kind of focus on some of the things we've been doing over the past couple of weeks as well as what we're doing, how we are planning forward in advance of the next chair. over the past six months, we've had an orientation and we will likely be doing some strategic planning with members to try to figure out some future agenda items, to try to be organized and provide you with our best advice to the extent we can. to that end, what i wanted to throw back out to you, you don't have to answer it so i will take the answer, what can we do or what issues should we approach to be of service to you? we are trying to line up our own agendas to the extent possible with yours and work with staff ahead of time to make

sure these issues are brought to us so we can least provide some input. but we would love to hear from you on what issues you think are best dealt with before they come to you so you can at least have the opportunity to hear back what the public input has been. you don't need to answer that now. i will take after i am done. in terms of some of the stuff we've got coming up, we have been working with the water group. we have talked about cosponsoring some water workshops on the east side of the city and we have invited members of the cac to work at a time to make sure the

presentations are rolled out. that is dividing of commentary and present -- and questions and is presented in a way that engages people and gets feedback and hopefully we will be working on those over the next couple of months. a second thing i wanted to note is this is the passage of the community benefits policy. one thing that i have thought, the environmental justice policy adopted a number of years before that falls under that same rubric. i have been talking with some of the members and we are going to be establishing an ad hoc committee benefit subcommittee, transforming the subcommittee that had been on hiatus to work with juliet and work with other staff to try to provide guidance

and then could. right now, the san francisco foundation has worked on a lot of community benefit steffens we don't have any meetings set up yet. that is something i think we will be seeing more of in 2012. we have a meeting tonight embargoing to tackle some of these issues. one of our members has taken it upon himself to try to recruit someone for one of our vacancy its. hopefully this gentleman is going to be coming today, so hopefully he is not scared off and will put in his application with the mayor's office. if you have any questions --

>> we are going to miss you. se attending >> we will ponder your question. thank you. i would like to thank you for your service and we appreciate all or kiev done over the years. i have always had high hopes for the cac, and i'm hoping was that out each and reinvigoration. i understand there has been issues with meeting quorum and not having a full body in place, and i would hope you could be integrated to advise us on matters coming before us. i love the idea of tracking the advanced calendar and if something is coming up like

shoreside power, there could be more in-depth conversation so it can come before us with a brief summary or recommendation on what some of the issues might be. even on the structural pieces, to be able to come to us and say this is how we are thinking about setting up. however you decide as you move into a strategic planning progress -- process, so that we can be supportive on our end. i look forward to the next iteration and i hope you will continue to participate. >> i have become quite fond of this agency. i have said before and i will say again, the puc is probably one of the most important agencies in the entire city. it is part of our urban life support system and i think a lot of people forget that very

essential fact that we could not live on as little tip of the peninsula with up the services provided by this agency. over the past few months, we have had a new liaison who is new. she has taken this job bond with a great deal of enthusiasm. i appreciated since i have a day job and cannot be following this stuff on a daily basis. thank you. >> thank you. >> commissioners, let me give this information that i think is very important. i was yesterday at a land use meeting where the navy gave a presentation, the united states navy gave a presentation where they are talking about a very, very contaminated area that they desire to tap.

that means to put a 2 inch plastic and put some dirt over it. this is for your information. some of view are old enough to know about midway village by geneva. i see one person nodding. hopefully this information can be given to the commissioners. they went ahead and cap them arianna and are having a lot of issues with that, with people getting cancer. the reason why i am relating what i am relating is because the hunters point area -- put that infrastructure that taps

into our other main system when they chop off 35 feet -- today, i get reports about high incidence and i will be making it a point to send you some of the things so you can inform the other commissioners. i am connecting the dots. you heard a general report, but we need to inform our young people what is happening in that community. they are the ones who are going to live there in the future. when you reach a certain age, you close your eyes and go away and our baby's thigh and our youth have to have an environment where we, as we are the warriors and we are good people, we maintain quality of

life issues. i don't want to go into detail so you can connect the dots. the navy, as it is allowed to do what it wants to do -- including creating a lagoon -- we have to be very leery of the navy and we have to be very leery of how they expand their money on hunter's point. thank you very much. >> thank you. >> good afternoon, commissioners. last time, i promise. i'm with the san francisco green party. i want to throw back this comment to the communications. i thought there was going to be

a verbal presentation on the composting toilet tissue and hopefully you all saw that presentation and it was really exciting to see such an excellent report that shows it to the extent you're going to do major sewer improvements, it could actually cost effective to install composting toilet systems even in large buildings. that is a really exciting piece of work. every time i have run into tommy in the halls -- it's great to see this come forward and it's very exciting. i have a couple of suggestions. in bed basis and a couple of months ago, there was a news report about a contractor in the east bay that is going to make a

presentation to some agency which was never specified in the san francisco government doing new outdoor toilets because we all know how successful the french ones were, and that is not very. these new toilets would be ego toilets, well design, open-air toilets, a lot like some of them in europe. very cutting edge stuff. even though they are 40,000, 50 -- $40,000 or $50,000 units, these toilets do not use water. they separate liquid waste from a solid waste that they do not compost the waste right there as the report shows can easily be done. my thinking is, reach out to

whichever department is hearing about this new toilet idea. explore the possibility with them. if they're going to spend $40,000 or $50,000 on these outdoor toilets, we may as well spend more to make them compost on site. we could use various different models to learn what are the best composting strategies. the other ideas are to explore putting these systems for multiple users in single-room occupancy hotels. that might be a good place to introduce these. it would not hurt to try couple of composting toilet said in there as well. thank you to the staff for incredibly exciting report.

i hope you look at. thank you. >> thank you. >> next item. >> the next item would be the consent calendar. all matters listed are considered routine by the san francisco public utilities commission will be act on base single vote of the commission. terms and conditions offers the general manager to access on behalf of the city and county to extend the term for two years under the current lease at rawlings work and at burning game. -- burlingame. improve the election and water improvement program funded agreement, engineering service,

fish passage facility within the alameda creek watershed and authorize san francisco public utilities to execute a public service agreement with the u.s. corporation in an amount not to exceed $2,000,000.300000 -- $2,300,000. the contract and pipe installation on new mcgovern, stevenson, to the lowest qualified responsive better to replace renewed aging water pipes. -- the waste-water facility alighting efficiency at no. friends the oceanside to replace aging high intensity lighting features with high efficiency light a meeting diode fixtures

for a contract of $500,093. -- 500900 -- 5000 -- >> so moved. >> we have no speaker cards. >> all those in favor? >> opposed? the motion carries. >> the next item is regular business. discussion of possible action to authorize the general manager to enter into equipment lease purchases with bank of america not to exceed $8,291,070.87 in qualified energy conservation bonds and $6,600,000 in new, clean grenoble energy bonds for installation of qualified equipment in the office building project at 525 golden gate ave.

and authorized legislation to the board of supervisors for review and approval. >> good afternoon. i am the deputy chief financial officer. i have a few slides, mr. secretary. we have two requests before you today bundled as one item. we have to capital financing requests for green-related projects within the enterprise. we have project budgets that have been improved over the past couple of years. they require financing at this time. it has been about three years since we last shared with you capital financing. the last one was in 2008. we'll just go on. we have about 14 $29 million in project expenditures that will be funded with these two

transactions. we have what are called qualified energy conservation bonds and 6.6 5 million in clean, renewable energy bonds. these actually result from a federal tax credit allocations provided to this city for green- related projects, specifically those of these provide a tax credit similar to what you may recall from our water financing with the build america bonds. it is a similar concept. the interest subsidy brings the overall borrowing costs under 2%. if we were able to pull the trigger today, they would be closer to about 1.2%. very, very low borrowing costs for us. we do anticipate these transactions to occur. the qualified energy bonds of

december and the financing will occur in the spring. this is to fund the green components of our new headquarters building. solar, wind, the living machine, which is the water treatment, solar to control temperature and lighting within the structure. three projects will be funded with these moneys. the in line of micro hydro, which is a small generation plant placed within the water distribution system as well as to traditional solar projects. in terms of vendor outrage, we can best pretty much every firm that does this sort of financing. six of them responded and bank of america came in at the lowest cost.

bank of america was the provider three years ago. they are familiar with us. i can appreciate that the doctor -- the documents are low-volume this. but keep in mind there are two sets of documents for the two transactions. but if i could quickly walk through what has been provided, the purchase agreements describes the equipment pledge and repayment terms. the acquisition fund agreements describe how the bond proceeds will be held and how reimbursement will be claimed for project expenditures. the filing agreements describes the relationship in terms of filing the appropriate documentation with the irs so we get our subsidy that we absolutely need to bring our net costs down. for the financing terms, we are aiming for 16-years and borrowing costs under 2%.

we will more than likely be in the 1.5% range once we move forward. i do want to thank my a debt team under the new debt manager, along with his folks. they do all of the heavy lifting as relates to the bond transactions, not just this one. i like to thank them for their support and i'd be happy to take your questions. >> that rate is extraordinary. >> you cannot be dead. >> comments, questions? >> i think it's very exciting. thank you for all your hard work. it's great to get these rates and projects going. >> thank you. >> some time ago, i sat down with taut and charles and we reviewed a few things this is talking about getting educated

on issues. we had a real good conversation which has allowed me to talk to many university students about the bonds and other stuff. these two gentlemen will tell you that i left a happy camper. i did ask them questions that never expected me to ask because most of my questions dealt with issues in the community which comes to the point i'm going to address now. i was at a meeting with city operations where we are taking how we do our investments. talk about the municipal banks and models used in the quarter.

i think todd will enlighten you on that type of model. what i am pleading on behalf of the 99, because i and advocate, you know. we have the 1% and i belong to the 99. we do not have too much money, but hopefully we have a good heart and hopefully we can speak the truth, and hopefully we can do some good action so that when we leave this world, we leave a better place. when you say bank of america, i kind of get a heart attack. you know the bank of italy and their headquarters was in san francisco and now they are in north carolina.

i know how the takeover took place. todd and charles -- hopefully they will look at ways of investing and stay away from any entity that has a lot of toxic loans. any entity that has participated in that algorithms, where they brought the downfall of our economy. thank you very much. >> thank you. >> i believe i need a motion. >> so moved. sion?

all those in favor? opposed? the motion carries. next item. >> item 12, authorizing the general manager of the san francisco public utility commission to execute on behalf of the city and county a lease for the chevron pipeline company pursuant to charter section 9.108 and requests the director of real-estate division prepare and submit legislation to the board of supervisors to approve a 20-year police in alameda county to operate and repair existing petroleum product pipelines for an annual rental payments based on appraisal in the amount of $10,000. >> good afternoon. i am the real estate director and i'm here to ask you to approve our third lease with chevron pipeline company in this location. our staff report is comprehensive and i'm happy to answer any questions you may have.

>> commissioners? >> i think that was very clear. this goes back a long way to leases with chevron. if there are no questions, comments -- >> quick comment i see no reason not to move forward with the item. i appreciate to meet with staff and discuss ways to move forward and hopefully get a little bit of advice from the city attorney's office and discuss how moving forward, these leases will address in particular maintenance agreements, especially outside of the city limits. i appreciate your time and time staff has given me so that we can kind of move forward. i look forward to having those meetings. >> thank you. "may i have a motion?

>> so moved. all in favor? all opposed? the motion passes. the next item is a closed session. he would call for any public comments in a closed session? >> any public comment for the items we are hearing in closed session? >> if you would entertain a motion to invoke the attorney- client privilege and allow me to read the item and move the motion. >> so moved. all those in favor of? the motion carries. i will -- >> i will read the item. >> threat to public services are facility, consultation the agency chief of security, conference with legal counsel, existing litigation of the

defense -- conference of legal counsel, anticipated legal obligation as a plaintiff, conference with legal counsel, existing litigation for the county of san francisco.