>> next item. >> the next item would be the consent calendar. all matters listed are considered routine by the san francisco public utilities commission will be act on base single vote of the commission. terms and conditions offers the general manager to access on behalf of the city and county to extend the term for two years under the current lease at rawlings work and at burning game. -- burlingame. improve the election and water improvement program funded agreement, engineering service, fish passage facility within the alameda creek watershed and authorize san francisco public

utilities to execute a public service agreement with the u.s. corporation in an amount not to exceed $2,000,000.300000 -- $2,300,000. the contract and pipe installation on new mcgovern, stevenson, to the lowest qualified responsive better to replace renewed aging water pipes. -- the waste-water facility alighting efficiency at no. friends the oceanside to replace aging high intensity lighting features with high efficiency light a meeting diode fixtures for a contract of $500,093.

-- 500900 -- 5000 -- >> so moved. >> we have no speaker cards. >> all those in favor? >> opposed? the motion carries. >> the next item is regular business. discussion of possible action to authorize the general manager to enter into equipment lease purchases with bank of america not to exceed $8,291,070.87 in qualified energy conservation bonds and $6,600,000 in new, clean grenoble energy bonds for installation of qualified equipment in the office building project at 525 golden gate ave. and authorized legislation to the board of supervisors for

review and approval. >> good afternoon. i am the deputy chief financial officer. i have a few slides, mr. secretary. we have two requests before you today bundled as one item. we have to capital financing requests for green-related projects within the enterprise. we have project budgets that have been improved over the past couple of years. they require financing at this time. it has been about three years since we last shared with you capital financing. the last one was in 2008. we'll just go on. we have about 14 $29 million in project expenditures that will be funded with these two transactions. we have what are called qualified energy conservation

bonds and 6.6 5 million in clean, renewable energy bonds. these actually result from a federal tax credit allocations provided to this city for green- related projects, specifically those of these provide a tax credit similar to what you may recall from our water financing with the build america bonds. it is a similar concept. the interest subsidy brings the overall borrowing costs under 2%. if we were able to pull the trigger today, they would be closer to about 1.2%. very, very low borrowing costs for us. we do anticipate these transactions to occur. the qualified energy bonds of december and the financing will occur in the spring.

this is to fund the green components of our new headquarters building. solar, wind, the living machine, which is the water treatment, solar to control temperature and lighting within the structure. three projects will be funded with these moneys. the in line of micro hydro, which is a small generation plant placed within the water distribution system as well as to traditional solar projects. in terms of vendor outrage, we can best pretty much every firm that does this sort of financing. six of them responded and bank of america came in at the lowest cost. bank of america was the provider three years ago. they are familiar with us.

i can appreciate that the doctor -- the documents are low-volume this. but keep in mind there are two sets of documents for the two transactions. but if i could quickly walk through what has been provided, the purchase agreements describes the equipment pledge and repayment terms. the acquisition fund agreements describe how the bond proceeds will be held and how reimbursement will be claimed for project expenditures. the filing agreements describes the relationship in terms of filing the appropriate documentation with the irs so we get our subsidy that we absolutely need to bring our net costs down. for the financing terms, we are aiming for 16-years and borrowing costs under 2%. we will more than likely be in the 1.5% range once we move

forward. i do want to thank my a debt team under the new debt manager, along with his folks. they do all of the heavy lifting as relates to the bond transactions, not just this one. i like to thank them for their support and i'd be happy to take your questions. >> that rate is extraordinary. >> you cannot be dead. >> comments, questions? >> i think it's very exciting. thank you for all your hard work. it's great to get these rates and projects going. >> thank you. >> some time ago, i sat down with taut and charles and we reviewed a few things this is talking about getting educated on issues. we had a real good conversation

which has allowed me to talk to many university students about the bonds and other stuff. these two gentlemen will tell you that i left a happy camper. i did ask them questions that never expected me to ask because most of my questions dealt with issues in the community which comes to the point i'm going to address now. i was at a meeting with city operations where we are taking how we do our investments. talk about the municipal banks and models used in the quarter. i think todd will enlighten you on that type of model.

what i am pleading on behalf of the 99, because i and advocate, you know. we have the 1% and i belong to the 99. we do not have too much money, but hopefully we have a good heart and hopefully we can speak the truth, and hopefully we can do some good action so that when we leave this world, we leave a better place. when you say bank of america, i kind of get a heart attack. you know the bank of italy and their headquarters was in san francisco and now they are in north carolina. i know how the takeover took place.

todd and charles -- hopefully they will look at ways of investing and stay away from any entity that has a lot of toxic loans. any entity that has participated in that algorithms, where they brought the downfall of our economy. thank you very much. >> thank you. >> i believe i need a motion. >> so moved. sion? all those in favor? opposed? the motion carries. next item. >> item 12, authorizing the

general manager of the san francisco public utility commission to execute on behalf of the city and county a lease for the chevron pipeline company pursuant to charter section 9.108 and requests the director of real-estate division prepare and submit legislation to the board of supervisors to approve a 20-year police in alameda county to operate and repair existing petroleum product pipelines for an annual rental payments based on appraisal in the amount of $10,000. >> good afternoon. i am the real estate director and i'm here to ask you to approve our third lease with chevron pipeline company in this location. our staff report is comprehensive and i'm happy to answer any questions you may have. >> commissioners? >> i think that was very clear. this goes back a long way to

leases with chevron. if there are no questions, comments -- >> quick comment i see no reason not to move forward with the item. i appreciate to meet with staff and discuss ways to move forward and hopefully get a little bit of advice from the city attorney's office and discuss how moving forward, these leases will address in particular maintenance agreements, especially outside of the city limits. i appreciate your time and time staff has given me so that we can kind of move forward. i look forward to having those meetings. >> thank you. "may i have a motion? >> so moved.

all in favor? all opposed? the motion passes. the next item is a closed session. he would call for any public comments in a closed session? >> any public comment for the items we are hearing in closed session? >> if you would entertain a motion to invoke the attorney- client privilege and allow me to read the item and move the motion. >> so moved. all those in favor of? the motion carries. i will -- >> i will read the item. >> threat to public services are facility, consultation the agency chief of security, conference with legal counsel, existing litigation of the defense -- conference of legal

counsel, anticipated legal obligation as a plaintiff, conference with legal counsel, existing litigation for the existing litigation for the county of san francisco. >> we are now back to open session. the announcement is item 15, no action. 16, no action. 17, no action. 18 failed. may i have a motion whether to disclose? >> motion not to disclose. >> second. >> all those in favor? oppose? motion carries. asking our there's any additional business -- asking now if there is any additional business. >> i would like to raise now in the event that we discuss it in more detail later. i see a letter here from larry

mazzola jr. regarding matters surrounding leaves of absence and policies. while i do not believe it is within our jurisdiction to deal with the personnel matters at the distribution yard, and i want to be kept in the loop on how we resolve those issues. there are also questions we would have as well. i just wanted to ask that we would have a conversation about that. >> ok. any other business? seeing none, this meeting is now adjourned.