in the budget. >> it's being done by staff. >> it's like what ann and i were talking about, the new emblem for stationer iny. there was nothing spent but the staff did it. it's still staff time. still money being extended. >> we've had so many budget 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.

governor welcome to culturewire. on march 18 the san francisco arts commission hosted the 2010 mayor's artwork. the mayor's arts award was established to honor an individual artist with a lifetime of outstanding achievement in the art and civic life. this year's award is to none other than carlos santana. before the award ceremony, the director of cultural affairs had a chance to sit down with carlos to ask him a few questions.

>> once a year, mayor gavin newsom gets to select one distinguished individual to receive the mayor's arts award. in 2010,á(át that distinguished individual was none other than the legendary musician carlos santana. carlos, it is so great for the city to be able to recognize you. given all of your accomplishments already, from the awards, all of the other distinctions you have received, what does it mean for you to get the mayor's part award? >> i am very grateful, moved. i always want to be in the company of illuminaries like cesar chavez.

people making a difference, but to people's hearts. giving people a sense of tangible hope. one thing is to be famous, it is quite another for people to like you. i am grateful for this award. it is another blessing. i do not take it for granted. this is an incredible city. everywhere i go, i tell everyone that this is the atlantis of today. there is no other city in the world -- i have been everywhere. there is nothing like san francisco. in fact, to me, it is not even the united states. you can see how fox network always attacks us. we do not have an inferiority complex. we just do not follow blindly.

we question authority. as i said before, a person for person, there are more artists and con artists in the bay area. >> you are someone who has identified so strongly with the bay area. a lot of it reflects the values that you also identify with. i know that you have been promoting an idea for a work of public art that could be pretty transformative. could you talk about that? >> peace brother is something that i saw, i think in the 1980's there was this lady. she started back there and converted -- she went to the neighborhood and was collecting the guns from some of the gang

members. she had it melted and turned into angels. we want to do the same thing and take it to the next level we want to build a boom box by his feet, he will be 7 feet tall. this will be made up of military guns. the boom box will be playing some great songs. marvin gaye. john legenlennon. bob marley. sam cooke. >> songs that really touch people deeply. >> i have come to a place where i call it the sound of maternity. bob dylan calls it eternal young. i think there are certain songs that help you live without fear. when you are living in fear, you invest in violence.

fear is expensive, just ask president bush. inn love. and what marvin gaye says is true, war is not the answer, only love can conquer hate. these things are not cliches, they are truisms. if we implement them, you will see a transformation in the bay area, richmond, oakland, the mission. all places where we need to dismantle the violence, the fear, the unnecessary pain that goes on. >> you are a person that has lived a pretty miraculous life. pretty extraordinary what you

have accomplished, the range of people you have been able to touch with your music. you chose a beautiful word in spanish for your foundation -- miracle. could you talk about what the foundation has been able to do? >> we are able to empower and give young people a way for them to develop their own decisions. i started with my own vision. there are people like andre agassi who helped finance. desmond tutu. in essence, in the bay area, like on larkin street, i want to see people invest more in people. i love the giants stadium, but i want to see cumins investing in a humans, instead of expensive. expensive buildings. i love to see the mayor and

governor invest more in education than in incarcerations. so i am committed with the music and the platform that i have, if i have to, to give a little spanking to those who need to break up. we spend way too much on weapons. all the money that we spend on tv advertising, gears of war, that is stupidity. in new zealand, they passed a law that said that you could not sell it. all those games about killing people. they do not want it. to me, i'd equate that with columbine, with war. once you desensitize a human

being, you cannot tell the difference between shooting someone in a video game and a real person. some people can be gentle and kind. i can be ghetto when i want to be. i grew up with the black panthers doing peace and freedom benefits for them. so on the one hand i like the softness of spirituel the day, but i also like the energy that you need to be a warrior where you need to be. i love martin luther king, but also malcolm x, sometimes you have to really hold your ground. compassion, kindness, education. rather than more killing. >> when you graduated in 1965, it was the height of the civil- rights movement. you just alluded to the

environment that you were growing up in. as a young musician, what was it like for you in san francisco at the time? >> it was heaven on earth. we would go down to the fillmore and see these great band, the doors, and jimi hendrix, cream, and then go down to the grove to see other music. you could go to the mission district to hear mexican. everywhere i went there was this multi dimensional color and i felt like it was on necessary for me to do just one. like baskin-robbins, i want all the flavors. you cannot just be a mexican play music. there is a lot of beauty in

that, but it was not for me. i was born without arms around my heart that wants to embrace everything. palestine's, israelis. japanese, apaches. i am more concentrated with life and love than flags, nationality, religion. that stuff gets in the way. one gets in the way is me, myself, my story. for me, that is why music is liberating. when you hear "imagine" anywhere in the world, people sang the lyrics. as soon as you hear the melody -- same thing with a bob marley

song. i grew up taking everything from bob dylan, curtis mayfield, the beatles, smokey robinson. mike alma mater was the streets of san francisco. i would dare to go to school. where i really hung out was at the fillmore. that was my university, checking out be the king, and james brown, a cream. finding out how they were able to penetrate people's hearts. with their music. once you do that, something happens to their eyes. they become brighter. they start crying, they do not know why. they start dancing. it is like when a woman gives birth. =mmfirst, she cries and then she laughs. later on, she dances.