and historically, and the projected. somehow factoring in the purchases, the non-santhe variay which they move. we have it. we have done it. we are happy to provide it. president vietor: thank you. >> we did bring to you that known quantity approach. a number of our customers applauded that he reread we were not planning on bringing that back, obviously. we also discussed are ratcheting adjustments. that is not something that was welcomed by much. what we are welcoming back is -- generally the way we have always done it, which is one chance to

reset during the year. that would provide some rate stability, but at least something this year -- if interest rates are going down, b.b. -- the able -- to be able to set rates. that is still out there. there are different points of view on that. again, everybody would like certainty today. that is the one remaining issue. in general, there was little agreement to go with the new methodology. president vietor: and if we set it on an annual basis, if there is a major drought, something happens, then there is an opening? >> the contract allows for a drought surcharge to kick in. it is designed to get around that kind of emergency drought

situation, because the rate increases need to be the same for the public in retail customers. we were raising our rates about 15% a year. we have that building surplus accounts, where the hotel customers are owing us money now for the prior year delivery. we have to catch up at some point. that is the difficulty with that. president vietor: on the environmental surcharge, has that been distributed, discussed? this is the first time it is coming up on the agenda. i would be curious what the water stored my thing about that -- what the water this keyword would think about that, just before we vote on it. >> we have reached out to various environmental stakeholders.

the report has been available since february. we will continue to do that over the next 30 days. with the comments we have heard, from environmentalists, there is an appreciation for the tiered approach because it provides incentive to do it. it also makes the water costly enough to provide incentives to do all the low cost, in energy, water conversation you can still -- you can do. the top tier is such a high dollar amount. >> sounds good. commissioners? any public comment on this item? >> we have no speaker cards. >> hearing none, next item. >> the next item is the

presentation and discussion of the treasure island redevelopment project informational presentation. no commission action at this time. this is an informational presentation by the mayor's office of work force and economic development. >> mr. garland. >> good afternoon, commissioners. we are giving you an overview of the treasure island project. the question that arises in my mind is why do you care? you care because he will have to approve numerous documents associated with the development. they include the interagency cooperation agreements. what we will be presenting today is an overview of the project. imbedded in that, are decisions that you as the puc will make, mainly on the water and waste water side. there is also an analysis we

will be performing on whether we become the power provider for treasure island. that is also in the presentation -- how power gets to the island and how it will be distributed. we will be doing the presentation today. april 26, we will come back with the documents for you to approve to move this project forward to the board of supervisors. april 25, it is being heard at the planning commission. that is the first step with it being removed -- with it being approved. you'll have to adopt the mitigation document as to approve all the other documents associated with the development. i am going to turn it over to mike to start the presentation. we will be coming back to you hopefully on april 26.

>> good afternoon, commissioners in with the office ofwork force and economic development on behalf of the treasure island redevelopment authority. we are going to do three things today. we wanted to give you an overview of the development project as it stands today, and then walk you through the infrastructure and systems that would be provided for treasure island in europe when not islands and touch briefly on the steps -- and yerba buena island and touch briefly on the steps before the item is approved on april 21. with respect to the re- development program, we were last before you in february of last year when we brought forward the exclusive negotiating agreement for the construction of a waste-water treatment facility.

we gave you a presentation and then that looked at this as a development program which has changed since 2006, essentially upsizing development to 8000 residential units. the project largely remains the same. the cornerstones of the project remain largely the same. they are based on achieving the highest level of sustainability. creating a new san francisco neighborhood -- there are 300 acres of parks and open space that are meant to be regionally- serving. also existing and future residents are serving as a connection to the larger reason, and finally, the suite of community benefits for public

facilities such as the waste water treatment plant, a new fire station, and an entirely new infrastructure system we will walk through with you today. this is a detailed breakdown of the development program that was analyzed under the eir. the ceqa findings in need -- in the mnrp -- approximately up to 500 hotel rooms, 12,000 square feet to be used. approximately 20,000 square feet for historic structures. and as i mentioned, parks and open spaces. so treasure island and yerba buena were originally

constructed in 1937 as a works projects. treasure island is a 400-acre man-made island. the navy built the island in increments, so the infrastructure is tied together -- what is the best word? not the most rational layout. entirely new infrastructure systems will need to be provided before any development takes place. in addition to the wet/dry utility, there is approximately $140 million retrofit program and the possibility -- to guard against the possibility of tsunami. we will touch on that in the presentation. of the 450 acres, the treasure island development authority will receive all of treasure

island, with the exception of -- this is not working right now, but -- let's see. this shaded area here outlined in red is outlined by the department of labor as the job corps vocational training program. that would remain under federal jurisdiction. on the south side of your blenheim islands -- your but when i went -- yerba buena island. basically all the structures that are out there would be constructed as new facilities, new infrastructure systems being put in place, new residential and commercial uses. there are approximately 800 residential units there today. there is a transitional housing system to allow residents to move into new units as they become available. they are reading out from the --

radiating out of the island core. this is a very compact land development footprint. bus service provided by muni to san francisco and transit service to the east bay. this allows a couple of different things. three primarily i would like to touch down. 60% of all residents within a 5 to 10 minute walk of the transit. we're trying to get people out of their cars for their daily trip on and off the island and create a pedestrian-friendly environment, to incentivize folks who use transit and to leave their cars at home. it also allows for the delivery of very efficient infrastructure system. we are only building on 100 acres of the 400 acres on treasure island. it allows for a much more efficient network of dry and wet

utility systems and allows the development of two-thirds of the island as public parks. a wide variety of programs for open space. a large portion is dedicated to infrastructure and systems and landscape architecture. we will talk about some of the measures that have been integrated to address the water treatment. with respect to sustainability, back in 2006, working with the department of the environment, the staff came up with the first sustainability plan for a project in san francisco. we updated that in 2011. that would be one of the final approval actions that the title board would take and the board of supervisors would be adopting the plan. there are obligations that would ensure the responsibilities of

treasure island community development as the community developer. so, at the master plan level, we have committed to achieving neighborhood development at a bold certification. -- gold certification. we are working with developers to achieve that," certification. -- highest cert. they selected 16 blocks across the globe that had the potential to achieve carbon neutrality. we are working with the folks at u.s. green building council and the climate initiative on developing a roadmap to get to that -- end state is probably

not be right word, but carbon neutrality, carbon positive state sometime in the future. on the building level, there has been a switch. in 2006, the sustainability plan contains green building specifications that pertains specifically to treasure island that would be requirements for all new construction. since that time, the city has adopted a green building ordinance, so we will be complying with that. in addition, there are green building specifications that go above and beyond that ordinance. again, all new construction will be required to comply with this. so, they are attached to our design for development. that, again, though -- would be the responsible of treasure

island as well as any future developer. and our approach to sustainability has been recognized on the local level, state level, nationally by the aia, and through our participation in the clean climate initiative. we have set a lot of goals. a lot of what we're trying to achieve will wrists -- will necessitate the partnership of the puc. so, with that, i will turn it over to the details engineer to walk you through the infrastructure system. >> commissioner torres? commissioner torres: yes, a few questions, if i may. the project calls for 18,000 units? >> yes. commissioner torres: are they

rental or ownership? >> i believe the split is 90 for sale and 10 rental. commissioner torres: and the variants of size, bedroom-wise? >> on average, two-bedroom. the our family friendly. it depends on the product tuck. there are some townhomes that are higher in. the townhomes on your blenheim -- yerba buena island are 1 million to one. then you have the units on mission bay. commissioner torres: [unintelligible] >> of about 30% of the total development program would be affordable. that is one of the things i probably should have started off with. with respect to the government's proposal to eliminate

redevelopment agencies and the power to capture that tax increment, we are shifting to an infrastructure financing district model. what that means is -- >> -- commissioner torres: where has that worked before? >> there is one unit being created. there is state law on the books. they are basically backstop of the same tax revenue pledge -- commissioner torres: and that would provide for the affordable housing? but the law only allows revenues to be used for replacement -- >> the lot only allows revenues to be used for replacement housing obligations. so, essentially, we have 65 cents on the $1 available for the projects, whereas we budgeted for 80 cents. we have had to make policy

decisions as to how we deliver the project. our decision was to reduce the level of affordable housing to 25%. the may planting decisions of the board of supervisors in the planning commission on various options for delivering the project. that is currently the staff recommendation. commissioner torres: i have only lived here since 1996, but i have seen a trend of movement of the middle class outside of san francisco. is there going to be announced here to reach out to that group of folks who are basically working-class folks, to be able to afford housing within the city, at least within the city boundaries? >> one of the options we are looking at is to reduce the requirement for inclusionary housing to zero is currently 5%. in recognition that we want to attract work force in time -- income households, we want to preserve that level to create

the widest possible spectrum of housing. commissioner torres: 29,000,004 facilities and amenities. what does that mean? -- $29 million for facilities and amenities. >> we will develop a school for a k-8 facility. there is $14 million for a combined police and fire station. commissioner torres: those are community facilities. fire stations, schools. >> we just do not think we have a large enough population -- ultimately the school districts will make this determination. commissioner torres: right. the historic rehabs clause -- is that for the buildings on yerba buena only? >> there are three buildings on

treasure island that were built by the navy. commissioner torres: are they going to be rented out like we do with presidio? >> that is the plan. if the project builds up, that would be the intent. commissioner torres: so we have oversight of the whole project? >> exactly. our office is the project management entity for the treasure island -- commissioner torres: private sector? >> no, we are the public sector. commissioner torres: who is the private? >> we have a public-private partnership. we would get the land from the navy. we would enter the development. this is a development with them. they would make the improvements, have the rights to sell to home builders to come in and do construction. commissioner torres: thank you. >> [unintelligible]

>> it is a 50/50 partnership between lennar, kenwood, and stockbridge capital. >> i just have one comment, in vacant probably be addressed in the next presentation about climate change and how low-lying treasure island is. i am hoping we can really address that and talk really concretely about adaptations. there is the tsunami issue. it is a little bit more of an on gnome. it is much more of unknown. -- a known. >> it is dealt with in the plan and the eir. we can talk to that.

>> great. thank you. >> hello again. i will run through quickly some of the highlights in the construction plan, take any climate change questions you have. commissioner torres: excuse me. who are you? >> bks engineers. just starting off quickly -- as michael mentioned, some of the cost. $140 million for technical stabilization on the islands. i want to go through what that means. $123 million in infrastructure costs and utilities. replacing all the existing utilities that are out there today. so, starting with the geotechnical stabilization, the two islands are different in

what their soils are like. yei -- yvi, there are local landslides that have to be fixed, but nothing of great significance. turning to treasure island, very different soil. the soil consists of dread sand over sandy shoals and what is referred to -- the navy filled in this area, creating the flat area. the two primary concerns are the sand layers and the settlement of the young bay mud. those two settlement issues are a big concern with construction and development on the island. for the approach, week mitigate that. -- we mitigate that.

ngo reviewed this with a panel consisting of four world wide experts in the geotechnical field. there are two different types of medication. to start with, the sand identified throughout the development is defined by dynamic compaction and vib rocompaction. it simulates an earthquake. it can pack bill ayers. the compression of the bay mud then is done by loading a bunch of soil that creates a great deal of bay mud over time. both of those together create a disabled platform for the construction of the buildings and utility and researcher. the yellow area is where the

dynamic impaction would take place, under all the new developments. on the perimeter, the vibrocompaction, to create a stable shoreline along the edge. president vietor: so, are you seeing the center of the island is not going to be stabilized? >> the open space areas -- there are no utilities out there in those areas. there is no reason to worry about liquefaction and an earthquake. >> what about kids playing soccer some afternoon? >> liquefaction -- the crown settles, but it is not a catastrophic -- the ground settles, but it is not a cass strophic event. you might give boiling of water. >> and dynamic compaction.

i assume there is an environmental impact report. what would happen to the bay creatures? i would imagine if he made a loud noise -- he made it sound like it was an earthquake simulation. >> it is really no worse than a pile driving operation. it is not a loud noise at all. so, once we go through those two concepts -- [laughter] once we go through those two procedures, of be anticipate losing two to 3 feet of elevation. we will have to bring soil in to bring that up to development grade. i will go into that in a moment.

just over 1 million cubic yards will be imported. >> foreign alta to -- for an altitude increase of how much? >> i will get into that. we anticipate that buildings from six stories to 10 stories can be built on conventional foundations. they will not to have -- they will not have to have a pile driving. the taller ones will have to have piled foundations. >> i want to point out -- in the upper left-hand corner, the waste water treatment plant, the replacement would in theory be in the purple area. >> we will identify those areas. we are going to contemplate were that would be in that corner. >> in the infrastructure plan,

there would be a requirement that that has to be delivered to the puc with the same du technical specs -- geotechnical specs? president vietor: has this dynamic compaction and done in other places? >> yes. it is pretty common along the area, actually. so, moving -- the protection against sea level rise. it has varied over the past 10 years or so. the current direction from the state for planning purposes is 16 inches to 55 inches by the beginning of 2100. we do not necessarily rely on the projected amount of sea level rise. we tried to build a project that can be adapted overtime moving

forward. any new development area, shown in green, -- in the new development area, shown in green, there are the areas adapted to sea level rise. the areas on the perimeter of the island, it is not a levee- protected environment. we need to protect ourselves from waves. we've taken the perimeter and figured out what the elevation seems to be, taking in account tsunami is, storm events, and added 16 inches to the protection. then we have enough room around the island in order to adapt the perimeter over time as more and more information is available. we can adjust that perimeter area to protect. 50 years up, we can then understand what the sea level rise is going to be increate