farm and which provides also a filter strip for the sediment that otherwise might go off to the creek. and i guess, equally importantly, it is a tremendous learning environment for kids to come out and understand how the natural resources integrate with the farm and filter between the farm and watershed, and it is a great opportunity for kids to come and dig in. over 1000 plants have been planted here by many in small and big, and many of the community have come out to make that happen as well. wildlife restoration is important there. in recent months, the local eagle scouts have established owl boxes, and you see some have the box birds sitting in the spring bargains. celebration has been part of this from the beginning as well. up above our folks from the east

bay regional park district, and we tremendously appreciate the support on the ground and in getting us to this point. i just wanted to say that i look forward to working with you in the coming few years to develop a watershed and in three or so years, celebrating with you again as the great center is completed, so, please, help yourself to strawberries and tomato seedlings, and again, thank you so much. >> i would just like to thank you. i have known you for many years, and she is doing god's work, and the work is really remarkable, and we are just appreciative for all you do. comments? questions? so we have item 15. is there a motion to approve and authorize the least? >> so moved. >> second. >> any questions or comments from the public?

all those in favor? opposed? congratulations. >> madame president, returning to the regular order of business, discussion of possible action to authorize the general manager of the san francisco public a lid is commission to execute on behalf of the puc the interagency cooperation agreement between the city and county of san francisco and a treasure in the development authority and development agreement between the city and county of sanford's is good and the treasure island community treasurellc relative to the development of it station treasure island in furtherance of the treasure island development project, subject to the approval of the board of supervisors and about findings pursuant to the california environmental quality act, including a statement of overriding consideration and a mitigation monitoring and reporting program. >> good afternoon, commissioners. having a little bit of technical difficulty. i think i am going to use the overhead. >> scoot over.

that will work. >> i do not know if you can see that. good afternoon, commissioners. deputy general manager. we have before you today treasure island. you have three actions or decisions that are possible for you to make today. one is to adopt the ceqa findings and mitigation monitoring plan. one is to approve the development agreement between the city and treasure island community development. that is the developer. the third is to approve the interagency cooperation agreement between the city and treasure island development authority. let's go through and see what each of those means. the first one is that you would actually adopt the ceqa findings, including the statement of overriding considerations, and these were provided to you in advance of today's meeting. you would also be adopting a mitigation and monitoring reporting plan, a primary share

responsibility and your responsibility is in a construction-related noise and operational noise. those were the two items assigned to the public utilities commission as primary responsibility, and you have some shared responsibility. those are also eyeing your package. the next thing is actually the development agreement. what this does is it actually best the developer with certain rights to develop the island. the city agrees that it will not impose any new fees or impose changes that will adversely developer -- adversely affect the developer as it develops, but what it does 3 are couple of considerations. it reserves your right to collect waste water capacity charges, and this also relates to when you change rates for water and waste water for san francisco. the second is if there is a change in state or federal

regulation -- let's say the best water regulations change, and it requires you to do the modification to your plans, requires you to raise rates, you are allowed to do that as well. you have certain rights reserved in the development agreement that are particularly important for you. the next part is actually what we call the interagency cooperation agreement, and this is what we have been working on very diligently over the past couple of weeks. this was going to be approved by tida, the treasure island vellum authority, the city board of supervisors, all other relevant agencies. there is a signature page in the documents we have provided to you that you would delegate to the general manager to sign on behalf of the public utilities commission, to execute that document and all the infrastructure plan associated with that document. of course, the developer has the right as a third-party beneficiary, to enforce if you do not comply with your

requirements that are included in the infrastructure cooperation agreement against the city, but it also fixes the city's regulations and procedures for how develop naturally occurs on the island. there is a design review board, which we will be part of, so when infrastructure is proposed to be put in place by the developer, we would sit on the design review board, provide our criteria to the developer saying, but with this is what we want you to design and build, and we would have the right then to have inspections of those infrastructure that the developer is providing to the city. there are benefits to actually having the agreements. one is that you will have the right to negotiate continue utility service to tida using navy facilities. the navy at somewhat in time will convey treasure island in parcels to tida.

when they do that, we have to have another agreement on how they provide utility services, on an ongoing operation to the island. right now, we're just doing cost recovery with the navy, operating their facilities. as i mentioned, we will provide design criteria to be constructed by the developer, a process for accepting the utilities. after the utilities are actually built, there is a process we go through for you to except those utilities. once you accept those utilities, it has certain responsibilities and obligations on your part. you would then own, operate, and maintain those facilities, so it is very important that you understand that they are a process for you to go through and look at that. we also have construction inspection services. i think this is important, that all the facilities that will be built, we will have city construction inspectors on site overseeing the work done by the developer to insure that it is done to our specifications.

so what is the developer for writing? there are three areas in the water, wastewater, and power area. the developer is providing the potable water storage distribution system. we have a means to get potable water to the island right now on the west end of the bay bridge, and that is the main feed on to the island. there is also a be coming from the east end of the bay bridge, and we can talk about that, but that is the emergency backup water, and that will change over time theory they will provide the fire suppression system, the method of moving water around for fire suppression, as well as putting in place in takes into the bay for fire suppression. they will also provide recycled water storage. as some of you might recall, you approved the water supply assessment about a year ago, which included as the would be recycled water use on treasure island to reduce the amount of potable water that they would be using. what are your potential cost?

new emergency water supply line on the new eastern span of the bay bridge. as you know, the existing bay bridge is going to be abandoned and potentially demolished. there is a line that was placed into the new eastern span, the conduit, and we would have to reimburse caltrans about $4 million to take possession of the line. currently, we have about $1 million allocated for operations on treasure island. currently, we do not have a good calculation of what it would be in the future, and we have some interim capital needs. the operating an interim capital needs are all recoverable right now. they are receivable. we are charging recovery through that. waste water is the next big one. the developer would provide a

new sanitary collection system, a new storm water collects in system, and a storm water treatment system, and i think that is very important. it will be a separate system out there, so the sanitary sewers and storm water sewers will be separated, not like we have in san francisco where we have a combined sewer system. sanitary glove and treatment plant. storm water will go to either treatment wetlands or out in debate. what are the potential costs on the waste water side? potentially the construction of a new waste-water treatment facility on the island. it is about $128 million. we also would actually be -- as part of that, we would be building a recycled water plant associated with that treatment plant. currently, we spent about $1.2 million to operate the wastewater plant on treasure island. we have estimated about a $6 million interim cost for capital improvements just to keep the system running until the

development actually is built and we take over new infrastructure. power and gas systems provided by the developer -- they would provide electric distribution systems, street lights, and natural gas distribution. those things, to the island out through existing conduits. in fact, there was a new submarine cable that tida has built on to the island as part of the east bay bridge retrofit, and that cable we have loaned the money to about $5.5 million to retake caltrans, and part of the agreement we would have in the future is we could take possession of the cable and they would have no obligation to pay us back. we spent about $800,000 in just operational costs, and then purchase cost for gas and electricity, and we have an estimate of about $1 million for

interim fixes for the island at this point in time. i wish everything was, like, clear and very specific and concrete in all these agreements, but they are not. they are subject to some future negotiations. actually, it is subject to some more definition of terms and conditions under which we will actually provide water, wastewater, and potentially power service to the island. we are the providers of those services in san francisco now, and we would be to provide it to the island as part of our general services to san francisco. i want to make it clear that we are not backing away from our obligation to provide with water, water, and power services to the island. we just want to make sure that you have flexibility in how you provide the services to the island. you also have to have interim service agreements as the island transfers from the navy

fromtida and then potentially do you -- from the navy to tida and then potentially to you. there are lots of things that could kind of come your way. you have complete discretion on what agreements you want entered into. you have exclusive charges in the charter. as we move forward, we will be bringing back some of these agreements for your approval, but i want to make sure you understand the you will have made lots of questions and we might have not have very specific answers, but there are a couple of key areas i want to highlight. a lot of discussion on sea level rise. we have gone through a lot of that, and they do have an adaptive management plan we have looked at. they provided a lot of clarification over the past couple of weeks on that, and it is starting to feel like they will do better as far as satisfying as on how they move forward. this has been a question about wetlands in general on the island. there are three types i discovered this morning on the

island. storm water treatment wetlands that are seasonal that only gets storm water. there are storm water treatment but instead get recycled water, so they are perennial, and then there is an optional waste water treatment wetland that you would actually be -- it would be your decision to decide whether or not you wanted to build that on the island. so there is a lot of confusion about which wetland was which. the two storm water treatment wetlands are being built by the developer and there will be a fee associated with maintaining those over time. one of the other stains -- things we t on -- there might be other issues, but we can open it to questions.

>> i think we should refer to the mayor's office, unless there are objections. >> good afternoon, commissioners. we are the project management entity and have been designated by the treasure island authority as a lead negotiator in order to move the project through. good we were here and if a detailed presentation about the infrastructure plans, and what we want to do is quickly remind you of the planning process we

have been through and then highlight planning and now and due diligence but will -- but will have an enormous benefit. our project consultants are going to walk through each area, but i would like to remind us of the project. yethe project description is wht was cleared in the environmental document, but was certified in late april. it is comprised of 8000 residential units, a 25% of which will be available. as well as up to 100,000 square

feet of office and 300 acres of parks and open space. i will talk in detail about the public benefits. the project will be implemented over 20 years. the puc will have the opportunity to review the infrastructure plans at a greater level of detail before discussion commences. you will see a compact development program. 300 acres of space are preserved. the entire island will be stabilized. there are setbacks to accommodate future sea level rises, and this allows for more efficient delivery of infrastructure systems. goothis as been going on for a g

time. in 1997, the treasure island development authority was formed, and the development initiative was formed as well. they entered in a cooperative agreement with the navy. in 2001, the citizens of advisory board was formed. there have been over 275 public meetings to date. this is one of the most publicly vetted projects in the history of san francisco. since 2003, we have been working with them and their team of consultants as well as other city agencies that will have jurisdiction over the project.

the term sheet included a draft infrastructure plan that formed the basis of the plan before you today. that plan was updated in 2010, and we went from 6000 units to the 8000 unit program that was analyzed and forms the basis for the infrastructure plan and the development agreement. in april, 2011, the board certified eir and adopted a resolution approving documents, all subject to final approval by the board of supervisors. o300 acres is the largest parks projects and the golden gate park. 125 in million dollars. gwith respect to transportation,

a capital investment of $145 million. there is a $35 million subsidy they would pay to the authority that would offset transit costs. there are a couple of features that are unique to the project that were authorized are rated california's first congestion pricing program. all homes will be required to purchase a transit pass. another important component of the project, which was recently impacted by via redevelopment agency is the development of affordable housing. they contemplated units available because of the switch of three-development planning arrogant to refinancing -- clennon arrangement to refinancing, we lose $15,000.

just today we talk to the senator about legislation. we are pursuing a half -- path to get a spike -- us back. we are confident we have the ability. we have revisions that allow us to get back to 30% if we achieve these legislative goals within two years. we have the opportunity to buy the site back should we fail to get legislative fixes. up to 2000 new homes will be available at affordable rates. 435 of those will be developed by the treasure island development initiatives. 315 will be in exclusionary, and the treasure island development

authority and who would develop approximately 1250 units at a wide range of incomes. in terms of facilities provided, of renovated school including a payment to the school district, a new combined police and fire station, the reuse of structures, and 3000 square feet of additional space including senior centers. there are enormous economic benefits to the city. approximately $80 million will go to the general fund after expenses are handed out, and approximately $3.3 million annually until financing is completed for the project.

the land payment by the developer is a clause of our agreement, about $118 million, and of to 10,000 new construction jobs, as well as approximately 3000 permanent jobs will be created. in terms of the breakdown, they are primarily in the service industries sector. if there are about 535 services. when a thousand 100 services end civic community services and facilities, abruptly 335. there will be 95 transportation- related jobs. in terms of public

infrastructure being provided, of approximately $180 million as well as the geotechnical improvements to over 105 acres of development area, 3 miles of seismically strengthened perimeter. we will talk about the sea level rises. i am going to talk before turning it over to the consultants. i want to talk about the approach to address sea level rise. the first was cite specific conditions related to high rains and waves. in conducted a study and extensive modeling within the

central debate. based on that study, there is a two-tiered process. the first as the initial improvement provided as part of the infrastructure. this will happen in an incremental manner, and it is contained in a couple of parts. we will accommodate up to 36 inches of sea level rise plus an additional 6 inches. we will also be elevating and retrofiting the entire perimeter of the island to account for sea level rise up to 16 inches. this is important because it balances the mandates to maximize public access to the shore line and providing our reasonable level of flood protection.

as i mentioned, the development area is anywhere from 200 pager 350 feet, -- 200 pager 350 feet. the final -- 200 to 350 feet. the final is to fund the capital as well as maintenance costs, so all of these will be delivered at no cost to the puc or at no cost to the general funds or tax base. a sea level rise up to 16 inches. the storm drainage system will remain trained. once we get to 16 inches, the shoreline will be raised to prevent a problem.

and now they will be maintained. above 36 inches, the entire shoreline a dish and will act as a levy. i mentioned the development said iraq's -- said bias -- setbacks, and the final plan includes a mechanism to create a steady stream of funding dedicated to the strategies and operating expenses. the additional improvements are about $7 million to get to stage one, to provide improvements that would protect of to 36 inches of steel level rise. -- up to 36 inches of sea level rise. improvements equal $38.2

million. we have done some analysis to look at what if you were to raise the grave today to protect against 55 inches of sea level in ras -- to raise the grade o today to protect against 55 inches of sea level rise. also to raise the entire perimeter 55 inches raises a number of urban design issues and issues related to the existing school. you would have retaining walls along the campus, and drainage issues associated with that, and walls of for to 5 feet. >> the initial improvements for

7 million -- worth 7 million. if you then make improvements, is that $29 million? >> 29. but >> and then an additional 38? >> going from 55 would be an additional 8.8, so to get us from what is provided initially totals 35.2 million. the initial is the cost associated with the perimeter improvement. they do not include raising the grade at development areas. >> if you were to do it now? >> approximately 73 million, so about double period