is funded through water rates and bonds we're talking about our side of the house up until now those operating and capital needs funded through power revenues we've found i remember perhaps during the budget balancing experience over the long term they've needed capital fund to go out into the future we're brooing that forwarding its part of the capital plan as well as the budget so is projects we're funding is coming down in this fiscal year and need to be funded that's the reason for this if i could go to the slides really quick. >> we've been as i've note we've been working on this in terms of when you establish a revenue bond program be clear about the bonds to repay the

bonds we worked hard over the last five or six years on the hetch hetchy power and waterside if you look at the financial statements you'll see hetch hetchy power and water separate you want to be clear about the revenues repaying our bonds you have to a rate setting process beginning in needing o 2010 we renewed those rates having predictable rate is important for the stakeholders we've separate our capital when i look at the hetch hetchy side of the house you'll see things clearly speculated before power or water or earlier this joint category as well those are promotions that serve power and water operations and those costs are split between the 20 two sides

of the house we metabolic agencies that was an important step to stick 0 our toe in the water so to speak we got favorable opinions we'll go for a formal rating we'll share in the next month or so as i noted we balanced our long-term plans which was not only important for that purpose but we needed to balance our long term plan but showed we have senior math that can step forward and being able to show senior magazines in the power and as well as the general manager see office to handle those sorts of things in the bonld mark we assumed about $550 million of bond and over the term this first issue i'll talk about is the first piece of

that. >> this is the 10 year plan we showed you this during the budgeted i budget deliberation the doted boxes we're talking about in terms of of funding even though it's a small byes piece we wanted to enter the markets to get a reaction we feel it's favorable but start small antes and the long-term towards the bottom you'll see it is $555 million assumed over those ten years this is having a balanced plan was critical so this first sale will be coming forward in the spring about million dollars of funding requests we're going to as those monies inform about is jofrt about $29 million to fund the power

house and generate our about 5.8 million for production lines and other for transformers those are priority and critical projects that the hetch hetchy power folks are saying that is important in the counter year we'll be coming back the final note talks about the commercial paper as with water and power we'll create a smaller one and once in a while we'll see how the markets are using that and talk about it later on. >> so green bonds it is a new designation in the marketplace that contractors are looking for a basing place to put their

money where that will provide benefits meaning that bond fund companies have adverts for designations where monies are going towards mean projects but for the powdered enterprise our projects we've described are going targeted the transition of green house gas power we're actually, the first green bond issuance within the city of san francisco there are a few within the state of california but i can count them on both hands that is a new area we see that it is an opportunity for us to reach out to different investors that might not consider investments and more importantly folks in the category of the marketplace to it is a potential tint we'll be careful we want to

make sure we're not making promises we can't keep so they'll be good issues. >> there's a lot of documents i can appreciate their voluminous so i'll point out the first the one this is the master indenture the second one that is important for you your consideration is the preliminary official statement and those two documents are important because they talk about the disclosures of the enterprise and more importantly the slide talks about the indenture the first one we wanted this documents to be as consistent as possible we're creating a third enterprise that will issue revenue bonds and make sure that the documents we put forward are similar with water and sewer pursue the only

difference i'll note at the bottom of that slide a our indenture b will leave it up to us we're making the choice to have this revenue this is the new credit the vices from our investor communities that is a prudent way to accompanying come out with the best revenue so we're going to have the one hundred percent maximum debt service the eventual value is what is the debt service paid on the bond and should we have any difficult that reserve will be in place cycle two or 3 we'll look at the the credit market and determine if we need to have a receiver if those bonds fail

and 1e7 away we currently don't issue reserve fund with our water and sewer those are in the double a flow of funds is an important distinguishing item within the imagining did you form an opinion we're creating a flow of funds similar to water and sewer the basic concept you're setting up a pecking order how to pay the bills the first as you can see the revenue funds is how we track the revenues the first priority to pay off the the bonds your o and m operating and maintenance expense we have to keep them in good repair the next prioritization is the bondholders it pays off the debt

service the next prioritization is the fund it is set aside should there be a payment of bonds and so on to e so it is guess the discretionary spending and all that the comes in the final pecking order this is similar for water and sewer so what do that mean for the future we're putting in place the documents for the construct around something that is not necessarily before we continue to do everything within the powering pour enterprise we can go solar or fund energy efficiency or bosco or other agencies the one difference this indenture the expect of a

speculate electric industry should the enterprise want to go out and create a cca that line of business has to have a revenue stream to pay it's about his bills the revenues that are placed to pit those bonds for that purpose any new business line this is a to be self-supportive this is the factor in terms of the documents that are in front of the you again, very similar to what you've seen the two board of supervisors ordinances one additional issue that is more of a general authorization to establish the program it does a lot of definitions of the power and what is a revenue and you know how will again what how are we're going to pay our bills but

the other thing that initial ordinance does it asks that we set rates certify for to repie the bills urgent care center u asking us to step up the other ordinances submitting to the board this is another the structure of the documents we'll issue this many bones with this circumstances all the other documents are similar to what we're provided before in terms of next steps after hopefully, we'll receive our approval we'll work on submitting those are ordinances to the board of supervisors this month we'll go to the board of supervisors and present this in january and should we receive all the authorizations we're in a bond sale in late march and as i noted all of the

documents in front of you are the form of today should any of those documents change weigh bring those back in the red line form prior to the sale and work on that prior to the sale in march before i jump into our questions i want to thank rich our debt manager who is here hello his staff mike brown and jaentd who put a lot of effort into this item and also steve part of our financial team here present we also have staff from barbara hail and rich i didn't see team for the documents including margaret and amongst others he, of course, our form cfo todd and

with that, i'm happy to take our questions. >> well, first of all, that is exciting i never thought that would happen every every every so quite a monument are there any questions or comments. >> yes. thank you this is a pretty familiar set of documents one place where it is really different we're plowing some new ground is the bond designation can you explain two of that coin one is how we think what the market reaction is likely to be to that designation and the other what ongoing obligation this commits us to

with respect to the helpfully. >> in terms of of the designation we're receiving advise in our financial advisors at this time they're not suggesting that having the designation result in a better price or lower rate so this assumption it not assumed in my of our finances we're assuming a rate in the range of four and a half with the marketplace sold-out now it's better than our modeling the modeling is our long term financial plan we're hoping for a better pricing than assumed we don't anticipate a better market with that said the response has actually of the green bopped sales is tremendous so the advice can't promise it will resulted in a higher price but in terms of the promise of

the future yes, we will need to set up an internal metabolism to show that the funds that were receiving from the bonds actually have been spent on the projects project that generate and transmit green house gas emissions and was moved the bond investments we feel that any of the projects don't meet the the criteria one alternative maybe to carve out some of the projects perhaps some of the transition lines some of the projects that they may not be comfortable with into a sub series we will not label so we'll work with the investor community as well as our underwriter. >> i 0 notice that is a sel self-certification there are

criteria for that is there something similar to this certification and in terms of the certification the two options is the self-certified or hire on outside independent agency to write an opinion designation as relating new to the marketplace so as it relates to the teaches projects there's no benchmark with that said we've shared our project lists with several agencies that are involved with this around the world and in particular the climate action committee in london and their comfortable that the project we've put forward in this category. >> and my question was primarily with respect to the generation go facilities there are what we are it's hard to make them moisten but the

transiti transmission transmits power so everything is from our facilities but to get out during the rim fire we had to go out and get power it's conceivable to hire our transmission to generate it i i guess my question is whether this designation would limit our ability to manage that asset in 0 any way. >> no, no that's not the sense we're getting from the folks that are involved. >> and the one thing i want to point out when we purchase power we didn't transit it over the lines with when we transit power it is our ability that is why i feel comfortable with that designation if we were i know

there maybe an issue for future as we invest as we know. >> and certainly you know if there's i any kind of percentage tests but in reality i think a high percentage would be a clean generation but as we go to the changing use of the assets and finding the marketplace having a frrg a different floor i want to make sure that possible and we're not constraining ourselves. >> as of now we're not precluded but if it appears to be an issue we'll make a change in the transaction to separate out. >> it would be a trailblazers. >> that's what custer said. >> any other comments.

>> okay first may i have a motion. >> i'll move it. >> second. >> and further destruction i discussion we do have a speaker card on this issue. >> good afternoon, commissioners we reviewed the materials carefully and first, i want to thank you for your acknowledging the customer clarification on certain capital promotions those negotiations continue and as they continue certain joint water and power projects we expect something to happen and maybe it will be recarding the official statement says there's $821 million in the current vip, however, some

classification felt projects is inconsistent and we've not agreed to the $10 million for those projects so to make my statement bosco wants to be on the record and the commission to be aware that costing allocations are unsolved and those unresolved issues will be brought back bio by my board agencies at the further date, however, the statement didn't provide the clarity on what joint projects that are be funded and whether water revenues will make up that costs that's important as part of the costs you thank you. >> thank you for your comments i'd like to call now for the vote all in favor, say i. i. >> offered the motion carries arrest item 15 and 16 have been

removed and item 17 and item 17 approve the terms and conditions and authorize the general manager to have a month to month irrigation district procedure. >> i'll move that. >> further discussion all in favor, say i. >> opposed? the vote carries. >> next item and item 8 authorizing the general manager to execute an extension of a restated lease in the patrick garden club up to 90 additional days. >> move that. >> further discussion all in favor, say i. opposed? the motion carries. >> would you like a public comment. >> public comment? will i ever learn

very good >> could you please read the items in closed session. >> item 21 conference with property new yorker our properties on 2 thousand merry run and other streets in san francisco item 22 the unmitigated claim san francisco versus the engineering and it's carries item 23 existing unmitigate claim listing can and item 24 unmitigated claim and items 25, 26, 27, and 28 are removed from the calendar are there any public comment on the items to be heard in closed session? seeing none, may i have a motion on whether or not to assert >> close to assert. >> all in favor, say i. opposed?.

>> we're going rekweejdz from closed session announcement for closed session is 21 no action item 22 eave authorized action items 23 settled and 24 settled and items 25 through 28 no action may i have a hospitalization to disclose action. >> second not to disclose. >> second all in favor other new business very good this meeting is adjourned at 431

♪ ♪ ♪ >> this is smack in the middle of the tenderloin neighborhood where there are 50,000 people within walking distance. you see the kids that are using what's provided, but there is so much opportunity for this to be a stronger, more welcoming, healthier cleaner safer place for the people of this community to play. there are going to be new green areas, a full-size basketball court, outdoor fitness equipment, community garden, a

brand-new clubhouse. it's going to be a much more welcoming spot for a neighborhood that really needs it. ♪ ♪ >> good morning and welcome to the transbay joint powers authority board of directors meeting for thursday december 11. i would like to acknowledge the staff at sfgovtv that made it through the rain and everyone else in attendance and john stockhouse and jessie larsen that make the meetings available on line and the transcripts. let's take roll call please. >> i will note for the record that director lee will not be present. with that director nuru. >> present.

>> director reiskin. >> here. >> director sartipi might be late too. director kim. >> here. >> you have a quorum. >> is there any old business today. seeing none. we can move to the director's report. >> happy holidays. i received some good news. we got a review of the train box grant of what they do annually on how we're doing with the report and it's a good report. i can share it with the board if they would like to see it. there are a number of best practices they will recommend and the recent survey we commissioned to have a better survey in the construction market, the mitigation measures in place including accelerating the payment cycle and having the

[inaudible] in place and having us do outreach to smaller contractors. in addition we were commended for our job's net and employed over 8,000 people in 19 states across the u.s. and i really love that map so i am glad we put that together. we were thanked for tracking the bi-america alliance and they were -- (low audio) -- and how we track issues and resolve issues. additionally they found that the train box to be in compliance with the award management requirements. we have all relevant documents in place, everything that has been request of us has been submitted in a timely fashion and free of all errors, no errors whatsoever and we have met the financial obligations. as always we never had any findings in any audit.

it's always been a clean audit and you will hear about that later so it's a very good report. now i would like to have steve rule give the construction update. >> good morning directors. steve rule with turner construction providing construction management oversights ises. it's been a good month. we got rain this month including today so that slowed some things down but not terribly. they're dealing with it well and since we got the slap down in november we're out of the mud so that helps a lot when the weather hits so we add a couple of things to the overall schedule. i added this milestone points which we can review the description and milestones on the next sheet and we will keep these updated. for example, the critical ones