>> [gavel] good afternoon >> good afternoon i like to call the april 11 meeting of the public utilities commission toward mdm. sec. will you call the roll call >> moran here, kwon here vietor here, tran courtney here caen care. a quorum is present. >> we have the minutes of the march 28 meeting for any additions or corrections or comments? >> i move the minutes >> second. >> any public comment? seeing none, all those in favor say, aye. [chorus of ayes.] opposed, nay. the item carries. next is opportunity for general public comments. this a chance for people to talk to the

commission about rings that are within our jurisdiction but don't have to be on the calendar for the i have one speaker car. mr. bowman, is it? welcome. >> mr. pres., commissioners, general manager, i am chris bowman. i'm a neighborhood activists. i'm speaking about the groundwater project which was addressed at the last meeting, and i know commissioner caen and peter had some questioning, which i thought was very much spot on. when the word came out that in the chronicle last february indeed the city was can be lending groundwater with hetch hetchy water for roughly 60% of the city, i was alarmed by a couple of things in the article. one, about the fact

that nitrites above the state level were detected in some of the wells that will be feeding into the water system. secondarily, the economic impact on certain industries, like beer and coffee [inaudible]. so i address the issue with the [inaudible] president of the coalition for san francisco neighborhoods. we addressed it briefly at their meeting that we cowrote an article in the westside observer extensively about the issue and this is after going to the dir and all the other documents that you have on the groundwater project on your website. there are a couple of issues that are concern to us and we would ask that you have delayed the turning on the spigot of the grounding of the blending of groundwater, that the deferred indefinitely.. you continue with the project as is

as far as developing the two other wells in golden gate park, which should be online by 2019. the concerns are that at full implementation, we are not [inaudible] 4 million gallons of water a day versus 81 million, which is the allotment. it's really about 4 million versus about 24 million which we are going to the service area handled by the sunset and the suture wells. so we are talking about a 15% blend that there was a provision in the eir in the d-eir and also [inaudible] that basically you would not to use while sites in which there is contamination discovered.well, you are. you shouldn't be. so, going back to what commissioner vietor said last week this other uses for the groundwater

right now. you can use it for street cleaning could you can also use it for the auxiliary water system and you would have the same results in expanding the water supply without contaminating the hetch hetchy water you already have. some running out of time, so that is my two cents worth it if you own a questions i'll be glad to answer. >> thank you. any other- >> i just want to point out that the supervisors have asked for a hearing on groundwater. so we plan to schedule that and talk more about our groundwater. i want to give you a heads up on that. >> thank you. >> that has not been scheduled yet? >> no. not at this time. but a couple, norman yee, sheehy a couple others haveasked that we schedule a hearing so they are

working with us to schedule time for the hearing. >> thank you. any other general public comments? see with seeing none, will move on to communications. commissioners, communications in front of you. any questions or comments? any public comment on the communications? seeing none, will move on to other commission business. seeing none, we will move on to report of the general manager. mr. kelly good >> thank you. first item i have is a creek watershed project update your steve ritchie. >> thank you steve ritchie assistant general manager for water. it should of said alameda creek watershed center update. we just focused on the

watershed center as opposed to the entire watershed to make sure no one's confused. when talking to talk about the all amida creek or general watershed issues just on the center. the watershed center and the [inaudible] improvements together what we've been calling the long-term improvements project, they are both based need a project from our point of view. the-improvements are basically rebuilding the yard which i refer to numerous times as an fixer upper. it was really in sad shape. the watershed center is the new facility that would provide interpretive facilities in a medium space relative door watershed and that will be the county. so we are completely committed to both these projects. we went out to bid for them back in 2016, and unfortunately, the bids came in the two projects 40% higher than the engineers estimate will be on any budget we had for the projects. so we actually put the yard

improvements through value and jim we did not do that with a watershed center. so we decided to move forward with the guardian permits because they were desperately needed, frankly come out there. we did get bids in there and that was actually about 20% higher. so it was still over but it was important project to move forward on this we move forward on the project last november so the contractors started working out for the watershed center, we've gone through evaluation and identified some additional savings, but we are basically in a position where we don't have enough money and earn title building and grounds project to actually build the project. were doing two things right now. one is were looking at potentially altering the design to something simpler that might cost less. that is one option for the other is, we are going to be looking at our capital improvement program in the upcoming budget cycle and reprioritizing because not just the watershed center but other

buildings and grounds project are definitely in need of attention from our point of view for the [inaudible] and for facility as well. so we fully expect to do is to come back to the them commission this fall with some alternatives on how we can move forward here. either without real tooling design that should cost less, or, actually reprioritizing our capital improvement program to move funds into these critical building grounds project so that is the summary of where we are at right now on the project. >> thank you. commissioner vietor >> i thought we budgeted for this project? >> we have budgeted for this project and for this yard improvement. frankly, we had a great run during [inaudible] but the economic recovery has been we bids are coming in higher, particularly, for aboveground structures. we are still into pretty well on pipelines, but anything above ground right now the bidding environment is really challenging and this is

relatively remote location, so we ended up with much higher bids that we expected. >> and so you will go back out to bid, do you think? >> yes. we will. the two options like i said there redesigning and peering back in it some way or facing the construction of it so we do a piece at the time were, doing -making both of these when we look at the capital improvement program, and reallocate funding to these projects and defund some other projects into for those time. those are the two general options i think will be coming back with probably in about september-october >> i would like to see this project continue. i know that's an old community really looking forward to this as a contribution we could make and collaborate with them and i also know sage is part of the agreement of their transition was very interested in seeing this to fruition. so whatever we can do to really get this back on track, i would really appreciate

>> yes. we are committed to doing the project. there's no question in my mind. i'm per committed to it as well so we will make this happen. just a matter of finding the money and resources, the right time and right mix to make it work. >> okay. great. we will hear back in the fall? >> yes. >> thank you >> thank you. any other questions? any public comment? mr. brooks. >> good afternoon commission to eric brooks. sustainability chairman for san francisco green party and coordinator of our city san francisco. so slightly tangential, but it is related to the item over the past couple of years my group and others have done some good work at the department of the environment and you might remember us talking about this last year to get a reduction in our pesticide use in parks and natural areas. since we

started that were, a couple of years ago we have managed to get use in san francisco but cut by 80%. some of the worst pesticides. also since that work we have begun-it's been clearly decided by a court that juan santos wound up is a carcinogen and some revelations have come out that monsanto could even [inaudible] research on that chemical. so with regard to these centers and as they are kind of showing the public what's going on with her watershed restorations, it would be good if there could be some public information that, in the centers come out there for the public to read, that shows that san francisco is making an effort to reduce these heavy and toxic carcinogen tier 1 herbicides so that the public is aware and thinking in that direction. so that the employees are thinking , do and i need to use an

herbicide in this particular instance when there after doing their job. that will just encourage us to head in that direction. so if there's anything we can do to get those-that type of information and notices in the centers of the public and workers can read them, that would be good. thanks. >> thank you. any other public comment? thank you. mr. kelly, anymore on the general manager report? >> no. we have two other items but [inaudible] my report we actually made separate agenda items. but that concludes my report. >> okay. thank you. moving on to item 8, workforce development update. >> good afternoon commissioners. i am martin grant, special

projects advisor here at the puc. i'm not new to the city but i'm relatively new to the puc and especially new to the workforce the roman efforts at the puc. that said, i have been asked to gather information and bring it together for you in response to commissioner courtney's request. so may i ask we bring up the slides? next slide, please. so there are three bureaus within the sf puc that handle workforce the roman projects and these are the puc's human resource services division, infrastructure division, which focuses on a private sector workforce development efforts, and external affairs-community

benefits as you know. a division of the external affairs. as you know, recently adopted strategic plan calls for the agency to attract, retain, develop, and develop an effective workforce reflective and supportive of our communities. that consistently delivers high quality services to stakeholders. today, we will be focusing on the agency's efforts to do exactly that with our effective workforce. first, just [inaudible] deputy director of human resources services will describe hrs efforts to create conference of workforce the roman plans including our plans for future apprenticeship and pre-apprenticeship programs. then we will hear from yolanda manzoni-acting director of community benefits from the

external affairs tempted to ask layne how external affairs and community benefits are helping the puc ensure its workforce is reflective and supportive of our communities. as an aside, we know you're regularly briefed on the many accomplishments of our private sector workforce development through the regular reports. first up, justine-from human resource services. >> thank you welcome. >> thank you and good afternoon. commissioners, as martin said, justine--deputy director for hrswith the puc. last you heard from hr, it was a very data driven presentation discussing how our workforce is trending. in particular, where we are most vulnerable for retirement risks. since then, with the

launch of our 2020 strategic plan, we have started developing a link cohesive workforce development program to not only prepare for impending retirement but you also create a conference of talent acquisition and development initiative. some other programs that i'll be highlighting today have been in development for some timeand some are just getting started. we have been able to identify existing programs and partnerships within the city and we are also targeting new projects to alternately create a conference of workforce development initiative. as you already know, the effective workforce goal is comprised of six overarching objectives. within each objective there are 2-6 action areas, and within each actuary is an above target a project. what i'm

going to be highlighting for you today are just some of those projects. so again last you heard from hr, you also are from a enterprise workforce planning unit and we provided you with details about our emerging competency-based approach to workforce planning and development. while the agency was model is still in development, we are also preparing to launch our second phase of this approach, by piloting the hr competency metal in our recruitment and selection activities without coming hires in hr. by piloting this phase we are actually able to target more than just one objective in our effective workforce goal. because we will be equipping our hr analystto understand the benefits of the competency-based approach, the process is affected, andthe tools used when the competency model is put into action, after

completion of this phase, then the puc will be in a better position to begin rolling out this competency-based approach to our recruitment and selection agencywide whenever there's a new hire coming in to a unit that has a completed competency model. so how we do this is by emphasizing key competencies within the job posting and an equipment materials within the recruitment phase. within the selection phase, by developing competency-based interview questions and using the target behaviors in each competency to rate candidate performance. once we have developed these competency models and gather data about work across the organization, we have already laid the foundation for objective-working on objective

two of our strategic plan goal, ensuring job description classification query across the organization. so looking at our current job descriptions, which describe work at a level of tasks and duties, that can kind of be hard to understand how different classifications or positions relate to each other. but, if you are using competencies as a common language for describing what it takes to be successful at the puc and at the level at just duties and pass, you help to clarify and align job descriptions across the organization. so by comparing proficiency levels within those competencies we can even help clarify the progression from class to class for career planning and in this example, within a job series. but this analysis is also-it can also be done among all classifications. moving on to our objective three, i will be talking to two initiatives from the subject at first, an example of an existing program and

established partnership that aligns with the puc's greater workforce development initiative. although there've been several apprenticeship programs throughout the city for some time now, in 2015 dhr begin standardizing all these programs. in partnership with participating city departments, like us, local labor organizations, we are exploring new apprenticeships to develop and collectively--if these programs are called apprenticeship sf friendships are critical step in our career path and can have a tremendous positive impact when done with intention. within the city 20% of our classifications are skilled labor craftsman and trade. at the puc, these are also the same classifications we are most at risk for retirement. about 33% of our skilled crafts employees will be retirement eligible within the next five years. so all of

these apprenticeships programs in the city must meet uniform standards including registry with the california state department of industrial relations, division of apprenticeship standards, and participating department are heavily involved in the development of these programs including the design, creating and memorializing the mayor-based hiring processes, and of course, hosting our premises. existing partnership sf programs hosted at the puc include stationary engineer apprentices, and utility plumbers,and we are exploring with dhr to include automotive machinist and maintenance machinist electrical power line workers and general construction labor. so with the success of a partnership sf, we are also expanding our strategy to explore a career a partnership program although career a partnerships do not provide direct entry to the legitimate steppingstones to establish a partnership program. similar to apprenticeships-pre-a partnerships are created in partnership with all-city to parents who wish to participate

in after me uniform standards and or manage through dhr. pre--a partnerships can creates our potential applicant pool by providing hands-on training and education that is job-related to the lopez basic school qualifications, and ultimately, these programs provide another access point to employment opportunities within the city. in our fourth objective we are looking at two initiatives regarding red emerging leadership development program. first, the lead to succeed program. that is an interactive course that was developed by dhr to complement the a partnership sf program. so we are looking to bring that hereto the puc. it is designed for staff to act in a lead role to help them with their communication and coaching skills early on so they can effectively direct and support team members even when they're just beginning as a leader. this program has got such great feedback and i think there's a really big needed to bring this to our workforce, so we are pretty excited to start doing that. we have also created the

puc leadership competency model . again part of our competency-based initiative. it provides a frame working and guidance for employees from interns to executives, to develop in the competencies most important to successful leadership at the puc. this model also has lots of resources and tools to help all staff develop these leadership competencies. moving onto project stemming from our fifth objective, the updated employer recognition program which had a great inaugural year with five individual winners, and five team winners. those were announced in january. overall this was a great success. we have also partnered with dhr and other city departments to revisit the city's current performance plan and appraisal report, the power system, which is antiquated. our work and workforce has grown. it has

become more dynamic. it's been modernized, but the par system has remained static and it's time for an update. in collaboration with other city apartments and dhr we formed a working group to research best practices, to research technology solutions, so we can make some recommendations and what we are really looking for something that's future focused, has different adaptable tools fry dynamic work, and in general, will bolster employee development effort. finally, our highlight one initiative emerging from our six objectives in our goal. we are embarking on developing a conference of workforce data analytic program. right now, how we make decisions, how we plan, how we conceive our performance management, is all quite limited. that's mainly because information or metrics we use are fairly static. which results in our decision-makers always being in a reactive mode. static one-dimensional information also makes it challenging to align staffing plans to shifting business needs. so, because we don't

have an application or a technology solution right now, that can aggregate different sources of information in real time, we are forced to just look at one point in time. we have to try then, to make inferences based on a really limited data. so on this slide, i'm showing you an example of the kinds of metrics that we have the capacity to provide now. we are looking at the turnover rate for one point in time based on enterprise. but that's it. that's all we know. we don't know what caused these rates to be, or maybe, with those things impact. so by switching our paradigm and embracing a workforce analytics approach, we will have an advanced dataset of analysis tools for conference of work for strategic planning. this slide provides you with a visual representation of what data analytics can provide. the

numbers i'm using are not relevant to the puc. so here think of the outer circle as the overall puc. think of the inner circle as a division within the puc. college division ask. were looking at staffing changes within the division. so when we look at all the different data sources that are added up have a change of -10 people, but unlike when using metrics, here we control down our available information and understand more about how that -10 number came to be. on the right side, we have people coming into and out of division x but all the time remaining employees within the puc. on the left side we are people coming into and out of puc entirely. the purple, which is right in the middle, shows internal movements like promotion. so this visual shows you multiple different subsets of data that make up the greater datapoint of change in

staffing for that division it shows you how those subpoints interplay within the greater puc. so it's going to give you multiple layers in one visual. so you can understand how things are connected, so you can make informed decisions. for example, if we see we have lots of movement coming from outside of the organization and even out of the city, into the division, perhaps we don't need to focus on pipeline entry point efforts for those kinds of classifications and that division. but if you see, for example, a lot of movement from the division out and into the greater puc, then we might want to focus our efforts on employee development within that division. though it gives us more insight of where to focus. the yield to our organization will be multifaceted and frankly, game changing to would have any high impact on greater assets, are people, ranging from recruiting labor cost diversity development and also on her

business. resulting in cost reductions like decrease time to hire, increase retention, and these things can turn into increases in revenue and margins as well as improved customer satisfaction. so this data can only be done through technology we very vetted various technology situations and we honed in on one particular platform. we are working in partnership with our finance division to bring it to the puc. those are just some of the projects that are related to our overall workforce development plan at the puc. that's all i have for you today. thank you. >> any questions? >> i was going to say, nice job. that's about it as detailed in much of a tree down we could hope to get from you. it's impressive work. i like that last part the most. [laughing] >> thank you. >> question. i'm not sure if it's for you or who, but i

thought at the point we were to have a conversation about the workforce related to the money that's going into the bayview in particular, and the sf white pic and investments making there. is that something you will come back with? >> how that kind of relates to the internal piece, puc workforce meets? >> that's not something i'm going to speak to today >> but we can provide that information. i mean it really touches everything that we do. we focus all over the city, but especially in the bayview, like when we offered solar or clean power sf. it's always the focus of how can we penetrate the areas we impact. so we can definitely give you an overview, but just to warn you, you talk about everything we do. >> i'm sort of more interested in the investment the 2.7, going in and what the job creation will be. the

short-term versus long-term jobs. construction jobs versus-and if there's opportunity to pipeline some of the positions at some point were if there's any connection there if i make sense? >> yes. we actually can definitely do it all. i know that massoud and-have done a lot of work and gave us a presentation that was just really outstanding. not only talk about folks in the community, but talked about small businesses and trying to find the type of work that is needed and try to make sure that the folks are ready when the time comes. so, maybe, >> we can get a presentation? >> yes. the challenge was it's quite in-depth. quite long, but it had at your seat all the information we were able to gather. so we will tee it up and bring it before you. it's actually outstanding. speak rates. >> i give them a lot of credit on that. we do have a part to

so i just want you to know speak great >> thank you. >> thank you. thank you justine and good afternoon my name is [inaudible] acting director of community benefits. now that you've heard from justine about the many ways that are human resource department is really leading the way and a compass and what is set out in our strategic plans effective workforce go, i'm going to talk about the ways in which we in external affairs also support effective workforce for the agents. specifically, we focus on the strategic plan objectives the right to positioning the sf puc as an employer of choice with the communities that we serve. so from engaging our youngest learners to clean teens and young adults we work more on the front end of what forced the relevant so to speak. as you may recall from previous presentations to the commission, we have been working hard on will be color

conjure to career strategy. so building off of that, what were excited to share with you today is how the strategic plan is really driving us in facilitating a deeper connection of all those various entry points and pathways that can wendy lead to a career at the sf puc. in other words, it's driving us to be quite concrete and how we are connecting all those dots. so to demonstrate exactly what we mean by our candor to career strategy, i would like to ask you to imagine a child born in san francisco that first comes into contact with the sf puc at fun sunny street events with her family. now we were able to capture the child's attention with a giant inflatable toilet. now you may say, what's that about. we know that toilet is actually designed to teach kids but also adults, what not to throw in a toilet and thereby protecting our sewer system, but for the child, it was just a fun game that caught her

attention. next, imagine she goes to school and she fills up her reusable water bottle and newly installed drink station. then, in third grade she goes on a school field trip to the college hill learning garden where she learns with that delicious water comes from. she also learned about the water cycle about renewable energy from sun and wind and she uses a composting toilet for the first time. because of that sunny streets event she went to several years before she knows already only the 3p's big long in the toilet. then in fourth and fifth grade she reserved in classroom presentations water conservation and pollution prevention mine those presentations are tied to common core and next-generation science standards she is learning in class). in sixth grade, she takes a tour with her class of our headquarters at 525 golden gate, where she learns things about the living machine that she remembers spector a field trip to this college hill learning garden

see some of the same things only in a bigger scale to solar panels and the plants helping to clean the water. in eighth grade her class goes on a field trip to the southeast treatment plant where she learns about the wastewater treatment process up close. she thinks it's a little stinky but she actually think it's kind of cool. so in 11th grade when she's at a career fair she sees a sign for project fall. she thinks back to the classroom presentations to the field trips she has done to the building towards, and she decides to apply right away. she's accepted into the program and she loves it. she decides she's interested in engineering and she wants to go to college. when in college he comes back as a paid tien lieber with project pool to impart some of the knowledge she learned as a high school student on to the next generation she hopes to one day have a permanent career at the sf puc. that story represents the many ways in which we in external affairs working abroad but concrete way to build interest in environmental stewardship and this goes relevant to sf puc

jobs and utility careers. this is really the heart of our candor to career strategy. while i think that stories really illustrative, i also like to share some specifics with you. so each year we support over 1800 positive paid work expenses for youth and adults. these expenses strengthen our own workforce pipeline by exposing more youth to jobs skills and careers at the puc. while the youth served come from all over the city is a map shows, a large portion to come from the southeast which is the most impacted neighborhood. internship programs include among other things sf ip arduous particle, project learning grants in which we partner with nonprofit organizations already experts and running summer programming and youth internships. all of this of course in turn supports the mayor's youth job, plus, initiative in fact had the pleasure of attending a ceremony just two weeks ago where the

mayor lunch this upcoming summer's program for the youth and in which the puc pledge to support 915 paid summer internships this coming summer. 950 number, of course, as part of the 1500 annually served from our perspective but from the mayor's perspective, that makes it almost a fifth of all the summer youth opportunities for youth in the city. that's a big commitment. for this commitment, we've been recognized by the mayor's office as a model employer. now as much as the pride i have in san francisco, we also need to recognize that we are regional agencies and regional impacts and also regional opportunities to strengthen our talent pipelines. of course, we in external affairs are also working to get the dots for youth across the bay area. one great example of this is our work with bay work, regional consortium water and wastewater agencies dedicated to workforce development. last year, we have

bay work secure $150,000 grant with our partner jewish vocational services to perform a regional labor analysis. with this work will do is it's producing a map of all hiring needs and training opportunities and importantly, identifying the gaps within the region. this research will lay the foundation for programs through hr, through the city, to better align and fill those gaps as called for under the strategic plan. in another example are regional work is the promotion of utility careers broadly for high school and career fairs. an example that was a recent career fair held at laney college, in which a 33 agencies community colleges and workforce develop and agencies participated. over 1000 youth from across the bay area came and learned about what it could be love to work for a utility like a puc. so from candor to career, from inner-city and throughout the region we in external affairs are proud to support the many ways sf puc's actively working

towards the effective workforce goal. sparking interest our youngest learners in providing meaningful career pathways exposure for youth. we hope you're excited by the work as we are and if not we hope to address any outstanding concerns you have today so we can keep going on this great work. with that, i will take any questions you may have. >> thank you. commissioners? >> i just want to complement -terrific work and i think you're starting so early good chicago cubs were great [inaudible] fire system [inaudible] [laughing] but, i think it's actually brilliant you're starting very early and are bringing these kids in your engaging them in fun. because some of these topics need a real way to engage them just like a kid does not know where their food or milk comes from same thing with broader goes and work on something i just want

to applaud your efforts. for inclusive and very strategic. >> thank you. >> commissioner? >> i really like the illustration. nicely done. i imagine we will have another conversation just to keep the conversation going, but i want to thank you, obviously, for entering [inaudible] while in may not be considered sexy, sometimes it's also appropriate to talk about the other child, right? the ones that come from a broken home. a violence relationship. gang affiliation. youth guidance center incarceration. and how we service that worker. i know that this is mission critical, but we also have to consider that we have an obligation and it's also pursuant to the mayor's policy objectives to focus on those individuals were

looking for a first or second chance. i think the puc misses an opportunity to talk about, a, the rate work were already doing, with respect to the community, but b, how we intend to do better. because, it is harder to do. some hoping that you will add that illustration as well. >> we can certainly come back and i think amongst colleagues and it's really agencywide we can sorely speak to that at the next go around. >> i definitely agree the example that we use was an example of the success. successful path however, work with different programs like the garden project, where they can take at risk kids and they take them upcountry because if you have a person that was in the game you just can move them around the city because they go into the wrong area, which i

think is something happened that dpw where they had x-gang numbers they move them to another [inaudible] they came by and shot him to so we are very mindful of that. that's why where we have work upcountry could be a great opportunity. so we can definitely highlight those programs of opportunities for everyone i would love to give more examples of the workforce and definitely gives us an opportunity to really talk about all the things we are doing. >> that would be my hope. obviously, with your leadership, harlan, but ellis and her team, my hope really is that obviously, my colleague are willing to have the conversation later on down the road, that we have an opportunity to discuss amongst ourselves kind of the challenges and the goals and the objectives, and how that

relates to the policy, but in my mind, really, this is just to me personally, those are the true success stories until you feel it in until you get that message from the young brother, you don't really know. you have no idea. these are people that have lost all hope it's not kindergarten and its people lost all hope and then we end up kind of saving lives whether it is into the private sector construction industry or even into our own agency and some of these classifications that we are really targeting. but awesome report. thank you >> thank you so much. >> commissioner vietor >> i just want a piggy back on that a little bit and comment at it from the environmental perspective. what i think you're also doing what's commissioner courtney is saying, a lot of these opportunities that you're providing for these youth are to bring them into and it natural experience and reconnect them with the environment and nature. we know

that if they don't have that visceral experience that they will not grow up with an appreciation for serving water, conserving energy, for being the stewards of the future that i think is part of a puc's goal. so i just want to congratulate your team on kind of keeping that focus and mission alive, as we look for workforce opportunities also for the opportunities being provided to these kids all along the way to get outside some who have never had an outdoor experience. how can be a transformative event. >> absolutely. thank you >> thank you i'm sorry. >> i like to hear more about the lead to succeed. if there's more material i can read up on it. don't to a brief but i think it's a great program that i just want to hear more about it. >> absolutely. right now it's

something solely edit hr department of human resources, and we are working with them to bring it here to the puc so once that is up and running i'll be happy to do it >> maybe we can do is provide you the information they have so you can kind of preview what were working on. >> thank you. >> okay. thank you. commissioner courtney, thank you again for once again challenging us to think a little bit more broadly about issues. i think you're quite on the money. public comment. i'm sorry, did you have wrap-up? public comment. [calling public comment cards.] do i have your card? >> i did not turn the car in on this one. >> ms. gill. >> hello. i come before you to ask you to keep the community informed on job opportunities so many times we have missed opportunities because we did not know about the job opportunities. i'm asking also that training our workforce

with skills only the union can provide because the union has trained employees more than communities [inaudible]. thank you. >> thank you. sr. hughes. hello. >> hello. that was an awesome presentation. i must say that, my goodness, wow. no need for me to tell you about the issues facing the african-american community here in san francisco, but since the closing of the shipyard in the mid-70s the economic engine for the black workers dried out. however, projects like what is happening at the wastewater treatment plant [inaudible]

neighborhood economic stabilization for those currently living in the community. i commend you all on the work that you're doing. that presentation, was sitting there like oh my god i'm going to have a change what i'm going to say because i mean, i was just floored at the work that you are doing and the support and we are just hoping that this continues to keep on because communities, our community, bayview hunters point, needs programs like this for the youth to support our youth and to engage them and to lifelong opportunities so they can be successful in construction work, but garden stuffing and lifelong and open

enough their minds to broader things. to know that there are, good lord, you guys just gave me so much to talk about in such a little bit of time. i just love children and i love what you do and i'm just saying, keep doing it and this board here just keep it going to bayview. don't stop. i encourage you to not forget the mission. i love what you said about the address and making that known about what it is you are doing. i couldn't have said it better. thank you. >> thank you.

>> what is your name? >> i do not say my name? my name is sr. stephanie hughes. i'm sorry. thank you. >> thank you. >> jaclyn flint. following her will be eloise--then david george. >> good afternoon commissioners. mr. kelly. i'm alongside my program manager claire grimes my name is jaclyn flint executive director of the randolph institute and we serve residents all city residents, providing workforce and pre-apprenticeship services. we primarily serve bayview hunters point in our work force services include job skill development, case management services, and barrier removal service. these are all prior to entering into our construction trades. we provide our reach an agreement and some of the

cinemas critical communities include our public housing developments in many of our clients face multiple barriers to employment that include lack of job experience, access to hard skill development and criminal histories. we are strong supporters of our union trades and they provide properties to sustainable job opportunities, and him talk about family sustainable. we want to continue to support the puc's collaborative efforts to leverage work that epri provide two great bible pathways to sustainable jobs for clients and community. i do want to applaud and thank you, commissioner courtney, for your comments about our youth because -i want to say, to our acting director of community benefits, that these kids already exist. you guys have been working with us to recruit young people from public housing developments all across the city and they have participated in fantastic programs like project-garden project, and you guys are aware

of the sensitivity that many of these kids face and the adversities they face as they grew up in neighborhoods that are very ratcheted-we've got invisible fences within our communities. so we want to make sure that you guys know these kids exist and what we would like to see is that direct pathway to careers. so over the last five years we have worked with students that have graduated from college and they are seeking jobs back in the city and not able to find them. so i would love to see how this improves over the next couple of years and i would love to see these kids actually mature into these full-time positions that you guys have. i appreciate your efforts and thank you very much. >> thank you. >> i got to hang out with ms. bryant yesterday for a little while but to those points, i agree with everyone and want to remain positive. that's really what it's about. it's about rejecting an activity that brings us all down. at the same time the conversation could've taken place a few years ago but

there's a lot of folks, hsa, in particular 9916 classification. we have an obligation to those folks to make sure when they enroll in these job-training programs or pre-partnership programs they actually have an opportunity to have meaningful work assignments with mentorship supervision and certification that leads them into the career pathway. so i thank you again because i know you guys are you unique affiliated organization by thank you again for all the great work you're doing unions don't do-we don't do barriers right? we don't do soft skills. right? that's a critical piece when you're talking about folks from underserved and underrepresented communities of those additional challenges. so what i have been asking and harlan has been actually green, we just talk about that field workforce piece. make sure that

folks don't diminish those roles, whether it's gardening, or general labor were any of the other entry-level trades that we make sure that the wage rates are appropriate, that the assignments and the tasks are appropriate these folks actually feel there in a position to not only have an opportunity but to take advantage of that opportunity which leads them into a career. >> absolutely. >> thank you. eloise patton followed by david george. >> good afternoon commissioned thank you for allowing me to speak before you this evening. this afternoon my name is eloise patton. i like to call myself a liaison extraordinary. a bayview hunters point. i want to encourage us as a group-because everybody in this room as a whole, and the outcome is determined on how the hole responds. i encourage the commission, i encourage the city departments to come together with community

organizations such as jackets, such as why cd, or community residents the ones that are in the audience, who may not be affiliated strongly with an organization, but stand up for what their opportunity is and the intended beneficiaries of mitigation to be able to take advantage of those opportunities. we must walk hand in hand with a labor, the community, and the commission if we are truly going to have substantive outcomes. our challenge is to ensure that a lot of times in the youth language to sell our projects and of the end of the day, what we were selling never shows up. that is why we are here. that's why we are asking that this commission continue to support us but to hold her hand and allow us to have the input and the value to move forward together with you as a team with a labor, with the

community, with the commission, because at the end of the day, the outcome is enhance neighborhood stabilization. the outcome is an economic engine that's allowing african-american [inaudible] to remain there. at the end of the day, everyone who lives in bayview because the community has changed, should have the opportunity that an asian weather latino weather african-american, to live in the community and you provide a service you should be able to live there. the union is the only way that we in the past have been able to compete in employment and workforce and will be the way we will be able to compete in the future. so i strongly encourage you to continue to partner with community labor and this commission. thank you. >> thank you. david george, followed by [inaudible]. [calling public comment cards.] >> my name is is david george.

i represent the [inaudible] hunters point organization. like she said, that was a great presentation you plan on hopefully i'll be able to talk to you afterwards. i may be able to benefit from that. for an organization that's currently over 500 members we just come before you to ask to keep the community informed of job opportunities that you guys are coming up with, the shipyard and everything that they've got going on down there and there's a lot of the job opportunities that come through we miss being informed about the more we don't have time to take advantage of them because were misinformed or not informed at all. missed opportunities that a lot of other people get to take advantage of. we ask not to be forgotten about. i am

also asking that you train the workforce that we've got with the skills that the union can provide because the union [inaudible] employed more community residents than any other city agency ever has. i hope you have a plan for - excuse me - ensuring the labor provides the training we need to have access to good training jobs in the community. every time i talk to the kids, and our community in our program, and asked them what they need, stop all this violence, [inaudible] first thing they say, jobs and housing. jobs and housing. jobs and housing. a lot of them coming up out of foster care, group homes incarceration and just left out there with no other alternative because they don't have jobs goes. they don't have felony records. this way or that way a

lot of times it's so easy to turn that way because that's all they know because of the community and everybody slamming doors in her face what ari also are you going to go back to them what you know? we ask do not forget. keep the opportunities coming to the neighborhood. get some nice training programs [inaudible] in our organization you don't forget about us. >> thank you. >> before you go, brother, everything you put down we picked up. one thing i'd like to see is it's not just the job. it's a career. i want a career. i want healthcare for my kid and retirement security. and i want to paid holiday once a while. so that's what i think we are supposed to be working towards. making sure because people can get jobs. i want a good job. thank you for being here. >> thank you. [calling public

comment cards.] >> good evening mr. kelly and all the commissioners. my name is deidra smith. as well as >> gail hampton. >> the presentation given by the deputy director, let's he will make that a reality. it was a great presentation for the bayview residents live here seeing our babies from a child to an adult to be employed by sf puc includes a scholarship with that from the puc would also be awesome. while they are

in college. mr. kelly and everyone present, let's not forget dr. espinal's goal. keep our residents engage come our contract of cbo's, local 261 connected with this project. we are looking forward to the promises being kept in stop [inaudible] breakfast lunch and dinner will also like to see the contract with theirs number of jobs allocated to district 10 mandated to district and as we have presently. so again we ask you to keep a pri involvement keep why cp involved. keep hunters point family involved. keep local 261 involved. he baby you involved. keep our community involved with this process it's happening and we thank you from the bayview residence. >> thank you. mr. brooks. >> good afternoon again commissioned eric brooks san francisco green party and local grassroots organization, our city. just want to first of all amplify on what has been said

by everybody else in the room including the presenters. apprenticeship and pre-apprenticeship, getting these things underway quickly and robust manner is really crucial. what was said by some members of the bayview community about noticing an outreach is crucial. if you are program some people don't know about the programs they can take part in the programs. we see that happen with federal programs all the time. then,-so definitely, take the ball and run with this and do it as aggressively as you can, and then i also want to ask you kick it up a notch. as one of the speakers said, we frequently put forward construction programs and other programs in the city of san francisco, always with a promise that they're not only going to be environmentally green but also produce jobs and a lot of times and local jobs a lot of times

those projects get built the local jobs don't happen. so now we are at a stage with something that i'll be speaking to you later here which is clean power sf, where we made a lot of promises about union jobs and local jobs, for that program. we saw a report come out of the san francisco local agency formation commission that shares around 10,000 jobs to come out of this program. your staff has done a really good job of getting the program underway, but we do not have a local buildout planet we do not have a jobs plan. we need that to be the next step. we are launching this program. it looks like were going to include all the customers in 2018. now it is time to sit down and do the hard work to dry out a workforce development plan. get with workforce development department of the environment, mayors office, and other departments there can be involved and sf puc offices

involved with the rolling out clean power sf, and make sure that now that we have gotten this thing past with the promises that were going to create jobs, we actually create those jobs in i don't see any reason why we can't have a really conference a plan for the entire buildout of clean power sf that bakes and pre-apprenticeship, partnership, union jobs. there's no reason that one person on the job on clean power sf should not be a member of the union. we need to get that plan on the table in the next few months and make sure that it is there to make the promises that we made on this program a reality. so then just once again to speak the item just presented, please, go forward and do it as aggressively and quickly as possible. >> thank you. those were comments on item 11 as well? i thought so. commissioners, any

other public comment on this item? yes, sir? welcome. >>[non-english speaker] >> thank you. any other public comment? thank you. we will go on to the consent calendar.

>> just to wrap up, first of all i do want to thank staff. martin, ellis, justine and yolanda for all the hard work. i appreciate that sometimes when i have conversations with managers in the agency it's not always that clear but i can assure you that i try my hardest to get elise my point across. i'm accused of drilling and stuff, but [laughing] i want to thank you harlan, on your leadership for this issue. i know it's dry. i want to appreciate my colleagues once again. from my heart, i believe that workforce development is sexy and i believe the community workforce is entitled and so we will continue have these conversations. cindy sharon,

dude, nice. so thank you, cindy. i'm excited to continue have these conversations because it's really really hard at work. juliet knows she tried so hard to work with me and it's just like i think sometimes we are missing the workforce development piece and everyone is trying to accommodate-everyone has been so good. everyone is doing their best but sometimes we are missing that piece i just want to say, i don't know there are pre-apprenticeship programs that are recognized by the department of labor. i do know that our partnership programs that we drafted you have the direct entry piece and i think what motivates me over and above the individuals who we can talk more about, what motivates me is the fact we have incredible amounts of work

coming up. not just with this agency, but within the city and most of it if not the vast majority of it is in the southeast. so i feel compelled more than you know to continue driving this proposal, driving this conversation forward and making sure we do everything single thing we can to provide opportunity. even if just one, or two, three guys at a time, we don't need those numbers to impress people. we need to help real folks develop his skills and the confidence which is a big piece of it. it's about providing the confidence. jackie, it's about those barriers to employment but giving these folks the confidence to walk onto a job site tooled up, ready to go with no fear. so i have a strong situation especially with you, we will get really really far we are relieved really fast and so thank you,

harlan. commissioner vietor for bringing your supporters today. >> thank you. they are all the people wearing green shirts. [laughing] okay, thank you. let's move onto the consent calendar. mdm. sec. >> item 9, consent calendar all matters listed hereunder constitute a consent calendar are considered to be routine by san francisco public utilities commission and will be acted upon by single vote of the commission that we know separate discussion of these arms unless a member of the commission or the public so request in which event the matter will be removed from the counter and considered as a separate item. >> thank you. commissioners any items you would like separated from the consent calendar? any items the public would like removed from the consent calendar? seeing none, can have a motion? >> so moved. >> second. >> all those in favor say, aye. [chorus of ayes.] opposed, nay. the consent calendar

passes. regular calendar, item 10 >> item 10 public hearing discussion and possible action to approve revised schedule of rates and charges for the san francisco public utilities commission power enterprise clean power as a program services within san francisco effective july 1, 2017. >> doesn't make sense to call this in the next item together? >> no. >> okay. >> commissioners, if workforce development is sexy i think i have the good fortune of having the least sexy item, rates and charges. eric chandler, cfo. the item before us is clean power generation rates starting 7-117 and that is fiscal year 18 rates starting in july. just a little bit of background. you know that the clean power

program serves about 75,000 customers we serve an average demand of about 60 mw. we also two different products, a green product and a super green product and you hear about our growth plan to go citywide in item number 11. just remind everybody, and we are talking out clean power, we are talking about electric generation. clean power sf customers to receive transmission and distribution to pg&e. the rate comparisons you will see a for the most part for generation service. so you will remember clean power sf rates are set in accordance with the city charter and the business practice policies that you adopted last year. you last took action on rates on december 8 and approved not to exceed methodology for clean power sf rates. the not to exceed methodology was a

function of the fact that clean power sf customers pay not only a generation charge to clean power sf, but they also pay to departing low changes to pg&e and that is the pci a, which you've heard a lot about the power charge in different adjustments, as well as the franchise fee. the basic idea for pricing our green product was to set clean power sf generation rates such that when you add the cost of the pci a and franchise fee, a customer would be paying for generation service about a quarter percent less than they would if they were receiving generation service from pg&e directly. so this is that concept expressed in formula. that is the pricing for the green product and the super green product had a two cent margin on top of that. so some of us, like myself think

more visually and here is a pictorial representation of that methodology. on the left of this chart you can see-this is the generation rate for someone who receives electric generation service from pg&e and on the right is a bar that represents clean power sf customers. you can see that the generation rate-the blue bars represent pg&e charges, and the light green bar which appears as a white bar in the presentation, is the clean power sf rates. what you can see when you compare the generation the big blue bar on the left to the green white bar on the right, clean power sf has a significant lower generation rate than pg&e. the key point to consider though is you have those departing low charges on top, the pci and franchise fee, which represent about a quarter of the total generation charge for clean

power sf customers. >> can ask you a quick question on that? how come the clean power generation rate is so much lower? >> that's because the policy the mission pursuit is to have a situation whereby customers, when you pay the cost of clean power generation, plus what you're forced to pay to be jenny for the departing low charges your bill would be slightly less a quarter percent less >> but the actual-because the way you have it the actual generation was lower not the generation plus the pci eight. the generation, plus. >> yes. i think you are referring to why are we able to have cheaper generation than pg&e >> right. >> so i believe the answer -vibrate you can correct me if i'm wrong, we are entering into recent contracts where we are able to get cheaper prices and so that kind of goes back to

whatever comments earlier, if you lock into contracts now, when you don't know with the pca-with amy increase the pca- you might have a fixed cost and as the price goes down, we would be unable to match pg&e's because the amount of their long-term contracts. they will expire, or they would actually pay out or about those contracts and they will [inaudible] so we talked a little about it you want to have open positions were you can always look for a newer contract or renewables because they're getting cheaper. >> right. >> this may be in the weeds but when you look on the bar on the left, the blue bar, the cost associated with a franchise fee with a previously procured power, are bundled into that. >> right. i'm just talk but the light green and white portion of the generation but i understand now because were getting cheaper generation because they're locked into higher price contracts. >> yes. exactly.

>> thank you. >> so that's the approach the commission took with setting rates initially for the program. since we set rates last year, pg&e has been busy they made a number of changes for the rates and charges and both barbara and make of kept you up to date and number those actions. pg&e rates-you can see her weave grafted out somewhere between, depending on customer class, 1.6%-3.6% increase in the generate. all things being equal, they have not made changes to any of the departing low charges. that would make our rates even more competitive. however, they also raised the pci eight. the departing low charge anywhere from 20-30%. that puts pressure if you're looking at our initial not to exceed methodology, puts pressure on our rates. in addition with

respect to their solar choice program which is there 100% renewable product, they cut margins on commercial customers significantly. so the three main changes that have happened in pg&e rates over the last year. so all of that goes to inform the staff proposal, which is to reduce the clean power sf green product generation rates and average about 4% overall to maintain competitive relationships with respect to comparable pg&e service and to lower the super green premium for commercial customers to 1.4 cents from two cents. the result is an erosion of our operating margin but we still generate sufficient margins to [inaudible] hetch hetchy enterprise pointer policy operating reserve. would just be not making a large deposit [inaudible]. reserve. so when you look at the staff proposal, presented in the format are presented previously,

here's what you have. you have on the left the generation -generation rate for a pg&e customer, and then the generation rate, plus the pci a charge for clean power sf residential customer. you can see there is a .25% difference the clean power sf customer pays .25% less unit rates. here is that same comparison over the various customer classes. you can see the same relationship will hold true not only for residential customers but small commercial, medium commercial, large commercial and industrial. what this chart represents is the premium for pg&e. sorry. i advanced to far.

we have a comparison of the premiums associated with a solar choice in the super green products. what you can see is the blue bar,-so we have all the cousins major customer classes on the x axis. we have the daughter poke a lot hour on the y-axis and then in a blue bar we have the premium associate with pg&e's solar choice. in the green bar your current super green premium for super green product and in the green bar, you of the proposed premium for super green product which is two cents for residents, 1.4 sent for all of our commercial customers. the approach is to make it as simple as possible to communicate about the super green program to commercial customers. >> can ask a question about this graph? so it looks like the super green is still more -the super green is more

expensive, still than pg&e solar choice? right? >> no. pg&e is blue. >> i see. the solar choice 2070 news pg&e? >> yes. >> is pretty much across the board at lower. >> yes. it's lower. then, finally when you put the proposed generation rates together and you look at a total bill which includes not just generation but also transmission and distribution you can see the comparison of pg&e customers with a clean power sf customer under existing rates and clean power sf customer under proposed rates , and you can see that under the proposed rates, there will be a clean power sf customer for both green and super green product, will pay slightly less than a pg&e customer. so i'm happy to answer any questions.

>> going back to slide 10, the super green rate premium versus pg&e solar choice. you say a rates premium. >> and that is the premium over the green products. to have the green rates, plus the premium is the cost. >> it's the super green >> however it's expressed as a premium above the cost of the green product. >> okay. is it good to be high or low? >> it's better to be lower than pg&e in terms of a competitive issue >> for the power you purchased or power that you put back into the grid. >> this is for power we sell to our clean power sf customers that's what percent renewable.

>> okay. a customer with solar is generating into the grade, they get paid the same price that they pay when they took the power from the grid? is that- >> good afternoon mike himes. you are referring specifically to net metering. without solar inject back into the grade. from the perspective of the customer, a higher rate is better, but i will caveat that with the general concept that you offset your energy usage. as long as you're getting a credit that's equivalent to what your charge you should be indifferent to whether your rate is going up or down. because the idea is yourself providing energy with solar panels. >> okay. it's like for like. >> psychologically might be [inaudible] right? >> i'm going to install that super installation and be a net

generator. i digress. >> questions? >> yes. so the pg&e rates decrease last year for commercial, did we see-you might not have these analytics-was there an increase in object rates? that's probably a question for barb. >> at the pg&e premium for commercial residential went down , that's the question? >> yes. was there impact? impact on the program because i think part of making the case here is that we want to stay competitive because if we don't we might lose customers. i'm just wondering if there's any data to support that >> that's absolutely correct. we did not-there was no apparent increase in opt out as a result of the several months were our customers with pain more on bills. that said, this

is a nascent program that is attempting to grow and we are communicating to our customers directly but the value proposition and it's almost always the first question they ask. it will be important particularly during the [inaudible] period. >> our goal is to when we roll out and bringing new people that affordability [inaudible] so we want to be mindful that if we are less expensive than pg&e that's when we want to be able to roll it out. also, what is important is that we basically talk about we get a stable rate . so not every couple months when pg&e has a rate increase, one of the things that we really want to push is that you have a stable rates. so that is why we didn't react to pg&e because

we know we were going to evaluate the rates in a couple months and then will make a determination. so we decided to make ours competitive and less expensive. >> i one last question. we probably will talk about it in the next item. i think it might be for mike, but you talked about how because we are reducing the cost of the rates, and the program, the operating margin would be decreased. i am just wondering, how that will affect from the long-term buildout plans and with a longer term forecast is. maybe that's tied in with a growth plan? >> the answer is, yes. with respect to sort of ultimately tying into their growth plan in our resource planning were, that's also underway, the rate reduction is reducing revenues

that we are putting towards financial reserves. you may recall that the commission adopted a business practice policy, which set two reserves. one is an operating reserve that's equivalent to three months of operating expenses projected operating expenses, and the others a rate stabilization reserve equivalent to 15% a program annual revenues. the idea with those reserves as we are in a competitive market here with clean power sf and this rate action is reflective of that. over time, the reserves will be there to help stabilize revenues and instances were we do need to reduce rates. but, you might recall, too, the different program goals we have we have a commitment to a balanced program design and we do need to balance out affordability

with investment, locally the buildout idea and it sort of an optimization exercise as we go. but, i do want to point out we are looking at the bar charts and you commented on the shorter green bar chart which represents our clean power sf rate it's really that rate, the full rate, that will be sore the power we have two builds new facilities and to make investments. it won't just be the little margin on top. the little margin will help us bring more expensive power supply into our portfolio and the bigger the margin the more we have the capacity to do that. but we can also develop more new projects, with everything that's below the outline. with a general rates. so i think as we go we will see that that's where the bulk of the new developments will occur, will be

in the construction of new projects either through a ppa, or on city owned property. speak great. thank you. >> i hope that answers your question? >> yes. speak great. thank you. >> i hope that answers your question? >> yes. >> i'm also getting a sense that part of the trade-off is to assure we can grow the base and while we may have a somewhat thinner margin that if that thinner margin is across more customers the total revenue than that revenue would increase as well. it's part of what is important about that trade-off is keeping ourselves competitive as we try to expand the number of customers in the end. >> i think that is right. keeping customers a really paramount to building a strong program, building up our reserves. now there are limits to our ability to change rates. we've a commitment to recovering cost to our rates. so

it something we have to keep in mind and that's also a-jan kelly referred to an open position so we can capitalize on new technological bloom in spring down the cost of energy in the market. >> yes. the other thing you point out is that bringing on more customers within margins also we are at greater risk with the exit fee the pci a, if it goes up high. then they show about a affordability. so that's what we have to be very careful and so when we go over the next presentation mike will get into more of that. >> okay. >> to the exit rate have to be approved? >> yes. it's approved >> i'm thinking they can keep on raising it. >> they are. but i must say

that in my mike, you can speak to it, were there with a lot of ccas, questioning their methodology and in fact, i believe now pg&e is sort of listening and so we're going to have meetings with them to talk about their methodology, their philosophy, and hopefully it will be fruitful. >> this item has been to the community advisory committee. as well is the rate fairness board? >> my understanding is yes. >> we have positive recommendations from both of those? >> i'm sorry it just been to the rate fairness board. >> just to the right fairness board and they recommended- >> they recommended adoption

per staff recommendation. >> okay. this is an action item. any additional questions or comments? >> i would like to move the item. >> second. >> any public comment? mr. brooks. >> good afternoon yet again commissioners. i will speak to the last caveat that your general manager made first and this is the issue of pg&e starting to negotiate about how with the pci is calculated. i am many others all across the state just spent the last several months in a workgroup at the california public utilities commission that was sponsored by southern cal. kind of guided by southern cal edison and sonoma clean power. they were kind of a good balance of both sides of this issue. we spent many months going over the problems that we

perceived with the pci a and kind of hearing from the utilities and what they want to do with it. i've got to tell you that, if you're going to negotiate with pg&e, i would highly recommend you get advocates like myself and get cal cca folks inside at the table because pg&e was showing signs during all the workshop of doing its best to push things in the wrong direction, and up with a new formula that's much like the one we've got now. which is very unpredictable and can swing all over the place. beware of that and encourage you to reach out to advocates and also reach out to the community choice programs across the state and get them involved in that process. on your item itself, i would say that just congratulations to your staff for yet again managing to get that price down below pg&e so they can't go out and market

against us using that as an excuse. then, i would say i really want to speak to something that was spoken to because commissioner vietor prided open and that is this issue that right now pg&e has really long-term renewable energy contracts that start buying a long time ago that's locked into. those contracts eventually will phase out. if you look at the state of illinois, what happened with -they've got over 1000 community choice programs, but what happen with those is they were not centered first of all on renewables. all they were about was different companies coming in to compete on fossil fuel energy prices. all of them were competing on a short-term basis on this very factor, which is that the utilities were stuck in long-term contracts and these new players were not. so after that those long-term contracts went away, guess what, a lot of those community choice programs went

under. so if we do not make sure we are building local resources that don't have a profit involved in we are generating our electricity-a for doing that it's can be a lot lower cost and will enable us to compete with pg&e when the big long-term tracks get phased out. that's another reason we really need to get focused now on vocal buildout and development. >> thank you. >> hello. chairman moran and commissioner. jeff holtzman from 350 sf. local group of 350 bay area. we support this proposal could ultimately, we need to stay both cheaper and cleaner than pg&e going forward. for both marketing purposes and i think moral purposes. where the city,

that's what were doing were doing it on purpose but it's important we ended up with rates higher than pg&e for a few months because of two factors. one, the huge pci a increase over the last couple of years. which we've just heard about and secondly, the lowering of pg&e's rate, which i believe is rate gaming. and i understand we think the rates are gonna go back up over the year. we strongly support in any case, this action to bring our rates back in line with where pg&e is. so we will maintain our marginal cheapness to commissioner vietor's earlier point, only 15% of the city is currently enrolled and so while we may not have seen large opt out, frankly, i don't think the fact this was higher even made huge amounts of news it's really only dealing with a small kind of niche in the city. if the whole city were rolled in, and this it happened i think it would've made bigger noses and so i think to your

staff's point, as we look forward over the next year, year and a half, going in the rest of the city into these programs, small things like fractions of a center really going to start to matter a lot more than they do for the 15% of go-getters who are really excited to get into this program. so we understand the rate stability is something which you guys are in strong support of and that will leave us potentially vulnerable to kind of rate gaming from corporation that could change the rates four times a year. that said, we appreciate your staff's hard work to basically react to the situation that we have and hope that once we get the whole city rolled in. we pass this transition phase, that the program will have a momentum that ensures its own kind of longevity and we won't need to worry about these kinds of competitive forces for now and over the next year, year and a half, i think were in a

critical period with a future of the plan is really up for grabs as to whether we can be economically attractive to the rest of the city at this time that we are telling them they are required to have the service , were taken action. so really appreciate that. thanks very much. >> thank you. >> jason freed executive officer [inaudible] i think your staffer to enact some work on putting together a difficult project of how to get prices to be just right. it's not an easy assignment to do in your staff does an excellent job with that. i will echo with the previous speakers have said about pci a being something we need to figure out and i want to agree with mr. brooks's statement about illinois and how they were just price competitive and that ended up costing a lot of pca programs. so get a b arch as being price-sensitive is important. i do think were

taking the right approach of having at one price per year and yes, that we periods of time will be higher or lower than pg&e, but that stable price is actually specially in the commercial side was very something requested. when i was going out with your staff or even your before your staff was something they were king and interested on. to comment on the commissioner vietor's comment about being a little bit higher for short periods, we've seen that occur in the project and from what i understand from their staff they not releasing opt outs when there is periods if your long periods of it you've got a discussion but when there's a short period in anderson price stability the road to accept a little bit of a price differential even being higher for short periods of time is acceptable most customers that's why you don't see the opto being what they are. the one thing a minute tell you except the rates as they are today and go ahead [inaudible] the one thing that could bump potentially is how your pricing super green but when you go back

to the slide and if you go to smg tv, you see the super green product is going down a little bit you know pg&e's rates are going-a little higher. you should look at how like i said might be a lot of money or not allow extra money but that's an area you can be getting extra money for buildout in the future. right now, your super green project program is little small until we launch citywide increase that enrollment were not talking a lot of money with that final comb there, on the very far right side of the page, shows were actually decreasing the cost of super green compared to because were tiny compared to the price of the base product you i know it's really easy to go out there and say it's two cents more kilowatt hour the way your pain right now for [inaudible]. perhaps the decoupling that a little bit insane instead of comparing it to the green product comparing it to the pg&e product you can increase your revenue a little bit in that category. so i would encourage you to look at her.

like i said except the rates today. thoughts on the coming change right now, but going into the future that might be an area where you want to play with it a little bit. put a little more time and thought into. the but how to get the money up there. not a lot of money. he enrollment my large hopefully future super green product enrollment that will mean some real money that could be used further build our projects. thank you. >> any other public comment? leave a motion in second. all those in favor say, aye. [chorus of ayes.] opposed, nay. the item carries. item 11. >> item 11 workshop discussion clean power sf growth plan. >> hello. however barbara hill assistant general manager for an event thank you for that action for clean power as of customers we are serving. now we will turn our focus to growing the program. program

director mike hines, will walk you through a set of slides that describe our recommendations on the growth plan. this is a discussion item. we are not looking for any action on this item today. at our next meeting were target our next mighty meeting april 25. we may have some action items to bring as a result of the discussion we will have today. those would be adjustments to our business practice policy that we are adopted back in december 2015, before we launch the program. we will also have a full written report for the meeting of the 25th today is a preview of that full report. we are looking for your feedback and we will have some action lately on the 25th as well. with that, let me turn the microphone over to mike hines. thank you.

>> good afternoon commissioners. mike hines, directive clean power sf. if i could have the slides, please. okay. so today is our third workshop on the clean power sf growth plan, and as barbara indicated, i will be providing you with our staff recommendations for expanding the clean power as a program throughout san francisco. i will review the purpose and approach to the growth plan, provide staff recommendations, for program growth, challenges we've identified to growth and a plan for management of those challenges. i will discuss some positive outcomes of work. so far with respect to the growth plan. our timeline and finally next steps. i did want to take a moment here at the outset because i know this is a timely

matter that clean power sf is committed to workforce development and the meeting today is very focused on growing the program, building our customer base, building our revenues, offering service citywide but as we grow, as we get over that hurdle of having customers and adding power supply to meet that demand, we believe that clean power sf will be a very powerful vehicle for investing in the community and creating clean energy jobs. you see some of the work we've done on the topic but i want you to know that's a conversation that we view as ongoing, and we hope to develop over time complementary programs to support that objective. we can discuss that further as we go but i want to let you know, right away, about that. you have seen all the slides together, but to quick

quickly recap, the purpose of our growth plan was to assess the best option and pathways for growing the program. here are goals and objectives affordability, competitive rates, reliable service, cleaner electricity alternatives that delivers more renewable energy. to invest the city's electric supply revenues locally. all while providing long-term rate and program financial stability. here are the program business practice policies adopted by the commission on december 8 the program business practice policies adopted by the commission on december 8, 2015 before we launch. as we will get into more later maintaining a balance program requires maintaining a flexible approach to growth. this chart you've seen before as well and it illustrates the areas we focused on as we develop our growth plan. since we started this work on last fall, we have

reviewed cca repertory compliance and reporting requirements we have in less electricity usage and customers in the city to better understand the economics of providing service. we analyze electricity market price trends , and the variability in pricing of renewable energy. we met with a number of power suppliers to better understand their interest in supplying our program in their company's approach to credit, and what kind of projects they have in their development pipeline. we met with financial institutions to understand their interest in providing financial services to clean power sf and ccas general. we assessed the requirements to become operationally ready to serve more than 300,000 accounts including examining the organizational structure and staffing the upper operating ccas to understand which function they prioritize

with internal staffing in which functions they outsource. we also worked internally with sf puc colleagues to understand program scaring her comments and thomas for developing new systems to support greater operational independence. finally, we conducted analysis to understand the total financial requirements and feasibility of growth. so that brings us to where we are today ready to provide you with recommendations for growing the program. with respect to the pace of growth, we are recommending we complete citywide enrollment by the end of fiscal year ending 2019. so that is two years. this is quite a bit faster than what we presented in our business plan in 2015, which projected citywide auto enrollment would be completed in 2022. so we are cutting that timeline by about half. this will take the

program from 75,000 accounts today to approximately 335,000 accounts and it will increase program revenues from approximately $30 million per year two, $240 million per year full-scale. ultimately, the program needs partners to grow. so the exact enrollment timeline with a pen on the results of our efforts to secure financing and power supplies. and our ability to meet the program facing policy criteria such as meeting or beating p&g any grids . the topic of our last discussion but just as when we launched lunch last year 70 summits like meeting or beating pg&e's rates can only be determined after we received bids for power site and of good sense of what pg&e's rates will be for the upcoming enrollment period. but our nonsense today indicates that it's possible. to support the financial

requirements for growth we propose issuing a request for proposals for third-party financial services. the services may include revolving letters of credit for power supply or term loan for working capital. a key purpose of this financial report will be to secure a power purchase transactions. we plan to approach acquiring financial services in a manner that avoids additional financial support from the power [inaudible]. we will issue this rfp by july of this year, 2017. you may recall a few months back, when we initiated the growth planning work emma we thought that the lockbox approach was key to financially securing the power supplies that are needed for growth. after speaking with a financial community, we now believe this can be done without recourse to the power enterprise through an internally administrative priority of payments from clean

power sf revenues. this would be a preferred approach because it would protect the power enterprise. it would avoid the complexity and cost of setting up a lockbox and give the department were control over its revenues. however we will continue to develop the lockbox as an option in case it becomes necessary after we receive bids from power suppliers in the financial community to support our program cost objectives. to support citywide demand for power, we propose to issue a power supply request for offers, our fo, we will seek bids to serve the programs demand at full-scale. citywide. this will allow us to determine whether there sufficient power supply at cost effective prices to expand and how quickly that expansion can be done. we will seek bids from both operating and to be constructed renewable

energy plans. we are also proposing to adopt a new target for renewable content of 50% in a green product portfolio by 2020. this goal would move california's rps target by 50% by 2030 up a decade in san francisco. we will issue this supply our fo in conjunction with a financing rfp just mentioned by july. so in the next couple of months. the exact enrollment timeline will depend on the results of our efforts to secure financing and power supplies and our ability to meet facing policy criteria, as mentioned. >> may ask a question on the supplies? is there any designation of where it would come from? will it be in

california? not restricted? >> we will be very specific about our criteria and what we did when we launched was we said only category one renewable resources will be eligible. the bucket one. we also stated preferences for projects that can be located in the nine bay area counties. those are definitions for local. we will do something similar where we state preference for category one resources in california, and even better, we be projects located in the bay area and/or san francisco. we may also invite bids for the category two resources to give ourselves flexibility so that we understand the options we have in front of us as we go forward.

to support all the operating and customer service needs of the program we will need to staff up in the near term we are proposing a focus staff additions on functions critical to success. portfolio management, power settlements, risk management, regulatory and legislative affairs, account management and customer service. all in all, we've identified 14.5 full-time equivalent positions that we would bring on starting now so that these positions can be available during our enrollment periods. this would bring a total clean power sf funded staff to 30 ftes. we plan to onboard the additional staff or the balance of our enrollment period to gain power sf positions 252 ftes. to put that in context mc has

about 40-45 ftes that it staffs. here is an organizational chart that shows our existing staffing levels. as you can see in this chart, stop supporting clean power sf is not just in the power enterprise. if a box under the egm level, those colored boxes, when those boxes is colored it indicates that clean power sf is funny new positions in that group if the box is gray or white on the screen clean power sf is relying on existing staffing levels. in those boxes. the slide shows staffing at full-scale and where we propose to add staff as we grow you

will see were projecting an additional 36.5 full-time equivalents bringing the total program staffing 252. the program functional areas and sf puc groups were staffed are to be added or identified in the color boxes that bright red outlines around them. those are the boxes were new positions will be created. the boxes that are gray indicate at this time we are planning using existing staffing levels but new positions in these areas maybe prevent post once the apartment is able to complete its bureau cost study for clean power sf. any questions? as we completed our growth plan we have identified key challenges to program success. made of what you highlighted in previous workshops. regulatory

challenges may be cheap among them and we spent some time talking just a moment ago about these. the pci a is ardently the greatest threat to our program success and viability today. that's because we don't have control over the pci a and how to-to provide a product that meets or beats pg&e service after accounting for the pca i requires flexibility keeping our cost as well as we can. to manage this risk were prioritizing regulatory advocacy for near-term staffing support. energy supply portfolio management also plays a key role in managing pci arrest. while it is prudent to lock in prices we can't overcommit long term because it will limit our ability to take advantage of technological change to reduce cost. since the pci a is pegged to market prices, it's important to be

able to take advantage of market price decreases. that could increase the pci eight. it's really important to understand that dynamic that the pci a is a calculated value based on existing market conditions. we need enough flexibility to be able to capitalize on existing market conditions but we don't need to have such an open position in the market that would create a vulnerability market prices go up. >> let me pause there for a moment. the supply management practices and policies that we have, are they currently under review deal with the kind of issues you're talking about there? >> we continually are reviewing and we did take a look at them for purposes of the growth plan in consideration

of amendments. we think as they are framed currently, they are good and sufficient they do speak to this issue about maintaining some amount of an open position. they also spoke -because they were framed when we launched the program-that when we launch we would lock in prices for multi-year period. we did that because we knew that we actually had this big open position which was the rest of the city and we could add customers. certainly, when we hit that ceiling of offering service citywide it becomes much more important to manage that regularly. i have mentioned in the past that we are working on integrated resource plan that work is underway and will have a draft report in the summer, june, july timeline to share with you. that will be one of the key focuses of that plan and

report will be looking at her portfolio and portfolio management practices, looking long-term on how we construct the most cost effective portfolio possible. >> the growth [inaudible] does change the risk risk profile significant not only do not have the enrollment buffer so you can enroll more people that [inaudible] you also end up with more customers your obligations to any of our contracts that you need to fulfill. certainly, you don't want to get an imposition that pg&e may find itself in now where they've long-term power supply contracts in the market changes on you. you suddenly have a competitor like us and it ties your hands. is that picture changes, and bizarre stakes in the game are higher, we will have to have a very well thought out risk management plan for our procurement function.

>> absolutely. it will be critical to success which is why we are part ties in it in our staffing plan to really beef up that part of our team. >> okay. yes, don't-don't be stingy on that one. >> if you could bring the slides back up? we know there are also financial challenges to growth. expanding clean power sf citywide is going to require significant additional financial resources. through our work we've estimated 40-$60 million of collateral requirements to support our power purchase transactions you may recall we established a letter of credit. letters of

credit, to support our initial program contracts. that's what i'm referring to here there are additional either letters of credit or other forms of credit support to grow the program. we've estimated $80 million to fully fund our working capital and rate stabilization reserves. one thing that we learned through this work, we just got through the last workshop, third-party financing capacity is much more available than we previously thought. so the financing rfp we intend to issue in the next couple of months will give us more specific information on what financial institutions will provide and at what cost. early indications are that we can acquire the capacity we need. ultimately, this will determine how much power purchasing may be supported in the near-term.

working capital and reserves may also be supported by third-party initially, but we are projecting our financial reserves can be funded through program rates in the next several years. we will need to keep a close eye on the pci a however is any significant increases will road margins we would otherwise used to sell fund our reserves. as you will recall, one of the distinguishing features of our program is our commitment to using bucket one renewable resources. which are considered the highest quality renewable energy products. related challenge we face is whether bucket one noble resource will be available in the quantities we seek to support citywide growth in the near-term. ultimately, we do not believe it's a question of if we can acquire the renewable energy we need. it is more a question of when and at what cost. to the

extent the energy from-to accent energy from operating plants is not available in the quantities or price we need to remain competitive, we can contract to develop new projects , new construction, and time are customer enrollments with the online dates of these plants. we also need to remain flexible in how we source our renewable energy from operating plants from new plants, potentially from other products like the category two, bucket two, i refer to below before. our staffing levels are sized to support a 60 mw program is 75,000 accounts. we will need additional support to successfully grow and operate a citywide program of 400 mw and over 300,000 accounts. as we discussed earlier were

proposing to focus near-term staffing additions on functions critical to success. recognizing that it will take some time to bring staff on board, we will likely need to utilize professional service contractors to oppose cover key functions until we can staff all. so while our work i do my challenges we must overcome in growing clean power sf, into a successful new enterprise, there are several positive storylines here as well. first, growing clean power sf will set san francisco on a path to meet its clean energy goes. in his first year of operation, clean power sf provided 40% renewable energy content it's green product exceeding the 35% target we had established. today we are proposing we set a target of 50% renewable energy content in our default green product offering by 2020. as you will

see from this chart, which compares pg&e and clean power sf's green product, in 2016, -2020, and 2030, we are planning to eliminate ghd from electric supply by 2030. this will greatly work clean energy jobs. we are creating jobs to plan and operate the program. ultimately we seen clean power sf positions funded growing from 15.5, 252 full-scale as i refer to before. we will also create new jobs in the construction and operation of renewable energy plants. we've estimated a range of jobs here. you will see where juxtaposing current program size current

program size phase 12 full-scale jobs range but reflecting new construction of about 20-80% of our renewable energy requirements. so the idea here is that to me meet our demand we will sign a contract to build a new project in the new project will create jobs. what we are projecting here at full-scale is 1365 to 5462. again, that reflects that 20-80% more we contract for new construction the more jobs we will create. more jobs-we will create more jobs to additional programming and i alluded to this at the outset of the meeting. it is difficult to quantify these jobs but we will continue to report to you on job estimates as we seek your approval to launch the complementary program and i'm referring to things like energy

efficiency services, demand response, programs focused on the community. last but not least, will continue to provide electricity is stable and competitively priced rates which was just reinforced by your action. here is our proposed implementation timeline. you will see two year budget cycle identified at the top of this chart about to enter the second year of the current two-year cycle with availment of the next two-year budget coming up in the fall. in the next route you'll see we are proposing a mix major auto enrollment will be in major maze the best time to launch an

auto enrollment because less than residential users use less energy than i do in fall and winter that means there bulls will be lowered. they are less likely to create-less likely to create the impression that clean power sf is causing these higher bills. i can speak from experience, that we did do an enrollment of residential customers in november will we have very low opt out rates, we got a lot of calls and questions about this issue we had to talk folks through it. so we think that the may timeline is optimal from residential perspective. from a commercial perspective they pay more rates and seasonal rates tend to go up in the summer. commercial customers are also more savvy. pay close attention to their bills. so it's not a bad time to enroll them because it also hopes our program cash flows. we will also need this time we've identified here to secure our financing finalize her integrated resource plan

and conduct our power supply procurement which are addressed in the next two rows, or next three rows. i mentioned this before but the irp will analyze options for meeting our electricity supply requirements over the long-term. we will look at specific projects to clean power sf as part of that effort. then you will see we identified at times for staffing bringing on staffing and additional professional services, support which is the upright green segment, and finally, we've also i defy time to potentially acquire office space because adding a 36 new employees is a lot. we will be assessing the need to do that as we go. >> [inaudible] >> good question it were making up for the other half of the employee we funded to create an even number there at full-scale. we drew 15.5 today and with that indicates is that

a position is co-funded between clean power sf and our public utility hetch hetchy power services. we realize it sort of heart to find a half person out there. so this slide identifies the systems and back office functions development as you know, we see professional services from cal-pine they provide call center and data management and billing services. we currently receive the services under a three-year contract with two, three year options to extend. you will see the current term expires in the fall of 2018 at which time we have an opportunity to extend for another three years. the final two rows of this chart address the development program support systems demand for systems, energy data system

enhancements to accommodate much larger amounts of energy data and customer usage data we will need to handle and analyze. and billing system and customer services systems development. i did want to point out that cal pine brings those things to the table through that contract we have with them. we utilize their customer services management system, and they also are experts in the billing arrangement for the exchange of data, with pg&e that's required under the clean power sf model. you may recall that under clean power sf pg nini continue to issues the bills sf puc will not issue the bills for clean power sf it requires coordination and data systems that can speak to pg&e systems. that's one of the items we have a timeline to develop so we can do-have an independent program over time. okay, so next steps.

as barbara mentioned, at the outset, moving forward will submit a written report on april 25. we are also will have before you on the meeting of the 25th a potential commission action to adopt a target of 50% renewable energy content in a green product portfolio by 2020. this would come in the form of a revised power content place policy within that body policies adopted in 2015. last but not least, don't forget to sign up for clean power sf good i want to make sure that jason was not the one that said that this time. [laughing] i'm happy to take any of the questions you might have for me. thank you. >> thank you. commissioners? commissioner vietor

>> i just really want to thank you i'm thrilled this is being accelerated at this rate and the idea that 400 mw and 330 households by 2019 will be receiving clean power energy is thrilling. i'm just very pleased about that and so thank you. >> there was i think the last workshop we had there was a chart that showed revenue growth by enterprise and it showed it buildout this would be the largest enterprise we have i believe >> mix. i think water is first. >> water is bigger? >> okay. >> [inaudible] [laughing] a major part of our business and one that is different than a lot of parts of our business, there's not a whole lot of asset

associated with it. so it's contracts and financial arrangements and a lot of paper that seeks to manage risk and to that end, i'm given some comfort by knowing mr. sandler has a very skeptical and careful view oh all this material. i say that serious. it's important that, as we go forward, that because the stakes get higher and because the risks get high, but we also need to make sure that our scrutiny and the quality of terms of how we mitigate risk also grows with that. so, thank you all. >> yes. i just want to add that like michael-we all really feel that customers are number one and we have to make sure

that we-when we bring them and we keep them. so that's why we want to make sure we have the resources so that we can up excellent customer service. i think that's more important than buildout because he buildout people start leaving your big trouble. but i would want to say i want to thank my michael and barbara and all the people behind this and even advocates for making this happen. if i reflect when i first started, this is one of the big challenges that was facing us and to get to a point where we will roll it out citywide, i think it's kind of disappointing is that when we were not going to roll it out it was a crowd of people there and people were yelling and now were rolling out citywide it is quiet. but, anyway i just want to thank the commission as well

brother leadership, challenging us, because i think all of that talk about jobs and talking about affordability and opt out, you were very careful about that and handling the risk, and you just, green, green, green, go, go, go and [inaudible] but it's been really challenging and i think we responded well and i just want to thank everybody. thank you >> quiet is good >> yes. quiet is good. >> commissioners, and the other- >> i shut out to [inaudible] thank you for reaching out on the piece you will know i focus on and i really appreciate that. thank you. >> okay, thank you. public comments. mr. brooks.

>> good afternoon one more time commissioner richard eric brooks. san francisco clean energy advocates san francisco green party and local grassroots organization our city. again, starting with the last comments, the key in your staff showed it to you is that if working to keep providing bucket one renewable resources, the way we are doing out to customers, we have to build or we won't be able to do it and worse than that, those products will be because of higher demand and not higher supplies, will become more expensive and make our program more expensive compared to pg&e. so the build is actually critical to retaining customers because it's the only way to continue to give them the clean is energy at the best price. that is yet again why want to repeat besides the other recent i stated earlier today, we need a conference of citywide buildout plan. not just it is progress what your staff showed you,

that they are going to build projects to meet new customers coming in. that makes sense and that is good, but it's still better to have a citywide and countywide plan. on a couple of other points, the 50% green target, i don't understand why that needs to be in 2020. most of the community choice programs, right now, or offering 50% green to their customers. for us to wait until 2022 do that seems like way too long of a wait. then, advocates continue to believe that all the customers can be rolled in very soon and all of them in one or two [inaudible] in 2008 yes, it's good your staff is accelerated this a lot. that's work on accelerating it more, and then just want to highlight some things going on in sacramento for you and legislative staff should be tipped off to this sb-six ames

stephen bradford is a typo on community choice that would give cpuc beat you power over integrated resource plans of all-day community chase choice programs, must be stopped and is now going to both the energy and environmental quality committees on the 18th and 19th. so we need to be on top of that next week. ab-79, is going to make us track and other utilities track hourly greenhouse gases from unspecified sources. that's a scary thing that's going to be a problem. assembly member living supposedly is bringing at four. the last thing i want to make sure to get on your radar screen is the san francisco laugh go which is been helpful in moving this program forward and dedicating staff and resources has been re-upped this year and that means we need you to extend

your contract your mo you with the laugh-go so we can continue that fruitful relationship. thanks. >> thank you. welcome. >> hello. my name is melissa you are with the sierra club and would first like to complement staff on their hard work and is a san francisco resident it's exciting to hear that rates may once again be competitive and i can appreciate your hard work and i can appreciate your careful consideration for every step moving for, but i would like to see this program moving faster in many municipalities around the bay area and the state have already surpassed us in the progression of community choice program. while we should be moving forward faster we also need to take into generation local generation is mentioned while signing onto contracts

and making sure we don't lock ourselves out of local benefits to long-term contracts, i would also like to add that thinking through how to integrate local resources in the short-term and long-term is a crucial aspect to think about for the integrated resource management plan. integrated resource plan. and to echo what eric said, i would also like to see an extension to sf puc's mo you with laugh cope and appreciate the opportunity to comments. >> thank you. [calling public comment cards.]. >> thank you president moran and commissioners. i want to thank staff met with us last week to kinda preview this for us. we are not surprised and that helps inform our comments. super, super supportive. i mean what could be said after so much struggle that we are

looking at full citywide enrollments in front of us. really think [inaudible] for your continued attention and support for everyone we've come to a meeting ever and watching this three years ago ungrateful your for your attendance ultimately seen as number of jobs, real jobs that your staff, not a third-party contractor not us, is proposing , me that is black and we at least this version is black and white. i'm pretty excited to see those numbers. also, the idea would be raising renewable energy percentage, that is great. we need to be heading to 100 as quickly as possible, increasing staffing which will really increase our capacity to execute the kinds of programs and innovative services that we kind of want to see clean power sf eventually comprise. i would be remiss in my role if i do not try to push you a little bit further. i would like to point

out that your staff put ford and opt out goal which we had just trounced. now, it looks like an overly conservative goal . also, that we put out a rollout plan which we thought was way too conservative that was knocking at folks all getting into the plan until 2022 and now we see it's totally financially reasonable and logistically sound to get that done sooner. my hope is that with a 50% renewable by 2020 and rolling people in by the end of 2019 are similarly conservative goals that we will find ourselves able to blow past . certainly, the peninsula and silicon valley which were not glimmers in the iva policymaker we started even this phase a few years ago are now rolling in their whole service territory, and certainly, in the scheme of climate change delaying one more year is not

going to result in [inaudible] falling into the ocean but it's important to keep in mind were already two years in to launch at the time were talking about launching the next phase. that's kind of a two-year pause from launch to continuance and we think in recognition of their having been a two-year pause we really do need to get rest of the city rolled out as quickly as logistically visible. we think i'll be true trenches over the course of 2018 assuming the procurement can support that. lastly, without --i don't think we would be able to celebrate the spirit the report was critical to moving the program along and would like the mo you to be extended. thank you very much. >> thank you. mr. free. spears jason treat executive officer of lascaux. once again has made a comment done excellent work. bring to you a very good plan i think as you have mentioned

commissioner moran, to take a more conservative approach. so this the most conservative approach right now my hope is when we get the bids in july when we issue the bids for july and get back not sure the exact timeline is for when we get those kids back and review it, we will be able to see look at and say, maybe we can go a little quicker. maybe we can bring those folks looking at coming in, q3, q4 18-19 bring them inserted i would encourage you to say, staff do everything you can to bring all customers in as quickly as you can because having full enrollment that's what we get to the really fun and good stuff to know commissioner 21 susie which is more jobs created. that means getting as much green energy as we can. that's when were serving the entire city no longer having to people to say your group is not until later if you want to you can sign up now. everyone can sign up and everyone can be part of the program. when the ways you could potentially do this and i get the concept that the number

of customers you're bringing in at one time potentially over on the system and you might need to bring it into groups but having those two groups lineup when on top of the other, having it be so as soon as you wrapping up the opt out phase for the first group immediately start in the opt out phase for the second group is have it be like instead of a year length between them having it be a few days between when you're actually bringing in group 2 and group 3 is the system can handle the number of customers. that's the one in san francisco does have at the other ccas not to face the pure volume of individual account holders. because we have so many small energy users it takes a lot more to get the same amount of energy takes a lot more customers to get to that same point. i would encourage you to really push staff and see if we can do it we prepared to go ahead and move as quickly as we can as fast as we can and really give the staff to ability to get once again that's all contingent on what those

bids actually come back. if those bids come back and say we can do it all and 2018 by all means we should be doing it all and 28 and let's not handicap ourselves. we need to now way to do the next to do it all in 2018 if at all possible. thank you. >> thank you. any other public comment but it certainlyi think

very appropriate for the commission-- jen was published on thursday and it's not lost on me the next day the governor decided was a good idea to assume the drought was over as well. following our leader. >> once again, we leave. >> a quick aside on that. with that released language for trailer bill on conservation as a way of life and the quick read of that did raise some concerns for us. will be looking at closely the next 12 days on the for the of the state water board to put in place certain restrictions and requirements for water users which potentially have some effect on water rates as well.

will take a hard look at that to make sure they're not overreaching on that count but i recommend the commission adopted resolution lifting the last restriction. >> okay. thank you. this is a public hearing. is there any public testimony? seeing none, the hearing will be close. commissioners, any comments or questions? >> i think it needs a motion >> you may do that. anna needs a second >> so moved. >> second. b thank you. >> thank you. all those in favor say, aye. [chorus of ayes.] opposed, nay. item 12 carries. thank you. item 13 >> item 13 approve amendment number 32 agreement number cs-225 are. seismic upgrade

authorize the general manager execute this amendment the time extension up to six months. >> commissioners? february 13, 14 and 15?'s behalf that's fine with me. [inaudible] >> just item 13 is the one you called. or did you call or three? >> we can call the good would you like to proceed with all three at once? >> no. >> item 13 any questions? comments? public comments? >> >> so moved. >> second. it >> all those in favor say, aye. [chorus of ayes.] opposed, nay. the item carries. item 14 >> at 14 approve amendment number 12 agreement number cs ivan 320 authorize the general manager to execute this amendment increase in the grant agreement by $380,000 the time

extension of two years. >> like to move to table the item. i do not get information i was looking for last week. >> should be ready for the next meeting? >> i would assume. >> okay. we will table out to the next meeting. item 15. >> item 15, approve modification number 15 to contract number w-2-2750- i'm sorry - 2705 with a time extension of 664 consecutive calendar days. >> commissioners, questions? do i have a motion? >> so moved. >> second. >> any public comment? all those in favor say, aye. [chorus of ayes.] opposed, nay. item 15 carries. mme. sec.,

call the closed session >> close session item 18 existing litigation authorizing agreement between george birmingham versus city and county of san francisco. item 19 through 24 will not be hurt today. >> thank you. any public comment on the item to be heard in closed session? seeing none, can have a motion whether to assert attorney-client privilege. >> so moved. >> second. >> all those in favor say, aye. [c