and, of course, i got to have the personal tour from carl and his wonderful staff to see all the different products and all the work has not only trading, but is the part of the way so many other companies are doing business, and we had a chance to talk this morning about all the different hospitals, the medical field, and the seismic retrofit requirements. all of the contractors and major engineering firms are using the very product you see here to be able to model their buildings. clearly, without that modern technology, you cannot see how some of these things can be sequenced with the great savings that are inherent in using 3-d dimensional looks at the way everything from hdc to

architectural drawings actually fit in with all the different skill sets. being your former dpw director [inaudible] [laughter] i told carl in the last four months since we were last year, i brought about three different visitors to san francisco right down here to take a look, and each of them came back. "what a wonderful place. i want to go back to the museum and see this great technology." every six months, there is an exception. want to talk about the great comments. despite what you're hearing about the whole national economy, we are very solid in the city, and i am so happy because as the mayor of the city, we want to keep that innovation, keep the technology

companies welcome in the city. eventually, we are going to sit down for some long hours and say, "how about those headquarters?" 36,000 additional square feet being announced today. that represents an additional 200 employees on top of the 500 employees that are currently here. autodesk has about 7000 employees worldwide, but there are making some very good plans here. there's a reason this is the city of innovation. many of the fantastic employees located here with carl's leadership come here because they want to interact with the best engineering firms, the best architectural firms, with the entities of building our new villages, if you will, whether it is salesforce or general hospital or chinese hospital, as

we go through those negotiations and get that done. these are fantastic buildings, fantastic institutions. it is all going on. they are all using the very modern products, so i am happy to see this. it is all about jobs and employment for us in the city as well. you have seen the other companies attracted to not only what autodesk is doing here, but also choosing to come here. of course, our work with twitter is very helpful. we are still on the move. we are still very excited about what autodesk is doing and still supporting every effort we

can to not only keep employees here but offer opportunities to expand because the product and the innovation has to be working together. the companies come here -- it is not because -- there is a little higher rent that you have to pay, but look at what you get. that is why salesforce has about eight floors here of great work they have. they will eventually -- they already are designing their whole campus in mission bay and using a lot of products here and their clients and customers using a lot of products to do that. i am excited to announce this and suggest to you that it is important, and my number goal is to create jobs and make sure that jobs-creating companies are here, they stay here. look out -- in six months, they will be right back here. we will make another

announcement. hopefully another great contribution. maybe look at the first order -- the first quarter and hope that is as successful as the second quarter. thank you very much. [applause] questions? >> [inaudible] >> 150. >> [inaudible] [laughter] >> [inaudible] >> autodesk is a company that

started in the bay area, reached to the d.c. area. started at the same time as companies like microsoft and adobe, so it is a 30-year-old company. it was originally headquartered in sausalito. about 15 years ago, we moved headquarters, and we have always had a small presence in san francisco. there has always been a fringe element to the company. we had a more urban setting that attracted different kinds of talents. a few years ago, we really increased it up to about 500. we were going to increase a couple hundred more. the interesting thing is that so much of our business is outside of the united states. about 75% of our business is

outside of the united states. what we look for is really the place where we can get the best talent. that is generally where we look at ourselves. our big motivations, particularly for research, development, or marketing is where we can find the best people, and we found that in san francisco. >> [inaudible] >> pretty much across the board, but the two main functions we have is software development and luxury. those are the two main developments we have here. we talked about the culture of innovation and young, smart

people. this is a great place to live, a great place to work. active public transportation. this morning, you could see the waves of people ride at the ferry tunnel, so it is really a great infrastructure. very different from my old new jersey. >> by the way, the last 13 candy awards for best visual effects used this product. >> the last 16 -- not only the last 16, but every year, there are five nominees. we have had qualified nominees for 16 years. you can actually see one of the awards that we have one. there's nothing that we or our

employees have not won >> can you do anything to offer any incentives or tax incentives? >> we have our real estate department helping with whatever support they need. of course our department of building inspections to do all the inspections to make sure everything is done in an excellent fashion. we are continuing to offer the technology companies an expedited approach that they don't get caught up in the bureaucracies and we have been doing very well. i know carl would be the first to call up and he hasn't been calling up. >> we have kind of pushed the limits. next week we are installing machinery in order to showcase

the capabilities of the manufacturing technology. we have had to work with the city to get those things approved. even as we change the exhibits, as of yesterday there was one of the things that was in here we brought in a concept car from daimler in there now. and just the idea of we have had to remove the windows and had a crane and working with the city on things like that and it is a big deal and if we didn't get the cooperation it would be much more difficult to do but we have had great cooperation from the city. >> [inaudible].

>> we talked to the mayor about moving the zones. >> my view is that creation of really high paying jobs all around san francisco would be a good idea. and while i understand why it started it one part of the city, i think creative jobs should been couraged all over the city -- should be encouraged all over the city. carl is many, among many others who are engaging with us to approach how to change the taxes. we are going to be spearheading that and talking about more options to deal with taxes. that will be probably connected very well to a discussion about headquarters and things of that

nature. >> exactly. we have a number of new companies that want to engage us in that discussion and make sure we don't lose revenues but don't continue job punishing legislation. so we are careful not to do that. and both twitter and others are great signs for our city to have moved to indicate that we are business friendly in that respect. i know your schedule is tight and we are planning to give you a quick tour of the work space. all of you are welcome to join. we will be walking to utter -- out that way and we hope everybody can join us. thanks very much.

president vietor: good afternoon. i would like to call the meeting of the san francisco public utilities commission to order. mr. secretary, could you call

the roll? secretary housh: [reading roll] i would like to note that commissioner caen is on the way. president vietor: next item. secretary housh: the approval of the minutes of july 12, 2011. >> president vietor: approved? next item. general manager harrington: -- secretary housh: public comment for members of the public may address the commission on matters that are within the commission's jurisdiction and that are not on today's agenda. we have no cards. president vietor: anyone? next item.

secretary housh: identifies, -- i no. 5. -- item 5. general manager harrington: -- president vietor: can hold this until commissioner -- can we hold this until commissioner caen arrives? which item? yes. vice president moran? vice president moran: usually, it is a very detailed conversation about how we seek

to balance these overtime. we really need to look get that and see what the implication is for rates for both water and on the power side, so i just suggest that we put this so that we can deal with the big issues before we get into the more detailed review of the budget. and then, there are a couple of policies that were listed as enterprise policies, and my intent is that we establish policies of those areas. i have seen a draft. it makes sense to start and then extend it in others. but i wanted to be clear that my intent was to have those affect all three.

president vietor: thank you. other questions or comments on the communications? hearing none, next item. secretary housh: the next item with the other new business, if the commissioner has any item. vice president moran: this is a question on the time budget. i think we have not been able to fit in folks a couple of times, and i think it would be useful to see if any of us have any time limits we are working with and how much time staff needs so that we can make sure that our discussion is wrapped up. my time is that i do not have any particular time limit today. president vietor: how long will the closed session items take, approximately? " secretary housh: i think if we had 30 minutes, that would be good. president vietor: commissioner torres, when do you have to

leave? commissioner torres: i would like to leave by 5:00 at the latest. president vietor: i appreciate that. vice president moran: if we wrap up our business, we should be able to do that. president vietor: next item. secretary housh: item number seven, a report of the general manager. >> we want to start with mr. rydstrom. we sold bonds last week. >> good afternoon. we went to market again last week and sold water revenue bonds. if i could have the commission secretary go to the overhead projector? a very successful sale, achieving $18.10 million worth of interest savings over the

lifetime of the 30-year bonds for ratepayers. that includes refunding some of our 2001 and 2002 revenue bonds. competitively, we sold the bonds. once again, we have bank of america, merrill lynch the winning bidder. on the next slide, slides 3, you can see all three sales. some of the bonds were the largest, $603 million. we had several bidders, and bank of america/merrill lynch once again the winning bidder there. to help put this into perspective for bank of america/merrill lynch, they have been one of our largest buyers since 2006, and the enterprise has been selling a great deal of bonds. about $1.60 billion total they have purchased, including what they have just purchased.

this bid was to fund our hetch- hetchy facilities as well as our water in the city. citigroup global bought those, and then our bank of america/merrill lynch bought all of the re-fundings. so we premature cheap what was adopted as part of the last budget hearing. in that model, we had an average cost of borrowing. we achieved an average overall of about 4.48%, so we are pretty close. the items that also happens, the bond sale, moody's did downgrade us given our weakness. we had thought that would occur. moody's previously had as one notch higher than s&p, so now, with the movies in adjustment --

the moody's adjustment, what that means is we are still very much on a roll with the debt. a strong aa. we noticed in the electronic markets, as we're required to do with our material disclosure, and all of our bond documents, for our build america bond revenues. president vietor: commissioner moran. vice president moran: did they state a reason for the downgrade? >> this is on a current basis as well as a projected basis. what movies does is just take them all and line them up in a row, and based on our current level of water sailors and the

cumulative fund balance reserves, that made us go into the third notch of aa. vice president moran: and was the size of the balancing accounts an issue there? >> they factor in all of the cash we have available. and also noticed a long term strength of the economics. we cannot fall out of sync. the willingness of the

commission to adopt the rate increases that were needed and the cost management, the efficiencies. they did give us a lot of credit strength, which we should be proud of, nevertheless. that is where we stacked up for them. vice president moran: thank you. >> the next items on the calendar, we will be going to market next summer. what this means, through the sale, we have sold $3.30 billion of the improvement program of the total. we have locked in ratepayer savings because we sold long- term fixed-rate debt, not unseen since the '60s. three under $84 million for ratepayers. future outreach reports.

we will also be working on some bonds, as well, to take advantage of these as well as some conservation bonds. that is it. further questions? president vietor: questions? comments? thank you. >> there was a letter about possibly closing bacon street, and i wanted mr. moala to talk about that. >> toom -- tommy moala,

communications. this is the reservoirs, the north and south basin. bacon streak extends longer than that, but this is just between the north and south basin. over the last years, the section of road has been closed due to construction we have been doing at that reservoir. it has been closed for all of our construction supplies and in line with neighborhood impact. that work is still ongoing as of now. so as we are looking ahead to the future, one of the things that was discussed during the planning stage of this project was looking at security options for the reservoir, and because the street does bisect about one-quarter of the water to san francisco, we decided to install these as part of the project. these can be raised or lowered

on the right-hand side. and the reason why these were installed was to provide operational flexibility in the event of an emergency, and if we ever need to close a street of, we can limit access. basically whenever we need to. and now, we are hosting on july 28 something on bacon street with a neighbor to talk about the long-term plan for the stretch of roadway and whether or not we want to concede -- continue with this. this tree is bisecting a drinking reservoir pecan -- reservoir. i am happy to take any questions. president vietor: so those are

going to stay down? what you call them? they had issues with the street being blocked. >> there are some issues that have been raised for our public safety vehicle. so we have been talking to both the san francisco police department and the fire department to make sure there are no overriding safety concerns. the fire department says they do not even have a on the map. another thing to note is that this is a nonconforming city street. about 24 feet, 9 inches in width. a conforming city street is about 40 feet in width, so it

is a little bit narrower, and emergency vehicles when likely not use this narrow street, because if there was another large vehicle coming in the opposite direction, you would not be able to get past one another. that is part of the conversation we will have with the community. president vietor: ok, great, so that will help to inform the situation going forward. if that happens, that will be great. any other questions or comments? thank you. yes, please. et can you come up? -- can you come up? yes, there was a letter that was a public record letter that was submitted from one of the neighbors, saying that they do not want it closed. it feels like a part of the neighborhood, so, hence, the community meeting to get more input from some of the leaders. >> next up, lake merced, and we

went to report the status on that. as you know, we wanted to have an mou, and it is on the agenda today, and there is a report. >> the general manager for water. we have been working with rec and park for some time. we produced a draft to that and put it out and had a public meeting last tuesday evening at the clubhouse. 43 people attended, and we had a lively discussion. we heard comments that focused, having me pu -- the puc take complete control. people have been disappointed in the management of lake merced. there is a desire