conversations about all the things that we're cutting, between your capital costs and energy cutting. that's where my concern is, thiser $200,000 for the desal project and whether now is the right time for it. >> was this within our budget? >> this is within a promptic project which allows for $2 million for water supply planning efforts and this is one of a number of activities contained in that. >> and was it discussed during the budget process? >> i don't believe we talked about this project specifically at that time. we've talked about it over the time as one of the possible properties as we deal with the water issues before us. commissioner caen: so we can either go ahead and call the vote or delay this until the next meeting but it sounds like

the commissioners have heard enough and that it might not better inform us to make a decision if we delay. >> i have a question. if we hear it at another meeting, a future meeting, won't the same people come forth and discuss what was discussed today? i don't know what more we can learn. i mean, you help me. what more do you think he could -- we could learn to offer to the public? >> i think that maybe this was the public hearing that we needed to have and we've heard the questions that have come up. i know it was a concern at the last meeting that these concerns hadn't been agendized. my concern is still around the 200,000 -- it just seems like right now where we are as an

agency and with all the priorities that we're having to cut that it seems like a pretty big amount of money to do this study on something as far as i've heard is not that feasible project to do a desal project that has such high energy conservations. >> a from a cost-analysis poich the broader sheet is in there and at least based on the costs to date because there's no major plum lingts involved, this is on the low end. in terms of expense, this is not as expensive a project. it has lot of other questions that need to be oresolved but suspense is not one of them. commissioner caen: you mean as far as the capital or the study? >> the capital.

the cost is about $1,000 per acre foot. i don't know if that's the right number but that certainly makes it more cost effective than a lot of the other project we're spending on right now. commissioner caen: but that doesn't factor into the implications, the unknown. environmental factors. >> which is what we need to find out. i don't think we'll get any more detail for this project with're hearing. the one thing we could do potentially is to make another session more constructive is to bring a more robust outreach plan as part of that. that's something that we would be taking the lead on but we'd have to build on our other partners as to how we would accomplish that and get a lot more detail than the jeanties

in appendix d. commissioner caen: let's do that, then. let's put it off to the next month meeting and bring it back and if you could bring back an amentaled version as to what the outreach plan would look like -- if there's no objection if we could next meeting, we'll continue it for that time. which will be july 12. >> 12th. >> and i think it will give us some time to think about what we've heard today and to be able to have you do a bit more work on what the outreach pieces might be. >> a 30-day delay. and there's nothing to say that we won't sit down with some of the people that have spoken here today and try to talk

through some of the issues that they have brought up today and see if we can kind of get to some resolution. so we will try and work on an outreach plan and have that as part of this and we will sit down with some of the people who spoke here today about the project. commissioner caen: thank you, that sounds good. next item please, mr. secretary? >> item 13, discussion of possible action to askhend extend the agreement to provide a direct pay letter of the credit authorized 2002 proposition a for the water enterprise commercial paper program with bank of america n.a. [continued reading]

rydstrom. >> good afternoon, todd rydstrom. this allows us to continue our commercial paper program that ogses -- costs about 1% on average by the time we borrow on the short market. that compares to about % if we were to have to sell bonds in advance. commissioner caen: is there a motion to continue the cost savings program? >> i have a question. why is the annual fee so much more? >> when we previously renewed this contract, the market was

very aggressive for commercial paper programs. since then the investment banks and banks in particular are gearing up for the imp limitation of the basil -- implementation to have basil three initiative. what this compares to most recently, if you look at what we renewed with j.p. morgan last year, this is the same cost, the same rate that we got the j.p. morgan rates at a year ago so it's a very good deal for rate pairs, the continuation. in addition, we've locked this in at that rate for three years, so this will get us through the heavy lifting for the contract awards. >> i know there are additional costs when we issue the bonds, but isn't this a favorable environment? in order, why aren't we issuing the bonds? >> it's a great question.

so we're issuing the bonds as soon as we need the money for spending. what this $500 million commercial paper program does, which 250 is before you today for extension thorgization. it allows us instead to during that interim period, until we sell bonds, which we do on average every three to six months, it allows us to get access to funds that cost about a per vent to 1.25%. if we had to sell it up front. we'd be selling at an average cost of 5%. which is still a great deal that -- but this allows us additional savings if all right taxpayers. >> i hate the banks. i hate what happened to us and the taxpayers.

and these sons of guns are still foreclosing on homes and here they ask for a $1.8 million fee for -- through 2014 just to borrow money. >> if i may, they asked for more. we told them no and we negotiated very hard. we ended up saying -- saving about $730,000 from what their initial proposal was. >> what president bush and the congress did to us on pushing this so us -- to us is unspeakable. look what it's done for you? no support for the homeowners out there for those who have lost their homes and are homeless. >> your points are well taken. this is the best deal we can get for rate pairs today so i feel good about presenting it

to you for continuation. >> then they leave us for the south. there are no other banks we can do business with? >> we also do work with u.s. bank and j.p. morgan. which is helpful to have multiple banks behind you. >> what about wells? that's a local bank. >> we do various work with wells. they're active participants in your purchasing. we next are up for our renewal of the other $250 million, at which time we will again canvas the market. >> so after canvassing this is the best deal we can get? >> this is the best deal we can get to be able to lock in for three years and that's a very important time period for us for the program. >> is there a motion to adopt? >> so moved. >> i'll second. >> public comment on this item? hearing none, all those in favor --

>> aye. >> opposed? >> yes. >> motion cares. next item please, mr. secretary? [item 14 being read] >> todd read strofment assistant general manager and c.e.o. we were very fortunate to be awarded a $3 million allocation from the california energy commission. this allows us to be able to borrow at a low 3% rate over a 15-year term and instead of using fund balances which then

we can use for other necessary capital improvements. i do recommend that you consider this for approval today. commissioner caen: is there a motion to authorize general manager? >> so moved. >> seconded. commissioner caen: public comment on this item? all those in favor? >> aye. >> opposed? touch. item 15, please. [item 15 being read] >> good afternoon, commissioners. my name is -- at this point

deputy director. this tell is for the third package to be awarded in the context of the last one. it's for $45.3 million. we had asked for 8%. they're offering 12.6%. this contract will be about 20% less than estimated. still, we are bidding from the competitive market. we had nine bids. bids ranked from 45.3, the lowest bid, to $57.5, the highest one. good contract. in the east segment. near oak dame. and continue down so we ask you to approve this contract award. commissioner caen: $45 million, huh?

>> right. just $45 many. plus some change. commissioner caen: plus some change. plus 329,000 in change. >> i'd like the commissioners recommendation to take the $200,000. >> we're saving you. keep in mind. >> is there a motion to so approve? comments, questions? all those in favor? >> aye. >> opposed? thank you very much. next item? >> item 16 being read]

>> good afternoon, todd rydstrom. we're asking for a 12-month extension. we are making progress. >> second. >> comments, questions? >> aye. >> thank you. >> madam clerk, the next item is closed session. if you could call for any public comment on any of the closed session items, you could entertain a motion to vote the attorney client privilege. >> is there a motion? >> so moved. >> seconded. >> all those in favor? >> aye. >> we have no speaker card. let me read the item. item 19. [being read]

president vietor: we have returned from closed session at 4:53. >> there was a motion that was approved and adopted on item 22 settle. the remaining items -- on item 20 to settle. we will not disclose items 19 or 21. there was no action taken. all those in favor? opposed? motion carries. next item, please. >> any other additional business

before the end of the meeting? president vietor: hearing none, this meeting is adjourned.

>> from our new headquarters building. the sfpuc is used to doing things. we build and maintain dams, treatment plants, transmission lines, water and sewer mains. at the same time, our staff has always been in rented headquarters. we thought it was time to own that, too. this is the time and place, 525 golden gate. this is a milestone in the project for building. in about 30 years, we will have paid off the building, and then it will be free to our ratepayers. it makes sense for them and also makes sense for green purposes. this will be one of the most

sustainable buildings anywhere around. it is going to generate power and also used 55% less power than and regular building. ed will send off more non- potable water for more uses in the area. it will be a wonderful thing to live around and be involved in. we are celebrating this topping off. we have done some research. topping off ceremonies started back in roman times. people would have a ceremony when they finished building the roof of a house. as they finished, it was traditional to put an evergreen tree on the final game, signaling the finish of the infrastructure and construction. that is what we're doing today. you will notice of a lot of signatures on a banner that was attached to them being, because we have a lot of excited

employees who could not be here today. hopefully, all of you have a chance to sign that beam and see that evergreen tree that symbolizes the sustainability of our building and the good fortune of having completed the building. the first person i want to introduce is a person who has been involved in this building probably longer than any of us. at one time, this was not even going to be a pc building. dpw was going to do a lot of things for the city. back then, as director of dpw, mr. lee was responsible for doing that. now as mayor, he gets to sign the top off. [applause] >> thank you and good morning to this topping off. when ever you get three eds and an andy to gather you are going

to have fun. i want to thank the pc for its leadership. they are leading the way in this building and in so many other things. -- the puc for its leadership. they have a tremendous amount of jobs on the street right now keeping the city alive, moving forward with labor unions. i want to thank webcor, dpw, department of the environment, working together under the puc commission to make this building come together. i just signed my name on that last iron been going up. i wanted to make sure that i was recognized at this moment because it was one of the few times that a former public works director can actually have permission to do graffiti. but it is for a good cause. i know it represents so much of a great energy that has been

poured in. it is lede platinum. that is a standard for the future. it is one of the few buildings we will see in our immediate lifetime -- but to get it started on this -- and to have it contribute to a sustainable area called the civic center, to have this corner of our civic center be an example and model, i want to congratulate everyone who has been associated with making this happen. i know public works people have been working closely with staff at the puc, department of environment making sure that everything from energy use to the water is at a high standard. it is my pleasure to be here. we are so enthusiastic about this being the new standard and

also a great building that our employees will be proud to work in. thank you very much. [applause] >> thank you, mayor lee. our puc commissioners are the ones that actually make the decision about this building. all of them are here with us. the president of the department. [applause] >> thank you. it is an honor to be here for this topping ceremony. i want to thank my fellow commissioners who are here and also it knowledge a former commissioner, f.x. crowley, who was formally on the commission, who has helped. this will be one of the greatest municipal buildings in the country, if not the greatest. i have to refer to my notes because some of these stats are

pretty incredible. this building will design 55% less energy than most office buildings anywhere. that is one-third less energy than most buildings consume. over the next seven to five years, it will save an estimated $180 million in energy costs. that is a lot of money that will be saved by our ratepayers. we also talked about the reclaimed water. all of the sewage will be treated on site, as well as the gray water. that means all of the demand for the low flow toilets and your girls -- urinals will be met, and over 700,000 gallons of water will be saved annually. it will also save an additional 900,000 gallons that we are using at the sustainability district. it is a significant water savings that we need to pursue throughout the city. i also want to thank the mayor

for his leadership on this. beginning in his early dpw days. dpw, p u c, department of environment staff, everyone who has worked so hard on this -- i remember, it must have been 12 years now when we were first identifying different pilot projects through the city that could be brain model the. this was one of the building that they identified. -- green modeled. it is so rewarding to see this be realized as one of the greatest buildings in the country. thank you for coming and we look forward to moving in next year. -- greenest buildings in the country. >> other members of the commission, andy moran, art kane is here, various members of the puc, the general manager for

water, power, waste water, business services, and juliet ellis, external affairs. one of our stars is shelly campbell, our product manager. thank you. [applause] we're also joined by the department of the environment had. -- hea. d. we are going to wait for the fire trucks to go by. this started with the dpw project and we are a client now representing the dpw is ed riskin. >> thank you. as the general manager and commission president referred to, dpw has been with this project for over a decade it has

really become a labor of love for the department. it is an extraordinarily complex building project, unlike our typical library or fire station that we work on. and it is not because of the exceedingly high environmental performance, but exceedingly high seismic performance, business continuity performance. this will be one of the most advanced office buildings in the country. it is really a great partnership that we have working with the puc to make this happen, but also with our private sector partners, kmd stevens, webcor and their construction team. it has been a collaborative effort. we are proud of the fact that we are not only getting this great building built that will serve the city for generations to come, but in doing it, we are putting a lot of local

businesses and residents to work in the process. it is really a win win. i want to commend the general manager and commission for their bitter ship and foresight in seeing after this project had been stalled for many years, seeing this was a great investment for the repairs and people of san francisco. it was the smart thing to do. we are righproud to be part of . i want to thank the work of the rest of the pc team to get this done. starting with a man who is living and breathing this, has been for years, our project manager brooke. [applause] he is working closely with edgar lopez, who manages all of our major projects, but was here pretty much from day one. they are being supported by our

city engineers and the rest of the department coming together to deliver a great project to the ratepayers of san francisco. we're so happy to be a part of this. congratulations to the puc on getting to this point, the topping off ceremony. [applause] >> as the owners, we are certainly willing to move in, but we are not building the building. representing the builders is andy of webcor. [applause] >> it is great to be here. most people do not realize this building almost did not happen. i was at a green building conference and i ran into mayor gavin newsom. he said, we are not going to build that building. we cannot afford to. i said, mayor, you cannot afford not to. this