obtained from the building

evaluations into the new permit tracking system. this is another area where that new system is going to be very valuable to us. on behalf of the volunteer advisory committee i'm happy to respond to questions and comments. we certainly appreciate the support we have received from the commission. president murphy: do you have any questions for mr. paxton? none. >> thank you, commissioners. president murphy: any further public comments? three minutes. >> good afternoon, commissioners. i'm heidi seek. i serve as the program director of the resilient s.f. initiative and i'm excited to be here talking about this initiative and its relationship to capss. i hope there's an opportunity to come and do a presentation about resilient s.f. because i think it is an internationally unique program looking at all of the possible ways the city and

county of san francisco as a government entity can make sure we can do ast many projects as possible. it is sponsored by the general services agent under the director of ed lee our city and the director of d.e.m. it is based on a harvard kennedy school acting in time initiative and it is a neat program. we have enjoyed working with the capss group because they have given us the data the we needed to be able to determine and assess the areas that the city and county of san francisco need to work on and projects we need to work on to implement these programs that are part of resilient s.f. it has given as you baseline for the earthquake narrow yourselves that we can build all of our plans on. baseline for the earthquake narrow yourselves that we can build all of our

plans o baseline for the earthquake narrow yourselves that we can build all of our plans on. baseline for the earthquake narrow yourselves that we can build all of our plans obaseline for the earthquake narrow yourselves that we can build all of our plans o baseline for the earthquake narrow yourselves that we can build all of our plans o baseline for the earthquake narrow yourselves that we can build all of our plans on.u baseline for the earthquake narrow yourselves that we can build all of our plans on.s baseline for the earthquake narrow yourselves that we can build all of our plans on. baseline for the earthquake narrow yourselves that we can build all of our plans oa baseline for the earthquake narrow yourselves that we can build all of our plans on. it is very important and i encourage you to adopt that extension and i can tell you more in the future. thank you. president murphy: thank you. commissioner walker: i wonder if we could put her on the agenda to present to us the program and how we can actually interface and carry forward the tasks under our purview. maybe we could put her on the agenda with your presentation. president murphy: we can do that. >> with g.s.a. is there any affiliation or connection with fe fema? >> part of the resilient s.f. is looking at improving our relationships with fema. the department of emergency management already has existing response relationships but we are looking at administratively what can we do to set the city up to make sure we can interact as fluidly and efficiently as possible with fema so it is a huge part of the work we do and the underlying motivation to

make sure we have the cash flow, the administrative issues in place, the process is in place, record keeping, economic analysis. all of that. commissioner walker: i understand we applied for a grant in advance work of an earthquake to work on issues like the soft story initiative, from fema, which would be historic because they usually only bring money in after the fact. do you know the status of that? >> we have tphnot -- our priori is just to submit the soft story retrofit to the fema hazard mitigation program which is the pre-disaster mitigation program where each jurisdiction is allowed $2 million or $3 million per project per-year. so they are prioritized for this but we have in the submitted the application yet.

commissioner walker: do we need a mandatory program -- it is not need to be? >> no, just prioritize that project and submit. president murphy: any further public comments? seeing none. commissioners? commissioner walker? commissioner walker: i want to thank a.t.c., capss, mrs. seek and the work that she has done. this is a vital step we have taken forward with the bold cooperation of the commission, i'm going to make a motion to support the extension of the capss as requested, the capps contract as requested. as it was stated, there is the report which is important, and i think that we've put enough urgency under this issue to get some closure on some of these

reports. but now it is up to us. we have the information. we have a broad group across all stakeholder groups that came together to talk about this issue, to be able to identify where we are at as a city, what steps we need to take to better prepare so we can avoid the kind of disaster that we know is coming. and i think that we, unfortunately, lost the opportunity in this last election to actually fund some of our most challenging building seismic upgrades. hopefully we can come together and find ways of funding these with the help of fema, but also we are going to come together and go to the public and actually get support for this. in the meantime, i hope that what we do is carried forward, the recommendations, including a mandatory program for our wood frame buildings which are identified and we all agree are

the biggest risks. the mandatory program is, i believe -- maybe you could talk to us about what the status of our mandatory program is because i know we have been working on it with the mayor's office. but that is one of the things that has been identified as the next step in the successful mitigation program. >> john malamut from the city attorney's office. i had a conversation with the mayor's office this morning and a program for mandatory retrofit for the wood frame soft story build some things still under consideration. it is considered as sort of in the draft stages right now but something they are still very interested in. >> is there a potential for the building department and experts in the field that we have on our code advisory group to start reviewing that process to make

recommendations to the legislative body or the mayor's office, or do we have to wait for them to act? >> uh, if there is a legislative proposal from the mayor, the way the charter is set up it is something that would come through the entire process at the b.i.c. so the code advisory committee would look at it and it would eventually come before the buildi building inspection commission. the department or commission also has the opportunity to initiate legislation themselves. so that is sort of an alternate rou route. the commission would obviously, if they were to do that, they would have to put something on their agenda. commissioner walker: exactly. president murphy: i think where the department can really help here is notifying the homeowners and property owners and get them involved. i don't see very many of them involved. granted i haven't been to a lot of the capss meetings, but what

i see in there is great people, mostly engineers and experts in the field. but we do have to get the property owners involved if we are going to have -- if we are going to take this forward. commissioner walker: we have had the small apartment owners, building owners and managers. we have had ongoing and constant representation from these organizations representing, as well as building owners themselves, at all of these conversations. so i think that -- president murphy: i don't see any of them here today. commissioner walker: well, you know, i don't know what to tell you, mel. our job is to look at the risk, which is what we have paid people to advise us about. and they have outlined those ris risks. now it is our job as people who are appointed to look at these things to carry forward mitigation efforts. if we fail to do that, it will

be on our backs. president murphy: all i'm saying commissioner walker, is we need to educate the public, both from the tenant's side and the landlord/owner's side. and i don't think we are doing enough to do that. commissioner romero: one thing we have to do is let the complete to finish its work so i want to second the motion to extend the contract to december and we know when the contracts come out that is when the work really starts which includes education and letting everybody know what are the risks and what we have to do to deal with it. president murphy: i have no problem today with letting them finish their contract. they have done a lot of work the last two or three weeks and i'm

proud of them for that. so i don't have an issue there either. commissioner hechanova, do you want to say something? vice president hechanova: i believe in being pro-active. we are coming up with a really terrific document. but we don't seem to be pro-active enough to say the next step is to really inform and provide this information to the public, much less keeping everyone engaged. but also what are the next steps to effectively do the education and outreach out there? i think that is as much the challenge in the education component to provide the public the information so they can act, responsibly act on what they need to do on the next steps. and somehow we don't seem to be

active enough at this point. president murphy: commissioner walker. commissioner walker: i want to point out that we got almost 65% of the public to support funding retrofitting soft story buildings in affordable housing units and residential hotels. unfortunately, 1% less than what we need for a two-thirds majority on this issue. i think that there's been sufficient activity around what the goals of a.t.c. are, which was to get a group of people together representing all the stakeholders. i have been to most of these meetings and i have to say there are tenant representatives, owner representatives, as well as people who are engineering experts and geologists and seismic experts who have worked on the recommendations. i think if people have read the reports that we have already been given, there are clear

recommendations especially about those issues like wood frame soft story buildings that are three stories and five units and more that we have identified and agreed upon that there is a huge risk. so, my suggestion -- and i know what is on the agenda is basically extending this to get the contract under way, is that we also realize the urgency within the reports. and if you haven't read them i encourage you to read them. but we need to move on them. and whether it is a mandatory program or just a letter out to building owners saying you are in a possible problem building and give us back a report. if we fail to carry forward the urgency of this issue and implement some sort of response, i think that it will be a failure. i want to move to extend the contract as requested.

and i will be asking to put some action items on our agenda to move this forward. president murphy: we have a motion and second. >> all in favor. >> aye. >> opposed. it carries unanimously. item number seven commissioner's questions and matters. 7-a is inquiries to staff. president murphy: commissioner walker. commissioner walker: yes, i would like to put an agenda item on to actually look at a mandatory program and what is being looked at by the mayor's office and see if there is an interest from the commission to have our code advisory committee take a look at things and make suggestions back to us.

president murphy: commissioners? commissioner walker: also, an update on the notification of ab-35. >> we have continued that so we will bring it back. commissioner walker: perfect. >> any public comment on that item number 7-a? president murphy: seeing none. >> 7-b, future meetings and agendas. next meeting is scheduled for december 15. we have a litigation committee meeting on november 30. president murphy: ok. >> we definitely need to have a subcommittee meeting on the appointmen appointments. i have been trying to get a hold of you guys. we evenly have four applications but we need to reappoint. commissioner walker: could you do an e-mail to the commissioners as to the openings and maybe we can help get people to apply? >> we have been extending it and extending it and some have gone past 60 days of when they should

have been appointed. president murphy: you have been too busy to notice. commissioner walker: can you just do an e-mail about what the actual vacancies are? >> yes. but time is of the essence. president murphy: commissioner hechanova you chair that committee. vice president hechanova: yes. >> any public comment? seeing none. item eight, adjournment. vice president hechanova: is there potentially the joint meeting between both -- >> yes, i sent out an e-mail changed to january. so, as soon as i have any information i will get it to you so that you will be available for the dates. president murphy: motion to adjourn. >> second.supervisor avalos: go.

welcome to a budget and finance committee. my name is john ablow. we are joined -- avalos. we are joined by ross mirkarimi and sean elsbernd. mr. kirk, please go ahead with the announcements. >> [clerk announcements] supervisor avalos: item #one please.

-- 1 please. >> item 1. resolution fixing prevailing wage rates for: (1) workers performing work under city contracts for public work and improvement; (2) workers performing work under city contracts for janitorial services; (3) workers performing work in public off-street parking lots, garages, or storage facilities for automobiles on property owned or leased by the city; (4) workers engaged in theatrical or technical services for shows on property owned by the city; (5) workers performing moving services under city contracts at facilities owned or leased by the city; and (6) workers engaged in the hauling of solid waste generated by the city in the course of city operations, pursuant to a contract with the city. supervisor avalos: thank you. representative from the department? >> good morning, supervisors. this is the annual setting of the prevailing wages for the

crafts of labour that will be done -- performed for the city. this is in accordance of charter section 80.7, and various administrative sections -- code sections. supervisor avalos: thank you. i recognize there are a number of contracts that were referred to which included prevailing wages. my main question is, the wages become different as those contracts changed here every year -- year after year. that is what we provide the prevailing wage as? >> we provide them as mou's, the kind of labor, as well as the labor determinations as given by the department of industrial regulations. supervisor avalos: thank you. mr. rose, if you could share

your report. >> the prevailing wage rates are set forward in our report. our recommendation is a policy matter for the board of supervisors. supervisor avalos: thank you for your presentation. we can go on to public comment. is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. okay, without objection. to the full board with recommendations. mr. young, please call item no. 2. >> item 2. resolution approving the issuance of water revenue bonds and water revenue refunding bonds in an aggregate principal amount not to exceed $600,000,000 to be issued by the public utilities commission of the city and county of san francisco; affirming covenants contained in the indenture pursuant to which the water revenue bonds are issued; authorizing the taking of appropriate actions in connection therewith; and related matters. supervisor avalos: thank you.

we have various representatives from the puc. >> tottery strong, general manager, cfo. we are here as part of our quarterly bond sale. since we last visited you, we sold bonds in may for the sewer system, in may -- june for the water supply system, again in july for the water supply system. every time we come before you for the file and record as well as reviewed by the public utilities commission, is about 700 pages of bonding and funding documents. this is your high-level review in the brief, in addition to the documents that are on file with the clerk and commission. we have issued $2.2 billion worth of bonds over the past couple of years, specifically for the water improvement system plan. that, along with sorbonne sales,

and sales for the new headquarters building, we have sales of $400 million of estimated debt service costs for ratepayers for the next 30 years. we have done that because we have been fortunate beneficiaries of what has been record low borrowing rates in the u.s. economy for tax-exempt and build america bond financing. we come to you today because the american recovery and reinvestment act is scheduled to sunset the bill the american bonds. dependent upon how congress acts or does or does not renew the program, a window could potentially close for municipal issuers on december 31. we would like to be able to capture one more quarter's worth of savings in order to do that. for today, it is a similar size

to our other quarterly sales, up boards of $600 million for the water system improvement program. we have gone to the sfpuc commission and got approval last week. we come before you this week. the next week there is a resolution. we are continuing our plan of content -- competitive bond sales. bidders are allowed to bid on our bonds. if we sell a combination of tax- exempt and taxable bonds. they have to buy everything or nothing, so they have to put in their best and lowest bid from the outset. we do not do that on the electronic markets, so you can watch it in real-time bidding. the closing is slated for the middle of december. the hybrid structure includes tax exempt and build america bonds. we looked at the price of those together to make sure the combination of those two bonds are the lowest cost to

ratepayers to lock in the cheapest cost and cheapest financing we can. funding for the water improve the system program, they are long-term assets that are part of the program. we are looking at 40-year debt. to give you a flavor, we have been selling bonds recently, july and june, getting 3.7% total interest cost. that is 3.7% effectively over 30-year financing. this gives you a frame of reference for every percentage we are lower than the 5% model, which is a prudent planning model for a double a highly rated utility, such as the public utility commission, here in san francisco. for every% under 5, that is $23 million in savings for every $100 million for road. that savings occurs over 30 years. as much as we can sell now at

the lowest rate, the better for ratepayers. the financing overview also included in your report and summarized in the budget analyst report, financing authority is an under proposition e. this is consistent with your earlier ordinance reviewed in the past. the comptroller continues to keep any budgetary appropriations on controllers reserves until funding is actually in the treasury to spend. we will be capturing what we think might be the last bill the american bond that ms. paley's -- ms. allen is can claim through congress. -- municipalities can claim through congress. the documents were pretty lengthy, but in summary, about $0.83 of each dollar goes to

construction costs and work. again, we fund capital interests for three years on average. we are also required to fund in- cash debt reserves, and that is the case since 2008. our credit now is basically equal to or higher than most assuredly companies and bond insurers. when we offer bond buyers the potential to have the option to purchase insurance, they had not done that because of sfpuc's high credit rating. the forms of agreement are the usual ones. there are 10 of them primarily. the commission resolution, preliminary official statement. we would then make updates on that based on our financial statement. the 10th, 11th, and potentially

12th indenture, every time we have to issue bonds. the official notice of sale, intent to sail, bond purchase agreements in the event that the markets turned south and then we have to renegotiate a sale. we do not anticipate that. company agreements. escrow agreements. that is the key highlights. with that, i am happy to answer any questions. i would like to thank the budget analyst for their report. >supervisor avalos: great. thank you. it is great to hear the work of the puc, especially on maintaining and achieving a high credit rating. it goes very far with so many projects, but with the others coming up as well. mr. rose, if you could share with us your report. >> mr.