this is an incredibly beautiful outdoor room. we did a bit of reverse engineering once we knew we wanted to work here. which animals live here? the great blue heron jumped out at us. we walked around, and quickly, you get into another pace. you slow down, leave the city behind you. you can feel the wind and the breeze. in our increasingly frenetic, fast-paced, connected life, the chance to be of here and slow down a bit was part of the agenda. as part of the installation, it was suggested that this would be deliberately not mowed because it would allow the sustaining of insects, plants, that would graduate -- that would gravitate to the area.

>> that is right. i think you quickly notice that. >> thank you for being here. presidio habitat is an exhibition at the presidio trust. it will be in san francisco through may 2011. we hope you will come out to experience this amazing exhibition and great natural treasure. >> to learn more about the other habitats installations in the presidio, visit >> chairperson mirkarimi: good afternoon. welcome to the first meeting of 2010. happy new year to lafco and the san francisco public utilities

commission. i'm supervisor mirkarimi, commissioner and chair of lafco. i would like to recognize the president of the p.u.c. commission, president crowley. i would like to go ahead and get started with the meeting. madam clerk would you please call roll call for lafco and i believe president crowley will do so for the p.u.c. commissioners. >> commissioner campos. >> present. >> commissioner dufty. dufty absent. commissioner avalos. >> here. >> avalos here, commissioner schmeltzer. schmeltzer absent. chairperson mirkarimi. >> present. >> we do have a quorum. president crowley: michael. present. >> commissioner ellis. >> here. >> commissioner moran. here. >> commissioner caen is excused today due to illness. >> thank you, michael.

coich very good. next item, please. >> excuse me, i didn't hear my name on the roll call. >> commissioner dufty. >> here. >> next item please. >> opening remarks. item number three, opening remarks and discussion of expectations for this joint meeting. chairperson mirkarimi: i also noticed that there is not a line item for the minutes on this agenda from last meeting. minute approval is usually routine. >> jayson fried, lafco staff. we didn't include this on this agenda partly because it was a joint meeting and we didn't want to go through the whole process. we will have the minutes at the next regular meeting in february. chairperson mirkarimi: let's make sure that always minutes have to be established on agendas and have to be approved, joint or not. >> ok. chairperson mirkarimi: opening

remarks, i'll just start that this is an exciting time and juncture for the city and county of san francisco to be moving forward in rapid fashion on the implementation of our pursuit of becoming an energy and a power aggregator. over the last six months, there has been the commitment by both the san francisco public utilities commission and by staff and by lafco and members of the board of supervisors here in san francisco to do everything we can to implement in 2010 our design and application to become an energy aggregator. i have to say over the last six months, even compared to the previous 18 months, great progress has been made. we are excited about the prospect of what we're able to implement. i would will have to say that coming out of about a month ago from the copenhagen climate change conferences and a bit of

disparity consequences people felt because of what was not accomplished in copenhagen. the fallback to then both national government to make up for that, which is unlikely, considering what debates are occurring in washington even falls back further to state governments and local governments. this is a time when cities and counties like san francisco and other counties like marchin who we'll hear from a little later in our meeting here today and other california counties and obviously in our midst who are pursuing aggressive and i think innovative goals in supplementing their energy portfolio with renewables and the kind of conservation that private utilities have been sluggish to implement. i believe because of the fine work of the p.u.c. in concert with lafco, staff and commissioners, we actually are sort of on the right trajectory. these next several months, as

we'll hear today, are going to be critical to the ability of whether this thing really launches or not. if so, i think it's not just about san francisco and it's not just about marchin, but it's sending a -- marin, but it's sending a strong message to california and washington. we are answering the questions of how do we wean ourselves from foreign oil, how do we wean ourselves from fossil fuel dependency and how do we take our own energy future in our own hands while co-existing with other utilities who might not have the same objectives as we do. this is a complex process. obviously, an intricate one, one that may be very slow. i'm proud at the time moment where we are right now. we are nowhere near the completion that we need to be and that's why these next several months will be critical. i just want to say thank you to everybody who has had a role in this, major, minor, and to the advocates who are making sure that the trains do tomorrow in on time frame time.

i want to say thank you to the city attorney's office because this is requiring the martialed resources to come together to do what has never been done before in san francisco. president crowley. president crowley: thank you. i would like to as well send my thanks to my -- to staff and colleagues who have taken this issue to heart and for the witness of our electoral out there who understands it's a very big issue and that we have taken to heart to represent them in the best way we can with bringing them the best and newest technologies that we can roll out to them as soon as possible and affordable. so with that, i thank you and my colleagues and staff that works very hard. chairperson mirkarimi: i would like to take this opportunity to recognize the general manager of the p.u.c. to see if mr. herrington would like to offer any comments? >> thank you, chair mirkarimi,

ed harrington from the p.u.c. i'm happy to be here on behalf the p.u.c. staff and appreciate the leadership of this group collectively and working through the process for c.c.a. we are working hard to make sure that we bring cleanpower s.f. to san francisco. i agree with you that we have sped this up and it is doing good. it is moving along at a nice clip, a responsible one, but that is moving appropriately forward. as the providers of water and wastewater services in san francisco, we are acutely aware of the effects of greenhouse gases and climate change and going towards renewable in san francisco is absolutely where we want to be. this moves forward in this way like it should, this will be something that we'll all be very proud of as we look back on what we do. with me is barbara hale and mike campbell who is charge of the program. mike will go through the process like we have done recently with the responses and walk you through that. chairperson mirkarimi: thank

you, mr. harrington, i appreciate the process we have made and you're right, the collaboration has been extraordinary over the last six months. i would like to take an opportunity, it's important that we hear from lafco staff, mr. fried and to introduce to you another member of our team. >> thank you very much, chair. jason freed, lafco staff. i wanted to introduce a new staff person. carolyn tang who is our new community development assistant. she will be bringing to lafco a lot of prior experience. prior to this, she had been working for r.m. design group which is a lot of planning. she did a lot of community outreach for them around the planning process when they were presenting what they wanted to build. she has a lot of san francisco-specific experience. she is a member of spur and sfbc as well as a volunteer with the green difference, s.f. green drinks is a very proud

resident of district eight. we're proud to have her as a member of this organization. chairperson mirkarimi: and if i'm not mistaken, multilingual as well? >> she speaks mandarin and a of spanish. chairperson mirkarimi: very good. colleagues, any questions on these particular items? seeing none, public comment, please, if anyone would like to weigh in on this particular item. seeing none, public comment is closed. we'll file that and please read items number four and five together. >> item number four. update on status of request for proposals and presentation on responses received to conduct the cleanpower s.f. item number five, next steps in c.c.a. program process. chairperson mirkarimi: mr. campbell, welcome. >> thank you. good afternoon, commissioners, president crowley, chairman mirkarimi, my name is mike campbell, i'm the director of cleanpower s.f. which is san francisco's community choice

aggregation program that is managed by the sfpuc's power enterprise. just to start, i'm really excited to echo the comments of the chair and the president and general manager harrington that our first meeting in 2010 that we have so much progress to report. in my update today, i'm going to discuss where we are in the process of selecting a supplier for the c.c.a. services as well as the next steps for the program in 2010. i am pleased to introduce power choice, which barring any substantive protest, power choice received the most points for its propofol by the expert panel that was convened to review the response to do so our r.f.p. after i provide my status update, if it still pleases the chairman and the president, representative from power choice is on hand here today to give a brief overview of their propofol.

-- propose al. i want to take a moment to summarize the r.f.p. on november 5 of last year. the r.f.p. that was in the introductory remarks was made and invited firms for three major tasks. the r.f.p. was designed to be flexible and allowed any entities to go on all task areas. i'll go through them briefly. the first is electric procurement and load management. in support, that's the necessary services to be insure the appropriate number of power is purchased and injected into the grid and meet the needs of customers. the second is sell jment of renewable resources and the third is various customer account services to track clean power membership and consumption and those types of things that are needed to operate cleanpower s.f.

the r.f.p. and the written scoring in the r.f.p. emphasized the city's preference for a single entity. it clearly expressed the city's policy goals and put all respondents on note that the response that most clearly matched the city's goals should receive the highest scores. i'll go into those scores very briefly now. the city's goals included targets for renewable component of the overall energy portfolio with a specific target of 51% renewable energy as defined by the state rules to be delivered to cleanpower s.f. customers by 2017. the r.f.p. has specific targets for the development of renewable energy and a clear preference for renewable energy in san francisco and in new orleans california. there were -- northern california. there were goals for demand response and demanding for managing the demand side of the

cleanpower s.f. portfolio. we're looking for rates that are competitive with the incumbent utility. our r.f.p. was widely advertised and was issued on november 5. we received five responses on december 29. and as is the city's contracting process, we convened an expert panel to review the written proposals and i would just like to note my appreciation for the assistance of ms. miller who provided a helping hand in helping me do outreach to potential panelists. because of that collaboration, we had a very strong panel. their background were in areas of renewable energy procurement and for municipal utilities, we had folks with background of financing energy type of projects. we had a senior cpuc person

with a strong background in consumer and environmental advocacy as well as specific -- people with specific knowledge about c.c.a. policy. the panel provided its scores to the sfpuc's contract time earlier this week and the preliminary scores were published on the website on wednesday. following the published ranking there is a five-day protest period. that protest period will expire january 27. that's this upcoming wednesday. we made a lot of progress in the last year, but much of the hard work is ahead of us. once this protest period is closed, we shall seek official authorization from sfpuc to begin official negotiations of the highest ranked proposer. in the near term, by team will begin to finalize our implementation plan. this is a document that is required under the enabling legislation, a.b. 117 that needs to be filed with the cpuc

prior to serving any customers. once it's filed, the cpuc has within that statue, they have 90 days to review the filed implementation plan. the cpuc was able to approve a plan for san joaquin within that time frame and i don't anticipate anything different in our case. prior to filing the plan, we need p.u.c. approval and the board of supervisors before we make that filing. when we have a final contract, we will also need to come back to this body and the board of supervisors, i believe for final approval. in parallel with the negotiation process that will shortly be getting underway and in parallel along with the implementation plan, we will work with pg&e on the term of the service agreement. we need to address to make sure

the data transfers and the mapping of customer accounts is handled appropriately in order to have cleanpower s.f. move forward. we also will need to prepare for the date when we begin serving customers. enabling c.c.a. legislation has established c.c.a. as an opt-out program which means that upon the date that cleanpower s.f. is ready to begin serving customers, customers do not need to take action in order to begin receiving cleaner energy. we participate that pg&e will engage in an aggressive marketing campaign and to encourage our customers to opt out. a letter agenda item, i believe the city attorney's office is here to describe a regulatory activity that is underway to try to reduce the ability of the incumbent utility to actively market against c.c.a. i won't get into that here. i did want to note that we are

also planning our own informational outreach design to counter any misinformation that maybe sent from pg&e that we might expect to see. if you look at the timeline in the memo that was provided to the commissioner packets, you also see that we would be issuing opt-out notices prior to the automatic enrollment period as required by state law that created c.c.a. that generally concludes my status update. before i introduce a member from power choice who is here today, now might be an appropriate time to answer questions should there be from this body. chairperson mirkarimi: colleagues, any question, commissioners? this next four months is going to require, not sequential, but literally concurrent multitasking and it's going to ready need to be focused so there are no milk cups at all

in the process. before in the last several years, it's been very sequential and incremental. that, you know, is not now -- so maybe you can speak to that. based on the timeline itself here, it doesn't necessarily speak with regard to steps, but these are happenings that are occurring at the same time. >> that's an excellent clarification, chairman. i appreciate that. these are definitely activities going on in parallel. i'm pleased to say that we have excellent coordination between our staff and lafco. my team has staffed up. i have three full-time people and we have already begun some of the work in anticipation for what we need to be doing now because we knew it was going to be all hands on deck type of activity. for example, we have a skeleton draft -- we have drafted the implementation plan that we had to file prior to receiving any responses with place holders knowing we need to get input from what responses we actually received just to try to make

sure that everything we can do to speed the process along would be -- could and would be done. chairperson mirkarimi: very good. any questions? and just to remind colleagues who are visiting the chambers -- commissioner ellis. commissioner ellis: just out of curiosity, did most of the respondents respond to all three sections of the r.s.p. or did they select separate components? >> as the protest period is still outstanding, i think i probably would not want to characterize the responses and stick to the rank order at this point if that's acceptable. commissioner ellis: if it must be, yes. chairperson mirkarimi: it's a bit school marnish. because we have to wait based on the rule. >> that's, unfortunately, that's my understanding. that's the safest route. i feel we should be as prudent

as we can. chairperson mirkarimi: i appreciate the code. commissioner dufty. supervisor dufty: -- yes, commissioner dufty is anxious to hear from the vender. >> very good. thank you. so power choice -- to partially answer your question, commissioner ellis, i can say here today that power choice provided a comprehensive proposal in response to our r.f.p. and he is going to give a brief overview over his organization's background and their overall approach. i want to express my appreciation to power choice in making him available today. they did only hear about their ranking on wednesday and yet here they are this afternoon to meet with both commissions and i very much appreciate that.

chairperson mirkarimi: welcome. >> chairman, president, and commissioners, i also want to introduce my colleague current palmerton here. we're from power choice. we're very happy that we were invited here today. thank you for giving us the opportunity to introduce our firm and our approach to fulfilling the needs of san francisco. as i said we're very excited to be here. as soon as these slides come up, we should be able to follow along in the presentation. here we go. power choice brings a track record of operational excellence. we have proven capabilities in an array of regulatory environments. we have 44,000 mega what's load of experience which is larger than pg&e, southern california

edison and san diego gas and electric combined. we have an operational model that has been proven successful in pg&e territory and in northern california for over the last five years. additionally we're very thankful that san francisco has ranked power choice first. we believe that power choice provides the highest community benefits to san francisco. we intend to meet san francisco's renewable energy goals. we will provide local jobs and investment opportunities. we also plan to locate our headquarters here in downtown san francisco. additionally, we intend to make extensive outreach to l.b.e. and m.b.e. enterprises here in the city. chairperson mirkarimi: i have asked our clerk if she can contact sfgtv to get a close-up of what you're showing.

please continue for those watching at home as well. >> as mentioned, power choice provided a comprehensive proposal for all three tasks. task one was full requirements energy supply and renewable energy. power choice will be procuring energy from resources in the market to meet the 40% renewable and demand side goals by 2014 as well as the 51% renewable r.p.s. compliant, that is, goals by 2017. in task two, power choice brings the wetth and breadth of experience in renewable development with several billion dollars of experience here in san francisco and around the world. finally, in customer care, we have outlined a strategy that enables us to have seamless integration of back office capabilities from migration of customer accounts from pg&e to cleanpower s.f.

finally, in closing, it's your choice, it's your power, and we are power choice. we provide world-class experience. we are looking forward to meeting san francisco's renewable goals and we are supporting local jobs and local investment, thank you. chairperson mirkarimi: thank you for the general overview. colleagues, any questions for power choice, l.l.c.? commissioner dufty. supervisor dufty: thanks. welcome, thank you, we're glad that there has been a robust competition with five respondents. i think that's beneficial to the city and i have a question of one or two points which is always encouraging. you have done very well. in the last chart, you talked about your choice, your power,

and you talked about local workforce and i think that is really on the front on a lot of our minds. i know that the p.u.c. has been very responsive and the go solar program has done a lot of hiring from san francisco and to give individuals the opportunity to work in this field. so i recognize it's in an early stage, but i would be interested in hearing you talk a bit more in-depth about what your proposal laid out in terms of working. then to get a commitment going forward that you would avail yourself of the opportunity to work with p.u.c. staff and there are a number of key people that work in city government around workforce, city build, other initiatives that we have at the city to make a real meaningful push, because i think that this will help distinguish us as you're not naive coming into this. we're certainly going to face some difficulties going forward

in unfolding the program. and having a program that really is robust in putting san franciscans to work in our local power choice i think will be important. >> absolutely. i totally agree with those comments. i definitely look forward to working with the city and the staff in rolling out this program. i'm a 10-year resident of san francisco. i couldn't be more pleased to be up here today with the opportunity to serve the city. so i'm very sensitive to the needs of the city to focus on local hiring program and the hiring -- and using the resources of san francisco. in crafting our response, in pulling together over 10 companies to address all of the needs of san francisco's program, my outreach was directly to firms that have proven track record of success here in san francisco and working with the state and the

sfpuc on various projects in renewables and in energy in general. so in crafting that response, i was definitely giving that a lot of forethought and that was exactly what i was shooting for, too, is let's make sure that all of the resources that we draw here, both here in san francisco and globally, are used to maximum benefit for the city. supervisor dufty: and i should also have mentioned the human rights commission here which can help facilitate other businesses, local disadvantaged, women-owned businesss here in addition to the once you bring to the table. thank you. >> we're looking forward to getting through the certification process as soon as possible. supervisor dufty: thank you. chairperson mirkarimi: thank you commissioner dufty. commissioner vietor. commissioner vietor: i have a question about the projects you have already developed and talk about some of the bigger ones are. you said in san francisco, billions of dollars developed

in san francisco and around the world. if you could talk about san francisco and maybe globally as well and maybe a little bit about, i don't know if i'm overruled again, but some of the ideas for additional projects that you might bring online. >> so in our response, five or six of our subcontractors are developers that have local and global experience. speaking locally, real energy l.l.c. is a developer that has successfully developed and partnered with clients such as calpers, california department of resources to develop on top of downtown office properties. so when, in working with them, i definitely want to draw upon their expertise in working within the city and the