it's really a safety valve to make sure that our compliance doesn't push costs up unreasonably. president torres, you alluded to the timeline. let me put it up on the screen here so that you can see more specifically where we're at. >> right, that's good for the public to see that. >> yes. >> my other question is in terms of the rps eligible, the renewables, what percentage are we looking at in terms of renewables? we have solar, wind -- >> right. so, now our resource mix is our biogas, our hydro and solar. >> okay. >> and because we have this separate section of the rps law, we don't have to procure beyond those resources except very infrequently. and we are proposing that that procurement be from renewable energy credits. >> so, the way they're titled

would be appropriate? >> they would be. they would be qualified resources under state law. >> if we had -- >> if we had them, yes. >> and we have no geo thermal here? >> correct. we have purchased it in the part, but we do not have any in our portfolio today. >> where do we purchase it from? >> we purchase from the geo thermal system in guyser. >> in guyser ville? >> yes. >> are they acceptible our hydro now? >> yes, commissioner, they are accepting our hydro. yeah, another hooray, that's three in one meeting. [laughter] >> we have -- we were able through the legislative process to explain that were we to have the same rules applied to us, we would just be selling our hydro and substituting in other renewable resources. the objective of the law is to in part to reduce the emissions from power plants. we don't have any power plants

that emit. >> [inaudible]. >> yeah, i have a couple of questions. so, we can't bank the rps resources? >> we can. under the rules, we can -- if we have -- if we do that math equation and we have lots of extra rps compliant power, we can bank those renewable energy credits. you earlier allowed us to register with us the western system that allows folks to have those credits certified in a way that's recognized by the marketplace. we are registering those credits, then, and we can use them ourselves in a subsequent compliance year. so, for example, in this year because last year was wet, 2011 was wet, we had some extra. this year we're going to need to purchase some, but we're also taking some of what we generated last year and applying it to this year. so, we're not having to purchase as much as we otherwise would have. >> and they don't expire?

>> they do expire. under the regulations, they do expire. so, we would either use them or if we projected that we wouldn't need them, we would attempt to sell them before they expire. so, we extract the value one way or the other. >> that was my other question. and then i thought we budgeted in our budget for some additional renewable procurement. >> yes, we do have additional renewable procurement in our budget. some of that capacity, if you will, that financial capacity is absorbed by the power purchase agreement we have with sunset, for the sunset soler output. but we also recognize that even in any year, what we may need may need we exceed forecast. we're looking at the risk management part of our line item to fund these unusual circumstances. >> and when was the last time that we weren't able to meet

our needs? and i know that these rps standards are new, so, maybe we didn't have the same issues. >> we didn't have the same requirement. >> but have we been able to meet our needs with hetch hetchy with our parr? >> there have been times we had to meet short-term purchases in order to meet our needs. and maybe the best way to look at that is to again look at the first background slide i put up where you can see there are some years where a lot of our generation is considerably lower. you could tell that our retail sales pretty much track a wet year. not exactly, but in recent years, sorry, they pretty much track a dry year. so, the dry year line you see on this slide here is about where our retail sales are or have been in the last 10 or so years. and, so, looking at these --

the tail end of this slide here, you can see although years we have plenty of power to cover our retail sales. >> so, one of the things this slide doesn't give you is sort of like that day to day sort of variation that happens. that's an annual sort of like slide. and when you look at it sort of by quarter or by month, great, you have lots of power in april, may, june, and you have very little in september, october, november. until the rain starts and the snow starts again. so, if there is a cycle that kind of goes on and we do do short term purchases in what we call quarter 3 and quarter 4. just to cover, you know, our existing customers. >> and that's why we'd be procuring the recs this year, right? >> yes. this is a lower than normal water year and we've had some outages. >> right. >> thank you very much. >> anybody have any questions? yes, commissioner moran. >> on the -- on page 12 of the

presentation where you talk about the cost limitation proposal. >> yes. >> and you have $100 per megawatt hour. >> yes. >> which is twice what the penalty level is that was set by the cpuc for pg&e. >> yes. >> what is the thinking as to why we doubled that? why do we choose to have a twice what the cpucd? >> one is a penalty is one is a cost limitation. it could certainly be lower if you prefer a lower -- to cap the amount the puc will pay at a lower level, we could. it was really just -- we're just providing that as a benchmark for you to understand sort of some of the context in which we're proposing this number. >> and the market for renewables ranges from currently what to what? >> it's also about 30 to 50 megawatt premium on top of the brown power.

brown power price. >> so, 30 do $50 per megawatt hour premium? >> yes. >> and this says that it would be market -- in case of an adverse market which is probably when we would most likely need to buy this stuff, it gives us some price flexibility there. >> right. to the extent that we are low on hydro -- california is low on hydro, and, so, market prices are going to be up overall as a result. >> thank you. >> what is the impact of the deductions on solar utilization? have we measured that? tax deductions that are -- >> have we measured that? we certainly realize that it lowers the cost. >> right. >> and that's why we pursued a third-party for our development of the sunset solar project. >> okay. >> and didn't fund it ourselves. i can't recall off the top of my head, maybe you do, todd, what the -- mr. reedstrom, what

the financial impact of that was for us. >> it was pretty significant. by way of comparison, the tax credit, tax credit financing that we successfully undertook for current sunset solar brought the average cost per kilowatt hour down to 23-1/2 cents. that compares to average costs of our hydro system. all the costs included of about 9 cents. so, without the tax credit federal financing as well as the state programs, it would have been over 30 cents kilowatt hour. >> you need to take credit for that. >> we have a line item -- >> that's why i try to raise some of these issues because when you and the work that this agency has been doing, i am so proud of the fact that the cost saving that ultimately go to the rate payer, we need to talk about. if we're going to get your trumpet so you can blow your horn, we'll do that. you should be commended because you've been taking into account, you've been a steady

steward of the process and look what it's producing for the rate payer here in san francisco. i'm sure most jurisdictions, knowing some of the mayors in those other jurisdictions, i don't think they've had as good a record as we've had here in san francisco. i want to say thank you. i think it's important to bring it out into the public view. >> thank you. it's definitely a team effort. a lot of detail. >> no question it's a team effort. my comments were directed to the team. any other comments? we don't need to accept anything. [speaker not understood]. >> there's no action. >> right, no action necessary. i guess there is an action necessary to go into executive session, closed session. >> thank you. >> any public comments before we move into closed session? all right, we need a motion to assert the attorney/client privilege. >> move to assert the attorney/client privilege. >> second. all those in favor signify by saying aye. >> aye. >> all right. >> closed session items, item 17, existing litigation lennon versus city and county of san francisco. item 18, existing litigation

cadmin versus city and county of san francisco. item 19, existing claim, chung versus city and county of san francisco. and item 20, existing litigation city and county of san francisco versus pacific run and gun club. >> let the record show that the private session [inaudible]. >> i would like to make a motion not to disclose -- [inaudible]. >> [inaudible]. >> aye. >> [inaudible]. [adjourned]

mayor lee, supervisors, come on up. and while they are doing that, let's get started. what a beautiful, beautiful day, give yourselves a round of applause. [ applause ] >> fantastic. this is like winning a pennant and how about those san francisco giants. i actually want to marco scutaro wanna be, but it's not going to work and today i will settle formality city librarian luis herr ra and i would like to welcome each and every one of you to our ceremony today. this is indeed a milestone because it's not only the beginning of construction to a

new new library, but it's the end of the program, which means it's a long time coming. {$}[ applause ], what it means that this is the last project and i want to especially thank. north beach community for your patience, for your persistence and your perseverance to have the state-of-the-art library here in your neighborhood. [ applause ] thank you so much very much. [ applause ] >> let's talk a little bit about this library. it's going to be 60% larger than the other library that sits over there. 60% larger. that means more books, more media, wonderful technology, wi-fi access. if you envision this space and if you look that way you have a wonderful adult area.

as you walk in from the mason street side, you have an amazing teen center for all the young adults. absolutely. yelling back here, [ applause ] . that was our deputy city librarian, what can we say? a wonderful space for children. this north beach library serves over 30,000 diverse residents and it's way overdue to have a state-of-the-art library. clean it's really a true partnership with our city departments and i want to thank our dpw folks and their team. mindy, lena, fantastic work in managing this project. [ applause ] and another superb partner in phil ginsburg, rec and park, thank you. [ applause ] this is going to be an amazing

space that ties together the joe dimaggio park and you will hear more about that. it's wonderful to know that it really creates an amazing civic space for north beach and it wouldn't happen wouldn't fantastic support from the community. julie christinsen, a shout out to you. [ applause ] the. so throughout this ceremony, we're going to celebrate and pay tribute to all of the wonderful folks that are making it happen. so without further ado, person that not only has prior director of public works, city administrator and now wonderful mayor for our city; who has been terrifically supportive of our city, mayor ed lee. [ applause ] >> how is everybody doing? [ applause ] [ applause ] well let me begin by saying luis, congratulations but you know, when you are as

successful as you are have been with the library commission it's like winning the first world series. we're not just satisfied with one project, even though there are 24 of these that have been completed with this one, and the proper use of our library bonds program from beginning from the year 2000 with the great partnership of dpw and so forth. there are more great partnerships to be guilt because guess what we're doing with the bonds that publicly improves, we're honoring these kids' future. this is a place where there is going to be invent, sharing, yes, exploring, meeting, oh, gosh, what else did we miss? >> meeting. >> instructor: yes, meeting and sharing and exploring and inventing and reading.

of course. we're just going to have so much of this and i'm so happy to be working with the supervisors who also know this. because we're working together on things that you believe in. and i'm waiting for the chance, when board president chiu and scott wiener have their kids and when they come to north beach branch library, they will remember this day, when they bring their kids up to the front and say mayor lee and luis herrera and everybody worked together to get this done. and, by the way, more is to come when we all work together. because today is about a confirmation, the biggest thanks goes to the parents and residents of north beach. ten years it took us to get to this place. a lot of ups and downs and winding and turning. [ applause ] and if it wasn't for people like julie and others, who i

met years ago and we looked each other in the eye when i was at dpw and we said we're going to get this done and make it even a better libraries, because libraries are centers for our communities. they are seismically safe. they are going to have the most modern equipment for our kids to grow up and promise all of the things that we promised for them to do to become even better residents. the things that keeps me going and everybody else goes in collaboration, we're doing it for you. it's not about us. it's not about announcements, about things that are politically smart for us to do. it's about the future of this city. and with these 24 branches, and now the smart thing to do, connect up with great parks. yes. [ applause ] because the vision, julie didn't have a vision of just having a great center library; right? our neighborhoods aren't just going to accept that to be the end.

it's to connect it up with world-class parks. that is what prop b is about and why we work together and mohammed comes in and smooths out columbus avenue. because i just road that street and it feels like a construction road [ laughter ] we have got to get all of these roads built and this is what scott wiener and others works on:we have the opportunity to unite everybody and it's up to us in government to have listened carefully, and be responsible with your money and get the job done. are we ready to get the job done? >> yes! are we ready to build the future for your kids? >> yes. >> are we ready to support the great parks in san francisco with proposition b? >> yes! let's go forward and keep another world series and escambia keep our san

francisco successful! thank you, mr. mayor, we're going to have a celebration this morning. he reminded me it's about community spaces too. so take a moment and look up. look up. because that is where the meeting room will be on the second floor with after-hour access for all the poets and all the kids' story times and various activities. it's going to be fantastic. we want to continue our theme of partnerships and teamwork by acknowledging the great staff that has put it all together and it's going to continue to offer services here in the neighborhood at our current library. and i see robert carlson, robert, would you wave? he is a great community advocate here and does a terrific job. [ applause ] other members of the team, begining with our chief of branches, edward melton, edward, great work. [ applause ]

elsie wong, another district manager helping to put it all together. thank you for the fantastic job you do. more partners from our city family. i know our attorney team john is here. congratulations for all the hard work, as well as michael. thank you for helping us through the entire environmental impact reports and all that took many, many years of dedicated work. we really appreciate that. and without further ado, terrific tenure, president of the board, district supervisor david chiu, thank you so much. [ applause ] >> thank you. >> good morning. the sun is shining on north beach today. i am so happy to be here. i think it's amazing that in the week that we celebrate the

giants, we are also celebrating a real tribute to the best baseball legend in history, joe dimaggio! [ applause ] as our librarian just said, the very first meeting i took, even before he was sworn-in, after i was elected was about this library. and i got to tell you, that was only four years of a ten-year struggle. there have been hundreds of meetings coming together. there are high school students today who were preschool students when we started this conversation. and i have to tell you as we all know, it takes a village to raise our kids, but it has taken many villages to build this library. i want to start first and foremost by thanking three mothers, who helped to lead friends of joe dimaggio, julie

christinsen, lizzy diaz and lizziehurst, thank you for all you have done. [ applause ] and i also want to take a moment and thank all of the parents who are here of all the different schools that we have. yes, franklin middle school, garflied, st. peter and paul, what am i missing? sherman, telegraph hill. thank you all for what you are doing. i also want to thank those who have been advocating for our seniors and disabled, our parks advocates, our library advocates and of course our city staff. we have a lot of acronyms, dpw, ruark, our mayor, planning, thank all for what you have done. [ applause ] . let me just close by saying that our work is not done. and if you remember we had opponents who fought this library. who delayed our being here by

years, by millions of dollars and by lawsuits. is some of them may be running to be supervisor of district 3. and some of them are opposing proposition b. boo. >> boo. >> they are fighting our kids. they are fighting our families and they are fighting the next generations, but shame on them. that is right. so let me just say we have done a lot of chants in san francisco like let's go giants. i have another one for you, let's go prop b, let's go joe d. are you ready, kids? let's go probb, let's go joe d. let's go prop b, let's go joe d. thank you so much. [ applause ] >> all right, is there high-energy today? fantastic. a couple of other

colleagues, peers in the city family, tom, who is our arts commission executive director. thank you for joining us. we have a partnership in the arts commission that every new building has public art. i don't know if our artist for north beach is here, bill fontana, we're excited about his work and the opportunity to have beautiful art as part of the project. so bill, thank you. also, we talked about how important access is to our neighborhood libraries and today we have our acting director in the mayor's office of disability, carla johnson. carla. thank you for joining us. thank you for being here today. [ applause ] our next supervisor who also does not need much of an introduction because he is at every single library opening. a terrific staunch supporter

and advocate for public libraries supervisor scott wiener. thank you for joining us [ applause ] . >> thank you, luis and congratulations on this great day moving forward. i go to library openings partly because mine were done by the time i took office. i have public library opening envy. this project in particular, north beach branch library and joe dimaggio has had a special place in my heart and i have been especially an outspoken supporter of this project and, in fact when we were putting together prop b, the parks fund and we needed to make room in the for joe dimaggio, i went to the rec and park commission to have it included even though it wasn't in my district. some people have asked me scott why you do care so much about this project when it's not even in your district? we might be representing

districts, but we are one city fundamentally. [ applause ] and just like your great supervisor david chiu supports things that happen in my district i want to support north beach and this part of the city. even more important, this project, this fight about the north beach branch library, about joe dimaggio, fundamentally was about whether we were going to be moving forward as a city. whether we were going to focus just on the past or also on the future of our city. whether we were going to focus on what recreation was like 25 or 50 years ago or what needs to happen today and in the future in san francisco? and we won that battle and we sent a clear message that that city has a strong future for everyone and we're going to make it happen. thank you and congratulations. [applause] >> thank you, scott. appreciate it. i did mention that the library is thriving?

did i mention that last year we had 7.2 million visitor to our libraries? it's exciting to know that and it's the only larguishan library that did not suffer any reductions or cutbacks during the economic downturn. you provided that stable funding and thank you, again for all of your terrific support. with that i would like to call to the mic our great partner, the department of water and the folks that oversee the entire construction and management of the projects, mohammed. thank you [ applause ] >> thank you, and good morning everyone. are you as excited as i am? all right. let me just start by thanking the community for this long-awaited project. we went through several hoops. it's been ten years. we have gone through almost every commission. we went through the legal battle and you all stood with us and we're here today to break ground on this great

library, big hand for all of those who put that effort in. [ applause ] this project is the 24th library that our agency has been involved in. we have renovated 16 libraries, and we have built 6 new ones. the 23rd is in the bayview in my neighborhood and that will be ready for groundbreaking in january and for completion and opening in january and now we're groundbreaking on this project. as part of this project, you will be getting a two-story library. it will be designed for led silver or greater and sustainable and as opposed to the old library it will be ready for the big one, seismically fit. something mayor lee has put

forth in his leadership as mayor is that it will bring a lot of jobs and this library will be the first library to undergo the new local hiring law, meaning that 25% of san franciscans will be working on this project. big hand for mayor lee and the board of supervisors for their leadership u. [ applause ] i would like to thank our management team, edgar lopez under his direction lena chen and her team have been doing a wonderful job and they will be making sure that we deliver this project on time and on budget as we have done in other projects. [ applause ] . the architect marshall leyden has been with us from the beginning of this project since 2003 and she worked very hard with the community and the design is a very sustainable design. there will be great view