potential for consideration for an amendment or amendment of the whole recognizing and delegating to the general manager the authority to update this plan to be consistent with the board of supervisors approved general obligation bonds for earthquake safety. that item is before the board today as well. we didn't have a final number. that's related to the auxiliary water smie system that is general obligation bond funding. >> item of that is in the file? >> item no. 12. it's the 10-year capital plan. and in front of you -- >> i would be glad to move the amended item with the same caveat that in terms of dealing with the 265 program.

>> okay. if that's clear, it's been moved, is there a second. >> second. >> it's been moved and seconded. is there any additional public comment? seeing none, public comment is closed. all in favor say, "aye". >> aye. >> opposed? the ayes have it. the motion carries. the next item, madam secretary read it item 13. motion to calendar public hearings on april 22nd #shgs 2014 and may 13 #shgs 2014 to consider the adoption of retail water and sewer rates on may 13 #shgs 2014 for fy 2014-15 through fy 2017-2018, effective july 1, 2014. >> i would move that accept that we have that discussion when it comes back to us. >> okay, it's been moved with

a caveat. is there a second? >> second. >> second. is there any public comment. is there any additional public comment? seeing none, public comment is closed. all in favor say, "aye". >> aye. >> opposed? the item carries. please call the next item. >> city clerk: item 14. motion to calendar of a public hearing on may 13 #shgs 2014 to consider the adoption of wholesale water rates for fq 2014. >> i will move that with the same caveat. >> is there a second. seconded by caen. is there any additional public comment? seeing none, public comment is closed.. >> all in favor say, "aye". >> aye. >> opposed? the item carries. next item. >> city clerk: item 15. public

comments on matters to be discussed in closed session. >> is there any additional public comment? seeing none, public comment is closed. i will entertain to discuss the matter listed. it's been moved and second. is there any discussion. hearing none, i will call for a vote. all in favor say, "aye". >> aye. >> opposed. >> we have now returned from closed session. it's been moved and seconded not to disclose. all in favor say, "aye". >> the motion carries. commissioners, any other new

business. item no. 27. i hate to do this to you. i have a couple items. >> i caught wind of the last local agency formation commission meeting the other day i know there were some conversations for this commission to not set rates. i would like a summary of what was discussed during that meeting because if time passes we want to refresh our recollection as it relates to exactly what was decided and what was not because i'm not entirely sure the information exchanged was entirely accurate and we are getting a message from the lack local agency formation meeting and i would like to know what the agenda looks like and would like to have a conversation

about what kind of calendaring works after we have added more items to our calendar. the other item was we had some conversations about a joint meeting with the commission on environment. i think we are all in agreement that that made some sense. we just weren't sure about the timing of it. i think the general manager was correct in his effort to be a little bit more deliberate with the schedule and i think we'll learn that meeting will come to us on or about the second meeting in april. we look forward to seeing that notice. and finally for us, given lots of the conversations we are going to start having robust conversations about a lot of the value and the relative value and a lot of the things

we do especially in communities that are in need whether they are arts grants or job training or internships and apprenticeship and i would like to have an at some point to have a presentation to this commission within the next few meetings specifically related to the areas of horticulture, and looking on specifically areas of the southeast sector and most specifically at the 94124 area codes. these are discussions that i would like to have encapsulated. because the organization are at the collective bargaining table and i know i would like for us to be a little bit in front of it. that was all that i had.

commissioners? >> yeah. in response to april date for the joint meeting, i this i -- think we just approved a budget hearing in april to set the rates at that time. i don't know how that plays out if that means putting to have meetings. maybe there is two meetings in april, maybe it's that one meeting and one is the other. i don't know, donna, do you recall because i think we just prood -- approved a date. >> yeah. april 22nd and may 15th. >> so that needs to be resolved. >> unless we can fit. i would only be guessing but i would

say you wouldn't want to restrict yourself to less than 2 hours. i think it's worth mentioning. one of the things we were trying to accomplish is making sure that folks understood that there were a lot of appropriate venues to air out a lot of these things and it wasn't that these folks just had to lineup and come in here. that environment is a great resource and they have a lot of talent there and what i was hoping to be able to achieve in addition to other things, right, was to make sure that people made sure there was a completely acceptable forum to engage a lot of these topics and relive -- relieve some of the pressure. >> was there a topic? >> i know commissioner talked about food waste topic and we wanted to talk about sooner

-- solar and committing a new customer base and puc grant opportunities and i have a sneaking suspicion that the folks there in that department and that commission will have a plethora of ideas for us to consider, right? i would assume -- >> i think that was it and we also talked about how the fiscal cliff or whatever we are calling it plays into our relationship with the department of the environment work order many i think there's a list. we didn't get into it in the budget but there was a list with the work orders with the multitude of departments but that was one thing that you raised. >> just a point of clarification, we have included in your package the budget on the cca with the energy efficiencies in there.

and i think to exercise that, you actually need customers. >> you mean, that's what jason brought to us? that's important. i want to red flag that. because a lot of issues are happening and the minute we leave i'm going to be doing something else. >> barbara hale in the budget power, in the budget summary to answer questions in the document in section 5 of your agenda, that packet of answers includes a memo that describes in greater detail the opportunities for receiving funding from through the california public utilities commission energy efficiency programming and it describes there, it goes into greater detail the issue that mr. freed spoke about during public comment. it's an area that we had evaluated previously shared thoughts with mr. freed on given on

the comments he raised in public you asked for it. it's described in the memo in the packet. >> can you summarize? >> under the california public utilities commission rules you can under cca go to the city and ask for funds. the funds are collected through investor on utility ratepayer bills. they bill for electricity and includes extra funds for the energy efficientcy program. the city is already doing that and we are part of the effort to increase energy fisherty and the department has implemented though funds and we might want to find out how they are spending those dollars that they have

receiving to benefit city san franciscans. because we are a cca career choice aggregators, because we do that, it is assumed that you operate the cca at some point. you can't be a cca that only provides energy efficiency services. you have to be energy efficient and the underlying supply. that's the vision. it doesn't, it's not really available to us unless we are ready to demonstrate our plan for a full cca as well. >> that doesn't completely cover what we did last time? >> it doesn't completely because they did receive funds prior to cca. they received energy efficiency funds. they are spending those dollars

now with cca customers and non-cca customers and spending that on energy efficiency on the gas side and not just the electricity side. but they have ultimately operated their cca. >> we have a chart that comes right after the agenda that says outstanding commission questions response report. that is item there is no response. i wasn't aware. i do on this issue because i see it getting hot. i see it and i want to be really really airtight. when these items are raised i want to make sure we have an error tight response and expect these items are going to be raised. >> it's also on the budget and it's listed there as responded to. it will no longer appear on the summary sheet that concludes the commission regular agenda. >> so i would suspect that

given what took place at the last lafco meeting because i know there is discussions. the board i think has different authority than we do. the good faith than -- that we are required to engaged in. >> i don't know what the lafco entities are. >> i just want to be way in front of that. you understand. >> yes. >> thank you. >> thank you. >> so one point of clarification. they are asking us to participate in writing an rfp. please, the position i'm taking, lafco, the position i'm taking is that we will share the information that we have. my main focus

is coming up with a plan for our financial situation. and it could be some cca or whatever. but it's just not cca in how you make cca work, i mean, i could be part of a solution once we evaluate other big ticket items. so we want to be helpful. the other thing that we are making very clear is that the current cca assumes that $19 million comes from heche and that was one of the reasons that shell, we were able to get a lower cost from shell because we had $19 million in reserve. if heche is free falling in 2 years, after two 2 years we are going negative. once you go negative, all our assets already frozen and that $19

million won't be available. if it is and i think going to the other question, i think it's the educational moment and one of the things that we wanted to do when we meet with the department of environment is really have the controller budget analyst, the mayor's office to look at what we are saying and i really appreciate you accepting our projection because once we get it validated that we have a problem, we have a plan to solve the problem and not people thinking this is a made up crisis to not do these things . >> so i will be perfectly clear for the record. my intent is only to make sure that people can't come in here and make misrepresentations and lead us on a wild goose chase. the whole idea is that

it's good stuff but it's not where people wanted to get. now we are in a completely different situation. the reason i asked for us to red flag every single item so we are just airtight. we'll be running around in circles chasing down the what ifs. i hear you loud and clear. any further business? >> i hope not. >> this meeting is adjourned. [ meeting is adjourned ] >> >>

>> good afternoon and welcome to the san francisco local agency formation commission. today is january 24, 2014, >> i would like to acknowledge our clerk of the committee, lisa miller. i don't have our sfgtv names here, but i would like to thank them for their assistance today. call the roll. >> avalos, present, commissioner breed, campos, present, mar, present,

schmeltzer absent. we do have a quorum. >> thank you. let's go to the next item. >> the election of the chairperson for 2014. okay colleagues we have before us a position for local local agency formation commission. i actually do have ain't in continuing as chairperson for local agency formation commission and just want to put it out there. if others have an interest as well, i would like to hear about that. and interested anyone interested in being a vice-chair you can speak about that sex with. commissioner campos? >>supervisor david campos: thank you mr. chair, i don't know if there could be a

combined nomination. my nomination is to nominate you as chair and breed as vice-chair. >> i will second that. >>supervisor john avalos: okay. any discussion? commissioner breed, you are in accord with the motion? very good. okay. let's go to public comment. eric brooks, representing san francisco green party and local grass roots. just to comment commissioner breed has shown some really outstanding leadership on this issue and it's extremely appropriate for her to move to vice-chair on this lafco. thanks.

>> wolf neighborhood council in acclimation. >>supervisor john avalos: is there any additional public comment? seeing none, public comment is closed. this is motioned by campos and second by mr. mar. can we take that without objection. first i would like to say this you for the support and i'm really excited about serving with commissioner breed who will be the vice-chair of lafco and i really appreciate your pushover the past several months on cleanpowersf. next item. >> approval of lafco minutes

from december 13, 2013, meeting. >>supervisor john avalos: any comments on our minutes? is there any additional public comment? seeing none, public comment is closed. can we have a motion to approve the minutes? motion from vice-chair breed and seconded by commissioner campos and we'll take that without objection. >> okay. neck -- next item. the clerk: item no. 4. community choice aggregation activity record. a status update on cleanpowersf program, status update on proceeding at the public utilities commission. we have miller to speak on these items. >> yes. barbara hale at the

puc. speaking on item b and c first. as i believe you have been following, we've been having our public presentations about our budget and in private conversations as well with our general manager wefrment facing difficult times with the financial circumstances within power enterprise and with the power operations of hetch hetchy. we have some capital needs. we have higher than anticipated increases and cost for distribution services from pg & e and we are projected to be out of balance by fiscal year 16-17. in light of that, our direction from the general manager and commissioners are to really focus our efforts at the puc on solving that problem. so we are really refocusing in a way that

helps us achieve our highest value revenue which points us more toward increasing the customers we serve on our publically owned utility side of the house if you will and not on our cca side. we are also looking of course at ways to reduce our cost. so that's where our focus is at puc and with respect to item a, we did make a presentation to our commission on january 14th. we did include, the general manager did include the memo that describes these issues in greater detail that i would be happy to provide to you. i provided copies to the executive director already and perhaps we can talk about that further at a subsequent meeting if you would like.

>>supervisor john avalos: i think there has been some discussion about having a joint sfpuc lafco meeting. given how there has been a huge neglect or real effort to not move cca forward that i felt has been going on and a lot of rationals that have come out even when the mayor came and spoke about why he didn't support cleanpowersf. i felt there was a lot of information that didn't come out. trust is really low right now. i really want to see some real verification on how there is some proposed or per expected shortfalls within the power program and i want that presented at the lafco meeting. i also think we

should have more conversations too about how to make clean power happen and in the meantime between this meeting and the next if we do a joint meeting, have some real conversations about what possibilities there might be. i don't think it's a matter of just asking for money. i think it's a matter of ideas that can be shared that could create an opening for the passage of clean powersf in other form. >> okay. in talk wth general manager very interested in going fort with the general meeting and i will bring that back to the commission and we'll look for ways to help restore that trust that as you have expressed has been lost. and so perhaps engaging some of the other city departments in an overview of the

materials that we've been presenting to our commission. >> thank you, commissioner breed? >>supervisor london breed: yes, if we can have that information and made available to the public as well. i keep hearing there are some challenges and we have to redirect our efforts. from my perspective, i'm not certain if this is another tactic to move away from trying to move away from clean power. i would like to see some documentation of this and not see a situation being created just to derail clean power. just some evidence of that would be really helpful. >> absolutely. happy to provide it and we'll be able to exile -- compile some prior information. you may recall 2 years ago we came to the board, the mayor and commission and expressed concern about having an out

of balance financial picture. as a result of that, we made some major cuts in our infrastructure program. we committed to going forward with an acquiring a rating to help issue debt to help fund some of our longer term investment needs. we have taken those steps and we are back out of balance with these unanticipated capital and operating cost. the materials that we presented to our commission are public materials, but we would be happy to put into a greater picture at the meeting about the capital needs and how we are spending the revenues we do have. >> sorry, one thing about the conversation with kelly was we would have an independent analysis of what you present

and controller involved and analyst to weigh in as well to help understand what you are sharing right now. >> right. and to restore trust. right. >>supervisor london breed: i think my comments were along the same line as chairman avalos because there is a lot of information out there about when where the $19 million seems to have gone or where is it or how this whole thing works. i'm trying to understand what's happening with revenues and i'm not specifically saying this was all completely earmarked for this purpose, but i'm trying to understand exactly where money has been shifted and what that means for not just our efforts, but the efforts that puc claims to be making towards trying to provide a real clean power program for

san francisco. >> yes, let me assure you the $19 million is on reserve and unspendable by the sfpuc. it's waiting in a bank account waiting for direction. >>supervisor london breed: but there has been communication to me that those revenues are going to be used for another purpose. i want to make sure that if there are talks that we are not aware of, that we are made an aware of any relations to that or any other plan that might be to lafco. >> it seems this is the perfect venue to bring all of that out. >>supervisor john avalos: just to apropos to on the lafco side of the meeting on a brief path way to make clean power go forward under the current