the third thing that we started to institute, i think that we have been taking what we were being fed in the past. we have tried to institute that at the end of the meeting, we are sitting down and having a discussion, the advanced calendar, the things that are important to the pc, the commission, as well as other interests, to try to lay out the agenda for the next meeting as well as forward moving. in our next meeting, which is tomorrow, we are going to start having some general discussions on community benefits. people will be coming in from -- sorry, we have -- [inaudible] yes, we have someone from the office of economic workforce

development coming in to talk about jobs as they relate to community benefits. what it means and whether it is art work, gardens, local jobs, kind of setting a framework. there is a little bit more of that and hopefully we can all courtney together. that is about it. questions? >> thank you. your first address to this is in the commission of this building. the clean water impact on the community, more of them -- the more the water system does, the more the power system does.

this is the community and i encourage you to stick around, if you can. listen to what this community wants. thank you for coming. blacks thank you. >> please call item no. 9. >> consent colander -- calendar. it will be acted upon by the commission. there will be no separate discussion of these items unless the public or members of the commission so request, at which time they will be removed from the consent caught calendar and considered separate items. a, except the work performed by the national electric coil and power funded contract to approved modification #3,

resulting in a decrease to the original contract and authorizing final payment in the amount of $237,267. b, approve modification no. 1 to power enterprise-funded contract no. hh-943, job order contract major electrical work for hetch hetchy water & power facilities (c-10 license), newark to hetch hetchy, with wilson utility construction company, for a time extension of one year, for a total contract duration of three years, as allowed for joc agreements under the city's administrative code. modification of this contract will continue ongoing high- voltage and hydro-generation powerhouse work for hhwp facilities. c, approve modification no. 2 to contract no. ww-514r, southeast water pollution control plant medium voltage system reliability upgrades, with ntk construction, inc., funded by the wastewater enterprise five- year capital improvement program, increasing the contract

amount by $15,509, for a total contract amount of $2,161,146, and extending the contract duration by 240 consecutive calendar days, for a total contract duration of 510 consecutive calendar days. the modification is requested to install additional conduits for three compressors associated with the oxygen plant and provide additional time to complete the contract's intended scope of work during the next available dry weather period. d, approve modification no. 1 to enterprise-funded contract no. joc-32, job order contract, general engineering (a-license), san francisco/peninsula/ east bay/hetch hetchy, with yerba buena engineering and construction, inc., to accomplish general engineering construction work for all san francisco public utilities commission enterprise operations and bureaus, increasing the contract by $2,500,000 for a total contract amount of $7,500,000, and with a time extension of two years for a total contract duration of five years, as allowed for joc contracts under the sf administrative code. e, accept work performed by ascent elevator services for wastewater enterprise renewal and replacement program-funded contract no. ww-472, wastewater enterprise elevator maintenance, for a total contract amount of $458,668 and a total contract duration of 1,195 consecutive calendar days; and authorize final payment to the contractor. f, accept work performed by a.

ruiz construction for wastewater enterprise, renewal and replacement program and department of public works (dpw) pavement renovation program- funded contract no. ww-495, bush street sewer replacement/ rehabilitation and pavement renovation, for a total contract amount of $2,217,760 (of which $1,833,934 is funded by wwe and $383,826 is funded by dpw) and with a total contract duration of 207 consecutive calendar days; and authorize final payment to the contractor. g, accept work performed by a. ruiz construction for wastewater enterprise, renewal and replacement program and department of public works (dpw) pavement renovation program- funded contract no. ww-495, bush street sewer replacement/ rehabilitation and pavement renovation, for a total contract amount of $2,217,760 (of which $1,833,934 is funded by wwe and $383,826 is funded by dpw) and with a total contract duration of 207 consecutive calendar days; and authorize final payment to the contractor. approve the selection of mlok consulting, inc. (mlok) and westland management solutions, inc. (wms); and award two contracts, agreement nos. cs- 224a and b, system integration and support services - related to project controls, to provide the san francisco public utilities commission with specialized system integration and support services to implement and improve the delivery of its capital improvement programs and capital projects for all enterprises; and authorize the general

manager to negotiate and execute a professional services agreement with both: mlok (cs- 224a) and wms (cs-224b). each contract award will be for an amount not-to-exceed $4,500,000, and a duration of six years. funding for these contracts will be provided through capital program and project appropriations annually as part of the budget. h, approve the plans and specifications, and award wastewater enterprise (wwe), renewal and replacement program- funded and department of public works (dpw) pavement renovation program-funded contract no. ww- 502, laurel heights/haight districts sewer replacement and pavement renovation, in the amount of $2,432,302 (of which $1,709,169 is funded by wwe and $723,133 is funded by dpw), to the lowest, qualified, responsible and responsive bidder, harty pipelines, to replace the existing sewers and street pavement on various streets in the laurel heights and haight districts of san francisco. >> thank you. is there any item that should be pulled off consent calendar? commissioner? seeing no one, do i have a motion? motion? >> so moved. >> moved and seconded. all of those in favor? aye. opposed? the item carries. madam secretary? item number 10. >> item number 10.

authorize the issuance of a principal amount of $692 million in a new water revenue bonds under propositions a andy to fund the water system improvement program and settlement costs and achieve ratepayer savings and refunding is related to outstanding water enterprise revenue bonds. >> we have a total of 22 series a bonds over the last four years totaling $4 billion worth of borrowing at what has been some of the lowest cost borrowing in this it -- history of the city. employees today have updated all the documents for our water system improvement borrowing, as well as a series of federal reimbursement bonds, as well as looking at every outstanding bonds to achieve ratepayer savings to keep the monthly bills as low as possible.

the presentation of the packet around page 469, i will walk through those slides. approval is before you today. it will next go to budget and finance committee in the board of supervisors, like all the previous revenue bond sales that you looked at recently. it will be a competitive sale in late may. closing as we need the cash around the middle of june. weekly spending between 5 million and $35 million. it will be done every week between 5 million and $35 million for important capital investments. we are proposing further borrowing to pay for those contracts in recent awards. the majority of the borrowing is our program set at $675 million. optimization would be another

feed approved by voters in 2002, consistent with all the borrowing we have done in the past for the water enterprise. 84 cents of every dollar goes directly to putting people to work into jobs and construction improvements. the rest of the necessary costs associated with on services -- bond services, as well as other financing costs. a packet of 400 pages is very familiar, but this one has 37 series a bonds. we have a 16th, 17th, and 18th supplemental indenture. u.s. need for updates on each of the financing reserves and private use activity. we continue to be maximizing debt service reserves as far as borrowed money.

as far as insurance vehicles, there is no longer gray market since the meltdown. borrowing debts very cheaply, this is still an economic way to borrow for ratepayers and doing the best that we cannot buy them. this will score additional savings for ratepayers by qualifying for some tax-exempt borrowing through the state of california voluntary cap program. a lot of issuers out there have redevelopment agency's with a great deal of borrowing capacity that has gone on you lies. -- un-utilized. we will attic -- allocate $70 million in tax exemption. i would like to thank the debt manager and our cfo, as well as

the whole team, for all of their work in the discovery council, as well as others on the financing team. >> commissioner? >> we would achieve around 4.5% if we were to sell today. which is very good. >> it is. additionally, of what is the debt service on 692? >> the average, let me but be -- let me just pull on that for a second. >> i have a question. i see that we are allocating 17 million to legal costs. how is there justification for

this money? >> we are eligible to get reimbursements for what we have paved with cash. because of the inexpensive borrowing at this point, it makes sense for us to reimburse that in use the cash for other capital spending. >> it is not legal expenses. it is the settlement of the mitchell case the we are bond funding. it is not attorney fees, it is the settlement from a couple of months ago. raising rates this year to pay for that. >> if i may go back to the commissioners questioned, the debt service, annual debt service, will be $46.2 million on the improvement -- improvement program.

let's for how much? >> for lease program of $636 million. for the settlement reimbursement, it is approximately $2 million per year. >> do you anticipate to sell? how close are you going to get? >> the bonds are very well sought after, given the fact that $7 billion in redemptions are coming to market. there is a very much of lower amount of issuers with these redevelopment agencies. we would expect that some borrowers would want to buy more. we have provided for this capacity, but in the event that they are aggressively buying and want to upsize, we could do that. >> how would you characterize

the demographics of bond buyers of san francisco? >> very large institutions. when we sell capital investment revenue bonds in the competitive market, buyers have to register ahead of time. >> there are few individual buyers? >> there are no individual buyers. >> at all? >> there are none. you have to buy the whole $600 million or nothing. it is usually bank of america or deutsche bank buying for their investors. their investors are benefiting from the mutual funds and retirement funds that they manage. that is different from a negotiated sale, which has a subscription where you are reaching out to settle the business locally for individual investors. >> as a comparison, a% are purchased by individuals. >> is that right?

>> 80% in the hopes that it will find some use. thank you. >> thank you. commissioner? >> i would just like to thank you for getting the materials out. we have received the package. we got it on thursday. it is a tremendous help, especially for something like this, where the due diligence was so high. thank you for that extra time, and thank you to the secretary as well for making that happen. any further questions from the commission? any public comment? seeing no one, could i have a motion? >> moved. >> moved and seconded. all of those in favor? opposed? the item carries. madam secretary, please call

item 11. >> item 11. authorize the general manager of the san francisco public utilities commission to execute a collection agreement with the united states forest service (forest service) for the sfpuc to fund work by forest service staff, including environmental analyses, value consultation and land title services, and preparation of a feasibility analysis (collectively preparatory work) for acquisition by the sfpuc of 25.2 acres of land at camp mather, in tuolumne county, for an amount not to exceed $60,000 and a duration of 30 months. the sfpuc seeks to purchase the existing camp mather sewage leach field site, and additional road access areas used to service the camp mather water system. >> mr. ritchie? >> commissioners, this is actually a very simple item for us to put into place. the agreement from the u.s. forest service to pay for environmental review relative to standard procedures for us to do that. the lands would be for us to buy the field site, which is well leong, the camp itself, but not the field to provide road access to service the water system up

there. this would be a holding to make sure that we own will we would be rebuilding in the leach field. >> this will ultimately result in a land swap? >> or a purchase. the proposal is to buy a swap. >> if it is, do we have to identify the land? >> we have been talking to them for a while about buying parcels that would make it suitable for both of us. >> not always an easy outfit to work with. i am pleased. >> it is good that we are making progress, yes. commissioners? >> thank you. any -- first of all, do i have a motion? >> moved. >> second. >> moved and seconded. public comment? seeing no one, those in favor? aye.

opposed? the item carries. madam secretary, item number 12. >> item number 12. authorize the general manager of the san francisco public utilities commission, or his designee to approve a license agreement between the city and county of san francisco, through the sfpuc, and c5 children's school, for use of a portion of the ground floor, the whole of the intermediate floor, and outdoor space of 525 golden gate avenue, san francisco, as a child care center. the license will extend for an initial term of one year, and will automatically renew at the end of the initial term on an annual basis, but not beyond eight years, with either party having the right to terminate by providing at least 120 days advance written notice to the other. >> commissioners, we have the project director. >> the evening, commissioners. before you is the license agreement. we did rfp with two respondents. this -- the selected provider was that the cpuc building at mcalester. the directors are here if you

have any questions. the state to return renews annually for a not to exceed term of eight years. they will be serving infants, toddlers, and free schools. we hope to have a capacity of 66 children. if you have any questions, i will be happy to answer them. >> i had one question. i wondered if there was room for other city employees. do you have a sense of how many infants, toddlers, and preschoolers there are? >> we did do a survey of employees in we had over 100 people respond as interested in the services. they did indicate the age group. there is obviously a much higher demand for infants than other groups. it probably does not match the

demand. there are indications that there are a lot of the employees very interested. according to the survey, we have more than 100% interested in the services. >> what are the hours? >> we are still kind of finalizing that. we are talking about 8:00 until 6:00. >> thank you. let's thank you. could i have a motion? wax so move. >> second. >> any public comment? please. >> [inaudible]

[inaudible] >> thank you. >> i do have the amounts per age group. so, an infant on a monthly basis is 1944, a toddler is 1664. that compares with the other child care center -- centers in the city area. it is the same amount. it is a lot. >> any other public comment? thank you, we have a motion in a second. all those in favor? aye. opposed? the item carries.

that concludes the regular portion of the agenda. the next portion, the special meeting is an agenda for 5:30, meaning it is one of those things we cannot start before then. i was hoping we would have this time. we have the opportunity and we will be talking about the use of this building in general. we had the opportunity to take commissioners through the building. mr. general manager, how should we proceed? >> mr. murray, are there any members of the public that would like to come forward? we would welcome someone to come forward. we will be on break until 5:30. >> four commissioners? >> stay right up here. >> thank you very much. this meeting is -- what are w

>> let me reconvene the meeting of the public utilities commission. we are pleased to be joined by the commission of the southeast facilities utility. >> madame secretary, can you call the role for the commission, please?

we have a quorum. >> thank you. >> as our first order of business, we wanted to have some opening comments by myself and by the president of the southeast community facility commission really to set the stage for what we're having today. we are here to listen today. there is nothing on the agenda that is an action item today. we are considering a report that was drafted for the use of this facility over the long term and we're making some changes. our intent is to reflect the needs and desires of the community.

we need to hear from you to make sure that we have it right. we have no particular agenda except that we wanted to do the right thing and make sure that we reflect the needs of this community. that is all i have to start out with. >> we want to welcome everyone. we wish that you can not like this when we have our regular meeting. it is so nice to have the community involved. we would like to set some rules, especially when it comes to the public comment. there is only three minutes each because there are many of you here that wish to speak. so, we will do three minutes. as you know, anything that you talked about or suggest on the public comment that is not

listed, those may not be listed on the agenda. when things are not on the agenda, these are an action item and we cannot take any action on anything that is not listed. if you would be so kind as to follow the rules today, it would make it much easier for everyone and i want to thank you for coming. if we should say to the public utilities commission, we thank them for joining us at this meeting because they brought some things today, maybe some of you were not aware of the bonds

and all of that. thank you, members of the public utilities commission the director, all of the members. the young people that we have talked to for a long time i look forward to the presentation today and i think that you would enjoy that. i think that we will start the agenda. we're not going to follow the agenda, per say. >> we have discussed the order of business and if there is not an objection by either of the commission's, what we would like to do is to hear about the 99 program. we have a lot of people who are part of that program. then, proceed to item 15 which

is the discussion about the use of this facility and then proceed to public comment after that. if you can call item 16. >> overview of the 9910 program and the introduction of the clause, 2010. >> as we get into those, let me just say that some of us will be eating in front of you and i hate to do that but i hate more to let this good food go to waste and this is an opportunity to give another shouted out to spice it up catering for providing this food. >> good evening, commissioners and members of the public. i will be talking about our 9910

program. this program has existed here for the waste water enterprise since 1980. this is a program where we bring in the people from the community and we give them a two-year training program to ask the engineering program to become an apprentice. what you see before you is this year's class. i would like to have them stand up and be recognized. our program this year, there were 1200 applicants and we hired about 700 of those. -- we hired about seven of those.