policy and multiple benefits for the staff in this process. in this review we are recommending ascension only three types of revisions to the policy it relates to the board of supervisors authorization and the disclosure practices and the refunding criteria. when we first started this process we sought debt authorization through the board of supervisors and the commission delegation of transactions at the time of capital appropriation is approved every two years. and so, that is a recommendation here. and that, it would delegate to the commission the authority to delegate individuals use

of bonds and we will report back to the board within 30 days of issuance with a bond issuance report. and so, that is the first recommendation or recommended change. the second is a series of changes related to the disclosure. i think you will remember last spring we went through quite a bit of disclosure training with the commission as well as that staff level. we really wanted to put that in our policy that we wanted to regularly train staff and update the commission on disclosure practices. we also added that we would make public funding on the united market municipal funds disclosing organization and new clean renewable energy bonds these are all essentially considered private

placements. they are not public debt market issuances. we want to make sure we do appropriate disclosure for those transactions as well. and also, that we provide from a regular basis the green bond spending and that we issue a number of green bonds. in addition, we have a recommendation that enhances the charter requirements for issuances of refunding bonds. so the charter requirements are that we require issuance for these bonds and this is where we would issue the bonds and have money in escrow for the call data on these bonds. eventually, we enhance our criteria to restrict the issuance of advanced refunding bonds to anything--

there is a metric that reflects the escrow efficiency. if there's too much inefficiency in the escrow and a lot of negative arbitrage and we do not want to be issuing those as well. we do not want to issue them as an advanced refunding bond. we would rather wait to work closer to the call date and refund those. we think there is a good balance between the opportunity and the opportunity cost. so, those are really the series of recommendations on the debt management policies. i am happy to answer any questions. >>i think that is excellent and i will move approval. >>second. >>any public comment on this item? hearing non-, all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. thank you very much.next item

please. >>item 13 is approve one not or more credit agreements with mufg union bank and authorize the credit agreements and all related documents associated with the transaction. >>eric sandler assistant general manager and cfo of business services. dsrf is

the debt service reserve fund and basically this is to provide payment security to bondholders and it can be funded with cash or credit agreement and currently yield less in investment earnings. than interest paid or bond. essentially can be funded in two ways one with cash from proceeds with the bond issue or can be funded with a letter of credit from a highly rated bank that basically says that in the event that you don't pay your debt service we will pay it for you and then you will pass back so there are essentially options on how to fund a debt service reserve. in the past the relationship between tax-exempt people and tax exempt rateand you could

fund that debt service reserve and invested in longer service taxable investments and it take you longer than it cost to bar that moneyand you could earn arbitrage so often times becauseyou canearn positive arbitrage and the market has changed a bit and for issuers of very high credit quality you can get away with no longer actually having a debt service reserve fund because it's costly. in 2015 we made that change to our that insurers so that we no longer have that reserve.

are and standing water bonds have cash funded debt service reserve funds and what we're doing is using that money to invest in our capital plan. this was suggested in our budget that we proposed you and this was adopted by the board were coming to you now to execute that transaction. essentially, the cost of the agreement is much less than the negative arbitrage and we can use that money to fund negative arbitrage and we can use these monies to fund capital projects. the best terms came from

mufg union bank and the total commitment was $87.4 million and the term was for six years and it may be extended for three years and the annual fee was .45% or $479,000and any drawl repaid within three years to m usg and the considerations are if the bonds outstanding at the end of the term the agreement will need to be when you replace or met either with a security policy or cash.

>>that is a great rate. >>and so that is a great rate and i would be happy to answer any questions. >>it looks good to me. are there any questions? is there a motion? >>i motion. >>i will second >>public comment? all those in favor say, aye. opposed, nay >> co >> [chorus of aye >> [chorus of ayes] >>the motion carries. mme. sec., he please read the next item. >>item 14 is to authorize the issuance of up to $1.1 billion of 2016 series abe water revenue bonds.

>>eric sandler; assistant gen. manager of business services. math have the slide please. there were going to discuss the authorization issuance of water revenue bonds and refunding and new money taxable under the bond. the first would be the authorization and the refunding of $1.1 billion debt portfolio. so it is almost a little more than a quarter of our outstanding long-term fixed rate debts. you can see here the various a series of bonds that it will be refunding. we conducted an rfp and we made a selection and j.p. morgan is our lead underwriter and the present value settings

of $121 million or 14% of the outstanding amount. the size of the transaction the savings would be at current market conditions and we hope to know something in late october. we are looking to get rate certification for these refunded recent bonds. the sponsors authorized by the charter which authorizes the issuance of refunding bonds which is charter section 9.109 and it would authorize the bonds that you see here. the second would be series 2016 c and this is new money

taxable bonds. essentially, just a little bit of background, essentially private user for taxable debt and we have to that would be considered taxable use and we've refunded taxable commercial through the taxable commercial paper program and it will replace that with taxable debt and will provide some additional taxable funding required for wsip. these bonds were authorized by the board of

supervisors ordinances and conjunction with the capital plans. here's the sources and uses of funds for the refunding issue. it is almost $ 1.1 billion and these would include escrow deposits for refunding bonds cost of issuance and of course the underwriters discount for the services. as you can see we have bond proceeds per amount of $295 million with a total commercial paper pay off of $239 million you can see $26

million from the wsip project fund and 29 million with the capitalized interest fund cost of issuance being $400,000. this is a form of the transaction documents you can see the preliminary official statement would be the disclosure describing bond terms and condition of the water enterprise. item 2 would be the supplemental endeavors. the 21st 22nd and 23rd and that is an agreement between the sfpuc

and investors. item 3 would be the notice of intention to sell and that notifies the financial community of pending bond issuance and item 4 is the official notice of sale. so some questions and answers. here are some questions and answers that i have set forth and discussed . the first would be the purpose of the issuance and that is to refund previously issued bonds to the ratepayer savings and new money would be to finance previously

authorized wsip projects. the structure of the bonds would be refunding a new money for senior lean and long-term fixed rate that. the method of sale would be refunding bonds sold on negotiated basis for and this word avoid rate increases in the future. and new money would be so competitively respective the bill. and the bottle place will be repaid from the net revenues of the water enterprise in accordance with the water indenture.

those were the key disclosure issues. if you have any additional questions i would be happy to answer those were the city attorney may be able to answer any legal questions you may have. can you turn the slide please. finally, here is the transaction schedule. as you can see, we are meeting with the commission today we will be meeting with the investors the week of october 3 and we expect to close the refunding bond on october 17. new money actually needs to go to the board so we'll be taking that to the board of supervisors on october 25. pricing on november 14 and closing on november 20.

these are the recommended actions to authorize the issuance of the refunding bonds and authorize the issuance of the taxable water revenue bonds and approve the form of related bond documents and to authorize the general manager to sell the bonds in one or more series on a negotiate basis and to delegate a general manager to authorize to ward the bonds.i'll be happy answer any questions. >>any questions? >>i make a motion. >>i second.

>>any other comments? seeing none. all those in favor say, aye. opposed, nay. >> [chorus of ayes] >>this motion carries. any public comment on this item. >>thank you. i appreciate your support.if there are no other comments, all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. and secretary, please read the next item. >>item 15 is approval of

item 15 is approval of amendment number 12 agreement numbers cs 294 d. >>i move approval. >>i second. >>public comment. >>seeing none all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. mme. sec., please read the next item. >>item 16 is approval of amendment number 12 agreement numbers cs 329. >>i motion >>i second >>any comments? >>great thank you. any further comments? all those in favor say, aye. opposed, nay >>speak caries >>the motion carries. >>next item please. >>item 17 isauthorize the

general manager to negotiate and enter into a contract for an amount not to exceed $10,585,800, with the sole qualified, responsible, and responsive bidder, ranger pipelines, inc., as permitted under san francisco administrative code section 6.23(c)(2); and, upon successful negotiations, approve the plans and specifications and award contract no. ww-638, griffith yard improvements, for an amount not to exceed $10,585,800 >>i move approval. >>i second. >>public comment? >>all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. next item please. >>item 18authorize the

general manager to accept and expend: (1) a grant awarded by the water research foundation for an amount of $100,000; (2) a grant awarded by the water environment & reuse foundation for an amount of $100,000; and (3) a grant from the u.s. bureau of reclamation for an amount of $200,000; and to negotiate and execute a sole source contract with carollo engineers for up to $600,000 to work with the sfpuc to carry out thepilot purified water project. >>is there a motion? >>so moved. >>i will second. >>public comment? >>seeing none. all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. next item please. >>item 19 isauthorize the general manager to request approval from the board of supervisors to accept and expend hazard mitigation grant funds from the federal emergency management agency for an amount not-to-exceed $404,208. >>is there a motion >>so moved >>second >>any public comment? all those in favor say, aye. opposed, nay >>speakers >>the motion passes. next item. >>item 20 is toauthorize the general manager to execute, on behalf of the city and county of san francisco, an interconnection cost responsibility agreement with the san francisco unified school district; and

a third party non-exporting customer generation agreement with pacific gas and electric company, pending approval by the san francisco board of supervisors, >>i will move approval. >>i will second . >>public,? all those in favor say, aye. opposed, nay >>speak >> [chorus of ayes] >>the motion carries. next item. >>item 21 isauthorize the general manager to negotiate and execute a reimbursement agreement with mission bay development group. >>so moved >>second >>public comment? all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries next item please. >>item 22approve the terms and conditions and authorize the general manager to seek approval by the board of supervisors and mayor to execute a 25-year amended and restated lease, with an option to extend the term for a period of 25 years, to the pomeroy recreation and rehabilitation center.

>>so moved >>second >>public comment? seeing none. all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries next item >>item 23 isauthorize the general manager to execute a first amendment to a memorandum of understanding dated february 13, 2007, with the san francisco municipal transportation authority. >>so moved >>second >>public comment? all those in favor say, aye. opposed, nay. >> >> [chorus of ayes] >>the motion carries. next item please.mme. sec., >>24. approve the terms and conditions and authorize the

general manager to execute a purchase and sale agreement and related documents to purchase the property located at 657-1663 rollins road, burlingame, california, from clemco for $9.1 million, plus closing costs; >>so moved >>second >>public comment? all those in favor say, aye. opposed, nay >> >> [chorus of ayes] >>the motion carries. mme. sec., next item please. >>approve the terms and conditions and authorize the general manager to execute an exchange agreement, and any related documents, by and between the united states forest service and the city and county of san francisco, through the san francisco public utilities commission, for the acquisition of approximately 25.2 acres of forest service land near camp mather in tuolumne county, for $115,000. >>so moved >>second >>public comment? all those in favor say, aye. opposed, nay > [chorus of ayes] >>the motion carries. >> our next item is public comment and we will move on to close session item. >>would you like to move those prior to public comment? >>item 28 isconference with

legal counsel pursuant to california government code section 54956.9 (d) (1) and san francisco administrative code section 67.10 (d) (1) >>we are back in open session. items 28 and 29 were settled in open session can i get a motion as to whether or not to disclose >>i make a motion not to disclose >>i second >>all those in favor say, aye. opposed, nay >>the motion carries we made a motion not to disclose. >>i would also like to make

a motion to be close the week of thanksgiving. i am not sure how commissioner courtney would lean on this one. >>would you like to talk about the december meeting as well at that time? >>let's look here. the 25th is a sunday so, it is the 20th? >>it would be december 20. >>that is not the second. >>isn't it the second and the fourth? >>i'm sorry december 27. >>so, the proposal is to cancel the november 22 and that december 27 meetings we ? >>if there is no objections can we just proceed with that and notice it accordingly?

>>yes and also some cancellation notices at the time >>any other business? seeing none meeting is adjourned. >>[gavel] francisco

planning commission regular hearing for thursday, september 8, 2016, welcome back commissioners, i trust you enjoyed your recessed i'd like to remind the members of the audience that the commission does not tolerate disruptions of any kind. please silence any devices that may sound off during the proceedings. and when speaking before the commission, if you care to, do state your name for the record. i'd like to call roll at this time. commissioner president fong commissioner vice president richards commissioner hillis commissioner johnson and commissioner moore >> commissioners first is consideration for items proposed for continuance item one1 cashmere street conditional use authorization and is proposed until september and case no. two at the market street an