as we are taking a bill from $82 per month to about $262 in 20 years. but it would be very gradual. >> that subsidy would come from the other repairs? >> for us, it is within the operating funds. we also operate an angel fund that allows other ratepayers to donate money. we do receive a little bit there. we received a few hundred thousand dollars per year for prior balance closeouts, unclaimed deposit money. every time we come through the process and say, here is some money that is unclaimed. in addition, we looked at other revenues that might be available. as it grows, the bigger number would be something we want to consider, how to fund it. >> i would love to hear, in the

not too distant future, some thinking around or a recommendation from you on what we could be looking at to subsidize that number. i think it is really going to be something we address early on. >> i think you are right. we are required to do the rate study every five years under the charter. as part of that, we are asking the independent consultant to look at how the 10 largest california cities as well as all of the neighboring bay area cities are finding their programs. and we are at the end of an audit from the comptroller's office for the assistance we have for the low income people. they have made a number of recommendations for that system to be improved. you will be getting a lot of information about that and how we can do business differently.

>> what rate are you assuming for the financing? >> we are assuming 5%. we have been very fortunate to get closer to 4% with our recent financing. we do not know for sure if we will get that lucky in the future. that is a very large potential swing of affordability to be conservative and show you, the policymakers, as well as the stakeholders, what it could look like. this is a possibility. it is a likely number. we could get lucky again but we are not guaranteed it yet. president moran: any other questions? are we ready to hear miss ellis tell us how people are going to learn to love this. >> as i introduce myself, julia

ellis, not the savior. i am here to provide you with a preview on the approach we will be using for the public education and engagement program as part of the sources the engagement program. at the last two workshops, the importance of having a robust public education and outreach an engagement program was assessed by the commission. as staff, we have this as an integral part of the source system improvement program since its inception. our plan is to develop a public education outreach strategy that will stretch citywide and engage stakeholders from all of the districts in san francisco. our goal is to have an informed, engaged, and it's hard stakeholder and neighborhood partner during the whole life cycle of the ssip. in order to do this, we have

developed five strategies. the first is to provide opportunities that have meaningful and sustained engagement with stakeholders' at their point of discovery. what this means is that, typically, government agencies and entities like that do their outreach by holding meetings where they ask constituents to come to them. our approach is going to wear the constituents are, whether it is going to street fairs, a grocery stores, partnering with business and civic leaders with the hope of being able to engage a wider array of individuals and groups so they can have a deeper understanding of the source system. this is a strategy based on the commitment that we need to move beyond the usual suspects. to engage folks who do not typically engage with us while continuing to work with those who are in the inner circle. the second strategy is around

utilizing community partizan the poor planning. there will be multiple opportunities to do this. we will be speaking to involve stakeholders, whether it is residents, businesses, community partners, from the beginning to the end of the product impacting their specific neighborhoods and tying the projects to the overall program. we will leverage opportunities for participants to engage in the strategic planning, design, development of the project, trying to build upon their understanding of how the system functions and the value that it has over the years to come. when a example the we have been talking about a lot is early implementation projects. these are all planned to be visible, neighborhood-based projects where stakeholders will be able to engage from the beginning. it will provide a platform for us to educate them about the larger platform. it will include physical,

tangible neighborhood impact. whether it is st. sidewalks, it will be things that people will be able to see. from an engagement perspective, that is a huge opportunity for us. so much of the work is invisible and underground. we are looking for opportunities for things that people can see and 0.2. -- and point to. the second -- the third strategy is leveraging innovative communication tools. we know that a lot of people get their information using technology. we will be going after their computers, their phones, and using technology as a way to get stakeholder attention in new ways and to reach out to more people. this will be in addition to the more traditional tools we use, including direct mail, public advertisement. the benefit of using technology with the understanding that not everyone has access to technology so that we will be

going into the community and allowing face time with members, but the technology can track the breath of the scale of people we are reaching. we recently did ipad surveys at the sunday street fairs and farmers' markets. we had over 100 individuals participate. we were able to find other familiar their -- their familiarity with the sewer system and other information. the fourth system is to develop the educational programs. this is embedded into the larger priority to educate the public about the work of the puc. earlier, we came to you and asked for support to develop a more educational initiatives. as it relates to the sources to

improvement program, we will develop a dedicated strategy and partnership with the unified school district where there will be curriculum and programs developed with clear benchmarks and outcomes. kids will achieve these types of educational attainment as it relates to understanding the source system. from a staff perspective, we see young people and children as the next generation of environmental stewards and champions for the system. it is so very important that they understand how the system works and the value of that system. the second part goes beyond children. it will be developing opportunities to educate the larger public. since most of it is underground, we are looking at tangible ways where we can take folks out and show them how the system works. what does it mean when the systems are 100 years old and you have digesters falling in on themselves?

the fifth strategy is to utilize community benefit activities to build support for the program. with the adoption of the community benefits policy and the environmental policy, staff has a goal to reach out to neighbors and educate them about the source system improvement program. as part of the program, we will apply both of those policies from the outset of the project. whether it is putting community benefit projects that result intangible benefits or a 2% requirement into impacted neighborhoods, those will both be efforts that will allow us to tie these types of activities to ways to educate the public about the source system. in summary, the overarching approach to underpin ease of the strategies is our commitment to engage individuals early and often.

what typically happens is it is early decision points we are going out, trying to hustle and get the crowd to support going to a particular meeting. our approach is that we are seeing from the beginning that we will engage folks over a long period of time. they understand what the options and trade offs are and why the program will be important. we want engagement by stakeholders so they can participate in the decision coming out of this program which they will have to pay for. before i describe how we will carry out the strategy is, i would like to go over what we have done so far. this slide outlines outreach efforts that have been associated with the program as far back as 2005. focus groups, community town hall meetings, different resident task forces. as a result of all of the work from 2005 until today, staff

hazmat and interacted with over 3000 people. our most recent effort includes a set of focus groups which we mentioned to you as well as a set of ipad services that we have been doing. what we have heard from participants are they are unfamiliar with how center cisco's combined sewer system operates. once it is described and they hear about the challenges, they generally support it. obviously, they have concerns about the cost. we have spent quite a bit of time doing focus groups to hone in on the points that resonate with individuals living in san francisco. the age of the system, seismic safety, and public health are the concerns that resonate the most. we have heard from participants that they desire a less intrusive way. we are trying to think. coming to a community meeting

does not always work for them. what are ways to provide them timely information and receive feedback? we will be developing these as we develop the strategic plan. moving forward, we will use the tactics highlighted on the slide to build understanding. obviously, public engagement is the central component to this work. it will allow us to go beyond informing and educating the public. we will seek out partnerships, the middle of a, which it -- with a diverse array of organizations. whether it is business groups, labor partners, with the hope of being able to reach out to individuals and organizations that are new to the sfpuc but have a vested interest. we will expand upon the current channel that we used to reach current stakeholders, using new technology and social media. our next steps are to, from now

to the spring of next year, we will complete the development of the communications plan. in addition, we will continue to meet with the decision makers next door at city hall, including folks in the mayor's office and board of supervisors, to educate them on the program. there are some individuals that we intend to have regular contact with because they have been very much interested in the decisions. we need to do more work with the board of supervisors and mayors office. we will continue to do ipad service, the online telephone service to get additional feedback from the public as we are shaping the program. we will continue our partnerships with educational institutions and we will be finalizing the curriculum and metrics with the school district because they are ready to go and implement this program within the schools. as part of the development of

the rate proposals, which is being spearheaded by the finance team, we are working with them to ensure that we will be able to assess what is being done in other jurisdictions. what tools have they used to successfully build support for similar types of capital programs. upon delegation, we will develop a teller strategy to engage local neighborhood residents around the central bayside program. and the early implementation projects will have a process that complement the work that is being spearheaded by several staff. they are here today to ensure robust engagement for each of these programs and direct connection that is part of the source improvement program. they are not just one off projects. that is our work plan for the next 12 months. we will issue request for proposals as we develop a communications plan, which we

hope to have done by next spring. we appreciate the commission's interest, specifically around the education and outreach, because we think it is integral to get by with support because the neighborhoods will be so impacted but can truly benefit from these programs. i am happy to answer any questions. vice president torres: what was the nature of the demographics for the focus groups? >> we worked with a company and there were five focus groups. vice president torres: they all came from hunters bayview? >> no, they did not. there was one done with chinese residents, one done with spanish-speaking homeowners, one with -- vice president torres: why would homeowners who are spanish- speaking have concerns about the bay view? >> it was to get feedback from

them about the overall program. the whole $7 billion, of which only $2 billion is happening in bayview. are the owners who are living in the sunset, what are the priorities for them and how are they connecting with issues? many thought older would be a high priority. for many folks who are impacted on a daily basis, it was things like the aging system, seismic, public health around the beach. vice president torres: what element of this program will involve employment procurement? how many jobs are you projecting to go to people in the bay view area? >> is premature to have a number. vice president torres: what is the goal? >> we hope to exceed what the local higher goal is. it is 25%.

vice president torres: by then, it will be about 50%. what does that mean in terms of numbers? >> to give context about our commitments, we have seen a lot of attention to this. we are signing a lease that will come before you in september, at the september 11 commission meeting. to have faith in bayview hunters point to launch our contract assistance center. it is focused on building the capacity of smaller contractors to bid on work specifically related to the ssip and the opportunities that will be available there. vice president torres: you are providing opportunities for vendors as well as construction jobs and working with your colleagues in the labor movement.

what part of this involves increasing the capacity of the college site? >> that is another really great example. for the southeast community facility located in bayview hunters point, we are -- the first phase of construction to improve the physicality of the building will begin in october. the first phase is about $1 million of improvements that will be happening in three phases. vice president torres: are their pictures to show what those improvements look like? >> i would be happy to bring them. vice president torres: do not bring them to me. bring them to the people that testify. >> i was at the meeting last thursday and there were two dozen people in the room. we talked about the commitment to jobs. the contractor that will do the construction is a local contractor from bayview hunters

point who has a track record of hiring 100% from the community. i give you those examples just to say there is a serious amount of intentionally making sure that any time there are opportunities for jobs, that we will be maximizing those opportunities and setting us up for success. vice president torres: i have confidence in you and you have done an incredible job. it is impossible to get everyone to know what is going on. communication is key. no matter what you do, people will not give you credit for doing what you have done. many of the people who testified today do not know what has been going on. they have not been informed. it is not your fault, just thus making sure that we reached out as much as we can. >> definitely. i appreciate the feedback. >> i have asked this question

before and i cannot remember the answer. is this going to be a bond issue? >> multiple bonds. >> it seems to me that our interest should not be, and this is going to sound not correct, but are interested should not be the feedback from the rate payers. i think our interest should be an hour process should be the education, getting those people to one of the treatment plants or something on television to educate. anyone being educated would understand that this has to be done. that is going to be our main pursuit. >> the broader education thing makes perfect sense. a lot of discussion whether we thought we should have focus groups with everyone or just ratepayers. we are anticipating having bonds. this commission can propose the

sale of those bonds and the board can approve them without going to the voters. we thought it was much more reasonable to take a look at what the rate payers think as opposed to all of the renters who do not pay the bill directly, who would have to vote on something. if that strategy changes, then i think we have a different outlook on some things. we want to find out the ratepayers' attitude on these things. as commissioner torres said, there are some who do not care about some issues but care about things like seismic safety and public health. >> with a 20-year projection, that is five mayoral elections. and 10 board of supervisors

elections that are out there. if those folks start running against rate increases, that will be a problem for all of us. >> we did a five-year rate increase last time. we could do a 20-year increase this time if you would like and get it done in one fell swoop. >> if you are educating people who are in middle school today. by the time rates hit the fan in 10 years, they will be in their mid-'20s. prime voting time garrett it ends up being more important within the spectrum of things you can do. >> thank you very much. we are now at the tail end of the workshop. i want to thank you for your active participation, not just today but the prior workshops. several of the commissioners have met with us and had

additional briefings. the program that we presented to you today brings our system to a state of good repair. employees, state of the art technology, it hits all the marks that we are trying to hit. it makes our facilities good neighbors and enables us to increase our level of community benefits. it does take a robust community outreach program. i think julia and her staff have done a great job. they have brought on a communications person specifically for the ssip. they are working with me on a day-to-day basis. we will have a team of communications people who are assisting us. what is different about today is that we have a resolution and potential action for the commission. we are recommending that you approve the resolution. this would move us to endorsing the ssip revised goals and level of service. it would validate the $6.9

billion program and authorize us to move forward with planning and development of the projects there were included in the phase one slides that we talked to you about at a cost of $2.7 billion. president moran: that resolution is in front of us. i know we have people who want to talk to this item. before we get to that, can i have a motion. it is in front of us. on our speakers, i have -- >> can i say one last thing? i want to also thank -- it is hard to express the amount of teamwork that has gone into this. behind me, we have a whole bundle of people who have helped and the leadership of general manager harrington has been so incredible for us.

i want to a knowledge that. that was my last slide. thank you. president moran: thank you for doing that. >> difficult to get it all into three minutes, but i will try to be fast. i am really excited. this is really important stuff. i commend karen and the entire gang. thinking about several things, the rate impact, if it really is that dramatic, i think people are going to be much more cautious and careful than they have been about use of portable water for portable purposes. i suspect there will be more of a push towards water systems and roof disconnects, which will impact water demand. taking these rate impacts and rebalancing our water demand projections is going to be a little difficult, but that will

probably be necessary. we may not be at the city water demand 10 or 20 years from now that we have projected with these cost increases. people will find ways to do the most appropriate thing. on the r & r program, it is important to bear in mind that as we increase our sewer inspection and repair at the same time we're doing this major capital work, there will be more investment in waste water and it will have beneficial effects. getting to a state of good repair is good, but there will be more construction impact in the neighborhood and at the plant. there will be a lot more work and we have to be sensitive to that. i appreciate commissioner moller caen's concerns about cost and speeding things up. at the same time, there are enormous real-estate challenges to deal with central shocks and

to move things around it in the southeast in particular. we cannot do too many things at once and keep the system running. i think staff is challenged in trying to figure that out. there are some very real issues with how to phase it. very briefly, on the green infrastructure, i think that will have impact on water conservation. as there is more water infiltration, that will have portable and non portable offsets. we should look at water conservation and green in separate boxes but also in the crossover impact's going forward. in addition to these projects, if $7 billion is not enough, there will be more in the future. possible nutrient removal, all

of the future regulatory drivers. this is all the stuff we need to be doing now. we need to continue to invest in the system. it is not a system that invests in itself. we need to continue to follow that. just to end, although the costs are significant, i hope will be -- we will be looking to grant sources, federal, state, other opportunities to minimize the impacts. thank you. >> commissioners, over the last 40 years, one of the instruments that best gave me an idea of our system, we talk about new york and boston, los angeles, a very good documentary film.

we have a very good documentary film on hetch hetchy. when we are talking about education, we need to invest in an instrument such as that so that huge amounts of people can get the best type of education from the best type of experts presented to them so that it can be repeated again and again and again in our schools, in our high schools, in our middle schools, in our colleges, in our universities. having done that, then we can thensfgov or some other pbs to reach the general public. we need to think about that so that if we have a media expert on