stand by for the san francisco public utilities commission meeting of september 10, 2024. september 10 meeting of the san francisco public utilities commission is now called to order. can we have roll call, please? >> president paulson, here. vice president rivera, here. commissioner ajami is excused. commissioner stacey, here. we have a quorum. >> thank you. so, i like to acknowledge san francisco public utilities commission acknowledges it owns and stewards of the land of the muwekma oholone tribe of the mission san jose verona band. also recognizes every citizen residing within it greater bay area has and continues to benefit from the use and occupation of the muwekma

oholone tribes aboriginal lands since before and after the san francisco public utility commission in 1932. it is vitally pornts important we recognize the history and acknowledge and honor the fact the muwekma oholone people established a working partnership with the sfpuc and are productive and flourishing members within the greater san francisco bay area communities today. so, i would like to also let people know that i was-i was called by the mayor's office yesterday and informed that i'm not going to be renominated for the san francisco public utilities commission and i just thought i would mention that. i think many of you remember over four years ago i kind of came just a little kicking and screaming to this commission. i was--so many people in the labor movement i served over 20 years

as executive director of the council as well as secretary treasurer of the building and construction trades council recruited and pushed me. i usually don't sit on commissions, i advocate in front of them, but anyway, the mayor's office, a lot of labor people did it and i have been sitting here and i have been honored and serving in this position for many years now and i was frankly reappointed also to this commission and unanimously approved by the board of supervisors as part of the checks and balances as things happening. and considering that when i was walking down the isle not too damn long ago talking with the mayor's folks and whatever, i reaffirmed i continue to want to serve as your commissioner, because it has been a honor and i'm actually it is breath-taking that i got that call yesterday and i'm sure the board of supervisors yesterday

or as of yesterday didn't know that was going to be. the other thing that is breath-taking, i was told by the mayor office, everybody on the commission up for reappointment is also not going to be reapointed, so this is pretty breath-taking i am hearing this now. i just wanted folks to know that. i might say that, i read the city's charter and i know the city charter has a pretty very vibrant series of checks and balances. it is also a extremely mayor heavy charter. the mayor has a lot of power in terms of running administration, which people like or dont like based on usually what the politics are. here is what is funny when i was reading around, there is some knuckle head that has come up when we vote this

november, a piece of legislation that will give the mayor more power and get rid of some damn commissions as we are going on and boy, i tell you, if there is a-how should i say, a fake solution, in search of an imaginary problems and don't know what knuckle heads. i'm all most finished. i understand what's going on. thank you. i am--i know there is a bit of slap in the face for the labor movement and slap in the face to public service when things are said and done, but that being said, i know that the workers of san francisco are what make this city and county work, and i would be more then remiss in my couple words, no matter what comes from this side of the bench during my course of many years here, those who do the work and

in particular in this great department protecting our natural resources and our water and putting together all infrastructure, i am just more then pleased i have been able to be a commissioner for the two terms that i have been on and i would be remiss if i didn't say that. i also fellow commissioners, i am also honored to serve with both you and fellow commissioners that i also served with and i'm honored that you guys have thought it important that you elected me to be the president during this term that i'm here. sounds like the mayor's office has different type of vision for public service. so, anyway, i will thank you fellow commissioners for serving. commission secretary, can you read item number 3, please? >> approval of the minutes of august 27, 2024. >> are there any corrections or

additions to the minutes, commissioners? seeing none, i'll entertain a motion and second for item 3, please. >> motion to approve. >> sorry, excuse me, before that let's turn this item 3 over to public comment. thank you. >> remote callers, please raise your hand if you wish to comment on item 3. do we have any members of the public present who wish to comment on this item? if so, please approach the microphone at the podium. moderator, are there any callers with their hand raised? >> mrs. lennear, there are no callers that wish to be recognized. >> thank you. >> okay, public comment is closed. can i now entertain the motion and second? >> motion to approve. >> second. >> there is a motion and second. can we have roll call, please? >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye. the item passes. >> can we read item number 4, please?

>> general public comment. members of the public may address the commission on matters within the commission jurisdiction and not on today's agenda. remote callers, please raise your hand if you wish to provide general public comment. do we have any members of the public present who wish to provide general public comment? if so, please approach the microphone located at the podium. >> thank you for putting your card up. we should always make sure we see there are cards on the desk so we can recognize those in the house. thank you. >> [microphone not on. unable to hear speaker]

no one is above the law. not even the mayor. i served in the federal system, and i have been all over the world. we always have to respect. you just can't go and bulldoze and do whatever you want to, and if you look at your organizational chart and the

commission, you know what each one of you all has to do. now, if the mayor doesn't respect the chair, do you think she will respect anybody else? she is a laughing stock of the nation. when the 49er was shot, she said, this happens all over the nation. we are not talking the nation, we are talking about union square with different kind of policeman. about 40, 60, 70 police and somebody got shot in a day. that is your responsibility, mayor. and now she's come to the commissions. the commissions are there to have a standard. thank you very much. >> thank you. >> moderator, are there any callers with their hand raised?

>> ms. lennear, there are three callers that wish to be recognized. >> thank you, go ahead, please. >> caller, i have unmuted your line. >> yes. hi. this is max. can you hear me? >> yes. >> we can hear you caller. >> wonderful. i think i have two minutes so i'll address this quickly. i prepared comments. my name is max, i live in hillsborough california about a 4 minute drive from [indiscernible] at the crystal springs reservoir and i'm participating today remotely. apology for not being there in person. i wanted to address the commission today. i recognize this might be a 10 year journey i'm potentially on, but i wanted to look at the public use case of the crystal springs reservoir to understand how to actually update the peninsula watershed management plan over the next decade to allow

for public access. i had the opportunity to [indiscernible] watershed management plan as well as speak to tim ramirez as the actual mechanisms how to do this with not just this commission but a variety of other environmental commissions as well. as you are probably aware, lake merced, which is also managed by the commission is a reservoir and has public access. do have public access for kayaking or swimming or canoeing, so the goal here is to potentially drive and set up a subcommittee or help whatever way i can as a citizen to make this reality, and learn more about that process that it might entail. thank you very much. >> thank you for your comments.

caller, i unmuted your line. you have two minutes. >> thank you. good afternoon, this is peter dreckmyer, policy director for tuolumne river trust. last week i sents you a letter and support materials regarding a couple resolutions that were passed by the commission in 2019 and 2020 directing staff to include biological goal and adaptive management in-staff denied request for information showing they have done this. based on attorney client communication. that is no no. the request [indiscernible] revealed no correspondence related to this issue, and i ask for response to my letter and i hope you will support that. we fought really hard to get this language in those resolutions.

basically staff was saying tuolumne river voluntarily agreement is wonderful and produce more fish with less water. we asked, what happens if it doesn't? is there a fall back? are there biological goals to manage success and adaptive management to address deficiencies and there were four meetings, four iterations of the first resolution, and it passed and it was noted by staff that this was policy direction. what i have seen over the years, i have been working on the issues for 17 years, staff is very good at waiting out commissioners and then dropping a request they have or directive, so the first resolution none of the current commissioners were on the board. for the second one, only one, mr. paulson. and so, it is really critical for us to answer this question, did staff follow direction, and include

biological goals and adaptive management in the tuolumne river volunteer agreement? >> thank you caller. your time has expired. caller, i have unmuted your line. you have two minutes. >> thank you very much. good afternoon president paulson, members of the commission. [indiscernible] i am speaking just to share some remarks in response to the information that president paulson just shared. i wanted to take this opportunity to thank you president paulson and presumably commissioners rivera and stacey for your service on this commission, for your service to the water customers and particularly within my authority, your service to the wholesale customers. i have appreciated the respect that you offered me in your time there

on the dais, and i wish you the best in what is to come. i hope i will see you later this month when i come on the 24, but if i don't, i wanted to make sure i had a opportunity to speak to you so thank you very much for your service to the public. it is critically important people step forward and do the necessary work and the leadership roles for good government to work. thank you very much. >> thank you caller. there are no callers that wish to be recognized. >> thank you. >> report of the general manager. >> thank you madam secretary. item 5 a is a draft 2025 hazard and climate resilient plan. melissa higbe will be

presenting. >> thank you commissioners. my name is melissa hig hp be the resilience program manager in the office of resilience and capital planning and thank general manager herrera including the item on the agenda today. i will speak about the draft 2025 hazard climate resilience plan. it is currently available for public comment and i love to be able to answer any questions you might have about the draft plan. sfpuc is a critical partner in updating the plan and implementing many resilience actions that i'll provide an overview about today. if i could get slides, please. thank you. so, as a bit of background rbs this plan provides a roadmap to improving resilience in the sit a eand includes project s for fund. it makes hazard information more accessible to the public and developed

with extensive department and stakeholder engagement. fulfills a few different requirements we have at the federal level for eligibility for fema grants and public assistance. this needs to be updated and approved by fema every 5 years. at the state level, it helps with compliance with sb379 to be doing climate adapation planning and lijic linking to our general plan and at the local level companion to the climate action plan and helps update resilient sf our resilient strategy. little overview of the scope, it includes 13 different natural hazards and also includes overview of climate change projections and how climate change influences many hazards making them more frequent or more severe. for this update in 2025, we have done a more targeted update considering we did a very comprehensive one in

2020, so we focused incorporating new science like around how precipitation patterns are changing and ground water is influenced by sea level rise and new risk assessment and plans in the city like the waterfront resilience program the port is working on with the army corp. in terms of the planning team, we worked with a lot of different part ners across the city. interdepartmental planning team includes many staff from the puc, for community engagement we focused on meeting the community where they are going out to existing community meetings, especially in environmental justice communities. we have been to about 15 different events in the community to hear about their resilience priorities and focused on prioritization. the 2020 plan had 96 different actions. this draft has 74. we really tried to look at feasibility and benefits in doing that

prioritization. i just wanted to highlight since we done community engagement the themes i have been hearing. i wanted to highlight the first 3 as the most relevant for the sfpuc. i heard a lot of interest in increased energy resilience from the community, especially after the extreme storms that we had in the past winter wanting to avoid power outages and having improved access to backup power. earthquake resilience is top of minds for folks, including [indiscernible] and having adequate water supply for that. waterfront resilience is also a big topic for folks, including addressing contamination, adapting bridges and using nature based solutions. this engagement we did really informs the heart of the plan, which is chapter 7. for strategy include three different pillars.

buildings, communities and infrastructure. it is organized around 17 different objectives you see here on the slide, and again there is 74 actions. it is a lot to cover. i wanted to highlight for you all today where the sfpuc lead actions really sit in this plan. there is a couple in the building section around existing buildings and new buildings. there is another one in capacity building and collaboration among agencies. and then of course many in the infrastructure pillar. around electric power systems, protecting waterfront assets. adapting the waterfront and of course, increasing resilience of the local and regional water systems. so, these are some of the 2025 actions that puc is leading. to highlight for you all, in the electric power area, including

energy or enhancing energy resilience at critical facilities and improving our energy system to support new development and increase resiliency. of course implementing the ocean beach climate adaptation plan, and developing comprehensive assessments and combined flood risk in each watershed. and these are the two really big areas here around local water and wastewater systems, and regional water supply systems. actions like, the pipe replacement prioritization program. a couple actions around improving resiliency and new infrastructure system at treasure island. working towards expanding [indiscernible] and pursuing green infrastructure projects to manage storm water. the regional water system improvement and regional dams, for flooding and earthquake events.

managing wild fire risks in sfpuc owned watersheds. diversify water supply options and adaptation planning in the water system. and just couple more in the building sector. working on the flood water management grant program. supporting increased electrification, and incorporating flood resilience into the building code, and lastly in the community section, around collaboration with peer agencies developing a city wide policy and proposed governance structure for flood resilience. that is a overview of the many many actions that sfpu is leading on resilience around the city. i have one more slide that highlights sfpuc also as a partner on many other actions being lead by city

agencies. a couple of these do relate to energy, but many are related to the city efforts to plan for increased flood risk. sfpuc is a really critical partner in that effort. as i mentioned, the plan is currently available for public comment till the end of the month. we are continuing to do commission presentations at this time and brief board of supervisors. following receiving and addressing public comment, we will be submitting the final draft to cal oes and fema. they take up to 6 months to review and then will submit to the board of supervisors for adoption. so, with that, i just wanted to thank you and open up to any questions or comments. >> great. thank you so much for summarizing all this great work you are doing and i think your last slide or second to the last slide in particular, kind

of hits the heart of the one question i have and the question just to frame it is in terms what you are doing within the puc as a stand-alone hazard and climate resilience plan and i notice a few dots here and there whether public works or tida and [indiscernible] different areas based on what type issues and whether or not it is rising sea levels or fires. there is all these different touch-points. i wonder if you can do a quick summary as this plan when it goes to the board of supervisors or farther up the food chain where it fits in terms of total context? as a stand-alone plan what the puc does and where it fits in the department of emergency service, whatever, how it fits in the whole city plan. a quick summary what is different what we are doing versus what

anybody else is doing. >> sure. this is actually the city plan, not just the sfpuc plan. this does cover all the resilience work happening not just in the sfpuc, but also in the planning department, dbi, city administrator, so i tried to highlight--we- >> so you are the lead and employed by this department. you are not in some other department, correct? >> i am in the office of resilience and capital planning. >> got it. >> and office of city administrator. >> got it. >> we have taken the lead on updating this plan and bringing in other departments to participate in that effort so we do have a integrated city wide strategy and don't have every department having their own different efforts, but rather looking at whether the pieces together. >> got it. that answers my global question without getting into details. thank you. commissioner stacey. >> thank you and thank you for

your work on this. i don't have a question, i mostly have comments and only to emphasize how important i think the climate resilience work is and also the work that the city does under the climate action plan. i know there is probably some overlap that happens between the two that when we take actions to mitigate climate change that it also help strengthen our resilience both as a city and a region and i think that is so important and this is really critical work. the climate clises is upon us. when i worked on the issues in the past i think i said this before, i both felt very angry and also very anxious about the future, so the more we can do now to prepare for it and to mitigate it is just incredibly important and i think

the puc is already working in so many ways to address climate change and to try to mitigate climate change. i know your office is too. many city departments are. i'm not saying anything new or exciting here, i just really want to emphasize the importance of it. from the puc's point of view, i think that we have been very proactive in trying to address the effects of climate change, as well as do our part to mitigate to the extent we can the effects of climate change in our water system. we are looking at diversifying the water system, we are preparing for drought, we are looking at using ground water better and reflinshing it in a wise fashion. i think we also need to really focus on protecting our watersheds and protecting all the rivers and creeks

that the puc draws water from and has care-taking responsibility for, whether the tuolumne river, alameda creek, [indiscernible] or san mateo creeks down the peninsula, but protecting our watersheds is also a really important part of not only resiliency, but also helping mitigate the effects of climate change. i know we have been the puc has been looking really hard at trying to improve water quality in the bay that the changing temperatures and the changes to the bay are going to effect everything we do with respect to wastewater, and it is a collaborative effort with all of the water districts and utility districts around the bay area. we are looking at better treatment and better treatment processes. i know we are always looking for better ways, low energy solutions for

how we treat our water and how we address water quality and i think these are all really important. treasure island water treatment is a very interesting step forward in how we are trying to improve on our water treatment and to address the effects on the bay. i think the puc and the city has a really important role in developing clean energy. i know this has been absolutely the focus of our energy enterprise, and we need to continue doing that and the city has been also looking where we can put solar panels on city sites, puc sites, puc reservoirs. i think we have to look at all the assets and really think about how we can improve and expand our clean energy portfolio and i think that-again, i know i'm not saying anything

new, staff is acutely aware of this, as are you, and many city departments i just want to emphasize how important it is. i think our green infrastructure program that the puc sponsors is really important and a way of addressing the flooding issues we see with more extreme weather events. we are really already seeing pretty dramatic changes in the kinds of weather and the kinds of flooding events we have in the city. finally, and i know this is part of your resiliency plan, i think we want to look at city equipment. how can we improve it and how can it be cleaner and how can we address changes in technology and keep ourselves up to date. i know this is a ongoing process and i know all the information, the intelligence, the technology is always evolving and i really want to emphasize how important it is for us to

really stay as a city and as a department as much on the cutting edge as we can. finally, i think there is a lot of work that the city has begun in using water resources more wisely on site. thinking about how to reuse water and conserve water on site, and that's also a really important component of both climate action, and climate resilience. i really honor the work you are doing and really can't stress enough how important it is not only for the city, but the region and future generations. thank you for hearing me out. >> thank you commissioner stacey. i appreciate that. i do just want to highlight the intersection with the climate action plan like you mentioned and we do highlight each of these actions that have cross-over with climate

action. things like electrification and heat pumps that reduce emissions and also provide cooling as we face more extreme temperatures so that is just one example. i think many of the other points you made are captured in the plan and have been raised as priorities by staff. i think the technology change that you mentioned is something that i think potentially a gap in the current draft of the plan we could be think ing about how do we keep abreast of how technology changes so quickly and things like a i. i appreciate you bringing that forward as well. >> thank you so much for this update. i am personally a planner so i love reading the good plan and kind of drives my wife crazy sometimes because

i over-plan, but i was really impressed, specifically the interdepartmental team that is so important that everyone is oen the same page and getting everyone's voice being heard. it really makes a difference within the team and within the city family itself. the one thing that really stood out to me was the community interaction. not only going out and preaching what is going on, but having that feedback, having that interaction where you listen to what the community has to say and as you know, different demographics and different geographical locations within the city are going to have different prioritize, and it just--i truly appreciate that your team is doing that and i just want to let you know that i think that's one of

the highlights for me is getting that feedback, because a lot of times we plan things and ultimately the citizens of the city are the benefactors and we want to make sure that their voice is heard so thank you so much. i appreciate it. >> absolutely. thank you. >> great. thank you so much andia sume we'll continue to hear from you as things move forward. this is needless to say, very important city work. so, let's-commissioners, let's open up to public comment. >> remote callers, please raise your hand if you wish to provide comment on item 5 a. do we have any members of the public present who wish to comment on this item? moderator? >> we have somebody at the microphone. >> thank you.

>> mr. acosta, are you-? no. okay. item 5 a, i climate resilience plan. public comment. thank you. >> in order to do a needs assessment you first have to realize that russia, china, india. these are countries that depleted in the united states are the key culprits that depleted the ozone layer. we don't mention that. when we talk about climate change, we can talk about all these other things, but what about our children? what about human beings? not a mention of it. in san francisco, we have tons and tons of methane gas spewing in the air. liquefaction.

the areas prone to liquefaction. no mention that. at one time, our department of environment had a plan when the board of supervisors and point blank they told them, there is no money and what did our mayor do for all the talk? she didn't even lift her voice to give them money. what we do is we know this is a enterprise department and has money, so we put a little money here, put a little money there, and try to pull wool over our eyes. i have been an environmentalist for 60 years. this is not a plan. this is a type of a circus. a good plan has actions. short-term actions, long-term actions.

okay? it's-let's not--the people. let's focus on tree canopy of san francisco. on a scale of 1 to 10, it is 3. that's [indiscernible] don't bluff us. thank you very much. >> moderator. are there any callers with their hand raised? >> ms. lennear, there is one caller that wishes to be recognized. >> thank you. please go ahead. >> caller, i unmuted your line. please proceed. you have two minutes. >> thank you. peter dreckmyer, tuolumne river trust. i like to thank commissioner stacey for her comments. some of the best i heard. i want to atouch oen the long-term

vulnerability assessment which is the climate change. i raised this many times and never been able to engage the sfpuc. one of the key take-aways was an expectation there is not chaipg in mean annual precipitation, which is good news for us. great to have a watershed so high up in the sierra. the ltva looked at return periods which are likelihood occurrence of known drought but not design drought, which baffled me because it seemed like that is the big question is the design drought practical or over-kill? through public records request we found documents that showed consultants determined it was once in 25 thousand years. they didn't include it because they didn't feel much confidence in those numbers. they did downgrade the return periods for the known droughts by 2/3,

so the numbers in the document were 31 percent of what was the in document in public records request. if you take 31 percent of 25 thousand years you come up with 8 thousand years. that is all most the existence of human civilization. that is what i think the number is for return periods. once in 8 thousand years. if you take a year off the design drought, reduce the need for 25 million gallons per day as alternative water supplies. i was going to comment on a wonderful presentation dave warner gave to the group monday. i'm running out of time. focusing on the issues for 17 years and i get two minutes. it is really a shame. thanks. >> thank you for your comments. ms. lennear, there are more callers in the queue. >> thank you. >> thank you. mr. president, that concludes

my report. >> item 6 is consent calendar including 6 a and b. >> [microphone not on. unable to hear speaker] >> remote callers, please raise your hand if you wish to provide comment on item 6, consent calendar. do we have any members of the public present who wish to provide comment on this item? moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers that wish to be recognized. >> thank you.

president paulson, aye. vice president-- >> move to approve. >> second. >> motion and second. >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye. 3 ayes. >> [unable to hear speaker.] >> adopt a refined mitigation monitoring and reporting program pursuant to the california environmental quality act; approve the terms and conditions and authorize the general manager to execute a purchase and sale agreement and easement deed with sunol glen unified school district for the acquisition of a 4,008-square-foot easement for an underground water pipeline and associated appurtenances and a 34,834-square-foot temporary construction easement on and across a portion of alameda county assessor's parcel no. 096-0155-004-01, known as 11601 main street, sunol, california, for $35,000, subject to board of supervisors' and mayor's approval.

>> dina, right of way manager with the infrastructure division. here today to seek approval for purchase and sale for acquisition of ease lt for water pipeline for the town of sunol pipeline project and asking you to adopt a refined mitigation monitoring and reporting program for the project. the town of sunol pipeline is a asset that feeds potable water line and non potable fire suppression line. the sfpuc replaced most of the town of sunol pipeline system and this current project will complete the effort by replacing the section of the pipeline that crosses arroyo laguna and sunol glen school. also owns an easement for the existing pipeline across the school property. however, the new pipeline will need to be installed north of the existing alignment to avoid in mature and beloved tree. to implement the project, the puc needs to acquire a permanent pipeline easement. the project also requires the temporary use of additional property during construction for access to the work area. puc staff worked with the

superintendent of the school district to negotiate a easement for purchase and sale of the easement. i like to acknowledge and thank malleen barns the school superintendent who retired in june after a long career as a very well respected educator in the community of sunol. she was a wonderful and accommodating process throughout the design of the project and she was very protective of her student safety and school resources, but understood the importance of the project and the school's role in implementation. with her we worked together to craft an agreement that schedule work around the academic calendar when students were not on site and temporary areas of disturbance to preserve as much as possible the outdoor education and play areas, which we will of course restore as a part of the project. it is why the temporary construction easement looks so bazaar when you look at the drawing. what you would be approved today subject to aprubl of the board

of supervisor is purchase and sale agreement for conveyance of the easement between the city and county of san francisco through the public utility commission and sunol glen unified school district. the easements to be acquired a pipeline easement comprised of approximately 4008 square feet and temporary construction easement comprised of approximately 34.834 square feet. the totet purchase price for the two easements is 35 thousand dollar equal to the appraised value determine bide a third party appraising commissioned by the sfpuc. the work associated with these ease mentdicize is within the scope of the project authorized under the final environmental impact report for the san antonio back up pipeline project amended by the san francisco planning department for purpose of evaluating the project. issued a addendsment october 5,

2023 and refined a program to be more specific to the work for this projeth. in addition to approving the purchase and sale agreement for the easements, by today's action you also are adopting the refined mitigation monitoring and reporting program. i'm joined by project manager alicia rinehart to help answer questions about the project and the real estate acquisition in particular. thank you very much. >> [microphone not on. unable to hear speaker] always a interesting slice in history and geography and topography. i have one question, very important one. did i hear you say mature and beloved somewhere? >> yeah. >> okay. that's interesting and glad you have a great relationship with folks in the school district to get these things done. i really have no questions, so thanks for that report.

does anybody else-any other commissioners have questions about this beloved and--anyway. about this particular--any questions commissioners? yes? commissioner stacey. >> i just wanted to be sure that it is clear that what is referred to as the refined mitigation and monitoring reporting program is the attachment that is labeled, sunol pipeline mmrp. there is a couple different mmrp's attached and i know it is sort--many steps. >> [multiple speakers] sorry, didn't mean to talk over you. the original program eir, one for the project the san antonio backup pipeline project refined for that particular project and then this for the town of sunol pipeline is the one that should have been attached for you. >> yeah, there are several attached, but there is nothing that is

actually labeled refined mmrp, but it looks pretty clear it is the sunol pipeline, i just wanted to clarify. thank you. >> yes. >> we good? >> yep. >> okay, thank you. any other questions commissioners? okay. thank you. let's go to public comment on item 7, ms. lennear. >> remote callers, raise your hand if you wish to comment on item number 7. do we have any members of the public present who wish to comment on this item? moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers that wish to be recognized. >> thank you. >> thank you, public comment on item 7 is now closed. can i get a motion and second to adopt item 7, please? >> motion to adopt item 7. >> second. >> there is a motion and second. can we have roll call, please? >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye.

three ayes. the item passes. >> can we please read item 8, please? >> approve the expansion of the wastewater, water and power enterprise interim funding programs. >> thank you madam secretary and good afternoon commissioners. as you recall earlier this calendar year you approved 10 year plans for capital program and bonds and then specifically the two year capital program, and normally whenime i'm before you i am discussing specific transaction but i'm here to speak to you about is a beginning of a process to help us manage future debt in a more efficient way and the cost for rate payers by expanding our interim funding program.

may i have the slides, please? slight technical problem here. so, what we are seeking today is to approve the expansion of our interim funding program for all three enterprises. this would be a resolution authorizing the general manager to go to the board of supervisors for an ordinance to begin this process. this process would likely take us through december and we would potentially be able to enter into new facilities next year. currently we have an interim funding program of $1.5 billion across the three enterprises. this would grow that program by

$950 million across all three programs. what it does not do, and what i want emphasize it, does nothing to change the amount of debt we would enter. it simply provides us with a tool on interim basis before we issue that debt. so, quickly discuss what we do with our program, where we propose changing in the future and why. on august 27, my colleague edward kwon presented to your capital financing plan for the year and this is the first item on that plan. the expansion of these facilities. our interim financing program allows us to accomplish two primary things. first of all, when you and then

ultimately the board of supervisors authorizes us to issue debt, that funding is put on reserve until we can demonstrate we have a source of paying those bonds and most of our peers who simply go out and borrow for specific project issue bonds and draw down those proceeds and beginning pay interest right away. by using our interim financing program, when we begin, say a $2 billion project, we dont have to issue $2 billion of bonds up front and incur interest costs. we use our interim funding program to first allow us to enter into the contracts, and release those reserves, and then ultimately as we need funds, rather then issuing $2 billion of bonds, we will issue 30, 50, $60 million of commercial paper as we need it, and that is the way we

significantly lower our borrowing costs and our impact on ratepayers. so, there are two functions this program fills. it allows us to release the reserves, and keep the projects moving, and it allows us to accumulate the borrowing and then issue bonds only when we really need to. we have across the three enterprises 3 interim programs. first one i have on the screen is the wastewater program. you've previously authorized and the board of supervisors authorized $750 million for that. for that we have five series of commercial paper and a revolving credit agreement, and throughout the year we come to you with a various

renewals as we manage these various relationships based on the ratings of the respective banks, the pricing they offer through rfp processes. similarly, for the water enterprise, we have three credit facilities in the commercial paper program, and then one revolving credit agreement. our smaller power program has two letters of credit. this chart provides you with a lot of information, but if you focus specifically on that purple line and the right axis, that is the growth of our 10 year capital plan. as we all know, our capital plans have been growing. those bars reflect the total of our interim financing program, and i think what you can see very

compellingly on there is that our commercial paper program, our interim funding program for water did not grow since 2009. our wastewater program hasn't grown since 2017 and for power, 2019. what that has done is it has constraining us and forcing us to issue bonds sooner then we might not otherwise have to. for example, last fall we issued the power bonds as you recall, even though we had not yet exhausted the commercial paper because we needed to free up the capacity to allow us to issue further contracts. to be clear, we are not issuing bonds before we need the bonds in terms of spending money, but we could have used our interim funding program as

a much lower cost way of releasing reserves had we had the capacity. that's the long process we like to begin now seeking board of supervisors approval for that. you have already seen this chart a number of times showing you the debt we have been issuing in recent years. last year was the largest debt issuance in the puc history. our most recent wastewater bonds we closed in july was the largest single transaction action we closed and so now what we want to do is right-size our interim funding program to allow us to differ when we need to issue the bonds as much as possible. what we have done is on the next chart, we analyzed what our usage is over those two years of each cip,

and we have approximated the amount we might need. now, importantly, we are very sensitive to what we do to our pricing in the marketplace, and so it is our intention not to simply go out to marketplace and seek $950 million of new credit facilities for the program, we would stage it as the needs occur. or most immediate need is with power bonds. it has been a while since we issued those bonds. we just issued wastewater bonds. we don't need credit facilities to expand that program yet. we are going to be coming back to you as you saw on the financing plan in december to seek authority for our next water bond. so, that's how we are managing it. we will slowly seek those

facilities as they are efficient in the marketplace and as we always do, we only acquire them when the ratings of the banks and the pricing are advantageous to us. so, once again, the specific request is to authorize the general manager to advance an ordinance to the board of supervisors, seeking expansion of the interim funding program in these amounts and with that, i would be very happy to answer any questions. >> i'll start off. i just have one comment. it is always fascinating to watch the lack of better term, the dance between knowing exactly when critically and professionally you need to be issuing these bonds so that we have captop to move forward with the projects necessary and have been approved and also, again there is always the

inprecise game when is the feds said they are going to lower rates. how does that fit into the whole picture and how that dance comes in. i just know that watching and listening to the different reports that we have, we have a pretty good track record of so many things, including the green bonds and what have you that i usually feel very comfortable with the decisions that we made so far, but i want to without asking you a question acknowledge that it is just always fascinating and there is a strong level of trust in the professionalism of seeing in your department when you give us these reports, so that being said, i-thank you for giving us these always timely and necessary reports as to all these things we do to make sure our resources and our infrastructure and our energy is going to be doing what the voters of san francisco want and what we expect in the city.

that's my comments. i don't have any specific questions. commissioner stacey. >> thank you, i is a couple clarifying questions to make sure i understand this. without these interim tools, we have a couple options. we either issue bonds earlier or delay projects. both of which seeing both more expensive if not unattainable for the puc to continue working on the projects the commission already approved and they are underway. so, if i understand what you said today, we draw on these letters of credit or credit facilities when we need them and also when the terms seem advantageous to the city. if the terms are not advantageous to the city we still need to draw on the funds, right to keep the projects in

motion? it is sort of your constantly watching the numbers. is that what i understand? >> yes, it is competitive marketplace and we as we did earlier this summer, we had 5 facilities that we brought to you. some of those we renewed with the same amenities, some we renewed with different entities based on the combination of their fees, the rating and then when we choose which ones actually borrow from, we are also looking at what is the market demand for that particular bank. at different points, certain investors get full up on certain credits. they want to have diversity in their portfolio, so we speak to our financial advisors and our various dealers to optimize the results. >> one of these facility types

may be a better option for the puc to draw down on as a interim? >> yes. as you could see, we also maintain a diversity of types of facilities, letters of credit, lines of credit and revolving credit agreements specifically for that reason as well. >> right. and one other question. you mentioned today a couple times that we don't draw or issue bonds until we need to. when does that typically happen, is it when the project takes shape? how do you gauge when it is appropriate to issue bonds? i assume you are also looking at the markets and again what terms are advan taijing for the puc, but is there a typical point in the project process that it makes sense to issue the bonds?

>> so, once again, most of our peers in municipal government will identify a project and assuming they dont have other funds available will borrow the funds. those funds will sit in an account until they are needed for the project and if that project is built over three years they are drawing down, but you are beginning to pay interest from the first day you close that transaction. what our interim funding program allows us to do is to differ that bond issue, instead we will go out to the marketplace and seek 20, 30, $50 million of commercial paper and add it up and when we get close to the capacity that cp program, then we will take it out with a bond

transaction. that allows us to both differ when we are issuing the bonds. it allows us to also have more efficient bond transactions, frequently issuing bonds. it is also a reflection how we are man madgeing our program. at any time we have dozens of projects underway in each of our enterprises and we can manage them as a portfolio rather then doing a bond transaction for every building or project we undertake. >> so, it is really more a financial decision rather then a project definition decision? >> yes, for example, a bond transaction right now would have a all in interest cost like our recent transaction at 4 and a half percent. by only releasing reserves against

credit facilities, those credit facilities are between .25 and .42 percent, so we are not accumulating the interest costs, we are simply having that facility to satisfy the control. >> thank you. >> any other questions commissioners? okay. thank you for that report and we will actually turn this over to public comment now. ms. lennear. >> remote callers. >> thank you. >> please raise your hand if you wish to comment on item 8. do we have any members of the public present who wish to comment on this item? >> commissioners, in the past when we had a presentation like this, you also had a presentation given by a

manager of the treatment plant, so we saw the improvement of what was happening. we haven't seen this in four years. haven't seen it in four years. you are the commissioners. bankers come here and whatever they call them and they say, talk about how they are going to manipulate doing this and that with interest. our economy now is stable, but we also know that when it comes to infrastructure, it is very shaky. we started the project with $8 billion is now heading to $12 billion and before you know it it will be

20billion and where is that accountability to the taxpayer? the taxpayer isn't mentioned. what happens when you have a presentation like this, those people that have to work with workforce, they give a damn. outsiders come and get everything and we get nothing. we don't get resources. if we want resources, we dont get it. they say they are going to form a request for qualification. for what? when you are wasting billions of dollars. billions of dollars. no accountability. and if you commissioners, the few who are left for a small interim period, y'all need to zero in on that so the mayor knows what is really happening. as i said the last time, today the corruption in the sfpuc is worse then when it was in [indiscernible]

at least [indiscernible] was a engineer and knew what he was doing. i met him many many times. you may not know this, initially i asked to meet the general manager or the deputy--they dont care. they do not care, but we do care and we will be-- -thank you so much. >> anymore folks? >> moderator, any callers with their hand raised? >> ms. lennear, there is one caller that wished to be recognized. >> thank you. go ahead, please. jrsh caller, i unmuted your line. you have two minutes. >> thank you. peter dreckmyer. on your agenda communications item 11f is water enterprise capital

improvement program quarterly report, and table a is program cost summary. current approved budget is little over $3 billion, and forecast costs a little over $3.7 billion, so cost variance of $632 million. that is 20 percent over-run. i'm worried this is going to get much worse. we are really fortunate to have dave warner volunteering his time. he is really quite a brilliants economist. he recently produced a risk analysis of over-investing in alternative water supplies we have been focusing on the last year and a hal. half. if the finance department is correct that sales in 2045 are 207 million gallons per day and that's what you built for, the price for acre

foot per water is $4500 from $2500 for acre foot today, the highest in the state. however, if the puc over-invests and they believe the water enterprise number of 244 million gallons per day, but it is only 207 which is what finance projects then it is $5700. $1200 more. this is why it is so important to get demand projections right. the difference there is 37 million gallons per day and finance is probably high if history repeats itself. it is always closer to the-much closer then water enterprise, but a little bit high. thank you. >> thank you for your comments. ms. lennear, there are no more callers in the queue. >> thank you.

>> public comment on item 8 is closed. commissioners, any other comments or questions on item 8? seeing none, let's-can i get a motion and second to approve this expansion? >> motion to approve. >> second. >> there is a motion and second for item 8. can we have roll call, please? >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye. three ayes. the item passes. >> item 8 passes. can you read item 9 please? >> accept work performed by mitchell engineering under contract number db-129.1 bay corridor transmission distribution phase 22019 north approve modification number 21, decreasing the contract amount for total contract amount of 20 million, 691 thousand, 291 and increasing the contract duration for total contract duration of 1195 consecutive calendar days.

>> president, vice president. thank you for having me here. ask for acceptance of the work performed by mitchell engineering for design build contract 129.1, bay corridor transmission distribution phase 2 north. i'm not going to repeat the amount, but i'm here to ask for your approval for the final modification to decrease the contract amount. i want to point it out the contract-the project achieved significant saverings and reduced the final amount by 14 percent roughly $3.3 million and also took longer asking for additional 28 0 days. the time is needed to cover a timing analysis to reconciliate the resequencing of the duct work and also the final reconciliation of the

bid item and we also took longer to do the [indiscernible] final close-out for drawing and supporting documentation. so, i'm also here with me i have my colleague construction manager eric gee and we are happy to answer any questions you have. >> okay. thank you. thank you for that update on item 9. i know i personally see mitchell engineering all over the place doing all kinds of crazy work that has to be done, so i have to admit that i guess it is nice to hear that especially the monitoring going on when things go up and down, because a lot of field work we do, despite all the agreed work engineers and architects and designers come up with, there is still stuff that is done in the field and has to be figured out because that is the nature of maintaining infrastructure. i personally like when we see something like this where there is extra

amount of accountability. commissioner stacey. >> thank you. big thumbs up on the 14 percent savings for value engineering, thaujs. thank you. i had a question mentioned thin report and want a explanation what it meant. one item you list is resolution of the fluidized thermal back fill exceeding design strength. could you explain what that is, please? >> sure, not a problem. i guess typically the stronger the concrete the better, that is how the manufacturer is trainedx but in this case we want a slow straenth concrete, because especially in the seismic active zone like san francisco, because what happen, you have a seismic event, those concrete around the conduit will crumble like soil and basically dissipating heat so it take the

stress of the conduit. we want the contractor to make it low strength as possible and i think the speck is 50 psi. some case s it is easy to go above that because all you have to do is put more cement and that how the vendor because they throw in extra cement, they dont want to break the concrete so it is about training and making sure they understand. in this case, we actually ask the contractor because they are design buildser, for the cases increase of strength range from 80 to 300 psi and their response is they are still very low strength and similar behavior then 50 psi specified in the specks. so, in order for the city to accept that explanation we do due diligence. we hire consultant to do a

analysis. it is like a sensitivity analysis we do a model with different strength of concrete and see where it will be a problem and did it up to 800 psi and 400 and 500 is where we show that the conduit will take stress instead of the concrete. based on that , because it is within the range expected, so i think that help us build a case for the next project or next speck. we can relax a little bit and it gave us more flexibility to work with the manufacturer to produce something achievement. a great lessen learned and something to share with you guys here. does that make sense? >> yes, thank you for the thorough explanation. >> sure. >> appreciate it. i'm always learning. thanks. >> that is a good question. and good answer.

any other questions commissioners? okay, great. thank you for that. let's open item 9 to public comment please. >> remote callers, raise your hand if you wish to comment on item 9. do we have any members of the public present who wish to comment on this item? >> seeing none. >> moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers that wish to be recognized. >> thank you. >> public comment is now closed. any other questions or if not can we have a motion and second to approve item number 9, the change? >> motion to approve item 9. >> second. >> there is a motion and second. can we have roll call, please? >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye. >> thank you.

iletm 10, please. >> accept work were formed by rubicon builder inc. under contract wd-2687r, ux ilry water supply system pumping station. improve modification 14, increase the contract amount for total contract amount of $22.699.579 and increasing the contract duration for total contract of 2180 consecutive calendar days. >> welcome back. please. >> here again. acceptance of the work performed by rubicon builders for contract wd-2687 pump station 2, long time coming. we ask for additional time. 437 already approved by the prior commission agenda within the current contingency and asking for

additional 380 day and the time is needed to resolve potential claim from the contractor for time due to-we have a lot of delay due to the site condition and also electronical modification on site. we have done a lot of improvement also at the pump station like painting, piping, structural improvement, and i think the most significant time impact was the alarm system modification. try to integrate with the old system with the new, so that took longer, so that is why we have to ask for additional time and ask for final payment to the contractor. >> okay. again, questions commissioners? >> yes. >> yes, commissioner stacey. >> another quick question. thank you for helping me here.

the final modification this payment of $1.1 million, that $1.1 million is the outcome of negotiated settlement? >> correct. >> understanding that right? >> yes. >> and, there won't be any further modifications in the amount? once we approve this accept the close-out, approve the modification, the 1.1 should settle all the delay discussions? >> correct. >> i assume national park services, rubicon and the puc have all been involved in the discussions? >> correct. >> okay. thank you. >> thanks for the question and answer. any other questions commissioners? commissioner rivera. >> thank you president paulson. so, i just wanted to comment if anyone

has a chance to go out and see pump station 2, it is a beautiful architectural landmark within the city of san francisco. engineering wise, it is unbelievable the ability to take water from the bay, pump it into our system for fire fighting. is amazing. i worked on this project and will say rubicon never brought donuts to any of the meetings so dont know if we should give them extra money. it was a challenging project due to the historic preservation component, and just geographically where it was, it was hard bringing in equipment and generators and such. i am really pleased that this is completed, and it just another level of strength for our fire fighting community here in san

francisco, so thank you very much for bringing this to a close. thank you. >> okay. thank you. >> thank you. >> okay, let's open item 10. thank you again for the recap and questions. commissioners, let's bring item 10 to public comment, please. >> remote callers, please raise your hand if you wish to comment on item 10. do we have any members of the public present who wish to comment on this item? if so, please approach the microphone at the podium. moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers that wish to be recognized. >> thank you. >> public comment on item 10 is closed. can we have a motion and second to approve the change for item 10, please? >> move to approve. >> second. >> motion and second. can we have roll call, please? >> president paulson, aye.

vice president rivera, aye. commissioner stacey, aye. 3 ayes. the item passes. >> thank you. item 11 is communications. do i see any items that need to be pointed out commissioners? seeing none, item 12. read item 12, please. >> items initiated by commissioners. >> commissioners, do we have anything you like to put on future agendas or anything to that effect? no. thank you. so, seeing none, let's go to item 13, which will be the items addressed at closed session. >> public comment on the matter to be addressed during closed session. >> should we read the item in closed session so we know what we are talking about? is that what we are doing here,

counsel? grab my agenda. let's read the items addressed in closed session. >> the items, ann marie versus city and county of san francisco. >> summarize. >> the commission will go into closed session. >> counsel, can we summarize what is in closed session before we go into closed session? >> sure. there are five items on the closed session calendar, and- >> if you can summarize them, please. >> ms. lennear, would you mind reading the items into the record? >> absolutely. pacific gas and electric company.

150 post street, llc versus city and county of san francisco. >> great. thank you. so, i entertain a motion whether to not - >> we need to if we can take public comment on going into closed session. >> thank you for reminding. let's go into public comment before closed session on the items mentioned. >> remote callers, please raise your hand if you wish to comment on this item. do we have any members present who wish to comment on this item? if so, please approach the microphone. >> seeing none. >> moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers that wish to be recognized. >> thank you. >> public comment on those

items is closed and now i ask for a motion whether to assert attorney client privilege regarding thoset mayors as matters as we go into closed session. >> motion to assert attorney client privilege. >> second. >> motion and second. can we have roll call, please? >> president paulson, aye. vice president rivera, aye. commissioner stacey, aye. three ayes, the item passes. >> okay, we'll go into closed session. [meeting reconvened]

>> we are now back in open session. thank you. i am here to announce the commission is recommending that the board approve the 5 items that were mentioned in item 15 in closed session. i don't know if we need to read the items. we know the 5 because they have been listed so if i can ask for a motion whether to disclose the discussion during closed session. i will entertain a motion not to disclose. >> i move not to disclose. >> second. >> there is a motion and second not to disclose. can we have roll call vote, please? >> paulson, aye. rivera, aye. stacey, aye. 3 items the item passes. >> great. thank you. so, the meetling meeting of sfpuc is now in adjournment. thank you.

[meeting adjourned] . >> hi, i'm ryan a prlth letting project manager with the sfpuc working at the sfpuc is a fast-paced environment the puc is american people eye person so breath and depth allows us to

work on allows me to move across my career path. >> fill the roadway. >> our unique projects is the heritage puc water treatment long-term improvement plant it's one of the largest projects i've managed and supervised to be successful as a project manager you have to be hard working and self-motivated and being adaptable is important because the construction it is very fabulous that get me up in the morning you're going to be project solving and seeing the project go to me that's fun, i like coming to to be. >> hi, i'm average i'm a

personal analyst that the human resources examining and recruitment unit and suffix i started my career as a san francisco state university and got my bachelors in psyched and orientational psyche if they had we have a great relationship that the san francisco unified school district i exploded for american people interim shopping mall and become eligible for a permeate job. >> okay. perfect. >> i love working for our human resources services because of the agriculture we're laid-back with a professional mindset although human resources is a challenge we're light a hearted started as a intern guided through the process eventually

one day a a deputy director or staying with the puc is where i love it >> it is now 119 p.m., and my name is brackett and this is commission on community investment and infrastructure for tuesday september 3, 2024. i like to welcome everyone joining today in the audience as well as remotely. thank you to staff and our guests who will be participating in today pfs meeting. the items on the calendar today that are very impacted i will ask fellow commissioners to move item 5 up and move item 4 below. i'll be