>> let's call to order the meeting of san francisco public utilities commission meeting of june 25, 2024. roll call, please. >> paulson, here. rivera, here. stacy, here. you have a quorum. >> thank you. so, i like to annoyance announce the san francisco public utility commission we acknowledge that we are on the unceded ancestral homeland of the ramaytush ohlone who are the original inhabitants of the san

francisco peninsula. as the indigenous stewards of this land and in accordance with their traditions, the ramaytush ohlone have never ceded, lost nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. as guests, we recognize that we benefit from living and working on their traditional homeland. we wish to pay our respects by acknowledging the ancestors and relatives of the ramaytush community and by affirming their sovereign rights as first peoples. so, mr. secretary , can you call the first item, please? >> item 3, approval of the commission meeting minutes. 3a is meeting may 14, 2024. >> okay, i got it. we have a few sets of minutes

that we are going to be approved today, starting with may 14, 2024. commissioners, you have any comments or changes to the minutes? if not, let's open up the may 14, 2024 minutes to public, please. >> remote callers raise your hand if you wish to comment on 3a. any members present who wish to comment on the item? >> seeing none- >> moderator, any callers with hands raised? >> there are no callers that wish to be recognized. >> thank you. >> public comment on the first of minutes is closed. motion and second to aprive the minutes of may 14. >> move to approve. >> roll call, please. [roll call] >> we have another set of minutes, may

28, 2024. any corrections to the minutes of may 28? seeing none, open the minutes of may 28 to public comment, please. >> remote callers, please raise your hand if you wish to comment on 3b. any members present who wish to comment? >> seeing none. public comment. remote. >> moderator, any callers with hands raised? >> commission secretary, there are mow callers that wish to be recognized. >> thank you. >> motion and second to approve minutes of may 28. >> move to approve. >> second. >> motion and second. roll call, please. [roll call] >> three ayes. lf >> now we have c, minutes of june 11, 2024 of the last meeting. any corrections to those minutes on june 11, commissioners?

seeing none, let's open the minutes of june 11 to the general public comment, please. >> remote callers raise your hand if you wish to comment on 3c. any members of the public present who wish to provide comment? >> seeing none, can we go to remote comment? >> moderator, any callers with hands raised? >> commission secretary, there are no callers that wish to be recognized. >> thank you. >> thank you. public comment is now closed. can we get a motion and second to approve the third set of minutes of june the 11th? >> motion to approve june 11. >> second. >> motion and second. can we have a roll call, please? [roll call] >> three ayes. >> okay. we are up to the date on our minutes. thank you so much. so, let us go to item 4, mr. secretary.

>> item 4, general public comment. members of the public may address the commission on matters within the commission jurisdiction and not on today's agenda. remote callers, please raise your hand if you wish to provide general public comment. do we have members presents who wish to provide general public comment? >> please come to the microphone. >> commissioners, i want you to pay attention. we have come here several times asking you that you need to pay attention to the community of the bayview. and we don't see any progress in that direction. if you are paying attention what is happening at the board, especially the budget and the appropriations

committee, practically everything when it comes to funding in the bayview has been stopped. if you look at assistant center, they used to call it contracting center, now it is assistant center, it is under-utilized and somebody one of you all should go there and check it out. we went to the controller office and the controllers were there. the head of the investigation was there. the head of the audit department was there. and we were-each of us gave a presentation. something that the controller never experienced before from the community.

i'm asking you all now for the final time, going to come here and plead, much like you go to the supreme court, because you all have the money. if you force us not to take holistic action, then we'll take the appropriate action. i'm fed up. >> thank you. are there anymore folks in the commission room for public comment? seeing none, let's go to remote, please. >> moderator, any callers with their hands raised? >> commission secretary, there are three callers that wish to be recognized. >> thank you. >> caller, i unmuted your line. you have two minutes.

>> eileen boken [indiscernible] based on the ocean beach master plan, which focused exclusively on wave action and did not include sediment transport even though the released a study [indiscernible] causing erosion on south ocean beach and [indiscernible] north ocean beach. the on ocean beach master plan was related and hasn't been updated to include science such as usds california ocean beach ocean modeling system. [indiscernible] expensive and likely ineffective. [difficulty hearing speaker] stones town would have onsite dedicated piping. january 22 of this year, the

board of supervisors land use and transportation committee, the puc confirmed there will be a hookup to stones town on site. however, at the may 28 meeting of the puc commission, it was stated that stones continue was [indiscernible] instead pay for [indiscernible] at the june 24 meeting of the capital planning committee, on the stones town enhanced infrastructure financing, oed stated this was because there was no puc hook up nearby. however, there are possible hookups nearby at 19th avenue and [indiscernible] and ocean avenue and victoria. thank you. >> thank you caller. caller, i unmuted your line. you have two minutes. >> thank you. this is peter dreck myer,

tuolumne river trust. i think many of you, perhaps most agree [indiscernible] provides a wonderful service by sharing his anal ysis and like to encourage to reread the most recent letter. there is a quote from the long-term vulnerability assessment that begins in the situation in which major capital investment is required to add additional supply to the system as a result of new in-stream flow requirement and or decrease in precipitation as a result of climate change, demands needs to increase significantly [indiscernible] so, one, we know from long-term availability assessment is climate change isn't going to hit the sfpuc too hard if at all. it isn't in stream flow requirements that can impact the puct is the response.

any other agency in california could go about their business with the bay delta plan in place, if they have the sfpuc storage and water entitlements and not worry about rationing or desolving alternative water supply plans. the design drought really drives the potential problem there. now, this closes by saying, considering new capital investment the trade off must be made [indiscernible] dave's position a long time. the alternative water supply plan keeps skating along without any challenge to the amount of water. very expensive water. but a lot of people are paying attention now. the board of supervisors and many others, so i would encourage you to direct staff to produce a memo that focuses just on these capital investment risks that are included in the long-term vulnerability assessment. there is a lot of good information in the document that was never cited--

>> thank you caller. your time expired. caller, i'm unmuting your line. you have two minutes. >> this is greg--i can see the commission is pulled in many directions, but i have a different sustainability concern then water. it is fiscal sustainability of the district and analysis i sent you all showed a $6.7 billion deficit in your reserves and by that deficit what i mean is, you don't have enough money to replenish assets without borrowing. it looks like between 2022 and 2023, the level of your debt service increased so much it is starving ongoing cash flow and you won't have enough cash-flow to build your reserves, so i see the situation as a fundamental issue underlying everything you are trying to accomplish

and encouraging the commission to under take a audit of-don't know if i should call audit, anansis and welcome inquiries. my contact information is in the letter i sent. i use industry standard techniques and national standard groups so i hope there won't be dispute about the findings, but happy to step through them and i want to just punkuate, you have a serious problem. thank you. >> thank you caller. commission secretary, there are no callers that wish to be recognized. >> thank you. >> this public comment is now closed. okay. so, can we read the next item, please? >> item 5, report of the general manager.

>> thank you mr. secretary. first, before i go to item 5a, we will put item 7 with the delegation of authority the general manager and that would be heard in the first meeting in august. >> so noted. thank you. >> item 5a, commissioners, i like to start the meeting on celebratory note to recognize the incredible service and dedication of a recent retiree with over 25 years of service to the san francisco public utilities commission. today we congratulate someone who demonstrated the highest form of commitment and pride in public service, ray jackson. plumber for wastewater enterprise retired after 25 years of service. i like to present ray with a honorary resolution. whereas, ray exemplifies community leadership and dedication to maintain the southeast wastewater treatment plant and improving the lives of san francisco residents and

whereas, in the performance of duties demonstrated commitment and are devotion wrurking passionately, sometimes after hours to repair lines, fix broken water heaters and restore restroom facilities creating a safer work place. raymond known throughout the southeast wastewater treatment plant for his humor and positive attitude earning respect and gratitude, in particular instrumental boosting the plumbing shop morale. recognize the long and faithful service raymond rendered to the people of san francisco as a city employee by his excellent performance. therefore, be resolved the commission express our sincere appreciation and gratitude to raymand jackson for dedicated service to city county of san francisco and best wishing to him and his family for continued success, happiness and good health throughout his well earned retirement.

congratulations. [applause] next i like to invite anthony to say a few words and introduce ray jackson. not yet. not yet. you got to let him say good stuff about you. >> you are --okay. >> my name is anthony. i had the pleasure supervisor ray the past few years. i took over for ray as he was plumb shop supervisor. most know, navigating the systems the city internet online system can be extremely complicated and very daunting for a new employee. ray made the transition very easy. he sits down with me and walk me through.

ray, i wish i had your patience. ray and the 20 plus year at the sfpuc made many friends. everyone who meets ray seems to have something good to say. i run i to a retired employee and when they find out i'm in the plumbing shop they ask about ray. my wife's grandfather worked for ray many years and when i say grandpa, ray he asks how ray is doing. it was a pleasure and wish every coworker can have the same attitude as ray jackson. thank you ray and i like to give him this plaque. [applause]

>> commissioners, if you like to say a few words. >> would somebody-- >> briefly, the wastewater ag m. one of the maintenance crews where ray was. no shortage of jobs at the plant but the crew was very familiar with the jobs and ray was a part of the crews. day in and out with fixing leaky faucets to insure we are not wasting hetch hetchy water or [indiscernible] safe to discharge to the bay. up to the task and true craftman. positive attitude and [indiscernible] congratulations ray, thank you and wish you all the best. [applause] >> so, commissioners, i think i'll start off. i didn't know this was happening until now. ray congratulations on behalf

of the commission. i worked in the labor movement and been in the local 38 plumb hall a few times and when i first was head of council and walked in and they had all these pictures of hetch hetchy and plumbers this and that and some of the first stuff i knew about the sfpuc and the water department had to do with local 38 and so when i see somebody who has been a integral part of this being honored and retiring today, i want to say congratulations and it is part of the fabric of san francisco and what is really important to us, so congratulations on your retirement and i really hope that you enjoy it and that thank you for your service. commissioners any other commissioners that would like to add? commissioner stacy? >> thank you. i just wanted to say thank you for your service. without sounds like a great positive attitude and also for being a really good mentor.

employees like you really make the system work in so many ways. i wish you all the best in retirement. >> thank you. >> thank you commission. i really appreciate all the nice words everybody has been saying. especially anthony and joel. i have known joel for a long time. when he first got to puc he was a planner and one of the best. when anthony came, he's the same thing. it was a pleasure working with anthony and helping him out when he needed it. the whole plumbing shop was extraordinary. whatever we needed to do to keep the plant running and to make it the health of the nation is what we did, keep the nation healthy. again, i want to thank you all and i'm a little nervous. >> all cool. >> so, again, thank you very much. i appreciate it. >> thank you.

[applause] did we want to come up-- -commissioner rivera. >> don't go anywhere yet. >> i want to say congratulations. thank you for not only your work, but i loved hearing about the humor and just keeping the crew together and making sure they were responding with light hearts and that is invaluable and also you look absolutely familiar to me, so wondering where i know you from. >> [indiscernible] >> oh, yeah. okay. >> that is a good thing? >> yeah, that's good. i don't owe him any money, so that's good. >> [unaudible to hear speaker] >> yeah.

that's where it is. thank you so so much. totally appreciate your endeavors and to have your coworkers and supervisors come out here for you, that says a lot. thank you very much. >> thanks. ray, why don't you come up here and let's take a picture. if you get a resolution, we got to put it in a picture for posterity. commissioners.

>> thank you, ray. mr. general manager. >> we are still on. sorry.

item 5b is quarterly budget status report. laura bush will be presenting. >> good afternoon everyone. hello commissioners. laura bush, deputy cfo. can i please have the slides? here to present the 23-24. a [indiscernible] reflects the [indiscernible] so far this year. the water and wastewater revenues are projected to be below budget. the primary driver of this is budget adopted assuming the drought surcharge remain but rescinded may 2023 before we could change the budget. this is off-set by state grant funding for arrearage and discount programs so water and wastewater.

water received $8.1 million and wastewater received 11.6 for combined all most $20 million. additionally, water had $9.8 million in assessment this year. power revenues projected to exceed the budget due to wholesales and generation. [indiscernible] due to higher generation. additionally, there are savings from distribution costs due to calculation made by pg&e and power staff and savings from transmission costs. the clean powersf revenues projected to meet the budget due to higher [indiscernible] wholesale sales. this is offset by lower retail sales due to final rates set slightly lower then the budget. in addition, power prices [indiscernible] resulting in a surplus for the power purchase budget. year end financial results are all projected to meet or exceed policy targets and as usual, i'll go

into more detail in the next slide. so, for water, the net operating result is negative $3.6 million. in addition, as mentioned, we paid $9.8 million in legal assessments this year, leaving with net impact negative $13.4 million. the sources are down by $16.7 million, largely driven by removal of drought surcharge and offset of the $8.1 million. on the use side we have savings and labor costs and debt service and in plan general reserve contribution. wastewater the net operating result is up $15.2 million. total sources are down $20.9 million, similar to water. this is driven by removal of drought surcharge and offset by the state funding in $11.6 million for wastewater for discount and arrearages in

the pandemic. on use side we have savings cost. the power, much more positive story. the net operating result is up $63.6 million. there are $6.9 million in savings from project close outs leaving with a net impact of $70.5 million to year end funds balance. sources side up $12.8 million, retail sales slightly below budget off set by wholesale power sales up $14.6 million due to higher sales from resource adequacy and high generation. on the use side, significant savings. these are coming from power gas and steam costs, which is largely due to high generation avoiding additional power purchases. also have $12 million in savings from

power catching in in pg&e calculation. [indiscernible] $4 million savings in resource adequacy. remaining savings are budget to contingency we won't spend. lastly, clean powersf, the net operating result is up $41.9 million. sources are on budget. the power sales are slightly lower but this is off-set by higher interest income. savings in labor cost, power purchase and general plan countbution. all all financial ratios are on target and happy to take questions. >> thank you for that report. this gives all the top bullet points of everything going on. i have no questions. commissioners, do you have

other questions? commissioner stacy. >> thank you. thank you for the report. it is fairly straight forward. no surprises. i just want to make sure i understood on your water budgetary variances, you have a $9.8 million item for legal settlements. this is some of the water main and damage issues that we had in the last year, is that right? >> yes, largely related to single settlement which probably aware of. >> thank you. >> i do have one question. i would be remiss if i didn't ask. any time i see labor savings and better ask what that might be? >> vacancies. we budget for the number of positions to be filled and due to 10 over hiring delays and people leaving- >> got it. >> we are trying to do a better

job accounting for salary savings through the next budget, which i explained during the budget hearing process. >> right. oica. okay. thank you. seeing no more questions from the commissioners, thank you. let us go to public comment, please. thank you for the report. see you soon. can you read public comment, please? >> remote callers, please raise your hand if you wish to comment on 5b. any members of the public present who wish to comment on this item? >> seeing nobody in the commission room, let's go to remote. >> moderator, any callers with hands raised? >> commission secretary, there are no callers that wish to be recognized. >> thank you. >> thank you, public comment on the quarterly budget report, 5a is now closed. mr. general manager- >> wastewater enterprise quarterly

report, including southeast area major project update including the biosolids and headwork project. besy tan will be presenting >> good afternoon. besy tam, director of wastewater capital programs and today i will be presenting the quarterly report for the wastewater capital programs for q3 or fiscal year 23-24, which covers the period of january 1, through march 30. as usual, we will start with construction updates. on the left you can see it is the photo of the project for the large diameter sewer and channel force main project. this is the large diameter sewer rehab project happening at the castro mission area rchlt this photo is the contractor pouring concrete for a box manhole at 18th and diamond street. in the middle is the north

shore pump station, wet weather improvements. this is a photo of a dry weather pump 1 that is installed and painted inside the north shore pump station area. and finally, on the right is a photo of a utility trench that is inside one of the osp or ocean side plant buildings, building 800. it is a utility corridor that is under a building that provides services to our facility, and all of the projects have a anticipated construction completion of this year, 2024. here is an update of the phase 1 status. for this quarter, continues to make a lot progerous.

progress. 1.5 percent higher in completion then last quarter at 67.6 percent with completion for 66.1 percent in the last quarter. two projects moved from construction to close out and are one from close out to completion. there are no changes for the remaining phases for ssip phase 1. in this slide, we are showing the ssip status cost summary, which is tables 3 and ssip reports. as you can see on the last column, there are no changes from the last quarterly report. overall, the ssip program is 51 percent complete with no changes to number of projects. ssip phase 1 is 67.6 percent. the other ssip project are 8.9 percent.

the percentage i cited are in the executive summary and page 7 of the ssip report. the current forecasted budget is reflects the budget approved by this commission this february and comparison with the approved budget the approved budget reflects the budget approved february 202 e32. 2023 and we have no variances in the last quaurth. quarter. facility infrastructure, we have no variances since last quaurlt. quarter. this program is 32 percent complete in this quarter, versus about 30 percent complete in the last quarter. we want to also highlight that-sorry for the small font, but there is a lot of progress and milestones met

in this quarter. overall 13 different projects achieve milestones from conceptual engineering report which is end of the planning phase, design milestones, three projects are in bid and award phases, with two projects completed environmental process and two projects completed. we like to highlight some of our construction photos and artwork that is happening throughout our system. in this slide, you can see that this is the artwork mural, the fog lilies that is up at the west side pump station project and here's a photo of the artist jet martinez who helped prepare the artwork for us. and finally, we want to also provide you a update on the major projects of southeast plant, starting again with southeast plant biosolid

digester facility project. we continue to make progress on this project. the project is 51.1 percent complete. construction is all most 67 percent. we are peaking in the construction progress this summer, and as a reminder, all the trade pack ages procured and bought out. in this quarter you can see the status that we listed here. what's very exciting is again, the placement of some of the digester covers that are in place and underway. last but not least, is our southeast plant new headworks facility project, the other major project at southeast plant. the headworks project made significant progress not only has majority of the new major equipment been installed, but part of the headworks is in temporary operation by us having

temporary power generators procured for substation equipment est iting testing and other work, so we are here at overall project completion of 86.3 percent for this project. and with that, happy to take any questions you have. >> thank you again for that report. remind us and highlight all the tremendous work going on in the southeast in particular. question, commissioners? commissioner stacy. >> thank you for the report. it is nice to have no surprises. it is pretty straight forward and no changes since our last hearing for the last quarter. i had a question when i was going through the report and looking at the individual projects. some of the issues and

challenges have been lack of resources or lack of staff resources, and so i am guessing that that has delayed some of the projects, maybe you said that in the report. is it internal shortage? is it a staffing issue with contractors or maybe it is both? >> depends on the project, it may be a little of both, and typically--the issues and challenges we carried over from the previous report, because that section explains the overall project delays and we will continue to carry those comments until we baseline and have a new forecast for the schedule, so it is not a new set of issues, it is something that we have been carrying to explain the delay already shown, so as of now, we are already addressing some of the issues. for example, one of the

projects we are changing the delivery process to design build or procuring and working on procurement of consultant resources to address some of those issues and to move the projects forward. >> i remember we saw that before too. i was just dialing down a little on it. thank you. >> commissioners, any other questions? thank you. seeing none, thank you for that report. let us open item 5c wastewater enterprise quarterly report to public comment, please. >> remote callers, raise your hand if you wish to comment on item 5c. do we have members of the public present who wish to comment on this item? moderator, any callers with hands raised? >> commission secretary, no callers in the queue. >> thank you. >> okay, thank you. public comment is closed on 5c. thank you for that report.

>> item 5d is racial equity progress report and dr. chris will be presenting. >> welcome. >> good afternoon. thank you general manager. here to provide a brief progress update from our time last couple months ago in february. before i share some of our progress updates, i will give a quick snapshot of the current agency demographic because this matters in terms of context. we have under 2400 staff at the puc. by racial breakdown, 32 percent of our staff, 32 and a half percent of the staff are asian and i included in that number, the filipino staff as well. black staff comprise 8.6 percent of the staff, hispanic and latino, 13 percent. multiracial 2.1. white staff, 42.7 and indigenous staff at .6, so under 1 percent.

the reason i want to share this, the context of the demographic information as you hear about the progress and things we have been doing. first for most, we issued in early 2023 a racial equity survey designed to capture the client of the organization squl assess where we were around racial equity diversity inclusion. based on the progress the past 4 years in regards to the commitment the agency made advancing racial equity and inclusion and diversity we wanted to understand how far we were moving. what we identified as a result of the racial equity survey were three significant findings. one that the key take aways included retention and promotion was the highest rank staff concern across all racial groups hiring recruiting at the second highest ranked. this matters, because the demographic data when we take that into context with the data with city and county, it

tells you the black population has the lowest demographic data, lowest median household income and not for out of the 10 leading causes of death, they rank lead in 9 of the categories. we are really exploring ways of making sure opportunities are provided for the most marginalized populations in the county so retention and promotion and hiring and [indiscernible] those connect with our quest to improve diverse equitable leadership if we focus on hiring and recruiting and retention and promotion we believe we can achieve a more diverse equitable leader ship. secondly, the survey demonstrated need for additional professional development addressing micro aggression, mitigating biased and [indiscernible] we

started to take action addressing issues and i'll share that later on. lastly, feedback on employee mentorship and training, interest in career advancement developing skills and relationship building was key. people wanted more mentorship and guidance and more support and continuing to advance in their careers. to address the last issue first, in the start of 2024, we launched our first agency wild pilot mentorship program. this was a extension of the 2022 program implemented by the water enterprise in partnership with infrastructure bureau to figure out what do people need in order to continue to grow in their careers. whereas, they had this we took it agency wide. we launched in january a 42 match paired program that is really designed to increase cross organizational collaboration and we focused on two

specific segments. skills base matching, and growth and professional development which is designed for the soft skills. people are really enjoying the experience of having somebody to really help them in this process. not only that, we made it more practical where they get to shadow mentors in meetings and spaces to really understand the nature of the work and so we are heavily investing in what it takes to keep our staff because we know part of the process of not just bringing them on, it is a challenge but we bring them on and do what is necessary to retain staff we lose a qualified staff that impact the diversity numbers. when i talked about the idea of leadership and management, we have looked into that and based on the racial equity survey 51 percent of our staff felt that they were prepared to manage diverse workforce. so, what that means is 49 percent felt they were not prepared to

manage a diverse equitable workforce so it is our responsibility to insure we provide what is necessary to do that. across the organization, we are getting ready to relaunch our agency wride professional development that specifically addresses managers and supervisors in regards what they need to effectively lead their team but not looking as racial equity as a add-on. that is racial equity front and center in everything we do across the organization so when we say manage diverse equitable teams it isn't just the way they look, but the context of experiences and everything they bring to the organization to insure they have the necessary supports so the leadership and management aspect of the organization we make sure that is fundamentally tied to everything around mentoring and professional development so we are getting ready to laurn that in a couple months while the mentorship program is going on the final few weeks so we are going to just naturally follow up with a lot of our activities with additional activities to

make sure there is more sustainable. the third thing we have done is really understanding the career pathways for staff in the organization. we mentioned that again, retention and promotion. how do staff in the organization move across the ladder. that was also a common theme identified in the racial equity survey. the external affairs team worked on a career pathway tool so thank you to them that increases the transparency in career pathways in the organization so if you start at a low-what is your career progression and what does it look like for staff by race and gender and intersection? how long does it take to ascend in certain fields? this career pathway tool allows us the opportunity to take a look at those things real time to understand where we need to concentrate our efforts. if we understand where we need to concentrate efforts, we can implement targeted intervention to insure that staff who would ordinarily be

left behind and not provided certain opportunities we can provide them the necessary supports in order to continue to grow and advance in the organization. data obviously is key and making sure that our outcomes are positive and that they are impactful. we are making sure that we are very intentional how we balance that and what that means for the community. we are naturally looking at our data infrastructure. do we have the necessary infrastructure to evaluate the data and do the data systems speak well to each other? there are different modes of operation that work better for others. we are ryeing to standardize the way we collect and share information so we can use that information in most impactful and practical way. how we do that is not just focus collecting the quantitative data, but the context of the data and what it can qualitatively share. when we look at numbers and percentages, what are the numbers and percentages telling about the

over hp all staff experience and what keeps people there and support they need so this is a way we sure we take a holistic approach understanding data in the organization. lastly, we have been implementing expanded professional development series. what this series is, it is a series of talks designed to advance racial equity in the organization primarily lead by myself and team here today. with this, we are engaged and transforming the ways conversations are had across the organization. some topic areas are unveil ing [indiscernible] how wree use data to unintentionally perpip [indiscernible] navigating institutional bias and decision making, strategic approach to advance racial equity and

sustaining action plan for lasting transformation so dedicated monthly sessions not only for the executive team but also the racial equity leads in the organization and will continue to expand out to reach every person in the organization within the next 15 months. obviously we have been doing a lot to advance the work. there is a lot more we can do, but we take targetedb proach to insure what staff asked are we can connect the 7 pillars. we are also under the realization the 7 pillars are very overwhelming so rather then 7 we concentrate on 4 key pillars to insure our efforts are targeted and they are practical. i appreciate you for your time and entertain any questions. >> thank you for that report. this commission finds this report important and thanks for coming again. i don't know specifically if

this is a quarterly report or ongoing. i don't know off the top of my head, but i think this is important, so i do hope this continues. not saying we have to have it every month and not any demands but i hope we continue, because there was a lot of effort put into putting the pillars together over the years and you being hired and to be the lead within the department of doing that is i think very important and thank you for doing that. i is a couple things. one, again, the emphasis on seeing you again and continuing these reports. secondly, i would and not asking for this as a commissioner to go on, but curious how this fits into the entire-all the employees in the city and what cross references are going on in other departments or how this works with hr. not asking for that report now but i probably would like some time to see that what are we doing here and is this shared in another department or

other best practice and other departments on these particular issues. and then i guess, just to ask you at the end if i assessing your report right and that is that, putting this in context. there are people that are saying, we are not hiring people fast enough and there are gaps and there is ongoing narrative about civil service and everything else out there, but to hear you say that when we are talking about in particular diversity within the department as a issue itself, different then the other enterprises, but a issue itself, that honing in on people being concerned about their career and having their career and being mentored or having the opportunity to move up or promoted or the word was retention in here, to have that be a priority right now is really interesting and exciting, because people do seem to be critical

and i think we all are critical. why are we not filling all the positions especially in the public sector? there is all kinds of debates that go on whether or not they are informed debates or whether or not monday night football quarterbacking debates why are people not filling jobs and the fact you and this policy are saying what does it take, what is important about your job, how do we get folk jz why do they want to be a employee of the puc and hone in on that is extremely important and think that can be part of the narrative why public service is something worth pursuing in general. not just in the public utilities commission, but in department, but other areas. it is just very interesting and my take away there are folks in the itcity working on the retention in the diversity context and we are saying this is what is important to

folks. it is what can we do make sure my job is better in itself and the fact you honed in on retention and mentorship and promotion and whatever else is very interesting to hear and that is my take away in your report in particular for that so thank you for that. >> thank you. >> commissioner stacy. >> thank you for a very clear and focused report. i don't have any questions. your presentation was really clear and i really appreciate the information. i just want to acknowledge the resources and focus the department and you have brought to diversity equity inclusion. it is a long complicated process to think about, especially retention and promotion and mentoring within the department.

helping people learn the ethic of diversity equity inclusion, but also learning the ethic of meantering:especially when we are short-staffed. it is hard to factor mentoring or inclusion into your day to day practice. people get so busy trying to get the work done that it sometimes seems easier to get the work done and not think beyond that. i think that is a long and complicated process to teach people to do that as part of their job and also to be able to give feedback to employees so that individuals know how am i doing. am i making progress on the career pathway and i really the puc is very focused on these issues and i

really appreciate how much time and effort you already spent on trying to gret get a sense of what the employees think, what the employees feel they need and then how do we provide that. what are the steps we need to undertake, because i think it is a long complicated and ahn subtle process that needs to be learned and embedded in the day to day and i appreciate that. i also wanted to echo something that president paulson mentioned and that is, i hope the city generally shares resources and wisdom and information on all these issues. i think you and the puc certainly have a lot to share outwardly and hopefully also getting support from other city agencies who may be working on issues in the same focused way the puc is, but i really appreciate the work

and i appreciate how you're approping approaching the result of your survey because it is a long complicated road and just really important thing to focus on. >> thank you and i would be remiss if i did notic a knowledge we do get support from the office of racial equity and know it is challenging for them too and they are trying to really steward a lot of city departments and helping advance this work. we have biweekly, monthly, work group sessions where we talk about thes issues so a lot of what i share is city and county specific. recruiting and retention is a challenge for everyone. hiring is a challenge for everyone. there is this as i shared a strangeness to the complicated hiring process in the county and it takes a long time and you can lose a lot of great talent, but you also have a lot of great talent within organizations now, so while we understand we have to fix issues around

hiring and reciteing, if we can shift the focus in the meantime to the folks we do and understanding what will it take to keep them here to allow them to advance the support and that's where the mentorship and professional development comes in and part of our work around diversity, not just thinking beyond just bringing more people in and thinking that will change the culture. there are people here who can help change the culture and things mizing for them. we do a lot of things great. we focus bringing new people in and creating a environment they see themselves. some things we are doing that i did not share, we do monthly professional development workshops where we invite external speakers. we held a pride event in the organization so you have a lot of people together in the spirit of community and those are things people start to believe in the culture. they are not just focused on what and how we are doing, but starting to understand why we are doing it

this way and once they understand why we do it this way they are more likely to believe we are invested. the organization made a significant financial commitment to this work and that significant financial commitment needs to resonate. it won't happen over night. we know there are some who want answers yesterday but this is a process and challenging issues we are trying to resolve but we believe we are in the perfect position to make those things happen. >> you iterated what i was going to say. i think it is outstanding to move forward with mentorship program. as you were reading i remember my old navy days where we scr petty officers who help in advancement and our career

and sometimes things of more personal nature just to keep us moving forward and looking at that. i think it is outstanding that you implemented this mentorship program and i agree with you completely. i personally believe that there's a lot of great talent that could be cultivated and harvested from our current staff and just given that opportunity there is a lot of people there and as you said, when that happens, now you have buy in, you have someone dedicated and team members, so i really appreciate it, i really enjoyed the update, and support you hundred percent. thank you. >> thank you. >> i wanted to ask, you said you had some staff here. if we can just see who's here. raise their hand. >> the amazing-michael is a racial equity analyst on the team and

ashley wright. our two amazing interns, alana and zara here as weal. well. >> thank you. >> thank you. we'll open up to public comment. seeing no more comments or questions, open up to public comment. thank you. >> remote callers, raise your hand if you wish to comment on item 5d. do we have members of the public present who wish to provide comment on this item? seeing none, moderator, are there any callers with hands raised? >> commission secretary, there are no callers in the queue. >> thank you. >> okay. public comment is closed. thank you. so, can we read item 6, please? >> that concludes my report. >> sorry, yes.

>> you can go to item 6. >> item 6, the consent calendar. >> commissioner, are there any of the consent items that you have any questions about? there are a whole bunch of them, so are there any that you have any questions on? i have none specific i am going to call out. a through k. commissioners? okay. seeing none, let's go to public comment on the consent calendar. >> remote callers raise your hand if you wish to comment on item 6, consent calendar. any members present who wish to comment? moderator, any callers with hands raised? >> commission secretary, there

are no callers in the queue. >> thank you. >> okay. public comment is closed on the consent calendar. can i with get a motion and second to accept the items on consent calendar, please? >> move to approve the consent calendar. >> second. >> motion and second. roll call, please. [roll call] >> three ayes. >> the item passes. item 7, please. item 7, has been pulled for this particular meeting. let's read item number 8 please. >> item 8, approve the terms and conditions and authorize the general manager to execute a three-year lease, with a two-year option to extend the term, with bayview plaza, llc, as landlord, for the san francisco public

utilities commission wastewater enterprise use of office space located at 3801 3rd street in san francisco at an initial annual base rent of $386,640 with three percent annual increases. >> general man ager, real estate director. we seek approval today of three year lease with two year option for the wastewater enterprise. the new least would allow the collection system division to continue to occupy the existing premises at 3801 third in the bayview plaza complex in san francisco. bayview plaza is close to the southeast treatment plant. the lease term start july 1 and end june 30, 2027. the base rent would be $32.220 per month with 3 percent annual increases. the base rent includes all the utilities janitorial cost, property management cost and property tax for the premises. i like to tell why the puc chose to remain at this facility. first, staff considered the size and location of the current premises and scarcity of comparable office space

near the southeast plant. we searched for available other available office spaces for many weeks. as mentioned, office space in the bayview is extremely limited especially in a 10 thousand square foot range which is the size of this premises. we could find no other space with the same amount of square footage available in one suite and that was close to our facilities. another consideration for the wastewater enterprise to remain bayview plaza is below market rent. we pulled comps and we determined the current rent is below market. it is actually less then the amount the wastewater enterprise is paying. the wastewater enterprise did a cost benefit analysis. it considered the cost of the actual move to a new office building before opting to remain at the current facility. i'm available for any questions if you

have them. >> commissioners, any questions on item 8 for mrs. russell? commissioner rivera. >> yes. thank you so much. just a quick question. just wondering, once the lease expired or once we have the new facility built on muren is this where the staffing will go or are they part of another group? >> the 2000 marin facility will be the water head quarters and from what i understand it is fully committed for the water enterprise. i believe that the wastewater enterprise will stay in this facility while it determines next steps and that joel can speak more, but i believe that is after some of the projects are done and more space is available on our own property.

>> the long-term plan is get folks back all our facilities back to southeast campus. [indiscernible] but that is many years down the road, so we'll most likely be back for another lease. >> thank you for the clarification. >> thank you. any other questions regarding item 9? seeing none, go to public comment. thank you. >> remote callers, raise your hand if you wish to comment on item 8. any members of the public present who wish to comment on this item? seeing none, moderator callers with their hands raised? >> commission secretary, there are no callers in the queue. >> thank you. >> public comment is closed. motion and second to approve item 8, please. >> approve. >> second. >> motion and second. can we have roll call, please?

[roll call] >> 3 ayes. >> item 8 passes. can you read item 9, please? >> item 9, approve the terms and conditions and authorize the general manager to execute a five-year lease, with two 2-year options to extend the term, with lolita lodhia, hersha lodhia miller and sharmila lodhia, as co-trustees of the lodhia living trust dated 11/21/1994, as landlord (landlord), for the san francisco public utilities commission wastewater enterprise (wwe) warehouse and office use of 1900 oakdale avenue, san francisco at an initial annual base rent of $706,722 with no annual increases. this action constitutes the approval action for the project for the purposes of the california environmental quality act (ceqa), pursuant to san francisco administrative code section 31.04(h). the planning department has determined that the project is exempt from the ceqa. the commission will rely on that determination to make its decision on this action. >> real estate director. we seek approval of second wastewater lease. this time for new 5 year lease with two two year extension options at 1900 oakdale. the lease offers the fall oak terms. the premises consist of one building with 27 thousand square feet of warehouse space, 6 thousand

square feet of office space and 13 thousand square foot fenced outdoor yard. the premises located around the corner from southeast treatment plant and across from head quarters. the lease term starts july 1 and end june 30, 2029. the rent for the initial 5 year term would be $58.893.50 per month. there would be no annual rent increases during the initial term. it is flat, no percentage increases. the landlord agreed to 50 percent rent rebate during the first two months of the lease term. the rent includes the cost of property taxes insurance and property management fees. again, the rent is below market based upon the lease comps we pulled for the bay area hunters point and mission potrero submarkets. why do we seek to enter into the lease? the wastewater enterprise has ongoing

need for space because of the ongoing construction at the southeast treatment plant. the new lease allow the wastewater enterprise plumbers laborers, green freckt gardeners and engineer to move into 1900 oakdale with equipment, material and supplies. the wastewater enterprise as joel said, anticipates moving to the back to the southeast treatment plant in a few years. so, why do we recommend entering this particular lease? we investigated other facilities for months and the wastewater enterprise real estate service and 12 other properties. in the bayview industrial it area, the conditions of the buildings can vary wildly and we found that 1900 oakdale is a clean well maintained building and it's practically ready to move in for the wastewater enterprise use, plus unique it has both sufficient office space and warehouse space for

the wastewater enterprise needs. please let me know if you have questions. thank you. >> great. commissioners, any questions on this? i'm going to go off record because i know that we are asking what goes into some of the buildings. down the street is 1725 oakdale, what are the uses that particular facility? >> i don't know, but i can find out for you. >> we'll talk offline. i was going to call you anyway. i was curious. any other questions on 1900 item 9? seeing none, let's go to public comment, please. item 9. thank you. >> remote callers raise your hand if you wish to comment on item 9. do we have members of the public present who wish to comment on this item? seeing none, moderator any callers with hands raised? >> commission secretary, there are no callers in the queue. >> thank you.

>> thank you. public comment is closed. motion and second to approve. >> move to approve. >> second. >> motion and second. roll call, please. [roll call] >> three ayes. >> okay. item passes. can we read item 10, please? >> item 10, award contract no. ww-720, as-needed main sewer replacement no. 10, to the responsible bidder that submitted the lowest responsive bid, mitchell engineering, in the amount of $16,028,745, with a duration of 730 consecutive calendar days (two years), to perform as-needed manhole-to-manhole segment main sewer replacement on short notice throughout the city and county of san francisco. is >> good afternoon commissioners. my name is amy, project manager for wastewater collection project. here to seek approval to award

contract ww720 as needed main sewer replacement 10. this contract is established to allow the wastewater enterprise staff ability to issue contract service orders on existing aging sewer pipelines in need of replacement on short notice. as noted, there were three bids received. all above the engineer estimate. staff analyzed the bids closely and possible reason for higher bids include risk not knowing where the location will be, when the work will be requested, and the primes who typically perform open trej excavation need to coordinate and schedule work with subcontractors for the trenchless or rehab work scope. we reached project close out on one of the contracts approved earlier this afternoon on consent calendar and we have one active main sewer replacement contract in construction reaching the end of contract term before the end of the calendar year.

staff recommends awarding contract ww720 to the responsible bidder with lower responsible bid mitchell engineering in amount of 16 million, 28 thousand 740. happy to answer questions. >> thank you. any questions commissioners about this contract? seeing none, let's go to public comment on item 10. >> remote callers, raise your hand if you wish to comment on item 10. any callers present who wish to provide comment on this item? moderator, any callers with hands raised? >> commission secretary, there are no callers in the queue. >> thank you. >> public comment is closed on item 10. can i get a motion and second to approve item 10? >> move to approve. >> second. >> motion and second. can we have a roll call , please? [roll call]

>> you have three ayes. >> can we read item 11? >> item 11, award contract no. ww-743, geary boulevard sewer and water improvements phase 2, to the responsible bidder that submitted the lowest responsive bid, cratus, inc., in the amount of $45,957,035, and with a duration of 1,034 consecutive calendar days, to replace, rehabilitate and relocate existing aging sewer and water facilities and install traffic control conduits on geary boulevard between 32nd avenue and stanyan street. approval of the sewer and water components of the project constitutes the approval action for the purposes of the california environmental quality act (ceqa), pursuant to san francisco administrative code section 31.04(h). the planning department has determined that the project is exempt from the ceqa. >> good afternoon commissioners. derek adams, project manager are for the geary boulevard sewer water improvement phase 2 project. here today seeking approval to award contract ww-743 to relocate rehab and replace sewer and water facilities aging on geary boulevard between 32 avenue and stanyan street.

we received 6 bids for this project. the low bid was below the engineer estimate and we have a specified contract duration of 1034 consecutive calendar days and happy to answer questions at this time. >> big project. commissioner stacy. >> thank you. i just wanted to clarify, the surface improvements that you mentioned between stanyan and 32 avenue, is that instillation of the geary brt? >> yeah. it is coordinated with geary brt project and also resurfacing the entire roadway. separate project. >> good to know there is coordination. >> there is a lot of coordination, but

it is dpw contract and it will be seemless to the public. >> great. thank you. >> good question. that's what we want to hear. no more van ness's. anymore questions? okay. thank you for that report. big contract. let's open item 11 to public comment. >> remote callers, raise your hand if you wish to comment on item number 11. do we have members of the public present who wish to comment on this item? seeing none, moderator, any callers with hands raised? >> there are no callers in the queue. >> thank you. >> public comment is closed on item 11. motion and second to approve item 11, please? >> move to approve. >> second. >> motion and second to approve item 11. roll call, please.

[roll call] >> you have 3 ayes. >> item 11 passes. can you read item 12, please? >> item 12, approve amendment no. 2 to contract no. pro.0164, engineering services for the lower alemany area stormwater improvement project with mcmillen jacobs associates (dba delve underground), increasing the contract amount by $8,300,000, for a total not-to-exceed contract amount of $17,800,000, and extending the contract duration by three years, for a total contract duration of nine years, due to additional engineering support needed to perform analyses and refine the design for the project's caltrans encroachment permit, and to provide engineering support during construction, subject to board of supervisors approval under charter section 9.118. >> good afternoon president paulson and commissioner stacy, commissioner rivera. casey chen, project engineer for lower storm water emprovement project to request approval to contract amendment 2 engineer service and hope to

give project update. the lower alemany project is a resiliency projbect to manage storm water located near farmers market and 101/280 interchange that coincide with the historic creek and that area does have history of flooding during a large storm, so the project will increase conveyance capacity in that area to mitigate flooding during the established level of services storm, which is 5 year 3 hour storm. to do that the project design and build 1.2 mile tunnel along with box sewer and with that increase capacity that will prevent flooding during the storm. so, however the long tunnel

alignment does cross 6 cal tran right of way at 6 different locations and of the 6, there is 3 of them crossing underneath freeway overpass and two of them will be used heavily for construction staging launching of the tunneling machine and also a by-pass road for construction service to maintain construction at one of the shaft locations. so, therefore the project before designed we have to go to caltrans and apply for encroachment permits. as part of the permit requirement, we have to assess if there is impact to the cal tran infrastructure the freeway over pass so have to perform 3d bridge structure modeling, foundation modeling, calculation sizer hazard analysis and soil structure and

ground study analysis. technical analysis to support the permit process. so, that is going to take up about $5 million of $8.3 million requesting and the remaining of it would be used for engineering support for construction. with that, thank you for listening and happy to answer any questions. >> thanks for that report. i know i think we all know this is major choke point that we have been working on quite some time, so this is another update what we are moving on, so important stuff. i'll just say, i have no questions per se, so commissioner stacy. >> thank you and i know you've been here before to talk about this project. it is really hard to see this much of a

increase in the contract amount. it is more then doubled since we started and you have been here once before, went from $7.3 million to 9.5 and now up to $17.8 million for this contract. i know you also talked about this before and the city had issues with caltrans before that there has been incomplete information about where the caltrans facilities are, but i also wondering if that's the issue here. i also know there has been a history of caltrans sort of being difficult to negotiate with and to figure what will be needed for the encroachment permits, but if you wouldn't mind expanding on that a bit. it is hard to see this high a percentage increase in the contract. >> sure. absolutely. just to clarify, we dont have

any conflict with any of the caltrans facility. i believe that's with a different tunnel project. to answer your question, to break it down more, so, our tunnel crosses three different bridge locations and that does require extensive modeling of the entire bridge structure from the top of the bridge to the foundation and show if there is any impact with our construction to their facility and if there is, what mitigation have to perform and approve all that to caltrans, so all the analysis, it is all most like we are doing another project just to meet all these requirements, and so that's one elements which will take a good amount of budget and there is other design as a result of detail design, like a need

of the by-pass road around the site to allow for continued traffic not impact traffic and in the community and that road is often elevated road and complex design as well, so all that adds up to quite a bit. >> can i ask you, what about this was sort of unforeseen at the time the contract was originally entered into? was it the extent of what was needed to avoid the caltrans facilities or work with the caltrans facilities? i'm trying to dial down a little bit on why the contract amount has gone up so much since we awarded the contract? >> when we award the contract, we didn't foresee all this coming. at that time we were at

planning stageo had general alignment and generally know what we are doing and in terms of scope, however, as the engineering design progressed and we worked more with caltrans, all the external agencies, these detailed requirements start spawning and also with greater detail there is the need for--we start doing review to make sure what we design is constructable and this is such a large scale project and dense community, so that requirement for the shoe fly and all these other requirements spawned unfortunately. >> sorry, what was the requirement for the shoe fly? >> for the shoe fly, is a temporary by-pass road around one of the launching and connection structures for the large sewer located on alemany and that is a street we can't

temporary close for construction, so to maintain that we have do a shoe fly around alemany and that is by-pass road and that road is elevated and encroaches into caltrans right of way back on alemany, so that's additional scope we didn't foresee during planning. >> it sounds like a fairly iterative process with cal trans? >> yes, and we continue to work with them until it is resolved. >> thank you. >> yes. >> commissioner rivera. >> mr. chen, i had a more engineering question. so, the 1.2 mile tunnel, is that a over-flow holding area for flooding or more of a increasing the diameter for drainage? >> great question commissioner rivera. the new auxiliary tunnel is primary for storm water so the existing box sewer

that passes that area, unfortunately cannot handle large storm flew, so we build a auxiliary sewer primarily for storm water and increase capacity. >> thank you. >> you're welcome. >> i wasn't going to ask a question, but because they are having questions i'll add on. i know in folsom, wawona, alemany there are folks where urban planning from 3 million years ago and now dealing with all the population and building on top of all this stuff and it is ongoing and this particular amendment details we are still learning about what the hell it means to build over creeks and natural resources, so here's my long way of asking a question i wasn't going to ask, are we expecting to see you back again, because there is something else that really has got to be

mitigated and i know it is urgent and have to work ton and get going because everybody knows things flood and things happen. are we going to be seeing you or somebody again, because there is something else in the range of millions of dollars that are still in design, so to speak or in discovery? >> we are at 95 percent design, so at the final stage where the main thing is to get caltrans encroachment permits and environmental clearance. i do not hope to come back again for more money. next time i come back i hope to award this contract for construction. >> got it. okay. thank you for that answer. >> thank you. >> anymore questions commissioners? okay. thank you for that report. we will open up to public comment now item 12. >> remote callers, raise your hand if you wish to comment on item 12.

any members of the publicprint print present who wish to comment? >> seeing none, any callers with hands raised? >> no callers in the queue. >> thank you. >> public comment is closed on item 12. motion and second to approve >> move to approve. >> second. >> motion and 2nd. roll call, please. [roll call] >> you have three ayes. >> item 12 passes. can you read item 13, please? >> item 13, public hearing to approve a commercial equipment rebate program and adopt rules and regulations to allow san francisco public utilities commission to issue two types of water saving commercial equipment rebates to promote water energy conservation in the retail service area. >> good afternoon.

general manager and staff. water conversation manager. the puc water conversation section is seeking approval today to update our commercial equipment rebate program effective july 1, 2024 to encourage more businesses to par ticipate. with droits and state conservation requirement, water utilities across california are increasingly looking at way s to seek commercial sector water savings. this rebate program is one of the ways the puc helps the commercial customers save water. we offered several forms of commercial equipment incentive for over 10 years to help ease the financial cost of businesses of undertaking large and small water saving equipment project. the proposed commercial rebate program provides rebates off the purchase cost to replace or upgrade indoor commercial grade equipment that uses high

volumes of water for cleaning, washing, cooking, cooling, sterilizing and other commercial industrial water uses processes. these are found in restaurants, food establishment super mact hotel, medical and research facility, some office high-rises and caempts that manufacturing things. so, under this rebate program eligible projects must save 75 thousand gallons a year to qualify and are there are two types of rebates we are issuing. one is metered water savings equipment rebates for sites specific projects that can verify water saves through metering and we provide a higher rebate amount. the second type is, estimated water savings equipment rebate and those would be for standard specific types of equipment with predictable savings.

they would not require to be metered and the rebate amount would be lower. so, we are proposing these updates to more closely align with elements of major commercial incentive programs offered by some of the other large water utilities in california, and they also reflect recommendations we receive from the pacific institute recent evaluation of our water programs. key changes are increase water savings rebate from amount up to $7 for every 748 gallons of water saved over 10 year period, and up to hundred percent of the equipment cost and maximum project cap of $750 thousand. also looking to allow the estimated water savings equipment rebate to include other type of equipment so if a business has a idea for something we haven't think about or not

specified they can come to us as long as they provide sufficient water savings. we are looking lowering the minimum annual water savings from before 150 thousand a year to 750 thousand gallons a year. so, just to give a example and it noted in the staff report, past rebates covered a wide range of equipment from steam sterilizer at medical facility to dish washer and ice machine, major lynneen, industrial cleaning process, dental equipment at the dental company and refrigeration replacement at hospital. again, this program is intended to help commercial property save water replacing large specialized equipment and by the nature, these replacements generally take planning, lead time and

resources by the businesses and they are not necessarily instantaneous or routine things that might upgrade. i note this because it makes the population of the potential qualifying projects more limited then some of the other conversation programs i come before you to talk about, such as incentive programs to replace washers or toilets. the potential savings for each individual project replaced through this is very big. the total estimated water savings for 9 project is 243 million gallons so for perspective, this roughly reflects the amount of savings from replacing toilets in 600 homes. with the commissioner approval today we will outreach to businesses through various means. we have a press release teed to go out to major media outlets and trade groups like the hotel council, golden

gate restaurant association,boma and others. offering to present at those. have a article in the current and doing direct outreach directly to top and large water using businesses. so, this concludes my remarks and would be happy to answer any questions. >> thank you for that report. you are feeling confident about it with everything teed up. i think we like-i have no questions. commissioner stacy. >> i don't actually have questions either. i just wanted to endorse the program and happy to see that we are always in search of ways to conserve water and support commercial residential and other users to do so as well, and that i am pleased that we are implementing some of the pacific institute

recommendations and sounds like maybe we have seen other water districts implementing similar programs. so, thank you. >> thank you. >> great. so, again thank you for being innovative and looking out for these ways of saving. no other questions, thank you for that report. let's go to general public comment, please. >> remote callers, raise your hand if you wish to comment on item 13. any members of the public present who wish to provide comment on this item? seeing none, moderator, any callers with hands raised? >> commission secretary, there are no callers in the queue. >> thank you. >> okay. so, public comment is now closed. can i get a motion and second to approve item 13, please? >> move to approve. >> second. motion and second. roll call, please.

[roll call] >> you have three aye. >> thank you. get the press releases going. so, item-can you read item 14 together? >> item 14, approve three credit facility agreement frz the wastewater enterprise interim funding program and, principal total amount of $275 million and agenda item 15, approve two credit facility agreements for the water interim funding program in the principal amount of $200 million total. >> good afternoon commissioners. capital finance director. pleasure to be with you again today. we have three closely connected agenda items here. the first two present here together and have a opportunity to vote on those. be back with the other piece of

it. and, i want to say with all three of these, each of these takes a village, including a large external team of financial participants, as well as our internal staff. i want to particularly thank the city attorney's office, a number of city attorneys are involved in each of these, as well as the capital finance team who are back in the office making sure these transactions will be able to close if they are approved today. if i can call up the slides. the first piece of this is the interim funding program. as you recall, the interim funding program consist of commercial paper and revolving credit facilities. these are integral to how we borrow and ultimately take these out with bonds. these credit facilities are

short-term facilities, typically anywhere from 1 to 5 years, but most often in the 3 year range so we periodly come before you to renew those and try to do it in groups, so we do request for prose proposal and several at a time. today we will renew facilities for both the wastewater and water enterprise and that's what we are here before you today about. so, our interim financing program, allows us to approve contracts for construction. without having to issue bonds in advance. in other words, in order to avoid incurring interest cost on large bond transactions, we can first approve the transactions based on the interim funding program and then we

borrow commercial paper as we need the cash and then once we have exhausted that, we can take that out with a bond transaction and that's one ways we lower cost. normally the commercial paper is low cost form of financing. a little higher now because short-term rates are higher as we talked about in the past due to the feds actions. all this is a product of an rfp process conducted by our financial advisor. that was conducted in april. we had 9 banks respond for these particular facilities, and selected those. so, as you can see on this chart, there are three highlighted facilities, two are facilities that are going to expire in july and that's what we are trying to renew here.

we highlighted the first facility, which you see expires in 27, because we will amend that as part of the solution we will show you in a second. so, if you look on this, we did the bidding, the replacement for u.s. bank will be u.s. bank. slight increase in the fees and i think you'll see generally loc and credit facility fees are slightly up. but we will stay with that facility with that amendment. we have a larger facility for state street that actually expired last october. we renewed it for a year, and now intending to have a more permanent replacement. so, we are proposing to replace

it with a combination of td bank and bank of america, and because td bank already has a $75 million facility, but we are simply doing is amending that existing facility to increase it to 150 to make it simpler and reduce the cost of this process. and then, we will reduce the [indiscernible] from 200 down to $125 million with bank of america. that is the wastewater piece of it. now for the-that's what makes that a letal confusing with the number of banks. the water is much simpler. again, we did the rfp process. we have barclay bank and u.s. bank, both for a hundred million dollars expiring on july 19, and the

replacement facility for each of those will be the same bank. again, with slight increase in cost for both those facilities. so, we do solicit broadly for banks. obviously we have a large program already, so some banks offered us higher costs, some banks are already full up on how much they will provide us. with that, we like to ask for approval of first, the wastewater facilities that we described just now. and that will include the offering memorandum, which is the document that is used to market these facilities to investors. remember, these are marketed based not on our credit but the credit of

the respective banks. and secondly, we'll do the same thing for the water series as well. and with that, happy to answer questions. >> thank you for that update on what we need to do in order to keep this credit moving and keeping us viable. wrong word, keeping us agile is the word i was looking for. so, commissioner stacy, you have a question? >> thank you. i did have a question, but you answered it, and i appreciate it. when i was going through the agenda item, i wasn't sure about the td bank liquidity facility, why we were replacing that, but i understand that now. we are otherwise replacing each of these interim funding programs

with all most identical programs. fees have gone up a little bit, but expiration dates upon us, it seems pretty straight forward as to why we are moving forward and thank you for the clear explanation. >> commissioners, we'll have a steady pace of these in the future as well based on that three year rolling. >> imagine. we understand. any other questions before we take action? thank you for the update and the work that the village keeps doing. as you said. okay. so, we will take these in separate order. let's-we can do public comment on both? public comment on 14 and 15. >> remote callers, raise your hand if you wish to comment on 14 and 15.

do we have members of the public present who wish to comment on these items? seeing none, moderator, any callers with hands raised? >> commission secretary, there are no callers in the queue. >> thank you. >> public comment is closed on item 14 and 15. let's take one at a time. motion and second to approve the agreements on 14? >> move to approve. >> second. >> motion and second. can we have a roll call, please? [roll call] >> you have three ayes. >> 14 is aprived. can we have a motion and second to approve item 15? >> move to approve item 15. >> second. >> motion and second. can we roll call, please? [roll call] >> you have three ayes. >> item 15 passes. can we read item 16 please?

>> item 16, authorize the issuance of up to $480 million of taxable 2024 series a bonds for new money the issuance up to $125 million of taxable 2024 series b bonds to refinance prior expenditures and to fund new money, and the issuance of up to $700 million of tax-exempt 2024 series c bonds and 2024 series d bonds for new money and to retire tax exempt commercial paper. >> thank you very much. if i can have the slides, please. you received a very informative presentation earlier in this meeting about the wastewater program and the construction progress underway. as a result that construction progress, we are before you today with

another bond transaction to pay for that construction, which as i think besy described was reaching its peak at the southeast plant. this is a financing part of your capital financing plan presentation last september. hope fully not me creating static. and we'll describe a little bit about our strategy and the financing we got before you. this transaction includes four series, series a, b and c. we'll describe why we have those different series, but the authorization will be for up to $1.305 billion of financing for the wastewater facility. this is the last core item of our financing plan for the fiscal

year, and based on the spending we don't need to close it until next month, the first month of the year. on the next slide you see where we stand today with the wastewater system. we have $2.37 billion of revenue bonds outstanding. we also have taken advantage of low cost financing as well as state revolving fund loans, and we have additional capacity under each of those. in february, you approved 10 year plan, which included a forecast of $1.1 billion of revenue bonds for the wastewater system, as well as a 10 year plan for that system of $6.2 billion. so, let me describe where we

stand today with the usual caveat i make that, the slides we need to present for agenda deadlines are number weeks old. interest rates do fluctuate, but the shape of the yield curve remains the same, and as we said for the past year now, we are in a very unusual market situation where short-term rates rose very quickly, and so short-term rates are actually a little higher then longer term rates and so that effects some of our strategy here as well. but, this chart at the bottom shows you the range of rates over the last 30 years. rates in red line where the highest green line, the lowest and the dark line is where we are today.

this next chart shows you very vividly what has transpired here that is created these unusual conditions. if you look back at the first quarter of 2022, you can see we were in a normal situation where the shortest rates were lower then long-term 30 year treasury rates. but then the short-term rates rose very quickly and actually passed the long-term rates and that's what created this inverted yield curve. this is a forecast prepared by one of the investment banks that covers us, wells fargo and shows their projection each of the banks provides us various forecasts about the market. i think the point is, as you

probably have been listening to on the news, there is a general expectation the fed will lower rates. those expectations have been differed repeatedly, and currently our financing team is expecting at least one rate cut by the end of this year and then the expectations are further cuts in the new year and subsequent year. so, this all has influenced how we approached this transaction. the core part of our transaction before you today is to facilitate keeping all that construction besy described earlier continuing. but we have some specific components that we have broken out into separate series and structured slightly differently. series a is specifically for

the biosolids digester facility project. as you may know, in march the u.s. treasury released final regulations for tax credits. we have a full team working with us to actively pursue tax credits across our enterprises from everything from electric vehicles to solar projects, and the biosolids potentially will be a candidate as well for tax credits in the future. in order to maintain as much flexibility for that as possible, we are proposing to structure series a as a taxable financing, but a very short-term taxable financing that allow us to come back to you in 2026 and 2027

with further refinancing that, but that allows us to continue the project now, but allow us not to lock in rates. under the ira, tax exempt bonds potentially cause a discounting of the tax credit. so this will maximize flexibility and also maximize flexibility for the final disposition that project. those will be green bonds because that is a ssip project. series b is another taxable piece. again, these are bonds that amortize very quickly for the southeast community center. as you undoubtedly know if you have been to the southeast community center is a wonderful success story in terms

of the mitigation project that benefits that community. as that project has opened and been utilized, there are newer uses for that facility being proposed. in order for us to provide maximum flexibility for that facility, we are proposing refinancing the portions that that have already been financed and financing the remaining portions with taxable bonds that will allow us not to create restrictions on how outside parties use that facility. that brings us to series c and d, the core of this financing, which is to take out commercial paper for the wastewater program, and fund remaining construction costs for fiscal

year 25. series c is simply the green bonds eligible portion that is the ssip that was pre-qualified in 2018, bs and the remainder is in series d. so, those are the four series of bonds and those roll up--excuse me--those roll up into this cost. the total cost based on interest rates as of the time of this was run on may 29, 24 for the agenda deadline is approximately $1.1 billion and would then we begin with a new slate on commercial paper and continue funding costs beyond that with commercial paper.

so, this is simply a scorecard for you that complexity. again, four series of bonds, 2 for ssip projects and therefore green bonds, two of them are taxable, two are tax exempt, and a total authorization of $1.305 billion. authorization is excess of where we expect it to be because as interest rates move, that will effect the size of the bonds and we certainly can't reassemble the commission when we are pricing the bonds in july. so, we have a full team that will bring these to market on july 17 and 18. first team for the taxable series is lead by b of a security. the second team lead by morgan

stanley, each switching off and then we have four comanagers, including jp morgan, jeffries, ramirez and william shank. each was selected through a rfp process, beginning with ferms in the city approved underwriting pool. this again is a dated estimate that required by state law. let me just give you the further update as of this morning. so, our financial advisors ran new numbers today chblt the overall cost for four series of bonds is 4.3 percent interest rate. again, that first series of bonds would be expected to be refinanced in 2026, 27 and we will have the choice then to decide whether to convert it to

tax exempt financing, or keep it in taxable financing based on what optimizes tax credits when we get there. key part of is we have two series of bonds that are green bonds. they are cbi certified. we presented you with a certificate here today and remain very committed to our green bond program that we have spoken to you about in the past and with that, just highlight the documents that you would approve today, which include the preliminary official statement, the document that is transmitted to investors, the continuing disclosure certificate,check is a appendix to that. we got two supplemental with short-term and long-term financing. purchase contracts where each

of those senior managers and the escrow agreement. one thing i like to highlight at the end here is that, we have standing by for our ratings from both moodies and s&p and scheduled to go to their credit committees on the 26 and 28 and of course once we receive that information we will pass that on to you as well. with that, happy to take any questions. >> [unable to hear speaker. microphone not on]

what might not change if there was another admenstruation. adminivation. the volterity of tax code and monetary policy. if you can tell us what people are looking at? >> very quickly, the inflation reduction act that was passed is perhaps poorly named in that, it really has much more to do about the energy transition. as a entity involved in that energy transition and producing clean energy, we have a number of opportunities to potentially benefit under that legislation and take advantage of tax credits. >> this is nothing, you are look at the previous legislation. this isn't something new that

came up? >> yes, the--it is part of the ira, but the u.s. treasury just issued the final regulations in march and in order to maintain as much flexibility around the biosolids digester project, we are proposing to do a taxable short-term financing so we can come back in 26 and 27 with a final structure, but allow that project to continue on. >> okay. but, just again, the more poignant part of the question, give me a couple examples of things that might-you didn't know about that this technology of the bio digesters could get us some savings on the next time we finance. >> i was just at a conference where several people described the

inflation reduction act and tax credits is a bit like building the wings on a airplane while flying in the air. the irs is continuing to issue faq's that came out just a couple days ago, so it is a very complex area, and that's why we want to maintain as much flexibility around being able to finalize that project. that project won't be ready too file for those tax credits for quite some time, so we want to wait and be ready for that. >> [indiscernible] science. okay. i'll let it go with that. commissioner stacy. >> thank you for the report. just a couple comments and few questions.

one, i just want to endorse again the pursuit and use of green bonds as much as we can, and secondly, i appreciate the focus on the rate pressure and looking hard at grants and srf loans as much as possible. i have a couple of basic questions. when you say that we are issuing taxable bonds to allow flexibility of use, could you articulate a few differences between what is permissible use for a taxable bond, versus a tax exempt or non taxable bond? >> commissioner, most of our facilities are very clear in terms of who is using the facilities. we are using the facility and it is for public purpose. the southeast community center

is quite unique in the way it is used, and it has been embraced by the community. there is a diverse number of uses there. but each time a private entity becomes involved as in those uses, that can raise questions about a tax use. we could create lots of constraints on how parties use that facility, and how the participants write those contracts, but in discussions with the city attorney office, we propose that we simply refinance that with taxable bonds, mitigate the impact that by accelerating how we amortize that debt, and thereby, give the community as much flexibility in the use that

facility. >> i see, just to be careful not to run afoul of those distinctions? >> yes. >> and i assume that a tax exempt bond is a maybe-don't know if this right terminology, a less expensive form of financing, is that right? >> it is worth explaining the difference between a taxable and tax exempt bond is that the investor is paying or not paying taxes on the interest and when they don't have to pay taxes, they are willing to accept a lower interest rate and so, we normally try to maximize the amount of tax exempt debt we use, but we also want to be careful not to run afoul of the irs. >> right. and there was a statement in the report, it was about the series a bonds

that they would be used to fund capitalized interest to mitigate short-term budget impacts. could you explain how that mitigates short-term budget impacts? i didn't quite follow that. >> this has been the puc practice since well before i came here. in order to-because budgets are already set, when we issue bonds, we begin paying interest immediately. we could create a very artificially high rate in our budget and then fit within that, but that would cause us to raise rates higher then necessary, so instead what the p uc has done and do across all the new money transactions, is we capitalatize interest for

that budget cycle, the two year budget cycle, we borrow the funds that pay investors interest from the transaction so it isn't coming out of the budget. >> got it. thank you. and my last question i think, one of the maybe crazy is what i was going to say, but one question that occurred to me when i was reading about the series a bonds, because of the uncertainty whether or not their use would be taxable or tax exempt, would it be possible to wait on approving or issuing those bonds? it sounds like the work is ongoing and that bond money is needed right now, but i just as i was reading the report and listening to you, i wondered whether it was worth holding off on that $480 million until we knew

better whether it could be tax exempt or if it was taxable? >> commissioner, good question. the issue is that, because that spending is ongoing and we've incurred commercial paper and have these costs in this year, we need to make sure they are funded or else we would be pausing that construction project. >> that's what i thought. >> and, what we have come up with a flexible financing arrangement that allows us to keep the project funded and going, and then make the final decision about the long-term financing structure later when we can optimize the results. >> and i think you said that would be in maybe a few years, 25-26, maybe? >> i might add that it is always been in the back of minds that, we

are not borrowing now because we decided this is the best time to borrow. we need to over the course of this 10 year plan keep construction going, but we are mindful that the fed has signaled it will be lowering rates in the future. we have that opportunity to lock these bonds in in 2026, 2027 as well based on that. no, we wouldn't want to expose for the entire transaction, but we have that to also mitigate impact. >> got it. thank you. i think that's it. >> any other question commissioners?

>> any members of the public who wish to comment on this item? seeing none, moderator, any call rz with hands raised? >> there are no callers in the queue. >> thank you. >> public comment is now closed. on item 16, can we have a motion and second to approve issuance of this series of bonds discussed and reported on? motion and second? >> move to authorize issuance of the bonds. >> second. >> motion and second for item 16. roll call, please. [roll call] >> you have three ayes. >> item 16 has now been authorized. thank you. okay. can we read item 17, please? >> item 17, authorize the general manager to seek board of supervisors approval for payment from the

general fund to three different customers. >> good afternoon president paulson and commissioners. nancy hom, chief financial officer for business services. this item is to request approval to authorize general manager to seek board of supervisors approval for remittance of paement from the general fund to the cusmer oliver desilva in 101.825 and customer sunol agpark for $340 and alameda county for $651.976. this is to revolve application and transmission of utility user taxes paid. a little background, in june 2018, pg&e transfers the electric service account at the sunol quaury to power

enterprise and informed the power enterprise the puc had been charging the san francisco utility user tax rate of 7 and a half percent instead of alameda county rate, 6 and a half percent. asked for refund of 1 percent it overpaid and when staff looked into this overpayment, it determined in addition to charging the wrong rate, they had remitted the taxes to san francisco tax collector. a similar problem discovered for the customers sunol agpark who has a government agency should have been exempted from these user tax charges. total amount collected and remitted to the san francisco collector is 754.167. $101.825 over paid and $651.976.

[indiscernible] all should have been refunded rchlt alameda county of the oversight and continues to work with county to reach settlement. we like to resolve the matter promptly by remitting the refunds back and to issue submit the funds back to alameda county through the general fund. thank you and glad to answer questions you may have. >> thank you for this interesting piece. so, you said we are working to resolve this. does this resolve this? is there something still going on between the two counties? >> there are still conversations with alameda county. i don't have additional information on that piece.

>> [indiscernible] >> are we approving something not fully resolved? i guess i don't understand. >> this is to request our general manager request the board of supervisors to refund first the two customer oliver desilver and sunol agpark and after the two county completed the conversation remit the remaining user tax that belongs to alameda county back to them. >> that is in the general funds now and have to as part of the budget? >> as our responsibility we have- >> i trust this is right. >> we sent the funds to basically san francisco treasurer tax collector so sits in general fund and in order to refund the customer, and remit those funds to alameda county it has to leave the general fund through the board of supervisors approval, but we must request of them first.

>> got it. >> this is the first step. >> i trust this is moving the way it is supposed to move. commissioner stacy. >> thank you for the report. i suppose it is possible that the amount paid to alameda county could change a little bit if negotiations are still ongoing. this amount of $651.976-sorry. i can't tell if that is a period of comma. $651.976 is the amount that should have been remitted? >> yes, that's the amount. it is possible those amounts may change due to possible interest or penalty, but those are in conversation

at this time. >> okay. so, even though we approve it with this amount, there's the ability to remit it? maybe a slightly different amount to alameda county, that right? >> i believe so, yes. >> this is a business? tax bill--3 quarters million dollars. what are we talking about here? >> oliver desilva is one of our lease holders. they are a query in sunol out there. eme i'm not familiar with sunol ag park, but they are a smaller organization and government entity. we normally do not have commercial customers outside san francisco.

this is a very exception and so this should not happen again. it was unintended oversight. >> and this is timely or is this just process? >> this is process considering we have been contacted by the customer. we just want to resolve it quickly. >> any other questions? council, are we on-this is on the agenda because-- - >> this is recommended approach. >> this is recommended approach. >> this is the right process. we shouldn't have collected the money. >> got it. okay. i think i understand. any other questions? seeing none, thank you for this interesting report. let's put this into for public comment. item 17, for public comment. >> remote callers, raise your hand if you wish to comment on item 17.

do we have members of the public present who wish to comment on this item? seeing none, moderator, any callers with hands raised? >> commission secretary, no callers in the queue. >> thank you. >> okay, public comment is closed. can we have a motion or second to authorize the general manager to go to the board of supervisors with this item? >> move to authorize. >> second. >> motion and second. can we have roll call, please? [roll call] >> you have three ayes. >> item 17 passes. can we read item 18, please? >> item 18, public hearing to consider adopting rez ligez which grants general manager the discretion to delay the implementation of the discount consolidation for hetch hetchy power customers on rate schedules a-1up, and

a10-us from july 1, 2024, to january 2025. >> hello. may i have the slides, please? good afternoon commissioners. matthew friburg, the rates manager with pu rks cr. c. may 14 financial planning director were here and presented to you the proposed fiscal 24-25 rates. the resolution before you today is a recommendation to slightly modify implementation of the bill discount program transition for a small subset of our customers. proposal is a bit nuanced and narrow in scope, so the bulk of the slides are focused on providing background to the issue staff are trying to mitigate. in summary, there is 21 accounts that are managed by non profit organizations that manage low income housing

facilities that will have a larger then anticipated bill impact following the implementation of the rates on july 1. our proposal is aiming to soften the impact to these 21 individual customers. i start with overview of the bill discount program offered by hetch hetchy power. we have two different discount programs. we have one for enterprise customers that receive time of use rates. these were initiated in fiscal year 19-20 and these are implemented and fallowed pg&e e care. they apply to nrts prize customers on time of use rates. the eligibility with limited to enterprise customers that serve unoccupied residential units and common areas in applicable residential facilities. the eligibility requirement as far as income that each of these

residents can have is defined by pg&e, and the dist count structure itself was a fixed dollar per kwh discount on the energy charges. you may recall time of use rates have a 3 elements. we have customer charge, energy charge and deman charjs so this applies to energy usage portion of the bill. in 22, hetch hetchy power implemented a retail discount program. the eligibility requirement were very similar, but the income thresholds were defined by cpuc low income guidelines instead of following pg&e lead. the key distinction is retail customers get a 30 percent discount on total bills so all 3 components of the bill opposed to just a fixed amount on the energy charge.

also starting in fiscal year 22, the commission transition away from following pg&e with the rates. instead moved towards cost service base for each of our rates. something we are really proud of. it is enabling us to set rates based on our own costs and provide greater equity in the rates. as part of the transition, the different elements of our rates did change over time. so, we are seeing on this slide right here is a example from the a10 u.s. rate, the enterprise medium commercial for time of use, one of the two rate codes that are impacted by there proposal. each have a similar structure, just different dollar amounts. so, what we see on this table is the rates from fiscal year 22 to 24 showing each of the different rate elements. the last column is the rate

change between fiscal year 22 and 24 and shows the change in each of the rate elements. you see over the time period the customer charge increased by all most 24 percent. -42 percent. demand increased by 12 percent, but the energy charge decreased over the period of time and again this is to do with the cost of providing service and moving away from pg&e cost structure and how our own unit costs are calculated. you can see the decreases were pretty significant. went from anywhere from 15 percent to all most 25 percent decrease over that period of time. before i switch to the next slide, i want you to really take in the rate changes on the energy side, because the next slide is going to show the impact of applying the discounts. you see the text is smaller.

but you can see that when we apply the dist counts to the rate code, over time the energy charges decrease, but the fixed discounts amount remain the same over that period of time. cons quently, the level of discount proportioninate to overall bill increased over time. the retail customers they receive discounts, 30 percent discount year over year. the discounts for these customers increased greater then that and each individual customer because it is only focused on the energy charge depending how they use power the des count is higher or lower but a significant discount that went into effect over the two year cost of service transition. the may 14 commission meeting, our approved rates include our 12 percent increase to the baseline rate

for everybody and we also proposed migrating these enterprise customers time of use rates to move over to the retail discount so all the customers receive the same discount. however, when we did further bill impact analysis after the approval of the rates, we noticed that the impact was significantly higher then anticipated for these customers. the range of impact ended up being about 26 and a half percent to all middle most 50 percent that translation to 8 thousand dollar to 27 thousand a year for these customers. this is my final slide here. staff recommendation is we preserve the 12 percent increase because that applies to more then just the customer s receiving the discounts. we have couple other customers that

don't receive discounts. we propose to maintain the existing discount program for the next 6 months. the idea here is that we can implement the discount the retail discount program in january. it gives them a little longer to adjust the budgets to the higher bills that will come into effect and save money in the near term. we anticipate it is about 10 percent savingsism the cost to puc is $88 thousand in lost revenues and applied the last revenue to the financial model and noted that this doesn't have significant impact on the financial position or any key performance indicators or debt service obligations. so, that's the general recommendation and with that, ready to take questions you may have. >> we have any questions?

start with commissioner stacy. >> thank you. i'm glad that you figured this out before implementing the changes in the program. i am wondering how did you figure out that these changes would be so significant? what was it really matter of drilling down and looking at it numbers more closely? >> yeah. so, a lot of the tools we are using for looking the bill impact calculators were produced in the rate study from fiscal year 22, and the consultant wasn't able to prepare bill calculators for every rate code, we have 80 different rate codes so a big chunk of work, so when we did the bill impact analysis we had the rate codes with highest volume of customers.

but it is the great work from the power enterprise staff that continued to take a peak under the hood and make sure there were not any unexpected surprises on july 1. shortly i think may 15, [indiscernible] figure this out and come up with a solution and this is the best solution we have come up. >> i think it is important not to have that much increase that suddenly to give people a chance to kind of give users customers a chance to sort of ramp up to the changes, so i think it is a important thing to do. >> how many people-this is 21 accounts? >> 21 accounts. held by a small handful of non profit organizations that manage the low income housing facilities. so, i think it is order of 6 different non profit organizations.

>> so, this was found out by looking at modeling or is this because people- >> this is looking at the individual accounts. each of these accounts have different discounts based on the way they use these energy occupancy of the buildings. the number of factors that go into the accounts. >> are these accounts aware this is what will happen or preempting this by delaying for 6 months? >> i have to speak with our coms team. >> got it. i was getting ready to ask that question, but i'm--okay. i are think i understand. thank you. any other questions? okay, lets open up to public comment. thank you. >> remote callers, raise your hand if you wish to comment on item 18. do we have any members of the public present who wish to provide comment on this item? seeing none, moderator, any

callers with hands raised? had >> commission secretary, there are no callers in the queue. >> thank you. >> okay. so, public comment is now closed. i ask for a motion and second to approve item 18, please. >> move to approve. >> second. >> motion and second. can we have roll call, please? [roll call] >> you have three ayes. >> thank you. can you read item 19, please? >> item 19, discussion and possible action to appoint a commission secretary. >> item 19, thank you. okay, so as previously been announced and at a meeting some weeks ago, a few meetings ago, we know our

long-term secretary donna hood was going to be retiring and retiring effective june 28 and we have been for a while now engaged in search for a new director of commission affairs and we went through a full hiring process and interview prosand pleased to announce the following process there is a panel and after interviewing many excellent candidates we identified one candidate, her name is tiffany lunar, who would bring a lot of experience and expertise in managing public affairs and has been doing this for quite some time. i do understand because this will be a recommendation. i understand from hr that if we did vote favorably to hire mrs. lennar today, there is a gap between when the retirement happens and when she

can be, because of processing on-boarding mrs. lanier in the new position, so there is a interim period of time where we would not have an official secretary treasurer, so therefore, in those circumstances and in conclusion to this hiring process, i therefore would like somebody to make a motion that not only do we appoint mrs. lennar to this position, but also request during the interim period that the general manager and this is a amendment that hr informed me of, would be able to assign temporary staff to cover the duties of the secretary treasurer until this person is totally on-boarded. so, that is a simple recommendation and motion that-with this amendment, this administrative amendment, if somebody would like to make that motion. we do have if we can make

comments before we move forward. commissioner stacy. >> just wondering if mrs. macey or you like to make comments as well? >> i like to thank the president and the commission for this opportunity, and looking forward to working with everyone, and i don't have a lot to say, but i'm very excited and thank you. >> great. thank you. did you want wendy to say something? >> no- >> thank you. therefore, i entertain a motion after this process to appoint mrs. lennar with the caveat that the general manager works administratively to make sure the position is filled until on-boarded. >> did you take public comment? >> yes, i guess we should take public comment as we do on everything. before i ask for that motion,

let us open up to general public comment. >> remote callers, raise your hand if you wish to comment on item 19. do we have any members present who wish to comment on this item? seeing none, moderator, any callers with hands raised? >> commission secretary, no callers in the queue. >> thank you. >> public comment is closed. could i have that motion, please? >> before we make the motion, i just wanted to thank the committee for the work and also big thank you to mr. espinoza service as our interim secretary for the last two months. it has been big lift i know with mrs. hood leaving and i just wanted to appreciate your work and say thank you. and i will move to appoint our commission secretary and say

welcome. >> second and welcome. >> motion and second on the floor. can we roll call, please? [roll call] >> you have three ayes. >> thank you. welcome aboard tiffany and i also want to say, in the process, i do want to thank the committee and hr department, the people department here. wendy macey and ron flynn as part of the interview committee to move this process forward and i also want to please acknowledge [indiscernible] every since it was known there was a opening has been faithfully taking care of this business meeting after meeting while doing his job. he is a staff member of there puc here and been doing double duty and i want to thank him for all the work

he's been doing to make sure our committee with this retirement has been moving forward. so, again, thank you. okay. item-where are we on the agenda? item 20. 20, communications just for information only. seeing none that are mentioned, let's go to item 21; which are items initiated by commissioners. any other items that you like to bring up tonight? seeing none, that being said, we are now adjourned. [meeting adjourned]

>> sanitation and streets commission. today is none day july 15, 2024 and it is 1003 a.m. secretary fuller, please call the roll. >> good morning. please respond with, here, or present. commissioner anderson is present. commissioner eusope is present. vice chair harrison is present. chair hartwig-schulman is present and christopher simi has a planned absence. with four membersprint we have quorum for sanitation and streets commission. public comment is taken for all informational and action items on today's ajepdaism to commen