and i can't tell you how much that means to me as a boss and the city and county of san francisco. >> as a group, if they didn't do what they do, the streets would be flooded with waste and gray water, and it could become a health hazard. we take a lot of pride in what we do, and we do the jobs right, and you walk away fulfilled that you've done the city a >> good morning, everyone. this is the budget and finance meeting of april 17, 2019. i am sandra lee fewer, the

chair of the committee. i'm joined by supervisor stefani, the vice chair, and we'll soon be joined by supervisor mandelman. the clerk is linda wong. and i would like to thank kaleena and korman of s.f. gov. >> please silence all cell phones and electronic devices. speaker cards and documents should be submitted to the clerk. items acted upon today will appear on the april 21st board of supervisors' agenda, unless otherwise stated. >> item number four is a resolution approving modification number two between the contract of the office of contract administration, apparatus, to purchase equipment for the fire department, increasing the amount by $1amount of$5.5 million, not to

exceed $15 million. >> thank you very much. we have deputy chief anthony rivera from the san francisco fire department. is that correct? >> yes. >> chairwoman: that's great. please start. >> okay. >> i am mark foley from the office of contract administration. we're here today for the triple combination pumper units for the san francisco fire department. i'm the supervising purchaser, and i've been with the city for six years. so our agenda here today will cover the background of the contract. and we'll also get into the purpose of the units, which deputy chief rif rivera will help us out with, and we'll look at the units

purchased to date, and the current proposed order on the books and look at the financial impact of that and we're here, and then we'll close with o.c.a.'s recommendation. the background of the contract, this contract was an r.f.p., a request for proposals and solicitation back in june 2016. we solicited people to build our pumper units according to the specifications we had at the time there. taken the result of that was fire apparatus coming in at the highest scoring responsive and responsible proposal. and following that determination, we entered into a three-year contract with ferraa fire beginning in august of 2016, and the term ending this coming august 2019. the contract also has two

one-year renewal periods at the mutually agreed upon -- i guess -- according to -- being mutually agreed upon by the two parties. one year each with a total potential five-year contract term, terminating in august of 2021. the association's recommendation today is that we increase the current crarkt contracts not to exceed $5.5 million to $15 million, which we'll cover in just a second. so this is a picture of the unit. it looks like, you know, you're average fire truck, but, as tony rivera will tell us here, it is anything but average. tony will kind of explain the purpose of these units for us here today. >> chairwoman: thank you. >> good morning, supervisors and staff. thank you very much for

this ability to potentially increase the capacity of this contract. my name is assistant deputy chief tony rivera. a lot of time and effort went into the design of this vehicle. this was our newest design lately for fire engines. it is actually a groundbreaking design. the maneuverability of this vehicle is unbelievably incredible to address the tight and narrow streets of san francisco. we were able to incorporate a lot of new technologies acialtion. also. this fire engine was actually featured on "wired" magazine. i think it is the first fire engine they've ever featured. and we've also been featured in many trade magazines because of a lot of the features that we incorporated. also, this vehicle has a

reduced emissions, not only to the federal standards, but we actually exceeded federal standards by adding some components to the exhaust system, which further reduces emissions. and this vehicle is actually so popular, my office is constantly getting requests for the specifications so that other departments not only in the united states, but also in canada, can use this as their template for their fire engines. and i would just say that also our firefighters have really embraced this vehicle, that has a smaller footprint from previous models, and is extremely agile and performs very well under the adverse conditions of san francisco. >> chairwoman: thank you very much. any questions, colleagues? seeing none, i believe we have a delayed report on this, please. >> good morning,

supervisors. don goncher from the budget and analyst's office. the proposed resolution would approve modification number two of the contract from the office of contract administration, and ferara fire apparatus incorporated. extending the contract by two years for a total of five-year term from august 26, h august 25, 2021. and increasing from $5.5 million to $15 million. as shown on page one, in june of 2016, o.c.a. issued a request for proposals to enter a contract for triple combination fire pump engines for the san francisco fire department. ferara fire apparatus was deemed the highest scoring sponsor and responsible

proposer. there is a total cost of $7, 973, 792, for an average cost o792.o.c.a.plans tn additional six fire engines for $3,545,942. we do note that the cost proposals submitted by ferara includes a 1% payment discount for payment within 30 days of invoice. the payment discount has not been applied to either purchase to date. had the discount been applied, they could have saved $779,000 714 on the purchase. we do recommend approval of the proposed

resolution. >> chairwoman: thank you very much. any comments, questions? yes, supervisor stefa stefani. >> thank you, to the chair. have there been any impediments to utilizing that 1% discount for payment within 30 days? and if there have been any impediments, it was only around $80,000, but at the same time, we want to make sure we're saving as much money as possible. >> yeah. i mean, those past orders that didn't have the 1% payment discount included in there that we just can chalk it up to perhaps administrative error there. but these units are priority for the city. and definitely, again, this current proposed order will have the 1% payment terms on the order, and every effort will be made by the city to ensure that inspection

and testing and all those things can take place hopefully within a 30-day period so we can make sure we take advantage of that. >> thank you. >> chairwoman: let's open this up for public comment. seeing none, public comment is now closed. so i have a question about where these triple pump trucks are being dispersed throughout the city. >> good morning, again, assistant deputy chief tony rivera. currently,all of these fire engines have 360° cameras which allows the driver and officer to actually completely see around the vehicle. we've been placing the majority of the engines in the high dense center density af san francisco, chinatown, north beach, financial district, south of market, just because of the traffic congestion and multiple bike lanes.

we want to ensure that public is safe, and we feel that currently that's the best location for these vehicles. >> chairwoman: and how about these additional six? >> the additional six, i believe, will be placed in cathedral hill, also in the downtown -- a couple more in the downtown corridor. but we're also going to move some of the vehicles that are in the south market area out to the west side, including richmond and sunset. so they will see a lot of these vehicles going out to the west side of the city. we traditionally put the vehicles in the downtown area first because of the high volume of calls. and then they kind of get handed down to the other companies. >> chairwoman: okay. thank you very much. this also, i think, is a retroactive approval. and it is because actually

the term is from april 1, 2019, through march 31, 202. 2022. do we have a city attorney to see if this amendment is substance tif substantive or. and the bma gives approval -- isn't that correct? >> thank you. on the timing of the approval? >> chairwoman: no. i'm sorry. you recognize approval, got it. i'm sorry, i'm looking at another item. so sorry. okay. i would say the question about the 1% discount is great. and let's make a motion. supervisor stefani? >> yes.

i'd like to move to forward this to the full board with positive recommendation. >> chairwoman: thank you very much. i think we can take that without objection. again, apologies for reading the wrong comments on the wrong item. thank you very much. thank you for coming today. >> thank you. >> chairwoman: so, madam clerk will you pleas read number one. >> authorizing the public utilities to execute an agreements with american water resources to have an water program to residential costumers in san francisco in exchange for payment of $3.61 a month for a term of four years to commence upon board approval. >> chairwoman: i believe we have michael tran here. hi. >> hi. good morning, supervisors, members of the budget and finance committee. my name is michael tran. i'm an engineer with the san francisco public utilities commission. i'm here today to present the professional services contract number 86 for the

residential water service and sewer lateral service and protection, and marketing program. i'd like to start off with providing a very brief overview of the city's collection system. we have over 1,000 miles of sewer mains, and an approximate mileage of 700 sewer miles. and san francisco is predominantly a combined system, meaning when rain water and sewer water exchange and the pipes, they go through the storage boxes around san francisco. it allows for potentially overflow into san francisco bay or the pacific ocean under major storm events. the city has a -- to go over the broad overview of the city's water distribution system. 17 storage tanks and about

416 million gallons of water storage. and in addition, there is a separate high-pressure water firefighting system. and to dive into the detail of today's contract, i'd like to go over the sewer service laterals. let's start off with the sewer service lateral. the sewer service lateral is currently identified by the san francisco public works code to be the sewer lateral is entirely owned by homeowners. they are responsible to maintain and repair the upper sewer lateral, while the san francisco p.u.c. is responsible to replace structural defects on the lower lateral. they are working to update the public code in article 4. and is currently in draft stage.

the water service lateral is a little more clear in delineation. the customer has responsibility for repair, maintenance, and installation, from the water meter back to the property, while the san francisco p.u.c. replaces the service lateral from the water meter back to the watermain. why is this important? this is important, because, to be honest, most homeowners are unaware of their responsibilities. to be frank, the codes are kind of complex. and, unfortunately, the water and sewer service laterals are aging infrastructure, and most homhomeowners would not know there is an issue until it is too late. let's say a water service break or potentially a sewer service lateral break. and most homeowners are unaware of the costs associated with repairing these infrastuctures. and why is it a concern? because most of these

service laterals are similar in age to the homes, which could be ranging from a few decades do over a century old. sewers are particularly more challenging because the gravity operation. it shows very little telltale signs when the lateral is broken or non-functioning or beginning to break. and until something catastrophic happens, like sewage backing on to the sidewalk or potentially even into the property. the next slide, i would like to show a typical household configuration with respect to both household and sewer. it is a typical configuration. you can see the standard asphalt over sub-base pavement. the gutter, and the sidewalk and the typical household, where it is located. water service laterals are clearly delin nated delineated e of the clear demarcation

of the water meter. from the water meter back to the property, that's where the property owner is responsible. on the sewer lateral, it gets a little more complex, which i'll explain on the next slide. this exhibit shows a little more detail as far as the typical configuration. and to re-emphasize, these are very generalized configurations. so the lower lateral is defined by the public code from the projection of the curb out to the sewer main. that is the portion where the p.u.c. would repair and replace structural defects. but project owners are still responsible for maintenance and inspection. >>inspection. and over here that projection helps clarify the jurisdiction of the san francisco p.u.c. and the department of inspection administers plumbing code from this line back into the

property. a little more about the contract itself with american water resources. this contract was competitively bidded out in 2018. american water resources was the highest scoring proposer. it will allow them to utilize the p.u.c. logo on marketing efforts, such as on mailings, to potential eligible program costumers. eligibility is based off of water meter services, sized two inches and smaller, and strictly for residential use. currently the san francisco p.u.c. estimates there is a little over 111,000 eligible for this program. what is important about this program is that it will offer an affordable and low-cost option to assist with these unexpected costs associated with repair of the service laterals. this program is optional to s.f. p.u.c. costumers.

so they can elect to enroll or not. so at the completion of any type of upper sewer lateral repair or replacement, they will tell victelevisethe entire lated submit it over to the p.u.c. and they will generate a $3.61 per month per enrollee, and that estimate is estimated to be approximately $1.9 million. american water resources has several program highlights, and these were established base lines from the initial r.f.p. so the -- in order to enroll, the customer cannot have any preexisting -- they cannot look for preexisting conditions. so the only requirement is for a 30-day wait period for new costumers. american water resources run independent educational outreach,

which the san francisco p.u.c. will have an opportunity to review before it is executed. american water resources will also operate their own 24/7 call center to respond to claims. there is very limited p.u.c. support required as american water resources will be billing directly to their program costumers. and just to illustrate the costs of the premiums, for water service, $4.49 a month. sewer lateral alone is $8 .88 a-month. a little more detail about the contract. the contract was advertised in january 2018, and bids were opened on march 2018. two bidders, american water rewater resources and the other was home services. american water resources was the highest-ranked

proposer. with the support of the board of supervisors, the san francisco p.u.c. is targeting to proceed june of 2019. today we are asking -- we are requesting for the board of supervisors to support the approval of this award to american water resources for the initial term of four years. s thank you. thanthank you.>> chairwoman: m, this is like an insurance policy for the upper lateral property owners. is that correct? >> that's correct. >> chairwoman: we've had ours repaired, and it is very expensive, quite frankly. so this is an optional opt-in, that p.u.c. costumers can actually partake of. is that correct? >> that's correct.

>> chairwoman: any comments, questions from colleagues? seeing none, any public comments on item number one. seeing none, public comment is now closed. there is no d.l. a. report on this. i move this to the board with a positive recommendation. thank you very much, colleagues. thank you very much, mr. tran. >> item number two, resolution approving an emergency declaration of the public utilities commission to repair the hedgy hedgy waters, near groveman, california, for a total estimated cost not to exceed $400,000. >> chairwoman: okay, we have mr. c. richie here, the assistant general manager of water enterprise. >> thank you, chair fewer. >> steve richie at the p.u.c. this was an emergency declaration that came about as a result of a large snowstorm on february 16th of this year.

it caused a 160-foot tall ponderosa pine tree to fall into our right-of-way, and specifically against a high voltage transmission tower and line near groveland, california. it damaged the tower and brought down a couple of the transmission lines. they also affected pg&e distribution lines below that as well, and the ones that actually deliver water and electricity to people's houses. we saw clearly that this was an emergency condition. and processed a change order with an existing contractor where we competitively bid with similar work with big valley electric. that contractor, with the specialist sub completed temporary repairs about february 23rd, so about a week after the incident. this was, again, a fairly big storm. this was probably the

biggest storm of the year. the tree in question here had been inspected, and we expected to monitor it. it is not on our property, and we didn't see any dangerous signs, but it was tall enough to cause a problem. so we're working with adjacent property owners to re-evaluate the trees there. and we have to deal with these things all of the time. i'd be happy to answer any questions. >> chairwoman: thank you very much. any questions from colleagues? seeing none, i believe there is a d.l d.l.a. report on this? >> dan gontra with the budget and analyst's office. the proposed will repair hedgy water and powers near big creek shaft road in groveland, california forks a total estimate not to exceed $400,000.

as mentioned on february 16, 2019, during a large snowstorm, a tree fell into hedgy water and power's transmission line near big creek shaft road near groveland. pg&e required s.f. p.u.c.'s transmission line to make repairs to the distribution line, which was also damaged. san francisco public utilities commission processed the change order. the change order included specialty work, to hire a subcontractor, and it required big valleyling electric to obtain pricing from two sub-contractors. and they were able to conduct the work immediately. a fixed price of $236,000 was negotiatore,000negotiated wg

valley. to date, the public utilities commission has spent $335,000 of the total $400,000. the p.u.c. expects to use 390,000 of the total funds for the project as the contingency istit is not exacted expected to be spent. and the current balance available in the fund is $6.2 million. as we note in our report, the hedgy water and power right-of-way pair is physically inspected annually for encroachment. it was recommended for increased monitor, however the tree was healthy and not recommended for removal. we recommend approving the proposed postal. >> chairwoman: thank you very much. any member of the public would like to comment? seeing none, the public comment is now closed.

i make a motion to move this to the board with a positive recommendation. please call item number three. >> resolution authorizing the office of contract administration to enter into a multi-year contract with goldengate petroleum for a three-year terms of april 1, 2019, to march 31, 2020. not to exceed $35 million. >> chairman: thank you very much. >> good morning, supervisors. i'm a senior administrative analyst with the contract administration, and i'm accompanied here by our director and city purchaser alex, and we're here to give a short interpretation to support our request that you approve a new contract for renewable diesel. firstly, i'll go over a brief background on renewable diesel itself, a

bracbackground on the current contract, and then i'll go over inventory of the city's current contract, which will lead me to talk about the number of vehicles and the equipment, and the expense for the renewal diesel is on the rise. and it will give some details about the contract we are seeking your approval on. background on renewable diesel, it is used by vehicles and equipment, vehicles we consider heavy duty or utility vehicles. there are different types of diesel. there are petroleum diesel, biodiesel, and renewable diesel. this contract is for renewable diesel, which is a few made of renewable materials, such as vegetable oils, animal waste, and greases. it is 100% renewable. and because of that, it is more environmentally-friendly

than regular petroleum diesel, which is a fossel fuel, and more than biodiesel, which is a mixture of petroleum diesel and renewable diesel, and also more than gasoline. it also emits less greenhouse gases, and that's why it is greener and it plays an important role in the city's role to reduce greenhouse gas emissions. some background on the type of contract we would like to give for this commodity. it will be an as-needed contract. meaning that departments will use it on an as-needed basis. it means that the not to exceed amount you will grant us today, hopefully, is a contractual cap we can go go over. iover.but what it will doe is secure a source of renewable diesel for the city. it is available to all city departments, and historically, the most commonly heavy users of this contract have been

m.t.a., s.f.o., the p.u.c., the department of public works and fire department. and shortly i'll talk a little about the types of vehicles that use this type of fuel. this will be an as-needed contract, and the departments will purchase with the funding they have already received approval for in the process when they come to the board every year. so the current contract, which we hope to replace with this new contract before you today, it was established in april 2016, pursuant to resolution 8216, and it was a three-year agreement with goldengate petroleum with $60 million, not to exceed amount. the contract provided renewable diesel to various departments. we have seen an upward trend of the number of vehicles that use renewable diesel. which leads me to my next slide, which is the current inventory of city vehicles that use this type of fuel. you can see that it is

varied in terms of the types of vehicles and equipment. we have things like boats and carts. in terms of buses, we have buses from m.t.a., we have transport buses from the sheriff's office. we have the library's book mobile. we have equipment that would be called heavy equipment, things that heavy equipment are bulldozers and tractors. we have small equipment, which are equipment that it can't be driven, but still uses fuel. examples of those are things like power washers or portable generators. we also have small off-road equipment, which are equipment that it can be driven, but not on streets, such as forklifts and the riding lawn mowers. we also have trailers, which are things that would be attached to another vehicle, like a wood chipper, a light tower, or a generator. trucks is very varied.

we have the fire department -- the fire engine trucks. we have police command trucks. we have street sweepers, and we have dump trucks. under vans, we have things like ambulances and cargo vans. all for a total of 2,491. and this next slide shows the increase in the number of vehicles and equipment that use renewable diesel. in 2015, we had 2,171 vehicles. four years later, we have 2,491. and so 2,491 is the current number of vehicles that use renewable diesel. that's a good thing because the more vehicles that use this type of fuel, the less are using the fossel fuels. also with the increase in the vehicle amount comes an increase in the spending, which is what this next slide shows. under the current

contract, these are the spend amounts over the -- with the current contract. the current contract started in april 2016, for that year, we spent about $9.1 million. in 2017, we spent $13 million, and in 2018, we spent $14.8 million. this takes me to talk about that new contract, which we are hoping you will approve. so we obtained this new contract through a competitive process. in november of 2018, our office conducted a competitive low bid for renewable devil rays. devidevildiesel.we selected goe pretoria becauspetroleum becausy were the lowest. we would like to give them a total contract term of five years. our original request was for a not to exceed value

of $75 million, which was based on that last year's total. we took the average of that year and extrapolated it for 60 months, which included the original three-year term plus the two-year option. but the budget analyst recommended we only obtain the amount sufficient for the three-year term, which is $45 million, and require us to come back to you guys for any increases in the future, and our office agrees with that. we believe $45 million would be sufficient for the three-year term, and if we needed additional funds after that, we would come back to you guys. that's it. if you have any questions, we'll try to answer them. >> chairwoman: okay. any questions, comments? well, let's hear from the b.l.a. first. >> dan with the budget office. the proposed resolution will approve a renewable diesel purchasing office

between the office of contract administration and golden gate from april 2019h 2022. with two one-year options to extend through march 2024. o.c.a. conducted a competitive solicitation for a new renewable diesel purchasing contract. they with based on mark-ups or mark-downs, by a price benchmarked used by government agencies for fuel purchase. o.c.a. received two proposals, and goldengate petroleum was deemed the lowest cost proposal. and sufficient funding is available in the fiscal year '18/'19 budget. we note in the report that o.c.a. is seeking am approval for the few $75 million, not to exceed the amount, without board of supervisors.

and as the resolution currently reads, the full $75 million can be spent in the initial three-year term before the options are exercised. our department agrees with our recommendation, that we recommend amending the proposal resolution to require the board of supervisors' approval of each one-year contract extension by a half million dollars, and to limit the not to exceed the $45 million over the initial three-year term of the contact, with authorization to exceed $16 million upon exercising the first option, and $75 million upon exercising the second option. and we do recommend approving the resolution as amended. >> chairwoman: thank you very much. let's open this up for public comment now. are there any members of the public that would like to comment on item number three. seeing none, public comment is now closed. all right. now this is n my notes for item

number three, that i believe this is retroactive. we should make an amendment, also, that this contract is for retroactive approval. so, mr. state attorney, are these amendments proposed by the b.l.a., or that it is now labelled a retroactive approval -- are those substanc substantive. >> neither trigger an amendment today. >> chairwoman: any comments or questions? i would like to make a motion to approve them, and the amendment that states this contract is for retroactive approval. we can take that without objection. and then i would like to move this to the full board with a positive recommendation as amended. thank you very much. madam clerk, can you please call item number five. >> the resolution authorizing the department

of public health to accept and expend a monetary gift in the amount of $200,000 from the richard and bonnie green survivors' trust to the laguna program through june 30, 2029. >> chairwoman: thank you very much. we have mr. fraser here from the department of public health for laguna honda hospital and rehabilitation center. >> good morning. earlier this year the bank of hawaii, the successor trustee of the richard and bonnie green survivors' trust exacted laguna honda to indicate that a $200,000 request be distributed. our best efforts to tie a connection between the greens and laguna honda was undertaken. the best we could come up with was that either one of the green's father may have been a resident at laguna honda.

there were no requirements, no specific requirements, for the expenditures. so it would be used as our gift fund. and generally it is used to enhance the well-being and quality of life for our residents. the type of expenditures we would make for material supplies and services include resident outings, cultural celebrations, cultural foods and entertainment. periodicals, and other expenditures determined by our gift fund committee. >> chairwoman: thank you, mr. fraser. there is no b.l.a. report. let's open this up for public comment. are there members of the public that would like to comment on item number five? seeing none, public comment is now closed. i just want to say thank you to richard and bonnie green. and i'd like to move this to the full board with a positive recommendation. take that without objection. thank you very much.

madam clerk, are there any other items before us today? >> there are no other items. >> chairwoman: this meeting is adjourned.