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tv   [untitled]    July 7, 2012 9:30am-10:00am PDT

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specification and award the contract for the reservoir rehabilitation and seismic upgrade in the amount of 27,000,004 under and $53,000 to the lowest, qualified, responsible, and responsive better. -- bidder. sj amoroso. president moran: this is another case of disappointment where we have to contractors that presumably should know better, failing to meet the requirements of the documentation. my understanding is that we have pretty extensive outreach processes had people in place to help make sure the contractors get it right. what happened? >> one of the two -- both contractors, but what especially had done a lot of work for us.
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i personally was not part of the finding that the first two were actually not in compliance with the requirements. there may be specifics that she would like to share with us. >> i am i the, manager of the bureawe had the first two biddee not qualified because of hrc. this is the first time that one of them has not been able to comply. we are making a direct our region and helping to bring the men to really walk them through, step by step, and a partner to make sure that something like this doesn't happen in the future. we modified via administrative code and agency rules and
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regulations to try to help contractors with a good faith outreach effort. most of the time it works really well, this is just an instance where they did not complete good faith out reach sufficiently in order to gain the points. >> i would like to say that this has come up in the past and it has been an ongoing problem. the field that they are completely clear on their responsibility? >> again, a couple of these have had specific problems with this before. and because there seemed to be really picky technicalities, we worked to change those things to make it a much more obviously
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good faith claim, not to show up at these three places at the right time. for these kind of contractors, they know the rules. having said that, our bids are involved and difficult, sometimes they miss a few things. president moran: any public comment? can i have a motion? >> i will move it. president moran: and seconded. all in favor? opposed? passes. item 12, please. >> the regional habitat restoration in the amount of $3,912,500 to the lowest,
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qualified, responsible, and risk -- responsive better. president moran: any public comment? do i have a motion? >> no irregularities? dodge there was a protest, but it is not a regular. we sometimes have a protest on these contracts. >> the protest was the night and we have not followed up. president moran: motion and a second, all those in favor? opposed? item 13. >> authorized the general manager to negotiate and execute a joint exercise of powers agreement with the bay shore sanitary district for sewer service from july 1, 2012 to
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june 30, 2025. and to be able to negotiate and execute an expansion of the agreement through september 30, 2012. president moran: i know that he would rather be here instead of hawaii. >> we have for finance items for you today. the first is a rate item that has to do with wholesale services provided to the sanitary district. this item authorizes the general manager to execute and negotiate a new agreement with the district and extends the current agreement by three months to allow us to do that. the first slide it describes the current agreement that is a longstanding one. it was extended by this commissioned a year ago to allow us to conduct an independent rate review that i will describe
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the moment. it equates to about $800,000 a year for the waste water enterprise and represent about half of 1% of the treatment of flow. in terms of the rate study, we spent time with a consultant to look at alternative methods of cost recovery. the study recommended we continue the current process of basing the rate on a proportionate share of costs. we will continue to do that in our proposal. another recommendation was to exclude a mobile collection operating and capital costs. the district has its own collection system that they pass on the costs to the retail customer. and also interestingly, they recommended strength charges as
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we currently do with the non- residential sewer customers so we can allocate costs unfairly as it relates to suspended solids have their treatment. our proposed agreement will take those recommendations from that independent consultant and in particular, looks set excluding the capital costs of the sewer repair and street cleaning costs as the district has a similar cost to pass along. the last slide shows you a comparison between the existing cost allocation and what is being proposed. they're being carried over into the new agreement and we are recommending a complete exclusion of the collection system costs. as well as introducing the
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strength charges. it makes the rate more fair. we're recommending a term to coincide with the other wholesale district which is when their agreement expires. in the existing agreement, the cost allocation is very similar. commissioner caen: why do we have such a long term? i think that is a very long term. >> we have to relatively large flows of perspective and customers south of the city. both customers would like to have the agreement to be fairly
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similar. the existing agreement expires in 2025, so the intent is to make them both expire at the same time so we can negotiate together. it was approved in the '90s. >> i think that typically, they would want even longer because if they were going to have to find their own way of treating sewage, it would be a much bigger discussion and much longer term. president moran: commissioners? is there any public comment? do i have a motion? tmoved and seconded. the motion carries.
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>> item 14, to authorize the issuance of their principal amount of up to $35 million in refunding water revenue bonds, approving the form and authorizing execution and delivery of documents. authorize the general manager to sell one series of bonds of either a negotiated or competitive basis as he determines is in the best financial interest of the sfpuc and award the series of bonds to the highest bidder. president moran: can we have both items called? >> 15 and 16 are related, this is not. president moran: proceed. >> this item, after last month's successful water bond sale, we have a reaction for the 2012 year.
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this $35 million in bonds issued in 2002, we were not able to do this last month because we were not within the legal window in order to do so. this is why this one is a little bit of a straggler. if i could go to the slides, please, this talks a little bit about the terms of the proposed transactions. this is different than the competitive sale method we use recently because of the relatively small sales size and the shorter duration. we can adjust market timing to lock in the highest savings possible. we planned to have the sale in july. traditional tax-exempt revenue bonds of $35 million.
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the current rates of the bonds y=fe are bringing them down to the current rates. the sale today would be closer to the 2% no.. we are requesting authorization for up to 15 years, but we anticipate having maturities of no greater than eight years. the present value savings is about $800,000 over the life of the bond, and we want to make note of the underwriter feed their. -- fee there. the authorization to refund bonds comes in a couple ways. the charter allows us to bring forward savings to the ratepayers when it makes sense, that is what we are presenting you today. we have recently approved authorization of the board of
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funding without additional board approval, so we are presenting to you today this refunding authorization and we will not need to bring this to the board for their approval. the forms of agreement are almost identical to what we showed you a month ago. unless there are questions, i will take your questions. president moran: any questions? any public comment? can i have a motion? it is moved. and seconded. all those in favor? opposed? the motion carries. the items 15 and 16. >> authorize the general manager to enter into separate agreements with the following commercial paper dealers for the waste water enterprise commercial paper program. a u.s. bank, city grew, wells
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fargo, and morgan stanley. the agreements combined include annual costs not to exceed $150,000 for a duration of three years with a couple of additional extension times for one year each. the the general manager is further authorized to select the next lowest cost, if negotiations are otherwise not successful. item 16, authorized the general manager to enter into separate agreements with union bank and the bank of tokyo mitsubishi as the lowest cost, responsive, and responsible bidders to provide credit to secure the 2002 proposition e for the waste water enterprise. the agreement provides $150 million in available credit with annual costs not to exceed $1 million for the duration of three years.
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should be selected banks be unable to meet contract requirements, the general manager is further authorized to select the next lowest cost better. >> as a reminder, the sfpuc has a commercial program for waste water enterprise that serves as the financing option. the first item proposes new dealer agreements with four firms to serve as dealers for the waste water commercial paper. these new agreements are meant to replace the ones expiring next month. we will market our paper to investors at the lowest cost possible. the second item proposes a three-year agreement to support the recently increased waste water commercial paper program. these agreements to serve as a security pledge to the investors in our commercial paper in the event that we are
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not able to repay them. it is essentially security backing for the commercial paper program. the i just have a few slides to share with you. the agreements we have shared with you are essentially identical to the ones we have shared with you previously. there is virtually no change. in terms of the facility, i want to spend time talking to you about this. we have a commercial paper program for waste water enterprise. in december of last year, you approved an increase to the commercial paper program of $150 million of $300 million. in january, we brought forward a new agreement to back the first $150 million program. the facility is working as
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expected. what is before you today are two new agreements for the second $150 million. assuming that action is taken today, we will have the four agreements in place of $75 million each. the slide shows a little bit of a comparison and i want to share this with you. what is being proposed is, in the first column, for union bank agreements for $150 million, it is 0.65%, $975,000 a year. the fee will be covered by the waste water capital program. the term is for three years. i will speak a moment about the downgrade protection. the other two colonies show you
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a comparison of the agreements we have with j.p. morgan and u.s. bank. also with the prior agreement of the water enterprise. as it relates to the bank hundred protection, that is an important thing. they provide us with the ability to terminate the agreement. i want to pause here to reiterate the importance of adequate bank ratings. you may have heard about moody's downgrading several banks last week. we have an agreement with bank of america for $250 million, not what is before you today, but for the water enterprise. because of the downgrade, the
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provision allows us to terminate the agreement. we're currently looking for a replacement credit facility with another bank and will report back to you on replacement alternatives. i want to show you how all diligently are being to keep an eye on these ratings and the action that will take to fix those ratings. it is an important clause that we wanted to make sure was important. >> any questions? is there any public comment? >> so moved. president moran: moved and seconded. all those in favor? opposed? item 17. >> authorizing the general manager to execute a grant
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agreement from about not to exceed $100,000 with the total duration of 12 months to provide a living library at think parts education programs. president moran: thank you. mr. moala. >> good afternoon, commissioners, i'm the general manager for waste water. this particular item as part of the educational process. this is the support for san francisco unified school district. educating kids on the importance of trees and conservation of water. all of those issues. this is an investment for 20 years from now. we feel important about this work, normally, there would be
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one that they want to administer, we felt it was an important piece for as far as educating our kids. president moran: any questions? commissioner caen: great idea. president moran: any public comment. can i take that as a motion? all those in favor? opposed? item 18. >> authorize the general manager to execute a grant agreement with the seventh is the school alliance to not exceed $100,000 during fiscal year 2012-2013 for the related outcomes of the power services and operations to the green school program. >> assistant general manager, this is another educational
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effort. this item would authorize the general manager to execute an agreement with the greens schools alliance. and this partnership to sell more, more intentional educational initiatives to support the placement of members that attend the unified school district. the alliance is going to work really closely with the different enterprises here to be able to identify the benchmarks and out comes that kids kindergarten through fifth grade would experience a based on these members. it is part of a larger effort. we're trying to court made the regional efforts of that we can tell the kindergartners will all learn that. they all go to the waste-water facility. working with the school district, and that is the strategy we are supporting to
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make sure the kids hit out comes tied to priorities. president moran: any questions? commissioner caen: great idea. [laughter] president moran: all those in favor? opposed? item 19. >> of proven and increase the contingency in the amount of $196,454 for $255,867 of up to 84 consecutive calendar days for contract for the waste water facilities efficiency improvements. to authorize the general manager or the designee to improve any further modifications not to exceed $850,000, and for the contract duration not to exceed
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834 consecutive calendar days. >> the item before you is to enable us to complete the energy efficiency and improvements. we packaged it to modify the contingencies of that we don't have to come back for five times for change orders. we are seeking this today, 218 different fixtures that apply for this modification. and have it paid back within eight years. president moran: any questions or public comment? moved and seconded. all those in favor? oppose? we are about to go in the closed session, is there any public comment on matters to be discussed in closed session?
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seeing them, can i have a motion on whether to assert attorney- client privilege? all those in favor? oppose? the item carries. we will now go into -- you need to call the closed session items. >> conference with property negotiator pursuant to the government code section and administrative cudahy. prop. 520, persons negotiating and the other party under negotiations price in terms of payment. conference with legal counsel pursuant to california government code and san francisco on administrative code. item 24, pursuant to a
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government code section 54957. to consider public employee appointment hiring for the position of general manager of the san francisco public the san francisco public utilities commission. president moran: we are back in open session. the commission took no action. could i have a motion regarding whether to disclose? >> motion not to disclose. >> all those in favor? opposed? the motion carries. any other new business? this meeting stands adjourned, thank you.
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i'm the president of friends of mclaren park. it is one of the oldest neighborhood community park groups in san francisco. i give a lot of tours through the park. during those tours, a lot of the folks in the group will think of the park as very scary. it has a lot of hills, there's a lot of dense groves. once you get towards the center of the park you really lose your orientation. you are very much in a remote area. there are a lot of trees that shield your view from the urban setting. you would simply see different groves that gives you a sense of freedom, of being outdoors, not being burdened by the worries of city life. john mclaren had said that golden gate park was too far away. he proposed that we have a park in the south