>> the san francisco p.u.c. meeting. i am president sophie maxwell. i'm experiencing some technical difficulties right now. oush internet is out on this side of town so i'll be using my phone. i will be a little bit more disjointed than usual. so please bear with me and thank you for your patience. madame secretary, call the roll, please? [roll call] you have a quorum. due to the covid-19 health emergency and given the

public health recommendations issued by the san francisco. department of public health and that governor and mayor have lifted, this is being televised by sfgov tv. for those watching the live stream, be aware that there is a brief time lag between a live meeting and what is being viewed on sfgov tv. on behalf of the commission, i'd like to extend our commission on behalf of the p.u.c. staff and i.t. staff for their assistance during the meeting f. you would like to make a public comment, dial the number on your screen. meeting i.d. 1462384281 pound-pound. please note that you must limit your comments to the top of the agenda item being discussed unless you're under general public comment. and we ask you to limit your comment to the agenda item. we ask that public comment be made in a civil and respectful manner and refrain from the use of profanity.

address your remarks to the commission as a whole and not to commissioners and staff and i'd like the announce that item number 11, authorization of innovation agreement for cs-396 is being ul ed from today's calendar and will be rescheduled to the meeting of october 12.

is not only imperative that we acknowledge the fact that the people have established a working partnership with the san francisco p.u.c. and are productive and flourishing members within the many grater san francisco bay-area communities. madame secretary? >> you're muted? >> sorry. at your request, i would like the announce that the san francisco public utilities general council has taken a new position with the california attorney general's office as the attorney general's chief of policy. franchesca was with the san francisco attorney's office for 15 years and with the s.f. p.u.c. team for the last three and a half years. she helped improve services to our customers and to work with staff to create robust and successful programmes. we'd like to welcome and introduce michelle brakeman, the new general counsel. she joins the office of the city attorney in 1995, coming from private practice. she advised on public work design and construction projects such as the new main library, the civic centre courthouse t legion of honour and the deyoung museum. she was also involved in the 1999 rewrite of administrative code chapter 6 and 28. in 2011, the city attorney appointed cheryl to serve as the airport general counsel. while at the airport, she advised through the $7

billion capital programme, including the construction of the new air traffic control tower and harvey milk terminal 1. welcome. would you like to say a few words? >> thank you. and president maxwell, vice president moran, commissioners, thank you for the introduction. i'm certainly going to miss franchesca. she is a wonderful colleague and friend for the last 15 years. and it is my privilege to serve as your general council. i look forward to working with all of you. thanks. >> thank you. thank you. >> you're welcome. >> approval of the minutes of september 14, 2021. >> commissioners, is there any discussion or corrections on september 14 minutes?

>> members of the public who wish to make two minutes of public comment, specifically on item three, the minutes of september 14, dial 1-415-655-0001. meeting i.d. 1462384281 ##. to raise your hand to speak, press star 3. mr. moderator, do we have any callers? operator: there are two callers in the queue.

hello, caller. i opened your line. you have two minutes. caller, are you there? sorry, caller, we cannot hear you. next caller, your line is open. you have two minutes. >> caller: can you hear me now? operator: loud and clear. >> caller: excellent. sfgov tv channel 2 is carrying the captions for this meeting but not the video at this time. i'm seeing the lovely woman with the green screen right this second. but not any of you. if someone could attend to you, that would be great. on the city of attorney transition, i wish franchesca the best and look forward to working with ms. bregman. i believe we interacted briefly during the airport terminal naming committee, which resulted ultimately in the harvey milk terminal. so, there was that and on the minutes. i could not reach secretary hood substantively before the meeting. i had some minor edits so rather than detailing them

right now, if you could just approve the minutes with the understanding that i will communicate those to donna after the meeting or tomorrow. and we'll take care of that. i would appreciate it very much. thank you. >> thank you for your comment. operator: caller, can you hear us? we have two minutes to comment. caller, can you hear us? >> caller: hello? operator: hello. you have two minutes to comment on the minutes. operator: sorry, caller, we're having difficultty hearing you. madame secretary, there are no more callers in the queue. >> thank you. public comment on item number 3 is closed. >> thank you. may i have a motion and a second to approve the minutes? september 14. >> so moved.

>> may i have a second? >> moved and seconded? roll call vote, please. [roll call] >> you have five ayes. >> thank you. next item, please. >> the next order of business is general public comment, number 4. members of the public who wish to make two minutes of general public comment, specifically on matters that are within the commission's jurisdiction and are not on today's agenda may do so by dialing 415-655-0001, meeting i.d. 1462384281 ##. raise your hand to speak, press star 3. do we have any callers? operator: there is one caller in the queue.

hello, caller. i've opened your line. you have two minutes. >> caller: the commission -- my name is [inaudible] and i want to talk about the salmon. it's a rather detailed report on account of 16500 salmon across the golden gate bridge and, before they could spawn, the majority of them died. so the 16500 salmon, about 4,000 survived. and i think you know about this and i want you to remember that much before human beings were here in california, the salmon were.

and the role of the salmon is very important. when we talk about climate change and when we talk about being friendly to nature and when we talk about mother earth, which mostly the word "mother" is used for the first people, they are the ones that respect the salmon. and we know that the hahachi dam is linked with the river and we can do right by the river by releasing some water. and this has been brought up recently, but we can't be in denial. so, next year they count the 2,000 salmon and we have none remaining, that will be our last.

we can't be -- you can't be on the commission and just think oh, you know, that's something life. it's not something life. it's something that i'ves been reminding the commission for over 30 years. i even -- [bell ringing] once brought to the commission -- [bell ringing] operator: thank you, caller. your time has expired. madame secretary, there are no more callers in the queue. >> thank you. i'd like the remind callers as well f you do wish to speak, please press star 3. that closes public comments on item number 4. >> thank you. next item, please. >> next order of business is item 5, communications. >> any discussion, commentses? >> yes. commissioner -- [talking over one another] >> thank you, president

maxwell. i was wondering on the climate change report, are we going to discuss some of those programmess? here in our climate workshop, or is that something that we can discuss right now? >> well, this is steve richie, assistant general manager for water. we will talk about the programmes in there that relate to, you know, actual operation and planning for the water system. but there is more to it than that, obviously. there is a lot relative to the waste water system and other activities. so, the water organisations we will talk about at the climate change workshop. >> commissioner? >> thank you. mr. behar, thank you for being here. there was a question that -- obviously there is a cost enterprise effort going on at

this climate change collectively. and i was wondering how systematic they are. are we trying to sort of take advantage of the interconnections and resources and ideas and solutions across these enterprises? or is it mostly just, you know, the approach that is being used across different enterprises? >> you are on mute. >> can't hear you. >> my bad. sorry. david behar, water enterprise. thank you for the question, commissioner. the climate change coordination committee was chartered to enhance collaboration and communication across the enterprises to make us as much aware of all the different things that were happening on climate change in general. and both mitigation and adaptation policy in particular is called out as important in the strategic plan that obtained at the time. we've been doing that. it has been a little bit slow during covid.

not as many meetings as we were having before. whether we're stitching things together, to deal with its own extra edge tooic plan, that is what you're getting at, and that is not at this point in the charge of the committee. it's making sure that we're aware of all the things that are going on. i don't know if that answers the question fully. but happy to answer any additional questions. >> it does. maybe the follow-up question would be -- what would it take if we want to stitch these things together, across different enterprises? the reality is there are so many opportunities to do, you know, different promises in

one that can have multibenefits across different enterprises. and being a utility with all these enterprises under the same umbrella, i wonldser if climate change can be an opportunity to do a more cross-enterprise collaboration. what does it take if we want to be the next step? >> thank you. two things. one, i would not suggest that they're not stitched together at all. for example, on sea level rise, we worked with mayor lee at the time. that was a water and waste water enterprise initiatives along with planning and public works and s.f.o. and that work continues with a number of collaborative efforts that's supposed to take place inside the p.u.c. as we contribute to the sea level rise policy area for

the city as a whole. and then in the co-ordinating committee that is made up of agencies in addition to the p.u.c. in the city family. same thing on power and clean energy which is not an area of expertise to me, but refer to others to talk about how, you know, our work on clean power and on solar installations are very much connected to one another. to answer your question in general how to do it more would be to decide to do it more and to, you know, bring more people into the mix. out would call upon staff. there's a program that's an interesting project that involves the whole city family and, you know, if we wanted to do something like that, there are -- there are connectivities that we have now that we're exploiting that we could do more actively.

certainly. >> thank you so much. what is next for this committee? >> it is ongoing. i've been on medical leave for a few months so that has put a bit of a hole in the process. that is ending soon. nothing serious. and next is to get back to the climate policy. there were additional conversations we had, including one where senior management suggested that we really frame the implementation of the climate policy. so we know what it would take to meet these goals in draft form and go back to them once we complete that process. that is about halfway done, i'd say. it's in decent shape.

we would like senior management and the commission to understand what it would take to implement this policy. there's nine platforms or elements of it. i would say that both deal with mitigation adaptation and when that is ready, when that is mature enough to bring to you folks after veting it inside staff, that -- i think that is the highest priority for c-5 going forward. >> thank you. glad to have you back, obviously. and just want to say, from my point of view, you will be absolutely wonderful if you try harder to sort of finding the connections and try to sort of leverage all the opportunities across different enterprises if you can. i appreciate what you're doing and i look forward to see what comes next. >> thank you. thank you, commissioner. >> commissioner harrington? >> thank you, madame president. hi, david. good to see you. the work you were talking

about doing and hoping to get done in the future, did we put a goal in that or a date on that or something so that it doesn't fall through the cracks and we talked about it again in two or three years. is it possible to say that by six months or three months or something, it's reasonable to think if we could get that kind of a discussion going within management and bring us to the commission? >> commissioner harrington, thank you. are you referring specifically to the climate policy or -- >> yes. >> ok. yes. absolutely. it can be, should be. it would be helpful to keep things moving and get back to where we are, which was where we stand, which i think is in decent shape and could be built upon. >> maybe you can talk to mr. carlin and add it to the advanced calendar. >> will do. >> thank you. >> all right.

any further discussion or comments? commissioner moran? >> thank you. on the item or that piece of the correspondence, two comments. one is it was impressive, the scope of what we're involved in and the leadership role that we're playing in various -- and i commends you for that and it's gratifying to know that we're involved in that way and to that degree. perhaps there is a different version of what the commissioner brought up. i saw in there a whole lot of trees and not a whole lot of forest and it was very hard for me to get a sense of what do we think we know at this stage? and without waiting for all the final reports to be in, there's a lot of work that has been done, a lot of smart

people have been focusing their attention on this. and it would be -- how do we find it useful to have a presentation from you or staff of some location of the organization. generally how we're looking at global warming, threats and challenges and broad terms what we think the overall strategies are that we can pursue on that. my guess is the that geographically, you may look at a set of challenges and department lines. that's fine. that would be useful to know, you know, what challenges we have and, you know, in the northeast, we have -- challenges we have in the southeast. the challenge we have on the oceanside. and what we think we can do about that in broad terms.

thank you. >> thank you, commissioner. we can certainly do that. i would say we know a lot. i appreciate you saying that we're doing a lot and i think that is attributed to the sheer number of staff across the department as a whole that are engaged in all the projects that were listed in that report. the report written by the staff. yeah. we can certainly talk about what we know because we've been working on this for a while. as well as the strategy, of course. the overarching strategy, which is important. and for everyone else who's working on this, in terms of the mitigation urgency and adaptation challenge itself, which are different from one another. but no less challenging. >> all right. commissioner moran? >> thank you. on another part of the

correspondence, the water supply conditions update. i request two things. one is [inaudible] and there is a graph that shows over the course of 8 1/2 years how storage levels go down. i would love to see a reversal of that graph that basically says where are we at the moment? are we above that graph, below that graph? and what that means. that graph is not a prediction a standard. but it is a baseline that we're predictsing.

course of 8 1/2 years how storage levels go down. i would love to see a reversal of that graph that basically says where are we at the moment? are we above that graph, below that graph? and what that means. that graph is not a prediction a standard. but it is a baseline that we're predictsing. second thing i'd like to discuss about, and that would be fine later if we need to, the impact of the [inaudible], the obvious thing is part of our job plan depends on refill. even in the years that aren't banner years that there is a little water that comes in, we're counting on that water for some reason. what happens when we take that water out of the system. and that could be now or later. >> this is steve richie, assistant general manager for water. i think speaking to both of these items, a little bit later. if you could bring up the slides that are the attachments. yeah. here's the reservoir storage slide that we normally produce for the commission. one of the key things on here is hetch hetchy storage and one important line is the water bank storage. which shows as of september 20, we had 360,000 acres of storage in water bank. so, that is a nice sounding number because that is basically the size of hetch hetchy reservoir. that storage needs to have our diversion to operate that storage. because of the curtailment in the operation district in san francisco, we cannot utilize the water bank as it's intended. in effect, water bank is in a lock box. by itself. we can put little bits in, but we can't take anything out so our total storage is reduced by the water bank amount as we look forward and if the curtailments persist

through the year ahead, you know, and one projection we always look at is in 1977, if we had a 1977, that is a very low year for run-off, but it did have some run-off. so our estimate is we would have been able to store an extra 300,000 acre feed. this tips the scale very much to staff starting to bring their documents that would go that direction. and we should have that ready to go the first of november. but we can come back with the meeting with a presentation on this and a little bit more

about the scenarios that we're looking at and how we have used a prospective drought for operational purposes and look where we are now and look at the '76, '77, '78 after that as a way to look at it. we have a lot of food for thought at the next commission meeting on that. again, we might be moving toward actual declaration of a water shortage emergency. certainly we have got into this drought faster and deeper. one other way to look at the water bank is that 360,000-acre feed, basically equates to about a year and a half of storage. so, we had a two-year drought curtailment. we're already four years into a drought. so that's a very quick high level summary of it but we can show you more at the next commission meeting.

>> do we have any curtailments in the '70s? >> no. >> i think it would be good to look at any discussions especially with an emergency ongoing. >> i think commissioner harrington has his hand up. >> yeah, i know.

>> i remember that peter [inaudible] mentioned from his point of view the concern was downstream of don pedro, not between hetchy and don pedro and we should be able to figure out the [inaudible] and the curtailment affected san pedro. is that conversation going anywhere at all? >> i know the irrigation districts have a meeting scheduled with the state water board for this friday. i think they're scheduled something to talk about various anthologies. we are trying to have that conversation with them now and also a more detailed conversation with the irrigation districts about different ways to access this. we're trying to pursuit it on several fronts. >> thanks. obviously it would be great to have a report back. >> commissioner pahlsson?

>> i just want to say that, you know, despite everything that people are talking about right now and a possible november official comment, i'm glad to hear whether or not it's within mr. richie's comments at the october meeting or not. it is going to be either an agenda'd item or part of the report. it's important this conversations and the questions continue. i just want to acknowledge that. thank you, staff, for being pushed and prepared for, you know, this discussion about the drought. any further comments? seeing none, i have something on g, the capital improvement program. and thank you so much, you've been talking about coming to

us about that. could you give me three things that are going to make it easier for us to understand? what are the three most important changes? >> madame president and commissioners, i have worked closely with the water program director and steven robinson, the enterprise director. as you read the correspondence and you mentioned the improvement of the report. number one is you are going

to add a table or section in the report which includes a schedule summary. this section will provide an overview of a project budget and a schedule. it would track project against regional project and it also shows the funding project [inaudible] to each major milestone. and it also includes information about what is the project, most recent approved c.i.p. budget and what is the current status of the project. it improves the desire and transparency for having access to the historical changes and it's -- this section of the report would be a [inaudible] for the project.

in this section, we're going to include information that basically summarizes how much this budget is changing over the reporting quarter. compare current budget completion to the last quarter of the report, budget at completion. with cost overrun over the reporting period. and the final section that we make improvement is project performance summary. we are not [inaudible] to basically provide status report against the latest approved c.i.p. budgets and schedule.

basically whatever is a part of c.i.p., that would be [inaudible]. we have cost overrun and exceeding 10% is shaded in gray. and that is going to help visually draw attention to the project which has major cost overrun and delays. i have more questions if you have.

>> any further comments or questions on this item? commissioner pahlsson? >> i have one question. and i don't remember if we made directives or decision about this. but just the comment of reshaping the graphs and? if something has a 10% cost overrun, where did that number come from? i'll leave it at that. where did this 10% come from? >> ok. i would be happy to answer that question. 10% came because of all of our construction contact already include 10% contingency and leading that 10% contingency is the level that we put the budget for increase in the cost of construction into the project

budget. but anything beyond that 10%, we want to highlight it. we want to make sure that it's the clear attention that these are exceeding. >> and that's just for us or just for us as commissioners? >> this is what we what we decided to highlight for the quarterly report and it's a meaningful percentage. >> thank you. >> thank you. >> thank you very much. any further comments? and thank you for listening

and making those changes. >> before i announce public comment on this item, i'd like the public to know that we were having issues with the sfgov tv web broadcast and sfgov tv rebooted the encoder and said that that -- believe that that resolved all the issues. so there should be no more problems with access to the web feed for this meeting. members of the public who wish to make two minutes of public comment may call 415-655-0001, i.d. 1462384281 ##and to request to speak, press star 3. do we have callers? operator: madame secretary, there are two callers wishing to be recognized.

hello, caller. i've opened your line. you have two minutes. >> the commissioners, i have been watching you all and trying to listen to you all and you're all over the place. we are living on a planet earth that we have to address climate change as it ought to be addressed with the raging fires. this year, this year the last fires got very near hetch hetchy. next year, they will override hetch hetchy. and you are not looking at climate change as climate change needs to be addressed.

what is sfpuc doing to reduce their carbon footprint? instead of talking about this, that and the other. started with $6 billion and now $12 billion and going to end up at $20 billion. you have no shame. what are you doing about the raging pheiffers? hetch hetchy was overcome by the fires and what will you say? i can't understand. i'm listening to y'all, i'm looking at the agenda and you're all over the place. the raging fires are a serious thing to address. where is the action at sfpuc? the water belongs to the first people. where's sfpuc on that? what are you doing to save the salmon? thank you very much.

operator: thank you for your comments. next caller, your line is open. you have two minutes. >> can you hear me ok? operator: loud and clear. >> great. thank you. just basically wanted to thank people on these reports on item 5d, the multienterprise climate program update. thanks to my old friend david behar for that update and discussion that you just had at the commission. i think david and i met 35 years ago when we were both perhapss a little younger. but great work and more to discuss on that in the future. thank you to rosanna russell and her staff for the annual real estate update. i found that to be very comprehensive and informative. appreciate all of their work.

thank you all very much. i just wanted to take a second to note that these written reports don't get a whole lot of public scrutiny but they are the result of good detailed staff work behind the scenes and just wanted to reflect for a moment on the work that goes into making them happy. operator: thank you for your comments. madame secretary, there are no more callers in the queue. >> item number 5 is closed. >> next item, please. >> next item is item 6t bay area water supply and conservation agency update. presented by nicole sandkulla. >> good afternoon, president

maxwell, members of the commission. pleased to be here to speak to you today. if i could have my slide, please. i have some brief remarks to make to you today. ahem. excuse me. there's been a lot of discussion in the news about, you know, water use, water use characteristics, state responding to the governor's call for rationing the water use reductions that happened in july and this is an update to a slide that i provided across the board earlier this month and they found it very helpful. and they may find it useful as well. this is the total water use comparison that i've shown you a few times in the past. this is all the supplies, not just the p.u.c. supplies that give a better picture of total water use in their service areas. with our, you know, months across the both. and i have four years of comparisons.

2013 to essentially our predrought use, if you will. 2015, which is the green line. that's the lowest use during the most recent drought. 2020 and then 2021. and as we look, the most recent data came out yesterday, for july's use. for the bosca region, july 20821, total probable use was 5% less than july 2020. importantly, though, it's 20% less than july 2013. and you can see this in the graph. the red line is much lower thaten that dark blue line at the very top. and this is one of the things that, you know, we're going to, as a state certainly, but that is why as a region, struggle as we figure out how much our communities can respond to this current drought and how they respond. because that carry over, if

you will, that residual reductions in per capita use and total water use is still with us today from the prior drought. and a way to see that, i had some calculations put together. these are estimated numbers based on what's available at this time. for average daily residential use, this is in the table in the middle here. and it just shows you kind of the change in time on over daily per person use in the service area. again, starting with a high of 116 gallons per person, per day, in our predrought use of 2013 to a low of 73 gallons per person, per day. and our current use, you know, basically is somewhat more, 10 gallons more than it was at that low. but we're definitely much lower than we were before 2020. so, my takeaway from this, again these are july numbers. the very start of the kind of warmer season or the typical irrigation season.

just as we were hearing about this news from the governor. so, there's certainly more room and more that needs to be done to respond to the call. and as you just heard from mr. richie, the curtailments have a significant impact. on your available water supply. and i'm pleased that he mentioned the possibility and it's tabled for discussion at your next meeting. the issue of your available water supply and what action needs to be taken. i think it is alsos important for all of us to really reflect on, you know, where does this go? because these are average daily residential uses throughout service area. and, of course, that means we have some lower and some higher. so, more room to go. certainly more efficiencies that need to happen. but also i think being insightful to the service area for the efficiencies that they actually kept in place from the prior drought.

with that, that concludes my remark. i just wanted to share that with you today and take any questions that you might have. >> thank you. new questions or comments? let's open this up. to public comment. thank you very much, ms. sandkulla. >> members of the public who wish to make two minutes of comment on the bosca update, dial 415-655-0001, meeting i.d. 146-238-4281 ##. to raise your hand to speak, press star 3. any callers? operator: there is one caller in the queue.

you have two minutes to comments on item number 6. >> caller: the commissioners, the last time i spoke, i refered to the [inaudible] act. so y'all need to read it and then see who are initial partners and who are the partners that we should cater to when we distribute our water. if there is a partner that says that we can give [inaudible] that they want to. but in the year 2021, just using millions and millions of gallons of water for their swimming pools and other such

activitieses, we need to take note. take note. mostly down. i want to mention to you that there's a certain partner in a certain area may say whatever they want to. but you have [inaudible] leeching millions of gallons of water. we want to know what is being done about it. you commissioners don't know, right here in san francisco. pipes that had to be upgraded and replaced are not -- no mention of this and we first started with this and report every quarterly -- ?oeb reporting. and they are not reporting because we're already ashamed to know how many millions of gallons of water right now in the year 2021 is leeching in the ground.

nobody is making note of that. let's talk about all this other shit, but you won't talk about the source. how many times should you be reminded that [inaudible] on the leeching of the pipes. period. [bell ringing] [inaudible] about conservation. [bell ringing] operator: thank you for your comments. sorry your time has expired. madame secretary, there are no more callers in the queue. >> thank you. public comment on item 6 is closed. >> thank you. next item, please. >> your next item is item 7, the report of the general manager. >> good afternoon, president maxwell and commissioners. we have two items that i want to talk about today. the first one is our quarterly audit reports and

i'm asking charles to present. take it away. >> hi. good afternoon. president maxwell and commissioners. this item before you is a quarterly audit and performance review update to the fourth quarter of [inaudible]. commissioners, the documents provided to you on this item include our typical cover memo, which has been expanded to include a brief summary of the overall year, audit activities as well as some attachments and those attachments are a standard audit summary going through audit by audit in terms of the audit activities as well as an additional attachment from our city services reflecting their multiyear audit plan recommendations. and i'll provide more details on that in a moment. just to quickly recap, let's go 21.

37 audits were on the plan. 37% were completed or under way by the time we got to the end of the year. of the 20 audits that were completed, 14 of those were financial audits. the 15 audits listed as upcoming or in progress, will be completed in the current fiscal year. and many of those have already been completed in the current year. as a metric for comparing activities by fiscal year, fiscal year '21 with its 37 audits represented an increase in audit activities compared to the 25 audits in the prior year, fiscal '20. even though the pandemic had shifted some audit resources away to covid demand, the p.u.c. response, cost of recovery, etc., we do anticipate an increase in audit activities for fiscal year 2022, the current year. as most city staff has ended their [inaudible].

here is the -- here are the three reports that were completed during the fourth quarter and i'll briefly describe each. the first is the 2019 post audit which is something that was done by the controller's office. of course, compliances with city laws. the report was completed in march and highlighted some of the sfpuc as well as areas of improvement. the management response acknowledged that staff will continue our efforts with the observation. some of those observations included taking advantage of containment discounts when we can, timely cash receipt reporting, prompt reimbursement processing and, of course, keeping our policies and procedures updated.

the second audit report was the 2017 and 2018 energy center audit completed in april. this report found that the energy center, the center complied with its obligations under the steam franchise agreement. as an f.y.i., this is the steam loop that heats a lot of the civic center buildings. the franchisee paid the franchise fees late. franchise fees for the reporting period were approximately $347,000 and this report recommends that the controller enhance its oversight practices of the agreement and for the sfpuc to amend the agreement to include a late payment promission. so ultimately, in speaking with c.s.a., they agree that we don't need to amend the agreement just for the late payment provision.

so, that recommendation will be closed in the current year and we will make sures that they know that that agreement is renew in the future that that late payment provision will be added. the third item is the 2019 single audit review. this is a review of all grant spending and compliance with federal rules set by the office of management and budget. this is city's financial audit statements and determined it was fairly stated in all material respects. there's open audit recommendations and the one audit recommendation that i just referenced with the energy center audit. and that, commissioners, will be closed. however, not forgoten. we will put this on our list of things to update if and

when the energy center, a franchise agreement is amended in the future. in terms of the first quarter outlook for the current year, that is essentially we're just wrapping that up now. the fiscal '21 inventory count for all three enterprises have been completed. this is an annual review of the physical warehouse inventory accounts, just to make sure that the inventory count ties with the actual financial systems that record our inventory. and all of this times things out for our financial statement. the fiscal '20 reviews cost allocation between our retail and wholesale water customers. of course to make sure that we're sharing costs that we have with agreement to our wholesale water customers. and in terms of other audits getting under way this

quarter, we do have the public integrity assessment scheduled to get understood way this quarter. there was work delayed due to what the city service auditor is doing. however, it will be getting under way with this quarter, this month. and the sfip contract management audit and clean power we need will also get under way. last couple of slides here, commissioners, have to do with the forward audit scheduled that is included and attached to the memo. commissioners, over the past several month, management has been meeting with c.s.a. as they have been developing a multiyear audit plan for fiscal year '22 all the way through fiscal year '24. a three-year timeframe. the audit plan was developed with consideration of mandates by the city charter.

risk assessments and, of course w important input from city leadership. we will bring you any comments today back to c.s.a. as we work on implementing the audit plan with them. most are related to the fiscal year end activities but two of those, as noted here, are continuing. the community benefits, social impact partnership program audit and the revenue bond oversight committee audit, which are really being put together in batches or phases, this is the first portion of spending review. those are currently in progress and we are projecting the report to be issued by the second quarter.

.>> do we have any callers? >> madam secretary, there's one caller in the queue. >> first and for most, that's

not a problem. to me chronologically does not account for what was sent. if you do not pay attention to supervisor marr asking for the audits and the audits redacted so much so that you couldn't make head or tail of them. if you don't have the fbi visit the puc and they've been monitoring since 2006, i think you didn't know about this. if we do not have the commissioners half asleep in the

cock pit, not taking certain people when it came to transparency and accountability like the former general manager and the former assistant general manager, we wouldn't be talking in circles. but obviously it's done -- you know, it's shameful to do an audit and find out they're a bunch of thugs. it's shameful for us who spend a lot of time -- and now you can see how this works out and how corrupt the city is. it's like having a fox in charge

of the chicken coupe. we need rules and regulations. we need leadership. if that's missing, everything is missing. >> thank you for your comments. your time has expired. a reminder to all callers, please press star three. >> that was the last -- >> madam secretary, there are no more callers in the queue. >> the next item, commissioners, is on the budget presentation for the next two year budget. >> eric, cfo of business

services. i have a presentation today. this is our first formal meeting with you to kick off the development of budget for fiscal years '23 and '24. i want to do a brief introduction. i know there's a commissioner who hasn't been through the buyannual process. review some of the historical budget information and rate information. talk about our rates and charges and hit on some focus areas and receive your feedback. next slide. we typically have a fixed two year budget meaning that we adopt a two year budget for operations and two years of

appropriations for our capital budget. however, because of the pandemic and covid, the city modified a bunch of processes. you've taken three budget actions, it's been a bit of a marathon. we kicked off the process internally in august and have scheduled meetings with the commission and public hearings. we're not actually just talking being the biennial budget. there's planning exercises for the charter. a ten year capital plan and financial plan. the largest driver of our rates increase and charges is

investing in the systems to deliver reliable service. those are two foundational pieces of accounting work. there's a policy framework on which the budgets develop. there's a series of policies and how we develop the budget and our priorities. we have a rate payer insurance policy which balances serve he is levels and good stewardship of the system. this impacts rate payers. some of the new policies you've adopted over the past year. i wanted to give you a framework and as part of the process we are consistent with your poly

priority care. slide five, please. the next two slides are really about the context in which we're developing this budget. i can't overstate how tremendous of an impact it is to how we get our work done. really the pace of economic recovery and commodity demands is something we're trying to understand. there's also the future work and work force. the pandemic has really upended how people work and get their work done. emphasize safety organizations. maintaining and attracting

talent and advancing our racial equity may be even more challenging for the dramatic shifts in this work force. it makes it that much more challenging. the pandemics brought state and federal attention to our budget. federal and state money for arrearage management, impact on our customers. a national focus on utility and low income customers. and cyber security. the accelerated pace of technological change has shifted

quite dramatically. turning away from covid for a second, we continue to see the change of climate related risk, water shortage or drought, power outage and shut off. we're operating in a continuous state of emergency. that means not only mitigating the risk that occur but also a lot of administrative support to track costs, recover costs et cetera. we face regular tore issues -- it just reiterates the importance of impeccable stewardship in what we do and

public trust. we have several rate studies moving. we have rate studies for power and clean power in process which which will completely overhaul our power operations more in line with a significant utility rate schedule. we'll be following that up with our water rate study and continue to -- we have lots of work to do. a few highlights on the economic outlook. we've been coordinating with the city economist.

the commercial secretary you'ren effected by covid 19. associated city revenues. the city of commerce hasn't really updated that estimate. our financial resiliancy and budget with respect to commodity sales. what we have seen is that monthly reporting on economic sectors. when you look regionally council has a number of observations observationsregarding the that g

plan changes. to slide eight, just to give you a sense of is this maybe a little challenging to follow. what this is trying to show is our sales projections precovid and adjusted for covid impact and the economic impact. what you can see here and is broken down by fiscal year '21, 22 and year '23, and '24 is what we're talking about. what you can see is the largest reduction for what we're planning for in the commercial sector.

overall, revenue -- the volume metric reduction is minus 11 percent precovid, post covid. volumes to the commercial secretary you're is 24 percent. it gets smaller in the future and this is recovery by 2024 i talked about earlier. each of our enterprises and programs have customer mix and competitive dynamics, some of

them are. >> council member akinjo: wizat. how long this drought is going to last, reductions and restrictions that compound the forecast. next slide, please. now i'm going to provide some historical background. what we have are two graphs of our overall budget for the past five years. one is broken down by enterprise and program. the other is category of cost.

i think what you can see is that our budget has grown by 50 percent in the past five years. looking at the left graph what you can see is it's the primary driver of growth. we went from zero to several hundred million dollars in a matter of years. that's the largest driver in the growth of our budget over the past five years. on the right you can actually see by category some of the growth. you can see the cost of purchase power is now because of clean power. one of the largest segments of our budget and one of the largest financial risk management issues to address. that went from $80 million in

2018 to 280 million in 2022. if you look at the green bar at the top which is. revenue funding capital an the yellow bar which is the third bar down, you can see that a good chunk of our budget that service and revenue funded capital is a large part of our budget still. the increases over the period have been drich largely as i mentioned by clean power sf and also power purchases were a large growth area. capital and non personnel labor is one of the lower gross areas of our budget.

these next few slides are rate increases for water and waste water. we've been in the practice of adopting multi year rate practices. the last time the commission set rates was in fiscal year 2018, '19, '20, and '22. rates don't translate exactly.

we've had reductions as well. here we have the combined waste water bill. that's -- sorry for the acronym here. compounded aggregate growth rate t. has grown seven point six per year.

prepandemic rate retail projection from the most recently adopted ten year plan were 4 percent each year for water in 23 and 24 we're going to be doing something different for this particular buyen y'alll budget. we're proposing to have a zero percent rate increase for retail water and retail waste water in 2023 and then an estimate of six percent in '24 which we've concluded the water and waist

wastewater study. which you consider that that's about a 3 percent increase. closer to inflation than the pace of growth we've shown previously. a number of significant environmental operating shift that propose a greater rate increase. we can prudently manage through this multi year budget and financial planning. we have to check reserves and we think that with the extra time we can lay a better plan for a

package. we'll have a better understanding of demand. a comprehensive update of our capital plan. we'll have gone through much more of our waste water program. we are going to be deploying and innovating with regard to our customer assistance program. we will have progress or colleagues of our audits that is attempting to address some of the issues with respect to public integrity. we'll be able to execute a comprehensive out reach which has been out lying much of our success. i'm nearing the end. when we look at this budget, where are we focusing?

this is staff. we're looking at right sizing the the capital plan. prudently assessing our capital plan for prudencey an cost. we have a number of applications in for significant state and federal money. we'll have more information about the long term borrowing cost for our budget. we want to focus on affordable affordablity. future work and work force will be a significant thing. making sure we have the

sufficient resources for racial and equity justice. in turns of the time line, as i mentioned we kicked off internally in october. the budget steering committee is going to be convening in october, next month. we'll be updating you in november. we'll have public hearings on budget pry ors in december. an continue hearings in january and february, bringing all of this before you for consideration and adoption. it moves to the board of

supervisors or actually the mayor's office and the board of supervisors and the budget would hopefully be adopted in july of next year. i hope i didn't go on too long and really looking for your input and comments and discussion. >> thank you. >> i had one quick question. one bullet point you had had on there. there is ongoing, of course, when it comes to additional government funding, whether that's from stimulus plans or whatever else, is there a couple

bullet points where you can explain about some ongoing enhanced or new money that maight come in from other sources. you can august m that by other pieces of that. >> there has been existing funning for federal an state program -- >> i was just asking for magic, i guess. >> one of the things that we have been able to position

ourselves for is funds, we put in multiple projects. we're looking at very low interest rates. we're the pilot program for the rest of the country. we can tap into some of the funds of that nature. >> got it. >> commissioner johnny. >> thank you, so much. thank you for the comprehensive presentation. if i can make a comment p the

water rate assistance program. did we end up at all trying to get some gof funning of that? what was the status on that. i'm just curious. >> our policy and government affairs team was instrumental in getting funning for arrearage management. those programs are making their -- they are being discussed, implemented. we've submitted applications on behalf of our customers for significant arrearages management of funds. we'll see how the allocations start coming out. i don't know if you have anymore. >> no.

the arrearages is work withing the state. those accounts we think it's eligible to forgive their back payments. >> also for clean power and apache power as well. >> my other questions, i have a few. you mentioned a -- i'm wondering what is our strategy to make sure we're training the next generation of leaders. not just people coming in but people who can help us transition from what we were to what we're going to be?

>> the puc has been very instrumental and i'm not caught up on all of the details, but establishing a national work force. it's something we've been very engaged with advocating. general manager -- >> locally we established a bay works program. we've been working not just locally with our trade unions and work force development. we're mentoring the next generation of leaders. some of us are in that silver

tsunami in that sort of way. we need people who are willing and able to it take over. in addition to the standard, there's a great resignation wave. it's people's changing preferences and priorities. >> i'm so glad to hear we're training the next generation. i think the utility business is definitely transitioning and changing. i hope you're bringing people in who are more open to that transition and will be leading that transition rather than

continuing on business as yeucial. as usual. it would be great to have a more strategic plan in making sure that we're bringing in people with different expertise and levels. one quick comment here is that -- i'm sure, you have heard this a billion times in many different meetings. there's a big discussion that the next utilities will be smart utilities. we need more data scientists rather than civil engineers. i, myself, am a civil engineer

so nothing against civil engineer. anybody who can do cross crossdisciplinary work. as part of that, that was just a comment, i didn't scect any expy

responses. >> the comments commissioner moran had made as far as talent for a large city to serve the agency. >> on that note, i brought this up before too, i would love to have a broader conversation about what projects we do internally, what projects we give to consultants and contractors. if you are not building enough talent internally to give basic work. if you are projecting your risk that is not there for some of our employees that would not be willing to do certain things because we're not willing to do the work.

i would like to have that broader conversation. how can we develop that money -- of course, there's always a chance for projects. as much as we can double up our staff internally, i would love to see that transition to happen. going to -- beyond this broader discussion around staffing, i want to ask you about the water use and going back to show -- do we have -

our water use standard residential standard change at all? you're muted. >> yes. i think we had slightly with respect to power, we saw residential use increase and commercial use decrease within water and waste water we saw relatively flat residential demand. we didn't see dramatic increases. >> interesting. are we looking in a how there's a lot of discussion around some of these businesses moving their edquarters to different

locations. i was wondering if there was a study being done in terms of changing head quarters, i'm assuming those protections you had are reflecting that. i'm wondering if you are closely tracking those changes. >> i think we're trying to rely on the city's economic development forecast savings as the basis for our demand forecasting. >> just one last comment, sorry for dragging this on. we have smart meters in our city right now which is absolutely fantastic. i don't know if we have data

scientists crunching the numbers day in and day out. if we don't, i think we need to, we should be able to bring in people who can take in all this information. that can inform some of our budgeting an financial projections. >> i think your comments have made aaron frank very happy. >> thank you. >> commissioner paulson. >> your comments about moving from simple civil engineer issues digging in and getting stuff done and the technologies that are in them is really on

top of it. after all these good ideas come out and the plans are written and the architects have scribbled and everything else that we're still paying attention to the contractors to get these great ideas put together. architecture is one of the wonderful things. from bricks to steel to concrete to glass. you have to get the people to put the the stuff in no matter how many geniuses and everything who put the stuff there. get the people to do the work are going to be part of our

system has to be acknowledged as we move forward. that is my comment. >> any further comments? already. why don't we hope this up to public comment. >> members of the public who wish to make public specifically on item 7b please dial in. to raise your hand to speak press star three. >> there are two callers in the

queue. >> we need -- the controller knows about it because, i take a lot of the information from the controller and a lot of the information from the city's economist. we don't have that information that's been stated here given to us from the sfpuc. it's just relevant that we have the data and the right people can see the the data and the

younger people can be -- the older people can share their wisdom with the younger people, let's put it that way. the younger people can show the technology and many other things, presentations. i would think that -- in the military, i was in the military. we can monitor realtime things which at the puc, i didn't have. the software can be compromised easily.

during shut down. if you study the type of data they collect. one department stopped talking to the the other. thank you very much. >> thank you for your comment. next caller, your line is open. you have two minutes. >> on this item related to the budget, i'm not in front of my notes right now. we really need to find a way to post these presentations on the web. i do not use e-mail but have access to the internet an can download materials. this presentation along with many many others is not linked

to the agenda, it's not available to the public only as you flip through the slides. the public has no access to it. you need to fine a way to post these materials so the public has access to the document and can respond. i'm assuming this presentation was sent to you as members of the commission. the public need to have access. those are my comments on 7b. thank you very much. >> thank you for your comments. madam secretary, there are no

more public comments in the queue. >> that concludeses my presentation today. >> is there a reason that these were not posted? >> we generally do not post the presentations. they are not provided to the commission ahead of the meeting. i receive most of these after the agenda has been published. >> thank you. all right. next eye emmy, please. next item is item eight new business. >> your next item is item number nine. consent calendar. everything is considered to be

retained by the san francisco public utilities commission. there will be no separate discussion unless removed from the calendar and discussed as a separate item. >> thank you. colleagues any items to be discussed or removed? thank you. open up for public comment. >> members of the public who wish to make public comment specifically eat emmy nine please dial the number on your kreen. to raise your hand it speak, press star pound. do we have any callers?

>> madam secretary, there are three callers in the queue. >> i am urging the commission to sever item 9b. >> next caller. >> nothing substantive just two clarification.

the font changes. >> on this item, i find that ajm power works for ae come. com. i want you to look into that. the power enterprise, i think this discussion that we had earlier ties to this where there's nepotism. thank you very much. >> thank you for your comment. there are no more callers in the

queue. >> okay. item nine. the consent calendar is closed. >> all right. we'll sever item -- >> i'll make a motion to approve item a and c. >> moved and seconded. roll call, please. >> (roll call). five ayes. for item nine b. >> hello commissioners. we are requesting an increase of

365 calendar days to take care of some electrical issues that have arisen at the facility. most of the rest of the work is being done on time. this will have a long procurement and cause a delay to completing the contract. >> why? >> well, the procurement -- the contract asked to submit the plans and get them approved. once they are approved it's simply a matter of industrial conditions that it's the long time for the purchased equipment to arrive.

>> is this specialized equipment that only these people can do or how does this work? >> i don't believe it's specialized. it's fairly standard, the turn around time that the contractor is offering is about -- it's probably about six months or so to obtain. >> okay. thank you. >> thank you for your question. it doesn't seem like we got a real answer. is the issue that we weren't expecting to do this work and now we are. if it's a six month delay, why are we asking for a five year

delay. >> that was not in the original scope of work. it was imposed during the execution of the contract. it's not a five year delay. it's a one year delay to contend with the electrical equipment. >> i apologize. it's a total of 1435 days. >> the contractor has known about it and working on it for at least a year, if not longer. now they're at the point where they'll be able to order the equipment and that's the time that's needed to get it. >> okay. thanks. >> i think commissioner

harrington cut to the chase. i want to cut to the chase even more. they need something else to finish it up and these extra 115 calendar days. you need to get this stuff in and need a delay, is it that simple. just to get the stuff? >> in order to obtain the equipment it takes time. >> right. but not 365 days. approximately five years. i mean, cut to the chase. what does this mean that we're going to approve? >> it's an extension to allow the equipment to be purchased and delivered to the job site?

>> this looks bad. can we amend this thing to say something to the effect that we need to get some extra equipment without putting these -- it sounds --

>> maybe open this up to public comment. >> members of the public who wish to make public comment specifically on agenda item 9b which is improve the increase of 365 calendar days and authorize a general manager to approve future modifications to the contract with no change to the contract dial the number on your screen. to raise your hand to speak, press star three.

moderator, do we have any callers? >> madam secretary, are there te caller. >> there already have been seven contract modifications approved for this contract. as i commented in previous meetings, the only work. there was a twenty six point

seven percent increase in the cost and contract duration. with the current proposed increase to the contract duration that would be an eighty nine percent increase in the contract duration over the original duration. during this 365 days would there be even more increase in cost. this should weigh the [indiscernible]. >> public comment on item 9b is closed.

any further comments or questions on item 9b? >> is there any way we can have mr. myerson to comment in response to the comment that we just received. >> specifically about what? additional changes during the one year period? >> did you hear the caller? can you make a comment. >> i'm not predicting any changes during the one year period. it's primarily intended to accommodate the long lead time for the electrical equipment. as soon as it comes in, it will

get installed and the contract work. >> she mentioned seven other modifications to this contract, can you speak to that? can someone speak to that. >> okay. i'm sorry. there were. in the report, boiler demolition, nuts and bolts replacement, fiber application, the exterior of the west wall. modification number seven was intake and utility work for one million. >> okay. these things were not scene in the beginning, how did these modifications take place and why? >> may i try to answer --

>> yes, please. >> we had a disies and bid it out. pump station number two is a historical building. this happens because we have field conditions that are unknown. i think what's happening here is we're procuring equipment. it's a pandemic, it's hard to get things these days. i think we should proceed so we

can complete the work. >> any further questions or comments on this item? >> if it's open, i'll make a motion. >> i think the contract was horribly written. >> moved and seconded. roll call vote, please. >> (roll call) five, ayes.

>> thank you.

>> the commission conducted a survey and the salary is supported by that survey. request the commission review the base salary terms only

provided he makes that deduction -- neglect or deny base salaries. the proposed contract specified benefits including the wage provision in that mou. under that term the general manager will receive a zero point 5% increase in january 2022.

fringe benefits, vacation allowance at a rate of point zero seven seven of an hour. twenty days of vacation with a maximum accrual of 400 hours or 50 days. five days of executive

management leave. a package and health and related benefits for the system. retirement benefits of applicable miscellaneous plans that the administrative code. thirty day notice or pay in lieu of notice if involuntarily released from employment. memberships with no maximum amount on reimbursement. supplemental management leave upon effective date of the contract. only while he is under the contract. five, severance pay.

if the commission releases general manager. severance cannot exceed the base pay beyond the term of the contract. six, training and tools reimbursement. the contract provides up to $500,000 each year used in performance of the duties and responsibilities for the puc. madam president. >> any questions or comments? >> i'm going to make a motion and i know that if the president gets to that point after public comment and other discussions that i'm going to make a motion that we approve this and i think this is taken a little longer

than we wanted to, we've been diligent, a lot of things have taken place with people moving beyond jobs. it's time to put this after all this period of time into place so we do have a general manager. i'm tele graphing that right now. >> thank you. any further comments or question. >> seeing none, let's open this up to public comment. >> any member of the public who wishes to make two minutes of public comment please dial the number on the screen. to raise your hand to speak press star three.

>> there is one caller in the queue. >> i make comment on this item on my own. i don't think the general manager position should make more than 250,000 per year. i do recall that when -- was released there was a significant

severance. i would like to see a copy. please mail me a copy to my address on file. i'm remined of congress member tony an his connection to this. it would be interesting from a historical perspective if they are related in any way. that's it. thanks very much. >> thank you. thanks for your comments. another caller has joined the queue. caller, your line is open. you have two minutes to comment. >> due to the pandemic which we

all suffered enough suffering now we have to suffer through this. you know, i've been an advocate for over 40 years, okay? i've seen it all. and you commissioners could have done better. how can you have a process start through a monkey wrench and then listen to the mayor. yet the mayor, herself, does not meet the standard. not only her behavior but she is not advocated on the issues. this appointment is going to come to haunt her for sure.

bring david chieu in. you commissioners should not have made this move. it's going to come to bite you in the butt. >> thank you for your comments. no more comments in the queue. >> public comment on this this item is closed. >> i thought it would be appropriate assuming we're going to approve this to welcome.

>> thank you for leading the staff during this time. i really appreciated working with him at this capacity and look forward to work with him as he continues on in going back to his previous role. >> thank you for mentioning that. i think there's times in your career where you are challenged to show skills. other times when challenged to show character. over the last year that michael has shown his dedication to this enterprise and has acted

entirely professionally in times that would have been very difficult. >> i want to, if i can, i want to reiterate that about michael carlin. without diminishing my motion that i have implicitly made which i guess you're acknowledging. michael is just -- and hopefully he will continue to step up on the job as a senior leader? our organization. >> all right. thank you. again, michael. i think you've heard from the commission how much not only we appreciate it but the city and county of san francisco and all

the rate payers and everyone else. you've stepped up to the plate. we just can't even say enough. we've been a very busy commission. on all the meetings and things that usually were no happening. you made them happen. thank you so much for your sup or for all of us. you've been very supportive. thank you for all you've done and will continue to do. >> the employees top down in this organization have made it it possible.

>> thank them for their support of you and all of us. it's been a trying time. thank you very much. colleagues, with that, it's been moved and seconded, i believe. >> no, we need a second.

to full respond to the request for proposal and award number pr o-069 and execute

professional services agreement with the japanese youth council and. >> good afternoon commissioners. it's an internship program for high school and college students and focus on career and science technology engineering and this agenda item seeks for approval for a new contract to provide a specialized technical support for the administration giving staff the time and resources to administer those internships for

the next four years. this contract retires the previous one that has served the program since 2016. it will be with japanese youth council. it's a well qualified in the field of youth employment and been an excellent partner on this program. i would ask the commission to approve the election and award the contract. i'm also available here to answer any questions. >> president maxwell: any questions or comments? yes, commissioner harrington. >> thank you, mr. paul. i think this program is wonderful. it's done a good job. it's a little concerning to me that -- and i think japanese community youth council has done a good job managing it. they're so respondent to this procurement. are there nobody else -- no one else that does this work in san francisco? it starts to look like there's an inside thing and the only people that respond

consistently. can you faulk about what that outreach was, that would be useful? >> yes, it's the

>> caller: david pillpel. as with item 9a on this item the certification line and it should read meeting of and it's just omitting the word of. i have no substantive comments on this. thank you, very much. >> clerk: thank you for your comments. next caller, your line is open and you have two minutes to comment. >> caller: hello, my name is mark and i'm product of san francisco jcyc and protect pulse. i'm a san francisco native and in public schools. lowell high school and city college and sf state. funding these programs is crucial to our youth. for many, these programs are their first taste of professional development and so public speaking, constructing one report to go a supervisor, these are the skills we take for

granted as a working professional and employers these are the skills you look for in applicants. and having this experience especially as a high school student, gets people ahead and ready for college and the workforce. i can personally say that my time in project pulse, has allowed me to reach the internship and opened up my job opportunities and second, project pull is especially critical for exposure to diversity and it's a holistic review towards the applicants. so the participants, these interns are from all different walks of life and all different public schools in the city and growing up in san francisco, often times you can seem like you are in a bubble and project pull is one way of getting that bubble and breaking it and connecting and being more

empathetic to others. i highly encourage jcyc works continue for funded. it's a vote of confidence for our city and for our youth. thank you. >> clerk: thank you for your comments. madam secretary, there are no more callers in the queue. >> clerk: item 12 is closed. >> president maxwell: may i have a motion and a second to approve this item, please? >> moved. >> second. >> president maxwell: roll call vote, please. [roll call vote] >> clerk: we have five ayes. >> president maxwell: next item, please. >> >> clerk: item number 13. approve a contract amendment for clean power sf between the san francisco public utilities commission and next era energy resource development.

to add battery storage to an existing long-term renewable energy contract for a total amount not to exceed $220,000,000.280744 over the remaining 19 years of the agreement. and authorized a general manager to seek approval from the board of supervisors before this contract. to be represented by mike hines. >> good afternoon, commissioners. mike hines, deputy a.g.m. and power responsible for the clean power s.f. program. nice to see you this afternoon. as the secretary just detailed, the amendment before you today would add valuable battery storage capacity to purchase solar energy from the blithe 4 project. the addition of battery storage to the blithe solar facility would provide a number of benefits to clean power sf and its rate payers. first, with the addition of battery storage, clean power s.f. would optimize the delivery of the solar energy produced by

the project. for example, it will be able to store the solar energy produced in the middle of the day, when electricity is abundant on the grid, and discharge that electricity when it is more scares and costly to produce. such as in the early evening when demand on the grid begins to peak. by adding the ability of a battery clean power sf, can also help reduce the grids' rye lie anson fossil fuel to supply electricity demand when, for example, energy from solar and wind may not be available. partly due to the operating flexibility i just described, adding a battery to the project will also provide significant resource adequacy compliance benefits to clean power sf. as a reminder, it's a state requirement that provide electric service to customers including clean power s.f. and our municipal power utility

hedge hegi power. the requirement is intended to ensure that there's sufficient electric generation resources available to meet unusual lehigh numbers. the battery storage to be added to the blithe will quadruple the capacity value of the blithe project. while resource adequacy capacity was included in the existing contracts, for solar, solar resources provide significantly less resource adequacy capacity than storage resources. as determined by state regulations. the additional resource capacity provided by the battery, will supply roughly 8% of clean power sf typical monthly requirement under current regulations. as a result, the amendment will reduce clean power exposure to what has been a volatile short term resource adequacy capacity market and it will, of course, reduce the risk of

non-compliance with state regulations which carry with them potentially significant financial penalties. if approved, the battery storage facility will be operational and available to the clean power sf program by the end of 2022. as we briefed you on july 27th, during our presentation for item 14, which addressed staff has been conducting sol i guesstations tations and theproposed a comped as response we've received from these efforts. it's consistent with clean power sf2020 integrated resource plan and adopted by this commission last august and submitted to the california public utilities commission and the i.r.p. called for more than 200 megawatts of new battery storage capacity to our power resource portfolio.

and the amendment will add $83,096,000 to the contract over its remaining 19 years and for a total not to exceed $220 million. since the amendment exceeds $10 million in total value, the resolution authorization the general manager to seek approval for the amendment from the board of supervisors. and with that i'm happy to take any questions that you may have. >> any questions or comments? >> yes. commissioner harrington. >> thank you, michael. the fact that we can, i guess, provide this kind of power at peak periods, when we wouldn't be able to do is it, decide resource capacity, is that going to make it cheaper for us to buy power and or will we be able to sell power at a higher rate? is there an offsetting revenue or cost savings system that brings with this? >> >> it's a great question.

it's a risk mitigation it provides. what it does is it allows us to shift energy we would receive from the solar project which is becoming less valuable on the market because of the abundance of solar to a time that is actually increasing so, i guess, the answer partly is your question is yes, if we are in the market to supply our open position, our open energy position, and this will support that at a time that is of greatest value. and over the 19 years, it will provide us the flexibility to move that solar power around as we need to during the day to meet our commissioner demand and grid energy requirements.

>> one other suggestion for marketing this. the summary doesn't say $83 million it says $2,020,000,000 so it's hard for someone -- they think it's an addition of $220 so we can do a better job sometimes of saying, we're adding $83 million, which is $4 million a year over 19 years, it's different than seeing something that says here is $220 million more. make sure how you present this and how you market it as we're going to the discussion. >> commissioner ajami. >> i have a question for you maybe more basic than that. is the solar farm that you are -- the blithe farm, is that ours or are we sharing it with

other utilities? >> good question. our contract is specific to a dedicated project that was developed -- now, we don't own this project it's a long-term contract at the end of the contract, it's the developers' asset. we're purchasing the power from the project under a long-term agreement that is stand alone supplying the city. >> the power purchase agreement is the cost of battery will be added to our power purchase agreement. not as a lump sum. you are not going to own the

batteries, right. >> that's correct, we're providing a lump-sum payment. i think commissioner harrington described the implications of the agreement perfectly. this is the equivalent to a 4 million-dollar per year commitment out of our power purchase budget to our power supply needs and requirements. with payments made monthly to the owner of the facility for the products it's delivering to the program. >> one last question that i have for you. you mentioned that the solar power is the value is so much lower and it used to be -- it the power purchase agreement higher? i mean, it's probably a long-term contract that we have for them. i wonder where that number is compared to what the price of solar is right now?

>> yeah, so our agreement is a fixed priced contract over the term. solar has continued to decline in cost over time. our contract is competitively priced at the time we entered into the agreement and if to the extent the contract is above the current market, it doesn't mean that it will be above the current market in two or three years and you are looking long-term and you want to end up in the right place. >> yeah. the value of the energy, san francisco is connected to the state wide grid they're in and the western region and power is delivered into that grid and

there are markets where the price of that power is settled every hour of the day. and what we're seeing and this is really quite, this is a reflection on the commitment of california to renewable energy in san francisco of course as well. we're seeing more and more solar getting developed and that is driving down the markets value of energy in the middle of the day, so much so that we need to find a way to move the supplies to other times or move our demand as well to the middle of the day. so it's really a change in the way that we use our electricity. that's the reference i'm making. in fact, if we don't have the ability to store our solar power and use it at other times, we may see our costs go up because we may actual will he have to pay the grid to take our solar

power. so that is the circumstance we want to avoid. which is also why our integrated resource plan called for so much more energy storage to be added to our over all portfolio. >> got it. thank you so much. >> is that the main reason we have a 20-year contract with them or longer and are we going to see more of those contracts or as you mentioned, will they be more flexible since the price of solar is going down and maybe battery storage will too? >> commissioner maxwell, generally speaking, we're in an vin now wherewith we're using our buying power as a city, our rate payers buying power to develop new capacity on the grid. new steel in the ground so to speak. in order to make that happen, we need to make a long-term

commitment to secure for the partners to secure the financing they need to build the as asset and the induce tremendous standard for power is typically about 20 years for renewable energy agreements. we have brought to the commission shorter term agreements like 15 years. and when question issue solicitations like the one that resulted in this project, we do ask for pricing across our range of delivery terms and to take a look at that because one of the things we're interested in diversification in our portfolio as far as our commitment this is time. i hope that helps and answers your question. >> yes. >> thank you. >> commissioner moran. >> so this is adding battery storage to an existing contract. are there any changes to the terms of the under laying

contract. >> some are related to the operations of the battery 235 sil tee because it does change the agreement in the sense that with just the solar facility, we are taking the power as its generated and one provision that we have our agreements is that we bid that energy into the market so we can protect ourselves from the pricing. we don't want to bid into, for example, the wholesale market that has negative pricing or significant negative pricing which means that not only are we paying the generator but we have to pay the grid so the circumstance that i was describing earlier. by adding batteries, we now have a dispatchable resource so there are terms that have been updated

around the operation of the facility to account for now for the fact that now we have a dispatchable resource. or we would have a dispatchable resource. the terms of changing are limited to the battery technology and there are no other major terms that are changing in the agreement. it is consistent with other agreements that we -- with other agreements we put in place and standard terms that we use. >> thank you. >> president maxwell: all right. seeing no further comments or questions, public comment on this item, please. >> clerk: members of the public who wish to make two minutes of public comment on item 13, dial 1-415-655-0001 and id146

238-1428-pound pound. do we have any callers? >> there are three callers wishing to be recognized. >> hello, caller, your line is open and you have two minutes to comment on item 13. >> caller: thank you, president sophie maxwell and my pronounce are she and her. i take claim to be an expert but i ask that you entertain my testimony anyway. this is very important and it's based in reason and the basics. curtailment of renewables is a problem in california and across the country. it's wasted energy that could otherwise be put to good news. talks about the importance batteries in the past.

this is a part of supply and demand in response. being able to moderate and have predictability in our supplies and our pricing. we don't want to be a negative situation where pay for pay we also don't want to be severely exposed from the prices going through the roof. so, this is an investment we ask that you vote on this and approve it, but to make your case before the board of supervisors that it is worthy of approval. it's not just about reducing particular at and greenhouse gases, it can save the people and businesses of san francisco money, real money. i practice demand response to my own home. and save money. so, i wasn't there and i ask for a yes vote. thank you for entertaining my testimony.

appreciate it. >> thank you for your comments. next caller, your line is open and you have two minutes. >> thank you, commissioners, good afternoon. i'm not going to what size battery that you buy and use it's your business. i'm looking for the board report and honestly i don't see anything, anything related to lbe participation. this is a 200 million-dollar trust. yes, i do grant you the majority of the money is going to the potteries and the hardware. but where is transportation? what is scheduling? where is the maintenance of the system all together? that all requires scheduling. where is your paying him a

couple million dollars a year to fund his office e. m.d. and he is doing absolutely nothing. where is the local business participation on this 200 million-dollar contract? aren't you tired of this, guys? the only way some of us can get certified or get work is through bribery. that is a fact. i don't get my certification. if i don't pay him and say, dwane jones, i don't get on the list to get notified. would you please just respond to me? where is the participation on a $200 million san francisco puc project that is funded by local funds. thank you. >> thank you for your comments. next caller, your line is open and you have two minutes.

>> david pillpal again. so not ot resolution, i guess that's my theme for the day. on the final resolved on page 2 of the resolution it looks like there's either a period missing or it cut off there and it could read and seek board of supervisor's approval with charter section 9.118 or it could just end after contract. i'm not sure what happened there perhaps staff can clarify if it needed any additional language or just a period. and just in general, on the concept here, this sounds something like the water bank but in a functional way and without the modesto inter lake irrigation district. so it sounds like battery storage helps us or all kinds of reasons including more operating flexibility and that sounds like a good idea.

so, great work to michael and the rest of the staff on making this happen. we've seen some interesting innovations in the power and enterprise in the last few years and i just wanted to note that, thank you, very much. >> there are no more callers in the queue. [please stand by]

>> for the purposeses of c.e.q.a. of the san francisco administrative code. this is represented by mike hines. >> this proposal for updating our clean power for the fiscal

year. go to the next slide. we'll go through a little of the background about what's driving this proposal and what is taken into it. we'll go over the the proposal itself and i'll turn it over to mike about how we're planning to mitigate some of the risks associated with the proposal: right now we're operating under a delegated authority. whenever pg and e is less than 5% higher or rates for comparable costs. cover our costs exactly or 5% higher. right now rates were adjusted back in july.

at the time we were expected to have a rate -- i'm sure you remember this proposal, we're operating at a tight position this year. we set a time that if it changes we would be back in front of the commission to talk about those.

this is a tough decision to make. there's a lot of considerations and they push us in dirn differt considerations. we want to maintain prudent reserves to keep our credit quality strong. at the same time we're worried about the customer bill impact. we're still coming out of the

pandemic and businesses are trying to reopen. they might be looking at their bills and the option to return to pg and e. this impacts the entire sf because once they are out, they are no longer our customer. right now we're following our rates -- we're hoping to base rates on our cost of service but

that's something that's still in progress. we're trying to propose something to get us through this fiscal year and be back in the spring with a new rate study. in order to do the math, we're looking at the generation portion of the bill. that means we're comparing the pc ia versus the pg and e generation charge. when a cuff mere paid their bill, they are looking at the entire bill which includes the delivery charges. the percent is lower. i wanted to put that caveat there because it's important to keep in mind because these percentages are not exactly what the the customer would experience.

what we're proposing which would go into effect on december first of this year, our rates could be up to 15% higher than pg and e. each pair of bars is comparing clean sf on the right to pg and e on the left. it's making a lot of assumptions about usage and we're looking at three different timeframes. in july 2021, rates that were established at our current authority. the pg and e customer is paying two dollars less than a clean power sf customer. if we were to pass this authority, that would let us

increase our generation charge, that's the green portion of the bar there in order to set the generation portion of the bill to 15 percent for the customer. that works out to five dollars on the monthly bill. what we're proposing works out to five dollars more than a regular customer would pay which is about a six percent different. what we're forecasting on the right is under pg and e rate pay. we expect they are going to increase their generation charges. in addition, we're expecting that the cpu c is going to

decrease to clean energy customers. that let's us increase our generation charge as well as fill in the gap created by that lower pc ia a. the difference comparing the two is still five dollars on the average monthly bill or six percent on the total bill rk , we'rehaving more of their payo to clean power sf than pg and e. we're projecting that this will result in rate increases in both november and january. this table showed a comparison of what we were forecasting back in may compared to what we're

forecasting right now. we were expecting that we were going to use 40 million to get through our reserves this year. with both this new rate action as well as a the changes that happened both the increase and forecast, we're now expecting that we'll end our reserves with 77,000 left. that's meeting our current policy. our current policy has two pieces. the minimum is our operating reserves must be 25 percent of our annual expenses. i'll note that as part of our rate study we're examining the rate policies in order to tweak them for the supply markets we're looking at right now.

one thing i'm sure we'll get questions on is that's a big change. you'll notice a lot of what is different is what is happening in the pg and e rate case. the numbers is what they have submitted and has been updated a couple of times. it's not 100% certain, to be safe, we modeled a couple of scenarios. we're showing pg generation going up. we also looked at a down side scenario where there's no change to the cpia. the down side is much much worse. we would use 35 million in our

reserves. i do want to note that we think that scenario is pretty unlikely. our consultants have told us in prior years where there are known issues, they are not expecting to see that this year. in a addition to that, is part of reasons where that basic pc ia increase is that costly power market. i'm not the expert here, it's technical. it's helping cover the initial costs of power. when the market is high, there's not as much above market cost. it does not need to be as high in order for pg and e customers

to be paying their fair share to clean sf customers. the pc ia need it go down for the same reasons that are driving our costs up. when we talk about this 15 percent margin. is that high? that's something we're definitely keeping an eye on. the graph on the left is showing just the generation portion of the bill. you can see the lines with power sf and the 15 percent we're going up to. the exact same information looking at the average bill for total customers. our proposal will take us up to

6 percent. we're currently in the middle of the pot. with this proposal we would be on the higher side although not the highest. there are differences between clean power sf and others are able to pay a lot lower rates. they have work through and keep in competitive price while using up some of their reserves to push in the impacts of these market prices. we've done that and had a big decrease two years ago. we cannot do that forever. the other thing is the product that clean power sf offers is substantially greener than the

base product that many others os offer. they don't have as much renewables. it's reflecting that we're very committed to get there. our customers are clued in to when they think about the opt out. i'll turn it to mike to do the next slides. >> thank you aaron. good afternoon, commissioners. as aaron just noted increased customer opt out is a risk that we need to continue to actively

manage. you can see from the data on this slide, the rate usage per customer. we principally serve household accounts with one percent of the customers we serve using half of our electricity supplied. some of these customers with larger bills may be more sensitive to bill increases or more closely manage their costs. as you may recall they phased the enrollment into the clean power sf program over a four year period. we delayed enrollment of the largest accounts in the city to

allow time to engage with these customers. that allowed resources and support customer group, we found a high touch roll out a low opt out during enrollment. to understand the financial consequences of increased opt outs, we modeled a 10% opt out rate across the board. all customer classes. this would mean that during the fiscal year an additional six percent opted out of the program starting in january. at 10 percent we would be in the upper tier among cca's in our region as referenced.

you can see that within the higher opt out, we project a reduction of an additional 6 million in net revenues in base case. you see a reduction of three million from the initial customer opt out. while certainly not ideal it creates a manageable amount of exploaz you're. exposure. i think aaron said this very clearly and well, we cannot know with 100% certainty, given the higher costs within california and globally. of course, you want to minimize

customer opt out at the greatest extent possible. to do this we will it continue to provide timely reports to our customers and report targeted out reach. we're working an a digital engagement campaign. this will under score our alignment with customers values. in addition by following best

utility practice, we can resize our power purchases for customer demand as it changes. as with prior rate actions, we have and will continue to communicate this rate change openly and transparently with the required notice of rate action in the newspaper at least 15 days prior to the commission meeting which occurred prior to this meeting, of course. we'll provide onbill messaging notifying customers of the new rates. we'll publish the new rates on our website and we'll continue to provide personalized cost comparisons to customers for their clean power sf service.

as we usually do, our team also presented the rate proposal to the rate fairness board this past friday. i'll pass it back to aaron to elaborate on some of the feedback we got from the rate fairness board. >> we don't have a slide for this because we wanted to get this implemented before next friday. what they wanted to share with you about this review. they understand the clean power assessment is a tough spot. and they're also understanding of the fact that's hard -- they did want to really

emphasize their support that we need to get out there and talk about it proactively. you have to remind them of their reason for their support. clear and early communication during the roll out. i think that's it an we're happy to take questions. >> i will start. i have a few comments. the two of you, you guys -- thank you for taking the sword. that's basically what is happening right here. this is a train wreck as far as

i'm concerned as a commissioner. i get it. if you're looking in the newspaper and start talking about how pg and e has done this and we have to keep up. and clean power is good. this is a train wreck. raising rate is not what the message is about clean power. it's about us taking care of stuff and making sure that we're going to be the best for san francisco customers. that being said, that is my first take on the wonderful economic analysis that you did. but this is not the end result that clean power lower prices

and everything about climate change is supposed to be about. it's tieing things to pg and e. i don't see the upside to any of this. that's my original comment despite being a steward knowing we have to deal with this economically. >> i do think this is unfortunate. i wouldn't call it a train wreck. i think people will understand. i thought that presentation was one of the best ones in my years on the commission. i thought it was really well thought out. your ability to do that risk analysis and let us know the up sides and down sides.

one thing i would ask is all that great information and the comparisons and the discussion of the green impact of what we're doing and everything else. you can figure out some way to put that up front -- you have all the information. the reason we're all doing this. throw that in a little higher

>> i wonder if we are right now suffering from the fact that we're -- so they can manage their assets a little

differently and we're trying to find our footing in the process. i'm wondering if for example, is this something we have to think about a little more strategically as to how to manage our relationship and put together our strategies to make sure that pg and e will not end up creating these situations on your end because they were supposed to raise their rates. we still have to raise our rates. they obviously have a capacity to leverage that process. we don't have that. the difference between the capacity and impact along the wait. just a last comment, it's not a question but a comment, i think the value you're providing to

people is extremely important. you did highlight that. people don't come into clean power just to get cheaper energy. they are coming for fact they can get clean energy. it is important for to us continuously remind about that. people are willing to pay more for it, like a better pizza. it's not a comparable commodity. it's value people are paying for. the point is, what you're bringing to the table is much more valuable than the price tag

that it has. we have to make sure we're demonstrating this continuously to our customer. >> is pg and e, are they at like 60 to 70% clean power? >> i'm happy to take that one, pg and e's portfolio, i believe in calendar year 2020, that's how it gets reported is on calendar year basis, i believe it was around 30 percent renewable energy. pg and e does have other what we call greenhouse gas free resources, it has hydro electric power in its portfolio in this

state, nuclear. >> stop there. i think there we are. we can show people. especially if you put the nuclear first. i think there are ways, without saying anything bad or good, showing. we have to market ourselves better. we have so much to market. if put keep going on price, we could lose. if you go on something else that people value, you could win every time. it's against our policy to have nuclear energy in any way shape or fashion. that's important. it's important for us to say. i'm glad to see this is what we're doing. i'm glad you're going to do more

touching. i think we need a campaign. >> thank you for that input and we will run with this direction. >> can i ask either mike and aaron to answer the two questions i asked. i ran through them, i hope you had a chance to wrie them down. gentleman yeah. i can answer a couple about rate. you're 100% right that when they increase their delivery charges. the wild fires, i believe, has added to the delivery charges. there's not much we can do about

that other than make mention at the cpu c that it's important. different rate schedules. >> it was more about decoupled rate or a per use rate? i'm happy to expand. >> yeah. we basically mirror all pg and e's rate schedules. if they are charging more per kilowatt. most residential, we shifted over to time of use. we're mirroring time of use for those customers. there's seasonality. one of the things we're hoping to did is hopefully simplify our

rates a little more. we [indiscernible]. >> i want to add one thing to that with this idea of decoupling usages. one of the areas we had was rate stability. we've been in a predicament which is rolling out a new program to customers who are comparing and delivering a competitive service. we need to deliver a competitive

service and really start to move away from following pg and e around. that's a problematic trend. i think this year we've seen the most volitility we've ever seen. it only emphasized the challenges it presents to us and running a stable business. i agree with the enthusiasm for the rate study. i think this is going to be an important step for us in this direction. >> i want to be clear about a

comment. in california it isn't quite so much as it is. but much of america is poor. despite the altruism and green power and good power and things are good, people do look at the bottom line. people go to walmart's because they can get clothes because they can afford them even though they are made by slaveses in other areas. people open their rate bill and find out where they are going to buy their socks and stuff. they are going to do it because they can afford it. san francisco and california we're a little bit of a bubble of better income people or

whatever. by the way, i'm not a free market economist when i say this. the the bottom line is that is what is driven the way people purchase in this nation. bottom line. it sucks. don't just talk about great ideas determining budgets. i just wanted to reiterate what i started before. >> thank you. >> just one comment, i'm sure you've followed the rate structures. obviously in the water sector we're behind.

decoupling in san francisco and around the nations because of aging infrastructure and having to recover the cost of service. having said that, point being as we are establishing ourselves, we have to make sure we have the right choice and process put in place not just because we want a stable rate or lower rate. but how can we in the long run be a stable sustainability utility. the short term process of trying to accomplish as much as we can and create some precedent that's going to be hard to get rid of and establish. it's important to remember these things as we are doing this and -- decoupling is something a

lot of companies have been doing across the nation. it's not just following pg and e. it's following best practices. >> any other comments or questions. seeing none. public comment please. >> members of the public wishing to make public comment please dial the number on your screen. to raise your hand to speak, press star three.

>> nobody should go bankrupt for the cause. you can't subsidize our way out of this. many people are price sensitive. i'm price sensitive. it's reasonable to be price sensitive because people are looking at what they have in their bank accounts. i want this program to succeed long term. we do have to ask ourselves if renewables are cheaper than non renewables. our procurement costs should

drop over time. i'm hoping as we go forward [indiscernible]. i don't want to lose people. if we start losing people, it's a downward spiral for the viablity of this program which i've supported from the start. >> thank you for your comments. next caller, your line is open, you have two minutes. >> great. happy to follow my good friend, wherever she is today. i spoke before the meeting, i

forgot to ask if there was a written letter supporting the state board -- i would seek to get a written letter transmitting the rate fairness board transmission on this. i'm still a fan of the changed time of use rates that address cost of service and environmental goals at the same time. that's a good and important. i understand enough about the proposed change to the rate setting methodology to deal with fluctuations and support puc. whereas clause not indon'ted in.

>> thank you for your comments. there are no more callers in the queue. >> thank you. public comment on item 14 is closed. >> thank you.

any further comment on this item. >> (roll call). >> next item is item 15 services to renew city land for a project of ten years. general manager to speak to the supervisors to authorize the agreement. >> thank you commissioners. i appreciate the opportunity to present item 15 today. to serve our about 4,000 power

accounts. the city pays pg and e about $20,000 a year to deliver a apae power. the purchase distribution services are described in the whole sale distribution tariff. the city and pg and e disagree on the distribution and terms and policies and cost of connecting without improving the safety and reliability of the system. we've engaged in negotiation and litigation to set reasonable access to pg and e's distribution system. i'm pleased to report that we have come to an agreement for new affordable housing developments that meet certain conditions. pg and e will allow those to

connect secondary voltage. working with housing an community development, we estimate that the a dpreement ar the next ten to 15 years for housing units and an estimated 13 mega watts of electric load. the amount of load represents approximately 27 percent of the future expected load in the development pipeline. this agreement is limited in the relief it provides. it does provide relief including uncertainty and how it move forward an receive safe, reliable, affordable, service.

the preservation of existing affordable housing in san francisco. in order to authorize the existing agreement, it will be subject to further approvals. with that summary, we recommend you approve this item, i'm happy to answer any he questions you may have. >> colleagues any questions or comments? >> thank you. it's obviously unfortunate we couldn't make this happen for a

much bigger section. i'm glad we got this part, thank you. >> any other comments. seeing none, we'll open up to public comment. >> members of the public who wish to make two minutes of public comment please dial the number on your screen. to it raise your hand to speak press star three. mr. moderator do we have any callers. >> madam secretary, there are no callers who wish to be recognized at this time. >> great. may i have a motion and a second. >> motion. >> second. >> it's been moved and seconded. roll call vote, please.

>> (roll call). five ayes. thank you. >> great. madam secretary. will you read the item to be heard in closed session and announce public comment. >> the following items will be heard in closed session. item 18 san francisco administrative code section 10d1 existing litigation, proposed settlement to pay all claim.

settlement of unlitigated claim. fd thomas incorporated. pay the city 750,000 for release of all unlitigated claims for failure for water pollution control plant. item 20 pursuant with california code section 10d1 conferring or receiving advice for the electric and gas company as an adverse party. any member who wishes to be

heard for two minutes of public testimony. raise your hand to speak press star three. mr. moderator, do we have any callers? >> madam secretary, the queue is empty. >> motion to assert the attorney-client privilege. >> may i have a motion and a second to assert the attorney-client privilege. >> i'll move. >> second.

>> moved and seconded. may i have a role call vote, please. >> (roll call). five ayes. >> we will move to closed session. once we are all in closed session, we will take ten minutes. when we move in, our secretary the board of supervisors resolves on the items listed for 18 and 19 and item 20 was discussion only. madam secretary, will you read the next item, please. >> clerk: next item is 22, whether to close items in closed session administrative san francisco code 67.12a.

>> president: may i have a motion not to close items in closed session. >> commissioner: motion not to close. >> commissioner: i'll second that. >> president: okay. it's been moved and seconded. roll call please. >> clerk: [roll call] >> president: thank you. madam secretary, is there any further business before the commission? >> clerk: no, madam president. that concludes your business for today. >> president: then this meeting's adjourned. thank you.

>> shop and dine in the 49 promotes local businesses and challenges residents to do their business in the 49 square files of san francisco. we help san francisco remain unique, successful and right vi. so where will you shop and dine in the 49? >> i'm one of three owners here in san francisco and we provide mostly live music entertainment and we have food, the type of food that we have a mexican food and it's not a big menu, but we did it with love.

like ribeye tacos and quesadillas and fries. for latinos, it brings families together and if we can bring that family to your business, you're gold. tonight we have russelling for e community. >> we have a ten-person limb elimination match. we have a full-size ring with barside food and drink. we ended up getting wrestling here with puoillo del mar. we're hope og get families to join us. we've done a drag queen bingo and we're trying to be a diverse kind of club, trying different things. this is a great part of town and

there's a bunch of shops, a variety of stores and ethnic restaurants. there's a popular little shop that all of the kids like to hang out at. we have a great breakfast spot call brick fast at tiffanies. some of the older businesses are refurbished and newer businesses are coming in and it's exciting. >> we even have our own brewery for fdr, ferment, drink repeat. it's in the san francisco garden district and four beautiful murals. >> it's important to shop local because it's kind of like a circle of life, if you will. we hire local people. local people spend their money at our businesses and those local people will spend their money as well. i hope people shop locally.

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>> chair: good morning, and welcome to the rules committee of the san francisco board of supervisors for september 27, 2021. i'm joined by vice chair raphael mandelman and connie chan. our clerk today is ms. alyssa samera a. do you have any announcements? >> yes, mr. chair. the minutes