putting these systems for multiple users in single-room occupancy hotels. that might be a good place to introduce these. it would not hurt to try couple of composting toilet said in there as well. thank you to the staff for incredibly exciting report. i hope you look at. thank you. >> thank you. >> 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. >> good afternoon and thank you very much for being here this afternoon.

i am general manager of the san francisco public utilities commission. i want to thank you for allowing us to be here to talk about the energy retrofit programs they have been allowing us to do. it was a really simple goal. it was federal stimulus money, and the goal was to do something long term that was good and the other goal was to make sure we spend the money quickly and got jobs we were creating. what is great is we accomplished both. we wanted to celebrate that today. the city already provides about 100% clean natural gas -- not natural gas. back that up. the city provides greenhouse gas free, 100% renewable energy. what is different is we're saying now that we provide that energy, we should always still be conserving, all we still be looking at energy efficiency opportunities, and that is what we're doing. this is one of 10 sites in the city including other cultural centers, health centers, where we took this money and really changed the behavior of what is

happening in those buildings. we are here to celebrate that work. we had $3 million of this money from the stimulus funds. we are updating fluorescent let's -- lance and replacing them with modern efficient versions. we are updating the outside air economizers, as we call them, which is a nice way of bringing the frog inside buildings and cooling it down. we spend this money on time, which is difficult to do for some places in the united states, but the goal was to spend a certain amount of money by this last june. we have already spent 80%. we are completely on target to spend all the money by next august, which is the requirement of the program. we have also created jobs. we have over 12,000 labor hours. it is a wonderful success.

we have been doing a lot of energy efficiency programs peer this extra money allowed us to step up and do even more of those, so we are pleased about that. in the last 10 years, in total, the puc has saved a total 40,000 megawatt hours per year, enough to power 5000 homes. it is a wonderful program. it is really pretty simple. we are reducing greenhouse gas emissions, saving the city money, and improving the performance of facilities like this, so what could be better than that? thank you for joining us in that today. i would like to introduce our mayor to save a few words. [applause] mayor lee: thank you. thank you for your stewardship of this program but also the whole pc. we appreciate your mindset, your attitude to go forward and really help our city in all of this energy use. i also want to welcome you to the arts commission. we are here at our mission cultural center, and it is one

of the buildings the city owns, but amongst the 10 buildings the city owns, you should see the diversity of where these buildings are. community health centers, other cultural centers pierre the arts and is very enthusiastic about this center because it houses so much. after november 8, i can do the salsa. a? but thank you. there are so many people that visit the center every single day, and they, along with our arts commission, art lovers, just get to appreciate the cultural historic art that is presented here, both in its visual and performing, but it is functional buildings like this that i want to really express my thanks to the department of energy and dr. kelly is here today as the acting assistant

secretary to verify, if you will, our city's appropriate use of this money. and, of course, supervisor campos is here today. he and i have been on many walks throughout our community. not only for public safety issues but also, i think, for both of us, it is just the pure enjoyment of being in our neighborhoods. we love to see our buildings updated as they are. there is an update on the boilers, the furnace, the air economizers, as they say. we do not really have air- conditioning in our great city. we have air economizes to freshen the air. to the lighting fixtures where if the rams are not being used, why are we wasting energy in that respect? our health centers, our

community centers, 10 of them, and the smart thing cpuc did with this energy efficiency team, they did the auditing, so they knew what the base line was and how we would measure the improvement, and i want to talk about them. they have been doing this not just from went and that money came in. barbara hail -- hale, others, you are part of that energy efficient team, and i want to express my thanks for working with the rest of the city and the building owners and everyone working together, because it is with those audits, and then wit and a great mind, to bring down what could have been in large single contract, we broke it down to represent opportunities, something the supervisors and i have been working on, and that resulted in 76 bay area workers getting jobs. that is that we use our federal

money not in it -- not only in a responsible way, the money we were rewarded, but we use it even more responsibly. we kick up the standard by engaging the people who use the building in their habits and their culture and using it. it can be improved, and then we use our ability to contract out, and the puc contract in the 42 suggest this could be done by many more people involved, and guess what? we have that many more people who are trained to this kind of building improvement, so you look at all of that, and you say it got started with president obama, to stimulate. it was not to do everything. it was to stimulate the economy, and we took that word "stimulate" in a very specific way, and we stimulated our neighborhoods and our art and

our culture, and we stimulated our job ability. that is what this whole program was about, and i think is another example of how san francisco does it not only the right way but even a better way, so thank you very much for everyone coming here to celebrate. [applause] >> thank you, mayor. next, we want to introduce the acting undersecretary. thank you very much. from the department of energy. >> assistant secretary tree you have to keep your washington vocabulary correct. that's right. anyway, thank you. thank you, mayor, and thanks to the cultural center for inviting us. it is a wonderful opportunity to see how san francisco has been created in the way it has been able to use its recovery act money. the recovery act, of course, as

the mayor said, was designed to stimulate economic growth, and clean energy, of course, is a key part of that, and the things you are doing here are a wonderful example. altogether with the recovery act, we put something like $12 billion into upgrades. more than 2300 grants to cities and counties around the country, and that includes 306 grants to the state of california, for a total over $700 million, and that money has been put to very, very good use. one of the things we tried to do was create flexibility so that they could design and the most effective way to use it in their local communities, and the way that san francisco has chosen to do this is an example of when you let people be creative. it is a marvelous example of what can be done, but nationwide, we are very proud with what we have been able to do. we are creeping up on having to

retrofit many homes, saving the average homeowner $400 per home, and that is per year. for a total savings to the homeowners of about $200 billion. we have also in the process created over 24,000 jobs. they are offered jobs with continuity. people have picked up skills that will be very important to them. our goal was to get 1 million homes retrofitted with the recovery that. there are 125 million homes left out there, so we are not going to be running out of work. we have also upgraded commercial building space and put in 156 megawatts. this is all under this recovery act. this has been a very significant clean energy

investment for the whole country, and it is important to the whole national energy economy and achieving our environmental goals, because buildings alone are 40% of all u.s. energy and a certain percentage of all u.s. electricity, and the irony is you have a very fine and sophisticated energy generating industry, providing 70% of their energy into structures that are not sophisticated in the way they use the energy, so the good news is there is a huge amount of opportunity to do this. the other theme is that in addition to being able to provide a cost-effective way to meet our energy and other goals, it is a very strong driver of economic growth, and for clean energy, it is central to the economic future, and there are at least two reasons for that.

when you are just achieving productivity, you are putting money in the hands of home numbers because there electric in utility bills are there. you make government buildings and commercial buildings more productive. companies can be spending that money on other things. the second thing you can do is that the industries associated with clean energy themselves are major economic drivers. energy is a $1 trillion industry, and nationwide, it is about four or four -- or five times that big. investments like the ones we have seen in the recovery act make me real confident that america is going to be at the head of the world clean energy revolution, not only leaving in technology but also leading in business growth and job

creation, and what has happened right here in san francisco is an example. it was imaginative and intelligent and the way it designed and used to the energy, but it was also very creative in the way it managed the project and was able to draw the best technical support from utilities and also create a contract in an environment that allowed you to hire people locally, so i am here from the department to congratulate you. thanks to the mayor and to san francisco. [applause] >> thank you, mr. kelly. it is amazing what an lined leadership can do, so we appreciate that. aside from the mayor who is here, there is our supervisor in this area, supervisor campos.