receiving protests from the commission. then the judge has to either decide to hold hearings or write an ex parte decision approving or rejecting this proposal. i would estimate, after 16 years as an administrative law judge, that would be -- the soonest there would be a decision would be three months, i'm guessing because the puc, the california puc's own procedural requirements can be much longer. >> so, can you present to us the next step, hopefully before our last meeting, a scenario that is going to assume a $6 rate for pg&e and where we can be in striking distance? i think that -- hate to even say it, a local buildout is such a priority that i think the rec -- the bundling piece should probably be a lesser of a priority. but i would want to see, you know, a plan from when we could

increase the quality of the rec mix of the bundling. >> the rec mix. >> and that is required by state law. we'll be increasing it over the coming years whether we want to or not. >> right. i think that's right, and i also think the value add you get from getting the local buildout going and the money generated and jobs generated really outweigh a lot of this. that should be our focus as long as we can still make the price competitive. >> okay. >> so, maybe what we can do next time is come back with maybe five different recommendations, and where we -- from what i'm hearing, that the mix is important, the buildout is important, and the price is important. and, so, i think we have indication that you -- since pg&e is not 4, but 6, and our lowest is below pg&e. so, maybe we can go above the 6

to increase the mix that would differentiate us from pg&e. and also include some head room so that we can have some local buildout. let us play around with some of those options so that we can come back and do the best we can of what we think that you would feel comfortable with and maybe five different options. >> it would be especially happy if you would be ready to vote on may 14th. >> that is the dream. >> there are so many steps between that and launch. >> being administrative law judge for 16 years, you know that's not going to happen within a year or two. commissioner caen. >> this is a thought, that we go with the lowest price, we don't think about buildout now. we see how many customers we get, we test the waters. we can always raise rates once

you get them, and that's when we start our buildout our quest before that. i think it's ridiculous to come up with a price that's going to be more than pg&e. nobody -- everybody is going to opt out. i mean, why would you spend more money? secondly, and you all have a better feel than i do. but will people really know the mix? will people really analyze this? will they come up and say -- to me, they're just looking for renewable power. are they going to say, okay, we have 85% in rec's and then we have 5% in firm and shake. >> firm and shake? >> i think the people in the room will understand that distinction, but i don't think very many other people do. >> yeah. so, they're just looking for renewable and that's that. >> yeah. >> so, i mean, without this other information we're going

to get -- >> under your scenario, we still have $6 million to get going with build out outand we have some existing programs that we can incent customers to take part in. and we can in two years issue bonds. so, it is a viable option, but it wouldn't be a thorough case for buildout. >> let me tell you the greatest challenge is what we heard in the lafco meeting from the post room. one in four san franciscans don't even know this program exists. >> very interesting. >> that's a big challenge. any other questions? so, if you can get that material to us before next meeting. >> we can get it to you in a few days. >> great, fantastic. >> thanks a lot. >> any other questions from the commissioners? now we have to move to public comment. jason freed. and then mr. eric brooks, you can come up to the front row. hi, jason freed, lafco

staff. chair came in and gave his comments. i do want to talk for a second about the pg&e option that you guys have been fixating on. i don't think we should be worried on t but it is definitely an issue to be a dreadtion. the numbers we're use now are based on what pg&e is saying in the press and not i believe a realistic final price of what this product is. i am willing to bet that from what i've seen in the press and what the tart consolidate has been able to track down, what they're talking -- they're talking the base price of energy. they're not incorporating how much they're going to spend on marketing on the price. not administrative costs. i'm not sure that they're including everything that needs to be incorporated into that final price. so, if we're here today trying to figure out what pg&e's final price is going to be, we don't know what that is. we know what their base price is going to be based on just the energy, but there's a lot of other costs that get added into that price. and, so, i don't think that they're going to be at that $6 price with all respect to the puc staff that they're claiming. the lowest they will be i honestly believe they will be higher than that price because you have to incorporate these

other factors. there are issues with that program just based on the initial reading of it. they are basically what they're trying to do is take the excess rpf they have right now because they have to be above 20% to get to 25%. they have to take that excess and they're basically going to take that sliver out and sell it to customers and claim that they're doing something. they're really not building anything new to get part of this program and that's what our program will do, build new real renewables and that is something the board of supervisors is tare interested in and i know my commission is interested in, is seeing that build out being part of that buildout from day one. i want to encourage you, as commissioner vietor brought up a question about the mixes, commissioner caen was also correct. most of the general public doesn't understand the difference although you do get iwb out there trying to confuse them as to what we're really doing. that's where the mixed question comes in. i have gone out and done community events and talked to people. they are asking me questions, what is the difference, what is a rec and [speaker not understood]. ibe is putting that information out there. there is discussion going on. as time goes on you'll see more

people knowing about this program and we need to make sure they're getting right information about the program so they can make a smart educated decision which is part of why we need to get past the not to exceed rate getting set so we can do that early education program that your staff has present and had actually get out there and physically talk with people so they are well aware and have a very good understanding of what we're actually looking at. thank you. >> let me tell you what i'm fixated on, being honest with the people and the rate payers in san francisco. don't tell me we're fixated on pg&e's rate. we're fixated on promises we made and whether we can fulfill those promises. that's what [speaker not understood] accountability, transparency, at the end of the day honesty. thank you. i agree with you 100%. >> mr. brooks. good afternoon, commissioners. eric brooks with san francisco green party and local grassroots organization in our city. so, first i want to make sure that it's made clear on the

pg&e question. a lot of very -- varied environmental and consumer groups made sure the settlement that was reached with pg&e was strong, which is good for us because it gives us something real competition and it gives us -- and they'll have to spend more on it and it gives us a rate we can maybe compete with. but explicitly in that agreement is that pg&e has committed that in its program it will build hundreds of megawatts of solar energy in california and hire people doing it. so, people need to be aware that that's part -- this is not a buildoutless pg&e program. and there is real buildout in it. it's statewide instead of local and it's solar instead of integrated. now, as to the presentation today, a couple of quick things. one is that we need to reel back on the buildout question and ask a very fundamental question that we have been asking of staff that we asked in the last hearing, and that is

advocates, many of which have spent a lot of our lives working on renewable energy and understand it pretty well and have looked at in detail the buildout work that we've been doing over the last two years and local power has been doing, and we do not get why that work was stopped. so, that is the first question. we need to reel back on this and we need staff to explain on paper why did we not continue the process of doing the buildout planning. and that brings me to the presentation that you saw on proposed buildout. the general categories that were on all those graphs and spreadsheets are pretty much the same general categories that have been proposed in the local power plan we've been working on the last couple years with the exception that local power plant has details in it, specific amounts,

kilowatt hours and job hours of jobs and specific different types of resources that you then plug into their financial calculator and show how it works out in price. and all that work is -- it's the only work we've got in front of us that shows we can actually get lower than pg&e's brown power rate in the second and third year and so on. so, it's very important to understand that that is a much more detailed buildout plan and it's being stopped and now staff is saying oh, we will come up with one. and the plan they put in front of us has no specifics whatsoever. so, it's not ready to go. and we need that stuff to be clearly delineated. when you build them out, the job hours are just 10% of the proposed job hours under the local power plant. and then finally, i would say with regard to the rec mix and all that stuff, at the beginning of this process years ago we did say that we didn't want rec's to be strong in this mix. but keep in mind that on the

rec's, we're just talking about the 20 megawatt shell program, not the buildout program. so, we need to get to the cheapest rate possible so that we don't scare off -- if we're a penny higher than pg&e, so many people will opt out of the program as commissioner caen rightly pointed out, that we will have less of a customer base for revenue. and it's more a customer's ability, the number of customers that will be able to pay for power in the future that's going to assure good bonding. yes, we need a little bit of reserve at the beginning, but if we come out with a price that's anything higher than pg&e, this program will fail and there won't be a buildout. so, the primary thing we should be focusing on is meeting or beating at least pg&e's green price. thanks a lot. >> thank you, mr. brookes. anyone else, public comment? did you all sign in? okay. will you do that after you

complete? identify yourself and the administration you're with. my name is michael [speaker not understood], i'm a san francisco resident and i go to san francisco state university. i'm here to say thank you for continuing to take on such an important issue of our time. i understand that clean power for san francisco can be very complicated and i admire your patience and [speaker not understood] for successful program. i would like to ask for the kind of rec's we would be receiving from shell and what this means for the prices that residents will pay. i think this is a important measure to stay competitive with pg&e's green tariff program. i would also like to give a special thanks when you mention the finest green program and find it as soon as possible. i also feel that we need to inform more people about the program. as a cr club intern i'm calling members to let them know about the program and to my surprise, even the cl club members don't know about it. so, i feel like we need to start up a positive information outreach. we can get online and make sure people know about it and make sure they get excited about the program so when it starts they

won't mind maybe paybacktion a little more than they have to and be committed to the program already. thank you. >> thank you, [speaker not understood]. leave your name with our secretary here so we can have it for the record. >> a good community leader. >> no kidding. welcome. hello, my name is [speaker not understood], i'm with the sierra club and the san francisco resident. i just wanted to reiterate how important it is to keep the rates competitive with pg&e what the people were promised. that's how we're going to get people to stay in the program. i also don't want to lose sight of how important the buildout is, especially having a plan of tangible plan for the buildout with numbers and how many jobs are going to be create and had when things are going to be moving. i think that the transitional reliance on the shell contracts is good terminology, but it doesn't -- really needs to be more concrete in terms of how we're going to transition away from shell. i think that's really important ~.

the presentation sort of to me, seems like customer interest and commitment to how many people will stay in the program is going to determine how much buildout we do. but i think that without a plan for the buildout, that really hinders our ability to retain customers. so, it's a really attractive aspect of this program. and it's something that's going to set us apart from pg&e besides the rates. so, i think the buildout is something that people really want in san francisco, but it needs to be more concrete. it needs to start planning for it, it needs to happen now so that when the program rolls out we know how we're going to get away from the shell contracts and how we're going to bring this program to the future. thank you. >> thank you for waiting so long, both of you. any other public comments? all right. public comments and matters will be discussed in executive session, closed session.

any public comments on closed session items? motion is entertained. >> i'll move to assert. >> move to assert. >> second. >> second. all those in favor signify by saying aye. >> aye. >> all those opposed? motion carries. we'll now proceed to closed session. >> closed session item 17, conference with legal counsel anticipating litigation as plaintiff. item 18, conference with legal counsel existing litigation, pacific gas and electric company versus city and county of san francisco. item 19, conference with legal counsel, existing litigation [speaker not understood] zimmerman versus city and county of san francisco. and item 20, conference with >> all right. we're back. we're back. and we have an announcement

following closed session, which is? >> motion whether to discuss. >> on item 19, the settlement agreement was approved or the settlement offer was approved. and on all the other matters [inaudible]. >> all right. commissioner moran, i need your motion. >> oh, i would move. >> that you always make. >> to not disclose discussion. >> not disclose discussions during closed session. other than what ms. ambrose just discussed. other new business? [gavel] he a we're adjourned.

>> good morning, everyone. i'm tailor stafford, president and ceo of pier 39 and on behalf of our grateful water front family, it is my privilege to extend a sincere thank you to the port of san francisco for all that you have done, and continue to do to build the best water front in north america. pause plause [ applause ] >> from at&t, home from the world champion san francisco giants to the building, to the new exporatorium, and new cruise ship terminal to pier 39 and all of the restaurant and businesss in between, we are all proud to wish you, the port of san francisco a happy, 150th anniversary. today, project such as the new

warriors arena establish the port as a world class destination, due for large part to the vision of mayor ed lee and monique moyer and as well as the dedication of the port commissioners and staff. it is now my pleasure to introduce honorable ed lee, mayor of san francisco. [ applause ] >> good morning, everybody. happy birthday. i just want to make sure that you know that if you combine the ages of myself, or president chiu, and monique moyer we might get to 150 years, maybe. but i'm down here to have fun, today, get out of city hall, go to bubba gumps and make sure that i spend it with other people who love to have fun like our port commission and hers directors and the staff and the rec and parks here and

i know that the fire chiefs had to lessen her fun time and go to a three alarm fire and thank you to her for being vigilant for the city. and we would rec and park they have discovered yet another great partner to find water front open space that we can all enjoy, both in terms of getting our public to understand our bond program better, but also to create new spaces. so thank you, phil for being here as well. our port commissioners extend not to present but to past for commissioners and he knows that and i saw mike and others, because it takes generations of people to create things along the water front. it is incredibly expensive to restore a lot of our piers and monique is the first person to know that intimately and historically but we do have persons and entities that want

to continue this fabulous water front experience and to make investments, where there is jefferson street, brandon wharf and pier, 30, 32 and the exporatorium this wonderful opportunity. i want to thank, past and present port commissioners, and i see them here now. that they have earned the title of being the greatest stewarts of our water front and so thank you for your ongoing effort to do this. [ applause ] >> and the work incredibly well with the other agencies. i know that because this is pier 39 and one of the most iconic travel destinations, i understand that is why, john martin was here, because while he flies airplanes he is part

of an incredible transportation center and we all know that and we all share in that wonderful experience with being clearly, the best nation for so many, millions of people, every day. and as we do this, we reinvent and reinvest and find other reasons for people to enjoy themselves here. and those projects like the exporatorium and like the bay lights and renewed effort to create more water-base theds transportation to compliment the bridges that we build. we will create more bridges on the international level for our city. so, all of that in the context of a great anniversary, 150 years, there is going to be throughout this year, more stories to be told about what this 150 years means to our city, because, there is a lot of generations of people who came to this city, many, many years, built communities, built

their small business and their livelihood and hopes and helped us to establish the fisherman's wharf and help us to establish all of the maritime that they have created life times of reasons of why people want to continue visiting our city and we need to acknowledge all of that history. and all of it has not been easy, there have been difficult things and we have had fights over what is proper, and what is not proper, but we have always had in our sites in all of these different struggles, the success of our city, the golden gate bridge and the hope that it brings to many generations of immigrants that is what our city is built on and the honor that we have with all of our labor partners who also jimmy herman and the cruise ship terminal that they are honoring and built it through years of generations of struggle but also great

celebrations that we have. and so this is wonderful year, and 150 years of history. let's learn it all and continue to appreciating, but let's look forward to the next 150 years, because we are building the infrastructure to do that. we are laying the foundation to do that. we are creating partnerships among the agencies, but also public, private partnership to create it, because i will tell you that someone who is going to invest, $250,000 to $200 million on the piers it is an incredible to the faith that they have in the city and it is about investing confidence and why we exist in such a great wonderful city and so thank you monique and the port commission and to all of your wonderful partners and staff for working so hard with the entities like pier 39 and others who will continue to invest in the confidence here and along the water front and thank you to the labor and all of your

partners thank you to all of the other agents for being here, happy 150th anniversary, to our great city. >> thank you, we wish to continue your success. also, here with us today is the president of the board of supervisors, and the supervisor from our very own district three, david chiu. [ applause ] >> thank you, tailor. mr. mayor, if it is okay, could you and i just declare it a city holiday today so we don't have to go back to work and hang out here on pier 39? >> i want to thank all of you who are the incredible diversity of the community that is the port. the community that our water front peers and our wharfs. this is the story of our city. our port has really defined our past as i think that we all know, the first 49ers came right here to this spot to

build this city, during world war ii, our military ships were recommissioned, right here from our port. we know that our friends from labor as the mayor said, built our city, starting here with this water fort and this is the story of our city and we also know that the water front in the port defines who we are and it is amazing in 2013, if you just walk along the water front in my district, you will start at the fisherman's wharf street scape improvements and to the cruise ship terminal that we just cut the ribbon for and you walk down to the terminals and the ports where america's cup will entertain a million, international visitors within a few months. walk down a couple more blocks to piers 15, 17, where we are going to see a half a million kids come to go all the way down to what we know that will be the next site of the

warrior's arena and down to the ballpark and the water phone and the port is our city's present and it is our city story. but we also know that this is a story that is going to continue and one of the things that we love in pier 39. if you come here any day you will see the boys and girls playing with their parents who will come back a few years later as teenagers and young adults. and young men and women, flirting on the peers, dating each other, who will come back a few years later for their honeymoon, who will come back a few years later with their kids. and so, the cycle of the story of our city continues and that i know that in 50 years when we are celebrating the 200th birthday of this blai, when monique's grand daughter and ed lee's great grandson, are helping to run this city, they will look back on to the city leaders today, who are represented by all of you. and say, you know, in 2013, our

city forefathers or city foremothers thought it appropriate to invest in our port and make sure that we are building a 21st century port to last, happy birthday. thank you. >> i think that we all look forward to that moyer lee, administration. and finally, our good friend and dynamic leader, the executive director of the port of san francisco, monique moyer. [ applause ] >> thank you. >> okay, so raise your hands, how many of you would like to be me today? i am so humble and honored, what a great fortune to land my term right on the 150th year because the one thing that i will tell you about being 150 years old if you realize that your time is really short and insignificant, and if i were to dare to count how many port directors there have been before and how many there will

be after it will become more of a second time, but, i get to be here with all of you and so many of you who have been here at this water front for decades, all of you from fisherman's wharf thank you for coming today, because of you it is our water front that has evolved ahead of everywhere else in the world this is a perfect place to celebrate. because here we have a little bit of something of everything, in fisherman's wharf. it has been part of the port since its inception that is how we ate, and how we did commerce and how we paid for the fish we ate with gold but nonetheless we subsifted on fish and the agriculture that was born around the bay and san francisco to feed the miners who were farmers and to create a new economy for san francisco and haven't we brilliantly and completely made new economies and so many knew that we have to name the latest new economy of the economy of invention and creativity and isn't that what

we were doing in the gold rush and so it was stunning to be here with all of you who have made this possible. in 1900, the community worked with us to move up here in this area of a water front, and more of a lagoon area where we could congregate better and save the area where fisherman's wharf had been for the commerce that was needed to sustain our city. as the most of the logistics changed and as the needs changed as a community it was fisherman's wharf that helped us to envision what could be the future. in almost 50 years ago, the discussions began, how to enlifen our water front and how to keep it a working water front as we have here with all of us, as visitors, as those folks who are enjoying the great suit that they have to offer and the wonderful open space and also the working ferries that are helping to transport us around the bay and are here for us in times of emergency and celebration and so that is bha we stand for in

san francisco, and this is a terrific place for us to celebrate, and i could not be more honored to be here with all of you, to celebrate those generations that went before us. and as mayor lee, and president chiu said so eloquently, those generations that will come after us, it is a tremendous honor, and i thank you for being here to share in that honor and please happy birthday, to all of you, and to the board of san francisco. [ applause ] thank you, monique. >> and now the moment that we have all been waiting for. the birthday cake. >> i would like the speakers to gather on the cake and lead us all to sing happy birthday to the board of san francisco. ♪