>> right. >> thank you, charles. commissioner? >> is there a sense of what the demands have been since april 12? >> we consulted with the department of environment on managing this program, learning that 20 applications were submitted. only a few of them were processed. they represented $560,000 in requests for green financing. a few of them were approved prior to fannie mae and for -- freddie mac concerns being raised. the program is caused while those concerns are address.

but it was about 20 applications. >> the concern was a communications issue? >> with a green finance program what it does is it allows property owners to prepay their loans for property improvements on energy efficiency, removals, and water conservation through a lien on the property. fannie mae and freddie mac have expressed concern that they maintain their priority status. that issue is what has a dialogue under way within the financial community and government as to how to resolve it and make sure that we can move forward with our program effectively. we are not alone in that. many communities have that

concern. >> thank you. >> any public comment? seeing no one, onto the next item. >> commissioners, before that, is this a good way to get information for the tangling questions? >> that is not often the case. >> next item? >> in this case, employee recognition. i would like to call attention to a typo that i made. we all believe that bob is eternal but i accidentally gave him four more years and is correct years of service are 31, not 35 -- his correct years of service of 31, up not 35.

>> good afternoon, commissioners. this is a good year for losing a lot of good people. bob has been with the city for 31 years. he was in charge of the work force training for a number of years and has been the person that set up the employee recognition program. he has probably trained 20,000 employees of the city during his career here. he has also been the single largest contributor to the charity campaign in the entire city for free of the last five years, doing just more than what anyone else would do in terms of giving. where is he? right there. ok. bob, we wish you well. please come forward.

[applause] >> if i could do both first. bernie is one of our success stories. starting as a secretary in the engineering division, switching to the claims and contract bureau, second to the harry traci water treatment. whenever we are calling it these days. these are all names for agricultural and land divisions and for the last 17 years she has worked for went out to the rank military services and is now a senior real property is officer, a fine example of how

hard work and dedication to give you the reach of any goal that you set for yourself. we wish her happiness in her well-deserved retirement. [applause] please come this way. c'mon. [inaudible]

>> this is absolutely a great honor to see these people coming up to get their commendations for a number of years of service. one of the best things i can do as the president of this organization is having number

of employees working at this organization that care, working long and great careers. congratulations to both of you. [applause] >> other commission business? >> other commission business. >> we were hoping to get an update on what is happening with the reservoir project. we were tracking it in the newspaper last week. there were dispute issues, but more so low -- around the local hires and what roles they played with regards to community members getting back to work. >> i will be hot -- happy to start, barbara conjoin in or cut me off. the sunset project was always an

interesting project in terms of trying to maximize community hires. there was a lot of solar work that was owned by the electrician union. there was always going to be an issue about the kind of work that could be done. when the project was started there was a grievance filed by the electricians' union saying that more of the work that laborers were doing should be the jobs of electricians. settled not through a city process with the employer but outside contractors. after that happened, more work was set aside for electricians, but we were still hiring a number of laborers and meeting the requirements. claims were filed with the city office of labor enforcement, which enforces prevailing wage issues, saying that people who work laborers performing

electricians work, they should have received electrician's salary for that. that report also seemed to go further in many minds to record that this work was and will be the work of electricians, which is where part of the dispute comes in. the contractor said that he could no longer meet the needs. three laborers showed up last monday morning and were turned away because of the pay. workforce development got involved and met with community folks, met with the unions, met with contractors. by wednesday afternoon they had worked out that there was still work that could be done by laborers that did not violate any issues with electricians. by thursday morning the work was started again and laborers were

back on duty. so, that is mostly handled. we believe that the people that would have been hired as laborers will be hired as laborers. we are still hoping to get the hours we were hoping for. it might be short because there is just some work that they cannot do. this is a larger issue statewide about who does the work. there are some state interpretations that seemed to say that if it involves solar panels, only electricians can do it. frankly, in many ways that prices out electricians in the market. there is a new classification that was just established in the last couple of weeks between the unions and the electrician contractors that would be a solar installation classification.

we see that as an opportunity to work with the electricians' union on solar classifications and involving the community more. we are hoping that that is one of the longer-term solutions. in the meantime, this commission meeting would have been voting on a contract to do solar around city hall. since there was still dispute around where the line was drawn, this building would bring in roofers. we wanted to make sure that we had figured that out before we went ahead and charted the additional dispute. i would have expected that by the beginning of july we would have been able to bring those contracts back and had them work out. again, i really want to applaud barbara, she convened many of the meetings over several days, bringing in many different groups, contractors, obviously

working with the office of labor standards enforcement. we rely on these folks to help us, but it is our job and our money. barbara riley stepped up in a short period of time. we would rather not have to keep fixing this in the middle. we would rather start in a way that we can all sustained. >> barbara, thank you for taking the time. i know that getting that call and being asked to shut -- to set everything up over the short term is not much fun. >> we still had 51% of the workers coming from san francisco. >> i would just that that the project is two months away from

completion. we are happy to come back and report on the final numbers for work by san francisco residents and by, in particular, disadvantaged san francisco residents. as the project winds down, employees that are there today, particularly ones that are performing, they will wind down. over the next few months we expect to have some of those folks laid off and looking for additional work. part of the boom and bust of the construction cycle. >> important to understand, some folks thought that 25 people from day one through day 25, and that is not how it works. >> and we will see longer-term implications with regards to the commitments to support local hiring based on this dispute.

if the jobs were going to be based on the solar program, until it was cashed out they could potentially have implications for the city build. >> i think that on this job in particular, everything has a necessity building already. those of the ones that set the goals with the contractor in the first place. the one implication that will be set tomorrow by the board is that while we are providing a variety of positions and money for different things, there is not an allocation within the organization. so, we are working with city build to provide more money from different parts of the organization. >> ok. >> that will be discussed tomorrow, how there is little

difficulty in having them be the person or the group that handles the eye and city work force. places where they're having problems in the past our regional projects with lot of relationships built over the years. it has helped us well. we have a lot of relationships that we need to nurture and they have been very useful in terms of getting permits, getting the projects done, bringing in their communities. that is the part we are trying to make sure we do not lose in the translation. >> questions, colleagues? michael? >> two quick things. you should know that the board of supervisors will be considering today a resolution

opposing the safe, clean, and reliable drinking water supply act of 2010, the water bond going on this november's ballot. do not be surprised if you read that. we have no position on that fund. the discussion about 525 golden gate and its art work, the article made it seem as if the project was still on hold or behind schedule in some way. if you recall, it was on hold for a while. it is still on schedule to be completed in early 2012. there will be a fairly expensive piece of art on the budget.

it would be huge, iconic, and it was adopted last week in one of the subcommittees. that fire wall that was discussed will cost $1.1 million. the building is going to be costing somewhere in the neighborhood of $20 million. under the building where beat -- will be a very powerful wind generation power station between the lighting and the generator. there will probably be additional installations in the lobby that will be waters statements by the same international artist. they will be fairly expensive with art throughout the building as that is the requirement. >> we have no say? >> what i found last week at the

art commission was that all of the motions say with consent and approval of whatever we are calling ourselves, the performing department. they have approve this piece of artwork. they tried to work with us on the artwork. but the final say in terms of some of it is with the commission. after joe was here we started working on the policy. we are trying to corral the money we are spending to report to you on a more regular basis. updates? >> good afternoon, commissioner. since we did not give you an update at the last meeting i thought it would take the opportunity to update you, as

well as some milestones. the water treatment plant extension pipeline system crossover project. earlier in june we advertise the two contracts for upgrade. very large peninsula operations. while i am pleased with the progress on construction activities, i have reviewed the latest statistics by the end of day. to give you an idea of a larger regional projects currently being constructed, treatment facilities are at 78%

completion. the university reservoir is that 58%. we are also working on the progression of the three contracts to the division by applying rival -- reliability projects, laying a pipe on both sides of the day as we speak. starting in number of on-site mobilization activities which are exciting. we also look at some interesting facts. so far we have left 807 -- $807 million in work, and out of that so far we spent $252

million. potentially that translates to 31% of the work being issued so far being completed. i am also very pleased with the performance of the tools we have put in place for the program. that said, we will be proceeding, commissioner, to follow up on your question regarding the independent review panel to have these audits of our capabilities. with working with program management teams we have put those in place. the goal throughout the first audit was to have it completed by the end of the year and i think it can be done. we are on track with two other key projects this summer. the first is the critical replacement project on the

pipeline system. on the environmental front we have three drafts out there where we are putting together submissions for all three, we are on track to certify all three of them by this fall. including the crystal springs plot line #2 and water plants improvements. that is all that i have. any questions? >> that you. the next item is the community aggregation of state. when the commission authorized us to negotiate a contract our choice llc back in february --

power choice llc back in february, there was additional guidance requested if commission choice was unsuccessful. today we are here to say that those negotiations have been unsuccessful. did is our proposal to reject all bids and go out for an expedited process. if you agree with that, we would put together a draft that we are working on right now, asking that you would have a joint meeting july 9 for a final version of the draft that would go out and be more explicit on some things. the last one gave a lot of leeway, which was intentional as we were under a time constraints. we said to you should try to get what the family has decided is

its optimal goal but if you do not get there, try for something else. in negotiations we have found that there are things we can depend on and things that we cannot. we have spent a lot of time in negotiations with a lot of good contract language. the proposal would be to include examples on items that could be controversial, making sure that anyone bidding would know what they would have to expect by the beginning. that would be the proposal today. the city attorney has said that the guidance can be given as verbal guidance, which was why we did not put a separate resolution on the calendar for you. i would be happy to answer any questions you might have.

>> so, there is no action item today? >> requiring commission action that s>> what about the timing? >> you probably need a 60 day turnaround. since we would be trying to include fairly straight to contract language, we expect these to be shorter you can provide power by spring of next year. october, november, in that range, to be able to get the power delivery. >> i have a question.

-- the only ones that did? >> 3 did nearly and the sizing or they would help us build capacity. two could do the entire program. the economy has gotten somewhat better. if you had asked, we would have been looking for some financial companies to be involved but we are not in the place to be doing anything. it is possible that we will have more people out there. we will also have extensive outreach to those that might be

bidders. >> is your any rethinking of the exit strategy. this is management of a power resources. is there anything close to that? >> there is, those that you would want to tell us about. there are some real benefits as opposed to going up at one time one of the head the is is that

having a bigger portfolio amounts to a better job but it means you are stuck with the whole place on day one. we will definitely be looking at the phasing in idea. in terms of construction, we still have some issues about explicit this will be in the contract. this might be a role in a process where the city might have more ownership and interest. this has to be a city owned facility. we are looking at how to split

this up in a different way. >> would this be the result of not having financial records? we are building our own strategy. corks the way that you have a long-term business is to own it your assets especially if they are renewable