hearing none, all those in favor? thank you. >> madame president, the next item, item 11, discussion and possible action to authorize the general manager of the san francisco public utilities commission to develop between the city and county of san francisco and parker said investors to support the park merced project -- parkmerced project. >> i will make a brief staff introduction. the mayor's office will be making a presentation. this is another development agreement he would have to assent to. unless treasure island, there are no easy dollars in this one

-- unlike treasure island, there are no easy dollars in this one. any issues we had with the development at this point in time, you still retain discretion in going back and changing things in the future. but storm water, waste water, of recycled water -- all that is on the developer. we are happy to say we are pleased we have reached this point where we can recommend that you approve the development agreement. would you like to make a comment? >> good afternoon, commissioners. i did prepare an overview presentation. if the commission would like, i could move quickly through it, the broad overview. this is to focus on the provisions. president vietor: great. a brief overview would be fine. thank you. >> and i brought copies as well

for the commission. president vietor: thank you. thanks. >> i take it everyone knows where parkmerced is located in the city and county of san francisco? it is the far northwest county -- far northwest corner of the county. >> whose district is it in? >> this is district 7, supervisor sean elsbernd's district. i should mention the supervisor is a strong proponent of the

project. i will present an overview of the project in its totality, presenting some of the fiscal benefits for the city, and focused in on how the developmental agreements and whatsfpuc's obligations are under the agreement. as the acting general manager, michael karlin stated there was no public money involved in at this project and the sfpuc was not obligated to spend money on this project. is entirely a private effort. subject to approval by the board of supervisors, there are a series of development agreements. i take it the commission is familiar with the development

agreement. the most important thing to note is this is a contract that runs with the land. regardless of the future owners -- be they the developer, a different developer, multiple owners -- all the obligations are enforceable. and also the city in general, in compliance with state law, cannot enter into an annulment agreement unless there are substantial benefits above and beyond what would be provided. the key components of the project are transit-oriented mixed use land, a complete redesign of the street and blocks, along with the city's newly adopted better street guidelines, substantial amenity improvements come up on multiple transportation plan would investment in uniate light rail and an ambitious greenhouse gas ecological performance

assessment. in addition, our office with an outside consultant has quantified above and beyond what the city could achieve with the application of the existing ordnances. we estimate -- existing ordinances. in addition, about $220 million of affordable housing funds, we anticipate a $17.5 million annual surplus. this is after accounting for the increased cost to the service population. finally, this is a huge economic and job generator for the city. we're looking at in total $7 billion in construction activity, and over the 20-year

billed out, 30,000 jobs -- build out, 30,000 jobs. parker said -- parkmerced was based on a new plan that attempts to retrofit the model suburb into a 21st century sustainable urban environments. as a mention, the basic land use plan includes the addition of approximately 7500 new units to the existing apartment units. approximately half, all of which are rent-controlled, would be replaced by a brand new replacement units, bringing the entire site up to 8900 residential units at build out. in addition the plan proposes a mixed use community with retail,

office, a community center, and a redesign of all the open space, increasing the amount of public spaces to about 68 acres. this is an overview of the land use plan. i will move quickly because i realize we have limited time. essentially we see the creation of a mixed use transit-oriented for. that is what the dark colors are toward the middle. -- essentially we see the creation of a mixed use transit- oriented core. it allows immediate access to neighborhood services like cafes and dry cleaners. it also allows for positive benefits to mode share. the transit-oriented neighborhood core is walkable

for pretty much everyone on the project site and will provide many resources that are not available now. the slide will show you how density is added over the site. there is a mix of buildings from one or brought stories all the way up to 13 stories. i will quickly move to the slides. i will be happy to come back and answer specific questions if he would like, commissioners. -- if you would like, commissioners. this is a pretty ambitious plan, with the provision of the athletic fields, public squares, transit plazas, and a special storm water retention ponds in the middle of the circle. here is a demonstration. there are six neighborhoods in the commons. this orange area is part of the

storm water system, which i will explain all of a layer. that is an open space that links to the entire project. this project is at 1 batista circle. other key aspects of the site include access from the southwest florida -- from the southwest corner. there are, as in denton, athletic fields -- as i mentioned, athletic fields. there is a new transit plaza outside the ocean view. there are community gardens. finally, these are all the public spaces, all of the private projects must be supplied on the site as well.

the it side is modeled on the better streets model. -- the site is modeled on the better streets model. they will be meeting the new planning department specs. in addition to on site improvement, the project sponsor has proposed improvements in pedestrian safety surrounding the project site. these purple areas show improved points of access to allow greater permeability between that community and surrounding communities. following the signature improvement, the proposed new realignment. this is muni in its current configuration. many and know station holloway, which as i understand it, is the most heavily-used muni station on the line and the site of injuries due to conflicts. this project would move that

station in to the site, add two new stations to the l track for significance public benefit. there are a host of transit improvements that are probably too extensive to go into in great detail. they all support the transit- oriented goal of the project in general. now more focused on sfpuc -- a development agreement incorporates my referenced and sustainability plan. the sustainability plan incorporates all the resource requirements of the development and sets ambitious goals which the project sponsor has filled out. the development agreement works in coordination with the sustainability and development plan to make sure that sfpuc can monitor progress on those goals.

specifically, those goals are -- i will move quickly through this -- a substantial reduction in per-capita energy and carbon output. this is achieved through exceeding standards it through substantial investment in alternative or non-carbon based renewals -- renewal bulls, and conservation measures -- renewables and conservation measures as the project is built up. there will be a 56% energy usage decrease at the project site. there are equally ambitious goals. the project proposes to reduce per-capita water use by 60% per household at build out, reduce

waste water generation by 60%, and improve the local watershed. the project proposes incremental removal of the waste water -- excuse me, storm water -- from the current store system from of storm water management system that combines wells, bonds -- wells, ponds, and if as all goes as planned, we can add this watershed to the lake merced -- excuse me, this offer to lake -- aquifer to lake perced. the sfpuc has discretion to

guide the process. at no point in the project exceed or bitter round -- at no point in the project can it exceed or get around the city. and think that is the most important taken for the commission. -- i think that is the most important take home for the commission. i think there is only a marginal increase in potable water. this is because of substantial increase in recycle water. -- recycled water. there are ambitious goals to keep whitewater -- which water production at an absolute minimum. this -- waste water production at an absolute minimum. all of these ambitious goals -- and i appreciate your patience.

and moving quickly through a lot of information. i think it is important that the commission understand. then i am open for questions. the development agreement has four levels of approval. the first level is a resolution authorizing the consent for the executive director to execute the basic agreement. as the slide indicates, there are three layers of approval after this. probably the most important for sfpuc purposes is the development of the approval. the developer must develop of phase application during which they outlined their storm water requirements, their energy requirements, all the benefits in their plans, and the sfpuc or

any agency with that authority is assigned to review that to make sure it is in compliance. this allows for subsequent review and monitoring at every development phase. if a target cannot be made, whether it is energy or potable water, there is an opportunity at each development phase to correct the course and exercise is discretionary authority to make sure the obligations of the developer are fulfilled. as i mentioned repeatedly, there are no public funds for this project, said the agreement allows for substantial flexibility -- so the agreement allows for substantial flexibility. this involves individual design review projects and the city retains full permitting authority and retains its rights to review any public improvement

and to accept public improvement only when its standards have not been satisfied. the sfpuc staff will be reviewing a variety of improvements, including the potable water distribution system, waste water collection, a new storm water treatment system, street lights, and an auxiliary water system. all of these are executed by the sfpuc. included in the agreements is the addition of the sustainable energy agreement. that is our goal of generating approximately 20 million kilowatt hours per year of either renewable energy or some combination thereof, or requires developers to achieve capacity.

this is a review and monitoring role for the phase application. and allows the developer a variety of means to achieve those goals -- it allows to develop for a variety of means to achieve those goals. for example, a large cogen facility. a thing it is a model of flexibility -- i think it is a model of flexibility. finally, we included a public power provision that requires a feasibility study conducted soon after the development agreement. at this point, when the study is complete, the parties can meet to discuss the provision of public power to the site, if it meets the goals of the agency in

the developer. that is a very brief overview. again, i appreciate your patience. president vietor: thank you very much. i for one think it is a very exciting project. i think these developments are the way of the future and we need to be doing everything we can to discuss a project. it looks like you're trying to hit all the high points with this development. i have a couple of questions. maybe i will open it first to my fellow commissioners, see if there are comments or questions. commissioner torres: how long have you been working on this project? >> dry years. commissioner torres: -- two years. commissioner torres: it shows. [laughter] good job. i just want to ask about the astonishing 2% increase in waste

water with these units. how is that going to occur? >> in the plan, it sets ambitious -- and actually currently goals of that exceed the existing title 24 standards for everything from energy consumption to water conservation. the site is extraordinarily inefficient today. the reason is such an amazing picture come up when you look at it, it is because the waste at the site is extraordinary. if you give me one second, i can give you an estimate, for example. a lot is achieved by retrofitting out of date systems. for example, today, the average unit at parkmerced systems 189

gallons per unit per day. the average home in san francisco averages 144 gallons. we can substantially reduced water consumption, even if another unit was not built on the site. so, i think it is primarily a combination of eliminating or reducing existing waste water practices, outdated infrastructure -- you are creating a credit by which you can then add. i think that is the primary reason they're able to set these ambitious goals. commissioner torres: thank you. president vietor: commissioner caen? commissioner caen: what is the timeline? >> that is a great question. this is a unique project. is entirely private.

-- it is entirely private. what we have not said is the developer will decide when they will commence construction. that will depend on financing and the market. once they commence, the whole set of requirements, all the public benefits i mentioned are required commensurate with the development that occurs. so, this is more of a performance-based development. that is, the amenities are provided commensurate with the private development that occurs. we do not dictate the timing of that development. but certain obligations are created and the developer is required to make commercially reasonable efforts to improve the site. is driven by the market, but the framework is for -- it is driven by the market, but the framework is for public improvements. after 30 years, nothing has

occurred, and if the board of supervisors does not amend the agreement, all the obligations expire. it is our estimation it will occur over approximately 20 years. president vietor: i have a question. i like to see a lot of this generation. i think this is the way of the future. i want to commend you on that. i saw that you did some calculations on savings. i believe the ghg, energy consumption and production -- are both of those related to the transportation peace -- piece, or is this gained by the new housing units? >> are you referring to the

purple boxes? president vietor: yes. is this one on the left related to transportation? >> the one on the left is related to energy consumption and transportation. i am glad that you mentioned and pointed out the chart that i rushed through. i am trying to respect your time. there's a long story behind all of this. i think the point is to show the commission in general -- we accept -- we expect a good mode share on this project. in using transportation speak. -- i am using transportation speak. there is a detailed public benefits project. i breezed through this. id includes a shuttle with connections -- it includes a shuttle with connections to all the shopping. bike share, car share, huds.

what that's graph shows -- what that graph shows is a large majority of the transmission -- of the emissions are due to transportation. so, that chart shows that the simple pop up allowing this growth to occur here, as opposed to on the edge of the bay area or a low density suburb, has significant carbon savings due to transportation. the analysis you see on the following page is a combined analysis that shows savings due to energy conservation and also changed behavior for residents. president vietor: so, i know we as a municipality are looking to comply with the state legislature.

have you been able to create a quantifier as to what this may contribute to that effort as a whole? >> i was talking to my colleague from the planning department. president vietor: i know that is a hard question. >> i can tell you the graph i provided is a crew estimation of what we are saving in terms of ghg and php. josh, do you have anything you want to add? >> no, i do not think there is anything specific to that community strategy our city has to undergo as far as sp22, sp 25. president vietor: i think it would be a great story to tell if, moving on, we would be able to say what the projections are.

we will be able to contribute our fair share. so, what percentage of the units are going to be affordable housing? >> i will reiterate this because there was a significant public controversy. there are approximately 300 existing rental units on the site. at the full build out, all those rent-control units will remain. i wanted to make sure that the commission was aware of that. all existing tenants will be provided an opportunity to relocate at the developer of's expense to the brand new units. -- at the developer of's expense to the brand new units -- developer's expense to be granted units.

the development agreement requires that one-third of those be provided as bmr units onsite. at a minimum, 270 units will be provided on site. these are affordable units that do not exist today. those will be targeted specifically at qualifying households. the remainder, the remaining 10% of the obligation, the developer may provide onsite. we estimate the developer, as an alternative, could pay $220 million to the mayor's office to create an affordable housing trust fund. that money can be leveraged with state and federal money, and that to under $20 million, by the way, -- that $220 million,

by the way, is what the obligation is valued at today. it will increase over time. president vietor: how much are they? >> there is a substantial high turnover rates. there are a good percentage of long-term tenants as well. i think in some cases the rents are very low. i want to emphasize, we've gone to great lengths to put an agreement in place that protects those, particularly the long- term tenants and make sure no one is displaced at any point during the construction and the long-term tenants who are benefiting from rent-controlled can move into new units. president vietor: last question. all this us to do with climate change and the proximity to the