million by year-end. and the salary and benefits reserve of 20 million, we do estimate that we'll be using all of that this year, but it will be sufficient. and the state revenue reserve is estimated to be used partly with the supplemental appropriation that you've already considered. and then probably for the health department. >> thank you. just a question on the budget stabilization reserve. under what conditions are we able to withdraw and utilize those funds? it has to be after several years of -- >> of positive revenue news. and then when we do use it, it's only a portion of the deficit. the revenue deficit. we had suggested that the controller provide a more broad summary of all of the reserves and the set asides

when the committee goes to five members. [speaker not understood] the kind of rules and policies regarding all of these reserves. since the financial policies were in effect a couple of years ago, we really have made a tremendous amount of progress in establishing reserves that have been looked upon very favorably by the rating agencies and though more importantly we will have money available in the next downturn that will keep us on a more steady footing in terms of how much money and it will prevent big cuts and layoffs. so, i'm available to answer any additional questions and we will definitely be with you on a weekly basis and provide you with updates as they occur. >> thank you. colleagues, any further questions? thank you very much, ms. zamuda. and ms. howard, i know you spoke earlier. we asked you about the kind of impact on everything on the budget outlook. is there anything else you wanted to add at this point? >> the thing that i would is

add, supervisor, it is early and given the significant, the significant structure issue with the department of public health, that will likely have a more effect on our overal deficit projection than this smaller good news. * overall because that issue is not a -- not only a current year issue. it's an issue that is structural and is embedded in the department's budget. so, i guess i would say it's modest good news but let's not take our eye off the ball. bigger issues at the department of public health. >> okay, thank you very much. colleagues, any further questions? all right. with that, much appreciated. like to open up item number 11 up to public comment before we continue this. any members of the public wish to comment on item number 11?

seeing none, public comment is closed. colleagues, if we could continue item number 11 to the call of the chair. we can do that without opposition. mr. clerk, can you please call item number 12? >> item number 12, hearing to consider and approve proposed board of supervisors budget for fiscal year 2013-2014 and fiscal year 2014-2015. >> thank you. and we have ms. angela [speaker not understood] from our clerk's office. >> thank you, mr. wrung. -- young. [speaker not understood]. i'm here today with deborah landis, the admin deputy, [speaker not understood] youth commission director and don duran from the sf appeals board. on friday the 30th we presented to the board of supervisors fiscal year 2013-14, 14-15 draft budget based upon the budget instructions this committee provided in december. and today before you is the

department's proposed budget which should you approve will be submitted to the mayor and the controller's offices on thursday, february 21st, which will be before you for further consideration in june. since the january 30th hearing, there are no changes to report to our department's budget. as a reminder, the draft budget proposal, the operating budget totals 12.9 million for fiscal year 13-14. i'll put a slide up to show the public watching at home. and for fiscal year 13-14, 13.2 million dollar budget and for fiscal year 14-15, these are compared to a current year budget of 12.4 million and a base of 13-14 million. we're happy to review the details in-depth. i want to quickly mention one anticipated change for the june presentation. it's been 14 years since we've moved into city hall and naturally we are beginning to

see some furnishings and furniture begin to show wear and tear essentially. it should only increase in the next couple of years. operations division provides a deep cleaning service to supervisors when they are moving offices, it does not take care of the wear and tear. [speaker not understood] in city hall will naturally coordinate with building management to understand their plans for maintaining the building's historic standards. but whether it's in their budget or in our budget, the line item mechanism covering these costs and our needs will have to be identified. at this time we're happy to take any questions that you may have. >> do we have an estimate of what the line item would be for any kind of maintenance like that? >> not at this time, supervisor avalos. certainly as we're working through those issues can provide that to the committee, to all of the supervisors. >> great, thank you. >> you're welcome.

>> colleagues, any further questions? okay. at this point like to open up to public comment. are there any members of the public who wish to comment on item number 12? seeing none, public comment is closed. colleagues? >> thank you. we can forward to the mayor's office for consideration for the budget. >> that's correct. >> and i am supportive of actually the youth commission having the full staffing that we haven't had in a number of years. and i think that all of our offices have really benefited from the great work of the youth commission over the past few years and i think having the flexibility with better staffing would be helpful. >> thank you. >> okay. so, we can make a motion to send this to the mayor's office? >> yes. >> so moved. >> okay. we can do that without opposition. >> thank you. >> thank you very much. mr. clerk, do we have any other items? >> that completes the agenda. >> thank you. we are adjourned.

[adjourned] >> thank you. good afternoon and welcome to the friday january 25, 2013 meeting of the san francisco local agency formation commission. my name is david employ campos and i am chair of the commission. we welcome everyone to the meeting

and wish everyone who is watching a very happy new year. madam clerk if you would call roll. >> president campos. >> present. >> commissioner avalos. >> commissioner schmeltzer. absent. >> commissioner mar. commissioner pimentel. >> if i may i know with commissioner pimentel there is an illness and if we could excuse here. >> okay. mr. chair, we have a quorum. >> before we start we would like to thank the clerk linda wong and acknowledge the sfgtv staff for covering the meeting today. madam clerk if you can please call item two. >> item two is election of the

chairperson and the vice-chairperson for 2013. >> okay colleagues this is something that we do every year at the local agency formation commission, and i've had the honor of serving in the capacity of chair of lafco for the last two years following the tenure of then commissioner that was before me and it has been an exciting time for me, a fruitful two years, and the most important thing of course that happened in the last two years is the fact that we got approval of the community choice aggregation program by the board of supervisors, and i want to thank the interim executive officer as well as lafco staff, ms. miller and mr. fried

for the great work that they have done but i do believe in the positions, in these rules that it's important for other members of the commission to play a leadership role and one of the great things about this body is that we have a lot of talent and i've had the honor of working with vice chair avalos in the last two years and it's been an honor and pleasure to serve with him, and i think that he has all of the qualities, expertise, temperament, ability to do a great job as chair of this body, so with that in mind it is my pleasure and honor to nominate commissioner john avalos to be the next chairperson. >> and i second that. >> all right. are there any other nominations? commissioner avalos. >> thank you. and thank you

for your confidence and i will accept the nomination and i would like to acknowledge your great work on the committee, on lafco and the commission, especially the approve of cleanpower sf which i see is one of the most landmark pieces of work, legislation that we have done in recent years at the board and at lafco together, and i would want to count on your work and expertise and your knowledge and serving as vice chair of this commission will be very helpful for me and the commission overall to make sure we have good continuity of your work so i would like to nominate you for vice chair. >> great. so we have a nomination -- >>i will second that one too. >> seconded by commissioner mar and i am proud to accept the

nomination commissioner avalos, and it would be my pleasure and honor to serve with you as vice chair of this commission, and i am certainly committed to helping in any capacity as you as the chair if elected believe is appropriate, so i want to say they am honored to serve. so we have colleagues a nomination of commissioner john avalos to be the next chairperson of local agency formation commission, and a nomination of myself to serve as vice chair, so unless there is any comment why don't we before we take the action open it up to public comment. if there any member of the approximately that would like to speak. >> good afternoon. you have to pardon my voice. i am getting

back over the nasty cold that has been going around so i won't speak long but thanks to all three of you and lafco for the work you have done over the years to get cleanpower sf moving forward because it's now getting to the stage where it is going to more and more become a green jobs and a local jobs program. it's really fitting supervisor avalos is being made the chair of the commission. thanks. >> thank you. any other member of the public who would like to speak? seeing none public comment is closed. so colleagues can we take those two nominations without objection? >> without objection. congratulations to chairperson avalos and the gavel is yours. >> thank you very much and it's

an honor to have your support and look forward to our work together over the next year at least and beyond. let's call the next item please. >> item three is approval of the lafco minutes from the december seven, 2012 welfare regular meeting. >> colleagues we have attachment with our lafco minutes. those are up for approval and before we make any comments on this item we will open it up for public comment on our lafco minutes. seeing no one come forward we will close public comment, and colleagues can we have a motion. >> i move approval of the minutes. >> okay. >> second. >> and we can take that without objection. minutes approved. item three -- four please. >> item four community choice aggregation activities report and update on cleanpower sf and

proceeding at the california public utilities commission. >> very good. we have two presenters for this item. first is barbara hale. >> thank you mr. chairman. barbara hale assistant general manager for power at sfpuc so i wanted to update you on three items, our overall clean timeline, our recent activities at the public utilities commission and activities at the california public utilities commission so with respect to the time line. at this point we're on track. by this date we should have completed presentations at our commission on the presentation by local power on their proposed business case and financial deliverables, and have presented before the commission materials to start to get them familiar with the not to exceed rate proposal which we have been discussing with the

board. those activities went forward on tuesday and i will talk about that and we might see slippage with individual elements but even with they am seeing cleanpower sf given to the customers as our published calendar projected the slippage is in part because we're still getting the rate fairness board comfortable with the not to exceed rates with how the mix of resources we rely on for our cleanpower sf program influences the overall all cost of the services and their the rates. with the impact of fully recovering the 13 million of

hetch hetchy revenues that we're dedicating to this program and providing the security necessary for this program consistent with the board of supervisors' action. the pace of that recovery also has an impact on rates so we have been spending time with the board on those issues, so our adoption of the not to exceed rates at our commission may slip a little bit. we're also working -- what is the timeline to get those approved. >> the actual approval was to happen at our commission on february 12 and i think it might slip to march, early march instead of early february. >> so we need the rate fairness board make a determination before the puc board. >> yes. we like for them to be comfortable to provide advice to our commission. we are at the same time pursuing our polling of customers with those not to

exceed rates, with that mix of resources to see -- to test the customer comfort with the overall program offering. we won't have those results as quickly as we thought we were going to have them so that is another factor, and they're interested in knowing what the results of that polling effort is, and we've certainly told our commission that we won't bring the not to exceed rates to them until we have that comfort level up. >> when you say "polling" are you talking about an actual poll to survey by phone? >> yes. the phone survey of customers. it's refreshing of the same survey, same type of survey we connected earlier on in the program to make sure we still have good data to base our expectations of customer opt out and acceptance of the program

offering. >> is that something you can share next time we meet? >> yeah, we should be in a position to share the questions. i think we're going to preview the approach with you informally. i don't know if that preview can happen in the public setting given -- i don't think we want to wait for that until we launch it. >> i think it would be great to share with you as members of lafco. >> yeah, sounds great. >> [inaudible] >> i can wait. >> thank you. so we did have as i said our commission meeting on tuesday did address the cleanpower sf. we did get a presentation from local power, our consultants that are advisingous how to structure the program to accelerate the local build out. that presentation involved quite a bit back and forth and questions from the commission and we're compiling

the questions and working with local power to provide the commission specific questions and i am happy to share those with lafco board members as interest is expressed and with respect to california public utilities commission activities on the cleanpower sf front it's really at this point a focus on direction by the california public utilities commission to engage the parties interested in pg&e's green tariff option and settlement discussions so we have been participating with those parties that expressed interest in meeting the commission's direction on that. the commission -- the california public utilities commission has set hearings on that request by pg&e for february 15 and so that's pretty much the deadline if there is going to be agreement as to what this program will look like it will

be known by then and that's all i have to present to you up front. i am happy to answer questions or anything that the staff wants to augment what i said. thank you. >> commissioner campos. >> thank you chair avalos and again congratulations on your election as chair and i also note with a new board of supervisors coming in there are a couple of vacancies on the commission i hope will be filled shortly and we have some pretty talented newly elected members of the board they hope will serve on this body and we look forward to that. i wanted to ms. hale to follow up on a couple of things and thank you again for all your work. thank your staff. in terms of the rate setting process one of the concerns i have and maybe you can shed light on this, if i may

through the chair, in terms of recouping the amounts of reserves that are going to be used here my understanding is there is some flexibility in how much is recoupd and depending how you use that flexibility that could impact rates so i am wondering if you could say something about that and what the thinking is around that issue? >> yes. you will recall when the board considered the program in august the board directed us to -- i can't quote the language, but the basic message was to the extent feasible let's try and recover the dedicated funds. excuse me. what we presented as staff to the rate fairness board was full recovery of all of the funds during the first four and a half years of the program. of course the quicker you recover those funds

the more a rate bump it has on the program, so the board dialogue has been around can we extend out how long we give ourselves to recover those funds? and i think under the adopted board direction, yes we can, and then the issue is. okay. if we want to by how much? and those are some of the questions we're addressing with the rate fairness board and we will present it to our commission similarly to say the rate that we are proposing to you is a not to exceed rate. the ultimate rate that we charge customers will not exceed that so we see it as a ceiling. one of the factors that influences that ceiling is how quickly we recover that appropriate fund. >> thank you for that. i think the language that was voted on

by the board of supervisors purposely flexible and i think it's about striking the right balance because if you tried to recoup the amount as quickly as you can possibly can and which is something some members of the board wanted and you could under mind the success of the program and that is not something the board adopted as a rule so i certainly would like to see the timeline extended to a period that is reasonable because we obviously wants the money to be recouped, but not to the point it actually under minds the success of the program because then you're going to use more money anyway, so i would hope that that there is flexibility in that and that

it's not a hard line rule that we have to recover it by four and a half years or whatever the timeline is. i hope there is a longer period of time and that is one point i think is important. i also think it's important that in the near future that we also have a follow up joint meeting with the san francisco public utilities commission on where the program is. >> sounds good. we would be happy to work with your staff to check calendars and make that work. >> and the newly elected chair and i think it's good to do that and i have a final question and i am wondering if you could tell us about what is happening with the status of the hiring of a new community community choice aggregation director at the puc? as you know mr. campbell left last year and i think it's important to get a permanent

replacement as soon as possible. >> thank you. yes. we do have an acting director at this point so we have a funded vacancy. we have taken that request to fill that vacancy through the city's process and i understand that we're awaiting word from the mayor's committee that releases request for filling such vacancies so it's pending. >> and do you know what the process for that determination is? and how long are we talking about? and is there a specific concern that maybe keeping it from moving forward? >> i'm not aware of a specific concern having been expressed about frankly i'm not in the conversations directly. the public utilities commission and my group in particular has a number of vacancies that are in

a similar movement through the process, so it's difficult to sort of read the tea leaves how soon that position might be released. concern about the fact that the vacancy remains a vacancy was expressed at our commission meeting on tuesday and our commissioners shared the concern, and i understand that's being communicated to the committee that do that as well. >> i appreciate that and i understand it's not in your control for that issue but if i can ask whether there is anything we can do to expedite that process and communicating with the mayor's office or any other way and i think it's

important that they understand how significant it is to fill this position and we have a program by the board of supervisors and to do that you need a permanent replacement there and i hope that happens as soon as possible. thank you very much. >> okay. ms. hale thank you for your presentation. if there are no other questions we can go on to ms. miller. >> i will add on to what was reported on there are continued meeting with the sfpuc staff and the stakeholders and meetings with the technical review process which is a peer review process and those meetings have been interim. as you expect there is some level of

discussion about how -- i call it phase two, but the local build out is going to occur, when it's going to occur, how it will be funded, the timing of that, and the siewnchs made under the model and those are not always discussions. first of all just to try to get to understand where we are, and second what is needed to move forward so i wanted to let you know those are ongoing. i think they have been productive. i think while there is some difficulty in those that at least your lafco's staff has pledged to see if we can figure out a common path to get the recommendation before you as soon as possible. i just wanted to bring that to your attention. thanks. >> great thank you. commissioner campos, we talked about joining puc lafco meeting. do you