aerthsd. >> fire the rim fire and also a planned shut down with wissop it is an emergency back up we use them routinely but rely on them we shut down a local tunnel so we distancing rely on the reservoirs so anytime we fill them back up is important to us. >> thank you, steve. >> and the power. >> did you want to public comment on that one or go. >> sure public comment. >> so the last item it the power bond update and cac will have as part of the 12 item 12

and good afternoon charles commissioners, i handed out a couple of slides i don't have a followup presentation on the bond sale we typically brought to your attention and this was the first sale we have 3 fully operating water sewer and the power enterprise our first sale under $40 million and the average maturity was 14 years and the average costs 3 hunters ..9 percent and overprescription 40 percent more than bids than bonds we have a strong name recognize and the fact that is a below market rate credit and brand new opportunity for investors to buy our bond $32 million was designated as

green bond that was the first green bond issuance for the city of san francisco and we're proud and the opportunity to draw new investors we had one investor brick and rich capital sought us out an environmentally social responsible fund they bought those railroad and a chunk was bought by the investors we are trying to spread our name around to get new investors and opportunities for folks to buy our bonds with that, i'd like let you know which was a good sale i want to thank rich if you could wave and say hello he's this depth manager and a wonderful active smart team that is doing all this and g did a lot of the heavy lift.

>> thank you both and the team. >> that concludes my report. >> any public comment on the 1ygsd report. >> mr. brooks. >> eric brooks pour the san francisco green party and little local grassroots on the last part of the report just want to put in a request from the public that we see a report sent in from staff that scopes out h bonds and green bonds and all the power bond capacity so we know what we are dealing with and how they'll be used hypothetically to build for sf clean power are any program like treasure island or biophysicistayview.

>> any other public comment okay seen if you could call the consent calendar. >> item that a consent calendar consent agenda are considered by the board be enacted by one resolution in the form or forms listed below. if discussion is desired, that item will be removed from the consent agenda and will be considered separately. 7 a approach to the contract coney by 2 hundred calendar days and a station for the public works 2014 power source disclosure report and the submission to the california energy commission. >> thank you. any request for removal of items?

seeing none can you have a motion >> motion. >> second. >> and there is a motion and a second. > all in favor, say i. > opposed? motion carries. >> item 8 and item 8 do you want the wholesale and rate schedule for fiscal year 2016 as ripped other than july 2015. >> good afternoon again. >> charles cfo i have this item to for your consideration present the fiscal year 2016 wholesale water rates as a reminder those wholesale rates are contractual so for the contractual rate is governed in the contract i have a few slides to share about this item this slide shows you the historic water sales and good to start to talk about how rates in

the future are determined so this goes back a number of years as you recall the number of the dots rate is what we're managing around for both our rail and wholesale customers it is costs prosperly based on the water the customers use this chart is helpful to show that you'll see the current year to the right reflects a 13 percent reductions in the water deliveries i'll talk about that what that means for the rates so the revenue requirement is what termed as the amount of money we're meant to collect from the twhoel customers and this slide shows what the revenue looks like with the fiscal year 2016 shaded so we're

trying to collect about $243 million as you can see from go next year and that amount is split fairly evenly between costs and the debt service growth from hundred and $16 million in the next fiscal year up to hundred and $50 million is driving the rate chapping for this customer. >> so this shows the historical rate this graphic is good to show you up and down in fiscal year 2016 of $3.45 percent is a 228 percent increase it was in the low 30s a few months ago we worked in smoothly those rates over the next few years as you can see the fiscal year 2016 it

drops to the zero line i hope to keep the rate change as closed to zero as possible we've shared the 28 percent increase with the wholesaler customers on several occasions provided a 10 year plan and meet with them directly to talk about a number of things which one is the proposal and noticed them twice about the rate once in january and the second meows by the contract in april we did get feedback from the wholesale customers they don't like the rate hikes we'll be working with them enterex next calendar year to look at ways to do that. >> this is just the rate structure in a basically sort

format we subtract what we collect from the fix charge a little bit over $4 million and put that over the forecasted sale of the sales volume that's how we get the 3 point 5 cents for c cf >> this shows you again historically how the rates have changed. >> what we projected a i don't know we do want to point out the 2014-2015 projects the rate what we had told this commission and the twhoel customers we thought the rates next year will be $3.45 but higher $3.75 is because of the lower deliveries and the lower sales in the current years that is what the driving the rate change a third

of the rate change the 3 45 is a rate change is now about 28 percent. >> just the last point we have one wholesale customer that receives untreated water so thought discount is $0.37 per unit for them with that i'll take our questions. >> commissioners. >> i have one on the second slide you show the wholesale customers the number for the staying level and the city demand going up what accounts for the city's demand 0 going up. >> that's an assumption we're making, however, this is probably going to not be correct assumes we had when we prepared

this slide for the wholesale customers was before the recent announcements and the debilitations so this is what we've heard in mr. richie to go from the 8 percent savings to 10 percent for the wholesale customers that ultimate data point will be slightly below. >> that's a revenue issue for us. >> yes. >> okay. >> any other commission questions or comments. >> any public comment? okay. seeing none may i have it motion >> motion. >> second. >> second. > all in favor, say i. > opposed? it carries thank you item 9. >> item 9 approve the selection think a of an award agreement a through c to outdoor education k through 8 education grants

community gross and education outside and authorized the grant agreements in the amount of 7:30 thousand dollars for c s and $200000 for the 392 c g with a duration of one year up to 2 additional years and not to exceed of 3 years. >> mr. chairman i'd like to move the item. >> motion and second any discussion any public comment? >> okay. > all in favor, say i. > opposed? the motion carries arrest item 10. >> 10 to approve the automatic payroll services and authorize

the general manager to extend the terms by 2 years and 8 months. >> i'll move the item. >> moved and seconded. > all in favor, say i. > opposed? the motion carries. >> item 11. >> the approval the item and authorized the general manager to implement the project in compliance with the applicable law there is a motion and a second. > all in favor, say i. > opposed? item 11 carries and item 12. >> what you like me to call 6 g at the same time. >> i don't think we need to call it we'll include that as part of the discussion it's not an action item. >> 12 the possible action of the schedule of the rates for

the public works power enterprise for the agreeing gas station process in san francisco. >> okay for the order of march i'll ask for a staff presentation and i'll entertain a motion after which we'll have public comment we have statements from commissioner president caen and others this will be read into the record and we had at the beginning of the meeting limit the public comment to 2 minutes we'll hold that as well mr. general manager are barbara hale. >> barbara hale for power every two weeks an update on the cca i wanted to note we were at the lecturer the budget and finance

mayor ed lee and supervisor president london breed sponsored the item it passed out of committee and just passed moments ago on its first reading the board president included a contract to be put on the board file within thirty days of their signing to o so more disclosure that is certainly something we support at the staff level our rfp our request for proposals for back office and customer care our staff work is completed we're sheriff's deputying it threw the assigned lbe goals on the overhead projector the milestone chart for the sfgovtv thank you and

not particularly clear but today is the day we're presenting not to exceed rates with that i'm going to turn it over to interim cfo charles pearl it's cesar chavez pearl day i'll be happy to answer any questions. >> hello, again charles pearl interim cfo i'm here to present the proposed not to exceed rates for the community choice agreeing gas station and power enterprise this is one of many important steps in terms of launching this program for those of you listening not fall familiar with the cca it allows san francisco to provide a cleaner energy supply alternative that establishes the ceiling on the cca rates not to

exceed it is different from the typical rate action that involves approving a service delivery not to exceed rate approval allows the power team it move forward with the planned launch this coming january the program is leading with the affordability customers won't be pay more than a pg&e customer and once the costs are known ms. hale will run or return with permission to launch them and the rates to customers will be known at this time and present what's before you today commissioners is the request to set the initial cc and a a rates and charges and also to direct the general manager to adjust those rates once the procurement

costs are known assuming we have your approval on this package today we'll submit this package to the board of supervisors who has thirty days to take any action assuming they don't take action the rates will be demonstrated approved by the board and we'll be return in the fall to present the program in more detail along with the rates and charges we'll be including in the rates and charges of the bills this table is because some aspects of the cca program dictated by state law this helps to clarify the parts today prescribed by i did state versus up to sfpuc discretion the building scripted by state law the pg&e bill and customers will see a new component from this program if they're a customer

with cca the pursuits products and rates are up i'll describe it on the termination the customers that are part of the program change their minds and want to exit the little a program no fee and prohibited by stale for the first 60 days after that 60 day they recalled our proposal for your consideration is a termination fee of $6 for residents and $25 for businesses to so the initial not to exceed rate proposal has a goal of affordable and competitive moma the participation we wanted this program to succeed that's the bottom line here so the actions involved looking at and approving the initial not to exceed to the default product

proposal and not to exceed for the premium opt out product and as i nodded this directs the general manager to contradict the office in the fall we shouted this with the fairness board that heard the rates proposal and deemed this proposal to be fair they asked us to come back and share the costs we'll do that at the same time, we present that to this commission so here are the not to exceed rates for the two proposed cca offering the premium and default products i'm sure we'll get more creative but the default

products has 90 to 90 percent california source streamable energy and the opt products will have the remaining customers that want to pay more for the hundred percent renewable choice it is a difference of $0.02 more per kilowatt hour quickly a couple of things on the slide pg&e passed on a couple of charges for the cca customers bill the t c a or the adjustment and the franchise fee charge that pg&e assess on pg&e customers and so sometimes words are better than numbers this is a

different way of looking at the rate methodology the cca rates are looking at the basic rates and subtracting the pc i organization and the surcharge to the cca rate we wanted to share with you the sample bill will look like here's a comparison for a 80 with an customer using the 2 hundred and 36 kilowatts a small user and the pg&e customer is next to it and the bottom line circles show no differences they're in the highlighted row the first generation your generation rate is lower than than the pg&e rates in the right hand column and the lower generation cost the customer

when they're given this pc i a their net neutral that's the point our generation costs are a little bit lower it makes up for the other charges for the customers rate so there's a lot of tables attached to our resolution i want to share one page of that i know you can't read it on the screen i apologize but the vaftd majority part of the cca and that's the schedule a-1 for commercial and those are you noted their included in our exhibit with the idea we are going to focus our taken into consideration attention to draw the customers maine in those customers but bringing them all forward if a customer wants a tariff it is available to them and before i

take our questions i did want to let you know there's a copy of the resolution that includes a couple changes we're proposing in changes with commissioner moran on the second page the resolution towards the bottom the metering and the feed tariffs and i'll read into the record the general manager shall perp and metering schedule for customers with eligible onsite renewable generation those this customers get cash payments for electricity and seek commission approval and the second clause the general manager job shall propose a feed in tariff according to market prices or to induce the purchase of local

prices set to induce the local renewable sources and seek commission approval the point being that the general manager is not directed to do this we'll come back and provide that to the commission to make the determination the last second to the last resolution clause we recommend adding the words authorizing the before the word commemorate i'll read the language prior to the commencement this commission will review the costs of cca service considering the authorizing the general manager to finalize the electrical rates for the initial offensive not cca when is the lower of the resolution those are the 3 changes for proposal i want to

thank sheryl taylor she's done a lot of the heavy lifting and also to barbara hale and her team. >> commissioners, any questions. >> this is great news this is the wrgz this is the year. >> let me entertain a motion. >> motion. >> second. >> moved and seconded first of all for comments i'd like to add one comment explaining some of the changes that was presented part of what i'm thinking about the process going forward i want to make it clear to everybody advocates and public and staff as we preceded the commission has involvement

in several key areas as we add business areas for the consideration of approving those rates changes and the commission is considering approving those and as we change the offering so example as we go beyond the thirty megawatts this is something the commission will look at the pros and cons and i'm hoping but i think october will be the point for getting upcoming the officially launching the program we'll have several that hiss of information considering the business plan second is that we'll have financial performance that shows you how the revenues will cover the expenses we have bans the power solicitation and the risk analysis and request and i don't

think we've requested this the staff present us with the marketing plan and an analysis of the customer offering that will be made to any cca customer if you're a pg&e customer you'll look at the website i'd like to make sure we are we look at that and make sure as a competitive package and that this is available for outreach as well so with that by way of explaining the other changes i'll read the comments from commissioner president caen and commissioner vietor first from commissioner president caen i've been excuse me. i'm truly sorry i'm unable to join everyone it is a sf clean power ford i want to express my comments for the sf clean power for the path to

achieve the city's green house gas emissions and stimulate the local renewable location and jobs and thank the continued elected family and the lafco and general manager harlan kelly and assistant manager barbara hale and hope we'll continue to press forward and build on the important monument in order to insure our program is ready to launch january 16th and i'm sorry, i can't be with you for this historic occasion for sf clean power but with the adaptation san diego was working but folks like you to reverse the investment change after so many years i'm thrilled the commission will vote for the not to exceed sf clean power and it

is a critical step in moving the sf clean power i think there's a typo illicit assume is it the sf clean power forward and will send a strong signal about san francisco's seriousness of the complieng climate change i know when the sea levels rise and if any daughter asked if i did something positive i'll say yes. >> with that in the record i'll open up for public comment yes. i'm sorry i do have some cards jason fried. >> jason fried executive officer of lafco thank you it is a kind milestone for the program not to exceed rates and moving forward it is extremely important i know my commissioners