there are two support rates involved. other than that, i appreciate your continuing work and i look forward to frequent reports and conversations about this program. thank you. >> thank you. >> operator: you have two questions remaining. >> question: this is peter dreckmyer. i sent you a couple of letters yesterday. the one on the water supply budget work sheet that commissioner moran has requested. and regarding 5d, i agree, it's a well-written report. but i feel it's based on an old way of thinking. and this is in no way a criticism of staff. i think paula does great work, but trying to work within policy

that is dated. and so i'm very enthusiastic about the water supply budget work sheet. i think we will have a much better understanding of water supply, issues related to that. so i hope you get a chap chanceo look at my letter. i requested there be a backgrounder included with that, so the elements are clear on how the system works and water rights. so information about the baker act, the 1995 flow schedule and i requested that there be information in there to look at the history of water entitlements and demand and storage level and so annual entitlements, tourist demand over the years and how much water was remaining in storage at the end of the year. i think that will be very helpful in transformin determiny moving forward. i hope there will be an

opportunity to for the public to ennaturengage in using this too. some of the factors to be considered are entitlements but alternative supplies, demand is we know demand is much lower than it was projected. new storage could be included and level of rationing and taking a look at the off-ramps and all of that is explained in my letter and i look forward to bringing this issue back in a couple of week. >> thank you, caller. >> operator: you have one question remaining. >> question: so commissioners, on the water issue, i have requested several times to contract the tribes who have a

vested interest in the reverse and the water which they consider water which we stole from them. so much like the racism that we are witnessing today, this issue happened during a time where congressmen could make bills with other areas an, steal the water and bring it to san francisco. that's ashame. you need to make it right.

we have some telling you what is right and what is wrong you like to do wrong. right now, they cannot speak for themselves. i said this before. we need to hear from the tribes. , the indigenous people, who were here for 15,000 years, unlike the strangers who came here from 400 years ago and screwed up everything. we need to hear from the tribes. this pandemic is something we should reflect upon. >> thank you, caller. your time is up. thank you so much for your comments. >> operator: you have zero questions remaining. >> there aren't any more callers in the queue, madam secretary. >> that closes public comment on item 5, communications.

>> madam chair, i have a question on 5d, i'm sorry. is it ok if i ask it? >> of course. >> 5c is the bay area watershed and rights of way wildfire preparedness and i just wanted to know if there is someone who can answer that. is there a particular goal? is there a place we're trying to get to in being prepared for wildfires in these watershed areas? >> this is steve ritchie, assistant general manager for water and i would like to ask tim ramirez to respond to that question and he's on the loin. the line. >> thank you for the question. we try every year to do the work

that is outlined in the report, so what we've tried to do is to describe the entirety of the preparation work that needs to be done, the mowing, the massty case, vegetation and we're on track to do that. in general, we try to get all of this work done by july 4th. we use that date for a couple different reasons and some are obviously, perhaps, associated with the holiday and others are based more on the vegetation and its growth, which is highly variable. so we're generally on track to get all of that work done and we're also -- there's a couple of updates from the memo. we're hoping to have our prescribed burn next week at san andreas dam, and i will be sure to get an update when i have that schedule down. we'll be working through the details and i think we'll able

to get these things done on schedule in the next few weeks and then we'll be as best prepared as we can be to fight the fires, help fight the fires that undoubtedly will happen. we've had both meetings remotely like this one and thanks to brad and lee and it went very well, all things considered. we're in as good of a spot as we can be at this point. >> great, thank you, and thank you for the update. >> commissioners, before we move on, is there any further discussion of any of the items under communications? madam secretary, the next item, please. >> madam president, the next item is item 6, report of a general manager? >> good afternoon, commissioners.

before i jump into the covid agency-wide update, i want to recognise our black community. today george floyd was laid to rest following his tragic killing by minneapolis police department on may 25th. mayor breed asked all city employees to hold a moment of silence for a full eight minutes and 46 seconds at noon today to mourn his loss. to mourn in this. this is the same amount of time that a minneapolis police officer pressed his knee into mr. floyd's neck until he died. last week, i sent a statement of my reflection on george floyd's murder and in it, i shared my experience and invited their staff to share this.

over the last week, i received a ton of emails everyday from staff sharing their stories with me. i think this is important for a step in laying the foundation for identifying what the puc can do to create a work environment where employees of all race can strive and still respect it. as we move forward, i wanted to make sure that we take an approach that goes beyond lip service and instead puts in the hard work to understand how systemic racism is showing up at the puc. once we understand this better, we can identify and make concrete changes to address any system and behaviours at the puc that allows for this to occur. i believe it's possible to make change that we want to see in the world, at the puc. i invite the commission to work with us on what we can do, big

or small, to make a difference. on a positive note, we want to make great progress. we've been making great progress on building up or business continuity plan and this effort goes way beyond how and when we return to our regular work site. it will drop into end of aspect of what we to and how we do it now and also into the future. we need to maintain a healthy workplace, maintain collaborative decision-making,

region the way we work, keep employees informed and maintain an effective workforce. the newest work coming out of this team in the coming weeks is finalized in how we mark facilities for proper social distancing, launching an it lending library for remote employees to borrow desk chairs, keyboards and other basic office equipment and issue an update -- and update our telecommunication agreements. we are also developing this plan in coordination with the reopening plan. the city direction to all departments is to continue what we're doing. that means that employees who are telecommuting now, well telecommute regardless of when the shelter-in-place is lifted. from a timely perspective, we

are anticipating employees telecommuting and to continue to ddo so over the next 12 to 18 months. there are sole factors that could shorten or extend this. some teams may report back sooner. we will not bring remote employees back to the work site before august 31st. that will give us time to make sure we do this right and also for employees to plan out their summer work schedules. when we do begin to bring employees back, we'll start with those who are absolutely on site to complete their work. employees engagement is another topic to all of this work. i'm happy to report that our workforce is very engaged with

us and more than 1100 employees participate in the first employee engagement service in may and provided great feedback on how we're communicating in decisions we're making. we plan to follow up with the survey in the coming weeks. we held several virtual all-hands meeting including our very first agency-wide virtual all-hands' meeting two weeks ago. over 1200 employees participated in the meeting, which is nearly half of our workforce. we plan to use virtual technology to engage our employees on the work ahead. we will share that information with the commissioners so that we can have an opportunity, so that you can have an opportunity to participate. while we continue to push forward with this effort to meet

the needs of employees, we're responding to the needs of our customers. the latest numbers on the emergency customer assistance program show we have received over 3800 applications since launching in may, which, i think, is remarkable. this effort automatically extends the programs to the current enrollees and provide criteria for new enroleees. enr. work is underway for nonprofit customers. by continuing to do work with our customer's employees, city partners and others, we will look to move forward from these tough times in a better and responsive agency. i just want to thank you again for your support on all of the

efforts and i look forward to working with the commission over the weeks and months ahead. thank you so much. >> your statement was very moving and i think it would be good to submit that to the editor. i think everybody would like to hear your statement and i want you to know, and i'm speaking for the commission as a whole and i'm sure you would all be in agreement with me, but certainly anything we can do to aid in this, we're 100% there for you. and for the cause. and so i just wanted you to know that and with that, any

discussion about the first part of mr. kelly's report? seeingnone, madam secretary, could you please open this up for public comment. >> operator: members of the public who wish to provide public comment on 6a, update on operations during covid-19 emergency, dial (888)273-3658, access code 310-7452 and pound followed by pound again. dial 1-0 to be added to the speaker line. mr. moderator, are there any

callers. >> there are multiple callers in the cue. queue. >> operator: you have two questions remaining. >> question: first and foremost, today we had a funeral of george floyd. and all over the world, people are thinking about racism. so here in san francisco, we must ask ourselves, we have a mayor who is black and we have police chief who is black and we have a city administrator who is back, we have a general manager from the sfpuc who is black and we have several other blacks who hole pretty good positions and

we have to ask ourselves, we have blacks here in san francisco who are less than 5% of the population and why are they in dire straits? this is what we about the to ask ourselves. got to ask ourselves. now, we have many middle-class blacks living in tents. they're suffering and i'm on the frontline. i can do a little bit, but i have others who can help us. if yosan francisco public utilis commission should ask themselves, all of the commissioners, what have they done, concretely done to elevate the condition of those who live in tents? you sha g should go to city haly

to see the tents in front of city hall. they don't even follow the cdc rules. that is the worst type of congregate living. we have to ask ourselves as human beings -- >> thank you, caller, your time has expired. >> operator: you have one question remaining. >> question: this is peter dreckmyer. i read this statement about george floyd and it's highlighted and i thought the statement was excellent and conveyed what a lot of us shared and made me proud of the puc and mr. kelly and i hope, too, it will be published for greater distribution. thank you, mr. kelly. >> thank you, caller. madam secretary, there are to more callers in the cue. queue.

>> public comment on 6a is now closed. general manag manager, next ite. >> this is the sewer system improvement program quarterly update. steve robertson. can i do an audio check to make sure everyone can hear me ok? >> coming in loud and clear. >> i'll share my screen. and give that a second to come up.

>> you can see the 2-point the billion dollar$2.9 billionand fr we closed at 37.1 i 37.1, making progress. we now have what you can see the the blue part of the pie chart at the top, 18 projects in what we call preconstruction, planning decision and award phases. the largest and all green area representing construction shows 16 projects and then in the grey

area to the left, there are 36 projects for which we've moved into the close-out and completed phases of the project. we had some discussions and now with covid, we're meeting virtually and at today's meeting there's an update and that's a separate item on the agenda and i thought it may be appropriate for a slightly different format, focusing on the program metrics and this will keep the presentation brief. i have nine slides and we welcome your feedback as we speltewelcome your feedback.

you can see photos where the contractors have been implementing safe-working guidelines in response to the covid-19 pandemic. and since many of us can't go to the site to see the progress, because it is real, we thought we could bring the site to you and we have some very recent aerial drill footage from may 28th to just the end of last month. while the video is playing, i believe this will be muted so we'll ask questions later.

now we're flying over what is now being demolished as the former asphalt plant. we get closer to gerald and impressive footage to see san francisco laid out like this and we're flying over the former site, which has demolished. as we pass over large white tanks, those are the oxygen facility and you can see the headworks facility coming into play, sort of in the middle of your screen now where the camera rotates around and you can also see the existing part of that building on the left that's still intact. but on the right, the building has gone and demolished seeing some red containers and the crane there.

if we can see my screen again where construction continues. >> your slide is back in the screen.

construction continues across the city and we've shown a few photos and the photo on the left is a combined sewer discharge project and this quarter three of the four csd's and there's the area to roughen up for concrete for a protective coating. the photo in the middle is set green infrastructure. this completed piping and the photo shows grading operations have commenced for the north-end of the project site. on the right, it shows ocean-side plant and this shows the demolition of the gas holding tank that was completed this quarter and continuing with the theme of demolition.

you can see i have a reference for cost expect expenditures to date, current forecasted cost and the cost variance between budget and forecast and you can see a variance at the bottom right of $679 million and the majority of which is from eye bo solids and headworks and we'll cover in the next presentation. then table 3.2. they provide a summary for the additional projects who are added to the program at the end of 2018. we initiated these projects into ssip that were not in phase one but were produced at the large budget cycle as part of the ten-year capital plan and they are positively for flood

resilience and so they're tracked separately in the report. and you can see in this case, a variance at the bottom right of $108 million. so the report helps us to understand the cost safer varias using the health of each project and this table shows a summary and this quarter, rar we're reporting 17 projects, meaning the forecasted cost in the approved budget and there are five projects we would say need attention, indicating that those forecasted costs are over the approved budget and by greater than 1% or less than 10% and 15 projects with forecasted costs over the approved budget which falls into the exceeding limit. in february, we talked a lot about market conditions and other factors impacting our projects. the ssip was last rebaselined in

2018 and we had been attending to rebaseline again after the ten-year capital plan and two-year budget were approved, but, unfortunately, as we've wee been talking, covid-19 delayed some of our plans. hence, there are no projects which meet the respiratory expose i would say it is not good, but to some extent we can appreciate why.

(please stand by).

>> i'm going to stop sharing the screen so i can see folks. yes, it's one of the unknowns we're wrestling with. we have no crystal ball. these are unprecedented times. i think a lot of us at p.u.c. look back to days when the market did turn down, and we were able, to some extent, to take advantage of that. our times are very different now, and when they're unstable, like any economy, there is a risk they could go up or down, and we don't know how cities, countries, and communities will respond, so we need to adapt and make it sustainable as we move forward. we need to use the information we have to be ready.

>> if i may, the other thing that we are paying close attention to is the way businesses cooperate. you know, being social distancing and stuff like that, will go down, so we're balancing that versus, you know, maybe, a lot of construction that is scheduled will be cancelled because of the finances, so we're, you know, sort of unclear how that will balance, but the main thing that i've constructed all the folks is that we didn't want to come out with any new contracts during the period of time of where we had a lot of uncertainty until we had the -- you know, work with the building trade and the unions

and come up with some protocol. so i think the building industry, they are doing an outstanding job of making their sites really safe and efficient. you know, they just really embraced it, and i think they're doing a bang-up job of keeping their sites safe, and hopefully, we'll see that. thank you. >> i have a question. do you think that's why the e.p.a. loans went down so significantly? they were at 309, and now, i read they're possibly at 1.85. is that a stimulus or do you think that's just the way the market is right now? >> commissioner maxwell, this is richard from finance, and i

will be covering the loans later on in the agenda, items 12 and 13. interest rates are historically much lower than they were on the first loan, so we're taking advantage of that. >> thank you. >> anyone else have a question or comment? >> yeah. commissioner paulsen with a couple of questions. one, that was a really good snapshot, including that aerial of really what is happening in the big piece and also, you

know, a good favor of some of the other stuff that's going on, and as my colleague, commissioner maxwell said, the economics of this time are totally unprecedented. this isn't like 2008 where things crashed and whatever. you get wall street booming and because of, of course, so much work that we've done in the bay area, wsip and ssip are necessary work. so some of the other constraints in private sector area construction aren't having -- well, i shouldn't say that because i don't know this -- aren't probably under

the same types of scrutiny. cost shouldn't be discussed in this room as we move forward, and i don't expect it to be a part of what we're going to have to administer as we approve projects and move things forward. and i did have a question in there, and maybe it'll come up in the next presentation. >> mr. robinson, i have just a general question upon reviewing the proposed summaries, and i have taken out all of the southeast, but our other projects, i'm just curious as to why they're running so late.

24 months late, 11 months late, there's quite a few. i'm just wondering if you could give me a general comment on that. >> sure. my initial response would be the schedule response is challenged, and as i was mull -- mulling it over and thinking about the impact of covid, we did have some impact with the virus and the shelter in place, by mid-march, i mentioned that we would have intended to run a rebate

program around this time frame had covid not hit, so now, we're looking at these in more detail, so now, it's more alarming and more things popping up in red than we would like it to be, so we'll be taking a look at more of these things in the future to see if there'll be more green. >> i have a question. i was looking at my notes and this was from 10,000 feet, but when we talk about ssip, am i right that what i heard and saw in the slides is that the entirety of the project, 38% of it, you know, is complete or almost complete. there are 32 projects that are -- you know, you can see they're on their way to close

down, and there's 16 other projects that are ready to be -- you know, they're in preconstruction and design, what's going on. when people look and say what's going on, any way? 38% complete, 32 are about done, and we've got 16 more that are in the pipeline that we'll be managing. is that a fair -- is that a fair back-of-envelope statement? >> yes, i think so, commissioner. the intent of that pie chart is really to provide a snapshot of the progress of the through. that number, that $2.97 billion has not changed, but we look

forward to the advertising of the projects, and we want to think how we best report that. >> okay. thank you. >> madam president, if i might when i was looking through the report, as others have commented, there were a whole lot of red dots in there, and i was trying to get a sense of what that was about, and i expected to see a lot of covid-related delays, and so i -- actually, relatively little of that, that there were a lot of other factors, you know, like dealing with multiagency projects, one where i think it was the unified school district actually didn't have the legal capacity to review contracts. i think it would be helpful, to

me, any way, if you could group what some of those are. we've had some discussion about it, but also look to -- you know, these are the factors that are making our planning, you know, less reliable than we would hope. you know, how do we think about those factors? can we do, what are we doing to address them? so aside from just rebaselining, if we can get a wind of the underlying causes and have that discussion, i think that would be helpful. >> yes, thank you. >> also -- this is harlan. some projects, when we found out -- when we've got from 35 to 65, we've seen a significant increase. we purposely thought about

looking at what we can do to bring the costs under control. you want to think about how you can bring this project back into alignment, so we realized that there were great opportunities to reduce this budget down, and we took the time to do so. so we took the time to redesign stuff so we can be more reasonable with the costs, so i just wanted to point that out, but i agree with you, commissioner moran, that we should group them into these categories, you know, ones that just fell behind because of scoping, bringing in the budget. [inaudible]

>> -- john, at the following meeting. i think we would all look forward to seeing that. >> yeah, that would be great. >> any other comments, commissioners? madam secretary, could you please open this to public comment? >> clerk: members of the public who wish to provide comment on item 6-b, dial one,

and then zero, to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, there is one caller in the queue. >> clerk: thank you. >> operator: you have one question remaining. >> oh, good. commissioners, i know the presenter. i've met him a couple of times, and i can see he's taken a military approach to this

project, but there's a lot of history, and now, we have mr. robinson, who was handed a project. and the public needs to know that initially this project supposed to cost $6 billion, and now, we are looking at $15 billion. and if you are a commissioner, and you are looking at a projective sum of $16 billion, you have to have some justification. this project still has the stench that goes as far as two

miles down. how can we resolve this as soon as possible? and for how many customers, people that endure the stench? so you can come up with statistics, 28% or 34% or whatever is complete. but how are you best addressing quality of life issues? how can you get rid of the stench? >> operator: thank you, caller. your time is up. >> clerk: are there any other callers? >> operator: there are no other callers, madam secretary. >> clerk: thank you.

public comment is closed. >> commissioners, any further discussion? next item, please. >> clerk: madam president, the next order of business is item 7, sewer system improvement ledger project update. >> thank you, president caen, commissioners. firing up my screen again to share. [inaudible] >> it's been a while since we provided updates on our major projects in the southeast area, so we thought it would be appropriate to briefly cover the biosolids had works and the community center at 1550 evans, even though the center is not part of the sewer system improvement program, it is still part of our wastewater capital plan, and all three projects are very active in the

community right now. in these challenging times, we need stability, and we are literally working together, building foundations. our construction has continued during the covid-19 shelter in place, and we can say that demolition is complete. we have torn down the old and need to complete the new. as harlan said, we are recovering, but we also have an opportunity to reimagine our future and recognize that as we are talking about our market conditions and economy that will continue to change. we have three project managers, but in the interests of time, i will present all three projects

and will make them available for questions. you can see some of these, and we last presented an update in february, where we took a hard look at how the costs increased, and how we were able to make the project affordable again. as we showed you back then, this slide shows the new proposed budget project that we had forecasted. the approved budget baseline is $1.27 billion. that's an increase of the 400 million that we talked about, and so hence, we have one of those red dots. the first bullet is about design, redesign, and construction going on concurrently. it's the benefit of the

construction manager general contractor, cmgc that we talked about. final documents are scheduled in early 2021, prioritized for what needs to happen for construction. second bullet celebrates completely of demolition like we saw in the flyover earlier. project schedule at the bottom. this, again, shows the same completion by 2027 that we presented back in february as a red dot, but it is holding stable, hence, our cost production, it is holding stable. so for the same response to market conditions and cmgc, we now have greater clarity of what it will take to do a megaproject of this side, and it is better to know now so we can adapt. so since the major project milestone is the demolition of central shops, i will risk showing in the same way a small

video. this is shorter, and it is a time lapse of demolition of central shots, and you can see literally the speed with which those buildings came down, so bear with me a second while i fire up the video. it is coming through momentarily. the three web cams that are installed for the construction of the project document, record, and observe over time, you'll see one of those trees disappeared. our view is clearer now, and you can see one of the buildings start to go. the process of demolition takes the first out, and the second, and now, a little bit of a

remainder, and now you can see what it looks like with both those buildings gone, and the site clears. we'll stop sharing and go back to...issues and challenges that we summarize in the report, a lot of these were very consistent. we just talked a little bit about them, as well. construction and impact associated with the market conditions, and we mentioned back in february, as well. and then, of course, the covid impacts, covid-19. unlike the question we had earlier, we opted in the quarterly report to put a programatic response. there were a few cases for individual projects that we called out where there was a

very specific cause for concern. in this case, pg&e power supply to that end that we demolished remained in place, and pg&e struggled to respond to that request to disconnect power so work could continue. modifications to the contract that we talked about in february. now that we looked at the cost reduction efforts and how even some of the terms of that contract changed. the next big lift for the project, now that the

facilities have been demolished. closure of jerold street in fall, and there's $6 million of construction to be advertised in the next year as we work on the next phase of construction on this project. next, we have the southeast head works project. you can see on this some really amazing photographs and construction in some really small, constrained spaces. the quarterly report shows a budget of $418 million, so what you're seeing now is a forecast of $200 million more, even with some reconfiguration of scope and price reduction, a more

accurate projection. we have reached 95% construction completion and expecting to reach final by september. scope three is the main head works, the largest of three construction, which includes fine bar screens, grit, and handling systems in order to control. we've given notice to proceed and p.p. has started the drill

operations this week. as we previously reported late last year, the cost of head works was trending higher. continues to do so for the same reasons we talked about today -- market conditions, etc. in our cost reduction efforts, we have worked together to provide the least expensive alternatives, and as a result, we reconfigured those scopes from a brand-new 50 n.g.d. pump station to rehabilitate the new pump station. project schedule at the bottom gets a green star, so that's good news. it is on schedule. there's a huge effort by the team to keep it on schedule. it's critical for success and

what happens to the entire plan, and same thing, you know, second slide on this project to think about, how those costs impact the project about literally structural concrete, process piping, and electrical resources, but also covid-19 safety requirements. this is not a huge income. heavy lift around the drill piers and foundation construction. we've changed our path, and you can see in the slide, a 3-d model of the construction station rehabilitation work. the head works construction

project continues to be making great progress overall. in addition to supporting the heavy construction, we will be bringing our project design and contract amendments to you for approve as well as the cmgcs, as well. thirdly, last, certainly not least, the southeast community center at 1550 evans, the project gets a green star, but we are experiencing the market conditions that we are experiencing across the line as a whole. we will know the moment those trade packages are awarded.

[inaudible] >> demolition and grading is complete, like you can just about see, but you can see where the piling operation is going on, and now we're literally building those foundations. 92% of those trade packages have been awarded, so we're well underway. the project schedule gets a green star, on schedule, doing what it needs to do. from issues and challenges perspective in the quarterly report, we talked about similar concerns. this project, also, too, had challenges with pg&e being able to disconnect, scheduled for last month, excited and proud to, to be able to say with lots of effort. pg&e did disconnect that power, and also for this package, acknowledging that we're currently on budget, but those trade packages are still trending higher than we had hoped. so as we look ahead, you can

see a rendering that we might be familiar with on the screen, and now, you can see a more recent rendering that has been produced, with a few looking across third street. we are working with the utilities, pg&e, to allow that to be progressed, and we will look towards the contract amendment to adjust to our changing conditions. so to finish, this is a screen shot, my last slide, from aerial drone footage of the last presentation. it highlights our three projects, really interesting panorama. there's a lot going on at coordination of these projects and ensuring their impact on the community is a positive one. it's a big undertaking, and we may not always get it right. these are challenging times

that we've been talking about, and for lots of different reasons. a huge thanks and lots of appreciation goes out to the entire team, especially to our frontline construction workers, who are keeping us moving forward. so this includes our project update on all three of these. we'll of course be coming back in the future to cover more regular meetings, but we're happy to answer any questions now if you have them. >> commissioners. >> madam chair -- yes, madam chair. on the closure of jails, how long will it be closed, and what are you doing to mitigate the traffic issue? that's a thoroughfare directly to the freeway for trucks, for the community, so what are you doing to mitigate that issue? >> thank you. let me just stop sharing the

screen, and i may ask the project manager to chime in for a second. we know that there's been signaturout reach to impact -- signature outreach to impact traffic flow to jerold. th there has been a lot of engagement, but i wonder if carolyn include c carolyn chu can speak to some of the efforts that we've been making. >> and also, i want something in writing about the mitigation, the plans that you have that's best for routing. there's a lot that goes on in that area, and what's the best mitigation for that. >> yes. >> hi, everyone. can you hear me?

this is carolyn chu, p.m. for the biosolids project. commissioner, you asked a very good question. we are developing plans and looking at detour routes and plans for closure across jerold. we're kind of closing gerald to control that worker and neighborhood safety during the course of construction. i think the planning process, as steve said, you know, we're looking at the duration of the construction, but -- and we are working closely with sfmta, as well, to develop those plans, and one other thing was we are also, you know, concurrent with that, doing a lot of advance outreach in coordination and letting the local neighbors and visitors know -- we haven't gone up there yet, but we're working with our p.u.c. team to develop that outreach strategy

to make sure that, to the extent possible, we want to minimize the impact to the local neighborhood, but understanding that we do need to close jerold because of the construction work that we just showed you. >> okay. i think i'd like to see your outreach schedule and what you plan to do, and i think it's also important to know that, you know, there's only a couple ways to get out of bayview. you don't have -- third street is not one of them, so those ramps are extremely important. so yeah, any way -- i lost my train of thought, but i'd like to see that. also, when you say fall, that's only a couple of months now. we're almost in july, august, september, october, that's

maybe only three months, and you don't seem to be that far along the way for such a huge undertaking. >> so i would say i understand, commissioner, i hear you. what i've captured and written down is a written rule box mitigation plan around jerold. >> and i'm concerned around your timing. you said fall. fall, for me, is september, and that's only a couple of months. >> but i don't know if -- i know, you made -- carolyn may want to share the conversations with a lot of communities way in advance because we want them to know what -- the impacts to their businesses, so it's not like we haven't started the conversation. juliet and i were involved early working with public works and a whole bunch of folks to

try and get their input, so any way, i think it's part of this ro -- as part of this robust plan, we should give a timeline of all the things that we've done and all the things that we plan to do so we can just paint the big picture. it's not that we could have done more -- >> i'm not trying to make a judgment on what you've done or haven't done. i'm just asking that since you're saying that it's coming up in the fall, you say you've done outreach, but i'd like to know what's become of the outreach. if you're going to close this for two years, and it's a major thoroughfare to get to the freeway, and people do it every morning, i'm sure that you have, but there's some things that you can say that people are looking at. oakville streets you're going to

advance, oakville is one of them. it seems to me if you're going to be talking about october, that's in a couple of months, that's what i'd like to see. but what have you come up with, the actual plan, is what i'd like to see. and then secondly, you mentioned you're keeping the old -- you're revamping the old odor control or whatever it was, and i'm just concerned about odor, since odor was one of the huge issues of the community. so if we're revamping something, is that in any way going to have a -- any way be less than what it would be if it were new. >> yeah, i can help clarify, clear up some confusion there. there were two significant changes where the rehabilitations of the lift station, the pump station that

literally lifts the flow into the head works facility, we're not rehabilitating an existing odor control facility. it is brand-new, state of the art. by changing the view from the pump station, it allows us to modify both the location and the position, and it will still hold them to the same standard, so we're not rehabilitating anode or control facility. it will be grand new. >> okay. and then back on the traffic control, we're not meeting in august, august 11, and september is right around the corner for fall, so how soon can you give me that robust plan that you're talking about as far as traffic and so on? people are going to be getting back to work, people are going

to be getting more school buses and so on, so when do you think you can get that back to me? end of june? >> if i remember, a traffic study has been completed. analysis is complete, and i feel like we can get something like that done relatively soon. carolyn? >> yes. we can share with you what we submitted as a preliminary draft, sfmta, because they're part of that process, that street closure, so we can provide that information you providyou -- we provided them, and then you can ask questions. >> i guess what i'd like to see is what the m.t.a. has come up with, how they're going to reroute, what that's going to look like for the community. that's my main interest. so i understand what you're

going to do. i want to understand what they come up with, with what they're going to do, and how they're going to mitigate that. okay. i guess we're not -- i'm not really interested in what you're sharing with them, i'm interested in what they come back with. i'm assuming you already shared it. now what have you call come back with, i guess that's what i want to see. preliminarily, what have you come up with? >> with the desire to see what it will actually look like and what we have come up with

together with m.t.a.? >> but preliminarily. i'm not sure it's all worked out yet. >> i'll look into that with carolyn and when it's going to get there, and make sure you have that within the timeline. >> thank you. thank you. >> commissioners, any other questions? comments? >> i see one. >> yeah, i just wanted to chime in there. and so in addition to that, i think it would be helpful to understand sort of what the outreach has been and how the community has responded, as well. [inaudible] >> -- for the alternative transportation and what the response has been, so the communications piece, i think, as well, would be helpful. >> commissioner viator, i think i heard most of that, but i

think it was what outreach has occurred to today and what would the plan look like? >> yeah, specifically on the plan. so has the plan been presented to the community and how have they responded? are they following the plan, or they're upset and say great? that alternative will work fine. >> okay. thank you. >> yeah, i gijust wanted to al add because we're doing outreach in certain groups, so we just wanted to, you know, highlight their concerns and how we're mitigating their concern, and then, we will provide them. >> madam secretary, could you please open this to public comment?

>> clerk: members of the public who wish to provide comments on item 7, dial 888-273-3658, access code 3107452, and pound, followed by pound again. dial one, then zero, to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, there is one caller in the queue. >> clerk: thank you. >> operator: you have one question remaining. >> commissioners, let me speak to the outreach.

if the outreach is controlled by dwayne jones, miranda jones, and as i heard the man saying, they had one meeting at a community church, bluffed the people. please don't bluff the people. the demographics of the bayview have changed drastically. latinx, chinese, white, asian, and if you don't look at it that way, you're not going to do it justice. as for people moving from one

area to another area by cars, by the bus, by the light rail bus that is now being repaired, you all have no clue what is happening. you commissioners have no clue what is happening. and from me listening to this other woman that's chiming in, she has absolutely no clue what is happening. get your act together. besides, you have a contract with emerson, the emerson contract. i read it all, and we have an investigation, with some names being spewed out. you all are asking to be investigated. you all are asking to be investigated by the federal bureau of investigation. >> operator: thank you, caller. your two minutes have expired.

madam secretary, there are no other callers in the queue. >> clerk: thank you. that closes public comment on item number 7. >> commissioners, any further discussion on this topic? mr. robinson, thank you very much for your presentation and for bringing us up to date. >> thank you. >> next item, please. >> clerk: madam president, next item is item 8, new commission business. >> any new business? vice president viator? >> thank you. so i didn't know whether to bring this up after harlan made -- the general manager made his statements about the letter that he sent or now, but i -- as i believe most of us all were, were extremely

disturbed by what happened with george floyd and the video, and the ensuing uprising has been helpful in that once again, we are having to strike out and fight against structural racism that is present, i believe, in our society. and i believe quite strongly that we as a commission, not just our general manager, should make some kind of a statement and take a position, and i would like to propose that we do that via a resolution that does state several of the policies and the work that we have done in the past but really pushes us to double down and go even further, so take a stand against systemic racism and oppressive violence, and to also recognize that covid-19

disproportionately hitting communities of color, so recovery is going to be a challenge, especially because systemic racism is prevalent. i think as an institution, there are things that we can do to show our commitment that we are already doing as a p.u.c., and especially under our leadership, under general manag manager kelly's leadership, but i don't know if we're doing enough implicit bias trainings with the staff, if we're doing as much as we really could for black and brown people. i also think that we could be doing more to review our own practices and policies to make sure that we're not inadvertently behaving in ways that promote or advance racism

in any way, and i just would not feel right if i did not say something in that vein in this commission and state what we've done to combat structural racism and do as much as we can to avoid it in the future. >> this is commissioner paul sopau paulson. i would like to volunteer to be on that committee. what i do is i fight for social and economic justice. i also live in a world where we waste more trees than anything

else in the history of the earth, and actually doing something is obviously what at least i think about when things put together. and as i've done this on other sides, i don't want a bunch of platitudes out there. harlan, it was a very well drafted statement, so i appreciate that on behalf -- as a commissioner, and your leadership on that, but i want to make sure that we say something that we mean. not just a condemnation, but do something affirmative because there's a lot of things that we're putting into judgment right now, but what are we

going to do about it? i don't feel like just being a signature on a great looking piece of paper. if that's something the commission wants to do, is going to do, i want to be a part of that. i've got my commissioner hat on when i say this, so if you're going to do something like that, it's got to be as commissioners on the public utilities commission that has a statement about what, you know, we've been entrusted to do. so i've gone on longer than i expected to, but i just -- i don't want to spin wheels on this stuff in these incredibly challenging times. >> madam secretary, i would like to turn to you on this.

>> clerk: yes. because this item has not been agendized, i'd recommend against further discussion of what you want, and i'd recommend this be placed as a future agenda item. >> madam chair? >> yes. >> i'd like to have a report from h.r.c. on the status of black and brown people on the p.u.c. who are working, especially the status of black and brown women, where are they in management? are they on the lower side, labor side, where are they? i'd like to see something like that in writing. >> well, i would like to put this in motion, so would this be something that -- well, mr. kelley, what do you think?

>> madam chair, i was thinking of, like, a report or something that we could see, so it would be sort of like a report, i guess. >> yes, i understand. i wasn't reflecting to what your statement was. no, i was just talking about we could not really discuss this now because it's not on the agenda, but that doesn't mean that we can't start something that we can discuss the next meeting, so i'm turning to you, mr. kelly, in terms of is this something that a.g.m. ellis would start to put together? >> yes. i think this is something that i would personally be involved with, and i hope that it will

be something that a whole bunch of folks will participate in. we recognize the things that we've done, but we need to talk about what else we can do. and i just wanted to get back on it because, you know, to have meaningful change, it will take time to understand what the changes you need to make that are meaningful. so we can start the dialogue, and then, when we agendize it, we can have a deeper dive on this conversation because i do have some deep thoughts about things that we may want to put in there. >> i'm not quite sure i'm getting it. are you talking about a report or resolution? i don't know how long that would take to find out where the state and status of black and brown people are in the p.u.c.? i mean, you have who they are

and where they are, and, you know, to see what jobs they have, and then, we go -- that's one -- maybe that's one tool we can use to -- for the other. >> so commissioner, i just want to let you know, i wasn't referring to your -- >> okay. thank you. >> we're going to talk to sheryl davis and see what information she has. we do have some of that information so we can cross-reference, and so we can provide that information to you. i was just referring to the first request. >> yeah, and that can help, actually, with the first request, when we know where people are. mm-hmm. thank you. >> and just to sort of refine it without discussing it, you know, my hope is that at the next meeting, we can have some kind of a statement document led by our general manager and with our support as a commission that would really outline what we as a commission

and as an institution could really do to help bring to life and advance some of the points that the general manager brought up in his letter, but to really be of support to him because i think it's really po important, and to the entire p.u.c. team, because it would drive us, to commissioner paulson's point, to more than a really lofty statement, but what it can do to help us advance the issue. >> yes, i think we can all help on that, so let's move forward to the next meeting. okay. any further comments? so any other new business?

madam secretary, please open public comment. >> clerk: members of the public who wish to comment on new commission business, dial 888-273-3658, access code 3107452 and pound and pound again. dial one and then zero to be added to the speaker line. mr. moderator, do we have any calls? >> operator: madam secretary, there are no callers in the queue. >> clerk: thank you. public comment on item 8 is now closed. >> next item, please. >> clerk: madam president, your next order of business is item 9, consent calendar. all matters listed hereunder

constitute a consent calendar are considered to be routine by the san francisco public utilities commission and will be acted upon by a single vote of the commission. there will be no separate discussion of these items unless a member of the commission or public so requests, in which event the matter will be removed from the calendar and considered as a separate item. >> commissioners, are there any items you wish to review? could you open this up for public comment? >> clerk: members of the public who wish to comment, dial 888-273-3758, 3107452, and pound, and pound again. dial one, and then zero to be added to the speaker line.

mr. moderator, do we have any callers? >> operator: madam secretary, there are no callers in the queue. >> clerk: thank you. public comment on item 9, consent calendar, is now closed. >> may i have a motion and a second to approve the consent calendar? >> so moved. >> second. >> thank you very much. madam secretary, please call the roll vote. [roll call] >> clerk: you have five ayes. >> the motion carries. next item, please. >> clerk: your next item is

item 10, approve amend number 2 to agreement number cs-389 and authorize the general manager to execute this agreement, increasing the agreement amount by $21 million and increasing the agreement duration for two years for a total not to exceed of $54,500,000 and a total agreement of 11 years subject to the board of supervisors approval. this will be presented by kathy how. >> good morning, commissioners. kathy how. as program director for wastewater capital, this program is to request that we increase the dollar amount for carollo engineers. that would allow them to do the

design of the existing station at the southeast plant, rather than constructioning a -- constructing a new $50 million gallon lift station and would allow them to do a design of the head works odor control facility and also look at the drill pier test program to optimize the foundation design with the cmgc contractor. so i can answer any questions. >> any questions? seeing none, could you open this up to public comment? >> clerk: members of the public who wish to make public comment on item 10, dial 888-273-3658, access code 3107452, and pound, followed by pound again. dine one and zero to -- dial

one and zero to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, there are no callers in the queue at this time. >> clerk: thank you. public comment on item 10 is now closed. >> may i have a motion and a second on this item? >> move to approve. >> second. >> madam secretary, roll call vote, please. [roll call] >> clerk: you have five ayes. >> the motion carries. next item.

>> clerk: next item is item 11, adopt resolution rescinding commission resolution number 20-0091 adopted on may 12, 2020, and approving the water supply assessment for the proposed san francisco gate way project. this will be presented by mr. ritchie. >> yeah, commissioners, steve ritchie. on may 12, you approved the resolution for this project. in that, there was a mistake for which i need to take responsibility in that an item was not contained in the agenda item, so it's recommended that we bring it back to the commission with the full item intact for consideration. it's a water project down in

the bayview. this is merely to provide it to the planning department so they can do a ceqa review on the project. >> any questions? any discussion on the topic? madam secretary, please open to public comment. >> clerk: members of the public who wish to make public comment on item 11, dial 888-273-3658, access code 3107452, and pound, followed by pound again. dial one, and then zero, to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, we do have callers in the queue.

>> clerk: thank you. >> operator: one question remaining. >> hello. as you know, i'm concerned about san francisco approval so much development while at the same time the state water board -- [inaudible] >> i'm also concerned about the jobs-housing imbalance -- [inaudible] >> project, which is jobs heavy. [inaudible] >> -- there will be a lot of pressure to build more housing which will take even more water. i encourage you to do two things. a breakdown between projected jobs and housing build, and projected water demand will be required as the city catches up on housing required by the

project. nerd, consider the cumulative impacts of the project on water supply. also, development is driving the need to develop more expensive alternate ti expensive alternative water supplies. perhaps new development should pay for the more expensive alternative water supplies that they'll require. thank you. >> clerk: do we have any other callers? >> operator: madam secretary, there are no more callers in the queue. >> clerk: thank you. public comment on item 11 is now closed. >> commissioners, is there any further discussion on this item? >> yeah, i have a -- [inaudible] >> may i have a -- okay. >> yeah, i'm still in the same

position on this one, and peter got on that a little bit. i just don't understand, the accumulative impacts of development on our water supply is just the elephant in the room. i'm starting to get a graph on the report, and that's why i cutoff this. if we indeed need to comply with the state mandate, and we keep moving forward with these water supply assessments, these developments, i don't understand where we're going to get the water for the fish. so until i have a better understanding of the water supply both for the developments and the fish, i'm not going to support the w.s.a. >> okay. any further -- >> this is commissioner paulson. i just want to remind myself and everybody else that we are

not the planning commission. therefore, i will be voting for this because i believe, you know, that is what the professionals have put together as the assessment as to what is going on. what is going on in terms of development is a separate item. thank you. >> commissioner moran? >> thank you. the last time i looked at this, i mentioned the issue of materiality, and i didn't have any members at the time. i do now. just setting the stage. our full retail demand is somewhere in the order of 60 or 70 m.g.d. the impact of the delta plan on our supply would be somewhere in the area of 93 m.g.d.

the impact on this -- of this project, as i got the number from staff is .000849 m.g.d., so i don't see where there's any combination of circumstances where this project would affect either our ability to provide water to our customers or to provide fish flow. so from that standpoint, from the materiality standpoint, i'll be supporting this resolution again. >>

question is absolutely the right question. i just don't think that -- i think when we -- when we get there, kind of reading the crystal ball and having a sense of the numbers out there, i

don't think it's going to have a significant effect on any project that we're going to take or it wouldn't be a determining factor for fish flow. and that remains to be proven as we go forward, but that is my sense of it and why i'm very comfortable supporting this. >> any other comments? may i have a motion, please. >> can i just point out one thing? these projects are the projects that you want to move forward because of the water conservation that it has, and all the systems and stormwater management and stuff like that, so these projects are very small incremental because the usage is the way we want to move projects in the future, so i just want to throw that out

there, as well. >> very good. again, may i have a motion? >> so moved. >> i'll second the item. >> i will second -- okay. thank you very much. madam secretary, roll call vote. [roll call] >> clerk: you have three ayes, two noes. >> the motion carries. next item, please. >> clerk: madam president, would you like me to read 12 and 13 together? >> yes, please do. >> clerk: thank you.

i'd 12, approve a water infrastructure finance and innovation wifia loan agreement with the united states environmental protection agency in the amount of $699,242,023 to replace the existing 2018 wifia loan agreement in the same amount for the wastewater enterprise's biosolids digester facilities project for the purpose of reducing the loan interest rate from 3.09% to an estimated 1.84% interest rate, and item 13, approve a new water infrastructure finance and innovation act loan agreement with the united states e.p.a. in an amount up to 525 million, both of which are projects of the sewer system improvement program

located at the southeast treatment plan, and they'll be introduced by mr. sandler. >> although the items are quite interrelated, they will require separate actions from you two today. by way of background, in 2018, the p.u.c. executed a wifia loan with the united states environmental protection agency. wifia is an acronym for the water infrastructure finance and innovation act and provides low interest loans to municipalities for qualified wastewater projects. the 2018 loan, which is in the approximate amount of $699 million, partially funded the biosolids project. it was executed at an interest rate of 3.09%, which at the time was a very low interest rate relative to where the

market was at the time and relative to what we would have been paying had we issued revenue bonds, which is our default long-term funding mechanism, so it looked real good back in 2018. so the first of your two items, item number 12, asks you to approve a replacement to the 2018 loan, or a reexecution that will reduce the interest rate to a level representative of today's interest rate environment, which is much, much lower than where rates were when we executed the 2018 loan. in today's market, the rate on a loan would be approximately 1.86%, almost half of the interest rate on the 2018. all the terms and conditions on the loan, including the $699 million loan amount, would remain the same as the 2018 loan. the second of your two items, item number 13, asks you to approve a new wifia loan in an

amount not to exceed $525 million. this will provide funding for two projects at the southeast treatment plan, the head works plan, and partial funding of the estimated incremental cost related to the biosolids redesign. it will have an interest rate of 1.86%. at these rates, the wifia loan will save taxpayers approximately 336 million over the life of the loan for the first wifia loan, and the second will save taxpayers approximately $275 million over

the live of the loan. should you approve these two loans today, we expect to execute them this friday, june 12. that concludes my introduction to these items, and i'm happy to take any questions. thank you. >> commissioners, any questions? comments? sounds like great news to me. madam secretary, please open public comment. >> clerk: i'm sorry about that. members of the public who wish to make public comment on items 12 and/or 13, dial 888-273-3658, access code

3107452, and pound, followed by pound again. dial one, then zero, to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, there are no callers in the queue at this time. >> clerk: thank you. public comment on items 12 and 13 are closed. >> so we are going to be voting on these separately, so first, i would like a motion and a second on item 12. >> so moved. >> second. >> okay. >> i'm sorry. who was the first?

>> tim. >> who made the motion? >> paulson. >> commissioner paulson. commissioner maxwell seconded. >> roll call -- oh, you're doing the roll call. >> clerk: yes. [roll call] >> clerk: you have five ayes. >> the motion carries. now i need a motion and a second on item 13. >> move to approve item 13. >> second. >> may i have a roll call vote? [roll call]

>> clerk: you have five ayes. >> the motion carries. next item, please. >> clerk: item 14, adopt a resolution, one, accepting the report on the san francisco p.u.c. wildfire mitigation plan in accordance with the p.u. c-section 8387 c, and two, accept the version of the sfpuc wildfire mitigation plan, to be committed to the california wildfire safety advisory board

prior to july 1, 2020. this will be presented by steven ritchie. >> good afternoon, commissioners. an independent evaluation was conducted earlier this year, and completed, and the independent evaluator made some recommendations for minor modifications to the plan, so the plan is now brought back to you because you're required by law to accept the independent evaluator's plan. i'd be happy to answer any questions. >> commissioners, any questions? comments? madam secretary, could you please call for public comment? >> clerk: members of the public who wish to make public comment on item 14, dial 888-273-3658, access code

3107452, and pound, and pound again. dial one, and then zero, to be added to the speaker line. mr. moderator, do we have any callers? >> operator: madam secretary, there are no callers in the queue. >> clerk: thank you. public comment on item 14 is now closed. >> may i have a motion and second on item 14? >> move to approve. >> second. >> madam secretary, a roll call vote. [roll call]

>> clerk: you have five ayes. >> the motion carries. madam secretary, could you please read the items that we are going to consider in closed session? >> clerk: item -- i'm sorry. item 17, existing unlitigated claims, item 18, existing unlitigated claim, item 19, state water board cases, sacramento superior court jcc 5013, originally filed on january 10, 2019 in tuolomne

county superior court, case number cu 62094, and item 20, conferring with or receiving advice from city attorney rathering existing litigation in which a -- regarding existing litigation in which the city is the petitioner and pacific gas and electric is an adverse party. >> please call for public comment. >> clerk: members of the public who wish to make public comment on closed session items 17 through 20, dial 888-273-3658, access code 3107452, and then pound, and pound again. dial one, and then zero to be added to the speaker line.

mr. moderator, do we have callers? >> operator: madam secretary, there are no callers in the queue. >> clerk: thank you. public comment on closed session items 17 through 20 and now closed. -- 20 is now closed. >> next item? >> clerk: item 16 is a motion on whether to assert the attorney-client privilege regarding matters listed as conference with legal council. >> move to assert. >> may i have a motion -- >> second. >> -- and a second, please. madam secretary, a roll call vote, please. [roll call] >> clerk: we have five ayes.

>> the motion carries. >> madam president, excuse me, but may we take a five-minute break or a three-minute break? >> that is exactly what i was going to ask. >> great. >> and is there any reason we can't take a five-minute break? >> no, madam president. my recommendation is we go into closed session first and then take a break. >> okay. we'll go into closed session and take a break. so we are now going to go into closed session. >> all right. moving everybody now.