>> commissioner, i would like to also think the city attorney's office has been a tremendous asset to my tenure as commission secretary. also to follow up on dr. marshall's comment, we will be dark on the 22nd. this this thanksgiving week. no commission meeting next week. >> thank you, everyone. any other public comment? >> that is when said the 24th. i beg your pardon. >> my comment is on the shoe law. transparency is very important.

the officers' conduct should be public. if i go in front of a judge, my conduct is public. an officer is not public. this lot needs to be overturned in my honest opinion. thank you. >> is there any other public comment? >> hearing none, next item. >> item four is all the items pertaining to closed session which is items 6. this includes public comment on whether to go into closed session. >> is to any public comment regarding closed session? >> hearing none, please call the next session. >> this is the vote on whether to go into closed session. >> seconded. >> we will now move into closed session regarding disciplinary matters. thank you.

>> it is 9:42 p.m. we are moving out of closed session and moving to item seven. i want to know for the record the presence of commissioners slaughter, marshall, dejesus, and kinglsey. we can move to item seven with your indulgence, a vote to elect whether to disclose any or all of the discussion held in closed session. >> i move that we do not disclose. >> any public comment? >> lastly, moving to item 8, adjournment. >> so moved.

>> thank you. >> thank you very much. thank you lieutenant riley. >> a good meeting, everybody. >> i have a feeling i will not be saying it for the last time. >> i work with the department of environment and we are recycling oil. thank you. we can go into a refinery and we

can use it again. they do oil changes and sell it anyway, so now they know when a ticket to a. hal>> to you have something you want to get rid of? >> why throw it away when you can reuse it? >> it can be filtered out and used for other products. >> [speaking spanish] >> it is going to be a good thing for us to take used motor oil from customers. we have a 75-gallon tank that we

used and we have someone take it from here to recycle. >> so far, we have 35 people. we have collected 78 gallons, if not more. these are other locations that you can go. it is absolutely free. you just need to have the location open. you are set to go. supervisor avalos: good morning. 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. chairman, members of the committee, i would point out on page five of the report the estimated debt service for this issuance is $1.3 billion, that includes the $600 million of subject principal and $720,000 -- $720 million of interest,

average annual debt service over a 40-year period, $42.2 million. we recommend you approve this resolution. supervisor avalos: thank you. supervisor mirkarimi? supervisor mirkarimi: just to echo, a good job. supervisor avalos: let's go on to public comment. seeing none, public comment is closed. >> i believe there is an amendment that needs to be posed? supervisor avalos: on our desk we have an amendment on the whole. >> on page 3 row 10, there was a clarification to make a number, the digit 6 instead of five. only wrote 10, page 3, change

that digit to make it consistent. i think that is the only edit. i do see one additional edit provided by the city attorney's office. it is again to provide consistency with our other financing documents. on page 6, provided on rows 6 through 8, proposition p requirements to cover said cost with oversight committees, nothing shall preclude the commission from paying the fees associated with oversight costs of the revenue bonds committee from any legally available funds other than the commission.

this is consistent policy. we would plan to and would always plan to fully fund what is the least cost funding source for the oversight. but i should mention as well, every time we meet with the rating agencies as well as potential bond investors, they are very thrilled that the san francisco government has an independent comptroller's office that does their audits, and oversight committee that does their audits, the additional scrutiny of the budget analyst. they consider that a credit strength as well for the public utility as we sell bonds. thank you. supervisor avalos: ok. supervisor mirkarimi: continue the motion as amended. supervisor avalos: as amended. a very good. >> this will be recommended to the full board next week. that completes our agenda.

supervisor avalos: we are adjourned. >> in this fabulously beautiful persidio national park and near golden gate and running like a scar is this ugly highway. that was built in 1936 at the

same time as the bridge and at that time the presidio was an army and they didn't want civilians on their turf. and the road was built high. >> we need access and you have a 70 year-old facility that's inadequate for today's transportation needs. and in addition to that, you have the problem that it wasn't for site extenders. >> the rating for the high viaduct is a higher rating than that collapsed. and it was sapped quite a while before used and it was rusty before installed.

>> a state highway through a federal national park connecting an independently managed bridge to city streets. this is a prescription for complication. >> it became clear unless there was one catalyst organization that took it on as a challenge, it wouldn't happen and we did that and for people to advocate. and the project has a structural rating of 2 out of 100. >> you can see the rusting reinforcing in the concrete when you look at the edges now. the deck has steel reinforcing that's corroded and lost 2/3's of its strength. >> this was accelerated in 1989

when the earthquake hit and cal came in and strengthened but can't bring to standards. to fix this road will cost more than to replace. and for the last 18 years, we have been working on a design to replace the road way, but to do in a way that makes it appropriate to be in a national park and not army post. >> i would say it's one of the most ugly structure, and it's a barrier between the mar sh and presidio. and this is a place and i brought my dogs and

grandchildren and had a picnic lunch and it was memorable to use them when we come here. what would it look like when the design and development is completed. and we are not sure we want an eight lane highway going through this town. and it's a beautiful area in a national seaport area on the planet. >> the road is going to be so different. it's really a park way, and it's a parkway through the national park. and they make the road disapeer to the national park. >> and the road is about 20 feet lower, normally midday, you go through it in two minutes. looking back from the golden

gate bridge to presidio, you are more aware of the park land and less of the roads. and the viaduct will parallel the existing one and to the south and can be built while the existing one remains in operation. and the two bridges there with open space between them and your views constantly change and not aware of the traffic in the opposite direction and notice the views more. and the lanes of course are a foot wider than they are today. and they will be shoulders and if your car is disabled, you can pull off to the edge. and the next area, the tunnel portal will have a view centered on the palace of fine arts and as you come out, you can see alkatrez island and bay.

and the next area is about 1,000 feet long. and when you come into one, you can see through the other end. it's almost like driving through a building than through a tunnel. and noise from the roadway will be sheltered. and the traffic will be out of view. >> when you come out of the last sort tunnel and as you look forward, you see the golden dome of the palace of fine arts and what more perfect way to come to san francisco through that gateway. >> it will be an amazing transformation. now you read it as one section, the road is a major barrier and then a wonderful strip along the water. all of those things are going to mesh together. >> right now the road really

cuts off this area from public access. and with the new road, we will be able to open up the opportunity in a new way. >> this bunker that we see now is out of access for the general public. we are excited to completely rework this side and to open up the magnificent views. and what we want to do is add to this wonderful amenity and restore this coastal bluff area and respect its military history and the doyle drive project is allowing us to do that recorrection. and this area is not splintered off. >> and we can see how dramatic

a change it will be when doyle drive is suppressd and you have a cover that connects the cemetery to this project. it's historic on the statewide and national basis, but you could rush the project or put thought and time to create something of lasting public benefit. >> we really want this, for everyone to feel like it's a win situation. whether you are a neighbor that lives nearby or a commuter or user of the park. that everyone will experience a much better situation than they currently have. >> the human interest to me is how people could work out so many challenging differences to come to a design that we believe will give us a jewel. landmark of a place. >> i am sure it will have

refining effect like embark did. and there were people about that and no one would think of that today. and when you look at growth and transformation of the embark, the same with doyle. it will be a cherished part of the city and a worthy addition to what is there. >> it will be a safe and beautiful entrance to a spectacular beautiful city. it will be the entry to golden gate that san francisco deserves.