concession leases cricks is the minimum annual percentage rent based on gross revenue whichever is bigger in this case the body shop paid on a rent basis their percentage never exceeded their guaranteed minimum amount of rent. the projected loss in revenues to the airport for this early termination is estimated approximately 71 $71,000 cricks is the difference between the rent 2 hundred 69 thousand and

the termination fee proposed of 198 thousand. however airport does not anticipate overall loss in revenue as we have lined up a replacement ten innocent that will come to you in the form of modification to the current lease of the hudson group you will see that in the couple weeks the budget analysis dots recommend approval i will go to questions . >> thank you why don't we go to your repo what really relats to

this ledgelation is the feed in program that's an offering we will set a price for purchase of power for renewable resources that are generated locally we will take any offers from the marketplace we will do that under a standard form

contract that we intend to dlvl. those have been dlvled already for our sister community choice segregation programs clean energy sanoma clean power. very successful way to tell the market what we're interested in terms of local regional construction. i included here the schedule and key milestones just for reference. let's talk then about what the proposed ledge sleazeive reforms currently the sfpuc has board supervisor

vised approval to contract for power up to 5 five years using a standardwe know that to the end tent we use standard form contracts for the products we're seeking to serve our customers with that will be the most cost effective way to bring power supply to our cca

rent payers that's what we're striving to do here. the proposal before you delegates the authority for pc to enter into contracts -- it should say

25 years 1 of my changes did not get made there sorry 25 years in duration and ten million in it's another stand and form contract used within electric trig authorization to use standard contracts the electrical institute contract and other standard form contracts in order to have things like lit fit program i

talked about earlier it also includes wavers section 3 authorizes the puc to use the pro forma standard contract up to 25 years and specifies those agreements individually cannot exceed 125 million dollars $125 million over the life of the contract or an aggregate all of them cannot exceed 5 million $5 million again those contracts the authorizations come with wavers. the additional

limitation is we are only allowed to use that authority when we are procuring renewable and green how gas free energy that is located within california. with that i'm happy to take any questions you may have? >> supervisor? >> thank you very much i understand the puc already uses some of these perform contracts i wanted to see if you could

explain to us if we were not to approve this order yens what would that mean for the puc and cc a. >> we only make contracts up to five years in duration which is sufficient for the services we offer today. under the cca program we would like to build a portfolio of supply so a mix of contracts that allow us us to have varying duration that will help mitigate the risk of

when the contract the portfolio supply when those expire we will not have them expiring at once and have a bad situation in the market we want varying duration so we're in the market at different times providing changes to our supply portfolio so we want to have some of the supply be greater than 5 five years duration we don't have

authority to sign contracts greater than 5 five years duration today. without going through the full board commission and board review process. >> so why are we nervous about going through that process? what we want to make sure we do is present to the marketplace and attractive opportunity for

the marketplace to sell their power to us we want to make sure that we are an authorized counterparty to make a commitment. we have a very short lead up time between now and when we will be serving customers even in the standard contracts there will be points that need to be negotiated and we need time for that. so we're

looking at the most opt tom opportunity for the cca program what we're lacking today is the ability to operate at a commercial speed and put it together as the most cost effective price point . >> thank you for that and the in term of the waver we're going to be including for example increase legislation by small micro lone businesses sweat free contracting you know

those kinds of things those are all ways you have included in some of your other standard contracts as well and there has been no issues with those. we do routine lie contract yulesing the western system contract pool standard form agreement today those kinds of wavers are in place for those contracts as soon as we start to add some of the standards to

the contract proposals then our counterparties are looking at terms they're not familiar with and they don't have authority to execute on they engage their atornnies sometimes they have to go to the board to get approval. we want to make sure we can set ourselves up to operate at a commercial speed at hit the launch target day in january with a cost effective supply. >> thank you very much. >> thanks very much. why don't

we move to mr. rose's report and see if we have any questions . >> mr. chairman and super survivor tang. on page 50 of the report we know the san francisco public utilities commission would enter into contract for renewable and greenhouse gas resources up to one 125 million which exceeds

the board approval contracts exceeding ten years and ten million $10 million we also report the ordinance on page 15 of our report of various contract provisions provides that the general manager finds in writing both of the transaction presents the best opportunity available for services and products expose of

excess power that is inefetched to the city. we propose. the annual report to the board of supervisors and the duration of power purchase contracts enintered by the fpic on the contracts on page 16 of our report we note that -- let me correct that -- on our recommendation number two we're advised by t ci at's there is various languae t leg whi would indc t t us we should

withdrawal reco it is ce we sat bad o vi o t c an mbib n so reco ar we recommen yo pp t oe i t rep sot t inclu pro rat cr to cca to reco c a copariso o fsb to pg and e rates we recommend yo c ap o as rto boar s > k y> mr. rose pu krchl u i agree t re rec? y we e thak y> oka n ot any public comment? >> jason i sat in on two ah ken

w t pu krc h ne g for cot pcms cot i th i a imp a ne t i se a yo d get m ped o t contr whi legi all u to d the ot t i tain so o larr commerci ms ont s they' li f a wo l t s p they to join a cca progr a price stability and th one t t go ou ge loe te cots in th lo ruso last would be recommendning mo to full board thank you. >> any other com p cs? s public

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