we aren't actually working for the extension because we are working with the contractor to try to bring them in as close to the original schedule as possible. so it's rare where we come to you where we say we're not delayed but we might be. we don't want to give up this schedule that's why we're calling it contingency. >> i'd like to move the item. >> i think we did. it's been moved and seconded. >> oh, it has, that's right. >> i have a question. as i recall, we had, there was the sliding plates. has that all been corrected? >> that has been corrected. there were some delays associated with that as well. the original design they did not get the adequate bonding with respect to the two plates, they had to go through secondary and tertiary vendors but that problem has been solved. >> it's solved and is not going to come up again? it's been connected.

>> yes. >> all right, public comment on this item. i will call for the vote. all those in favor? opposed? the motion carries. next item. >> item 13 approve an increase in the construction contract cost contingency for contract no. wd-2641r in the amount of 522,328 and increase in the contract duration of up to 376 consecutive calendar days and authorize future modification to the contract. >> emilio cruz, assistant general manager contractor. in this case we know we have an a15 tif delay. this is primarily because of the drought conditions and the need to bring in additional water. as part of the wisa program and part of our commitment to sustainability we committed to establish new watershed areas, new wetlands areas. and as part of that contract, the

contractors responsible for developing the wetlands, bringing them to maturity and then once mature they have a 3 year maintenance requirement. because of the drought conditions and because of some of the conditions with regard to some of the plantings that were outside the control of the contractor, we do anticipate the need for another year to further establish these plants which allows us to then extend our maintenance period. so the start of maintenance is also delayed for a year, which gives us more confidence that at the end of the contractor's term we will have fully maintainable and fully grown wetlands. >> i like it. any other comments questions, of mr. cruz? >> thank you. >> may i have a motion? >> sure. >> second. >> do i have any public comment on this item? i will call for the vote. all those

in favor. >> aye. >> opposed? the motion carries. next item. >> item 14, discussion and possible action to authorize the use of state revolving fund loans in addition to waste water revenue bonds for an aggregate principal amount not to exceed $819,035,941. >> i believe the number is 13 not 14. >> 14. >> okay, yeah, on mine it -- may i have that back? okay, so we are on no. 14,

item 14. >> good afternoon, commissioners, charles pearl, deputy chief financial officer. this item before you today is to request your already-approved authorization for the waste water enterprise to issue debt. a year ago you issued an authorization for us to issue waste water revenue bonds and what we have before you today is some great work that our senior management, dluiing general manager kelly and deputy general manager carlin and former cfo readstrom, they have been in communication with the state in looking at what the state revolving fund loans and we are in the process of executing agreements and we would like your authorization to expand your existing authorizations to include these loans. so this is not new authorization, this

is essentially re-upping the authorization you approved a year ago to add the loans to that authorization. what you have attached is an ordinance that we'll submit to the board of supervisors. again it's not new authorization, we're just revising the already-existing authorization to include these loans. so i just wanted to first for the record say what this is all about and i'm happy to walk you through the program if you would like me to do that. >> commissioners, would you like to --. >> i don't think we need to -- at least i don't need to go through the program. the debt that you are talking about is state money and how does the interest rate compare to what we are able to get on the open market? >> sf puc had tlees loans back in the 90's and the current rate is pegged at the state general obligation bond rate which is right now, and that's 50 percent of that rate, so right now our rate would be

about 1.7 percent. once you add in our financing costs and capitalized interest and that sort of expenses the cost would be about 2 1/2 percent or so for our borrowing expense, compared to our revenue bonds if we were to issue a revenue bond that would be in the 4 1/2 percent range, so it's about a 2 percentage point savings if we were able to secure these loans. so the first step is for the commission to take action on this today. the state is actually looking for this resolution to be part of the loan application process. it would go to the board of supervisors as well to have them approve that, that ordinance, then we would package these documents up and submit that to the state for them to consider our future loan application. >> thank you. that's a significant reduction. >> wonderful. >> so i just -- to further understand that a lilts bit -- that translates into two million per year for every hundred million financed? >> that's right. that's right.

>> and the total is 800 million, approximately. >> the state has looked at our need. in particular we're talking to them about the sewer system improvement program and all of the future revenue bonds that we would have to issue for the waste water enterprise. in that light we've come up with a listing of projects that could qualify and so right now the estimate is a billion or maybe a little more than a billion dollars is potentially available, but this approval today and then the board of supervisors' approval would be the first steps for us to formally submit our loan application for the state to weigh in on that question. >> so we could potentially get as much as a billion dollars in loans and that would translate into savings of --. >> yes, significant savings. for each hundred million dollars it's about a two million dollar savings per year in debt service. and how that translates to the average customer, that's about a 40

cent savings on your monthly bill, so for every hundred million you can just multiply that out. so a significant saving. >> one of the things that we've been doing is going to the state and looking at low cost finance and on the waste water side they actually increased the term. before it was a shorter term which, you know, not 30 years it was, like, 15 years. >> 15 or 20, yeah. >> 20 years so it wasn't really feasible but now they have a longer 30 year so these become more attractive and we're trying to promote that on the water side for water projects as well. >> i'm pleased to see that one of the projected projects would be the digesters. >> that's right. >> always looking out for my digesters. >> actually one of the larger projects. >> i think it's marvelous. any other comments, questions? may i have a motion?

>> i will move the item. >> i will second. >> do i have any public comment on this item? seeing none, i will call for the vote. all those in favor. opposed? the motion carries. next item, please. >> item 15 public hearing under the california water code section 10723 and action to establish the san francisco public utilities commission as the ground water sustainability agency for the downtown, marina, lobos, and south san francisco ground water baifbs and the northern portions of the westside, islais valley and vezation valley ground water basins located within the city and county of san francisco.

>> ellen levin, this is complying with state water to establish a ground water sustainable agency and it makes sense for us to do this now. >> i have a question. how did you decide which ones to give to low priority? >> it wasn't us, it was the state that made those determinations. >> oh, i see. any other questions, comments? may i have a motion? >> i will move it. >> second. >> any public comment? seeing none, call for the vote. all those in favor. opposed? the motion carries. >> item 16, adopt a resolution of intent to prepare a groundwater sustainability plan for the northwest side ground water basin, located within the city and county of san francisco.

>> i'm just here to answer any questions if you have on the item. this will be, we have a ground water management plan that we've already gone through the first phase of development with and we're going to switch it to the groundwater sustainability plan and finish it out. >> i will move approval. >> i have a question. i guess at some point it would be nice to understand again, we've probably gone over this, the groundwater component of our integrated water management plan for the city and region and our wholesale customers, and whether this designation helps us in any way or whether there's anything to know as far as planning you know, because i know these regulations from the state level have come online now. this is probably part of compliance with those regulations. >> it is. we've been moving forward with development on our groundwater basins that will provide us with water supplies. so you have recently adopted

the groundwater storage and recovery project which is a joint project with some of our wholesale customers, a conjunctive use project to use surface water to allow the ground water baifrpbs to naturally recharge in the southern part of the west side basin and then in dry years we would be able to extract that ground water to supplement our dry years supplies. you have also adopted the groundwater, local groundwater project where we'll be able to (inaudible) there's about 2mgd that's being used in golden gate park now and we'll be adding two mgd so it will be four mgd coming into the potable system. the ground water sustainability plan we've been already developing management plan because it's very important to make sure we manage those basins sustainability. we don't have

water intrusion, we're making sure we're not pulling more water out of the basin than can be naturally recharged. the ground water sustainability plan have you set more limits and i would say in many ways we've been doing it already because we want to make sure we have a sustainable project, but this sets some more parameters to make sure you are including in your plan. >> that won't need to come back to us? we are adopting that we're going to comply with those new regulations? >> this is a resolution to prepare it and we will have a draft that will be available for public review. we'll do a public meeting on that draft so it will come back to you. >> for adoption. okay, thank you. very good. do we have any public comment on this item? yes. >> good afternoon, peter

jackmier, tuolome water trust. an employee asked me why i don't speak any more. because i don't have anything to complain about any more. i think it's great that the puc is getting on top of the groundwater issue. groundwater is going to be so important in the future. down in orange county, you probably heard about a program they have there, they do advanced purification of waste water and let it percolate down into the ground water and that's their primary water source. they use existing piping, they don't have to use the purple pipe. the santa clara water project recently brought on line a waste water fuer fie case center, it's distilled water, 8 million gallons a day. what they're going to do it is blend

it with their typical blended water, bring down the salinity. i think there are a lot of great opportunities. i think for the west side basin maybe if we could try to recharge it proactively with advanced treated water that could be an additional water supply, not just during droughts but year round. we're looking into a project like that on the midpeninsula around the san francisco creek area. people are accepting it, there's a lot of interest, we are entering an era of these mega droughts for a decade. if we can find a way for conjunctive use, my congratulations to staff for pursuing it. >> thank you, that's interesting information as well.

>> again again, commissioners, eric brooks, i'm on the water committee of the bay chapter of the sierra club. it's really good to see such a strong move toward groundwater and hopefully toward the things that peter mentioned. and so it's much more desirable than the plans that have been on the table and are still sort of on the table for desalination which the environmental community would like you to steer away from. in my water advocacy i've run into some constituents in san francisco who believe that our water quality is going to be degraded by using san francisco groundwater. so it would be good to have staff prepare a public education campaign if there's a budget for that to let the public know this water

is just as clean as the water that you've been drinking out of your tap the whole time. i think that's really important and it's something that should be addressed. thanks. >> thank you. any other comments from the public? i'll call for the vote. all those in favor. opposed? the motion carries. next item, please. >> item 17, adopt a resolution supporting the job training academy at gleneagles golf course. >> good afternoon, michael carlin, deputy general manager. the item before you is to participate in the development of a job training center at gleneagles golf course. this has been under development with multiple departments within san francisco as well as a number of labor and community leaders. this is a resolution that

would allow us to continue to work towards that goal and establish the training center which would help a lot with training programs that we the commission, supports out there for people to get into the job training sort of pipeline. we support things such as stewards and other things that allow people to get some job training but this would be more of a job training pre-apprenticeship pipeline to get people into the trades or even further. at this point it's an idea that's come to fruition so we want to appear you to acknowledge we're working on it and working on it with other members of the city family and to get your support to continue to work on it and bring it back to you as it comes to more of a proposal to look at how we would actually implement it. i'm here to answer any questions. >> thank you, madam chair. i do want to just quickly

disclose that i do have a professional relationship with the lcgf which is documented in the documentation. i think a lot of time and energy has gone into it, i see a couple of my brothers there, jesus and javieer, i'm sure our new commissioner will have a comment to make on this issue. it's unique because depending on which meeting you come to at the puc you really don't know what issues are but a lot of times it's the work force and community development that we all hold near and dear to our hearts. for instance on our building at 25 market street we were hitting numbers nobody else was hitting in the public or private sector and we were proud of that fact. i think it's important to note this is a public private partnership because a lot of the opportunities that we have to place these men and women in

the community are in the private sector. a lot of these men and women are finding a way into the public sector in departments that i have relationships with with the laborer's union as a conduit, the department of public works, recreation and parks and some others. what this is intended to do is bridge that gap and create a pipeline into not just public sector job opportunities but also private sector job opportunities, which is unique, because if you don't have an opportunity to expose those folks and i know the commission will develop more on the idea but if you don't have an opportunity to expose those folks to that private work then you are missing out on an opportunity to really empower a community that's often times underserved and under represented. i'm excited about the fact our chief administrator, naomi kelly, has taken the toich on this, the det of human resources and obviously our own harlan kelly,

phil ginsburg and some other department heads, it's important to note that in order to put something like this together you need staff involvement. you have to have political will. julia ellis who has been critical in moving this forward, also massud orkadani has been outstanding. we are a labor business community oriented group and if you guys are interested i will make myself available cht i fully support the resolution and i hope you guys will too. >> any other comments? >> it would be my pleasure to move the item. >> i will second it. >> okay, we do have a speaker, chairman walton. >> thank you, commissioners, attorney general kelly thank you for a brief moment -- i'm

sorry, general manager kelly. >> thank you. i'll take the promotion. >> way to start off the afternoon. first of all i'm just here to talk in support of item 17. gleneagles as you know, is one of the hidden gems that we have here in san francisco, it is a great golf course, 9 hole course that a lot of our public are starting to access and have been accessing for years. we have public housing communities right around gleneagles where there is a community of folks who are dying and eager to get to work and so we want to make sure that those opportunities are provided. one of the things we know about training as evidenced by some of the programs we work with the puc on when i say we, jung community developers as the executive director, we have been working the last 3 years providing intern ships in accounting, government relations and architecture with 16 to 20-year-olds in various architecture and engineering

firms in the puc, those have led to pipeline opportunities where some of our students are now in college majoring in those areas, particularly engineering and architecture, as well as the trainings we provide at ycd, we are placing over 76 percent in private sector and public sector employment opportunities through our training programs so we really know that training and internship opportunities lead to living wage jobs. so we're excited about this opportunity because not only will it be introducing some of our community to an opportunity that they are not typically used to working in landscaping and other areas where they can also learn about golf there is environmental aspects of this that are going to be magnificent for us. but it also provides them an opportunity to go on to opportunities in the public sector, private sector, or possibly the nonprofit sector in terms of what this training will lead to. the partnerships through this have been tremendous. as you know, a lot of city government

involved a lot of private sector involved a lot of public sector involved, bringing it all together to make sure opportunities are provided for citizens and constituents and isolated and disenfranchised communities becomes available. we want to make sure our constituents are prepared to go to work. so we're in support of this resolution and i did not state your name, shamal walton, executive director young community. >> my name is jesus lobos, i'm here in support of this resolution asking your support also. like they're saying right here, it's hands on training if they decide to go

forward it's a great path for a career, not just something they are going to do for a little while. it's a lifetime career if they decide to go that way, get their ears wet. >> thank you. >> good afternoon, one last time, eric brooks, san francisco green party our city san francisco and also san francisco dleepb -- clean energy advocates. i want to stand in favor of this resolution and ask san francisco for take being the lead on making union hiring much more robust, training much more robust. it's really crucial that this agency is driving that process because a lot of the other agencies in san francisco have dragged their feet on it, have outsourced a lot when we could be hiring union labor. and we of course want you to continue that partnership with clean power sf because we're looking

at upwards of 9,000, 10,000 jobs. it's vital that we make sure that those jobs are union jobs and as many of them as possible are local jobs. so let's take this as sort of a next step towards that even-bigger project, making sure that we really maximize union labor on that clean power, much larger clean power sf project. we can do that, one way we can do that is to make sure that we launch the local build out of clean power sf just as fast as we launch the program itself. we need to make sure that these are working together and what will really maximize the jobs for especially unions like the labor local 261 sheetmetal workers and others is to make sure we have very robust energy efficiency and solar and other what's called behind the meter

resources put on homes and businesses in san francisco. that's where we're going to maximize jobs and it's where we're going to maximize local jobs. that's where it's also tough to maximize union jobs so we need to make sure we're on top of that situation so that that, we don't drop the ball on union jobs for local distributed behind the meter resources that are small like that. that's a challenge and it's a challenge that needs to be faced if we're going to continue this agency is going to continue to lead the way on union hiring. so that means we need to really flesh out well what was not fleshed out that well in the internex report which is exactly how we're going to do those behind the meter resources so i hope you will pursue that as well. thank you. >> thank you. yes, vice president. >> i have a question about, and maybe for michael, it does say in this language making the golf game a more

environmentally sustainable activity and talks about water conservation. can you speak to that? are there specific goals around that? >> there's not specific goals but i would say part of it is a partnership with gleneagles golf course to do integrated pest management, water conservation, all those types of activities that would be part of the training program. there might be more so we're just kind of covering like scratching the surface at this point in time. but as we develop the program we'll have more specific goals and objectives. >> also i just wanted to point out that we've been working on this not per se the glen eagle but the habitat restoration where we had a, part of the water system improvement program we had land that we had to maintain as part of the ceqa mitigation and so what we've done is we work with contractors because there are

certain wetlands that are sensitive land that we had to establish and what we did was we worked with the contractors to do a training program and that's one of the programs that we brought forward. and in doing that we talked to vince about maybe doing an academy and have it located one place because the model that we were having before was that we work with the contractor and work with city build to provide some type of training into working with these contractors but it really didn't have a training core. and i think this was sort of the missing piece that we are thinking that was needed. i don't know vince, if you want to add on to that. >> just to commissioner's point, adding a environmental component, we expected to have president arse here today who is also participating in the conversation, he just had a child so he won't be here. but i think he will be satisfied,

they actually amended this resolution to include a environmental component dealing specifically with the items that we touched on at our joint meeting, the ipm that we wanted to do some pop-up there. we have integrated pest management specialists throughout this city in various classifications so we wanted to do something a little more centralized through the environment department. >> i love the idea of there being a training academy to look at golf courses in particular and the opportunity to become more sustainable because there are a lot from pesticides to water to hab at a time conservation issues. i would love to, as the program develops, at some point to have you come back and to hear about those specific environmental initiatives and how we can really lift up this site and the career opportunities around environmental goals. >> absolutely. >> thank you. okay there's a motion on the floor.