. >> good afternoon today is thursday, may 14, 2015 welcome to the lafco of the city and county of san francisco in my mind is supervisor john alavos of chair joined by right commissioner crews. >> commissioner mark farrell today is clerk is lisa and today is brought to you bus the commissioner honda jim smith and charles kremenak madam clerk

any announcements? >> questions great, thank you at all did first item. >> call to order of roll call. >> we'll done a role of sorts of on to item 2. >> approval the loovks approval of the minutes for the special meeting colleagues you have the note any questions or comments changes seeing no comments open up for public comment on our minutes any public comment on this item? and seeing none, public comment is closed and if we could have. >> so i move approval of the minutes. >> second by commissioner crews and we'll need to roll call vote we'll take that without objection. okay. we'll ago ton to we need

a change of order of anything item 3. >> item 3 consideration and approval of the final lafco budget for 2015-2016. >> jason fried executive officer the budget is a relatively the same as presented in the budget of last month one small change as discussed at the meeting we're going to be changing the process to reinforce the city clerk we'll be making i paying for it as needed basis this not to exceed rates and also we've done an celebrate in determining how much time for the clerk time and how much time to be spend on the mosaic time there are a slight change in the numbers and in the end it will mean a savings of 15

plus thousand dollars for the lafco for the purposes i'll be suggesting we take that amount of money and return that in addition to the number we pledged to your honor to the city and county 0 we'll be this year ac hundred and 24043 and keeping that and returning hundred and 63289 bad actor to the city and county once again encouraging us we're keeping hundred and 97 thousand and returning hundred and 63 must to the city and county to use as it sees fit that concludes my presentation. i'll be happy to answer any questions. >> do we have to make a motion. >> yes. >> okay. so let me see if i

got that right i'll go to public comment go that believe public comment is closed. and so in our motion we want to say we're keeping the stature amount but running to the city clerk's office. >> it is 298342 so we get the full amount in there are. >> i'll stipulate the motion the motion to be retain the staurlt amount of $297,000 plus but pride the office of the city clerk with the 2 hundred and plus thousand dollars. >> it is not supplying to the clishgs but returning back to the 71. >> can someone make a motion on that okay. that motion by vice

chair crews and sickened by supervisor mar we'll take that without objection. okay next item item 4 community agreeing gas station a status on the sf clean power for the launch and status update on the california utilities commission. >> things are moving quickly barbara hale is here. >> thank you barbara hale assistant general manager for power happy to be here and report open wantscca project we've been successful and not to exceed rates to the commission we went through the rate fairness board address had shoulders stakeholders meeting and brought the result to the

commission our commission voted to support from the not to exceed rate on may 2nd we will be sending this to the board of supervisors for that staturey requirement day period on the the legislative. >> that's if we take no objections 80 action to go into effect the ceiling rates not to exceed and moving forward and for the legislative issues we succeeded in the procurement reform through it is now ready for the second reading on may 19th we have our $4 million appropriation for the cca program that passed the puc on april 28th and introduced to the board of supervisors i said that

the effort to shoot for the june 3rd budget and finance meeting and we also have requested the release of $2.2 million on reserve at the puc for the cca and that was the fiscal year of last budget. >> last budget yes. >> and we're curling responded to questions about to the budget analyst about the issues. >> what's the conditions of the erase of the reserve the $2.2 million and i believe that was to demonstrate the progress on the 48 program. >> yeah. >> i'm double check with the conditions. >> i believe this is in process so. >> yes. thank you. (laughter) i feel like i'm running as fast as i can

>> i appreciate that. >> we will did have a successful stakeholder meeting we have our second stakeholder meeting scheduled note for june 30th our intention to cover the community engagement and martha strategies have an open dialog about that we've been having discussions with with this lafco staff in advance thought that communicated meeting you you know trying to be collaborative and brainstorm together before we put together a proposal that present at the stakeholder meeting trying to move that ball forward and the puc staff will lead that on june 30th and in terms of the business sort of things we do have an number of kr5sh89 services underway our communications contract one of them that contract is

operational we have an effort to get the request for proposals issued for a back office customer care and billing data we're hoping to get that out the door in the next week or two it's going to the final city review processes it is left our shop so to speak and getting it's final city addressed. >> when do you want that that to be finalized and maybe probably won't have a notice to preceded under that contract until the october timeframe. >> we're commencing in october. >> the contract selected on the books and able to start to bill us for the serviced they're

providing and then we had already have the operational contract with pacific energy advisor the business case issues their now under contract they are the same firm that helped to launch of mri republican energy and the lancaster the 3 choice programs lancaster about a month and selma for 3 years and, of course the marin celebrated their 5 year anniversary celebration to them we have pending requests for pg&e and also outstanding pg&e is going to be delivering their lastly customer data to us you know every year we requested

of them and pay them for it they deliver it we're expecting that in june it is important to the business case for cca help us establish the customer enrollment plan and help us refine the numbers and the performer on the cca program having that real world data commissioner crews we have hundred and 10 enrollment statements of interest and enrollment on the sf clean power website i think i reported 94 it is up a small amount since the last lafco you asked 0 for that report so that's the basic update on drake we can role into

regulatory effort if you like. >> one more question i have. >> yeah. >> so we are finalizing the procurement legislation at the full board and one request we made to start of the rfp process earlier as quickly as possible krurl with the legislation knowing we're going to pass it and the mentioned the name. >> that's one the tasks we gave them to look at the package and gusts advise on how to put together the best offer for proposal and given the voices from lane cast caster and, etc. >> our target date. >> i don't know how much earlier we'll be able to do it from what we projected but we're

targeting early august. >> okay. >> we definitely got the message you want it to go out earlier it is in our interest to look at the offer and respond the earlier we get it out the better. >> great i think we're able to really measure that program is going to launch by those contracts being finalized your biggest threshold i think this year so. >> i think you're right commissioner bausz because the largest cost component for this program is the supply under the influence of alcohol all the elements will have to come together for us to be able to launder the program we're still on schedule anybody for the cca update.

>> sure. >> i'm sorry, i said cca but the regulatory update. >> regulatory. >> okay. my mike is on the regulatory update michael the interim director between lafco it is a pleasure to be here i took a ohio tuesday to welcome the birth of my first son on april 9th it is pretty exciting time for my family and looking forward to the birth of another child with sf clean power hoping hopefully with respect to the regulatory issues it was a big week away because last time i was here we recorded that the california puc district pg&e and the other utilities to file advice letters detailing the implementation of the green

tariff programs that occurred this week on wednesday and there were 3 advice letters filed by pg&e covered the aspects of the program one laying out the terms and conditions of service another dale their market plan and final one that lace out how all 3 of the investor utilities procure the energies under the program going forward advice letter it details the terms and conditions i want to provide a flavor of things it gets into first sort of a basic program priority offering in the tariff pg&e is offering the option phenomenon for the consumers to purchase 50 or

hundred percent renewable energy not a sliding scale one or the other. >> it sounds like it's familiar. >> yeah. it does also customers enrolling in the green tariff my cancel or terminate their enrollment at any time without a termination fee the one condition they've identified if the customers try to reenroll three can't do so for a year this particular advice letter included pricing for the program and the pricing varies by the customer class that's been served and i'm happy to report most the

prices are above the $0.02 premium i included in the not to exceed proposal adopted by the sfpuc and two small and medium commercial are slightly below the two crept as it becomes finalized we've modify that to be consist consistent with the green tariff and to be clear they'll be locked into open what their submitted in the letter. >> no. >> through the pricing. >> to be proved by the public utilities commission. >> this is pg&e's final proposal it is not final until a cpc resolution approvals that this is a protest period and that protest are period ends june 2nd so sfpuc staff are evaluating

the letters for potential comments or protests as other equities so. >> that will be set after the protest test by the california public utilities commission and what comes to our final prices we'll base it in relation. >> the pg&e price will be finalized and we'll evaluate what we need to do with ours. >> so i also mentioned that pg&e present a market plan they're proposing year one marketing budget of $1.5 million with respect to kraiks's pg&e says they'll not unfairly target

kraiks e cca customers outreach efforts will be xhublth and not targeted particular areas they don't intend to select lobbying in an active cca territory or a cca implementation plan adopted by a local authority that includes the city and county of san francisco sorry that was lancaster caster. >> in california edison. >> lancaster is further south. >> yeah. >> pg&e - >> commissioner crews has a question. >> i have a quick question when pg&e says they'll not have target marketing to cca

customers did that extend to the ibw or move out. >> no, it didn't apply they're a separate entity audience fair enough. >> so i mean you do all that. >> barbara mentions here that they do use language unfairly we'll be paying attention to how their martha the program. >> good news. >> so just a couple additional comments pg&e will send materials mentioning ccas and the gastrotariff for review and approval by the california puc's office that office is serving always ash take care for the cca

communications and then finally providing a summer summary of annual reports and there should be public reports finally we're reviewing all the advisor letters for any issues of areas where pg&e may not be complying with the puc decision or state law on the green tariff program and as i stated the protest on june 2nd so if you have any additional questions i'll be happy to answer any questions sounds great, thank you. >> mr. freed. >> jason fried i think that she stole my comments i don't have much more to update we were

talking about the marketing others do you might remember several years ago many innovation was coming in lafco and we were sharing that with the city attorney's office did you see negative marketing let us and the puc know to make sure that is there the city attorney's office filed information with the c puc and got changes in the wild west days when there wasn't regulatory things penguin had to go through the program so if you see things make sure we're aware we'll really to try to nip it in the bud. >> great, thank you to wondering mr. highness are there opportunity for us to share information with the clean

energy or cinco de mayo mom represented to the penguins green tariff. >> absolutely we've actually have commended on a regulatory basis with the clean energy we've convened a monthly meeting that's beneficial and actually another thing i was going to report on i'm glad you asked earlier this week the sfpuc convened an ongoing quarterly meeting bringing all the active ccas or interested cca asas to the investor to identify challenges so those are brought to the attention of the cca and addressed why a

cooperative and knows walgreens way we learned new things and met new people that was helpful and continue to participate in that. >> great that brings up another question you mentioned that one of the letters that pg&e had produced was looking at how their investors will procure clean energy so it sounds like e sister-in-law pencil is not producing their energy in house and could be going on the market to purchase cleaner energy is that creating you know challenges for us as we're going out on the market to do our procurement. >> that's a good question and so - pg&e will be going to the market at their distancing going to the market for renewable supply and we're going

to be seeking bids from supervisors that are being slld by a number of entities not just pg&e one thing that is so pg&e is mandated by state law to throw the green tariff to develop new renewable resources they're doing with their solicitations they're going to be signing contract to build projects new projects that takes a number of years to come online we, of course intend to do with our cca program pg&e will launch their green tariff program in the next several months 67 months maybe they'll be able to lean on resources they already have in contract that are operating we'll be going into the market to request contracts

with existing operating renewable resources this summer and to receive bids to develop new resources sort of over the near to medium term i guess to answer our yes. yes. it is a competitive market we'll be expediting with penguin for the supplies. >> i'm wondering in terms of the the scale does penguin has a lot of muscle to pay a rate that's higher than ours they can for the record and will skew the market in any way do you feel that's a good basis to feel like we're competitive with them to pull the market in our direction. >> so let me offer a prospective that barbara hale assistant with the puc penguin is a very large procureer

they're certainly not loan we'll be in the market and all the municipally owned utility mud and la and santa clara that's a lot of boroughs and sellers we have the procurement ordinance nearly finalized will help us with the tools to contract for power that's a help you that in sort of illegal our position relative to the exerts the cca programs are exerts it is a robust and liquid market pg&e is big but that can work tha to their disadvantage they have a cumbersome approach to procurement. >> if i could add to the issue of lots of supplies that's itself cats that's good news

what we have observed from pg&e solicitations is actually, their getting ten times the number of bids they end up u up offering contract that is the case are marin clean energy so suppliers on the sf clean power and the ccas their seeing a lot of bids and so yeah. we're hoping to as well. >> what would be great to have maybe for next lafco meeting to have you know where the market is like the supervisors to be able to see if it is possible to put together for next month or month after to get a sense of what products are out there and a kind of moderating is that something that can be done.

>> we'll be happy to bring that back in the 2 most timeframe. >> great, thank you. >> no other questions any other thing to add to the presentations so thank you for great to see the progress that's being made and i feel there like that was a good sharing of information for us so we're going to open up for public comment anyone who wants to comment please come forward we'll public comment is closed. ? an informational item so we don't need a vote so let's go on to the next item. >> item 530 years think an amendment with miller and owen merging with the holtzman and llp for one term of one year. >> jason fried.

>> jason fried lafco staff our legal services is on a year to year basis one small change ms. millers firm is meeting with 0 another firm made up of city attorney's this is a positive thing not only do we get ms. millers continued experience but should we have questions own other things in the city ms. miller will have someone else to go to i think that is a positive step in the right direction we're asking for a not to exceed rate the same as last year should the commission wish to be in the extended agreement we can terminate the agreement at any