president paulson, aye. >> commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy. >> 4 i's. >> any communications? >> pointed out by anybody? >> 0 we'll move on to item 15. >> 15. items initiated by

commissioners (discussion only) anything my of my colleagues have none therefore let's read we will i guess weigh adjourn or move on both closed session. >> it is. >> actually, i need to read the item and call for public comment. >> before we into closed session read that read that mandatory discretionary reviews. >> >> 18. closed session: conference with legal counsel regarding existing litigation (government code 54956.9(d)(1), san francisco administrative code 67.10(d)(1)): shally nguyen et al v. city and county of san francisco san francisco superior court case no.: cgc-22-602620date filed: october 22, 2022. francisco to pay shally nguyen $35,000.00 in exchange for a full and final release, subject to final approval by the board of supervisors. (action item) any members of the public to provide comment on closed session item 18.

>> seeing none, so let's entertain a motion to assert the attorney-client privilege is there a motion. >> move to insert. >> second. >> roll call on motion to insert. >> president paulson, aye. >> commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy, aye. >> 4

(in closed session). >> . okay. so we're back in open session. >> we are back from closed session and commission is recommending the board accept this settle referenced in the item so a motion regarding whether or not to disclose this in closed session. >> motion not to courthouse. >> move not to disclose. >> motion and seconded roll call, please. >> president paulson, aye. >> and commissioner maxwell, aye. >> commissioner ajami, aye. >> commissioner stacy, aye. >> 4 i's. >> okay. so there is no other business agendized so we're now in adjournment thank you, commissioners [meeting adjourned]

when completed in 1923, o'shaugnessy dam was the largest of the time built with over 660,000 cubic feet of concrete and 700,000 pounds of steel. what ask most impressive the purity of the water in hetch hetchy reservoir. >> quality of the water coming down the tuolumne river is snow melt rung off of grantite. it does not pick up pollute annuals the most pristine water

source wrochl getting it from the dam to san francisco was a challenge. the construction of mountain tunnel through 19 miles of grantite brought the water to the reservoir and then to the moccasin power plant the pipe lines called pen stalkers. for moccasin it flowed across the san wa queen valley where michael o'shaugnessy failed a daunting challenge. >> most feat was tunnelling throughout coast ranges. which was the tunnel was 28 miles long. it was an under taking but we persevered he wanted to drill through so it would be gravity flow from beginning to end. there were 85 miles of tunnels some through grantite and 71

miles of aqueducts to carry hetch hetchy water to the crystal springs reservoir >> o'shaugnessy delivered to bring water and generate power from the tuolumne river 167 miles across california by gravity flow to the san francisco bay area. >> this o'shaugnessy dam centennial moment is >> this job, it's really not an i job. i wouldn't be able to do this job without other people. i make sure that all the regulatory and nonregulatory samples get to access in a timely manner.

we have groundwater samples, you name it, we have to sample it every day. i have ten technicians, very good team. we work together to attain this sampling. >> a sample is only as good as when you collect properly. if sample is not collect properly according to not the proper protocol, the sample could be biased, could be false positive or could be false negative. so all this to have good so you can manage the sample collectors, as well as the schedule, and she is pretty good, and she is very thorough. and so far, i think that she is performing a very good job. >> this job is really not an i job. i wouldn't be able to do this job without my team. you can assign them any job, they can handle it, and again, without them, i wouldn't be

here. i take pride, you know, for what i do. we are providing a very good water department. my name is roselle, and i have been working with the water been working with the water hi, i'm chris and you are watching san francisco rising. this is about rebuilding and reimaging the city. we will talk about revitalizing downtown. >> thank you for having me.

>> the initiatives in the downtown area and enjoy businesses. perhaps you can tell us about your plan. >> yeah, sure. well, you know, first i'd like to acknowledge we are here visiting union scare. this is the heart of the city and people come to celebrate life's greatest moments whether it's the holidays or buying your prom dress or getting married. you always think about union square as a place to celebrate. we would like to continue in that celebration especially postpandemic. this is a great place to celebrate life. we want to be creative getting people outdoors. we are still coming out of the pandemic and enjoying what we have to offer think about the beautiful hotel and historic

district. we have world class shopping destinations and theater here we are using our strike thattic plan there was a time when weus people want r want a bit of everything appeared experience. one of the newest initiatives is union square. in you come down you will see blooms cascading from hotel awnings and blooms on historic building fronts. you will see them on bus stops. you can go to many of our restaurants and they have cocktails. they have food and of course, being connected withification we have our bloom gown that's

behind me. so, a announcement f ways to celebrate blooms. this is another great time of year for union square we are kickoff the holiday celebrations. they bring out the animal window. we have ice skating. music is another great way to come and enjoy union scare. we are a recipient of the latest grant. this is bringing it into the public life. we are doing it here. this is in our park. it's really show this is great

when it comes to music. >> we have been ignoring the fact for the districts it's a pretty common place across the country and opportunity to transform our spaces. >> yeah, i agree with you 100%. >> we have 13,000 hotel rooms. what if we had a school or soccer this is something we couldn't do before. our rates prior to the pandemic was under10%. we are higher now. >> we have businesses like

cable car a lot of history and innovation here as well. we want to be ready for the opportunities. this is where some office spaces will come. we are seeing office leases in union square. the cable car comes through it. why not come to work in a vibrant space. >> a lot of the businesses have been remarkably resilient. can you share success stories and talk about how they have been supporting them. >> this aligned with what i just said about historic neighborhoods. they have seen everything from the great depression on. in fact, the earthquake of 1906. we have been around for hundreds of years. celebrating 116th birthday. open to the public in october. they are not gone. they are just down the street

a beautiful store where people find great fabrics. contemrare just here on powell street. a lot of the luxury retailers are expanding neighborhood print. >> we talk about the area with a rich history. what about the spaces and stronger sense of community. >> yeah, you know. i have to say these challenging times brought the community together. we had a unique opportunity here. was an opportunity to look at the district and assess where we might need something. we need a bit more of

everything. we broke it down into different categories. we looked at economic development and change offering. people were accessing, you know, nightlife, food, or shopping differently out of the pandemic. we wanted to look at marketing and what it meant to get the news out about what we were doing in the district. looking at our own organize as well and what we would need to get that out there. also creating a safe space. we are creating a safe and secure area. our locals in particular you can go shopping anywhere in the bay area. any of those places will look like any other place. in san francisco, you are somewhere special. this is a unique place and we

needed to get it right. we have done that work and continue to support our district and see different ways to do business here. to be creative and innovative. we were able to change the planning code to make it more flexible to do business here. we are the c3r. we have three floors of retail maybe today we don't want two levels maybe we just want one level instead of too much retail we need a school or something else. very exciting times and really interesting people and ideas. >> that's great. >> so, i guess, finally, what do you have for san francisco residents and businesses to be apart of this.

>> this is the gateway of san francisco. it only drives. right now, we are so many and still love our great city and what we would like to see. this is san francisco and the residents. look around, have a coffee. listen to music on the weekends. we have so much to offer union square. with that, support these businesses. we have a number of openings, a number of businesses betting on union square. in fact, we have a new hotel. the owner is from back of house, that's the name of the organize. they brought us several other residents and now this

wonderful restaurant, i italian restaurant. this is on top of the old restaurant. it will have a rooftop and one of the largest in san francisco. it's a london based business abdomen and betting on n square. we have a great bar scene popping up and speak easy and pch. hawthorne, school. this is the place to come down and enjoy. come, don't forget union square is the place to be. certainly in the years to come. a very difficult time of course for any major city. we are dealing with the same thing. explore and support our businesses here. we'll continue to thrive. come on down, you will be wildly, also surprised at how

beautiful it is since we are still blooming. >> thank you, that's great. it's great to hear your optimistic outlook on restoring this part of time. >> thank you for having me and taking a little time to showcase our heart of san francisco. >> thanks again. >> thank you. >> that's it for this episode. we'll be back with another one shortly. thank you for watching. >> for us, we wish we had our queue and we created spaces that are

active. >> food and drinks. there is a lot for a lot of folks and community. for us, it started back in 1966 and it was a diner and where our ancestors gathered to connect. i think coffee and food is the very fabric of our community as well as we take care of each other. to have a pop-up in the tenderloin gives it so much meaning. >> we are always creating impactful meaning of the lives of the people, and once we create a space and focus on the most marginalized, you really include a space for everyone. coffee is so cultural for many

communities and we have coffee of maria inspired by my grandmother from mexico. i have many many memories of sharing coffee with her late at night. so we carry that into everything we do. currently we are on a journey that is going to open up the first brick and mortar in san francisco specifically in the tenderloin. we want to stay true to our ancestors in the tenderloin. so we are getting ready for that and getting ready for celebrating our anniversary. >> it has been well supported and well talked about in our community. that's why we are pushing it so much because that's how we started. very

active community members. they give back to the community. support trends and give back and give a safe space for all. >> we also want to let folks know that if they want to be in a safe space, we have a pay it forward program that allows 20% to get some funds for someone in need can come and get a cup of coffee, pastry and feel welcomed in our community. to be among our community, you are always welcome here. you don't have to buy anything or get anything, just be here and express yourself and be your authentic self and we will always take care of you.

>> good afternoon. i'm carla short, director of san francisco public works. thank you. thank you. as the stewards of the city's 125 thousand plus street tree, i'm beyond thrilled to welcome you here to celebrate this important milestone. we also wish to acknowledge today that we are here on the home land of the ramaytush oholone, the original people of the san francisco peninsula. public works is committed to working with the city