we of also included certain other city came to -- city property. of the aggregate of the key is not sufficient to support the debt. and we expect to have approval of the statement following the issuance and that point we will support an additional property. we have a reserve fund. these are all estimates. some might need to fund a reserve fund. this is a conservative estimate that allows you to support the

program. with that, i would be happy to answer any questions. >> tables one and two on pages five and seven of our report show the funding sources and uses. the total estimate a cost is $258 million. regarding the debt service based on an annual interest rate of 8%. total debt service of $82.1 million including interest payments of $46.9 million and

the principle of about $35.1 million. on page 9 of our report, the real estate division had not finalized the estimated to value of the two police stations which would serve as collateral. not all of the funding has been secured specifically, there is a question on a $20 million fund which has not yet been rewarded. for those reasons, we have considered approval to be a policy matter.

the other items we consider to be a policy matter for the board. >> thank you very much, mr. rose. >> i should have added that we are assuming this should be taxable debt. in working with our lawyers, this might be tax exempt. >> thank you very much. item number 11 is a confirmation. this is a program $38 million. let's open this up for public comment.

>> i have been given just two minutes and i'm the only speaker. we have been following these for a long time. let's focus on what is there to be stated and not make statements that the housing which was built by the department of defense, if we go to the jon stewart co., there are days when somebody got fired from fannie mae and they made a lot of money and someone is not respected. what he supervisors should do it is that you did not want

property managers to be involved in huge development where they get millions of dollars from the state. they had a lot of money and john stuart employs over 1000 employees. what we need in the bay view is for local people to build those houses. this would have been the opportune time for -- to come and speak on behalf of the constituents. this is an area where over 50% are unemployed. people i've been promised this, that, and the other. nothing is happening. we need you to put this back up.

is there any other member of the public that would like to comment? a motion to move forward with recommendation in that passes without objection. that is our agenda, is that correct? >> we are adjourned.

. >> my name is mark tieman and i'm senior councilor at pet camp, san francisco, california. we dispose of a lot of carbon-based material here, dog poop, and the more we can turn that into something viable, the better off we are. in san francisco there's more dogs than children. finding a viable use for dog poop. >> proenvironmental policies, that's a way to win hearts and minds.

>> roll call, please. >> president crowly. >> present. >> vice president vietor. >> here. >> commissioner kaen. we have a core yum. mr. president, the next item is item three. public comment. pems of the public may address commission on the matters within the commission's jurisdiction but not on today's agenda. i believe we have one speaker card. >> the floor is yours, sir. >> good morning, commissioners. >> i am am here to address the d.h.s. to the community. we need this on the back side. wí p on tuesday one of the

supervisors -- even though it has been explained to you in various ways, your commissioners with intent favored project labor agreements where the unions could be at the table. i have always been with the union, and i believe in people getting fair wages. but the work force link to city bill, and michael is no longer there, the whole place has been -- the whole -- mayor's office of economic development and work force is totally under a different charge. but we do not want to pity union 4:g and that's not fair.

you commissioners can be compassionate, fair by ++ can b reached, but if anybody is involved with the agreements with the unions, especially focus project agreements. they are very tedious. take a long time. but that type of attention hasn't been given to work force. generally speaking in very simplistic -- a very simplistic way we have city bills that's producing some skilled workers within six weeks orñi 12 weeks. very general in nature. and then on the other side we

have five, six, seven 8,000 skilled workers who haven't worked for two, three years. the manager and i'm referring to ed harrington, mr. crowley, with your experience, other commissioners who have been involved over the years the time has come now that the mayor is going to move somewhere for you to take charge and do the right thing and serve the constituents. thank you very much. president crowley: thank you, mr. decosta. next item. hang on a second. [inaudible]

anything other further comments? hearing and seeing none. next item. >> following matters on the consent calendar. all matters considered -- pardon me. i'm sorry. pardon me. number four, discussion and possible action to suspend rule 6 of the rules of order of the san francisco public utilities commission to allow for the election of officers at a duly noticed meeting other than the first regular meeting after the first day of august. commissioners, this would simply allow the commissioners to, add their -- simple majority vote by motion, to sprules and -- suspend the rules and designate any particular meeting date as appropriate time to elect officers other than those set in the rules of order. president crowley: ok. commissioner caen: we wouldn't need to pick a date right now. we could continue -- could this

item be continued? >> month to month. or to a particular meeting if you wish to. commissioner caen: or meeting to meeting, right? >> that is true. you could continue it to the same, for example, the first regular meeting in november. it would be preferable under the rules to schedule elections at regular meetings if possible. commissioner caen: i would move to continue this item to the call of the chair. to the next meeting. vice president vietor: i think we should move it to the next meeting. president crowley: any -- commissioner caen: do we need a motion? president crowley: it's the next item. that's correct. all right. the motion has been moved. it's been seconded. all those in favor of suspending rule 6 and move it to the next meeting? before we do that, counsel advises me to open this up to public comment. >> no one submitted speaker

cards on this item. president crowley: seeing and hearing none, thank you, counsel, all those in favor of the motion please signify by saying aye. opposed? the aye vs. it. so ordered. next item. >> now, mr. president, i believe we are at the consent calendar. all matters consistent -- within our consent calendar are considered routine by the san francisco public utilities commission and will be acted upon by a single vote of the commission. a, approved plans and specifications and award water enterprise program funded contract wd-24308 inch ductile iron main installation to the lowest responsible bidder. b, approve plans and specification that is award water enterprise, water programmed contract wd-2619, ductile iron main installation to the lowest qualified responsible and responsive bidder. c, approve plans and specifications and award wastewater enterprise renewal and replacement program funded contract ww-481, to the lowest

qualified responsible and responsive bidder. and item d, authorize the san francisco public utilities commission general manager to amend and extendf;é cs-975 liquidity facility with jp morgan chase bank n.a., u.s. national bank association. president crowley: ok, thank commissioner caen: mr. president, i would like mr. eastrom to comment on 5-d. iñ before we do that could i ask for a motion on items 5. -a through c, and we'll pull out d? commissioner caen: i wasn't pulling it out. president crowley: it's good information. ok. ó

>> we have been working very hard at the s.s.u. c in particular to renegotiate the liquidities facility. a year ago when we needed this, prices in the marketplace were much higher. so we have been able to f/çñi results in savings over the current contract of $1.6ñ will be savings to the rate payors ultimately. thank you for consideration and for approving it. commissioner caen: i would like to move. the consent agenda. president crowley: any public comment on items 5-a through d? and hearing the good news. i thank you, my colleague, and for having that pointed out. i will entertain a motion to accept a through d and you made the motion. seconded appropriately. all those in favor please signify by saying aye. opposed. the aye vs. it. next item, michael. >> the next item will be closed

session. is there anyone who would like to make a comment on any item in the closed session? the next item would be to seek a motion from the commissioners to invoke the attorney-client privilege and move into closed session. after the commissioners have made that motion, if you would allow me to read the item. president crowley: absolutely. commissioner caen: so moved. president crowley: second? it's been moved and second. all those in favor to move into closed session please signify by saying aye. opposed? ayes have it. >> the item is conference of legal counsel anticipated litigation as defendant. we will now go into a closed session if the public would clear the room.

commissioner crowley: could i please remind everyone to turn off cell phone and pagers? i would like to welcome everyone thaback. i will entertain a motion whether to disclose what was . it has been moved and seconded

not to disclose. the ayes have it. we're now moving on to regular business. on the items that we discussed today, there was no action takenú÷ and briefing given. with that, there is nothing to disclose. >> the next item is the beginning of regular business, discussion to approve the enterprise water program. crystal springs pipeline number to replace the project$kó -- #to replacement project, adopt the required2sms california environmental finding including the considerations and mitigation and a monitoring and reporting program, and authorizing the general manager to implement program subject to

supervisors approval where required including the following action. a, negotiate the agreement with the cities and towns with respect to the construction activities in each jurisdiction. $qtb, negotiate and obtain frome department of transportation from the cities and counties and pacific gas and electric company real-estate licenses, other permits or agreements with respect to project construction and improvement of the entities. they will obtain any lease or

agreement necessary and negotiate with owners or imn the sfpuc right-of-way and other project-related agreements as necessary. necessary. s/(to/içm zobtain permits and approvals or enter into agreements with state, federal, and local governments not limited to caltrans, army corps of engineers, u.s. fish and wildlife marine fisheries service, the california department of game, the water control board, the sanitary district, and bay area quality management district and enter into agreements with third parties as necessary to implement conditions of the permits or approvals. e, in compliance with government code, undertake the process for

possible acquisition for excavating and combined purchase not to exceed $250,000 for temporary interest in real property located in san mateo county as follows. the list is printed of the properties. f, negotiate and execute real estat" agreements and licenses, agreements, and issuances related to the city right-of-way rights and habitat mitigation sites as!p necessary for the project. finally, notwithstanding the authority granted to the general manager by this resolution, the general manager is not authorized to dispose of real property in any managener withot approval. implementation and action will include construction bids, there will be commission approval to award contracts.

>> good morning, commissioner. special meeting. is significant thing for us seeking approval. i want to give a quick overview. the project spans 19 miles from the crystal springs dam to the university amount reservoir in the city. i think you got a copy of the amount i have here. the 19 miles are shown on the blue line. this is a pipeline built in the early 1900's. we are going to be rehabilitating approximately five of the 19 miles. in some areas, we will be replacing the line. in other areas, we will be

sliplining to minimize traffic impact. as part of the project, we will also be retrofitting the pier bridges at different locations. we are also going to be installing a cathodic protection system for erosion control. this will increase the delivery and ability of the project. he will also provide additional operational flexibility and maintenance. i wanted to point out that we fully analyzed three alternatives in addition to the proposed project. we're asking you to approve alternative two. it is called the modified bridge design alternative. this was foundopk>kviñkvvs/tokñe superior alternative. it is essentially identical to the proposed project, except that includes a modified design

for the retrofit of piers to support the line when we cross san mateo creek. this is a $71 million project. if you approve it today, we will we woulìñi complete constructin in march of 2013. traffic was a big issue for us, trying to do work on el camino real and the peninsula. it will be challenging. we have a comprehensive plan and have been working closely with caltrans. we're confident we will minimize the impact. you should realize we will be doing work in 10 different jurisdictions. ñru÷ifinalizing moa's with eachf the jurisdictions prior to the construction. if you have any questions