>> i hope it stays with them and lingers and they chew on it and think about it. and it may not make a big impact but it's something that opens up the door or starts the conversation or the beginning of something. i would like for it to be a start, whether it's a start of research or start of pondering, yeah, what does it mean to be an artist? and how do i decolonize my mind? >> roll call, please.

[roll call] >> let's start again. your microphone is not on. let's get this going before--you are still not on. i hope it is working on this, please. let's keep going anyway. >> here. >> here. >> okay. we have a quorum. okay, let's work on the microphone so this can all be heard. the san francisco public utilities commission acknowledges it owns and stewards of the land located within the territory of the muwekma oholone tribe

and familiar descendants of the federally recognizes mission son jose verona band. the sfpuc recognizes every citizen residing within the greater bay area has and continues to benefit from the use and occupation of the muwekma oholone tribes aboriginal lands before and after the san francisco public utilities commission found ing in 1932. it is vitally important we not only recognize the history of the tribal lands on which we reside, but also we acknowledge and honor the fact that the muwekma oholone people established a working partnership with the sfpuc and productive flourishing members within the greater bay area today. is the microphone working i hope? test. >> can you hear me? >> there we go. okay. commission secretary is now in order and as she acknowledged, we do have a quorum, and i do want to

acknowledge that there are now as of today officially there are four people that are members of the commission. one-three of the commissioners as i stated last week have not been reappointed to another term and there is one opening because another former board of supervisors member left the commission area a few weeks ago. there are essentially four openings on the commission and i want to thank and i know we have quorum of three of the five commissioners, and i just want to acknowledge those that came today, because i think that most people know if you are working for a multi-billion agency and all a sudden you are told your services are no longer needed normally there will be a security officer standing next to your desk and taking your mother picture and favorite pen and a buster posey bobble

head, but i didn't see any a sheriff at the area today. greeting us on the way in. i do want to acknowledge that there is checks and balances and who ever ends up on the commission still has to besides the nomination is of mayor there is still a board of supervisors as everybody who is a student of government knows. there is vetting and the board of supervisors has to do its part in the commission process, but i know if any of us was not here like there might be in the private sector or organizations that no business would get done. i just want to say, this commissioner in particular as i said before value the public services. there was a time i did come a a little kicking and screaming on the commission but i take this seriously and i'm a retired and i am involved in

public service. whatever that process is takes place, so this body is fully functioning again, despite the whack that seems to be taking place, i will be here, unless-i will speak for myself. i will be here under these circumstances unless there is craziness that takes place during this wield election season. can we have the first item? >> approval of minutes of september 10, 2024. >> commissioners, do we have corrections to the minutes? commissioner stacey. >> thank you. i thought we should add at the end of the minutes the announcement following the closed session. i think it is item 16 that the commission acted to recommend the settlements. typically that is included in the minutes. >> okay. i did not catch that, so thank you for

that. can we amend that? >> one other small amendment on item 7, it wasn't entirely clear from the record which of the three mitigation monitoring and reporting programs the commission was adopting and i think it would help if the minutes clarified that it was the town of sunol mitigation monitoring and reporting program that was defined as the refined mitigation, mmrp in both the staff report and the resolution. i just thought it would help if the minutes clarified that as well. >> that makes sense. commissioner? anything else you saw in those minutes? >> that's it. >> can i-with those two amendments i would like a motion to accept the minutes with those clarifications. miner clarifications in those minutes. is there a motion? >> move to approve. >> second.

>> motion and second to approve the minutes with those clarifications. can we have roll call, please? wait, i take that back. i'm go ahead of time. we should open up to public comment, please. sorry. >> remote callers raise your hand if you wish to speak on this item. do we have any members of the public present who wish to comment? if so, please approach the microphone at the podium. >> seeing nobody in the chambers. >> moderator, are there any callers with their hand raised? >> ms. lennear, there are no callers in the queue. >> public comment is closed and i now entertain that motion with clarifications to accept the minutes. [roll call] >> been moved and seconded. i see commissioners nodding. can we have roll call, please?

[roll call] >> we have three ayes. the item passesism >> the minutes pass. item 4, please. >> general public comment. members of the public may address the commission on matters within the jurisdiction and not on today's agenda. remote callers raise your hand if you wish to provide public comment. do we have any members of the public present who wish to provide general public comment? i have a card from lane-- >> hello. how's it going? good afternoon honorable commissioners. my name is lane, speaking to you today on behalf of sierra club california and as a new resident of district 9 in san francisco, i am speaking today to urge the commission mayor breed and

city attorney chui to drop your lawsuit against the ep a. before the phreem court begins reviewing cases in october. carrying with the lawsuit poses tru-minds threats to communities and environments across the u.s. the city of san francisco and the sfpuc can not continue to reluce sewage in the bay and ocean. continuing to doso [indiscernible] ep a is right to regulate the puc. what is far worse then this thou is putting the most important piece of anti-pollution legislation in the federal level at risk of dismantling. it is no coincidence joining the lawsuit is army of industrial lobbying groups. it is also no coincidence theing lawsuit [indiscernible] a decision issued by the far right supreme court last year decimating the ability of the ep a to regulate water ecosystems.

proven track record of annihilating the [indiscernible] the city is playing into their hands. i'm here to ask of the sfpuc drop the lawsuit to preserve the efficacy of the clean water act. dont give scotus. don't help industrial polluters in quest to escape cullability and do the right thing and insure access to clean waters across the communities. thank you for your time. >> thank you. please come to the microphone for general public comment. >> commissioners, my name is francisco decosta. what i see today, the san francisco public utilities commission are doing things that are convoluted. we just have to look at your organizational chart and right

on top are the commissioners. and right now whoever is trying to remove the commissioners is not doing the right thing and i say this because we already know the san francisco public utilities commission hasn't done a good job. to put things on track with the exit of the last general manager who was a engineer, the new general manager who is not an engineer and there may be city attorneys coming here, but they have no clue chronologically, i have been doing this for 45 years, so i know what i'm talking about, to

whoever are these people who are knocking off the commissioners, they are not doing the citizens and the constituents of san francisco right. not doing it. it takes 2 or 3 years to figure out whatever is happening with the sfpuc. billions of dollars wasted not millions. the sewer system started with $8 billion, heading towards $12 billion $3 years to figure out whatever is happening with the sfpuc. billions of dollars wasted not millions. the sewer system started with $8 billion, heading towards $12 billion and soon $20 billion. don't hoodwink us in broad daylight, thank you very much. >> thank you. >> moderator, are there callers? >> next speaker. >> good afternoon, peter dreck myer tuolumne river trust.

i like to associate my comments made by lane. san francisco versus environmental protection agency would be a terrible precedent, but more importantly, i wanted to speak to you in person and thank the outgoing commissioners for their service. it is a lot of work, not a lot of reward and sorry i dont get a chance to say good bye to commissioner ajami. i think she rely stepped up and became a very solid commissioner, and we are going to miss her. this whole change just seems so mysterious and bazaar to me. unfortunately commissioner ajami will probably not get a response to her question from last november about how would lower then projected water sales impact water rates. fortunately my colleague dave warner did a great analysis and he would be happy to share that with anyone interested. doesn't look good.

and, a problem i have seen and seeing now is that when commissioners leave requests and work they did gets forgotten. newsha won't get a response to her question, and this happened many times in the past and we will have new commissioners who will take a few years to get their feet underneath them. it will be a long education process. they will come into it thinking their primarily role is defend the sfpuc position. i did send my letter september 5. i think this is really important issue. one that staff doesn't respond to public records act requests and two, they did not follow through on directives from two resolutions that pre-dated all of you, accept for commissioner paulson, the second ones. these were resolutions in 2019 and 2020 requiring there to be

biological goals and adaptive management in the tuolumne river agreement and that never happened. it is really a bogus plan and why staff didn't want to share information. either it doesn't exist or shows that they did not follow through with midtid. thank you very much. >> thank you. let's read the chards cards if there are anymore. no more cards? okay. thank you. >> moderator, any callers with their hand raised? >> ms. lennear, there are no callers with their hand raised. >> thank you. >> public comment is closed. let's go to item 5, which i'll read is the report of the general manager. >> thank you mr. president. 5 a is a quarterly budget status report and laura bush will be presenting.

>> hello everyone. please can i have the slides? hello commissioners. laura bush here, sfpuc deputy cfo here to present the 4th quarter of 23-24 budget report to you. this is the last quarter so the final report for last fiscal year. overall projecting positive oprating results power and clean powersf and small short fall for water. water and wastewater revenues below budget due to removal of the drought surcharge from lower demand due to the wet season and additionally, there was delay in billing customers due to meter issues. we are in the process of recovering untransmitted data. there is $6.6 million in delayed revenue for water and same for wastewater relating to the issue.

the revenues will be accrued for 23-24 and as billing resumes the revenue will be collected in thecurrent fiscal year, 24-25. these revenues short-falls are off-set by state grant funding for-water received $8.2 million and wastewater $11.6 million for $24-25. these revenues short-falls are off-set by state grant funding for-water received $8.2 million and wastewater $11.6 million for all most 20million. moving to power, revenues are projects ed to exceed budget due to higher wholesale sales and generation. large savings are also projected for power purchase cost. additionally, there are savings from distribution cost, calculation errors made by pge and saving--retail sales is slightly lower then budget due to final rets set lower then the budget and lower demand since quarter 3. this is off-set by slightly

higher wholesale sales and lower power prices resulting in substantial savings in the power purchase budget. year-end financial results for all enterprises are projected to meet or exceed policy targets, and just as reminder the q4 report is projection with the final year end results published in the annual comprehensive financial report. as usual, i'll go into details in the next slide. water the net oprating result is down $3.6 million. we additionally paid $9.8 million in legal settlements in the water enterprise this year off set by positive 1.4 million in savings so the net impact to fund balance is $12 million. the sources side, total sources are down $24.4 million. t this is largely driven by removal of

the drought surcharge in may 2023 but didn't make it in the budget. due to longer wet season and there is a delay in billing certain customers due to meter issues, which is off set by the $8.2 million in state grant fulding. on use site, $20.8 million in cost savings. this is driven by debt service savings, over head savings and saving in both labor and non labor expenses. moving to wastewater. the net operating result is positive $20.9 million. as sources are down by $21.3 million, similar story to water. removal of the drought surcharge, lower demand and billing delays. also offset for [indiscernible]

on the use side, we have $42.2 million in cost saving largely by planned contribution and related savings. in power, the net operating result is positive, $72.4 million. in addition, we did project close-outs in 6.9 million leaving with $73.9 million to year end fund balance. on the sources side, sources are up by $6.9 million leaving with $73.9 million to year end fund balance. on the sources side, sources are up by 15.1 million. retail sales below budget and wholesale up by $16.9 million due to higher sales from resource adequacy and [indiscernible] on the use side we have substantial savings of $57.3 million largely driven by savings in power gas

and steam and error in pg&e billing calculations. clean powersf, the net operating result is positive $52.8 million total sources are slightly down but there is 59.3 million in cost savings largely by planned [indiscernible] savings and purchase of power. all of our financial ratios on target to meet our puc policies. that's it. any questions? >> thank you for that report. commissioners, do we have questions? no questions. thank you. >> great. thank you. >> open up for-i guess we don't take action so do we need to open to public comment?

i guess we do. public comment on item 5 a, please, can we open this up. >> please raise your hand if you wish to comment on 5 a. do we have any members of the public present who wish to comment on this item? >> peter dreckmyer tuolumne river trust. first of all, i'll channel my colleague dave warner who has commented a number of times, he has a lot of respect for laura bush and aaron cornacova and thinks they do good work. they have what they have to work with. i hear this comment a big problem was not having the drought surcharge this year, which kind of baffles me, because january of 2022 was extremely wet. recall 2022 was the second wettest on record, so just looking back at the drought conditions update from january 31, 2022 and total system

storage was 81 percent, so over a million acre feet in storage. i'm baffled it wasn't planned to have the surcharge dropped for this past fiscal year. thank you. >> thank you. anymore- >> moderator, are there callers with their hand raised? >> ms. lennear, no callers in the queue. >> public comment is over for item 5 a. >> 5b is hetch hetchy capital improvement program quartly report. katie miller will be presenting. >> good afternoon president paulson and commissions. katie miller, director of water capital programs. may i have the slides, please? thank you. today i will share a summary of the hetch hetchy capital improvement program from january 1 through june 30 this year. the end of the 4th quarter of

this fiscal year. these pie charts show the program status with 9 projects in pre-construction, 7 project in construction or multiple faces and one project in close out. $339 million spent of the $1 billion budget with $49 million the third and 4th quarters. fiscal year 24 saw the high est spending with $85 million spent on major capital projects and $130 million spent on the entire hetch hetchy water capital program overall. during the paest two quarters, three major contracts received notice to proceed for construction. one project was awarded for

construction and one project reached substantial completion and entered the close-out phase. the summary o projects expenditures and cost forcast grouped by funding sources. water, power or joint water power. the current forcasted cost in the 5th column from the left shows $1.5 billion, which is $500 million cost increase over the previously approved budgets. also notice, there was only one new cost variance forecast during the past quarter for cost increase of $13 million. the majority of the project cost variances seen in previous quarters have been included in the 10 year capital plan that was approved by this commission in february this year. these budgets will become the updated and approved baseline and budget and schedules starting the first quarter of

fiscal year 24-25, the quarter we are currently in. the one ucost variance forecast in the past quarter of $13 million was for the moccasin power house and gsu rehab project, specifically for sub-project c. this is due to cost increase forecasted in the updated 35 percent design cost estimate received this past quarter. this cost increase is primarily due to detailed design development and scope refinement, extending the construction period by one year and providing resources for careful coordination of shut-downs and tie-ins for this complex electrical and control upgrade for the power house. during the third quarter, the 100 day shut down of the hetch hetchy system from december 5 to march 21 continued. this was the third of 5 consecutive wenter shut downs of the hetch hetchy system. significant work accomplished on 8

major construction project and several smaller. during this time the entire water system supplied by the bay area reservoir and water treatment plants. we acknowledge and are grateful to the water operation staff, specifically from water supply and treatment and hetch hetchy water and power to support the longest shut down of the hetch hetchy supply system in recent times. for the san joaquin valve, valve and pipe replacement on two contracts for phase 1 was completed. project spendsing was $15 million. phase 2 work at pelican, [indiscernible] the contract 2 a received the notice to proceed in may and contract 2b achieved 95 percent design and will be advertised very soon. the phase 3 work at teslaserge

tower, notice to proceed in february and contractor is mobilized procuring long lead items including valves. for the moccasin power house generator step up transformer rehabilitation, the first subproject of the transformers was completed and the project closed out this past quarter. for the generators rewind project, the new generator m2 reassembly completed in march and generator is fully operational and in use. the second generator m1 rehab work has begun and on schedule to be completed this winter. for the moccasin power house system upgrade subproject, the draft 65 percent design was complete and as i shared before,b the $13 million additional cost forecast is due to additional design complexities and phasing requirements.

the-the project a bulk heads progressive design build contractor completed the final design a trade package for fabrication of the new bulk heads advertised and awarded. for the draining b, contract advertised and bids open in june and this work is underway. instream flow release valve construction started including removal of piping and gate valve for safe isolation and lower the valves into the o'shaughnessy diversion tunnel is shown in this photo. the mountain tunnel improvement project significant work performed during the 100 day winter shut down spending $11 million over the past two quarters. during the shutdown, tunnel concrete lining repair performed for approximately 72 percent of the lined tunnel or 8.3 miles. this was fallowed by contact

grouting to fill the voids behind the lining, much slower and more tedious work performed during 12 hour shifts 24 hours a day with the grout mixed outside the tunnel and piped several miles to the injection locations. the contract routing completed for 23 percent or 2.3 miles of the lined tunnel, thus significant work ahead during the next two shut-downs to complete this work. work continued increase reservoir site including instillation of the 150 foot deep access stair well to to the base of the shaft and concrete paving of the [indiscernible] as shown in this photo. separate construction contract was awarded for construction of the new permanent moccasin water treatment plant. complete the work at e complete fork site due to constructability discussions continued with the mountain concerns. tunnel contractor for best these discussions are ongoing. means to we are considering options inclooding potentially pulling the scope from the current contract and bidding this out as a separate contract, potentially under a alternative delivery

contract to allow early collaboration and input with the construction contractor to assure construct lt challenges are safely and adequately addresses. in the past quarter the puc advertised request for information to solicit interest and constructability. responses are have been received and being reviewed and we'll provide more updates on that in future opportunities. and with that, happy to answer any questions. >> great. thank you for that report. i for one and always enjoyed these updates as to what is going on. i happen to be in a conversation not too long ago where i was probably boring people by talking about the mountain tunnel and this new moccasin upgrade and what have you and somebody came back and said, you know, it is a genius of the system is is

gravity driven. you have the dam here and city here and it is pretty cool. the point was missed it is more complicated then that. it is always, again one of the good things and wonderful things about the city. they invest in this water and this infrastructure and it is always good to hear your report. i have no questions but thank you. commissioners? thank you for that update. let's open item 5b to public comment. >> please raise your hand if you wish to comment on 5b. do we have members public present who wish to comment? if so, please approach the microphone at the podium. seeing none, moderator, any callers with their hand raised? >> ms. lennear, there are no callers in the queue. >> thank you. >> public comment is closed on this

item. thank you ms. lennear. general manager. >> thank you mr. president. item 5c is something we like to celebrate, our people for doing great work over periods of continuous service at the puc, and we are lucky today to have a number of folks we like to retirement recognitions for 25 years of service, so i like to recognize them and have them come up and say a few words before we take photos at the end. today we congratulate a number of individuals who demonstrated the highest form of commitment and pride in public service. i like to recognize michael brushard for 27 years of service in the water enterprise and before we invite mike up here, i believe bill would like to say a few words. bill.

>> good afternoon commissioners. bill, division manager, cbd. i will address both frank and mike in the interest of time. so, i stand before you today to pay tribute to two men. between them have given 57 years of service to the city and county of san francisco. mr. frank, 28 years, and mr. michael, 29 years. i did quick math. it was 29 years. okay. as you are aware, construction division and very unique place to work. our expertise is always been dependent on the dedication of our employees. the two gentleman before you today represent that dedication. whether that meant making a 16 inch water connection at night in the ink clment weather or responded to a call while attending a birthday

party, they always answered the call. i worked with and known both of these gentleman for the length of their service and hold them in the highest regard. i wish them both well in their endeavors going forward. frank, mike, your service to our great city is now completed. it is time for the next generation to step forward. i and we thank you for your time. [applause] >> i like to invite mike to come up and say a few words. >> thank you commission. commissioners, dennis herrera, jenroom manager. i want to thank bill, my former superintendent and katie miller former manager also. ryan was one of my managers.

i just cant thank the city and county enough. one of the guys told me at work, he said on the worst day it is the best job you had and it came to fruition. i just cant-think them enough. i want to thank the late great bill, who gave me a chance changed my life forever. the city and county allowed me to be able to have family, enjoy time with my wife and be able to enjoy the retirement and attention i try to tell every young person gets you a job where they got pension and retirement and cant thank them enough and humbled and honored you take time out of your day to do something like that for me and i thank you you a lot. thank you. one day i hope to give back to the city by returning under prop f. just letting you know. [applause] >> thank you mike. >> and, i like to recognize frank for 28 years of service to the water enterprise and invite frank to come up and say a few words.

>> thanks for having me here. it is a honor to be in front of you all. thanks bill for the nice words. i-part of a big family the water department. lot of great san franciscan people that cared about the system and really tried to improve and keep it running. it isn't a easy thing to do, it is tough task, and i miss a lot of people, i miss a lot of camaraderie and ethics to try to get the best work done at the least amount of money to use. it has been a great career. i started in construction as a

plumber for 14 years and went to the water department in 1996, and another 28 there, so it has been a big part of my life. the new generation seems to be taking over well so felt it was a good time to step by and let them go and just know another proud san franciscan proud to be here and thanks for having me. [applause] >> and last but not least, i like to recognize anthony scott and thank him for 28 years of service to the water enterprise, and we are grateful tony could be here and invite angela chung to come up and introduce him. >> good afternoon commissioners. angela chung, water supply treatment division manager. it is truly a honor for me to introduce tony scott to you today. tony spent 29 years-i counted

all those days and he met june to june. 29 years with the sfpuc, all that time he was at the sunol valley water treatment plant. rose through the ranks and became the chief of the plant. he knew the plant inside and out and called the plant home. all his crews went to him for all the questions but can't just his us. if you are working at the project engineer or contractor you be talking to tony where is what and what did this do what to. tony always knew it wasn't a 9 to 5 job and took it seriously. he want just answering calls. i remember tony going into the plant to cover shifts that we had a hard time getting people to go to. like midnight to 6 a.m., but that is how dedicated tony was. i also want to say tony was so skilled. when we had emergencies and we wanted somebody to start up the plant it was tony we called. i want to thank tony for really

saving the system countless times with his skills, with his dedication, and also [applause] >> tony here? tony, please, come on up. >> hi. my name is tony scott. i want to go ahead and thank you commissioners and special thanks to upper management. steve, angela, ryan.

and among a bunch of other people, i cant begin to mention their names. i started out in 1995 and like angela stated, worked my way through the ranks. it has been a excellent opportunity. i have grown with the company. seeing was able to go ahead and show my skills. go ahead and basically when it comes to new personnel, training aspect of things, like running the facilities. once again, i'm going to miss all my colleagues. i want to thank each and every one of them, because they helped me to get where i am today.

i am going to really miss you know, the puc. i plan on visiting from time to time and seeing the progress in the future. once again, i want to go ahead and thank everybody. thank you. [applause] >> so, i like to say a couple things. so, both-all of you, mike, frank and tony, this commissioner will always-comes from the labor movement and will say that we know why the city is as good as it is and why the city works. it is because of folks like you. it is the rank and file. it is the workers no matter what level of the enterprise that you are with. it is you that makes the city work and so, now that you are retiring,

it is well deserved and your work and dedication is why people have clean water and why people-why this town seems to work, it is because you guys do the stuff that it is needed and our city invests in folks and that includes investing in you, so thank you. have a great retirement. you deserve it and it sounds like none of you are going to disappear. you are going to still be inthe community, so i want to thank you all and have a great retirement. i know we will have pictures. anything else commissioners? commissioner stacey. >> i just wanted to say thank you for so many years of great service. the puc can't do what it does without dedicated and intelligent staff so you are what makes the system day in and day out and i want to say thank you. i want to congratulate you too.

enjoy your retirement. it is a great next chapter. it is hard for the city to lose all this expertise and intelligence, but it is well deserved to take a break and enjoy either as prop f, or as a fully retired person, but thank you so much for your service. it really means so much to the puc and so important to the puc. congratulations. >> thank you. commissioner rivera. >> thank you president paulson. thank you so much mike, frank, tony for your service, and dedication. i always said that you know, puc is a great enterprise, but our life and blood and heart and soul are the employees and you guys just hearing you talk and being here, it just

really is humbling to see the level of dedication you have, and mike said something that kind of jarred my memory. my first day in the fire house when i was a brand new firefighter, i told-i exclaimed i said, this is the greatest job in the world and one of the old timers corrected me and said, this is second greatest job in the world. i said what is the greatest job? he said the water department. [laughter] thanks for reminding me. and thank you very much for all your hard work and efforts. >> that's pretty good. a lot of-guys why don't you come up for photos. i can't help notice commissioner stacey was [indiscernible] virtues of retirement. when she retired from the city attorney office, i try today get to come back on prop f and she said no. she knows how to enjoy

retirement and her words are very heart felt to you i'm sure. >> come on up.

mr. herrera. >> mr. president, before i

conclude my rart, i just want to say a few words. regarding what you commented on in the beginning of this meeting and the last one about changer of the guard at the public utilities commission, and on behalf of the entire staff of the public utilities commission, i want to thank you mr. president, and commissioner ajami, and vice president rivera for your tremendous service and how much we enjoyed work wg all three of you for your professionalism, questions and challenges that you pose to us to make sure we are the very very best that we can be on behalf of the residents of city and county of san francisco and rate payers and we strive really each and every day to live up to your confidence. the professionism all you brought to the commission over the course

of your years of service is something we cherish and respect and thank you very much for your service. commissioner ajami isn't here. mr. president you talked about your term of service and commissioner rivera. your term continues until the end of this month, but we value everything that you have done on behalf of the residents and rate payers of the puc and i want to thank you on behalf of the entirety of our organization for a job well done. [applause] >> thank you. thank you mr. general manager. okay. >> that concludes my report and i'll ask assistant general manager steve ritchie to come up because i have to appear before the board of supervisors. >> dually noted. thank you. okay. so, there are no more

activities or events that we need to acknowledge here, so let's go to item number 6, please. >> item 6, bay area water supply and conservation agency report. >> good afternoon president paulson, members of the commission. it is dpood good to be here today. i miss seeing you in person. there are three things that i wanted to discuss today. first, earlier this month i guess actually was beginning of september, assembly bill 2962 by diane papen passed and signed into law by the governor. it extends state oversight on your implementation of the water improvement program. i wanted to thank general manager herrera for his support in securing san francisco's support for the bill. that was critically important to me as we move through this process.

the bill extends the state oversight now through january 1, 2036 and the hope is that extension will enable completion of the [indiscernible] storage recovery project both critical to water supply reliability and then that will complete the state oversight at that required program. my second and i did distribute a statement to you about that so i know you have that. my second item i wanted to remark upon was, earlier this year, i announced my upcoming retirement the end of the calendar year and last year the board selected its new incoming general manager. i also sent you a statement on that. mr. tom smagal he has been chief financial officer at california water service company. he has been there 27 years.

cal water is your sinkal largest customer interestingly enough and the second largest retailer in the state of california. in that time and previous work with the state of california, he's had a tremendous breath of experience on water related issues from drought, water supply, water reliability, rates, also risk, risk management, capital work. i personally worked with tom 10 years while he has been in the cfo position at cal water. i believe the board made a excellent choice and i think he'll be a exceptional leader for bosc a and know he's excited to begin work with you on behalf of the water customer bosca represents. there will be a transition period so he will start december 1. i will stay in some form or fashion.

i don't know what the title will be for december, my official retirement date is december 31, so we will have a hand-off period, and my hope is that before then we'll have a opportunity to bring tom here, introduce you to him personally, also introduce him to mr. herrera. steve knows him and also got to see him last week, so i think this will be a great transition and i appreciate your support for that. and then lastly, i too want to thank you for your service president paulson, vice president rivera, commissioner ajami, as your term ends on the commission. our work as public servants me and the staff and the staff you were just talking about, none that works if we didn't also have leaders such as your is lf that are in that role and willing to step up in that role and it

is not a easy job. i often think it is thankless job and to do it well takes a lot, and so it is much appreciated and so, on behalf of the $1.8 million customers the 26 agencies and the board i thank you for your service as well. that conclude my remarks. >> thank you. it has been a pleasure to work with you, since we all seem to be saying a good bye this is the good bye commission meeting, retirees. thank you and pleasure working with you and your reports are always critical from hearing what customers are thinking and studying and what have you so thank you and good luck to the next guy coming on board to fill your shoes, which wont be easy. and thank you for the kind words. i have no questions or any other comments.

commissioners, any other comments? okay. thank you and enjoy your retirement. >> thank you. >> item 6, do we need to go to public comment on bosca? >> remote callers, raise your hand if you wish to comment on item 6. seeing none, moderator, any callers with their hand raised? >> ms. lennear, there are no callers in the queue. >> thank you. >> public comment is closed. let's go to-can you read item 7. there are four, five items. >> item 7 is consent calendar including items 7 a-7d. >> i see five on here. commissioners, are there any

comments or questions or do you want to pull anything from the consent calendar, a, b, c, d? >> there are two item d, the second d should be a e. >> we'll call it e. a-e. any comments or items commissioners you want to pull? seeing none, let's go to public comment on consent item. >> remote callers raise your hand if you wish to comment on the consent calendar. do we have any members of the public present who wish to comment on this item? seeing none, moderator, any callers with their hand raised? >> ms. lennear, there are no callers in the queue. >> thank you. >> thank you. public comment is now closed on the consent calendar, item 7. motion and second to accept the consent calendar? >> move to approve the consent calendar. >> second. >> there is a motion and second

to approve consent calendar. roll call, please. [roll call] >> 3 ayes, the item passes. >> thank you. ms. lennear, can you read item 8? >> item 8 and 9 will be heard today and voted separately. item 8 authorize the general manager to execute and installment sale agreement to secure a clean water state revolving fund loan for the wastewater enterprise new treasure island wastewater treatment plant project. >> hi, good afternoon. can i get the slides, please? thank you. alexander loans grant and director and presenting on behalf of business services on these two items with my colleague edward kwon representing capital finance today.

so, as mentioned, there are two items before you and we'll have one presentation but they are essentially the same. they are requesting your authorization for the general manager to execute two installment sale agreements or loan agreements with the state under the clean water state revolving fund or srs for the wastewater enterprise. there are two separate projects, treasure island recovery facility or wastewater treatment plant not to exceed 120million 300 thousand. there is also $8 million grant component with that, and the second item is for the storm water area improvement project at folsom and that is amount not to exceed $59 million with principal forgiveness amount of $5 million, which is essentially a grant.

it has been a couple years since you approved a loan agreement. 2022. we will do a brief overview of the program, sfpuc history. talk about the project funding and financing terms for the projects and edward will talk briefly how this fits in the financing plan and strategy. so, the clean water srf program is a program that provides low interest or below market rate funding for water and wastewater projects. so, this particular program in california has the obligation to set interest rates no greater then 1 half of the state go bond rate and that is 2.1 percent.

they can't offer grant principal forgiveness for projects like water recycling or storm water and why you see a grant component. the money originates with the uspa. allocated to 50 states and administered by each 50 states and in california that is done by the state water resources control board. laupg long-history in the program. back in 91-2001, there were 13 wastewater srf loans and then from the period of about 2000 to 2015, there were other optimal sources of financing available to the capital financing team, but around 2014, the state changed some of its financing terms to make it more advantageous for large bowoes and sfpuc reengaged

pursuing loans. from 2015 to present aside from the two before you we had 7 executed agreements for the wastewater enterprise, totaling about $400 million for total for the wastewater enterprise of $672 million. it is worth noting, there are two other loan agreements for the water enterprise, and those total about $430 million and one of those is the most recent one you saw a couple years ago for the mountain tunnel project. the two loan requests before you today are for the treasure island project and folsom project, and we are just coming to you today, this work started many years ago, back in 2020 we started pursuing these loans. the srf program is very financially constrained. just in 24-25 there were 206 applicants requesting about $3.4 billion

worth of funding just on the clean water srs side, not drinking water side and the state intends for fiscal year 24-25 to fund 91 of those projects, including these two, and of the 91 projects the total financing is about $2 billion. you will see that these two projects are receiving partial financing. the state isn't funding total project cost out of clean water for projeths over a certain dollar value. the treasure island project is forecasted at $224 million and state offering $110 million loan and $8 million water recycling grant on top that. and that is because it addresses one of the state priorities, which is water recycling. for the folsom project which is forecasted for total project cost of $391 million, the state is offering us $50 million loan and 5 million

in principal forgiveness it is essentially like a grant, and that's because it addresses priority needs for the state, which is to address regulatory compliance. so, loan administration as mentioned, these are federal funds and even though they come to us from the state, those federal funds-the federal requirements get passed to borrowers so included in those federal requirements you see various ones here. [indiscernible] it is worth noting that the state has the authority to do a neapa like process so they call ceqa plus. essentially it is nepa, but under their authority they can differ to ceqa, plus additional federal cross-cutters and do their authorization through that. also listed here is build america by

america. both are receiving financing through [indiscernible] under the adjustment period waver which means american iron and steel applies as the domestic preference requirement. b a b a is exempt. there is progress reports. there is site visits. those sorts of things, noticing. the noticing and reporting on the financial side is very similar to what is done for the revenue bond reporting. and then, financing terms here. again we are anticipating it to be 2.1 percent for both of these loans. repayment commences in april, 30 years after construction completion. this is pledge of wastewater

net revenues so on parody with the wastewater bonds with it other srf loans wifia loans on the wastewater side. i mentioned the grant and principal forgiveness for both of these. i mentioned combining with wifia. good because wifia only pays for part as well so combining the two gives optimal financing and worth noting, the not to exceed principal amount that's asked of you here is greater then the loan amount, because the loan amount-or it includes construction period interest and anticipated capitalized interest, so that's the repairment amount greater then the loan amount will include the interest, so why a larger not to exceed value. and i'll hand it over to edward to talk how this fits into the capital financing plan.

>> back to slides, please. good afternoon commissioners. edward kwon. xhgz we wanted to highlight the agreement proposed were a part of the fiscal year 25 capital finance plan presented to you last month indicated here in the red arrow. we are proceeding ahead of what was originally estimated but should still close in rks qu 2 or q3. these loans and future similar loans are part of the puc overall strategy to actively pursue low cost financing al trfbatives to revenue bonds to fund capital projects. the loans proposed today for example have a stated interest rate of 2.1 percent with rate of maturity of 17 years, versus 4.2 percent, the rate of our latest new money wastewater revenue

bond. those bonds in average life of 23 years. as with the rest of the enterprise cip, overall strategy is interim fund with low cost short-term financing, namely in the fund of commercial paper and that is the same. those commercial paper notes long-term finances such as revenue bonds or loans such as this when appropriate and of course, we will continue to actively monitor the markets with our advisors and financial partners for refinancing opportunities when advantageous. this slide summarizes the good faith estimate prepared by our municipal advisors for both loans today. this is also provided in the staff report. we require by sb45 to provide these estimates to governing body at the time of the transaction being approved. as you see from the estimates, which factor in anticipated grant portions of

each agreement, the true interest cost is anticipated to be quite low, and that's it. turn it back over to alexandria. >> okay. >> any questions? >> comment and miner question. obviously, the most difficult part of getting this stuff done is get into the weeds of the financing and what comes from grants and what comes-how you work into the government system as well as these loans. you seem to check all the boxes of everything that we need by what i'm looking at. even when i looked at your comments. just wondering when it comes to interest rates, would that have changed at all within the anticipation and final lowering of rates that the fed did a couple days ago? did anything change because

that? you are so far into this by the time the feds probably work, i'm just curious if anything got better by any chance with what happened wednesday? >> is based on the state most recent bond sale which happened in the spring, so hasn't changed yet. i think they usually do in the spring and sometimes another in the fall but haven't heard if they will do another in the fall yet. >> you are doing this around the clock trying to bundle all this stuff, so i have no other questions. commissioners? okay. we will--let us open items 8 and 9 to public comment, please. ms. lennear. >> remote callers, raise your hand if you wish to comment on item numbers 8 and 9. do we have members of the public present who wish to comment on

these items? >> none present. unless, sir are you going to the mic? >> moderator, any callers with their hand raised? >> ms. lennear, no callers in the queue. >> thank you. >> public comment on items 7 and 8 are-8 and 9, sorry, thank you, are now closed. council, can we take these 8 and 9 in one vote? okay. i like a motion that we approve the installment sale agreement of both item 8 and 9 please. can i get a motion? >> move to approve item 8 and 9. >> second. >> motion and second to approve items 8 and 9. can we have roll call, please? [roll call] >> we have three ayes, the item passes. >> item passes. can we read item 10, please? >> approve amendment number 1 to

contract number pro.0168b, engineering service for transmission and pipelines with kennedy jenks consultant inc. and a gs inc. joint vercher. >> may i have the slides please? good afternoon commissioners. ted lee, from the puc engineering management bureau. here this afternoon to request approval for amendment 1 for contract number pro168b engineering service for transmission pipelines. our transmission pipeline system vary in age from 5 years to 90 something odd years and run from hetch hetchy reservoir to the city through the east bay to the peninsula and towards the city. in 2020, we advertised pro168 a and b to support these pipeline projects.

specifically 168b covers facilities shown here in the east bay and peninsula. by resolution 210117, the commission awarded pro168b to kennedy jenks consultants and a gs, a joint venture. the contract is $7 million 8 year pool contract where we list a selection of pre-determined projects that the contract will support. this type of contract provides for flexibility in professional service support through project planning, design and construction. the primary role of the consultant is to provide planning and engineering services for our large diameter transmission pipeline focusing on specialized engineering work, geotechnical, survey seismic studies and trenchless crosses. we assume the majority split with infrastructure staff performing

about 60 percent of the design work and the consultant performing about 40 percent of specialized services. at the time of advertisement, the capital plan had a budget of $318.9 million for these projects. since then, we completed condition assessment, planning, and started design on several facilities. the capital plan has $409.4 billion. but hundred million dollar increase. this table is formatted similar to a item a few meetings ago that shows the project in pro168b in the left column, the current phase of each project, the current contract budget, and our proposed amendment 1 modifications. we funded task orders under the

contract based on project criticality and priority. we did not assign a set aside amount for each of the projects as this was not known prior the condition assessment work. now we know more, amendment 1 on the right side column asks for additional $10 million with no additional time to continue planning and engineering design for 5 projects. crystal springs pipeline 2 reaches 2 and 3, cspl2 reach 5, the regional prestress concrete cylinder pipe pipe line 4 at millbrae and also phase 1 and the palo alto pipeline. significant increase to the contract, but intentional evolution of the work based on criticality and priority. next i'll take you through project updates.

this is crystal springs pipeline 2, reaches 2 and 3. we are looking replacement and realignment of 1.5 mile stretch and lining for remaining 4 miles. the second bullet here shows the budget for when the contract was advertised in 2020, versus the budget in the current capital plan. we can see that the capital plan budget increased from 56 million to $83 million. this pipeline is located in a steep hillside adjacent to crystal springs road up to harry tracey water treatment plant. for 2 reach 5, we are replacing four miles of pipelining, adding new man holes and in-line isolation valve. for pipeline 4, the rehab at millipedes, we are slip lining our pipe at the union pacific railroad crossing. has one track that crosses a

pipeline, so that stretch of the pipeline is encaseed and reinforced to withstand the rail car which is a lot heavier then normal cars. uprr has plans to widen their tracks and put a second track across, so we have to extend our casing to withstand the railroad crossing. that is what is going on there. for bdpl4 phase 1, looking to replace or slip line 10 miles due to lateral spreading, severe ground motion and slope instability. for palo alto pipeline, looking to replace 5.1 miles of 36 inch welded steel pipe and this pipeline experienced spot leaks and in certain locations a very shallow cover.

this slide is a very data rich slide. [laughter] it is the same as the earlier slide but adds additional column on the right side for a rough order of magnitude request for perhaps a future capacity as planning and design work continue on these projects. so, wree anticipate that we will need to find or other means for contracting to do this work, which may be utilize existing as needed contracts for smaller efforts, or for larger efforts likely new rfp, or we could perhaps come back to this commission for a future amendment to pro168b. from a funding perspective as projects move through condition assessment and into planning, and as we learn more, updated scopes and budgets will be taken into consideration in the 10 year capital planning and budget

process. with that, i'm available for questions. >> great. thank you. i do have one question that only came to me because i'm-during the course of your presentation. when it didn't come up. in slide 6, which is the csp2 rehab, you just have a line item there that you mentioned, the capital plan budget increased from 56 $56 million to $82 million over the course of 4 years. could you detail if i thought of this earlier i would have asked for you to be prepared if not, but curious why that increase took place, just as a example of why over the 4 years it goes from 56 to $82.8 million? >> these are assistant general manager steve ritchie facilities, all of them. >> passing the buck? [laughter] >> innocent bystander. >> he is chairing the meeting.

do you have a answer? >> i have some idea what happened. generally when we were looking at reach 2 and 3 it is steep hillside up towards harry tracey on the left side so partially this is pipeline is buried in the hillside but the ground sloughed away and come apart and some of the pipeline is exposed. you can see maybe 25 percent of the pipeline and so when we first planned this out, we didn't have a good condition assessment and walk the hillside and find what was going on, so it was sort of a budgetary number within the capital plan. since then we have done a lot of condition assessment and done surveying in the area so we know a lot more and so with knowing a lot more we are able to better define the project scopes and the number has gone up.

>> good afternoon, katie miller, director water capital projeths. i want to add, for these transmission pipeline projects, also between the time this contract was first put out and all the rebudgeting and rescoping that has gone the condition assessment and all that work, we also passed a significant health and safety procedure that you may recall that is about having double isolation of valves, so workers can go inside the pipe safely and have two valves protecting from water if a valve should fail. we did significantly increase the scope by adding a lot more valves and ways of isolating the pipelines. >> i can summarize to say in 2020 you went in and just sort of looked and got a guesstimate but not deep into it and put it in the capital project and once you looked into it deeper and

went with extra valve jz soil assessment you are henting at in 2024, it has gone up close the $30 million more because that? >> yes, that's correct. >> okay. i just. okay. i just wanted that question asked and answered. thank you. i will not say anything else. commissioner stacey, thank you. >> thank you. my concerns are very similar to president paulson's. it is always very concerning to see this large percentage increase in a contract more then double the original amount and then as we go through and i know we have seen some of these numbers before, but a lot of these projects have significant increases in cost and what i understood from the report and what you just said and what mrs. miller just added was there are- i

don't know if unforeseen site conditions, but certainly more in depth understanding of the site conditions, and also increase in scope in some of the work. some of those big project increases are due to those changes, which means that the engineering technical studies and the support services has to expand as well for these bigger projing ects which is sort that cascadeing effect on the contracts. but, it is important for all of us from a budget perspective, from a rate perspective to stay on top of this constant upward push on some of these projects, but it certainly-the reason for the chaipg change in the

project seem important from a safety perspective and seismic safety perspective and to make sure the system can stay in operation and doesn't suffer damages. so, i appreciate that. it is just always concerning to see this constant upward movement. >> commissioner rivera. >> thank you president paulson. so, i just had one question or clarification if you can help me. so, you said initially with the first-when the contract was first written up, staff was tasked with 60 percent of the engineering and 40 percent was go toog the consultant. now with this additional $10 million amendment, what is the percentage? is it still 60/40? >> should still be 60/40. approximately. >> and they are able to complete it in

the original amount of time? >> at this point, we think so, yes. part of it was we-i will use beta vision pipeline as a example. this is a phase 1 pipeline. >> can we have the slide, please? >> beta vision, this is the concrete cylinder pipe rehab. beta vision pipelines runs in the peninsula. what we did here we looked at the more critical areas. areas of steep revenes, stream crossings and very hard to get to, so we want to look at those critical areas first and clear them environmental and go in there and assess that. a lot of the trenchless crossings are very specialized services, see there is a up front loading of

consultant work upfront because they do those for tipdle crossings. later in phase 1, we will be looking at pipelines that just run in a right of way fairly flat and that's where the city forces we can take over and do a lot that ourselves. the 60/40 still stands, it is just front loaded. >> furthermore, when we do our initial estimating or assessment are we uses consultants like sailor to get that down or do we have staff that comes up with these initial assessments because they seem pretty well-- >> you are referring to the contract value? >> correct. a estimate of the work that has to be completed. from $5 million to 55 is significant. >> i think in the beginning we didn't want to come to the commission with a

very large value, because we didn't really know what was wrong with the system. if there were problems with the system or we would have a project, so we came with a value that then could allow us to do condition assessment and planning work and now as the project scopes are better defined, we are asking for design and-- >> so, my question was, are we--is puc internally coming up with the estimate or are we using a consultant to do the estimate, because if we use a consultant they are obviously erroneous. is that something we could address? >> i can speak to that. maybe steve robinson can as well. one of the hardest things in capital planning is the initial cost estimate, because you got very little information in many cases, but you need to make sure you put money in the

capital budget that is significant enough to pay attention to. that is a real project. as we get into more detail work there more. we can find some way-there are ways to do this, because we have been seeing this issue-this is not a brand new issue. this has been occurring for years and years and years. cost well above the initial estimate. we could take a different shot at those that just automatically we bump it up more just to account for it and if we are over on some, darn. it will come down a bit. we have to just deal with that issue. steve. >> [indiscernible] for infrastructure. for some project scope or need is fairly well defined we can go into a process in the capital planning phase where we have some level of comfort and based on history that

particular facility or work done similar before. confidence what the size of the project is. that gives confidence using industry ratios what design would be or expect construction to be and can work it out. oats others can be iterative and some of the pipes were unknown. in order to activate the work for us to do the investigation to figure what the need is, we needed to put some amount of money in the capital plan which allowed us amount of contracting to support doing that work for the special ist service. in this case it is iterative contracting approach. there are pros and cons and this is a challenge coming back to say, there is a lot more work that needs to be done even after this amendment that is in front of you today. >> in many cases we consciously just budget for the initial assessment and not for the full construction.

we are in that situation with the alameda creek recapture project. we have $5 million budgeted now for planning but we know that project will cost substantially more then that. >> if i can add to that, i started this with my initial question about that one particular line item and i just want to paraphrase and i didn't do a follow-up question, but thank you commissioner stacey for doing that. my context for asking this is that, every since i have been on the board i have been impressed with the diligence your staff has done no matter what the type of project it is. i think when i first started on board we were opening the calaveras dam and when i was at the ceremony i this was up this was and therefore heard the explanation but see the wall previously you had gone through extrapieces to over there, we didn't know how goofed up make sure it was done right. the one thing you guys are is diligent. you are not just okay, we said it cost a dollar but it cost 2 dollars

because you don't want this poisoned or screwed up. there is that piece that is always been knowing about construction and infrastructure work that that stuff always does happen. you get the place-marker and move. this one sort of like got one pipe and 4 years ago 50 grand and now 82. what is going on here? i think it is the rule of us as commissioners that is why this commission exists and why we have this oversight body is to ask those type of questions. that is what we are here for. my question wasn't coming from acquisitions, it was coming from the explanations, because you got a huge budget in a city committed keeping its infrastructure up to snuff and that is very complicated and the teams that are involved in that work very hard at it. but, we will ask you those type of questions i guess is the just of where we are. >> since you mentioned calaveras dam replacement project was a

interesting project because that was a great cost estimate and then we got into the construction project and found the unforeseen conditions that had not been discovered during all the investigations, which caused the project cost to double. with the information in hand, it was a really good cost estimate. >> and this want going to be as i said before, i got you. you didn't take short cuts and were not doing something because it didn't meet budget. you are doing it right and those are the difficult decisions to make and for the most part the taxpayers of san francisco said we want our stuff taken care of and that's what we deal with here in town. okay. any other questions on this commissioners? great. okay. so let's open-thank you very much for the presentation and the back and forth.

so, we are on item 10. ms. lennear, can we open up to public comment. >> please raise your hand if you wish to comment on item 10. do we have membersprint present who wish to comment? if so, please approach the microphone at the podium. seeing none, moderator, any callers with their hand raised? >> there are no callers in the queue. >> thank you. >> public comment is closed on item 10. thank you. commissioners, can we have a motion and second to approve the amendment in number 10? >> move to approve. >> second. >> there is a motion and second. roll call, please. [roll call] >> we have three ayes, the item passes. >> okay. can we read item-thank you. can we read item 11, please? >> item 11, award contract pro0239, new city distribution division

campus at 2000 marin construction management staff augmentation services to consor pmcm inc. >> good afternoon commissioners. my name is mario valdez the contract manager for the construction management bureau. here to share information with you regarding pro239, which is our new city distribution division campus at 2000 marin. so, as you probably know from the agenda, the contract amount is 10 million, 720 thousand 500. we derive the budget based on the positions that we are seeking. the level of effort and the duration of the project. the duration is 4 years. 3 months. the challenge with a contract like this is to award the professional services

just as we get ready to hit construction, and we are on track to do that and i can share some that information with you little update where we are with the construction of the project as well. if you have any questions, happy to answer. >> thank you. commissioners, any questions? commissioner rivera. >> yeah, i just had a specific question regarding refueling of the shop vehicles. are there plans currently for diesel dispenser at the new cdd? >> at that level specificity i don't know. i do know we are building a new fueling station on campus. that is one of the facilities constructed. presumably it would have diesel because i know other existing facilities when we fill up the cars we can fill with diesel. >> right, because i think there existing one at newcom. my question would be, are we looking at

potential alternative fuels like hydrogen to install in this new facility looking forward and i think i mentioned this at a meeting before. there's a facility on-i was going to say army street. it isn't army. it is cesar chavez and folsom and another at sfo, and i'm wondering if that is something that is potential for us to look at as kind of forecasting what alternative vehicles may be out there in the future and i know the army has been testing some of these vehicles with really great success, and you know, i know we use a lot of construction trucks et cetera, dump trucks and it just something i

think would be-we would miss not to look into that and look for that potential, because there is a pretty large fueling depot on sell be at the current central shops. probably not even a quarter mile away,ic so there may be a redundancy of services there. just something to think about little food for thought. >> definitely. i am more then happy to follow up with the project manager or project engineer and are report back if that's preferable. >> okay, any other questions? let us open up item 11 ms. lennear to public comment. >> remote callers, raise your hand if you wish to comment on item 11. do we have members of the public present who wish to provide comment on this item? if so, please approach the microphone located at the podium.

seeing none. moderator, are there callers with their hand raised? >> ms. lennear, there are no callers in the queue. >> thank you. >> okay, public comment is closed. can we have a motion to award contract number 11, please? >> motion to approve item 11. >> second. >> roll call, please. [roll call] >> we have 3 ayes, the item passes. >> thank you. any item 12 is communications. is there information or anything that needs to be talked about? seeing none, item 13. can you read, please? >> item initiated by commissioners. >> commissioners, is there anything you guys want to throw on the calendar or talk about? commissioner stacey.

>> i am not initiating anything, i just wanted to thank president paulson and vice president rivera for your service. commissioner rivera, i hope you come back. i know your seat is yet unspecified, but it has been a pleasure working with both of you and thank you also to commissioner ajami for your service. it has been a learning process for me and i appreciate everything i learned from you all. >> thank you. commissioner rivera. >> yes, thank you for the kind words. i really appreciate that. very nice of you. i did want to mention that on wednesday i was able to go and see the sfpuc contracting center. it's in the southeast part of the city near the old candlestick part and

little hollywood. i had a great great eye opening experience, and it was just really nice to meet a lot of the potential lbe's that will be bidding on our jobs and micro lbe's, but i just want to thank personally thank mr. steve robinson and also ben pool for facilitating my request, and you know, i met mr. miguel gularza and the guy is a wealth of knowledge. he had so much information-within the first 5 minutes, i thought to myself, this guy could be a professional or consultant in bidding contracts. not only on the local, but there state and federal level. he just unbelievably competent and for him to be there on a wednesday

afternoon and talking-helping these young entrepreneurs work wg their businesses how to bid jobs, how to fill out contracts and how to adhere to the city administrative code, it was unbelievable. i had a really great time and meeting everyone there. i just want to say i think that that is a excellent facility, and just really appreciative and i'm going to come for one of the bbq, and for the graduation ceremony for the current cohort when they graduate, but i would just recommend for anyone on this commission to see that. it was excellent. thank you. >> great. thank you commissioner. okay. anything else commissioners? okay. next item is ms. lennear, can you read

the items during closed session? >> yes. item 14 public comment on the matter to be addressed during closed session. closed session item is the gabriel perez versus city and county of san francisco. >> okay. let's open up item-this item which is to public comment before we go into closed session. any comments on the item that we will hear in public comment? can we open up that up? >> remote callers, raise your hand if you wish to comment on item 14? any members of the public present who wish to comment on this item? if so, please approach the microphone located at the podium. seeing none, moderator, any callers with their hand raised? >> ms. lennear, no callers in the queue. >> thank you. >> public comment on closed association item is now closed.

can we get-before we go to close session can i get a motion to assert attorney client privilege? >> motion and segd second. can we have roll call, please? [roll call] >> we have three ayes, there item passes. we will go into closed session. [meeting reconvened] >> back in open session. i like to announce the commission is recommending that the board approve the settlement referenced in item 16. so, can i get a motion to disclose as to whether to disclose discussion? or take a motion not to

disclose discussion during closed session. >> i move not to disclose the discussion. >> second. >> motion and second not to disclose discussion. can i get a roll call, please? [roll call] >> we have three ayes, the item passes. >> thank you. seeing no more items our commission is now in adjournment. thank you. [meeting adjourned]

>> i think there would be a lot more suffering. >> if i imagine san francisco without animal care and control, i know there would be thousands of animals every year who just wouldn't get that chance. whether that means going home with a family, being released in the wild without this concerted thoughtful group focused on all these animals. the big picture view and daily care. so many animals would be lost. >> but i don't think people understand what goes on. they don't know how hard the staff works taking care of animals. >> it is just two people. one upstairs and one downstairs and the cleaning is total, 6, 7ish. one side starts off doing chemical, i close these all off so the dogs can't come

in the back, and then i'm going to spray the back, (indiscernible) >> all the magic to rehome and work with a rescue network and all the medical care and behavioral and enrichment, socialization enrichment, volunteers are amazing. so, i think if i had a waish wish, i wish that san francisco knew more about what we do. >> san francisco animal care and control is a vital part of making sure animals in this community are protected and are cared for. we deal with those domestic and wildlife. one of the primary suction is serve as a shelter. when animals have no where else to go, here is where they come. we

take in about 9,000 animals a year and the care they receive here and the ability to move from here if domestic on to permanent homes somewhere else, or if you are wildlife you come here and we figure which wildlife rehubibitator to send to. that is the shelter aspect. we also have animal control officers who are available from 6 a.m. to midnight. >> ask them to give us a call, that would be great. the number is 415-554-9400, and you can just ask for rebecca. thank you so much. bye. >> we receive approximately 20 thousand calls a year for assistance, so a lot is wildlife rescue, lost dogs, dangerous situations. ndiscernible)

a lot more animals suffering. who would people call? the police? fire? they have their own jobs and don't have resources or knowledge. they don't know how to help animals. so much hoar suffering. >> we took in 2800 animals last year. without a shelter where do the animals go? i think the community would suffer if we were not here. >> whether living on the street or (indiscernible) animals are very important to people, so we are helping humans also, and we are alleviating a lot of suffering by doing our jobs.

♪ [ music ] ♪ ♪ >> the two largest bridges in the road, symbolizing pioneer and courage in the conquest of

space and time. between these two great bridges, in historic san francisco bay, here's tribute to the achievements of our time. he's a dream come true, golden gate international exposition on manmade treasure island. >> the 402 acre artificial island was build by engineers from 1936 to 1937 on the neighboring buena island. 300,000 tons of rock was used to build a seawall around an existing sand ball then followed by filling the interior with dredge material from the bay which was consistent of modern sand. the federal government paid for construction ask three permanent buildings which would serve as a potential future airport. treasure island was constructed at the same time as the bay bridge and it was a project of works progress

administration to construct this island, which was initially used to host the golden gate international exposition. >> carnival gone big. it was busy. >> it was going to become an airport after the exposition but it was turned over to the navy and turned over to a military base for the next 50 years. >> 1941, the united states army moved to treasure island as america prepared for world war ii. the island was a major training and education center with 4.5 million personnel shipped overseas from triangle. after the war ended in 1945, treasure island was slalthed to be an airport -- slated to be an airport but aviation changed and the clipper were no longer in regular service, and the island was never developed as an airport. the navy continued their presence on treasure island. during the cold war years, the island was a myth

training center and for military efforts throughout the pacific and asia. personnel trained on and shipped from treasure island and supported military activities in korea, vietnam and the persian gulf. >> the base was listed for closure by the navy in 1993 and the city began a process in 1994 under the redevelopment agency, forming a citizens reuse committee to look at potentially plans for the island, island's future. after the base closed in 1997, the treasure island development authority was created to develop and implement a reuse plan. >> the navy has completed their environmental cleanup in that area and last week, the california department of public health issued a radiology unrestricted recommendation for that portion of side 12. it's a big milestone for the project.

>> the treasure island development facility was setup to implement the master plan that was adopted by the board of supervisors in 2011. >> given the importance of housing in the city, both the affordable component and the market rate housing, we felt that it was important to review what the housing plan is at treasure island. >> the development facility and (indiscernible) that oversees the implementation of the master plan to make sure that the master plan, which was adopted by the board of supervisors and adopted by the city and after meeting, that's plan that the city approved. the members of the board was appointed by the mayor and the board of supervisors. [multiple voices] >> the (indiscernible) is very

detailed plan. looking at the ecological aspects of the island, looking at the geotechnical aspects of the island, but also making sure that there is an ongoing of development that's in keeping with what the original plan was, which is that we have up to 8,000 rooms of housing and there's retail and hotels. but also that there is open space that's created so it's an overall plan that guides the whole development of treasure island and the buena island. >> materials used during the construction of treasure island severely compromises the integrity to build structures. in today's geotechnical engineers standing, treasure island soil is being readdressed for soil stabilization for future development. a mechanical stabilization process is being

used to consolidate the liquid fashion of the mud and sandy soil. >> because treasure island is a manmade island, we have to do a significant amount of soil improvement before we can build new infrastructure and new buildings on the island. in the foreground, you see here, it's a process called surcharging we we import additional topsoil to simulate the dead weight of the future buildings to be constructed at that site. so this is causing bay mud that underlies island to consolidate over time and we can monitor that and as that consolidation primarily consolidation is complete, then this soil will be removed to the intended finished floor elevation of the new structures. ♪ [ music ] ♪ ♪ >> in the 1989 loma earthquake, the ground level of this island dropped by four inches. pretty

much uniform across the island. loose sand material used to build the island, whether it gets hit by a seismic forces, the sand moves and consolidated. >> one of the processes to further stabilize the loose granular ground, a dynamic rate is used to densify the soil by high frequency mechanical vibrations. >> the rig in the background has four h-piles that goes down through the upper 50 feet of sandy material and as they vibrate, they vibrate causing that san material to consolidate and settle so as we do that process, we observe about 18 inches in settlement so the ground level around that equipment will drop by 18 inches, so this causes that same type of event to happen through mechanical means rather than through a seismic event. >> the dynamic vibrant

compaction rate vibrates the soil every four square meters and moved along to the next section. to further assure stability, tamping is followed around the site, compassion takes approximately three to four months to complete 12 acres. once the compassion and tapping is done, it's settled ask using laser alignments to assure a level service to build on. >> i think that every city when they have the opportunity to do something that is as large as treasure island because treasure island is five hundred acres and it depends on their needs at that time and in 2011 to now, the most important are thing for the city is housing. there's two aspects to that master plan. one, was the new district for

san francisco. 8,000 units of housing, which is all levels of stability. the other (indiscernible) is 300 acres of open space and parks. and actually, it's the largest addition to the park system in san francisco since (indiscernible) 300 acres and this is a tremendous gift to the public, both the housing, which we desperately need in san francisco as well as an open space and park system which really is going to be worm class and it will attract people in san francisco but attract people locally as well as internationally. >> cmg architecture was brought to the project once they award the agreement between the city of san francisco and the united states navy. cmg has earned

national recognition and numerous awards for merits and design, social impact and environmental stewardship. >> we were a part of the project in the beginning when the developer initially was awarded the exclusive negotiation agreement or the ena with the city and they partnered with the planning and architecture group and we joined that team to work with the developer around the city and community to come up with a plan for treasure island. >> so there's quite a lot of open space in the master plan and there's a couple of reasons for that that's pragmatic. one is that the amount of area that could be converted for private use on treasure island was very limited, actually it wasn't allowed at all because treasure island was previously public open waters and protected by the tidal and trust act to be redevelop for public use. but there was a land swap that was allowed and approved by the

governor of california, governor schwarzenegger to be put on a public trust for a one to one swap to be taken out of the trust to be developed for private use such as residential and that amount of land was 89 acres which leaves a bunch more space that can't have housing on it and the question was, what to do with all of that space? there could be other public uses that allowed such as conference centers or museums or universities or things of that nature but what made the most sense for this location was to have more parks in a really robust parks and open space plan and that's what led us to the plan we have now. >> planting strategies for treasure island and buena island are to maximize habitat value in the park areas wherever appropriate and where we can to create comfortable at the pedestrian scale. there are these diagonal lines that go across the plan that you'll see. those are wind row trees like

you see in agricultural landscapes where they are tall tree that's buffer the winds to create a more calm areas down at the pedestrian scale. so of course, we do have some areas where we have play fields and surfaces where kids need to run around on and those will be either lawns or like you see in norm at sports field. >> related to where the housing is on the island and its convenience to the walk to the transit hub, i mentioned we're trying to create high-quality pedestrian -- and the innovations of treasure island is called the shared public way and it's a road that runs down the middle of the neighborhoods. it's a curbless street, cars are allowed to drive on it but pedestrian can walk down the middle of the street and the cars are to yield the right-of-way for pedestrian and it's intended for streets where there's a low traffic volumes and the traffic speeds are low so while car was allowed, there's not a lot of reasons for

cars to go on that street but it's to create a social street that's much more pedestrian-friendly and prioritizes pedestrians and bikes. one of the interesting things is working with all architects that have been designing buildings in the first phase to encourage them, to create architecture that welcomes people to sit on it. it's wlm like sticking its toe out and asking someone to sit on its toe so buildings integrate public seating and places for people to hang out at their base, which is really, the opposite of what you see often times in this city where there's defensive architecture that's trying to keep people off it. this is architecture that's trying to invite people to come and inhabit it at its base. >> incorporated in the landscape architect of treasure island are wetlands, which are designed to factor in coastal erosion control from incoming sea level rise and natural animal habitation and stormwater runoff

treatment. >> there's different kinds ever wetlands planned for treasure island and they have different purposes. they are stormwater wetlands that's treating the runoff from the island and filtering that water before it's released to the bay to improve the water quality in the bay and the ocean and the first phase of the large wetland infrastructure is built on buena island to treat the storm water from buena island. we might see that when we go out there. there are tidal wetlands plan for the northern side of the island where the sea level rise adaptation and flood protect for future sea level rise is held back away from the edge of the island to allow sea level rise to come onto the island to create future tidal wetland which is helpful for the bay in the future as we see sea level wise flood out existing wetlands and there are some natural vernal pool in the wetland that's captured

rainwater and capturing certain habitat so there's three purposes of the wetland primarily around water filtration and habitat creation. >> consumable sustainability was incorporated in the redesigning of treasure island. innovative urban farming is included in the plans to foster economic viability, conservation of water, and to promote ecological sustainability. >> the urban farm is 20 island. and it's a commercial farm to produce food. it's not community where the volunteers and neighbors grow their own, it's commercially run to maximize the food production and that food will be distributed on the island. and interestingly, the urban farm is tied into the on island wastewater treatment plan which creates recycle use for water on the island so water used to grow the island will be a sustainable force and we're trying to close the loop of water, food, and create a new

model for sustainability. >> part of the design for sustainable landscape was incorporate natural form water garden filtering systems, the first of three natural stormwater gardens is here on buena island. and a total of ten will be on treasure island. water from storms, street runoffs from neighborhoods has the possibility to collect toxic materials as it makes its way back into the surrounding bay. this garden has been a model for future, natural filtering systems through out the bay area. >> whenever a storm comes through, all of the water, you know, it lands on the streets, it lands on the top of the buildings, and at times it often collects a lot of heavy metals and greases and it needs to be cleaned and before sent back into the back. it goes into the pipes and stormwater drainage and put into our stormwater

basin and then all of the plants and soil you're seeing in there, they are acting as a filter for all those oils and heavy metals and greases and all things that's coming off the roadways, coming off the development and so it's treated here in the storm water basin and then it's sent out into the bay as a clearer product and cleaner water which increases our water quality here and throughout the bay area. so the structure in the center of each basin is what we call the for bay. that's the point at which the stormwater exits out of the storm drainage system and into the stormwater basin itself. so the for bay is shaped as almost a gate to kind of push all water out through the pipes, all of those rocks help to disburse it before it's sent into the stormwater basin itself. the storm water basin was designed to fill up to the height of the berm of the side you're seeing here. so this is

juncus and these are well-known fresh water grasses found in any place around the bay area that you find standing water or in a drainage channel, you're going to find a lot of these junket species. this is a leave a lifter in the bio treatment. it soaks up a lot of water, to soak up the contaminants and heavy metals, so it's kind of our backbone species. this one is called douglas siana and the common name is mug war. it's a beautiful plant but doing the heavy lift and pulling, those contaminants out of the storm water and pulling oil to help treat the water before its sent back into the system and back into the bay. this plant is known as salvia or hummingbird sage. it has■ a lot of habitat value in that it's a strong pollinator plant. obviously, you can see the pink and purple

flowers which come up in the springtime and attracts a lot of hummingbirds, a lot of bees which help to pollinate the other species within the garden and throughout the rest of the island and all of those native plants. all of these plants are designed to be able to take a heavily inundation of water over a several day per like standing water for a long time. all of the plants can withstand that and honestly, thrive in that condition. so all of these were selected based on the ecological and habitat value but also their treatment and functional value for stormwater. >> this is super tiny. >> it's very much a big part of our design and master plan for the development of the island. it was a navy base and a lot of navy housing on this island specifically for around 80 years and during that time, a lot of innovative species were introduced on the island, eucalyptus, a lot of different

european and algerians plants were on the island. we wanted to bring in the native eye college here on the island before the navy started to redevelop it and introduce some of those invasive species so the species you're seeing in this stormwater garden in the basin and the upland area was a part of those types of ecology s that's trying to be returned to this side of the island but different other spaces through out the islands development. so whenever we started this process, we identified a number of species of native plants that seem applicable to the ecology that we're trying to grow. there's 45 species, so a -- there's 15 species so they are hard to find in the nursery trade so we needed to grow it ourselves to

achieve the biodiversity that's in the design here. as a part that have process, we brought on a nonprofit group called ledge, l-e-g- which is literacy for environmental justice. they grew those plants and put together the plant palates you see. >> most of landscape was inundated with invasive plant species eradicating species and having the plan on buena island and treasure island. literacy for environmental justice, a community volunteer educational program involved with restoring local habitats and preserving san francisco's unique bio tie varsity, teamed up with the redevelopment group to grow the 50,000 native plants to -- to

repopulate treasure island. >> the city of san francisco set up meetings between leg and they came in with high expertise and urban design, and architecture, and green infrastructure, but they really hadn't worked with flytive plants -- worked with native plants at scale and they were also kind of scratching their heads, like how are we going to grow 50,000 native plants from remnant native plant populations. it was a unique partnership of figuring out what plants can grow, what plants will function in stormwater gardens. not all native plants are ascetically pleasing to landscape architect, so we kind of worked around what plants are going to be pleasant for people, what plants are going to provide habitat, what plants are going to actually be able to sequester carbon, deal with erosion, preserve the island biodiversity

as well as be able to manage all of these stormwater treatment on the island. >> there's about 33 naturally occurring native plant species that survived the last one hundred years on yorba buena island. we were able to go in and get the seed and salvage plants in some cases, some of the development work that occurred was actually going to destroy native plant habitat and we went in before the bulldozers and before the roads were build and the new water tanks were installed and dig them up, divide them, hold them, of the 50,000 plants we grew 40,000 of them in-house and the other ten, we had to rely on our partners to do it. with the 50,000 plants we did, we did 100 species and

95 of them are from the county of san francisco. about the other five are from the state of california. but the other 95 species really are the native plants that have been here for thousands of years. we used collection sites such as angel island, the presidio had genetics for the projects in san francisco. we used remnant plant habitats at hunters point and we used a lot of genetics from san bruno mountain. just to collect and process all of the genetics was a two-year process. and then it was about a two or three year process to grow all the species. >> this is the infamous -- it's a low, growing sprawling native herb and it's in the mint family and i'm rubbing my hands on this

and it's extremely aromatic. it feels like a flush of peppermint just came across my face. it's edible. you can make tea out of it. it's a great digestive plant for settling your stomach. it has been cool to introduce yerba buena to yerba buena. this plant is called dutchman's pipe. when in bloom, the flower looks like a dutchman's pipe. and another thing that's unique about this plant is, it's the whole specific plant for the pipeline swallow tail butterfly. so some butterflies are able to adapt to other species and can use larva and food from different species.

in the county of san francisco, there's only about three or four healthy populations of this plant. these particular plants were going to be destroyed because of the green infrastructure project needed to put pipes in and needed to demolish all water tanks and build new water tanks for the island, so we were able to go in, dig them up, cultivate them, extrapolate dozens of plants into hund hundreds of plants and restore it through the restoration process. one day one of my nursery managers was down here and she found the pipeline butterfly have flown over from yerba buena island and came to our nursery on treasure island and was breeding on this plant. and successfully did its life cycle inside of our nursery. so, it? how that butterfly knows

it's out there and find it, this is one of those unique things that we can't explain why butterflies can find this species but if we grow it and put it in the right location, they will return. so the plants we're looking at here is faranosa known as just dedlia or live forever. the construction is it work happen nothing that area, it's likely to be destroyed. a unique thing about this plant and the unique succulents we have in california and the live forever plant can live to be 150 years old. recently, the state of california just did special legislation to protect this plant. i think in its intact population on the island, there's less than 50 of them, so to be able to grow several hundred of them and have them be a part of the plant palate of

the stormwater gardens that was installed recently is an increase of biodiversity and a step forward towards protecting the natural legacy of the island. >> i moved to treasure island in 1999. i believe i was one of the first residents on the island. i have seen how the island has been destroyed and reconstruct since its beginning to restore the island to its native form is extremely important to me because that will help all the animals come back to the island and make this place even a better place to live. >> i want to be here because these are people i know, so that was my first thing is just, like, i wanted to come here to help out and be with (indiscernible) and to actually put my hands in dirt. i feel

like we as people don't work in army -- we don't see the benefits of plants, like, but i just learned about a plant that if you rub it enough, it turns into soap. that's cool. and we need those things. we need to know about those things. >> one really unique thing about this project is the scale. to use 50,000 native plants over 7 acres is a scale we have never seen. it really is trailblazing when we think about the 350 or 400 acres of open space that is planned for treasure island, it sets the stage for what is possible. there's a way to use nature-based solutions at scale to meet the needs of climate change, sea level rise, the crisis of local extinction and

create natural environment. the first phase of the project sets a stage for what is possible and i just feel really blessed to have been a part of it. >> one of the main focus on triangle is keeping vehicle traffic to a minimum. for residents and visitors, public transportation is highly encouraged and will be the center point of keeping the island pedestrian-friendly, retaining an open space sent and providing an eco system that reducing carbon emission >> we need the transit to be successful because if we had 8,000 homes here and everybody was trying to use their car to access the bay bridge every month, it will overwhelm the system. new on and off-ramp are being constructed but all over the focus of the development is to be very transit oriented.

triangle itself is very flat and very bikeable and walkable as a result and so there's a focus on using both bus and ferry service to get from the island to san francisco in the east bay. there will be a number of transit demand management tools that will be employed of the two new ramps to and from the -- to the island and allowing a limited number of cars to access the bridge and there will be a management toll to encourage the use of transit. >> all the market rate housing on the island, the price for residential unit whether that's a rental apartment or a for sale condo, the price of the unit is decoupled from the price of the parking spot. so people can buy a condominium without paying for a parking spot. they choose to have a parking spot, they would pay an additional price. market rate residents are required to purchase take transit pass each

month through their hoa fees or through their rent so the residents will begin the decision of driving or taking transit with a transit pass in hand each month. that transit pass will function as a muni fast pass allowing people to take muni and transfer within the muni network and function as an ac transit allowing people to take ac transit to the east bay and transfer within the ac transit system and it will also provide unlimited access to the treasure island ferry. >> treasure island is going to take decades to be fully build out. it's going to take some time for it to reach the envelope that was passed by the board of supervisors and maybe there will be changes to it as well. we don't know what is going to happen in 50 years but

i'm confident by the fact that the plan that was adopted was fully, fully thinking even for its time and the building the island to a way it's sustainable, it addresses sea level rise, but also gives the public the open space and parts that are so necessary to fill treasure island. there's economic, certainly, challenges and whether we're going to be able to build out all of what was desired in the master plan, it will -- time will tell, but i think that the last ten years, we've been coming to this point. we are seeing incredible progress and the infrastructure is being finished by the island. market rate housing is being finished. affordable housing is

being finished. and so, we feel within the next five years, substantial part of what we had envisioned is going to come to fruition.

>> who doesn't love cable cars? charging emissions and we're free which we're proud of you know, it's not much free left in the world anymore so we managed to do that through donations and through our gift shops. you got a real look and real appreciation of what early transit systems are like. this was the transit of the day from about 1875 to about 1893 or later, you know. cable car museum is free, come on in. take a day. come down. rediscover the city. you can spend as time you want and you don't have to make reservations and it's important to be free because we want them to develop a love for cable cars so they do

continue to support whether they live here or other places and people come in and say, yes, i have passed by and heard of this and never come in and they always enjoy themselves. people love cable cars and there's none left in the world so if you want to ride a cable car, you've got to come to san francisco. that what makes the city. without the cable cars, you lose part of that, you know, because people who come here and they love it and they love the history ask they can ride a cable car that has been running since 1888 or 1889. wow! that's something. can't do that with other historical museums. rarely, have i run into anybody from outside who didn't come in and didn't feel better from knowing something about the city. it's a true experience you'll remember. i hope they walk away with a greater appreciation for the history, with the mechanics with people are fascinated by the winding machine and i hope the appreciation, which is a part of

our mission and these young kids will appreciate cable cars and the ones who live here and other places, they can make sure there will always be cable cars in san francisco because once they are gone, they are gone. it's the heartbeat of san francisco that founded the cable and the slot and without the cable cars, yeah, we would lose something in san francisco. we would lose part of its heart and soul. it wouldn't be san francisco without cable cars. [bell ringing]

>> you're watching san francisco live with chris manner. >> today's s f f is - >> hi, i'm chris