question of what happens when we have a failure. the worst-case scenario is we would have wastewater build up in the system along the shoreline, but it will overflow if we do not get the name to be operational in a very quick time frame, which usually is within -- we're looking at probably about 12 to 18 hours for us to be able to handle any kind of rupture. supervisor chu: just to clarify, if there is a rupture, you have about 12 hours or so roughly to fix it? otherwise, the backup or the storage capacity you have along the waterfront there would not be able to handle it? you would start to see spillage into the bay? >> a depends on the system capacity at the time of the failure. if we have what we call it the

embarcadero road way, we have boxes, big boxes under there. i of those boxes are relatively and become a we have more storage capacity that will give us a little more time -- if those boxes are relatively and the -- i of those boxes are relatively -- if those boxes are relatively empty, we have more storage capacity. as with the board that there will be additional benefits we hope to address from flooding in low-lying areas in the south of market area, and we believe that that is going to be benefiting our entire system for the channel and click basis, which pretty much cover all the way down to the county line, so i just wanted to point that out. it is a very large area we want to address with this project.

all the waste water flows pretty much flow down into the system where we collect and capture that. supervisor chu: from the budget analyst report, i just wanted to understand -- the current system is a pumping system, is that correct? the change would be to a gravity-led system? >> that is one of the alternatives we are looking at, not relying on another mechanical pumping system, but instead a deep gravity tunnel, gravity system from the location of the channel called station all the way to the southeast plant. supervisor chu: that is not something that has been determined yet, but it is an option? >> this is something we want to go through the engineering and planning to make sure it is the right alternative for us. we do not want for you to decide any options right now. all options are on the table.

we are really excited as part of this project that we would be able to provide some community benefits. that includes almost $1 million of funding for cash contributions to the community based on non-profits and also $850 worth of volunteer labor hours. that was proposed by the consulting team. it was not required. we ask the consulting team for what they could do as part of the community benefits policy to provide a benefit to us as part of performing work on this contract, and that was what they propose. it is not a cost we would pick for our other contract. it is not a cost that we would pay the consulting team. with that, i hope that we

covered the most important items here, and i would be happy to answer any questions you may have. supervisor chu: thank you. i do have just a few questions with regards to the impact to ratepayers. can you speak generally to what the $30 million would cost to people's store bills on an average basis. >> for the $30 million contract amount, so we finance the cost over 30 years, and that is how will will be funding this work, it will be paid for by bond. assuming a borrowing cost of 5% over 30 years, we expect that the average san francisco ratepayer would have to pay about 34 cents more per month over 30 years. these amounts have already been included in the approved wastewater rates. that is in place through fiscal year 2013-2014.

supervisor chu: currently, are you folks generally seen in bonds issued at a more preferable rate than 5%? >> the commercial paper, the bonds we have gotten much more favorable rates previously in the past year, but we do not know what the future will hold. right now, we are projecting five%. supervisor chu: with regard to the community benefit component, i wanted to spend a little more time on that piece of it. many of us would agree that having community benefits from a contractor is good, a very positive thing. one of the things that i'm concerned about in this, and perhaps you could explain this, is that you are using a bond in order to pay for this project, so to the extent that you have a bond paying for a community benefit, that would not technically be legal. i think you started to mention that the costs are not borne by this contract. it is something the contractors are doing above and beyond.

can you explain this a little bit better? and i guess, this is not a cost -- >> yes, this is not a cost we would pay for the contractor. it is purely for contributions and volunteer hours that they would do outside of the invoicing for payment of the contract, so it is not addressed in the 30-million-dollar contract amount -- $30 million contract amount at all. as far as the legality of the community benefits program, we have had discussions with the city attorney's office that have been reviewed by the city attorney's office carefully, and i believe that it was perfectly for us to incorporate this requirement in our contract, for the proposal to provide community benefits that would be of benefit to the entire city.

supervisor chu: i see that mr. kelly would like to add a few words. i even speak to the general request. how is it we have gone forward with requesting or asking different contractors about what their community contributions are? >> assistant general manager for the san francisco public utilities. one of the things that as part of our community benefits that we wanted to look at that we have all these consultants and contractors doing work for the puc. what we wanted to do was ask every consultant that worked with us what they can do to help the community that is no cost to the project or to the puc. we are finding a lot of consultants will donate time and donate proceeds because they typically give money away for different causes, and they will get it and participate with the puc. this is the second time we have

included it into our contract theory the first time was on the store system improvement program, program management contract, which was $150 million, and they came up with a three-prong approach. they said they would hire 15 students the day -- i mean, a summer, for the summer, and work on various parts of their consulting contracts. the second thing they will say -- they were willing to do is teach hours in our contract assistance center on the cost of putting the proposal together, doing cost estimating. they will fall into those hours. the third was to help build capacity of the lbe's on their team. this is really no cost to the contractor or the puc. we felt that if you do not ask, you shall not receive, and all this is good work that they are willing to do, and it would

probably give it to someone else, so we are asking what they can do as part of helping us get back to the citizens that we serve. supervisor chu: how are you able to determine that there is no cost to the puc on these community items? >> another component of our selection process is that we do overhead and profit. basically, they propose what their overhead rates, which will include services that they cannot directly charged to the project. this team and other teams, we have what the rates should be, and if you are below a certain rate, you get certain points. as long as most of the vendors -- this matter gave us a very favorable overhead rate, which was lower than any other contract we had received. supervisor chu: thank you. why don't we go to the budget

analyst report? them the proposed resolution would approve a nine-year contract for professional services engineering services with a joint venture of and not to exceed amount of $30 million. the contractor was selected our rfp process. we recommended amending the proposed resolution, following up on the discussion you just had with mr. kelly, to require puc to submit a written report at least annually to the board of supervisors on the community benefit program, starting in 2014 once the community benefit program is up and running, basically to really spell out who the cash contribution is going to, how much has gone to them, and what it is for pure also, giving 850,000 hours in a volunteer labor, and again to spell out what the program is,

who is providing these hours, with the hours are being contributed to, what it is that they are doing so that the board gets, you know, satisfactory information on this program. we recommend approving the resolution as amended. supervisor chu: thank you very much for that. are there any other members of the public wish to speak on item 5? seeing none, public comment is closed. colleagues, to the item. supervisor avalos: motion to accept. supervisor chu: ok, we have a motion to accept the budget analyst recommendation to move the item forward as an end to the may 15 meeting as a committee report, and we can do that without objection. thank you very much. if you could, with the amended language, said that new legislation reflective of the reporting requirement to our car, i think by noon tomorrow -- monday, sorry. -- reflective of the reporting requirement to our clerk.

ok, final item, 6. >> item 6, ordinance amending the san francisco administrative code to set a threshold of $100,000 or more for board of supervisors approval of the acceptance and expenditure of grants or increases in grants. supervisor chu: thank you very much. >> good afternoon, supervisors. i'm with the officer's supervisor wiener, who was unable to attend this afternoon. legislation allows the province to accept and amend grants legislatively when they are less than $100,000. last week at the budget committee hearing, amendments were considered to the legislation that would also allow departments to accept increases to grants as long as cumulatively the grant amount did not exceed $100,000. additionally, any increase to a grant that has been previously accepted by the board of

supervisors could also be excepted administratively controller guidelines as long as the increase was less than $50,000. that was discussed at the last committee hearing. we are not offering additional amendments. on behalf of the supervisor, i ask that the legislation be forwarded to the full board as a committee report with a positive recommendation. thank you. supervisor chu: thank you very much. again, the item was continued from a previous meeting where we did take an amendment. i did not believe there is any budget analyst report on this item. if there are no questions, i will open up for public comment period are the members of the public who wish to speak on item 6? seeing none, public comment is closed. colleagues, to the item. supervisor kim: motion to approve the committee report. supervisor chu: we have a motion to send the item forward. we can do that without objection. thank you. we have any other items before us? >> that completes the agenda. supervisor chu: thank you.

we are adjourned. >> i should not be on stage. when you should be seeing -- i am used to the stage but not. that is who should be on stage. i am an animator. i am with picks are animation studios. in some ways, i felt comfortable being on stayed behind my computer. it is weird for me to be on the microphone.

i have a lot of work to do but i am here to explain that, i'll come to that later. i wanted knowledge some of our special guests this morning. first off, i have some flashcards. how wanted acknowledged and the asian art museum director jay tsu. when i think of jay hsu, i think, aka dr. j. he is master of the universe. also, i never thought had -- would have the opportunity to introduce the mayor of san francisco, mayor ed lee.

i just a to introduce the mayor. that is awesome. we also have a bunch of other special guests today. i would also like to introduce david chiu, president of the board of supervisors. thank you for coming. the mayor does not come along. he has a policy. supervisor carmen chu is also with us. we are also lucky enough to have supervisor mark farrell as well. maybe he is having a pastry or something. there is a lot of traffic between here and city hall. that is a bad joke, i know. we also have supervisor eric mar here with us this morning. all the supervisors are sitting

together. we are also lucky enough to have the chief of protocol for the city of san francisco charlotte schultz. last but not least, we have tony sun, chair of the asian arts commission. that's good started this morning. i am going to get off the stage and and things off over to jay hsu. he is going to tell us a little bit more about what we're doing today. >> someone needs to hand me the remote. terrific. brand implementation is a journey. the asian art museum embarks on

a new journey. to reinvent ourselves, to engage a broad audience. the broad audience is very much at the core of what we do here and who we are. why now, you ask? as the aging world influence grows, so is understanding its culture. more than half of the global population lives in the asia. to look at our own san francisco bay area, one third of the population are of asian descent. also, a challenging economy offers us the opportunity to take advantage by being bold and taking risks. we need to increase our impact and by doing so, increasing revenue. also, a successful restructuring of our long-term debt.

that took place earlier this year and has put the museum on sound financial footing. on that note, i would like to thank the city leaders for leading the effort and working with our newseum team in finding solutions. today, i am particularly happy to say, at this moment in history, we have an asian mayor, asian president of the board of supervisors, and an asian commissioner for budget and finance. [applause] any successful brand always starts with a strong vision, and we do have a vision. with asia as our lands and aren't as our cornerstone, we start connections across cultures and for time. in other words, asia is our focus, but our per view is

global. one single important word in our vision is connection. making connections. we particularly explore connections in two dimensions. we want to connect cultures within asia and also connect culture is globally. asia and the rest of the world. the other dimension is connecting the past with the present and future. in other words, connecting the historic arts to the contemporary arts of today. for our visitors, we translate our vision into our brand promise, which i want all of you to remember when you leave the building. the past is never static. the past is full of potential for new discovery, new knowledge.

our programs are to unlock the great potential of the past, to find a new perspective. to look at the past with today's perspective, today's questions, so that we can learn more from the past. in doing so, we want to inspire the creativity for our program, the creativity that exists within every one of us, to create new conversations, new questions. awaken the past, inspire the next. in doing so, we want to appeal to our lovers and art newbies. in other words, the museum is for everyone. whether you are local or far away. no matter your interest is in

asia or elsewhere in the world, everybody has a connection. we want to make those connections and discoveries. let me give you one example of how we have started to implement our brand and to realize our brand promise for our visitors. across all you will see an exhibition of exquisite korean ceramics dating from the 15th and 16th century, as we all would display our works of art and the most beautiful of manners, so that our visitors can enjoy the beauty and style of those people. at the same time and, for the first time in our history, we have built a new contemporary dimension to the exhibition. the curator has included work from sample -- several contemporary caribbean artists, ranging from photography to installations, too surprising

media that somebody may or may not realize, all of this that you see is made out of soap. this brings up a question, what is a sense of permanence say? looking at the contemporary art enables us to reflect on the timeless pieces of the 15th and 16th century with new questions, new perspectives. likewise, looking at that contemporary art in the context of the traditional art, we can ask the question, how is art today? what inspires us about tradition? in other words, awaken and inspire. so we will do a lot more along these lines.

in doing so, our focus has started to shift from art objects to an experience centered around art. art is at the core of who we are, but want to create a new engaging experience that allows us to connect art to life, connecting to our individual needs. the branding is really about transforming the institution, how we do our business, but most importantly, how we serve our visitors. how we create a new experience, how we engage our individuals to have individualized experiences. one part of our brand identity is our visual identity. we want that to reflect what our brand is. particularly, three qualities. we want our visual identity to convey that, one, our brand

offers a new perspective. second, we are forward and confident. the third, the asian art museum in bites all to engage. in other words, the asian art museum is for all people. offering a new perspective that is bold and confident but inviting everyone to engage. now it is time to unveil at our new visual identity. may i invite the mayor and our board chair tony to join me in cutting the ribbon. >> wow. it is time. as these folks get in place, i am going to count down. we are all going to say asian altogether. get ready with your scissors. i am going to begin my countdown.

3, 2, 1. asian. wow. [applause] >> now that the mayor and board chair has helped us through

this point, may i invite them up for some pictures? >> thank you, mr. mayor. thank you, tony. let me repeat once again the three qualities we want our visual identity to convey. a new perspective, bold and confident, and asian arts museum invites all to engage.

as you may know, this inverted market is from a mathematical science known as a universal quantifier. we whaant everyone to know thate are here to engage you. we want to awaken and inspire. let me show you a couple of examples of how you can use this. we have window treatment for everyone. and then we have a new visitor'' guide, a new membership material, a new look. you can take us with you. and also, out and about. i still strongly about this market because it is very versa tile. you can superimpose images from diverse cultures coming asian,

not asian, and we can use this in a powerful way. imagine, we can even commissioned artists to do a rendition of this as a sculpture. and the possibilities. before i invite the marriage to give our audience his thoughts, that also -- may also asked take some pictures please?