>> good afternoon. my name is catherine baits. i'm a former project manager at a tech company and a resident of the cast co. ten years ago as an intern, i was tasked with researching improvements we could make to the election system, and in the last ten years, not a lot has changed. this is an incredible opportunity. i really urge you to support fully funding the 40s million to -- $4 million to get this going. >> thank you. come on up. >> thank you. i'm sure you're getting hungry and tired. my name is carly. i'm from the central sunset district, and i'm a volunteer with the california clean money campaign. i think it's a profound and fundamental responsibility of every city, county, state, and our national governmental bodies to make sure that every vote cast is accurately counted. that's at risk because of new technologies, and the response

is new technologies. but new means cutting edge means i don't know what's going to happen, all kind of contingency plans. the longer it takes for us to get started, the longer it will take to secure our electronic system and also the more it's going to cost. looking backward at all the public works projects, we need to do this. we need to do this now. san francisco is uniquely equipped to make this happen. >> great. thank you very much. come on down. >> hi. i'm less other -- lisa hill and i'm a volunteer. i got involved in this because i'm concerned as long as -- along with a lot of my constituents and other friends and just about the corruption of our election system and i am worried a bit about the privacy of corporations coming into count our elections. i love the idea of the open source ballot system and he

encourage and hope you'll support the full funding of the program. thank you so much. >> okay. we've got ace washington, chris hamilton and robert donaldson. i think this is amy -- i can't pronounce the last name. i'm sorry. you're going to have to announce yourself. >> i'm ann harvey. i'm a volunteer with the california clean money campaign and i've been concerned since vote counting was turned over to private for profit corporations with secret systems. i'm really glad you're considering this and please fund it fully. >> thank you. next speaker. >> hi. i'm pamela smith and a voter and mom from san francisco. i support funding for open source for secure and transparent elections. i very much appreciate the work that you all do here. thank you. >> next speaker.

>> donna, i'm a former state mediator and we run public sector elections with pen and paper and never had interference from outside entities. so i urge you to fund this. thank you. >> next speaker. >> hi. i'm david schmidt. i'm a volunteer with the california clean money campaign. i want to say that this is really an urgent matter of ballot security, election security, and national security. so please vote to fully fund the open source paper ballot system. thank you. >> all right. thank you, next speaker. >> don curry. i'm a california clean money volunteer. i'm up here from menlo park. this is just a great idea. go for this. >> all right. thank you. >> next speaker, please. >> hi. i'm emily levy, the director of

communications for americans united for democracy, integrity, and transparency in elections. we're a national group doing work on trying to make elections more transparent, have more integrity and with as much public oversight as pop. i'm heartenedded by the support that i hear from so many people today for open source in san francisco. i'm thrilled of that the city that i grew up in looking at taking the lead on this issue, and i want to support the idea of fully allocating the funds for this project. thank you very much. >> great. thank you. next speaker. >> i'm jennifer haggy, a volunteer with the california clean money campaign. i urge you to support full funding of $4 million for the open source paper ballot voting systems. thanks. >> thank you. next speaker. >> my name is chris hamilton, i'm a volunteer with the california clean money campaign. over here this morning from the

are you februarthe -- republic . >> i'm a member of the open source voting advisory committee to the elections commissions. i urge you to appropriate the $4 million we asked the election commission to ask you for. i think san francisco can be a leader in the nation here and it can succeed where travis county failed by building this project in potions, which is what travis county did not try to do. they abandoned their project because they got rfp submissions for what they tried to commission but not all of them. they threw in the towel. we can build a vote by mail system first. i wanted to mention, as some commenters have mentioned before

me, there are already open source election related systems in production in other states, new hampshire has a system called prime three they use. and colorado had a system built this last year called colorado to outsidity their elections. we already have software for voting for making ballots and we have it for auditing elections. we need the missing middle. that's what i urge san francisco to build. thank you. >> thank you. next speaker. >> hello. my name is mary ryan. i'm a san francisco native and a volunteer with the california clean money campaign. i want to thank you for taking the time this morning to hear about this urgent issue, central to our democracy and he urge you to fully -- i urge you to fully fund an open source paper ballot voting system. thank you. >> thank you. next speaker. >> my name is amy

[indiscernible] here from san francisco. i'm here with the california clean money campaign. my heroes. we need for revolutionary san francisco to take lead to include full funding for open source voting along with paper ballots. open source voting brings the accountable transparency necessary for secure voting system. transparency and secure. our democracy is sacred, and i've seen a lot of reason for concern. we need to protect our democracy. thank you. >> thank you. next speaker. >> ace on the case washington here. i just happened to indirectly fall into city hall and i seen the agenda. i'm here to support open source voting because we -- everybody is getting up here saying this is the city that knows how, a city that's the first and all that. i'm saying this as a parallel. i'm supporting it, but i'm also

going to be here at the budget skatole find out if the city knows how, about what a person that looks like me, a black man in this $10.1 billion budget. you all ask for a little bit. where is it on the budget item anybody that's on the finance committee and that is my primary objective this year is to show a parallel where the city that knows how, but it don't care about people that look like me. you supervisor, although you're the president, i mean, not the president, but you're on that finance committee. my primary objective this year, y'all, is find an item line because may you rest and peace and we've got mark in there. he's smart, but his term is very, very short. i want to know who is in control right here in the city by the bay in san francisco because pretty soon you're going to have to hear what i've got to say was transparency is my objective. when i do my tv shows, it's all about transparency from the room

200 down to the janitor's room here in city hall, y'all, where i call it silly hall. let this be a message to everybody. ace, i'm going to be there, and i'm supporting this because they need to have transparency on elections. see, i go ba way, way back when they had general elections and the district elections and who else know what they're going to do next. but this is a city that is gone without be being accountable. who is in control of the city that's watching everything? there's nobody. my name is ace, and i -- >> thank you. next speaker, please. >> thank you, my name is roger donaldson i'm here as myself, but i'm also on the san francisco election commission.

i think that you've heard a lot of things and i don't want to repeat them, but i want to highlight certain things. one is the slalom report raised issues and i think that raised the prospect of risk whereas buying this as a proprietary system may reduce the risk, but the risk is to democracy. what we -- so getting the system is something that will improve democracy and the integrity of the election and give us more control and transparency. it's very much worth the investment. furthermore, we heard from the director and that we -- that other such projects have shown -- they're similar projects. furthermore, things like this kind of open source project happened all the time in silicon valley. san francisco is a place this should happen. also, in addition, i want to point out that in 2015, there were rfis put out by the department department of electi.

we got many responses from interested vendors. there's a lot of interest behind this, but there needs to be a commitment to getting it done. there need to be enough of a financial commitment to make sure we maintain momentum. this is fiscally responsible. it is in the long run. this will pay back to san francisco as well as to our democracy. the biggest threat is delay. simply, committing to another $300,000 is a commitment to that delay and that will make this unsuccessful. i would ask you, supervisors, please, what we need is courage and leadership. this is something that may not pay back in the immediate time or in your next election, but it shows your commitment to voting -- >> thank you. next speaker, please. >> hello. i'm a resident of the city, member of clean money campaign

as well as invisible sf. i want to call and thank the supervisors for approving in 2014 the $300,000 in supporting the initial study on the open source ballot. this is incredibly important. first meeting i went to, the clean money campaign, they talked about ohio and ohio had debold do the machines. the ceo promised to deliver the 2004 election to the republican party in the state of ohio. there's some rumors that, you know, voters came out of the voting booth voting democrat, and they looked at their battle- ballot and it said republican. they had to go back and change t

it's a question of how many voters didn't notice that of. there hasn't been any convictions because the issue is the system is closed source. so there's nowhere where anybody can check the code. this open source is incredibly important because we can have any programmer check the back code and see that the system is honest, fair, and integral. so, again, i urge the supervisors to approve the $4 million so this is a no-brainer. for $4 million, we're getting $12 million of product. so i would do that any day if somebody came up to me. so i appreciate your time. thank you, supervisors. >> thank you. are there any other members of the public that would like to speak? i'm going to close public comment. all right. public comment is closed. colleagues, i don't know if there's any remarks.

supervisor, stefani. >> thank you, chair. i want to thank everyone for coming out today and for their advocacy on this extremely important issue and for the e-mails i received as well. i agree this is essential to protect our democracy. a learned a great deal from this hearing today and i want to thank you supervisor cohen for shedding light on this issue of how we can make this a reality. i look forward to taking a deeper dive on this and looking how we can partner with our regional -- with counties as well. so i think there's a lot to be learned, a lot more to be learned. it's very complex. so i will be following up with our departments and like i said, this is an extremely important topic, and i do thank everyone for their advocacy on it. it's very necessary. thank you. >> thank you very much. i want to thank everyone that came out to participate in this hearing and thank you for turning out support to the clean money campaign. i think it was very thoughtful

and informative. i think this was a good first step for us to continue the momentum and continue to move forward. so with that colleagues, i'm going to make a motion to file this hearing as heard and as more debate and discussion comes up, we will schedule follow-ups to this particular discussion. all right? thank you very much. is there any other business before this body. >> no further business. >> all right. thank you. okay. don't go too far. i want to gavel down for the next meeting. i would like to call the budget and finance committee, the full committee. if you could exit the chamber quietly, we have more business to take care of. thank you for coming.

madam clerk, can you make announcements for this committee meeting? >> please silence cell phones and electronic devices, completed speaker cards and copies of documents to be included as part of the file submitted to the clerk. thank you. >> thank you very much for powering through. this should be a simple committee meeting. we just have one item. i want to recognize supervisor sheehy has joined us and supervisor yee will you joining us shortly. >> item one, resolution concurring with the controller's certification that services previously approved can be performed a private contractor for a lower cost than similar worked performed by city and county employees. >> excellent. we've got michelle from the controller's office to present to us today.

>> good afternoon. i'm from the controller's office. i'm going to speak briefly to the proposition j before you. they were as stated previously approveapproved and performed by contractors, continued to be more cost effective than at the same services were provided by city workers. in the resolution before you, there are services for contracts related to the san francisco municipal transportation agency, the airport, the port, and the public utilities commission. i'd be happy to answer any questions. >> well, thank you. okay. well, this is a certification that identifies a number of areas where private contractors can do some of our city work for a lower cost than city and county employees. this needless to say is always an ongoing annual controversial issue.

this year's prop j certifications include contracts at the airport, at mta, the port, and the puc. is there anymore detail that you could give us? >> there's no change in the services as approved by this committee in prior years. it's the same on going services and contracts. there are six different kinds of services for the sfmta, four for the airport, two for the port, and one for the puc. >> i'm sorry. just let me interject here. can you talk about the cost savings? >> sure. >> thank you. >> so the analysis shows -- compares the services that are provided through the contract with what it would cost to have similar city staff provide the same service, do the same work. in all of these prop js you'll see there's a certification letter from the controller showing the savings to perform these as contracted services in

each of these cases. >> all right. thank you very much. i just want to also -- the record to reflect that we haven't heard from anyone of our labor partners or labor leaders that would be against or speaking against this certification. so colleagues, i think i just want the record to reflect that. if there are no questions from my colleagues -- thank you very much for your presentation. there's no analyst report on this item. let's go to public comment if there's a member of the public that would like to comment on item 1. seeing none, public comment is closed. supervisor fewer. >> yes. i just have one question. i notice in the report that, in this report here, it says that there is an emergency, i guess, situation justifying purchase of award of a contract. so what constitutes an emergency, we always have a deficit. i just want a brief explanation. >> i can tell you that the language is standard in the resolution.

it's been this way for many years. i don't know exactly when it started. i believe that -- well, i can get you more information if you would like about when that started in this particular language came into being in the resolution. i don't want to speculate about that. >> oh, okay. then next question was, did you ever have a discussion about if we might -- if these departments might look at not contracting this work out, and what it might take for us to actually employ these people into these jobs as the majority of these jobs are entry level positions. >> that, as far as this analysis goes, the controller's office does not look at that. we just compare the contract cost -- what it would cast for the city. the mayor's office might want to speak with that. that's not within the scope of what we provide in our analysis.

>> all right. colleagues, seeing that there are no other questions and members on the roster, may i make a recommendation that we approve this with a positive recommendation? >> madam chair, can we -- excuse me. can we have public comment. >> i did take public comment. >> my apologize. >> i took and there was none. that's why you missed it. i need a second to approve this motion. seconded by supervisor yee. is there any other business before us. >> there's no other business. >> thank you, ladies and gentlemen. we are adjourned. .

>> i'd like to call this meeting of the san francisco public utilities commission to order. it's tuesday, may 8, and i just wanted to start with a couple of announcements. first, for those of you that did not hear, our former colleague and counselor noreen ambrose was nominated to the ethics commission. on behalf of all of us, obviously, congratulations to her. our general manager now in the house. pretty good stalling, right? and then to our colleagues at

sfgtv for being recognized for the sixth year in a row, for being nominated for a california emmy, working behind the scenes for making us look really, really good, right, harlan. i think they'll find out june 2nd to see if they won any of those awards. and finally, thank you, donna for sending me this beautiful invitation, and yuljulia ellisd her team for this award. this is for the 2017 golden pride awards. that concludes my announcements. madam secretary, will you please read the roll. [roll call] >> clerk: we have a quorum.

>> thank you. next item, approval of the meeting minutes of april 24, 2018. colleagues? >> i'd like to move approval of the minutes. >> second that. >> it's been moved and seconded. is there any public comment on the meeting minutes from april 24, 2018? hearing none, it's closed. i'll call for a vote. all those in favor, signify by saying aye. all opposed? the ayes have it. next item, [agenda item read] >> thank you. i have one speaker card. francisco de-costa, please approach the front. good afternoon. >> good afternoon, commissioners. so you may have noticed that i do not come to this meeting, and i haven't come for a long time, and that's because i'm very busy at ground zero. but commissioners, you need to

pay attention to people who come here and give public comment. because if you do not pay attention, then, you go into this land where more hallucination takes place, and you don't want to go there. for your information, in the late 60's and the early 70's the original water board participated in some mitigation measures from which the san francisco public utilities commission derives a lot of income. the sewage fees that we pay. now, in the year 2018, when the

sewer system improvement project is being addressed, we see a lot of confusion. and you commissioners, have to pay attention to the confusion. why is it that tony flores had to retire? why is it that karen kubic is going to retire, and i can go deeper. commissioners, you are there because you represent the people, and what we see is lack of representation. what we see on the side are ploy ploys, machinations, and s shenanigans, and it's going to come to a stop.

and it's going to come to a stop like our president. our president is saying oh, i had nothing to do with the russians. well, you did. and it will be said, it will be done, and it will be exposed. so right here in our back yard, we have the same type of ploys, machinations and shenanigans, and there are certain city people involved in it, and let them do it. there are some people that were trained -- and that's my public comments. thank you very much. i have to go to the board. >> next speaker, renee anderson, please come to the front. hello. good afternoon. >> hello. good afternoon. greetings to the commission, general manager, and secretary. my name is renee anderson, a former employee who now lives

in southern california. i wouam shifting my career to shoreline, and any assistance you can provide would be great. >> thank you. are there any other public comment? seeing none, public comment is now closed. [agenda item read] >> clerk: there were a couple of changes to the update that was in the packet. on page two, number five, and page two, number two at the bottom were both revised. copies were mailed to the commission yesterday, and there are updated copies on the table for the public. >> thank you, donna.

colleagues, is there any discussion on the item? is there any public comment on communications, including the amended communication? hearing none, public comment is now closed. madam secretary, next item, please. >> clerk: item six is other commission business. >> colleagues, is there any other commission business? hearing none, the item is now closed. madam secretary, next item, please. >> clerk: item seven is report of the general manager. >> good afternoon, commissioners. i want to -- actually, our first item is cleanpowersf. >> thank you. today's clean power update will quickly cover our enrollment and service to customers and do a little work ahead, but we're going to spend a little more time taking a deeper dive into our power supply portfolio and projected enrollment.

on enrollment, it's the same story. 98.8% of the customers that we provide service to are opting out, and we're proud of the fact that our opt up to super green rate exceeds that at 4.2% of our customers. our power source disclosure report for 2017 is coming due. this report is required to be filed with the california energy commission after your review and approval. you'll find the cleanpowersf power disclosure report as well as the hetch hetchy report are action items 8 a and 8 b on our agenda. i was really pleased that we were able to obtain a 47% california green product with our service, and it's 100%

carbon free, so really happy to be able to celebrate that with you. looking ahead this week, we will begin mailing our enrollment notices for the july 2018 enrollment. that enrollment will increase that customer count from the 81,000 i just report today about 105,000. we're adding mostly commercial accounts this round. also very pleased to report that gm kelly has signed the master agreements and confirmations that build the power supply portfolio to serve that growing customer base. to walk you through the portfolio and the projected pro forma, i'll ask mike himes to come up, and as he does, i'll ask to publicly thank and recognize him and the core team for getting us to this point. thank you to the city attorney's office, and thank you to the power staff, the core staff that worked on these

supply contracts: randall smith, erin mulberg, and mike himes. mike. thank you. >> thank you, barbara. >> thank you, barbara, and good afternoon, commissioners. mike himes, director of cleanpowersf. it is a great pleasure to be here with you this afternoon to share some of the work we've been doing over the past few months to build a power portfolio to complete enrollment in cleanpowersf citywide. i've got just a few slides -- four slides, exactly, that i will run through quickly with you. this first one is a chart that shows how or portfolio looked before we started our recent contracting effort a few months ago. of course this really kicked off with rfp's that we issued in the summer and fall of 2017, but we began signing contracts

after obtaining authority from the board and from this body in the early -- or the winter of 17-18. so this chart shows cleanpowersf's annual projected demand and contracted supply over the next 12 years. the back line on this chart represents our projected annual energy demand given our citywide enrollment plan today. this line's plotted against the left side y objection i say in megawatt hours of energy. you can see we're projecting about 1.2 million megawatt hours in 2018, jumping up to about 3 million in 2019 and 3.7 million in 2020. the bars on this chart at the bottom represent contracted energy supply in megawatt hours, which is also plotted against that left side axis. the orange dotted line represents the percentage of

our projected demand that's now under contract, and that we've identified the percent for each year, and that's against the right side, y axis. you can see from this chart when we started our contracting effort, we were 37% contracted for our plan demand, this year, 2018, and that's counting for our up coming july enrollment. in short, there was a lot of work that we had to do a few months back. and this is what our portfolio looks like now after our recent power contracting effort. the blue bar segments represent the additional energy we've contracted for since february , given the authority delegated to the general manager. you may recognize the laddered shape of this portfolio and the contracting effort from presentations we've given over the past six months or so, and that is one of our risk management strategies and staying with the market as prices changeover time and as

technology costs decline. you can see along the dotted orange line here that we're 98% contracted for 2018, 90% for 2019, 71% for 2020, and so on, until the portfolio plateaus at 20% contracted forward through 2030. those longer term contracts in the portfolio were just recently executed by the general manager and include two main contracts, a 22-year power purchase agreement with the developer s-power to take energy from a 2(a) constructed 100 megawatt power plant in lancaster, california, and another to take power from a wind power project in tehachapi, california.

these represent the first two long-term contracts that we've entered into, and it's just the beginning, but very strong start for the portfolio, and these -- both of these projects will deliver new jobs to the state of california and clean energy, and we are going to be working on more to come on-line in the next several years. in addition to those two contracts, the puc entered into a 4.5 year agreement with cal pine to purchase energy from the facilities geothermal facility in alpine, california. that actually started delivering energy to the cleanpowersf program earlier this month. the energy portfolio work for 2018 is largely done, but a lot of additional work still needs to be done to round out our portfolio for 2019 and 20 and we'll be conducting additional solicitations and keeping the commission informed of all of

our actions as we do that. this slide, number four, summarizes our projected 2018 power content, so as gm hale indicated in her comments, before you is your 2017 power source disclosure report which under lies the power content label for the cleanpowersf. this is what we think the program will look like this year, given the contracting work we've done. of course this will get settled this time next year when we have all the actual deliveries for the program over the next seven, eight months yet to come, but given the contracting work, these bar charts summarize what we're expecting. on the left side are the major resource categories, so at the bottom in green is renewable

energy? the blue segment represents ghg free hydro purchases, and the top gray segment represents conventional purchases which, for the most part, our system grid energy that we're planning. if you move to the right bar, what you can see in the multiple segments that are color coded are the different contracts that we've entered into to makeup this portfolio. and that's about 13 different contracts that we've entered into, and that's also part of our risk management strategy is to diversify our supplier base to mitigate any risk associated with individual supplier failure. i'm going to pause here for a minute, did you have any questions about this? >> i could. so you mentioned tehachapi. is there any data that you're able to provide based on those

contracts or any requirements that we're placing related to the jobs piece, 'cause you mentioned jobs piece? >> yeah. so we are pulling some estimates we'll bring back to the commission on specific job creation stats. we're working with the developers on that. the -- all of the contracts we're entering into require prevailing wage. that's a contractual term. the s-power solar project is also committing to enter into project labor agreements to construct those facilities. so that's the sort of general outline of the labor arrangement, but we'll be bringing more information on the specifics back to you as we gather the specific job stats. >> thank you. for people who are watching, throughout the course of this whole conversation going way back, we always were talking about jobs, and so now that we're finally starting to get to those points, i think it's probably in our best interest to make sure that we check those boxes because pla's and

prevailing wage, that's good stuff, right? >> yeah, absolutely. and we know that's an important part of the message that we deliver, and we're in the process of gathering that, so we'll give you a briefing on that, yeah. >> okay. >> can you just put that slide back up? i just want to make sure i understand. so basically, what this is saying is 81% of the additional enrollment that we're going to be doing this year will be ghg free, correct? >> that's right. so the way that we represent the energy purchases in the portfolio is all of our sales, not just the incremental customers that we're enrolling. so we look at it over the 12 months, all of the energy that we purchase and supply to our customers. so it's not just the enrolled customers, but it's the customers we're serving today, so they're all part of the same -- they're all getting served by the same body of resources. one point of clarification i do

want to make so you can see it, it identifies over 48% renewable. we have included the super green component in this chart, so this is all of the energy that the program's purchasing for all of its products. we're forecasting that our super green sales will be about 3% of total in 2018? we've actually worked our way up to about 6% -- 6-7% with the current enrollment, and we expect we'll do that, but it'll take a little bit of time after we enroll the customers to facilitate those upgrades. >> so another way of looking at it, if you look at the stacked bars, it represents all the energy that we sell. and so when you look at the combination of the green and blue, that is, you know, ghg free power. >> that's right. >> right? so that represents, you know,

80, 82 -- >> 81%. >> no, 82%, right? >> right. >> maybe a little bit of rounding there. >> yeah. >> i think that's what's going on. >> yeah. and then, however, when you look at super green, super green customers, which is 7%, is of -- is pretty much made of that 48%, 7% of the super green is 100% in that -- >> yeah. so all of the energy that we sell to super green customers is 100% renewable. >> so if you take that 7% away, you're actually at 37%, versus 34% is for the green customers with the 19, right? >> that's right. >> yeah. >> so how many -- >> i'll make it more complicated. >> i know. it's just -- it's an odd -- i can't quite -- it seems that there's a better way to present this. rather than megawatt hours, can

you translate this into customers? >> so this is really an energy measurement? what it -- what this is saying is 48% of the megawatt hours we bought for all of our customers comes from renewables. >> right. >> so this percentage applies to every single customer we serve. >> oh, i see. >> right? >> now, one thing we did hear that i will admit may have been confusing is we took all of the energy we serve, all of the customers we serve, including both the green customers and the super green customers, so for the remaining of the year, agm hale was saying we'll have about 3% of our total sales will be super green, so the base product super green will be 45% renewable energy, but the total portfolio will

deliver 81% ghg free. >> okay. that's better. thank you. >> okay. >> i have a question. i wanted to ask you how we are determining how far out to go in the contracting. >> yeah, that's a great question. we have been reviewing best -- best utility practice in this area? we've been working closely with our other cca colleagues, working with consultants, utility consultants that are risk management experts, and the laddering that i showed before, like, like this is a shape that is -- is recommended within the utility -- the electric sector utility industry in forward contracting? and part of the idea here is we don't want to lock in too much of our supply at a given point in time given the fact that the

market will move around, the price of supply will move around, and just sort of an anecdotal point, in 2010, solar was selling for almost ten times what it is now. so we don't want to overcommit to a particular resource at a particular point in time, which is why we've structured it this way. in the very near term, we want to be procured as close to 100% as possible so we're not exposed to changing market prices every day? but we want to leave a little bit open each year to procure so that we're not out of the market, so that gives us some room to procure every year to fill the whole portfolio. >> right. is there any projection of how much of these different renewables are going to drop in price? >> yeah. so one thing that our team is working on now is an integrated

resource plan that we'll be bringing to the commission within the next two months? that is a plan that actually takes a 30-year forward look at our portfolio and supply resources -- supply and demand resources. so that plan also includes projections of technology costs. this is a plan that we're going to update every two years, and part of that, again, is because the market is evolving all the time, the technologies are evolves, so the answer is yes. the -- over the long-term, we do account for changes in the prices and the costs of the technologies that we may be wanted to procure. >> thanks. just brought back memories of year ago -- barbara's shaking her head. it was suggested that we buy these contracts moving forward, and it was -- it turned out to

be a disaster. to i'm just curious about that. sounds like you real he have a handle -- really have a handle on it. >> yeah. those contracts in the early 2000's -- trying to learn from previous mistakes. >> right. >> i do have one more slide, and that's the five-year financial projection. so this is an updated our pro forma, and this reflects the cleanpowersf's budget, and on the whole it reflects what we've been projecting about the project for the last few months. we're projecting a 10% operating margin for the program in the next two-year budget cycle each year, and

that's flagged by the red box on the slide in dollars, right? so that's 16.3 million and 20.7 million in the next two years of the budget cycle. this is net operating revenue that can be used to fund our e reserves, our financial reserves to help the program, whether through changes in market prices increasing costs unexpected unexpectedly. and i did want to say this does include a 5% contingency in our power supply line. so we're trying to make sure that the program is sufficient and has the resources it needs to pay for power costs as they changeover this next two-year period. one final comment about this is at the very bottom, you can see if the reserve target is being met, and our projection is now that it will be met in fiscal year 2023.

>> i have a question on this. how are you justifying the jump of the super green in one year going from 1.4 to 1.8? >> yeah. we're anticipating that there'll be a fairly significant jump associated with the new enrollment that we make. we actually did -- you may recall that we had set a stretch goal for the program of 5% of accounts enrolled in super green. we have -- i think we have been at 4.2%. we expect that when we conduct the next enrollment, it will dip down a little bit? but even with the next commercial enrollment, we will be able to pick up a few customers that we enroll into the super green program?

so we think that number is around 3%? it's still conservative, given -- and the big jump is -- it's due to the enrolled -- the additional enrolled customers, so it's a percentage of the additional enrolled customers. >> i see. thank you. >> commissioners? >> thank you. >> yeah, thank you. >> thanks very much. thank you for shouting out your team members by name. great work being done by the whole group. is there any public comment on this item? hearing none, public comment is now closed. madam clerk, next item, please -- oh, i'm sorry. still on my report. the next item is a water and price capital improvement quarterly report, by dan we ad >> good afternoon, commissioners. dan wade, director of water

capital programs and improvements. >> i'm here to present the water system quarterly improvement from january 31st, 2018. so the highlights for this reporting period are that we were awarded a contract for -- [inaudible] >> -- the purpose of this project is to address on an interim basis, case to note issues for the regional watershed until we are able to do a longer term solution, we have an ozone project planned as part of the new capital program, but this is an interim measure that we hope to get in place prior to the mountain tunnel shutdown that's going to take place january of next year, so we're glad that we're moving forward on this expeditiously. the emergency repair, the