comptroller's office. if you have specific questions be was thank you good members of the board, questions were commons? commons? very interesting all the way through. director borden he was either much of the ship airport i think a lot of great findings came out of it and look forward to doing a better job lots of people don't feel like they have the ability to influence things happen. i think the groundhog can effectively have our reach and input processes and feedback loops is critical. i do have a question but a title vi that all the different languages but i do not see braille. we have rail? braille? >> title vi visit without limits public national origin raise colored national working and was based on the supreme court case that if you denied access based on ability to read and understand english well,

that could be determined to be national origin discrimination in braille would fall under i think ada would not necessarily fall under title vi. >> right. i think we would have things in braille as well. i've asked that people reach out to me who are blind about the transportation network in general [inaudible] >> i can certainly take that back >> thanks >> one comment i make about this they suggest a move our meetings around. in my stance has been remarkably unsuccessful both here and elsewhere it's a good idea if you like the idea but nobody comes. so i respectfully disagree with that recommendation. >> i would say were experienced in planning if you had a big project or something of coming then it worked out very effectively. wasn't necessarily most productive meeting we ever have in terms of people showing up i think that maybe for some of the bigger projects like maybe with

geary or prt might make to do a meeting in the communities we hear the voices of the community. >> it definitely requires something like that that's really immediate to the folks because we've done regular meetings elsewhere and nobody comes. >> thank you. i just want to say we talked about this policy and governance as well. i appreciate the thoroughness of the outreach and the desire and the success we've had in bringing people in it they speak other languages, making sure people have access to it. we touch weekly on the cost of doing that but again we spoke about this that the benefit to society of making sure that everybody can write our transit system and everybody can have access to the information is just impossible to calculate that i think the idea that we are expanding that access in making sure that everyone who needs it can get the information they need to write

our system, i love it when the operators help out in the native lingo to help somebody out. i think that is just it's a lovely part of being in san francisco to have somebody approach the operator and ask in their home language and be answered in their home language it's just great work on this report and look for to us continuing to do everything we can to reach out and make a transit system much more inclusive. is this the form of the report that will be going to the federal government words it sort of a pacific specific presentation to them you need to do? are they going to get primus the information we got here? he was go get what's in the board packet the title vi packet is a word document will be a pdf there's numerous appendices and attachment we uploaded through their grant system that we upload documents and gets trapped by them. it'll be uploaded as a pdf. >> it looks as i've no other question it stew is director

ramos spews work just a complement this great work. your team is just >> you've certainly raise the bar from my observations and i had the privilege of serving on title vi committees and seeing the way that you are doing work is just raises the bar. i applaud you for your efforts and all the work that went into even just this staff report and the presentation, the way that you folks organize the date of the critical points jump out you it's just really really great work and i hope you're celebrating in some way shape or form. width don't worry. it took six months of my life >>[laughing] >> we be remiss director garcia was here absolutely

amazed. reports comes in everything is together it is been hours of sleeplessness which it should be. this is very critical because a lot of stuff we also work with the office of civic engagement and immigrants of their. there were critical in giving us feedback and reaching out with the directors were amazing incoming giving us feedback we immediately incorporated the included it as an organization response to your earlier comment bla p and the fda has 60 days to look at it see if they work it back if there's any additional information they need once it's done to live on a website and at the back i think it's probably appendix a and each plan are the detailed list work in organizations we listed out the geographic map week were going. >> wonderful. thank you >> director hsu >> i really appreciate the thoroughness of the report immunity job going into individual lines. that's really fantastic i did have one question is about how the 2013 survey was done. specifically, they come on board and are handed paper. with one question

being, how do you question of low income was framed? >> it's relevant because we are actually in the process right now of updating that survey. so both in 2013, 2013 and right now we are doing it's an onboard survey. it's upwards of 25 bus house and people are survey. it's a trilingual survey. the current version is in tablet form. it's more in the form of an interview. we are partnering with mtc on it and they found when they did it in other places like bart they got very high, as high as 60-70% response rate. that's why we have shifted to that model. but the survey itself is-

>> how does somebody get asked the question of are you low income? >> what we do is we asked people what is their household size and what we asked them what is her household income and then we cross tabulate that to determine. so were not asking somebody are you low income or not. were using the information they provide in analyzing it. >> ms. boomer number so the public >> is one person turned in a speaker card. herbert weiner. >> herbert weiner. i will be brief. i notice that it's one quarter of a mile to the bus stop in all neighborhoods and this means all neighborhoods have common misery and this is

mta democracy inaction. now you really should ask in the surveys help people like walking a quarter of a mile to the bus stop. i don't think that's been directly asked. i don't think you'll get a good result. now as a result of the community outreach i saw that in action at the mission cultural center a few months ago. it was quite explosive. fortunately, no one struck a match. now this is an example of community outreach gone wrong. significant people connected with mta and mta even left the meeting. you have a lot of work to do with community outreach. hopefully, there will be more less groupthink on this board. people on this board voted

unanimously on this decision. i heard very little dissent. maybe there's some dissent in the back room before the meeting, but i see very little democracy here among the board and we really need some checks and balances. >> thanks. and every us wish to address the board on the subject? >> very quickly all like the idea feedback. i like the idea feedback in this room. i like. feedback to public comments. thank you. >> thanks. motion on the? >> motion to approve >> before we vote him and go back to a director borden's point about britain made it may not be for this document be interesting to know what the agencies providing encrypted surely this opposition party have a large population with the growing population of

people with sight difficulties. members consent we have to director to come back with something on that? okays with the motion and second. behaviors because opposed? thank you much. ms. boomer >> that includes all the business before you today >> we are adjourned. thank you very much everybody. >>[gavel] >>[adjournment] >> >> >>

>> we're on okay. >> good afternoon i'd like to call the public utilities commission to order mr. secretary. >> coordinating

commissioner kwon commissioner caen is expected shortly and commissioner courtney that excused and we have quorum okay. thank you commissioners you have the minutes of the october 25th meeting additions, deletions, or changes seeing none, can i have a motion. >> i'll move there is a motion that has been seconded any public comment? >> all in favor, say i. >> i. >> opposed? the minutes are adopted. >> next item. >> is public comment this is a chance for any member of the public to comment to the commission under our jurisdiction that is not on the agenda foyer today any public comment? no okay seeing none, communications commissioners.

any comments or questions on the agenda any public comment on communication? >> cool bosca i'm here to speak to item 5 e on our communication report at the request of your cac chair that is the first time for me to do that i'm here to calling your attention what is included a resolution passed its by the advisory committee on october 18th this year this was a resolution urging the puc for environmental review for a new community center in the southeast community in particular, the resolution has quite a few of the whereas's

hopeful a lot of communication at the cac but want to note the two roasted the advisory committee which was created to give voice to the community and the residents urges the sfpuc to initiative the environmental review. a community center that benefits the existing residents and have age intern green house program and be it therefore resolved the cac yourselves the legacy of the bayview hunters point in the southeast community facility her the litigation agreement is fulfilled and oversight for the community and support >> community center that provides workforce and educational opportunity for the residents of the southeast san francisco so the cac was proud

to act on that and wanted to make sure you're fully aware of if. >> thank you very much. >> any other public comment on communication items okay. seeing none is there any other commission business? >> and there's none we'll move forward competing mr. kelly the drought update. >> can i have a slides please. good afternoon, commissioners ellen deputy manager steve richie is a out of the office this week i'll be giving you the water supply update with the

reservoir storage at 77.6 percent this time last year we were at 45 plus a significant increase in storage you'll see why actually as we move through the presentation the other thing to note the water bank 82.7 percent this year last year 32 percent is a significant improvement for us on our water system storming now looking at the other called reservoirs i will note that we're seeing most of the reservoirs in the stat and the one hundred of the historical average for this time of year and very close to one hundred if they're not there pedro is now - shaft at 6 percent and seeing them added one and 5 percent of

historical storage the state is looking up from last year here's or here your locating precipitation to hetch hetchy the red line solid line the water year 2017 as you can see that is tracking our wettest year 1983 for to get more precise the precipitation index for this week we're at the 6.8 inches for the year and october was credibly wet in the 95 years i have history this october was the seek highest 1983 the first highest with the precipitation and that has resulted in a significant amount of water available for san francisco if you see only the next slide we have 79 acre feet that is available to san francisco we're well above for the entire

year last year and that is shown on the purple line oh, i'm sorry, i'm sorry i meant 2015 last year was the green line we've not have available this time of year when what i added the amount needed for the storage on july 1st of this year three hundred and 73 like i said we're 79 acre on the way there. >> on the bayview the significant perspiration october was a good month we're at 4.8 inches for the year and typically this time of year one inch and nature this is significant our local system is starting to get charged up as a result of the storms but the next storms we will see

significant progress as far as loma on the delivery side our customers have been responding to the wet weather and we are at two weeks ago one and 73 for the last reporting week not shown on the slide one and 60 million gallons responding to the wet weather and that's all unless you have questions. >> thank you commissioners, any questions. >> i have a question. >> last year, we had el nino year that kind of shows no correlation between that and the perspiration here. >> actually, we heard from the lifetime people saying we're not showing an el nino i know there is talk in the press it is the feeling that is we're not showing an indication either way

he's actually started to warn that is like 1997 a big year for us we signed off at the same time. >> thank you. >> thank you any any public comment. >> i love the chart the 79 where we are and heading 73. >> uh-huh. >> i mean that is does that mean little 79 will stay there we've had no rain until july. >> yes. yes. >> i understand. >> yeah. >> thank you okay. thank you any public comment on the drought report mr. kelly. >> the next item. >> is the quarterly audit performance review nancy.

>> cynthia goldstein president and commissioner i'm nancy the director of internal controls that is for the audit for the fiscal year 2017 our recorded is the highlight for the puc for the external parties and summarizes the audit and the information to date 6 month calendar for all projects thank you. >> as highlighted in the executive summary 35 projects in stages of progress of total 5 were completed in one and each are in progress as we continue we have a number of projects

definitely increased as more supplies audits are announced in the audit took place. >> so a typo the 5 audits were that of the management of - the self-certification for the north america monitoring program the second audit a series of audits by the financial services team for the fiscal year 2016-2017 for each of the watermelon and hetch hetchy enterprises the auditor completed the phase two of the health program pursue looking at to quarter one and two and beyond the following are

anticipated franchisees for the energy center for the completion in quarter two with a internal audit and the performance audit for go solar program for rebate incentives and the audit in practices processing are the comprehensive financial report for 2016-2017 and the whole revenue requirements account for the prior fiscal year. >> as part of ongoing reporting of open year recommendations the port continued the prior recommendations is 87.4 percent the enclose to continue to management to the open recommendation increase response time and enforcing the will accountability and trained

within the management we'll continue to keep the commission on the audit plan and with that, this concluded any update. >> commissioner any questions. >> thank you for your work and at the risk of sounding like a broken record the audit program is first of all, second to none as far as i know in city government anywhere and 72 hours one of the things we rely on a as a commission to make sure the details we canned get involved if are handled properly so it is very available what you're doing i appreciate 9 work and don't let our silence lead you astray on that. >> thank you. >> thank you. >> okay mr. kelly. >> so the next item. >> is water enterprise capital

improvement programs where we report dan. >> good afternoon commissioner dan wade first start off with the capital improvement report some highlights in the cover letter i'll not read but one thing since the last reporting quarter that was made to extend the daily water extend the project by 4 months a decision by the project team that had a new impact on the schedule and some of the local projects that are currently under evaluation and we're anticipating rebaselineing of those projects i want to highlight that we'll be coming back to you early next year with revised schedules and

the other thing i want to remind you the budgets are updated to encompass the cpi that was originally approved by the board of supervisors other than nothing has changed in the report and i'll be happy to answer any questions you may have. >> on the wsip. >> thank you, commissioners. >> report to the baseline a baseline conversation. >> looking forward to the baseline conversation. >> yes. regarding the schedul schedules. >> now i'd like to turn to the water system improvement program if i can have the slides please. so the overall status of the wsip excuse me.

is 93 percent complete as you can see the numbers of regional and the local numbers the local program essentially is complete all the projects in service we do have an ongoing service with the lake merced pump station with electrical issues we'll be coming back later in december to ask for an extension of that project to resolve the issue the proximately costs has not changed the overall program is on schedule and budget that is played baseline earlier this year. >> and just to highlight a few accomplishments we did complete the final construction on the water treatment plant had a claim from the contractor that was successfully r0e68d through mediation we have the construction contract we were

able also to finish final projects on the bay tunnel and the pipeline schematic upgrade and the other highlights similar to the past received additional reward in the lobby of this building a display of the wsip awards more than 50 that is something we wanted to share with all the accomplishments of the project team. >> moving on to the projects still in preconstruction there is really only one the castro project excited about the fact we'll publish the last ceqa document later this month on november 30th for the draft review and expect comments anticipated certification there that will go to the construction

there pending the ceqa certifications and finishes about the same time as the replacement at the end of the program the other thing that is in preconstruction the new wsip projects we've approved earlier this year a corrections of items needed to meet the service goals promised under wsip so we'll initiated the designs and you'll see those start to go to construction in the next year. >> for the calaveras dam replacement, of course, the last project or the largest projects in the program we continue to make progress this photo with the dam on the left that is the existing dam and the red line is the future crest of the new dam and what i'd like to point out we started the dam itself

we started earlier - actually, the beginning of october and placed the first list of clay in the foundation as you can see in the photo a couple of stock piles in the elevated one a great deal of that is a drainage material that placed adjacent to the ground material that the clay core of the dam i'd like to sodium in on that i want to highlight how tedious this work when you start putting in the clay core for the dam how clean is clean as you can see this the the stern at the walk with the dam standing to the side because everybody wants to be sure the foundation is clean to make a good bond between the clay and the foundation that is extremely critically portion of the project in terms of the dam

safety now i'd like say that it is not going to be this tedious throughout the duration it will really when they first get started everybody is on the same page regarding how clean is clean before we move forward once everybody is on the same page that the pace starts to pickup, of course, a lot of handwork to make sure the clay is infected in the crevices and start using the equipment to bring this up as construction moves forward. >> that was actually, the first day with that photo right there we've recently completed the tower and as you can see the need to the original spring valley and the weather vein placed on top of the tower to be a portion of project that is capped off

okay. so moving on to the alamany creek he wanted to show this picture from 1931 shortly after the construction when this was completed a dam that diverts water to the calaveras reservoir on the creek essentially expands the water shed to the reservoir and the tunneled that takes the water from the facility to calaveras is on the right-hand side behind the concrete structure on the right-hand side of the photo i want to show that photo you'll go out there prior to construction it looks exactly the same since 1931 i in fact, i was out there it looks exactly that like that with water pouring over the top of the dam and the reservoir so this is is a recent photo of the dam there

in the creek bed the water flows from the bottom left corner up to alameda creek and the tunnel to the abutment and sierra club what we are doing building a fish ladder around the right hand of that dam to include assess of the fuel head into the water shed this project is moving along and this is a photo of looking down stream of the construction area that the dam is there in the middle of the photo and upstream what i see the new conduits for the water that is innovation to be collected on the right side of creek through screens and conveyed to the tunnel the project is most often along this concrete court prior

to the one shut down will continue to the end of the program and one of the water storage recovery project the 13 well sites there 9 first contract are essentially completed as we speak and kraeshthsdz looking for that next year there are issues to improve that due to regulations that - so changes made we anticipate start up the locations next year the primary challenge on this project remains citing two sites if the san bruno as well as bosca it is really getting their heads together on this. >> and the last project i mentioned about the regional

habitat restoration the last project is the non-native vegetation remember we've made good process 24 hour and right now there are buttoning it up for the winter and that will continue through 2015-2016 as well i'll be happy to answer any questions you may have. >> thank you, thank you commissioners, any questions for this gentleman. >> thank you. >> all right. any public comment. >> seeing none, mr. kelly. >> and that concludes my report. >> all right. >> we will move on to the consent agenda mr. secretary read the items. >> item 8 the

may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. item a approve for the agreement c s two arthur's and b accept the contract approval for the modification decreasing the contract with the time extension of 19 consecutive day item c is removed from the calendar and item d acknowledge that staff is in the design process for the southeast community facility on evans and the development of an does remember green house program. >> commissioners any items

you'd like like pulled off consent calendar. >> i'd like to move the consent calendar. >> okay. any request from the public to remove items can i have a motion? >> a second any comment >> all in favor, say i. >> i. >> opposed? the consent calendar a b and d items are carried thank you. >> and item 9 approve for the specifications and award contract in the anonymous of $31 million plus to the lowest qualified responsive bird the construction company. >> ms. ho. >> kathy ho for the infrastructure this project is to determine 0 existing facilities at the yard and to construct a new admin building

and to have prefab buildings and 3 canopy structures 6 bids all over the engineers estimate and and consulted with public works their noticing the issues with they're building projects they're coming in over engineers estimates the funding from for this additional base bid will be coming from the water shed center for the time being and the water shed center the payment is looking at at the engineering to trim costs on the water shed center. >> okay. >> any particular cause for the increase. >> i think there is so a lot of building construction throughout the city so public

works they're saying the bids are over because of the construction that is going on throughout the city. >> okay. thank you. >> commissioners. >> yeah. i don't understand so the water shed - the education center what's it called. >> the water shed center. >> so the money that's where the money is going to come from. >> the additional 5 to 6 millions. >> is that going to jeopardizes this project. >> we'll won't have a water shed center but value the engineering and come up with a more efficient way of building or constricting constricting that. >> i think also there are other projects that may come in and have contingency or because that is a later. >> - >> 09 projects so the a gm is

looking at they're ten year capital to juggle to try to accommodate this construction as well as the water shed work. >> i'd like to at some point i'd like to get an understanding the where the contingency money and the prelims for the water shed that a great project i'll hate to see it compromised. >> we'll come back with the water shed center and have the monies how how it is looking like. >> thank you. >> i'd like to point out that this is a trend that we're seeing given the number of cranes and how much work is out there a lot of projects within the city not only san francisco public works but also the port

mta, bids over the engineering estimate and also we're seeing fewer bidders they're to busy don't want to bid we were working on trying to resolve a settlement and you know negotiations not with the city but a private person to do work he was trying to get bidders and one didn't want to bid so this is really challenging and you know it is for me being with the city for 3 two years i've seen this cycle we need to try to figure out how we can you know position ourselves to at least be in a position you know where people will like to bid with us but the fact people are very, very busy we need to try to figure out you know we can maybe

relook at our estimates to take into consideration. >> well, one thing there is not a lot of bidders so this is i'll expect if things are that tight you might have 56 bidders but there were not a few so keep an eye on i know at other times because of steel projects went up it is pretty clear reason why so i'll just you know - we need to revisit the center but keep an eye on the trends to learn from that. >> through the chair can you look at that. >> great. >> thank you. >> can i have a motion? >> so moved.

>> there is a motion that has been seconded any any public comment. all in favor, say i. >> i. >> opposed? item 9 carries. >> item 10 please. item 10 approve the specifications in the work contract in view of them of $29 million accomplice to the lottery quality and responsive bidder j m b construction. >> this item actually came in within the engineers estimate with the pipeline project part of the original wsip water supply projects that and this project will supply to m g d water when the project is completed we are putting out the - we are getting it done through the 3 construction cracks that is the third to do the pipeline work that connects the recycled water

plant to little reservoir and pump station in golden gate bridge so the second contract that will be coming out for the treatment plant itself at oceanside facility and the third piece will be the pillage station reservoir in golden gate park we had to startle the contracts they'll all finish so we can get this done for the whole facility. >> is there any uncertainty about reservoir and pump station locations. >> no, because i think their modifying what is in golden gate park they've put in a reservoir their not fully utilizing i think most of agreement are being worked out and you may have approved them earlier. >> okay

there's been some shifting of position within rec and park we're at the place to spend serious money. >> steve richie has met with them and this has not been brought up as an issue. >> commissioners. >> like to move the item. >> been seconded comment? >> all in favor, say i. >> i. >> opposed? that motion carries. >> item 11 item 11 a working group on the cleanpowersf plant. >> ms. hale. >> good afternoon barbara hale assistant general manager for power first, i want to give a short update on cleanpowersf efforts before we go into the details of the workshop and talk

about enrollment and activities on the enrollment we continue to successfully serve our customers our may enrollment i have no changes since the last meeting we're serving over 74 active locations and the opt out is 2 percent so we've opposing to stay there on november one we began serving additional customers in districts 5 and 8 customer accounts shifted to cleanpowersf with the november meter reads so by the end of november we'll be able to report what our customer base we expect is that 3 thousand we are currently experiencing on opt out percentage of one .5 percent for the fall enrollment group we received i'm happy to report nine hundred and 27 up

grades so we've reached the milestone supergreen is more than one thousand accounts thank you san franciscans customers sign up our the future exploratoriums we're the fact of the matter go 74 percent are supergreen so that enthusiasm looks like that will continue which is great on the rates - the california public utilities commission will be issuing a decision on pending pg&e rate requests and transition rates we know will change the enacts to the hetch

hetchy customers will be small and the revenue will be neutral with respect to cleanpowersf we are expecting the cleanpowersf customers to experience a small bill increase relative to pg&e bundled service and newly until the next pg&e rate we expect to be an increase in the spring or summer so there will be a period of time where we expect our raised for cleanpowersf to be lower but the overall built enacts because of the tci a that pg&e charges our customers will be a small increase the proposed decision from the california public utilities commission is expected later this month on the issue we'll have an opportunity to comment on that and definitely take that

the subject property and the puc will issue their decision rates will be on january one i'll be happy to answer any questions you may have. >> on those topics. >> i have a question sorry. >> uh-huh. >> will the pc i a question be revisit for the rates or. >> the pcia is a piece of california public utilities commission december decision yes and we are on the cpuc front and on the sort of cost non-bypassable charges we're active in a working group that the california public utilities commission established on the formal the pcia calculation and together with the other community choice agree grandfathe

grandfathers - the methodologies will which was and next for the legislation season collaborating on what sort of changes to look for legislatively to address various cac and investor utility issues including the sharing of investor utility costs with pcia customers so the plaintiff cia methodologies probably will not be finished or revised before the meeting on the rates; right? >> that's correct. >> yes. >> okay. >> i'm sorry one more question that 70 plus if so how does that complete with cac. >> that's one of the tops will be addressed if you indulge me

the presentation we're switching into is really to see you know the effort is all about seeing how to accelerate the program enrollment throughout san francisco you know back in december of 2017 we presented you with a business plan that business plan had some projections and now looking at how to accelerate these revised you we'll come back in the spring with that plan commissioner vietor you asked more information during the development of the plan and not land the plan on you in the spring this workshop will be responsive to that request with that introduction i'm going to turn it over to responsibility over to mike our cleanpowersf director. >> thank you.

>> good afternoon, commissioners. >> good afternoon. >> i might not be wearing a chicago cubs tie (laughter) before i start, i felt like i'll be remiss not to congratulate you in the world series the giants fans acknowledge that but i was roll call our work basically a year ago and you announced at one point weigh launch the program and the cubs will win the world series they happened in the same year anyway

congratulations offering great the presentation is focused on reviewing the work underway on the plan. >> i'm going to start with the implementation approach and a consultant of the plan and finally i'll share some of the research we've been doing with the cac programs some initial lessons learned and the next step in the process. >> so this should be a familiar slide from the business plan activities and updates over the course of the past year the goals the commission adopted for cleanpowersf and we endeavored to consensus with the balance to

those goals for affordable and reliable services for the portfolio with the lower green house gas emissions and invest our revenues in renewable services and jobs, all while providing for long term rates and financial stability. >> and what have we done towards chief of police the goals first, the launch of the program with rates a quarter of a percentage after accounting for the fees that pg&e charges the customers second you adopted energy portfolio for the green product of 39 percent audible renewable with lower green house gas emissions overall and third you

adapted a tariff an electrical vehicle rates and recently approved the steps for the cleanpowersf programs and we'll feet we are staff our staff works on the tariff to be made available next year. >> as you may know cleanpowersf launched in may 2016 it became the second enterprise program of a single or county and lancaster is the on that formed in southern california all other cacs are transbay joint powers authority and the startup for an $8 million loan for working capital and also 17 line of credit to secure the transactions and we established

cleanpowersf as a financially straight exit to provide the transparent to limit the financial risk on the power and launched that has a 50 megawatt opt out raised we're projecting the program will be serving 50 megawatts within a year looking like we may go 20 percent. >> let's see - >> my colors get messed up but to help to guide staff in implementing cleanpowersf the commission adopted 5 best practices that cover the product content and the rate setting and phasing and the supply mettle and the reserve - all the

policies are summarized but the narratives are included in the december 8, 2015 packet the rates have to compete or beat pg&e and established rates are sufficient to recover the program costs, power supply sources are sufficient for the demand that the program has sufficient financial resources to meet the financial obligations, and that the program has necessary staffing and support systems in place

this is another slide we've cycled from previous presentations this is the note that cleanpowersf is the major initiative offering service citywide is an 8 fold increase putting it on power with the revenue perspective twice the size of water enterprise from a customer account perspective the statistics are in the bottom of the slide the account issue is a function of more multi family dwelling meters for electricity. >> the goal the growth plan is to accelerate the pace of growth

in a financially responsible manner that is the goal that established ourselves this effort to do so the growth plan must answer fundamental questions resolve restrident their suhr the program has the in the financial resources to increase it's power purchasing activities and organization alley handing growth and the metabolics to know when to hit the gas in terms of growth and hit the breaks for example the rate issues we were talking about before. >> will have holistic recommends we'll present to you this is a road map for program growth that

identifies the environmental and economic benefits of growth and the additional power supplies to meet the city's goals a proposed schedule and approach to financing the additional power supplies and establishing the enrollment plan. >> and these boxes identifying the components the the subject property area of the components we're working on. >> before you go on. >> yeah. >> i have a couple of questions about you going on one the 17 credit when does that get paid back. >> the letter of credit is sort of the backstop it is available - the way it was set up it will only be used in the

case of a termination when a default the city and cleanpowersf is in default. >> we've not entered into a credit arrangement. >> the letter of credit is j.p. morgan that instrument is available to the supplier in that instance. >> we're not going there. >> not at that point. >> the other piece as part of growth plan i want to flag it it came up before the actual product and increasing the greenness of that product question about natural gas and projections as the market continues to shift in renewables are more available and cheaper what that transition might look like. >> your anticipating a few slides from the slides don't

address our questions ethic to claesht but as any questions for accelerating the pace i want that to be a component to alert accelerate the pace of the product while maintaining the product liability as well. >> i think that once we go through the rest of the other programs weighing we'll see they're able to accelerate. >> oh, okay. >> at the did it for a cost or rational for a reason. >> yeah. this is paramount to the growth plan we identified the goal as established itself as a vehicle for chief financial officer an environmental goals among others and the city has

articulated a goal to contribution the electrical supply to one hundred green house gas emissions by 2030 and cleanpowersf is the means by which the city can really take action on that goal. >> more drarlg so that's going to be central to the growth plan and the gather source plan we do this year and every year going forward as market conditions change and the demand changes as well. >> okay. great. >> okay. so the development experience of other cpa's a number of slides summarizing the information on other counties have approached this the rates for the default electricity and the content of the portfolios

the build out and compliery building and the approach to securing the financial supplies first how have the operating cacs been to program growth is this bicycle chart i'll walk you through how to read this chart fairly data rich this bubble chart is the growth and relative in megawatts the cac program is identified on the list and the year on the y axis they represent a phase of the program with the first bubble with program launch and the last added full-scale the size of bubble is the size of the program in megawatts and if it is a solid line around the

bubble the phase is completed and a doted line indicates the plan or provacative it is difficult to see the doted lines are difficult and the megawatt values are identified in each of bubble sanborn map is the first program identified on the chart it indicates that the program launched in 2016 and we will expect to serve 43 afternoon megawatts that calendar year the phase one will be complete by the end of 2016 that's why you see the size growing to 63 megawatts in 2017 that is the first full year of energy on the phase one the remaining 3 bubbles in the green cleanpowersf sector which are for 2019, 2020 and 2021 show the additional phases projected

in the december 2015 business plan to get to the citywide serve and you'll see two, that they are projected to be 13 megawatts at that time moving to the axis to the right the relative size of the cac programs and the first one is the lancaster that reaches maturity already and soma and mcare in the process of addressing community with the next year. >> right in the middle of the project is clean energy that launched in october of this year and peninsula what you'll see peninsula is planning a rapid planning growth in the process of carrying the resources to meet the projected demand of the additional phases as of this date peninsula

planning on offering services to all customers in the service areas in 2017. >> a few additional observations once the fall enforcement cleanpowersf will an as large as lancaster and on with soma around the same time in their project development it will be the largest cac given current conditions when full-scale and the chart also shows how fast the peninsula relatively to the cleanpowersf business schedule and accelerating that pays by 3 years i want to emphasize our growth plan work is examining how we can expedite future phases of enrollment so we can bring the benefits of clear energy to san

franciscans a faster timeline and in a financially responsible manner. >> moving on to rates - actually any questions on the last slide no. >> i have one - at build out you're looking at a fair amount of energy being served by the cac program how does that relate to the size of pg&es service area. >> that won't effect pg&es service area the cac programs won't principally because that service area is defined from the vantage point - >> from an energy perspective pg&e has published the

projections they see 40 percent of their generation supply service migrating i believe by 2025 a 40. >> 40. >> how does that play into the pca. >> an important part because the issue at hand is that pg&e has made commitments on behalf of all the customers in the concept behind it is that the remaining customers are indifferent to customers departing for another service so it is important that pg&e is making the projections they'll saying they should be pulling back from making for commitments especially long term commitments to serve the customers that

factors into the longevity of the cac over time to give cleanpowersf for example, we had customers depart pg&e shouldn't be ready to serve those customers and assessing the values take a snapshot want commitments of low migration for the customers departure and if it defines the cost ongoing obligations so again, it is important and it didn't necessarily effect the amount of pcia the amount is relate to the cost of resources that are in pg&e portfolio against the estimated value so what pg&e can get from the market in it sells those resources. >> are some of the resources

available to us to acquire from pg&e or to obtain energy from them. >> pg&e has made the resources available for sale and issue offers and request bids pacific heights i periodically - up for discussion when it comes to how to manage the what we call the remaining customers indifference and fairness to cac customers and make sense for cpa's to buy the resources from pg&e. >> if they fit with our profile for energy we want in terms of the you know it is green house

gas it seems to be a way of reducing their argument we can unburdensome of these. >> sure a strong argument for cac taking the contract costs there should be no cac costs. >> we'll urban design greener so some of those probably won't - >> yes. that's true the type of resources can be at issue. >> didn't you say the pcia wouldn't be affected and still be the same amount even if the customers migrated. >> the migration of customers didn't effect the sail of the pcia that's true i was trying to say if p cia started buying from

pg&e their portion of the contracts that pg&e has secured on behalf of the cac customers and they were paying the contract price that pg&e is responsible for there would be no need for pcia. >> right. >> now the reason the pcia exists pg&e prices are expensive that brings the plaintiff cias prices up closure to where pg&e is. >> if they're losing 40 percent of their customers they should be pretty much less so the by cia should be going on dune over time what is included are long term contracts and much of that is renewable energy.

>> they're still entering into but entering at a reduced rate right now because of the migration. >> that's right. >> well, because of market one clarification there the market for renewables has improved draeveng since pg&e has procured under the portfolios contract. >> but if pg&e didn't have demand bus customers are switching to cac they're not actually in the market at these prices. >> my first reaction when i saw the chart there was a lot of cacs radio auto out you expect there be be a congestion in the market that prices may go up bus of not only our prices but

others. >> we're aware of and considering and alcohol monitor it is hard to anticipate now without having done solicitation refresher not seen the trend part of it, it is the state and the cacs are trying to build in any capacity on the margin our new projects and new projects are competing against one another to get those but there could be a pace issue where cac has won a certain amount of the renewable energy if their portfolios and others can't keep up that's one possibility and no anecdotal or no evidence at this time this is happening now. >> if i recall some discussion about trying to have the various cacs coordinate if purchasing

the electives. >> so we'll have informal conversation how to coordinate and pool our buying power 80 together i think you're aware the cac has formed an association recently cal cac those radio did types of topics that come up with discussing the policy and regulatory policies that cac is assessing and coordinating i think there is a a real opportunity for cacs to look at how they might collaborative through the establishment of the sort of service oriented gp n to have greater quantities to drive down prices and offer certain

services potentially call service services for example. >> thank you any other questions on this slide. >> okay. thank you. >> precede. >> thanks. >> monkey off my back to rates so the affordability has on a hallmark of each cacs product at the time of launch each cac has offered lower rates at the time of launch, however, most cacs recognition they're not in control of the rates making the representation they'll meet pg&e for example, times running the rates i should be clear that the cost to mccustomers have exceeded pg&e when finding for

the pg a not - operating cacs tend to have competitiveness rather than beating pg&e with they're marketing materials. >> this slide compares the operating cac default with the snapshot of the rate difference for the e-1 the standard residential rate schedule for the investor and utilities for the default products that is cleanpowersf screen products the out liar is lancaster as i want to point out this lancaster is in pg&e territory they compete with a different illustrate and a lower

generation rate and as a result their pcia rate is lower that explains the big difference in relative costs the chart indicates that while s c e is 5 percent of their total generation rate pg&e pcia is 25 percent of the generation rate pursue the operating p - cac are offering rates that are all about 5 percent of one another one 5 percent of one another i want to point out that part of what we're doing with the platoon a studying the costs of our fellow xeefrts and to better understand the expansions to help to spread the costs that is

something we'll do with the performa analysis and i will point out that our initial finds with that scaling helps significantly in recovering the costs. >> okay. so this shied is not showing up well, i apologize for that but this is a slide that compares operating cacs electricity portfolio with pg&e's and starting from the left hand it shows pg&e's renewable content with a y to 100 percent and pg&e's is thirty percent renewable and 59 green house gas emissions free with 23 percent of that source from uniqueer and hydro if you move

right to the right of chart you'll see the operating cost the first one is cleanpowersf and those figures represent the best current estimate given the supply and demand to state of what our content for the green default product will look like and you'll see we're currently project by project our products to include 40 percent bundled bucket one renewable energy generated from california 36 percent green house hydro electrical sources that includes 15 percent aroused from hetch hetchy this year. >> and then 21 percent from other hydro traffic light supplies provided by the suppliers for for a total of 76 percent g h a content that 17 percent red

there between and the other 24 percent if cal pine generating united this supply actually provides green house gas emissions savings when compared to purchases from california i s l and that is 10 percent savings. >> how long is that california contract for . >> 3 years. >> so the take-home message is that cleanpowersf is performing well as far when meeting the goals to delivering more clean energy to our customers. >> again apologizes for the light coloring but this is a

forward-looking slide and i mentioned before the major part of growth plan will be identifying the rate and quantity in which we need to increase our content that goal one goal to chief a g h g free this is the pg&e projection of the green house within now and 2030 difficult on the overhead i apologize the y is the portfolio coming from different energy types of and pg&e is project by project that will increase from thirty percent today to 53 percent in 2030. >> and it's g h g 50 to 73 in

2030. >> in contrast the doted line shows cleanpowersf renewable default product if it were to maintain the 10 percent margin over pg&e that's essentially where we are we projected out to show where we are at which is 63 percent renewable and then the top line the green house commended it shows the green house gas emissions squeezed out the cleanpowersf portfolio over that timeframe. >> the growth plan is going to start to lay out the options for meeting this demand but i want to point out we're conduct a plan that provides for specifics to look at the optimal mix of

the resources is and that's will be over a long term a 20-year and we'll be updating that plan on an annual basis. >> can i - before we leave i'll be interested i mean, i said subtly in understanding maintaining affordable how quickly we can move forward and meet that 2030 goal going g h g free and moving go forward with renewable especially with the success of the program that that looks like because the climate is changing fast and it is incumbent to make sure we get to the other side of the bridge maybe go back and put that in

that would be great. >> okay. >> just a few more slides that is the comparison the build out and the complimentary programs that are offered or - to be clear this slide shows the gaps we are telegraph hill trying to fill the cac is not telegraph hill developing a program to the best of our knowledge and that cleanpowersf doesn't intend to offer the program i want to point out about energy efficiency the customers have access to city administrative code and program for the programs and we're planning to

make sure that the customers are aware the programs to assess being a cleanpowersf customer didn't effect their goiblthd we contribute to the funds of the programs improving offerings to specific to customer needs is a part of cleanpowersf programs future and again what this shows is areas we're telegraph hill staffing today the takeaway the largest cac program is the locate offerings here and cleanpowersf is implemented two, that meter energy and metering we're in the process of developing one the terrace a balanced payment plan and

ongoing payment the staff is telegraph hill working on those today and we have to make the programs available next year. >> can i ask a question about the electrical vehicle rate how do you see that structured is it too early. >> what we've done as far the electrical vehicle market is a developing market what we've done is adopted the rates that pg&e is offering we have a complimentary vehicle rate that pg&e is doing and they're two options and those options are intended to support different aspects of the market both - but with the goal of charging at appropriate times we have you 36 tend to have a different profile they discourage on usage an area that

will be cleanpowersf will be good grounds for policy making in the sensed as we better understand the electrical vehicle market and the customers needs cleanpowersf is tailor their rates for the time of use they con assume electrical vehicles are a sector of the market for demand response and it is something we can fill the box on the electrical vehicle side. >> so pg&e lowers your rates if you charge between 11:00 p.m. i think 5:00 a.m. but your rate overall is - we have electrical - electricity lower in that sense so i'm curious to see what that

looks like down the line and car sharing hoping that electrical cars will be shared this is the best city in the world to have electrical cars and a later discussion other plans for charging for people this is the structure and demands but love to see that someday if so it practical. >> an area we're in active discussions not only for cleanpowersf but for hvlt public utility services we have electrical charging stations and are working across the city to look at the best practices for extending the infrastructure and bringing our green house hetch hetchy power supply to that market so i think definitely intend to be more information on that. >> thank you. >> i was surprised out how the electrical vehicle rate if you

get the preferable rate mooifrns are required we're at home during the day and actually cheaper to keep it under the old plan i charge my car at night so for anyone that is similarly situations as us to the early morning hours and not compare during the peak it takes a different kind of structure. >> yeah. i think that you know it does speak to the evolving market a lot of research how customers use the electrical vehicles when they charge what they're driving patterns are, and you know, i think this is an exciting area for us for cleanpowersf to really actually move the green house needle further by not just addressing the electrical supply but also

to address the transportation sector but i think another layer there will be looking at the cleanpowersf demand characteristics and aggregate and trying to direct consumers to the times that benefit cleanpowersf overal program from a financial perspective. >> okay last but not least we are looking closely at the credit requirements be associated with the growth all cacs have some form of financial support from the local city and county member agencies with the transportation authority or private lender had distinguishes out the usage of a lockbox of

escrow account every other cac launched to date has utilized the lockbox to have the startup supplies cleanpowersf uses the letter of credit we discussed before and twerpt launching the cleanpowersf a year ago only a couple of suppliers with the box and the city of lancaster established the first multi party lockbox at the valet the peninsula adopted the multi party lockbox for example, and cleanpowersf opted out to use a line of credit to launch the program quickly and to be the best competitive we only have a couple of supplies and wanted to reach as many supervisors to get a competitive offer for the supply costs

the lockbox has been critical to help to chief and plan by paid programs as a result the evaluation of the lockbox option will be a key program to our work going forward hello. >> okay. >> so what are how findings and next steps we're very much in the startup mode we can claim that the program has been a success thus far we've launched the competitive rates and fewer green house gas, however, we'll be bringing more information on the performance of the program over several months as the year

concluded and other cpa's use lockboxes to secure payment to suppliers without injuring the cost to the supplies that is representative in the comparative chart with the extensively priced lockbox are a key ingredient for more radical scaling than cleanpowersf projected in the business plan which was really an organic growth using the program revenues and additional collateral through a letter of credit in addition to your consideration of lockbox arrangement re developed the recommendations and conduct further analysis to understand what the program financial reserve should be and adjust the

program and reserve policies to get - give the program more time to meet them for example, and other renewable energy like category 2 renewables how much do we expect those to meet the growth rate a communication outreach perspective and power purposing and financial purchasing perspective and critically what is the staffing report to insure that we make no compromises in customer services and capability as we expand and with that, don't forget to join cleanpowersf. >> thank you. i noticed one of the bus stops in any neighborhood has a very nice large poster that advertises

definitely it is very good. >> we initiated an campaign that includes the posters they're very nice. >> thank you, commissioner any questions. >> i have one comment. >> first of all, thank you so much for your hard work i know that commissioner vietor was a strong advocate and but you guys played pokeer and had to show your hand against an occupant that didn't have to this is very, very masterful i think that i wish chicago could have something like that this program the way you guys were aggressor aggressive and thank you for the

advocates this is a great year thank you very much for your work. >> thank you. >> thank you. >> public comment. mr. brooks. >> good afternoon, commissioners eric brooks sf green party/our city/sf clean energy advocates. and grassroots organization of our city a lot of hats as commissioner knows i did a deeper dive into the baseball met for i spent a lot of time growing in chicago i am from california i used to be skeptical i believe in incarceration i've been waiting one and 8 years not only in my lifetime for the cubs to win the world series the met for is great what we've achieved with

cleanpowersf and the cubs winning the world series that is fortuitous but the world series is taking building renewable efficiency and the focus it program needs to have going from this point forward we need to win our up and down the is not pg&e but the climatic change that will destroy that pg&e is a good picture for the bad guys but the bad guy is the climatic change like the baseball team to win the world series against the climatic crisis cleveland is

apologizes to cleveland you have to have an entire team of 9 positions to win the game you can't just say all right i'll try putting out a pinch and try a shortstop and make them a catcher and maybe we'll add some outside fielders and base men later in the game if you do that you'll lose the game and again, the game is building renewables not just - we need to build local and other renewables so standards touch on the edges we really need to do focusing on getting all the players gathered and working together we have efficiency renewable and solar and wind and regional wind and demand response all those things

being planned as a team effort in a network of resources all put together that all go out as a planned thing where a coach plans a game so we're getting the best economies and the berries integrations of the resources together and putting the whole team on the field is our fight again, the climatic change and beat the other team that's it cubs win. >> thank you mr. brooks. >> see i've always known he's a great guy. >> jason fried, executive officer. a whole heck of a lot it cover in 3 minutes i'll do my best first of all, some of the things commissioner vietor i agree we need to go as green as possible

one our program has a restriction how we get our electricity are all the restrictions needed they're keeping us in the way of having a more money important build out and more money for efficiency and as well as more money to go out address find on the resources of renewable energy that work perfectly fine climatic change is an international thing didn't matters where the green house gas - we need to have a contribution into our grid but taking a serious look are we regulating too much where the electricity comes from that hampers our ability to get more electricity within the last week i got an e-mail about a program

they're getting rebates for people and helping to pay for the installation of charging station within our property we should be looking at ways to do that not only are we encouraging people to use greener trouble to our ability to get people to electrical vehicles helps to grow our energy needs but cleaner electricity and getting them off of dirty fossil fuel i'll encourage us to look at there's a pilot program but want to take into account that as well getting into some of the discussions we are going on around the long term contracts from the p cia i know your monitoring that one thing the deblow plant closure that can be impacted and one thing to keep in mind you don't need to go out

and get contracts but the old contracts that i'll defend pg&e for a quick second it is rare they were great and needed at the time but they're much more expensive and figure out how we balance that load for them without having them increase and keep the costs fair to the cac customers at the same time then the final one thank you to the staff their trier of fact to work hard but need to look at how we're getting money from the charge i can guarantee you the department can do programs better but right now pg&e gets to take the credit for the department of the environment but great if we got did money instead - so i encourage to

look at that if we can get that money and not through pg&e continuation a better marketing program for us. >> i see some needing heads we'll be taking comments for next year for the world series and the of digesters completed. >> can i make a comment. >> so i appreciated the public comments and just wanted to first emphasis in the grow plan a couple of pieces will be great to include we want to keep an eye on the local build question having when some flight assessments might happen that's in the mix angles ago to talk about what might be the low hanging fruit with the local

build out and to build resiliency we have a power generation and from a job perspective there is a lot of opportunity i'll thinking in the grow plan that would be great i'm hoping when we talk about accelerating the market mix as soon as possible for 100 percent renewable g h g freeze the question of restrictions i'll imagine will be addressed as part of that because they were reasons to put the restrictions on and some might be valid but when we talk about acceleration whether that is regulatory or otherwise to leave it - >> i want to point out we talk about affordability with pcia

and other pcias are doing rec they have rates that are cheaper and at the same time, we wanted to do local build that are more expensive so we're still with that you know juggling act we're trying to do it responsibly and we look at the lockbox we can move towards but i think we agree that maybe very should look at some of the restrictions we have and the other thing you you know it maybe challenging to put the current contract and decrease the costs we may not be - below pg&e. >> right. >> so, i mean we have to revisit all of this i'm saying we're cautiously moving forward that's why i don't want to start building stuff and be more

expensive than pg&e. >> yeah. >> that's why i'm saying you know we look at everything. >> i think this is some a shifting collapse the i can't do what we purpose pg&e assets as we grow our program it is interesting piece of mix and just in the growth or business plan understanding it can change to factor all the things it i dynamic. >> any other questions from the commissioners general public comment thank you all no action required on that item staff will be back early next year for follow-up. >> hi emilio nice shirt (laughter)

okay. >> we're about to go into closed session. >> madam secretary call the items for closed session. >> item 14 unmitigated claim jason and selena and item 15 the existing claims along the martel and pro 21 will not be heard today. >> thank you any public comment on items to be heard in closed session? >> seeing none, can i have a motion? >> to assert the attorney/client privilege. >> to assert. >> move to >> all in favor, say i. >> i. >> opposed? and that motion carries and we'll now go into closed session. >> mr. president, a quick moment for the crews to come

join harlan and i thank you for honoring the world series champions they have - invite commissioner caen. >> can i vote. >> yes. please. (laughter). >> did you emilio? >> since you don't have a hat to we're ar.

>> (laughter). with my we're back in open session. during closed session approved settlement on items 14 and 15

can i have a motion? >> whether to disclose during closed session. >> move not to disclose second and. >> all in favor, say i. >> i. >> opposed? that that motion carries and is there any other new business? okay i should annoyance that the next meeting on november 22nd is cancelled because of thanksgiving we've been setting up appropriate a meeting for that and recognize that is - a birthday (laughter) >> happy birthday. >> any other business before this commission. >> well, how about happy new year ray for the cubs. >> okay we're now

>> good morning, everyone thank you all for joining us today today, we're realizing the distance manufacturers and a culmination of a year of work we partnered with 24 individuals our sdains team to provide guidance for the prodding project as we look for a way for san francisco to be a leader in

the growing sector advanced industry what is is that it is anything that involves technology or innovations to improve the process or products we're making the benefits of the manufacturing is makes manufacturing more efficient and cleaner and safer for our workers the playbooks look at ways for san francisco to remain at the forefront the recommendation cover 3 main strategies regional collections to build an eco system for the industry, opportunities to strengthen infrastructure to support this industry and workforce opportunity to assure we are the leaders in goods and with blew collar jobs the jobs in manufacturers create a pathway to the middle-income i'd like to

introduce mayor ed lee our number one supporter of our manufacturing industry here in san francisco. >> (clapping.) >> thank you laurel for that introduction it is great to be in bayview supervisor cowen for joining us this morning as well i know she's a great admire of local administrative codes quite frankly most of those jobs can be in her district you it to michael for inviting us and thank you to the gap team that is here as well their really a homegrown company here and really the best example of what we're trying to do with the advanced industry playbook first of all, we have to understand what manufacturing see everyone thinks i'm the mayor of city dealing with tech and innovation

and bio logical sciences that's not true in fact, besides tourism technology and bio sciences manufacturing has been a very steady job creator in san francisco a lot of people don't know that you look at outside and don't see the activities i love did noise this noise means people are making things that's why sfmade and the office of civic innovation call got together to put this playbook together so the public can besides the role of manufacturing in san francisco one, if we understand it we as the board and city and the mayor wouldn't make mistakes down the road to compliment and support this one and 20 job company that

has been here for almost 50 years and many other local manufacturing jobs that are created if we understand it we understand the blend that technology has we're supportive have to advance this manufacturing if we understand that we understand the international market to bring those priorities all over the world as part of their apparel design one of the best selling brand for san francisco this is what the playbook is all about i'm enthusiastic about the sector of our entry because you don't need a 4-year degree but you need training and that's one of the objectives of this playbook how the city supports the kind of training these employees are so had in order to be great at their jobs and use

of the he overlay how do we understand the market that makes sure we have a market to understands how wonderful and provision made those products are how does it blend with the apparel with beiges or beverages with manufacturers with beverages we make all kinds of things in san francisco i want to make sure that people support the playbook the deeper understanding of administrative reviews here and never forgot for every manufacturing jobs that is the multiple power of 2 1/2 jobs created here sfmade knows that we got to have other people understand that and then the biggest thing i want people to really be able to do is support our local

manufacturing by buying things that are made in san francisco as we approach the holiday season this is the best time to suggest to everybody buy local it is really going to help our manufacturers to sustain themselves and if we buy local understand the products that are made are caused to be made in san francisco or the bay area we'll support our local manufacturers that much more we have two programs i want to make sure that people understand that is buy local program and also sf bids connection our office work in tandem between big businesses and small businesses to support each other the large corporation shift 5 to 10 percent of buying power into local organized companies we'll have this much

stronger base in san francisco the buy local means we shop and dine in the 49 annette and i know we'll spent a lot of time we have great restaurant great stores, great outlets in san francisco to buy from you don't need to go online and buy other things from foreign places but have all the products made in manufacturing design with a san francisco label i want to make sure people understand that makes sure we understand the playbook and want to say thank you, thank you, thank you to the over 70 people that formed in playbook took a lot of interviews on the international and local level to understand what is going on here and when we say that we're going to support our local manufacturing places with more production, distribution, and repair spaces we want to know

we're doing it in the right way we don't need empty warehouses to get to san francisco we need vientd job creating spaces like here in cannabis dispensary caner america that is 50 years in the making when you understand what they had to do for the manufacturing you'll know they're making the same quality products in a precise way to be sold all over the world we need an international expletive in other words, to survive and do better it will compliment our strength in tourism and, etc. everyone thank you for coming here and being informed about the advanced manufacturing playbook and thank you for supporting cannabis dispensary can and gap and those

that will sell the sfmade pursuits good morning, everyone. >> (clapping.) >> we're now going to her from supervisor cowen sfropg advocate for our industrial jobs and supervisor at the district 10 we're looking to spend. >> (clapping.) >> good morning, everyone in the mayors introduction he earned the title of the number one fan of industrial work in spaces that makes me number 2 march 3 next to kate who knows but i'm excited to be here and thank you to all of you thank you and recognize the leadership of the mayor's office of economic workforce development we're working very, very hard to be inclusive and thought to make sure the policies are representing and recognizing and supporting small businesses in san francisco not leaving out

the manufacturing industry i think that is very important to call out when you think about the growth of the manufacturing industry the instructors that is retiring locally that is bringing diversity racial diversity and parity to the entire workforce, of course, i need to recognize the office of civic innovation and my friend from the sgin kate who to say the executive director and head of sfmade she has an incredible vision i think for the maker industry period in san francisco been a tremendous amount of work and diving in we're grateful and as you can see the fruit of your labor about 10 years if i'm not mistaken around that time that at the helm bringing about more manufacturing jokes for those of you who don't know i'm the maid of the san franciscan born and raised not far under the bayview

and been a considerable amount of time to fight for pdr space pdr space in this very conscious city for economic development isn't housing crisis has been the first type of space that has been cannibalized by development and with the mayor's office and with sfmade help we have been able to i think single-handedly pushed back r pushed back to protect pdr space to make sure that san francisco economy will thrive not everyone will afford a university or get a degree but were make sure we have jobs that are available for everyone at different education backgrounds to, sir can congratulations i know that - an incredible copy

50 years around and gap has been around anymore but i'm looking to getting a tour and if i see a belt or bracelet or something i'll put it on my tab no free rides just put it on my tabby want to talk a little bit about the advanced team this is a grew up of 25 sector businesses that got together to provide their insight on exactly what the industry needs to elevate and advance the industry and to begin to understand begin to understand how san francisco, california position itself to be a leader in this particular growing be sector now a series even if recognitions what that

made out of the workshop we're working on the first recommendation and it is to begin to organize a regional manufacturing which will reach out to from time to time and old and san jose rainwater this month we're happy to share the information with you when the event becomes to fruition but i want to again, thank you i'm grateful i don't know if anyone if i'm the only one that was unaware of advanced manufacturing s a simple concept you take old world and add technology to it that increasing the productivity that is incredibly important when you think about north silicon valley we're we should be industry leaders thank you to all the partners that makes us to be the leader and mayor ed lee

congratulations this is a quite an accomplishment and a feather in your cap thank you. >> (clapping.) >> well, good morning and thank you supervisor cowen and mayor ed lee for your remarks and leadership i'm kate ceo of sfmade and for those of you who don't know we have the city's nonprofit partner working across the city to support and sustain and help to keep local manufacturers like, sir can rising in the city our network of local manufacturing totals 6 hundred companies broadly raging be like, sir can and the broosters to a whole range of early stage makers and fueled kinds of companies from jewelry to granola to products that are probably more what we imagine

like the advanced manufacturing like a grown but today, i really want to comment on i think supervisor cowen you gave me the lead in we think about advanced manufacturing in this city and i do have to the opportunities now too often spent a lot of time in cities across the country that look at san francisco as a role model for how to knit together literally and figuratively over world craft we think about sue or metalworking my gathers was do to billing low where i came from all over the place advanced manufacturing we see the articles and pictures of drone or robots at the end of the day we're most cities i will august including that one finds the special combination of the two

in doing exactly what, sir can has done not just but the products so much opportunity in connecting together those new kinds of manufacturing technologies and some of them are pretty straightforward this i'm assuming michael was made with a lazer current a straightforward kind of technology you can have our young con or daughter learn how to use one at soft tech in san francisco but something that bigger companies like, sir can use to help to make their process more efficient at the end of the day when you add technology with people it is not instead of people that is the two together that's what makes the magic happen and that's where i see san francisco and others see san francisco be able to lead the way and demonstrate those those

two together work with that, my heartfelt thanks to the mayors leadership and supervisor cowen and her colleagues leadership on everything from land use to providing more visibility to those kinds of companies thank you to the corporate companies like the gaps and others from san francisco may not produce in the city any longer than but made investment and decision that help to drive the business of the, sir can and more importantly i want to thank you the team that makes, sir can as you may know from us as/78 their 12 of us i couldn't do anything without my team and want martin is the driver the primary author of that book our manufacturing fellow it is transitioning into the initiative we are launching

with mayor ed lee and the mayors of from time to time, oakland and san jose and pro transacted an initiative called the urban manufacturing initiative that will dwrief important jobs across the region in san francisco over the next 3 years the kickoff to that is actually on november 17th right here at the pier 70 we would like to see many of you here he wanted to end my little piece with to thank you for those who work at, sir can there is quite a few of you standing here you're the ones that make it happen all the rest is theizing on the cake it is about you guys and any thank you for investing and be able part of this with that, i'd like to introduce the ceo of, sir can

michael sanders thank you kate and welcome mayor ed lee and supervisor cowen and sfmade and the special customer gap we are honored to have you this is a special moment for, sir can and the communities back in 1967 the founder of this company started selling small leather good ideas on hate street and he invested along with his partner with technology and infrastructure to build it wonderful one plus thousand dollars manufacturing facility we're proud we have the largest leather good ideas facility in the united states we're the largest factory here in san francisco and proud to be in the bayview many years served consumers by the gaps for 45 years and nordstrom and others your goal to continue to expand and create

jobs isn't usa by expanding to huge channels what makes many company special are our employees one and 20 employees in the factory and over 40 employees up, huh? our afternoon tenure over 18 years we're incredibly proud of that. >> (clapping.) >> we pride ourselves in training employees and providing benefits and opportunity to grow and i want to thank everyone here and the employees for, sir can for making this company special so thank you. >> (clapping.) >> and with that i'd like to introduce you to one of our is there any public comment employees tammy, tammy. >> (clapping.) >> i think good high good morning, everyone my name is tammy long

i've worked here for 17 years my husband worked here for 24 years we both like working for, sir can we get for learn about new machines and learn about new fields my supervisor nice to everyone we work together like family and very happy thank you. >> (clapping.) >> so, now i'd like to invite you on a tour of the factory

lead by michael thank you, everyone

>> director gee, present. kim, here. reiskin, here. nuru, present. dr. sartipi is expected to be here. >> next item >> communication and not aware of any. >> okay. i don't think we have any from the board. >> item 4 is board of directs new and old business. >> okay-we have a new president elect, we know that. >> i would like to not know. >> just in case nobody knew. next item >> item 5, executive director report.

>> october 20 meeting approved reduction in lease rates under interstate 80 for the bus service facility . this will benefit golden gate transit which has similar storage lot under i 80 with lease rates set to exspire nucs month. the current lease is approximately $560 thousand per euros year. [inaudible] caltrans informed on the current fair market value the cost of the lease will increase to $1.4 million per year after twnt percent discount. through the collaborative effort of golden gate district

and ac translt and help with caltrans approved a lease term with 85 percent discount of fair market value reducing the lease to more than $85 percent discount of fair market value reducing the lease to more than a million to $25 thousand a year which is half of what golden gate is paying now. like to thank director harper who was at the meeting and thank director sartipi caltrans staff for helping come to this. that was a great result for us. our next steps would be enter into agreement with caltrans and ac transit and take back to ctc and bring back to board for approval. [inaudible] been a strong supporter of veterans throughout the history the project. tomorrows is veterans day and felt it was important to honor the veterans working hard to development the translt center. from the

trades in the field to professional staff 30 veterans are invited to sit torenl for exclusive lunch to thank them. like to thank [inaudible] for the construction erflt. we are looking forward to. last month we hoped to receive first dispersement of [inaudible] in late october. we have not been able to come to agreement on the loan amendment per taining to city financing. we are still hoping to receive dispersement later this munthd and talked to leadership in washington and agreed to give dispersement later this month without the amendment officially executed and city financing closed, however, this provided we are able to come to terms with the agreement on the tournament. we have a call later this afternoon to finalize that so the hope is we

receive dispersement later this month. i have sarah here and can answer any question regarding this and this concludes my report. >> on the ctc meeting, we can particularly thank chairman alvarado. he was absolutely masterful. he has a big-like 14 or 16 people and they are just-he just focused and focused and focused and focused and focused and he want going to let anyone continue the item for any reason, we will figure it out now. it was masterful. if any board member wants to see how you chair a meeting or at least that item, it was really good. everybody helped, but he did it and directed it and where he wanted to go and it was unanimous after he finished. really good to watch. okay. next item.

>> construction update. >> good morning, directors. for this months update we are back at full staff so ron and i will split duty and go 33 the usual items we hit on. so, regarding roont activity, this graph shows a lot of green, green means good. a lot of progress. pink is all activity in progress at this point. we have about 700 workers on site today, so we continue to bump up and continue to add as we get throughsoever the next quarter or two working day, swing, night shift saturday and occasion alsundays. this shows the rooftop restaurant starting down to the ground level. beale street, the last train block con crete pour was done the past week so sthra lot of activity throughout the entire above grade portion and

below grade there is tru-minds progress on the lower concourse and train block. the lower con course is heart and lungs. in the graphic a lot are going 3 d which mean thaiz are active or completed so very good progress going on on these sites. when you jump >> to the had bus ramp the graphic shows activity to the cable stay to climen teen through harrison. the graphics are continuing to change and update and lot of progress made. you can see in the picture in the western zone that shows that there is a lut of work on the bus deck. the water proofing and concrete makes to either end chbt we started in the middle and worked out so now it is making to the far west end. the bottom left it shows where all the

conduit, there is a amazing amount of conduit. if you have been out you know how much. on top the switch gear transformers continue to be installed. there are a lot of those out there as we get towards permanent power. the central focus is rooftop and water proofing happening up there. also the glass canopies over escalators are taking shape. one the skylights has a grade placed on it, a big milestone. a large oval has the framing on top in preparation for the glass that will go there. also the glass foor has a lot of panels in it. in the eastern zone the light column is taking shape with the skylight. about to have its framing go over it as well too. the awning is making progress

in the western and eastern zones as we proguess. in the grand hall the glass ceiling which is our critical path so a lot of emphasis on that area mptd on the bus ramp, our cable stay, the cables have been stressed, all 7 of them. it has been lifted up and a lot of the false work is gone already. it looks beautiful as you drive down howard street but have miscellaneous pieces to come into place to make it permanent soon. items on the bus ramp are progressing like the retaining wall squz deck work is happening as well. now, there is a lot of-we are in transition on the presentation and put all the words up and won't reference them. they are later reading but the main focus is there is a lot of items that will be completed in the next period. completed,

completed shows up through this especially in the central zone. we are in a transition period where we talk more about bus operations, getting that on board. the getting the building up and running. the commissioning of it and the retail cl element ron will talk more in on his operational readiness slide. this is a slide that is focusing on a lot of things that complete in the field as we move into 2017 getting ready fl day one. unfortunately had one lost time accident, it happened a month ago. a employee as he was-tripped on a tray underneath a porta john and ripped thetenedens in both quadricepts so it wasn't technically a work related incident but on the job

site so one lost time this year. we wish him well. he is a having surgery and hopefully see back on site shortly. the craft hours sur passed 2.7 million hours to date on the project so we continue to get very very large numbers with the crafts. >> while we are on that slide, i always thought that every lost time incident is recordable incident? >> we put it under the category so don't lose track of a lost time. it is sort of a fundamental-just the way we report it at this point. >> you had zero in lost time. >> we keep them separate. >> okay. >> with that i'll turn it over to ron for the rest the presentation. >> thanks dennis. always appreciate the level of detail you share with us in the activity in the field and your correct, we are coming to the end of the big heavy

construction and moving more into the grandural activity of mep and commissioning and all that. exciting place to be. with respect to budget, no real big surprises. it is kind of trending as expected. we spent expenditures went up about just under $28 million over the last month. pretty much expected in terms of finishic ing up in the next 14 months as expected. commitment wnt up about $28.4 million and in terms of forecast estimate of completion we went down $1.3 million reflective of the favorable bid we received on the network so going in a good direction there. in terms of percent complete in terms of budget and contract time both tipped up about 1 percent, so no real surprises

there. um, with respect to contingency cost, it was a light month predominantly on electrical i think about $100 thousand of contingency draw around electrical and this is where we reflect the plowing back into the program reserve, the 1.5 cost avoidance by having a favorable bid. there ask a number of things in the hopper as you see with the forecast continge aenss use. just under $3 million in discussion in terms of things and potential contingency draws. not all of them will become real but gives a idea of magnitude of discussion going on. mubing mubing moving on

to schedule, as dennis reported, last month we received a recovery schedule, so we are really seeing a stabilization of the schedule. if you recall over the months the previous months and current month report we bobbed around because of the issues we rp wrestling with. not a lot to say here. we stabilized reflective of the recovery schedule and no big changes over the last month. it is up to us to monitor and maintain the current recovery schedule to achieve the objective of being substantially complete by 12-22-17. even looking that grandural streams of activity they are all well stabilized. we have a bit more work on the roof park as i

think dennis relaid in terms of recovery but all in all, ready for its inteneded use is on track for december of-december 22, twnt 2017. as -going back for a second i want to highlight the bus storage again reflects the normal slippage with ability to settle on the lease and mark mentioned, lease terms have been determined with the bus storage facilities, so we are looking towards focusing on that and getting that back on track. this slide here outlines we are dialing in milestones to initiate to get correct with the bus storage facility in terms of getting the bid out

to bid, getting ready. there is residual ark logical field work that needs to be done. we are looking at 14 to 18 month duration with a trajectory towards fall of twnt 2018 to have the bus storage facility in place and obviously that is post operations of the transit center, so there will be a interim period we deadhead or accommodations need to be done. >> quick question. is there a reason why we are waiting another three months to start the field work? >> i think we still need the bid. the drawings are done, i think it- >> it looks like the work is starting observe the contract award. is this happening outside the contract? >> ark logical work? >> right. >> we already [inaudible] our initant is start in january.

there is the areas used for parking lot now so need to work with caltrans on entering the area and need to terminate the lease or figure whether we can do some of that work and remain as a parking lot use. >> okay. anything we can do to- >> absolutely. >> the time from the transit scepter opens and bus facility. >> that is intent. >> why didn't dee the bidding period earlier? we didn't need the lease agreed before the bids go ow so could have done that earlier, right sph >> yeah, receiving bids there is a timeframe that they hold true. there was a risk there. >> we didn't have to advertise until there was a commitment from ac transit to fund the lease and

ac trandst wouldn't fund the lease without the lease terms. ac transit indicated they will not be able to fund the lease based on the initial copative agreement- >> the 85 percent is totally unaffordable. >> yes. we have to wait for that, so now that we have that resolved-- >> still would have been--you can go out. not all ac transit's fault. that's my job. [laughter] >> we try to be strategic and preload what we could. that is how it played out but now that the lease is just about in place in terms of being official, we need to pick up the pace and put focus on that stream of activity as well.

>> i like to ask a question. i was going wait but since we are on the slide, ron you and your team have done a great job on budget and schedule. if i understand i think probably the biggest risk from a financial standpoint is bus storage facilities since we haven't bid it yet? there is potential for bid bust. is that my seeing this correctly from a numbers standpoint because this piece the project hasn't been bid yes, there is potential for the numbers not to hit what we are estimating? >> yeah, as i say we can get hit by any number of comments out there. we just need to manage to where we are going and- >> this is the largest item missing out there to make sure you hit your forecast. >> yeah >> appreciate that. >> good point. lost site for a

while focused on the transitsenter but there is a big chink in there. >> to manage the risk there will be a major outreach because we can manage the risk. >> until you go the number you dont know the number. >> moving forward with challenges and we have normalized thinks out there so the challenges are the big threat challenges are quite deminshed from previous months. again, we always have to wrestle with the schedule and as i mentioned recovery schedule in place. we continue a strategic overtime -elements in the floor. the

trazal floor has a lot of medal dividers that are design jz laid out in the field. devised a manner in which to law them out in a modular fashion and get a running start on that and that is just one element in our strategy that decompressed the concentration of activity out in the grand hall, which was for a long time the critical path that we have been focused on. so, a lot of thinking along those lines.