>> [roll call] . we have eye -- a quorum. >> commissioner harrington. >> welcome. >> thank you. >> due to the covid

[indiscernible] being held via teleconference. for those watching the live stream be aware there's a brief time lag between the live meeting and what is being viewed on sf gov tv. i'd like to extend our appreciation to the staff for their assistance during the meet. if you wish to make a public comment dial 1-415-655-001 [audio digitizing] i'll ask asking to keep muted and item 19 has been removed from the agenda and we will not hear closed session item 19 the other closed session item will

remain on the calendar. the first order of business is the annual election of officers. at the first regular meeting of the commission after the first day of october each year the members shall elect a president and vice president of the commission to serve a one-year term. commissioners you, will first nominate the elected position and elect the position of vice president. public comment will be taken separately on each. [indiscernible] >> members of the public who wish to make two minutes of public comment dial 1-415-655-001 on the election of president. meeting i.t. 146 534 1295.

to raise your hand to speak press pound pound. mr. rod -- moderator do we have any callers. >> madame secretary, there are callers. caller your line has been unmuted. you have two minutes. >> caller: my name is francisco and the san francisco public utilities commission is at a crossroads and we need some

stellar leadership. and i have two candidates that i would like one to be the president and one to be the vice president and i will say at this junctu juncture mr. harrington for president and mr. moran for vice president. thank you very much. >> thank you, caller. madame secretary there's no more callers. >> clerk: that closes item 3 the position of president. . [indiscernible] these nominations require a second and we'll discuss the nomination.

if there's only one nomination i'll call for a motion and if it requires a second we will vote. if there is more than one we'll consider nominations on each in the order made until we elect a president. so with that, the floor is open for nomination for the office of president. >> i nominate sophie maxwell for president. >> thank you. were there any other nominations? seeing none, the nominations are closed. mr. harrington will close and second the item? moved and seconded.

madame secretary call the roll. >> clerk: [roll call] you have three ayes. >> congratulations, commissioner maxwell. i'll hand you the virtual gavel. >> thank you very much. i appreciate the nomination and i appreciate the vote of confidence. i also would like to just thank all of you but especially anne for her devotion to the city and commission. she was actively committed and i will not say i hope to do the same but i really appreciate all she's done and all that she's meant to our city and

commission. [audio digitizing] nominations for maybe public comment first and then we'll ask for nominations for vice president. madame secretary. >> clerk: members of the public who wish to make two minutes of comment on the election of vice president dial 1-415-655-001. meeting i.d. 146 534 1295, pound pound. to raise your hand to speak press star 3. mr. moderator, do we have any callers. >> we have a hand raised and

then it was unraised. let me see if i can reach out and see nay meant to keep their -- they meant to keep their hand up. >> thank you. >> caller, did you intend to lower your hand or want to make public comment? madame secretary there's no other caller for the item. >> clerk: it is now closed. >> commissioner: there'll be a nomination that does not require a second and then a vote. nomination for vice president,

ed harrington. >> i'd like to nominate mr. moran. >> i'll second the nomination. any further nominations? seeing none the nominations are closed. first and second. thank you. you had a nomination now we need a second. i'll second that. it's been moved and seconded. madame secretary give us a roll call vote, please. >> clerk: [roll call] .

>> commissioner: thank you for being willing to take this on. madame secretary read the next item, please. >> i'd like to make a comment. this is tim paulson i'd like to thank both of you for stepping up to service and looking forward to working with both of you. i also want to say i don't know if that came in the minutes a few minutes later that really welcoming ed harrington and his experience and our friend over the years to be one of our colleagues as we serve so congratulations to the two of you. >> thank you.

madame secretary, next item please. >> the next item of business is item 4 approval of the minutes of september 22, 2020. >> are there any correction to the minutes or discussion? seeing none and may i have a motion and second to approve the minutes. >> i'll move the minutes. >> second. >> madame secretary. >> members of the public who wish to make two minutes of public comment on item 4 approval of the minutes of september 22, dial 1-415-655-001 meeting i.d. 146 534 1295, pound pound. to raise your hand to speak president star 3.

-- press star 3. >> while we're waiting sit appropriate for me to vote on the monts or abstain? what's the right answer? >> commissioner, you may vote on the minutes. >> okay, thanks. >> madame secretary there is one caller in the queue. you have two minutes, caller. >> caller: greetings. i'll have more on the next item but on the minutes first of all, yes, commissioner harrington you may vote on the minutes and can't abstain as you'll recall and second on page 8 of the draft minutes at the bottom the commission entered close session at 4:30 p.m. i believe the minutes are supposed to indicate who was present in closed session pursuant to the sunshine

ordinance so the minutes can be amended to reflect that. thanks. >> i'll do that. >> madame secretary there's no more caller in the ku. -- queue. >> commissioners i would ask you amend the motion to approve what was on the table to include the amendments on the closed session. >> public comment is closed i assume and madame secretary would you include the amendments? >> yes, i will. >> commissioner: thank you. now may we have a roll call vote. [roll call]

>> will madame secretary would you read the next item. >> the next item is item 5 general public comment. members of the public may address the commission up to two minutes for matters within the jurisdiction and not on the agenda by dialing 1-415-655-001, meeting i.d. 146 534 1295, ##. to raise your hand to speak press star 3. mr. moderator, do we have any callers. >> madame secretary there are multiple callers in the queue wishing to be recognized. >> thank you.

>> caller: the commissioners again i hope you start with a new slate. we have a dark cloud over the san francisco public utilities commission and as you all know and the public knows by now people are jumping off the ship. and we need to have some sort of clarity as to how we're going to proceed in the future. the sewer system improvement project start with a $6 billion budget. it's now $12 billion and growing.

and i hope in that context we have transparency and accountability. it is for that reason and that reason only i selected two you to lead the sinking ship. this ship is sinking. we need somebody with good leadership. a good leader knows the way, shows the way and goes the way. thank you very much. >> thank you, caller. >> caller: david pillhil a number of items. number one, welcome to

commissioner harrington the fourth general manager to serve. two, congratulations to the new commissioner officers who i anticipate will serve us well. three, i appreciate former members cain and vitor who both served well and should be honored for theirlong-time service on the commission. four, we'd like to pay our outstanding p.u.c. bill and wondering when that can be done in person to get a receipt? perhaps the general can address that? item 5, keep up the good work on infrastructure maintenance including linear asset management. six, in memoriam i note the passing of jim salerno.

protected public comment in the environment and was a good guy and karen kubick's husband. i'm also not getting closed captions for this meeting if someone can check with sf gov tv that would be great, thanks. finally it's nice to be heard at a public meeting and i've always felt heard at p.u.c. meetings and they anticipate continuing to feel heard and this is really a good place where we can discuss public policy for the benefit of the city and region. thank you all very much. >> we will check with sf gov tv. caller can you hear me.

>> yes. >> caller: and we don't want to close customers, simple as that. storage is essential while i believe it is important for san francisco to be connected it can help us to be able to access

inexpensive power when it is plen plentifully available and to help the city get through the more challenging times of the day. we can have storage in the city as well as solar to the other half of the sun set reservoir, let's make it a p.u.c. available in customer service. i'm a heavy user of electricity averaging 30 kilowatt hours a day in my all-electric home running entirely on renewable energy. i'm proud of that. >> 15 seconds, caller. >> caller: thank you very much. i appreciate it. >> commissioner:

>> thank you, caller. next caller. >> caller: good afternoon, this is peter dreckmyer policy director for the tuolumne river. i want to congratulation commissioner maxwell on being elected to serve as president. i think she'll do a great job and congratulations on commissioner moran on becoming the vice president and welcome to commissioner harrington. i think you'll be a good addition to the board and 11 days ago the federal regulatory commission was add sunday -- asked to waive a process and i want the p.u.c.'s stance first the fishery service released the fish model upon wish the

tuolumne river agreement is based and state commissioner vitor was not reappointed to the board likely because she asked questions staff wasn't comfortable with and went unanswered now you're partners on the tuolumne are attempting to undermine the state's role of protecting our quality and rivers it doesn't look good and represent the values of your constituents. stand up for what's right and don't just hide behind the irrigation districts. thank you. >> thank you, caller. madame secretary, there are no more callers in the queue. >> thank you, that closes public comment on item 5, general public comment. >> thank you, madame secretary. will you read the next item, please.

>> next order of business is item 6, communications. >> any comments on communications? yes, mr. harrington. >> i have a comment about [audio digitizing] the first item on there is for the crystal springs reservoir. i thought we talked about restricting access to our watershed and would like to hear a comment about whether we changed our mind about that and how that all works and the second thing is with all the fires going on is this going to

help or harm our ability to fight fires, build fire breaks and those sort of things and that can be answered here or offline if that's easier. >> this is horlan. we can bring back the summary of the whole project so that you can get caught up. >> that'd be great, thank you. >> any further comments? seeing none, i guess we'll need to have public comment.

madame secretary, do we need to have that? >> members of the public who wish to make public comment on item 6 dial 1-415-655-001 meeting i.d. 146 534 1295, ##. to raise your hand to speak press star 3. mr. moderator do we have any callers? >> there is one in the queue. caller your line has been unmuted. >> caller: so commissioner ed harrington mentioned, i too would like you to address not

only our expense but the water in light of the huge fires. i'd like you to do a needs assessment to have data on the adverse impacts of the large fires on our water, our forests and our watershed. >> thank you, caller. madame secretary there are no more callers in the queue. >> thank you. that closes public comment on item 6, communications. >> commissioner: thank you.

madame secretary read the next item, please. >> clerk: item 7 the citizens' advisory committee annual report. please unmultiyour camera and your mike.your camera and your mike.your camera and your mike.your camera and your mike.tyour camera and your mike.eyour camera and your mike. your camera and your mike. >> caller: thank you so much. that was an amazing pronunciation of my name and a do appreciate that. i know it's not the easiest thing to do. i'm the d10 representative to the s.f. p.u.c. advisory committee and appointed by who is now the california board of equalization and now on the police commission and adviser shammon walton. my pronouns are he, his and him. i want to say congratulations to

sophie maxwell as well as mr. moran for winning the seat and all the commissioners. mr. harrington thank you for taking up the mantle. have a long and distinguished career and we appreciate that. mr. paul son, we totally look forward to working more deeply with you also. you are the right people to be in this position at this moment in time and i want to thank commissioners cain and vitor. they'd done amiefg work for community and related to the -- amazing work and related to the p.u.c. and other issues across the board. i had an opportunity to speak at the last meeting about the importance of the [indiscernible] in san

francisco. in a far distant past others might have [audio digitizing] i want to say from our committee to you, we appreciate the stance you took in order to ensure san franciscans were taken care of. it was fun to fight with and not against you this time and making sure san franciscans are taken care of in this unprecedented time and it hasn't gone unnoticed from our position in the middle of this new covid reality. we actually do get to talk to people on the street. we like to interact with them in a way that others don't have access to.

and i know time and time again people are really encouraged by this. using one of the many tools and i've worked with folks in the faith based coalition throughout san francisco as they're distributing thousands and thousands of meals to people in need across the city not apart of other programs and including information about the things you have done to people who did not know about them. so it's not anecdotal but i want you to know people were surprised and they were impressed by the commission. through the c.a.c. we were able to leverage connections in different ways to leverage the good work you're doing and h harwin and d.m.s are doing and i

want to share that with you as we consider ourselves partners with you. i hope you feel the same. that's one example of us going i think above and beyond to make sure different segments of the population had not heard about the different programs have access because as we've seen as you know, everyone on this panel's had careers in public service. sometimes different organization within even within the city government have silos and up to folks like us on the c.a.c. to navigate that and do different things to get information to the people who need it. i wanted to thank you for that work and what you've done there. i just wanted to share from our perspective some of the things that we have done in white of

everything we want to -- in light of position with we need to make sure everything is done correct correct correctly covid-19 hit us in a way and we have done work and continued to meet consistently and in that we highlighted a few things and talked about the bill relief program not only through our own resolutions but also practically going tout different agencies to make sure they know about and apply to it. we have also taken a look at improved ground water by in corm rating different data graphics. we're in a video world. we're in a world where it's not just enough to have prose in writing but want to marry the

writing and do signify research with data that speak to the story and help different tra trailblazers within the organization do that work. as we go out to communities they cannot only read but see the impact that ground water and ground water safety has. and we're talking about the air quality impacts specifically around the $6 billion waste treatment plant and loving my community the way do i looking at air quality now during covid is crucial. work with staff internally to the s.f. p.u.c. to come up with

our air quality fact sheet and it outlines not only the great work the p.u.c. is doing and codifying it. it's important to us that people realize when it comes to certain levels of air pollution, etcetera, the positive things the p.u.c.'s doing we codified that by working with staff to highlight that. and that is linked in our annual report. one last thing i want to mention because i think it goes without saying from a full c.a.c. [audio digitizing] it's equity for individuals, for nonprofits and the multi-unit department buildings and helping the folks take advantage of the

seat p.u.c. programs to make things -- asset p.u.c. programs to make things move more equitably and efficiently through san francisco. we're also wanting to make sure the business of the p.u.c. is there. and for me what's really important is the fact that as we're talking about the cut-offs and water as a right, being able to do that within the context we need to continue construction projects that make the most sense because the s.f. p.u.c. is a driver of local economies. that and of itself and for many this is what we do and i'm highlighting it because i don't feel the population doesn't realize how big of a lift it is to not only do good by the

citizens of for instance would may or may not have the means to pay their bills right now around water, power and sewer and the real tangible results of the construction projects need to be done not only to ensure our infrastructure but also like' local economy. i want to highlight that because i think it's extremely important and you've risen to the occasion around this in a way that others don't know but you have a before you print for that.bbefore yoloe you print for that.e you print for that. you print for that.blueyou prinu print for that.u print for that. print for that. i want to talk about people and progress.

we see this cliff happening with senior managers and within the s.f. pushg and p.u.c. and bring in the right people to talk about equity and the business and reflect the people of san francisco in the way that makes the most sense.e reflect the people of san francisco in the way that makes the most sense. que want to work with you around all these positions, equity, increasing business ande want t all these positions, equity, increasing business ae want to all these positions, equity, increasing business andwe want all these positions, equity, increasing business and revenue, talking about people and community and community-centered impact because we're going down that line and we want to work with you specifically on that and i want to work with you and your team and support you in those different assets and facets. lastly in nis upcoming year [audio digitizing] you look at not only the policies coming up but realize we're partners with you on this. we've had a good track record of working with the people within

the p.u.c. to get the excellent's perspective in a way that's been collaborative and yet sometimes [indiscernible] and truthful and thank you for the work you do and i'm looking forward to continuing our work together. >> i want to thank you all for what you do without people like you that are so committed thank you. >> i want to thank you, too, this is tim paulson. thank you for the nice record and all the good work you are doing. it is appreciated.

>> madame secretary, please open up public comment. >> members of the public who wish to make public comment on item 7 dial 1-415-655-001. meeting i.d. 146 534 1295, ##. to raise your hand to speak, president star 3. >> there is one caller. >> caller: commissioners, let me make it very clear to you, we have a citizens advisory committee that should address

empirical data at the treatment plant we've had two huge spills over [audio digitizing] and no violations. i wonder if the citizens advisory committee is aware of that. this is not about others behind. you can nice sweet nothings in some other commission. this commission in large measure has [audio digitizing] others are fed up with the

corruption. for goodness sake and some of you are maybe [audio digitizing] and the citizens advisory committee should address empirical data and not talk about generalities. the citizens listening to me now know what's happening. why do we have the marina times and observer writing articles about the san francisco public utilities commission. i think they should get a copy of that the citizens advisory committee. what a sellout. >> 10 seconds, caller. thank you, caller.

madame secretary there are no more callers in the queue. >> thank you. that closes public comment on item number 7. >> commissioner: madame secretary read the next item. >> item 8 is report of the general manager. it's going give his report covering up to three different topics. public comment will be heard at the conclusion of the general manager's report and they can ask any comments at the end of the report both before and after public comment breaks. general manager kelly. >> good afternoon, commissioners. first i'd like to take an opportunity to say they really

miss seeing on the commission commissioner vitor and cain cane. it's to see them not here and i wish them the best in whatever they choose to do after serving on the commission. i must say given one general is good but to have three work at the agency, i think three is better than one and an appreciate each and every one of you. former general managers and nothing would help the organization move in a great direction. also, sophie, i appreciate you being the president. you're sort of the heart and soul of this organization and a look for you're leadership and

tim, you're the people's person. you fight for the staff and our employees. so me you're out with the ground troops. i appreciate you and i'm looking forward to the fifth member of the team but right now it look like we have a great commission and i'm looking forward to working with you guys. so as far as item a, we have been given updates on how we're operating but i wanted to point out one thing at this commission meeting we had an opportunity our staff to take sophie out and look at zero street closure and we looked at the projects and the star was excited about showing how they're working

together and so we did work and it's amazing the transportation happening out there and how they're operating construction during covid-19. a lot of facial masks and it's hard to work with a mask when it's hot outside but they've been doing that and social distancing and we've gone from the bio solids and we saw similar progress. it's amazing and then we talked over to 1550 evans and it was amazing to see the steal beam erected. that was exciting and a wanted to let the commissioner and

staff stan, stand ready. you'll be on tour with me. that's my update on covid. pretty much the same as i've been reporting every commission meeting. any questions. >> and i'll have steven take it from here.

>> congratulations. steven robinson director of capital programs. we've had regular updates on these projects we just heard the general manager talk about and a lot of the work has been in the foundations from the ground and going on for a considerable length of time. we have a presentation for information on that and have project managers here to answer questions and representatives from each of the contract teams as well. with that i'll hand it over.

>> we were asked to provide information on the program. we prepared a presentation for you to dive in to that data. jumping right in to the data i wanted to start by giving you an overview overall on the sewer system improvement program as a program. as you look at the initial data i want you to be thinking about individual workers. human beings, individuals. first i wanted to share with you the standards we saeassessed byd the standards are required by law and the requirements are

that anywhere between 20% to 30% of the hours on the construction projects have to be performed by local workers. this is codified in law and it depends when the specific construction contract was out to bid whether 2025. and with all the information included around standard including the contracts that include 20 to 25% overall local hire. and i achieved 33% local hire and we look at where the numbers are distributed and you can see as the improvement prament is underway, almost $20 million has been earned by san francisco residents. in addition to the local workers

it's having impact on local community residents. district residents have worked hours on this and each district represents approximately 9% of the city's population and district 10 alone comprised of 29% so we're proud that the work that's happening is being perform san francisco community residents. out of those dollars, $5 million have gone in wages and benefits to district 10 san francisco residents. though district 10 only constitute 10% it constitutes more than a quarter of the wages and benefits earned.

and we have significantly exceeded that so we're at 63% overall local hire participation for san francisco residents and i'm proud of district 10 residents apprentice constituting 37% of all san francisco resident apprentice hours. what's important is the data comes from the city's core centralized certified payroll records. [audio digitizing] liked to you tell you about the businesses and contractors that have worked on the system. it's equally impressive. as we look at the local businesses in san francisco, 211

local businesses have been awarded 445 different contracts. both as prime contractors and as subcontractors on both profession services and construction contract. again, i feel the responsibility to report how the district 10 contractors have done. though district 10 only constitutes 10%, 88 of the lbes have been from this district and other awards have been to district 10 and the reality is around the dollars and $318 million have been awarded to local businesses and again you'll see district 10 bay view hunter's point have constituted more than half the dollars award. this is the sewer project

numbers overall and i'd like to walk you through the projects starting with biosolids and thinking of individual workers with the standard around 30%, local hire in biosolid is exceeding it and 40%. and one thing i wanted to share is as we work on the project, our staff and oawd works with each project and where maybe there's a deficiency by a trade or a subcontractor and where there's a deficiency, the office of economic andw. development has sponsored workers for bringing local workers nor community. those are called pipeline and retention compliant mechanisms. when they do those the percentages would go higher. i wanted to share though they're at 40%, if we were able to addin

additional people the numbers would be higher than the numbers they're exceeding. it's at 40% but it will be higher. then around apprentices the number is remarkable and 70% are local apprentices from san francisco. i'm proud of that. this project is still in its early phases. it will develop and have more complex trades but for the numbers, reported it's a remarkable achievement. and this personally again with our own values we wanted to highlight how san francisco district 10 residents are being given this and they have worked 47% of all the hours by san francisco hours on biosolids. again constituting almost half

and again around apprentices, 30% of all the hours by san francisco apprentices are by district 10. i'm proud of that. i'll move to the other two projects for you. we'll tell you a good contractor story first. around local businesses on bio solids the can dard established as the didn't -- standard established on the buy owe solids project is 12%. they're doing a phenomenal job exceeding that requirement and at 26% local business participation overall. and again the doll oar tell the story, 38 million awarded to

district 10 and local businesses and community contractors received almost $30 million. again another proud story of the local impact. and against the 30% requirement they're hitting the 30% against the 50% they're meeting it and at 50% again i want to you focus on the district 10 residents. they worked a third of all the hours worked by san francisco residents. district 10 apprentice have worked more than a third of those. this means entry level workers from bay view hunter's point can get access. i'm proud numbers the project team have been able to achieve. and they had a higher requirement which was 15% and they're exceeding that which is

at 18% against local business and have been awarded 16lbe45 million has been awarded to -- and $45 million have been awarded to bay view hunter's point and here's another remarkable achievement. and again a different type of project vertical work for the community and facility and again the numbers are impressive. against an auto% requirement for apprentices they're at 73%. so three-fourths of everyone

working and coming on the project is an apprentice. that's a local resident from the community. and looking at district 10 and where the projects republic performed, 40% of all the hours are being performed by san francisco residents. apprentices, 26% are being by district 10 bay view hunter's point residents and now looking at the contractors and businesses for the facility that project has one of the highest requirements we intentionally established at the beginning a 20% lbe which is one of the highest i've seen on a project and still exceeding it with 31% lde project. almost a third of all the dollars going to local businesses and it's a phenomenal achievement. 24 lbes and local businesses

received 16 lbe and received almost 20 million awarded and 15 million have been from bay view hunter's point local community contractors and businesses and we're proud of that. that's some of the ir -- empirical data and what we have been able to achieve. it's the work of a large team of folks that goes up on site. it's representative of the staff at office of economic workforce development and partnership with the trade and folks on our team that bryan thomas and some of the folks that put the data together and multiple other folks track, monitor and support folks. we stand here proud to tell you the story but i wanted to acknowledge the teams and their

on with you the different teams for the achievement and have a responsibility to be transparent and accountable. i wanted to share that empirical certified data and we post it on our website and how to transparently report it and have been accountable more than a decade so the data's available and we make it accessible in communication that are digestible and graphically more sensible and folks can access. i wanted to take a moment to share the stories of the impacts of what happened behind the numbers and stories of what happened and lives touched by the work that happens on the projects. i wanted you to see it yourself and want the community members to be able to speak for yourselves. if you'll indulge us we have a video three minutes live that are some of the lives and stories impacted by the project.

i'll share the video and i'll come back after that. >> i waited late in the game to get in construction but better late than never. my name is al smith from the bay view community. i'm in local 261 and the company i work for is western water and working as a laborer, first apprentice. >> my name is julia mane and i've been a member of operators local 3 union and put me with a company. >> i'm from bay view hunter's

point born and raised and was always handy building clubhouses and always liked working with my hands, bikes, motorcycles but there was a point in my life where i had to make a choice. things weren't going right and i came home from prison and was seeing myself back sliding. i was introduced to bryan thomas from the san francisco p.u.c. and let me know about programs i can let in to to get sponsored in to union and took his advice and. it help me a lot. [audio digitizing] . they gave me a big step by showing me what it takes to be

on a construction site. >> the program played well and now i'm in the union and i'm 50 years old and it's never too late. better late than never. >> i didn't see this in my future and i'm happy i am here and i'm happy and through my brother and people seeing me doing positive and seeing the way i'm moving and the young cats in my neighborhood got interested and it's growing great for them too. a lot of them have children. it's been life changing.

seeing the choices i made was able to make the same people make the same choices at the end of the day makes me feel good. that's my reward. >> one thing i noticed is you need a support system. what we have at the p.u.c. is a support system to ensure a disadvantaged resident or journeyman whatever they are have the opportunity to work the job. the p.u.c. is one of the greatest entities you can work for in the country because we have a general manage, assistant general and everybody is committed to providing job opportunities to san francisco residents.

>> we need to hold ourselves accountable to the numbers and heard data and be very transparent with them and i think the transform sif impact on people's lives during this time where we have folks challenged by under employment and housing issues and real struggles. i want those folks to speak for themselves and i get choked up with the impact and that's the privilege we have doing this work. with that i'll tell you there's a large team from the team that southeast community team that makes that happen and the managers and construction first

on the call. thank you to them because we have the privilege of presenting the data to you but they do the work. with that thank you and turn it back to you, commissioners. >> i've never heard say remarkable or impressive as much as but i have to agree with you because before i was appointed by the mayor ass but i have to because before i was appointed by the mayor asbut i have to ag because before i was appointed by the mayor as a commissioner, i sat on the committee that went over this data and looked at that stuff. i wasn't there very long. the mayor tapped me to be a commissioner. and people are criticizing everybody in san francisco. you're not taking care of lbes, you're not doing local hiring, you're not doing all this stuff

it's something we struggle with and fight for all the time but it's all done under a project labor agreement which guarantees good wages, good training, good benefits the p.u.c. is almost a model in for instance for the best way infrastructure can be built with public funds. you've been diligent and despite your praise to your programs we're hearing, i want to say i'm proud of the fact that we're doing this stuff. no matter what the criticism are, there are guarantees no matter who is working on these jobs people are going to be paid well and contractors are going

to make the money they should and it's a joy to see that san franciscans take care of san franciscans and that we continue to work on our infrastructure. thank you for that report. thank you, madame chair. >> i think anyone who hasn't should go out and see. it's remarkable. i wasn't through the same procedures the workers go through with covid and came in, signed up and told hem how i've been feeling and took the temperature test then i got a bracelet. when i walked around everybody

looked at my arm and knew at least i didn't have a fever. i thought that was great. i don't know whether they planted these people are not but honest to goodness, they ran up to me and it was really great because i helped sponsor city bills and they talked about that and it's wonderful and there was a young woman about six feet tall and with an corporation and now the inspector on the job for gas, power and water. i don't know whether they planted these people but i'm telling you, it was really and you can see black and brown lives matter and that's what the

p.u.c. has to be about and that's my commitment. i appreciate all of you for having the same commitment. thank you. thank you all of you. it felt like a party. it was great. thank you again. it's amazing how much work gone in to this and it's great and congratulations to staff for work on this. they live here that means they don't have to commute. they're an asset to all of us.

the honorable mention and we got first prize for award of the future public utilities commission. hopefully you'll mention that and part of the reason is because because of what we've done in this rare. thank you. anyone else, mr. kelly? >> my report is complete and i'll report next time on the reports we received.

>> commissioner: open public comment, please, madame secretary. >> clerk: members of the comment who wish to make public comment on items 8a and 8b dial 1-415-655-001 and meeting i.d. is 146 534 1295, ##and press star 3 to speak and state your item so we can start the time appropriately. do we have any callers? >> there's one caller in the queue. >> commissioners, first to put this in perspective i'd like to you read an audit by harvey

rhodes office. it's 117 page audit on workforce and encompasses more workforce training in the city. that will give you a clue. now, i am telling you very clearly that a stew we are system improvement project started with $6 billion. it's now reached $12 billion. i would like to tally up the workforce, the amount and do a needs assessment or have a private consultant do the needs assessment. there's corruption going on

there. there's a company called amlock i think her name is melanie lock. [audio digitizing] . the general manager knows her very well and maybe he can give some comments after i finish. now, masoud did a wonderful job why is he moved to racial inequality program? i would like the general manager tell me about that. don't be fooling us, please? young people do need jobs but they need career jobs. i didn't see any latinos among

the youth or the workers or chinese or white. what is happening? who is fooling whom? who are challenging us now to bring this to a very different level. i know about project labor agreements. do you think the jobs we showed today we have those people have the agreement? i'll fully aware drove project agreement and some of the programs that i initiatied and e made it happen.

we did things at homestead and it's not they didn't know or participate. that's empirical data. don't force us to get angry. a micky mouse type of presentation. please, let's do a real needs assessment and see how many careers have been produced. if we have produced career jobs, all thanks to you, and we have a 54-year-old guy saying whatever and another young man saying [indiscernible] and we want career jobs.

we have no one in the community to address career jobs city wide. >> have you 15 more seconds. >> caller: i've addressed all the items. i have 15 seconds on what? >> >> commissioner: continue, caller, you have a minute and 30 seconds. >> caller: 15 seconds on what? >> i was keeping your time and you have another minute to go, sir. >> caller: okay, thank you very much. perhaps nobody has followed what is going on in the s.f. p.u.c. as long as i have continuously. and i still see there's no transparent and accountability.

that's why i said and was hoping ed harrington would lead the p.u.c. with the assistance of others and i feel you are not getting it. i feel like there's a machine placing some individuals within the s.f. p.u.c. to do the devil's work. i know one devil, i won't mention his name. he's very well known but that's all i got to say.

>> thank you, caller for your comments. madame secretary there are no more callers in the queue. >> thank you. that closes public comment on item 8. >> commissioner: madame secretary will you read the next item, please. >> next item is item 9, new commission business. >> commissioner: on new business? seeing none, madame secretary i see no need to open public comment. >> clerk: all matters are considered to be routine by the san francisco public utilities commission and acted upon by a single vote of the commission. there'll be no separate discussion of the items unless a

member of the commission or public so request in which event the matter will be removed from calendar and considered as a separate item. >> commissioner: commissioners, does anyone have an item they'd like removed the consent calendar? thank you, please open public comment. >> members of the public who wish to make public comment on the consent calendar dial 1-415-655-001 meeting i.d. 146 534 1295, ##. to raise your hand to speak press star 3. do we have callers? >> none at this time. >> clerk: public comment on item 10 is closed. >> commissioner: thank you. colleagues, any further discussion? may we have a motion and second

to approve the consent calendar. >> motion to approve. >> commissioner: madame secretary, moved and seconded. can we have a roll call vote. [roll call] you have four ayes. >> commissioner: thank you. the motion carries. monday -- madame secretary read the next item, please. >> clerk: it's item 11 appropriate amendment no.4 to agreement no.cs-200. [reading item]

>> i'm the deputy general manager. this is an item to extend existing service contract for right of way services. we use this contract quite a bit for pre-construction activities and wanted to extend it with no change in the dollar amount. >> commissioner: thank you. any discussion? i'd like to open it to public comment. >> clerk: members of the public who wish to make public comment on item 11 dial 1-415-655-001. meeting i.d. 146 534 1295. to raise your hand to speak press star 3. mr. moderator do we have callers? >> there's no callers in the

queue at this time. >> clerk: public comment on item 11 is closed. it's been moved. is there a second? roll call vote, please. >> clerk: [roll call] >> commissioner: motion passes. madame secretary read the next item. >> clerk: the next item of business is item 12, approve the plans and spes fissions and award contract no.hh-1000hr. [reading item]spes fissions and award contract no.hh-1000hr. [reading item]pspes fissions an award contract no.hh-1000hr. [reading item]espes fissions an award contract no.hh-1000hr. [reading item]cspes fissions an award contract no.hh-1000hr. [reading item]ispes fissions and award contract no.hh-1000hr. [reading item]fispes fissions

and award contract no.hh-1000hr. [reading item]cspes fissions and award contract no.hh-1000hr. [reading item]aspes fissions and award contract no.hh-1000hr. [reading item]tiospes fissions and award contract no.hh-1000hr. [reading item]nspes fissions and award contract no.hh-1000hr. [reading item]spes fissions and award contract no.hh-1000hr. [reading item] fissions and award contract no.hh-1000hr. [reading item]fissions and award contract no.hh-1000hr. [reading item]issions and award contract no.hh-1000hr. [reading item]ssions and award contract no.hh-1000hr. [reading item]ions and award contract no.hh-1000hr. [reading item]ions and award contract no.hh-1000hr. [reading item]ons and award contract no.hh-1000hr. [reading item]ns and award contract no.hh-1000hr. [reading item]s and award contract no.hh-1000hr. [reading item] and award contract no.hh-1000hr. [reading item] this will be presented by agm howe. >> good afternoon and congratulations president maxwell. good afternoon, commissioners and welcome commissioner harrington. i'm cathy howe the assistant general manager for infrastructure. this i'm i'm requesting approval for the lowest bidder, michael's engineering to rehabilitate and make improvements to the existing tunnel. we're looking forward to being able to issue the notice to proceed by january of next year if you'll approve the award today. i'd be happy to answer any questions that you have. >> commissioner: i one question. this is definitely under the [indiscernible] correct? >> >> it is not. it is water enterprise capital project that followed the

program. >> commissioner: thank you. >> i notice the original bids had [audio digitizing] can you talk how the shrinkage happened? >> it is a complex project. a lot of the internal work inside the tunnel has to happen during a two-month shutdown window. we did start off early with i think the rq advertised september of last year and we added safety pre-qualifications into our contract. with the safety pre-qualifications we ended up with six instead of eight that originally were proposed and then we received bids from four

firms early in february. what happened with that is that a number did not understand the lbe goal. they thought they were not a hard and fast number we rejected all bids and when we explained the lbe program we were about to rebid but then covid happened and with the uncertainty whether we were moving with construction or not we held off on re-advertising it and we did again and we wound up with two thirmz and the other two maybe didn't understand some of the requirements. michael tunnels has worked with us before as part of the venture on the bay tunnel project. >> thank you.

>> commissioner: i want to know why such a big discrepancy in pricing. one was 67 and one was 139. can you give us an idea. maybe it's not big. it seems $30 million -- >> it's hard to tell because flat iron has worked before and they were the second bidder and have the higher bid. maybe they put in more in their estimate because they realize how difficult the project is. i'm not certain. they did get a pre-construction walk through. they were we did schedule for them to go to the site. there's a considerable amount of work outside the tunnel as well. it could in flat iron anticipated additional work that maybe michael did not. we can't tell.

>> commissioner: thank you. colleagues, any further discussion? madame secretary will you open it up for public comment, please. >> members of the public comment who wish to make two minutes of public comment on item 12 dial 1-415-655-001. meeting i.d. 146 534 1295, ##. to raise your hand to speak press star 3. >> this is chief executive officer for the water supply and

conservation agency. good to see you and congratulations on your election, madame president. i'm excited to see this contract before you today. it's a strong supporter of implementing necessary short term and long-term improvements for mountain tunnel. it's a critical component for water supply reliability for the 1.8 million residents in san mateo and alameda counties. we support the recommended action before you day. thank you. [please stand by]

on the boundary maps that we have to have in the department of the interior under the act and we just want to make this correction now that we have discovered it in the field. it shouldn't change anything of our operation. >> commissioner: any discussion on this item, commissioners? seeing none, madam secretary, will you open up for public comment, please? >> clerk: members of the public who make to wish two minutes of public comment on item 13, dial 1-(415)-655-0001, meeting i.d. 146 534 1295 #,#. to raise your hand to speak, press star 3. mr. moderator, do we have any callers? >> madam secretary, there are no callers wish to make public comment at this time. >> clerk: thank you. public comment on item 13 is

closed. >> commissioner: colleagues, is there any further discussion on this item? seeing none, may i have a motion and a second? >> i'll make a motion to appro approve. >> second. >> been moved and seconded, roll call, please. [roll call] >> clerk: you have four ayes. >> madam president, if i could just say one thing because i hope this is the only time i can say this before you move to get the next item up is that -- and this is mostly for our new commissioner, ed harrington, because, you know, we only have four people on the board, and i have just noticed that all four of us wear glasses. i just made that joke, you know, during closed session a couple

of sessions ago where, you know, the first time i think i was ever insulted in my life was when people talked about, hey, mr. four eyes. any way, we now have four ayes and i had to make that anecdote again. thank you for indulging committee. >> commissioner: it's been moved and seconded and passed. madam clerk, will you read the next item, please -- madam secretary, will you read the next item, please? >> clerk: item number 14. [reading item] this will be presented by mr. rich moralen. >> members of the commissioner,

members of the puc, earlier today you heard some really good news about. (distortion) with them item i will hopefully be providing further good news. we're asking the commission to consider approval of a low-cost fund today (distortion). a loan that will partially fund the headworks project, a project of the sewer system. next slide, please. during the presentation i will provide a brief background of the puc's involvement to date with the loan program and also describe the proposed new loan under consideration today and finally i'll summarize the requested action. next slide, please. the puc's involvement in the loan program dates back over 20

years when we executed 13 loans for wastewater projects totalling $280 million. however, those loans didn't provide favourable financing terms as now and were somewhat less favourable than using traditional revenue bond funding. still recognizing that this is an issue for the puc, the state revamped the loan program making loans considerably more favourable for borrowers. so, for example, the loans would have a 30-year maturity versus a 20-year maturity. payment on the loans did not have to be secured on a lien basis, similar to other loans, and most importantly the interest rate terms were made more favourable by having the rate set at one half of the rate on the state's most recent general obligation bond. in 2013, the puc paid off the old loans as part of a low-cost [indiscernible] refunding. in 2016 we obtained approvals to enter into new loans under the

revamped program. since then we've executed six srf loans totalling about $288 million and this includes $8 million in principal forgiveness which is essentially a grant. i will also note that we have also executed [indiscernible] in the amount of $186 million and that included a $15 million grant. so when comparing the six srf loans of the waste water [indiscernible] we saved the rate payers an estimated $252 million over the life of the loans. next slide, please. today you have to consider the approval of a new sfr loan that will again fund the waste water [indiscernible]. it will be an approximate $112 million loan that will fund the headworks project which is the second large ssip project behind the biosolids [indiscernible] project.

so you may recall this past june this commission approved and puc executed a low cost federal loan. a portion of that loan in the amount of $318 million also partially funded the headworks project. today's proposed srf loan that will bear an interest rate of 1.10% will pair with the [indiscernible] loan which bears a 1.45% rate, provides low-cost funding for approximately two thirds of the total projected $618 million headworks project cost. remaining portion is expected to be funded with revenue bond. the proposed loan will have a 30-year maturity and [indiscernible] interest rate of 1.10. it compares very favourably versus the estimated 3.5% rate for revenue bonds. on the next slide i'll show the combined debt savings of the loans versus conventional revenue bond funding.

next slide, please. thank you. so with this table you see the three funding sources for the proposed headworks project. the proposed srf loan at an interest rate of 1.10 be executed with the [indiscernible] loan at an interest rate of 1.45 and future revenue funding at an estimated interest rate of 3.5%. the revenue bond funding the proposed srf loan is estimated to save $54 million in costs over the life of the loan and the other loan will save an additional $218 million. on a combined basis, the two low-cost loans would save an estimated $272 million in debt service costs versus higher cost revenue bond funding. again that's two-thirds of the project cost. next slide, please. so the action we're asking the commission to take today is to approved an srf loan agreement

for the waste water headworks project. if you approve, we expect to execute the loan with the state in late november or early december. next slide, please. so that would be the conclusion of my presentation. i am happy to take questions. >> commissioner: i do have a question, and that is on the reimbursement, maybe i'm not reading this right, but it says it seems that with the srf reimbursement, if something happens they may or may not reimburse you and then you have to go out and get another loan. >> yeah, technically that is possible. it has not happened yet. by reimbursement -- so we provide the interim funding of the project. for example, the headworks project, as you saw when you were at the plant that was under construction. so we're providing the interim funding of that with low cost commercial paper. we issue commercial paper.

and that's funding. we then at certain stages of the project ask the state for reimbursement or project cost, and then we use what they reimburse as the payoff of the commercial paper. the state could technically have reasons to not reimburse us. it hasn't happened yet. i'm not aware of it ever having happened. i think it would have to represent dire financial reasons on the state's part. >> commissioner: thank you. >> you're welcome. >> that's good. >> commissioner: commissioner harrington? >> thank you. thank you for the wifia loan. it's hard to argue against 1.1% interest rate. this is wonderful. the question i'd like to raise is a larger one that you don't need to answer today but you can get an answer over time for me. i have an interest in doing more

green distributed infrastructure than some of the traditional gray infrastructure we've done. once you scale those things up, is putting them in senior capital program and start to issue debt for those kinds of activities also. some activities result in assets that are not the traditional owned assets of the organization, the way we traditionally own these things. i noticed in your agreement here with the srf, it talks about the system equating to the enterprise, and the definition of it seems to be possibly a fairly restricted definition. if you will recall a couple of years ago we changed the charter, section ac-124, to be able to issue debt for a more flexible way of describing how we issue debt, the kind of things we can pay for it. if you can do me a favor and bring back a report or send us a report that would indicate whether we've taken advantage of that expanded authority within the charter and what would be -- what would be any kind of

obstacle to what's going out and scaling up those kind of non-traditional infrastructure activities with this kind of language in these agreements will come back to haunt us and whether it's really just matching old language which already haunts us or how we could go ahead and expand how we pay for these kind of activities. i would appreciate it. >> thank you, commissioner harrington. good to see, you by the way. yes, it is a much broader question. happy to take a look at it. we are always looking at expanded financing methods to finance our cfps. and obviously srf and wifia loan funding is part of that. we can take a look at it and be a little bit more specific in the response. but there are opportunities i think we can take a look at. we'll get back to you with a report. >> commissioner: thank you.

any further comments or discussions, commissioners? seeing none, then maybe open this up for public comment. >> clerk: members of the public who wish to make public comment, commence the public comment at item 14, dial 1-(415)-655-0001. meeting i.d. 146 534 1295 #,#. to raise your hand to speak, press star 3. >> mr. moderator, do we have any callers? >> madam secretary, there are no callers in the queue at this time. >> clerk: public comment is now closed. >> commissioner: any further discussion on this item? seeing none, may i have a motion and a second? >> i'll move. >> commissioner: moved. seconded?

>> second. >> commissioner: it's been moved and seconded. roll call vote, please. [roll call] >> clerk: you have four ayes. >> commissioner: motion is passed. madam secretary, may we have the next item, please? >> clerk: next item is item 15. [reading item]

>> good afternoon again, commissioners. so this has a little bit of a history and you might wonder why we're doing a five-year lease for a retail store on our property at 900 el camino. you have to remember 5,000 el camino is the yard for our system. this was a 40-year lease issued back in the '70s or so. orchard hardware was acquired by lowe's. lowe's actually closed the store. we're in the midst of actually redesigning our corporate yard there. so we don't want to have a long-term tenant but we still want to have a tenant on the property to secure the site and to provide sales tax income to the city of millbrae. this is a short-term lease. they understand that.

but it has some options. but we think it's a good idea to put a tenant in there for the time being to make the site more accessible for the public. >> commissioner: any discussion or questions on this item? >> so i have a question. i know that -- i think it came up at some previous meetings that folks in millbrae were complaining about, you know, the look of the place and it was abandoned and, you know, trashed up and what have you and we got a little bit of, you know, blow-back because of what's going on there. but is this company -- i don't know what kind of diligence you have because i did look at this but i didn't look at it that deeply. does this company, you know, like not like a wal-mart or whatever else, are they going to have an anti-worker representative policy or does

the company itself just -- will they pay at least a minimum of minimum living wages or anything along those lines? have you looked into that background with this company? and i know you have to lease the place and things have to get put into place. but has there been any of that background done with this company just to see what their business practices are in terms of taking care of workers? >> yeah. i believe -- with the city and county of san francisco, it's subject to all the terms of the city and county of san francisco, including prevailing wage and things of that nature. they would have to comply with that in order to comply with the lease and we would be monitoring that. >> would it still be -- because it's san mateo county, which is a different county, which actually should be part of san francisco county in many ways, just like our airport, but that being said, minimum wage in san francisco is, you know, over

$15 an hour now. i don't know if it is in san mateo officially yet. so i don't know if that, you know, that stuff has been discussed. >> i don't know the answer -- francesca, do you know the answer to that one? >> the city has a different ordinance separate from that called the minimum compensation ordinance which applies to all city leases. so unless this was exempt from that for some reason, which i'm not aware of. >> it's not. >> i have not looked at the lease. that should be in there. and the minimum compensation rates i believe are on par or perhaps even a little higher than minimum wage. >> no, mco is higher than minimum wage, and thank you for clarifying that. thank you. that was my question. >> commissioner: any further discussion or comment? seeing none, then we will open for public comment.

>> clerk: members of the public who wish to make two minutes of public comment on item no. 15, dial 1-(415)-655-0001, meeting id 146 534 1295 #,#. to raise your hand to speak, press star 3. mr. moderator, do we have any callers? >> madam secretary, there are no callers in the queue at this time. >> clerk: thank you. public comment on item no. 151 closed. >> commissioner: thank you. commissioner, may i have a motion and a second to move this item, please. a motion and a second. >> i'll move it. >> commissioner: all right. c'mon! >> second. >> commissioner: thank you. it's been moved and seconded. roll call vote, please.

[roll call] >> clerk: four ayes. >> commissioner: it's been moved and seconded and passed. madam clerk, will you read the next item, please? >> clerk: yes, i will read the items for closed session. again, item number 19 has been removed from the closed session calendar and will not be heard. item 16 is: [reading item] >> commissioner: open for public comment. >> clerk: members of the public who wish to make two minutes of public comment on item no. 18, dial 1-(415)-655-0001, meeting id 146 534 1295 #,#.

to raise your hand to speak, press star 3. mr. moderator, do we have any callers? >> madam secretary, there are no callers at this time. >> clerk: thank you. public comment on closed section item 18 is closed. >> commissioner: may i have a motion and a second to observe attorney-client privilege regarding the items listed. >> moved. >> seconded. >> commissioner: it's been moved and seconded. roll call vote, please? [roll call] >> clerk: you have four ayes.

>> commissioner: it's been moved and seconded and passed. we will have closed session. madam secretary, may we start at 3:30? >> clerk: yes. we will move into closed session and then we'll take recess till 3:30. >> moving into closed session. f san francisco is a non-partisan political -- ginsburg. >> no action was taken during our closed session. is there a motion -- i'm getting feedback. may i have a motion and second to whether to disclose discussions during the closed session? >> not to disclose. >> second.

>> commissioner: seconded. madam secretary, may we have a roll call vote, please? [roll call] >> clerk: you have four ayes. >> commissioner: motion has been moved and seconded and passed. adjournment? we are now adjourned. >> clerk: thank you. >> commissioner: thank you. >> thanks. (proceedings adjourned)