>> call attendance or roll call. in dam secretary. >> president stacy >> here >> vice president arce. >> here >> commissioner jamdar >> here >> commissioner leveroni. >> here >> before the first item the san francisco public utility's commission acknowledges stewards of the unceded lands within the

historic territory of the o tribe and other descendants of historic federal recognizes mission san jose alameda county. the puc recognizes that everybody citizen residing in the greater bay area has and continues to benefit from the use and occupation of the tribes lands. since before and after the puc found nothing 1932. it is vitalally important that we not only rescue nietz the history of the tribal upon lands which we reside. but that woot we acknowledge the fact the people have established a work partnership with the puc and productive and flourishing members went many greater san francisco pay area communities today. call the first item.

>> 3 approval of the millions of december 10 issue 2024. are there yekzs or comment on the minutes? >> could you open public comment mrs. lennear. >> raise your hand if you wish to comment on item 3. moderator. are there callers with a hand raised? >> there are no callers. >> thank you. >> thank you. could i have a motion and second to approve the minutes of the december 10th. >> move we approve minutes. >> seconded. >> roll call vote. >> president stacy. >> aye. >> vice president arce. >> aye. >> commissioner jamdar. >> aye >> commissioner leveroni. >> aye

>> next item. >> upon general public comment item 4. mr. decosta. >> ficould mention the commission values civic engage. and encourages respect at the meeting skw ask all comment made in a civil and courteous manner and you refrain from the use of profanity. thank you. >> [inaudible]. [no mic] california arson. they should be a presentation as to how our reservoirs and other things related to the fire will

are evaluated. the whole block was burned in the bayview. the thomas. thomas street. so, even though the reservoir the university was a few miles away there was no pressure. so, you commissioners have to take responsibility to do a need's assessment. in san francisco but in northern california. closer to hetch hetchy. secondly, commissioners, this is a document that all of y'all should read. it called. amazon documents. i want you to go through this document have a plan the layman

does not know it. but the [inaudible] have it. 15 year old plan linked to the sewer system improvement project. and i want y'all to put it on the agenda in time so this we get a good understanding. what really is going on. it is a 15 year old plan. linked to the sewer system improve am project by the people who spent a lot of money to create this document. thank you very much. >> any other members present who wish to comment? i'm jason foster. i like to call attention want to performance audit of the puc

committee published by the san francisco budget and legislative analyst on december 20th. in that you know there are a number of findings related procurement. contract management and general accountability and maintenance of what we procure. the simple toms articulated there under lying the 7 issues, are related to under staffing and poor supported staff. what we see is we see the inability to keep up with the rate of delivery and the complexity to deliver against the complex capitol projects. >> in the budget that will be talked about we have a 14% personnel expense. many of the consent items on the agenda today demonstrate

symptoms of this problem. please support the staff the puc committee with additional staff and better tools to deliver for all of san francisco. >> thank you. madam -- i'm sorry. i will wait. just -- i'm happy to take public comment later i think for the commission's etification i like to comment on two items on public comment which i general low don't do they are important enough in this case i do. with respect to the first comment talking about the city's aws s system emergency fireplace fighting system, i think in light of what happen in the los angeles it would be useful for you to understand our system i'm happy to schedule that because it is a very robust system and -- there has been media reportsow extensive and well

fortified san francisco is when it come to emergency firefighting. tell be helpful for to you have a presentation and we are happy to provide that. because san francisco is well equipped to deal with a catastrophic firefighting event and important we share that i'm happy to schedule this. with respect to the second item i think the gentlemen was reserving to, if i'm correct, he is referring to legislative and budget report in december before christmas an audit of which we can provide to you which audits 3 fiscal years. it was the 2-1/2 they were about contracting practice in the like. that studied years before i got here. and the practice that were in place before -- i got here. of the three years audited 2-1/2

of them were before -- came to the puc. i agreed with all the recommendations that came out of the report and the before this report came out we started to impelement and change some of the practices well i aappreciate the gentlemeneration the issue, for your etification we started working on those those are things i talked about once i got here. contracting and improvements to make we are on the road to rectifying those things audited before i came to the puc. >> thank you. i agree i think a great idea to i have presentation on our upon emergency firefighting >> we will get that schedule. >> thanks. we have rowe remote public comment? >> moderator? do we have members with hands raised? >> there are two callers.

>> thank you. >> you have two minutes. >> caller? >> i'm neymary butterwic a resident of san francisco i have [inaudible]. connection to the tuolumne river the source of my drinking water and responsibility and support of functioning ecosystem in the tuolumne. last year the sacramento superior court rule in the favor of the water board's two 2018 [inaudible]. however, due to the lawsuit we already lost over 5 years of progress and implementing the standards. now is the time to ensure flows at this time tuolumne are consistent with this [inaudible]. the fall run salmon are in need of initial the propoedz tuolumne

river voluntary agreement cannot be objectives of the bay delta plan because it produces little in the way of new protected flows in the to the mow. it is essentially a delay tactic to avoid the difficult decisions regarding the use of water in an over appropriated river system. the claim this they can produce more fish with less water istrary to [inaudible]. and common sense. i urge the commission to revisit the extremely conservative [inaudible] reduce the length by a year apply demand projections based on finance of water. rejections. and then present the result to thes public. the actions would facilitate a meaningful dialogue on [inaudible]. entered in the environmental

values of most san francisco residents. thank you. >> hi this is dave warranty i have respect for general manager herrera and it is in his interest not to speak until everyone has spoken. i'm glad he is take the perspective on the capitol project problems. i will point out tht fourth quarter of 2024, that ended in june. the water enter price plan report for projects in progress showed that there were already, they were projects going a short time. throw billion dollars worth of budget project his a cost over run of 600 million dollars. about 20%.

so a lot more attention needs to be paid how to we can improve our planning efforts so we can come inspect on plan and accurate low forecast the per capita projects approximately comp cost is important now. thanks. thank you. caller you have 2 minutes. >> thank you this is peter. i'm glad the issue of the performance audit came up. i was expecting to see it on today's agenda teem seem it is like a big deal i hope you will put it on the next agenda. of concern is change orders. and dave mentioned the cost over runs last year a lot is due to the change orders. i feel for you, commissioners. you know combined tenure of two

years. that happened way before you were involved. the bottom line the can has been kicked so many years it revolveed a recycling cart that ended at your door step there is a lot of work to be don different issues. the tuolumne river salmon population suffered the wirfs decline special need the bay delta control plant the puc oppose today and manufacturing of the water crisis that will never materialize. pucville taer agreement discredit by a peer review commission by the fishery service. despite requests the puc never responded to this report. the puc begin on address that issue regarding the epa order

for san francisco to clean update discharge to the pacific ocean the city sued and the issue is before the u.s. supreme court. for decades we could hear san francisco epa a lot broke the clean water act. salmon season closed the past two science. the float at the wharf -- thank you your time expired. there are no more callers. >> thank you. >> thank you. police call the next item >> item 5 is puc advisory committee 23/24 report to the commission. >> good afternoon employment to provide you a brief over view of our committee and the work we

did during 23/24. we are a benefitted 17 members. representing each district. as well as 3 representatives appointed by the board president and 3 by the mayor. the folk one of them on this committee since inception for 20 years as well as a variety of community members and expert in fields. construction and project management. these are wonderful experts and engaged people who i hope you will engage with. and rely on. i want to thank the chair during the last fiscal year. jennifer clairey and our vice chair eli. two things i did want to elevate

that were really major issues for the cac affordability in public comments. we understands there is a policy we are rung close and wanted you to be we are mindful of president's race. they let us know. we [inaudible]. be supportive of you in the decisions you are making and mindful of the affordability. another thing is equity. treasure island and we understand the complexities of treasure island, i think if residence upon dentses on the peninsula experience that level of service they would be appalled. i think that the residents of treasure island is something we

need to work it for their benefit. other than that, i think the -- yea. president stacy was able to come to meet the committee. invite others will come meet the committee. a way to get ton our members and engage on the topics they care about. lastly, i have been a member. this committee for 7 years and 2 years at chair of the power committee. i let my members knowil step down from this role i joined the administration with mayor lurie. i want to invite to you go to meet the community members at our meetings and rely on them as a source of information and happy to take questions.

>> i wanted say the out set, thank you for your years of service and good luck in your next position. and thank you also to the entire committee. it is an impressive group of people. where expertise and advocacy for various issues an interesting meeting i had 2 years ago now. it is a great commit each thank you for the hard work to you and the members. commissioners, questions or comments? of >> commissioner arce. >> thank you. >> all your years of work at the cac and for representing the group in the collective so well. thank you for the report. it was great to seat priority topics. of you and your committee colleagues. congratulations to you on your

new re lurie's liaison. hopefully we am be able to continue that relationship with you and the exciting new role. lastly, i wanted to commit to plan to be at the next cac meeting next tuesday january 21, 5:30 at 525 golden gate. >> thank you very much, appreciate that. >> thank you all. >> thank you. do we have public comment? >> hello. board members. i'm jodi i live in d5. i am on the cac. i was ash pointed by the mayor to represent engineering and finance. i retired and the direct of infrastructure and utilities at

ucsf now helping out at public works. i specific lowmented to talk about the treasure i lands and yerba buena power issue. a year ago in february of 2023, the cac did publish a resolution on the item. and in that resolution, we -- talk the fact that treasure island and yerba buena have 18 outages a year totalling 4-5 years each sometimes more than that. that rate is 4 times higher than san francisco. and as moses said, if other if regular san francisco residents had this type of outage you would be all in flames so to speak. exist be residents in treasure island and yerba buena more than 60% are low income. and that area also ranks the

highest disadvantaged communities. the people that are need our help the most are being hurt the most. everyone in san francisco is entitleed safe and reliable power. tida, you know is the treasure island development authority, has the authority and responsibility to take care of that power. they have no oversight. there is literally no agency this is put in charge of make sure they do their job. and they have failed to do their j.w. and absolutely failed. to provide safe and reliable electric power. currently, sfpuc and tida building new power. >> time expired. >> i'm sorry. your time is up. thank you for your comments. was there something you wanted add that is specific in nature?

i know the committee is long interested in treasure i lands it has been a complicated and difficult situation with respect to infrastructure. and we have your resolution in our packets temperature has not changed in almost two years i have been there. and even being the engineer and doing analysis to figure out what faild and why so we can start fixing things. i want to say is a 15 million

dollars budget tida has for existing customers we need ton what it is being spent on. we're the noasking near money we are asking for action. >> thank you. >> other members present who wish to comment on this item? moderator are there callers with hands raised? >> throw callers. >> thank you. caller, you have two minutes. dave warny i wanted say the same as president stacy said. cac a t discussion, deliberationos how to exhibit valuable and want to say i sure appreciate their service. thank you. thank you.

caller. thank you peter again tuolumne river trust. i attentive a number of cac meetings and agree it is a talented group want to add an exceptional chair and will be missed. i'm glad he will work with the mayor who will need his talented. i really like the fact that commissioners attends the meetings. it is a great opportunity to get ton the team. and to talk more on issues. i appreciate commissioner stays i have not done had before and i look forward to other coing that experience. and i want to say i think the priorities for the cac this year are really right on. and i look forward to participating in more meetings. thank you. thank you for sharing your comments. caller, you have two minutes.

>> yes. [inaudible] is t public comment period? >> no this is the comment period for the puc citizen's advisory committee. >> dimiss the public comment. >> yes. >> okay. my apologies. thank you very much for all your work. >> thank you. thank you. ms. lennear there are no more callers. >> thank you very much for the report. and all of the work of the cac. appreciate it. >> i wanted reiterate. join commissioner arce in want to engage and i'm entered in the resolution for tida and want to work with you to advance. >> thank you.

read the next item >> item 6 report of general manager. thank you, service a is interim financing program. good afternoon. capitol finance director. my team and i help our to deliver financing of the projects you deliver at the lowest possible cost. there are ways we do that part is that we use low cost tax exempt financing. we use low cost federal and state loans. but an important piece is our interim funding program. and bring update slide deck, please. >> and next month the february 11th meeting we'll come back

to -- for approval for 5 credit facilities totalling 550 million dollars. and we're asked to provide you with a briefing today. to help infurthermore you about this program. so have you that background and in anticipation of that meeting. >> so we will give you an over view of the program, why we are expanding the program and then be back next month. this program has been in place for a number of years. our predecessors developed it as a way of lowering the cost of finance being capitol projectses at the puc. typically municipality would approve a project, issue bonds, draw down the bronlds and we pay them over 30 years. what we do at the puc is because you approve projects and those

go on control are release. we can release those based on the fact we have identified credit facilities this is a more efficient way than issuing bonds and incuring costs for 30 years it release the funds. and then when we need cash to pay for projects, rather than issuing a large bond financialsing we issue smaller amount it is of commercial paper in the market and then when we exhausted our capacity for those facilities we can refinance it with long-term bonds and look in rates. on the next page, you see goes 2 primary benefits. one other able to release funds from controller's release, efficient low. and then the low barre borrowing cost for interim financing. i want to associate some numbers with this.

our facilities we have one example. one facility it is 29 base i points that is 0.29%. we use facilities like that all around 30 basis points, to release funds rather than bor oath. when we need the funds we issue commercial paper and you can see that the commercial paper is the combination of fees and and interest costs. that's in the low 3%. and the long-term financing is closetory 4%. all low are than long-term forecast of 6%. that's how we use this program. >> commissioners, stacy you

seen in the past in our presentations and other [inaudible] the commissioners will see a presentation for bonds that were in an unusual interest rate environment study. normally the longer you borrow the high other interest rate costs. because of the and feds actions and raising rates we had an inverted yield curve am you see historically with the blue line short term interest rates. the orange line being one term interest rates these are 2 different ones. over time shorter term financing is typically low are comp so we have that advantage by using our commercial paper program. for each three enterprises, we have separate inter~im funding programs. for our wastewater program, this will be the most borrowing in

the future. we have 750 million of existing facilities you see we use a combination of banks. we use a combination of facility types so we are not too department on a part of the market place and we constantly role these. you will see us each year rolling different facilities. typically the facilities have the optimal pricing at throw or 5 years. so we will constantly be renewing those. you can see, we have about 500 million of unutilized authority. that i will talk about in a moment. for water, same situation. we have 500 million of facilities. beg your pardon 250 million of new authority and then for

power, a small are program of about 250 million with 200 million new authority. so last september we came to the commission to seek approval for expanding this program. over time, our capitol program has grown larger. and we can save more money by having a larger interim funding program to correspond with this. this will be the largest increases that is for a specific reason. rather than each enterprise going to the board of supervisors separately. we came to you with all 3 enterprises not going to use all of this capacity. een upon in february when we come back to you. we will be able to do that now more efficiently and each time

come back to just the commission now based on the approval that you aprudent personed. we went to the board of supervisors the board of supervisors unanimously approved the expansion of our program by 950 million. the mayor signd that and that became effective on december 25th. our christmas gift. over time issuing new bonds new moncompetence refinancing. we are active each time we go to the marketplace in identifying opportunity to refinance for low are costs. this activity is part of the plan that we out lined the beginning of the year to expand those facilities. so now this the commission initial low approved the expansion or supervisors in the mayor have both approved it; we will be coming back to you.

in february. with 5. based on that approval we are rfped two banks. got strong response. and have been negotiating the documents since then. and getting ratings and will come back with those 5 credit packages in february. we wanted to you have this background in anticipation of what will be a full agenda. i'm happy to answer questions. thank you. commissioners, questions or comments? >> on the documents that will look at for the next presentation that will be the actual, how much in advance will we get those to study and be able to ask questions for clarification prior to our

meeting? >> sergeant, if you would like --in advance we would be happy to do this. but it would be per of your normal agenda package. >> thank you >> commissioner, we are happy to schedule briefings before hand. >> thank you very much. and then looking at the commercial paper for clier clarification issuance for 1 is this the normal time period for the commercial paper usually? >> it is a good question, commissioner. commercial paper is a very fleckable instrument. allows us to issue notes for up to 270 days. and so, what we'll do on going basis is as our enterprised need funding. we will go to the marketplace

and might issue 60 million dollars of commercial paper. and in and we have what are municipal advisors. those are financial advisors. specialize in advising municipalities. and help us determining what the optimal trend is for example. the >> volatile period. >> will probably go back. we are adjusting that. typical terms will be 30, 60, mind in the current market because of the yield. get better rates. >> thank you. and then just it sounds like we -- going to be amount what we

anticipate and then potentially cushion that we need to get through. trying to do using credit facilities to release controllers reserves. and not issuing bonds prematurely. >> thank you very much. >> so. no finance -- excuse people this is like a short term credit that will be paid by the bond. funding raised t. is, i'm surprised hear short term rates are cheaper than bond rates. -- >> in the current market, it is not necessary low the case. right? because of this inverted yield

curve am shorter rates are higher relative to long rates than they normally are. in a normal period, shorter rates it is -- think television a bit like comparison between a mortgage and home equity line. bonds would be the mortgage the 30 year financing. and this would be like our home equity line. >> thank you. >> thank you. and thank you for all of the education and the last few years. it is helpful and i appreciate this presentation. in add vance of what is coming in february. if i can just check my math with you the puc is now authorized to issue 2.45 billion dollars in short term financing? and -- general low we allocated that to wastewater.

1.25 billion dollars dollars to water, 750 million dollars. and to power 450 million dollars. is that? >> that includes both the -- existing facilities and the -- authorize. >> right. >> and when we come back to you, in february. we will be coming back to you with water facilities and power facilities and not yet with wastewater. >> okay. >> thank you very much. >> thank you. commissioners. >> can we open public comments, please? >> raise your hand if you wish to provide comment on 6a? do we have members present who wish to comment on this item.

there are no callers. >> thank you. >> thank you. could you are theed next item. >> item 6b support general manager that concludes my report. >> thank you. next item. item 7 consent a-d. comments or questions on consent calendar? no. >> commissioner. on a, just -- a question that guess back to the staffing. is this when we have the engine ears and support services we are

going outside to bring in to help on say this project here with the dam. is that a way of being able to keep our costs down internal low for employees or and able to use outside resources that are specifically knowledgeable of the specific events or projects that are going on? zoo is there staff who can answer and speak to this issue? and thank you manager ever contracts department. of which i'm sure he would provide an eloquent response and

can circle back with you, commissioner there are reasons why we engage in staff augmentation contracts often doing with the specialist work and supplementing current staff and includes hand off and training of current staff as well on the specifics engineering of the project. >> thank you very much. >> thank you. public comment on the consent calendar? >> remote callers raise your hand if you wish to comment on this item. do we have members present to provide comment. approach the podium. >> jason foster. an extension of the earlier discussion related the performance audit going through these, a, we had a 5 huh

human,000 a year now the next 18 months we'll average a million dollars a year for positioned common surface. on item c, it is interesting that not to exceed means not to exceed 150% of the contract. that is surprising and -- not evident in the language it is used in this forum. and then for item d, there is no physical significance difference in the scoring of the throw of vend are respondents around the qualifications. yet we will enter in an 8 million dollars contrack and the explanation of why a vendor was chosen is in the there. the cost structure is performance criteria are also not there. on this project. may be there is somewhere else. they are not available in the links and in the materials

provided for me. so, i don't think all this can be fixed but these are examples where a better supported staff that has more band width to address and comment on performance related prosurement and contracts, account enable better decision make and more transparency and when we expect to get out of them. thanks. >> thank you. moderator? are there callers? no call are that wish to be recognized. thank you. >> thank you. >> commissioners could i have a motion and a second. on the consent calendar? motion to approve. >> thank you, roll call, please. >> president stacy >> aye un >> vice president arce >> aye >> commissioner jamdar. >> aye >> commissioner leveroni.

>> aye >> item 8 approve terms and conscience and authorize the general manager execute 1 to the radio communication site lease >> good afternoon will commissioners. president stays and he general manager josh for real estate service. unfortunately this is a timely amendment given everything happening down south. what this is lodgistally implementing in a previously approved commission and board lease. originally in 2005 the city puc throughout city entered in a radio communication lease at a location in alameda rural alameda county. this lease upon expiration negotiated 25 year lease cumulative with all options

approved in 2015. we have this remaining agreement through 2040. and the original agreement contemplated expansion to address upgrading equipment and technology needs going forward. that's had this does allows the expansion of premesis to so the puc install and maintain equipment in the equipment shelter and radio tower itself. that's not a traditional real estate deal tell is a lease temperature is a vertical tower itself. what the amount alison radio communing site is it is part of the status system the puc supervisor control and data acquisition system for water and power across the san joaquin valley. it provides the voice radio communication capable for puc watershed staff critical with fires, search and rescue and other emergency in watershed.

this site from the it and the security team is invaluable to do the location the site lines and the coverage requirements it is able to satisfy. the technical components will be increase of the rent from 5700 per mont to over 9 thousand dollars a month. the reason that this is going forward to the commission and later the board, expansion was contemplate exclude required revisiting approvals if the amount increased over by 20%. we are increasing the rents by 59%. the amounts were justified by puc radio communication staff looking at needs. additionally, puc will assume responsibility for electric utilities. gas will be continued to be provided by the land lord itself. the ceqa sides was exempt from

which environmental and as i indicated the next steps are implied upon approval by the commission weeds seek prompt board approval. and in the quote from the radio manager communication's manager, the legacy voice radio communication side is unreliable and requires upgrading a matter of public safety. and basically this project is waiting to go. the equipment not procured we need this site expanded allow that to happen. that's the plan. moving quickly in spring to implement the project if approved. i'm here for questions you might have about the lease. i got representatives from it team to talk about technical details of the equipment. >> thank you. commissioners issue comments or questions? commissioner arce. >> thanks, josh, for the presentation.

and it does seem that time is of the esancy looking forward it hear public comment i'm ready to support this and move it forward. >> commissioner leveroni. >> i don't think i heard i might have missed the amount of square footage increase is approximately? >> we don't they don't treat like more adon't a data center you rent racks of space and it is vertical space along the tower its is proportionate the amount of equipment add and replace is proportionate to when we have now. you can scale it 50% up there. it is not calculated on a square footage base i this is in regard to the space however it is calculated does not include the equipment or anything? >> the equipment is separate. that is its own project. is that is the it team reallies is leading the lease component.

the equipment is in the budget to be procured they will not buy it until we have the site. >> the it team looked at the space what they are racking and that's going to be enough for current needs as well as future needs? >> future needs may change it is contemplated we have authority to increase the space. that 20% threshold apply. we would do this as a technical amendment or under the general manager's authority. it is in the package itself. detailed the equip the locations and exhibits c of the lease of the amendment. the existing condition and shows the scale exhibit d all of the equipment spread out throughout radio tower itself. >> and a question to the it team. i was curious there is all back up to that back up meaning generation in case we lose our electricity. we will be able to operate?

>> i will turn that quick, i got allen lane the puc radio communication's manager. >> thank you. >> >> member of the commission is so in regards to the backup power for the site it is provided by the site owner. the nc communication they provide the generator and fuel costs for service. >> thank you very much. >> public comment, please. >> remote caller raise your hand for item 8. do we have members present who wish to comment on this item? moderator are there callers with hands raised? >> there are no callers. >> thank you.

>> commissioners could i have a motion and second it approve in item? >> move to approve. >> second. >> thank you. roll call, president stacy. >> aye >> vice president arce. >> aye >> commissioner jamdar >> aye >> commissioner leveroni. >> aye >> thank you. read the next am item >> item 9 publicy hearing fiscal year 25-26 budget priorities. >> good afternoon. commissioners i'm laura bush puc department cfo. i'm here to provide a short presentation about the upcoming budget process. the next year's budget of the and our priorities. this say public hearing required as part of the budget process under code 3.3 b 1.

and this is discussion only. so here is an over view of the time line and where we are at. puc two year fixed operating and capitol budgetful we are at the mid point in the two year cycle with 25/26 beginning july one being the second year. we also adopt a 10 year capitol plan and 10 year financial plannanualy. today we are having an o'riordanual meetoth budget priorities prior to the adoption of next year's budget the second year in the budget. >> february 11 i will be back the commission will adopt any update to the operating budget to which the preview are minimal changes and updates to the 10 year c ip to which there are minimal changes and no changes to next year's capitol budgetful department 10 year financial

plan incorporated that budget. beginning in spring of 25, coming up we will commence on next two year budget and c ip development process will be a full indepth process to put in place the next 10 year plan. so, since we're atid two year b make few updates i wanted provide information on how we developed the two year budget because with the exception of commissioner stacy we have a new commission. so this budget be new to you. so first of all i will say that the budget development process was intense as the process to develop our capitol plan the process over a year and xooem rigorous. we began in may of 2023 with staff development baseline review. assessments and budget proposal

formation. in the fall 2023, we held weekly steering committee meeting with thes executive team to lead the budget. go over options and recommendation to the general youring. in january 24, a year ago, held 4 special public meeting of the commission to go through each budget in the capitol plan in great detail prior to the commission adopting the 2 year budget and plan on february 13, 2024. in total i believe there was 12 hours of middle eastings about the budget this happen third degree time last year. after that we went throughout mayor and board process. and the final budget adopted last july. an update to the changes at the 24 meeting. just a reminder what was in that budget, on the operating side the current year approximately 2 billion dollars operating

budget. capitol is puc learningest driver 35% comprising 23% going toward debt service and 12 toward pay go funded capitol. distribution is next at 26%. and personnel and nonpersonnel costs that support daily operations at 14 and 19%. and reminder of the 11. 8 billion dollars 10 year plan adopted last year. it was halfway with major projects the completion of the. digestive facility, [inaudible] flood resilience and main repair and water major projects the yard improve ams to marin projects and replacement of water mains and empower this include public pure. clean steam and moccasin replacement. this is a hearing on priorities. here san over view of the priorities we establish in the

the developing the 2 year budget they have not changed since last year and as we go in the second year. we are making minimal changes to numbers adopted left year. throw priorities continue to be affordability, responsible management and investing where it matters. and urngd each i will give an example of how we address this through this budget we adopted affordable policy in november of 23 and continue to spend customer affordable in planning. put in place several tool and new process this is made and will continue to make our capitol planning effort more fortunate. we were award an award for excellence for capitol planning initiative by the government finance office association. this is a huge deal and we are proud of it. >> addressing requirements by plan for example projects like reduction net bay.

under taken a financial planning to ensure budget and c ip are sustainable includes making sure we exceed the metrics in the financial policies. on workforce a part of the budget related to staff and temp positions and continue to make headway on this. >> racial equity is a part of our budget process and strengthened the team up through the budget we will responsibly manage our system to increase investments min repair, cyber security and others. fating climate threats by plan for example projects to address the sea level rise and reduce carbon e missions we aim to be responsible stewards of environment around projects that contribute to a healingier region and you in trient's project is an example. c ip as youing victims to support the economic vitality. a plan that prioritizes the plan

of aging infrastructure. of and continuing the expansion of our systems necessary to ensure we meet new and existing customer danneds. the priorities have not changed as we go to second year of our two year budget. >> this is my last slide. . what are next steps the next time be a month at the february 11 regular meeting. at that meeting we'll asking you to adopt the following financial items. first, adopting changes to the 26 operating budgetary second year of the if i canned budget of these are minimal changes updating revenue and power purchase and minor changes on ecpend tours including capitol to optimize debt financing. we'll adopt update to the 10 year c ip. no changes to the 26 capitol budget and minimal changes since

the last version including cuts to projects. i wanted note a head's up the ci p will decrease from last year's plan. due to the shift in time frame from the last 10 year period to the next. and primarily completion of a large project within that window. >> lastly, adopt 10 year plan includes forecast and late prosecute jections for each. that concludes my presentation. thank you. >> thank you. commissioners? comments or questions? commissioner arce. >> thanks for the presentation and president stacy. i want to share a couple thoughts with you the general manager. kind of alignment and support for the priorities this you identified. and justment to call out a

couple items that for me are of interest between now and next meeting in the 4 different sessions you out lined. as the commission's advocate. obviously appreciate the first priority there being affordable. it was the priorities of the first in the out line from memory from when we set in the cac and presentation from there work it was i remember when preparing going through confirmation process. in the fall it is the first page i think we talked about it. having conversation with you and your team it was the first dwlm in the budget book. last year in the mayor's budget.

and i think in the third category which was the third category was the additional you might have it. the -- investing where it matters. i know we are don't have the same impact that the post economic recovery economic realities have on the city of san francisco and the city's general fund. don't impact the same as enterprise agency it goes in account when we think about that the economic environment looks like and potential need for upon savings. i want to when we have the conversations lend my support to program this is fit in with that investment where it matters. the programs that really have the benefit to rate payors in terms of getting work on puc

funded projects whether capitol or a chance to work with workforce development. partnership with economic workforce development lead to the puc having the highest out come with local hiring. and city and p uc area rate payor workers. combh we talked about i mentioned the interest in the way the agency has stood out in terms of cultivating opportunity for local contractors to become successful and the capacity to bid on work that we put out. hope that those investments can continue and would -- just articulate my sense the rate payor benefit programs while may be did not fit had other areas parallel to the more core investment the to me they are as

important because of this residual economic benefit they have. this ismented add as we had this conversation with you thank you. >> noted. >> thank you. dmrns other comments or questions in i also like commissioner arce really■f8 focd on slide 6. with the budget priorities and the affordability component. protect the system and keep it operating i know you talk the this internal principle you go through before you come to the commission. but this is -- sort of the eternal struggle of how to -- keep our system updated and meet the requirement and how to contribute in a positive way to ou environmental stewardship to

anticipate climate change alost unknowns. everything we do is paid by our rate payors. and it it is a really difficult balance. and i appreciate all the work this guess into this even in our last meet nothing december, mrs. miller was tuck burglar how capitol planning for the next big capitol budget or capitol projects change third degree we are looking harder at what can we repair and maintain further in the future before we under take the big capitol project this is it is an important part of -- controlling our capitol budget and the money this we have to put in to all of the capitol projects. congratulations on the awart that is impressive. i soo have seen improvements in the few years i have been on the commission. i think that the other tricky

balance is that as the utility this provides water, wastewater and power, we have to be somewhat reverse and need to manage really careful low -- to snail the affordability. don't want to take risks that are systems will fail or not adequate to the task. we also --ment to constabilityly e involve to address climate change and contribute in the positive way. the affects of climate change and being responsibility environmental steward its has to come back to the rate payors and this affordability component. so i really -- value and appreciate all of the w this guess into this. if i can ask you to expand for

our next two year budget kyle cycle a year from now, we are going to have at least 4 additional hearings in january. of 2026. to go over the budget and capitol plan and adopt both the two year budget president 10 year capitol plan at the statement hearing in february in 2026, is that right? >> yes the meeting and are not schedules typically throw full hearing in january to go in detail and make sure commissioners are briefed and have questions answered on the budget proposal and then the mid february meeting when the 2 year budget and 2 year capitol budget. 10 year capitol improve am and 10 year financial plan, 40 length documents. will be adopted official low by the commission before they go through the mir and board phases

of the budget of i would plan to be january of 2026. >> and for each we had big notebooks full of budget and project information. tremendous low helpful. in looking at the puc's future. it is a lot of work for us and more work for you all. and i really i appreciate it all of the information that you provided and the struggle that you must have gone through before getsing to the commission. >> that's right. this balance between prescriptional risk and financial risk and affordable is a responsibility this mow and my team take seriously. it is our job to strike is that balance correctly. >> thank you. commissioner arce? did you have something to add. >> yes, just my brain is still calibrating the 2025. looking back and seeing the 4

special meeting in january of 24 i hav to say, little relief resulting from the fact it is not coming up >> don't worry. i would like throughout the year i love to kind of really become more knowing how it all fits together. you know in terms of like our assumptions about long-term water usage and needs and long-term power procur fully acy independence and ability to not be subject to a lot of what the utility does with respect to get negligent way of things we did as an agency, about the ability to builted more of our local generation to have more assets that help us avoid the whims of the market and -- just the stuff

we than you know great work and the long-term vision in wastewater i would like to for my own knowledge throughout the year become more verse in the this. obviously deferring to the general manager and staff to where it goes before we see it. being ready for had knowing we have a year to plan. >> thank you. vice president arce. i mentioned, i think last meeting i plan on throughout the year planning some birth picture strategic days. talked about water supply this is being talked to water enterprise we will present you this in february at a february meeting. i appreciate that we do similar things throughout the year to have conversations about things that we do. >> i add to the february 11 meeting. that come with a report the 10

year financial report this will contain a lot of those things you are interested in hearing b. look forward to discussing in february. . >> thank you. any further meants or questions? >> can we take public comment on this. remote call are raise your hand for item 9. anyone present. approach the podium. >> are there callers? there is one caller. >> thank you. i have unmuted your line. thank you, i'm dave warn sorry for not saying happy new year and thank you for your service and great questions and comments and excited for the comments tht 10 year capitol plan you will

see in february 11 sounds like tell be lower than last year because of things you described. so my letter was the premise was wrong the 11.8 plan mention stead slides was last year's figure not this year. my apol gees wait and see what will be february 11. of it is concerning asked to approve the plan the same dates. other pinlt to my letter apply regarding the puc a significant financial risk. at least the water enter prize the issue remince spending growth from the 10 year capitol plan and dent service exceeds projected water sales brogue and demand come drives up rates. affordability, because extend everspending exceeds rails and uncertainty of demand ask for low are demand in housing growth in financial prosecute incitement of insurrection jections for affordability for san francisco customers ask

wholesale water rates. this way we might be able to prepare ourselves to low are than planned sales materialize a significant possible. capitol spending should be tieed the demand of sale this is is starting with lower spending target. and higher sales materialize, additional education special could be authorize period. this would abllow you to better spend and line up with sales. we near difficult times and should be cautious on spending. consider learn about the san diego water authority's experiences to help us avoid their situation. thank you. thank you. there are no more callers. >> call the next item. >> item 10 adopt midstgation monor and reporting program approve project operations

engineering and maintenance bellings and authorize staff to prosecute seed with actions necessary to impelement the project. afternoon. i'm robert mall the project manager for prescription engineering and maintenance buildings project. i'm here to request your approval to adopt findings of environmental review and approve the authorize the project to [inaudible]. construction phase. i want to provide a background on the wastewater and the southeast treatment plant. wastewater operates and maintain substations pump stations transfer and storage facilities.

this chart structure -- as well as across 8 urban watersheds 1900 miles of pipes. southeast treatment plant is one facility. constructed in 19 pooch and sewage and storm water flows. our project located went southeast campus. at the corn of of gerold and [inaudible]. looks to replace building 850 and the two trailers building 858 and 850d. the challenges for this project is this the existing buildings are now end of service life with obsolete equipment caution constant repairs.

exacerbating strain on staff. the facilities lack space to provide walk area for staff result nothing scattering of staff to remote work cites. lack of maintenance space to allow our staff to maintain equipment is part of the reason why increaseingly efficiency. and these buildings are somewhat older. the amenities existing there are in need of much updates. address our challenges, we are propose to build the two new buildings. building on the left the 14 and the other is 603. [inaudible] of existing building layout versus the future building. on the left existing. on the right you will see the two buildings surrounded by

updated amenities for landscaping and delineation of. pedestrian movement. with the construction 60 throw and 914 we will provide work space office for engineers and also dliniated shop areas for plumber, carpenter and paint shops will provide large are maintenance space to maintain equips. we'll able to consaulidate eliminate remote cites. . providing improvement on safety. the new equipments will reduce the strain on operations. the wellness center promote additional amenities for staff. we do so by utilizing sustainability am design. design perspect you have looked

at cheaper objectives. looked at maternity and safety efficiency. functionality. and we also factor in sustainability. we look to capture max light going in. and preserving the privacy of wellness facilities electric are rooms and showers that are going to be updated for our prescription and maintenance staff. the building designed with efficiency and funk everfunctionality open work space collaborations and shared space with staff boulevarding and the floor plans design adoptable for the future growth and evolving need. of in terms of sussane ability it utilize green design approach. also utilizing a timber design approach will timber design does is help us reduce the carbon

footprintful being a tree plant based project timber will help us with carbon storage. the tree ash sorb the carbon the carbon storage guess with that. it reduce the e mission and displacements compared to concrete manufacturing of the materials. during constructions, the remember timber structures with be construct federal a fast exert quieter manner. with the- design team, the design is lead by the public works. bureau of architecture and with the completion when it is completed it will be the first miscellaneous timber and implemented by public agency in san francisco. in addition to the team public

works team will with staff with feed become how to layout the bell and dwoment maximize the functional use of the building. public works have their consultants providing support on subsystems like it, av and security. and when we go in construction, we'll be working with our general contractor group. in terms of project mile stones wore going throughout design phase. with your permission would like to start the construction phase and plan to finish the project in early 2028. in terms of environmental study we conduct a review on december 20 of 2024 planning review and approved our viernltal findings. the teams that have supported us through the press is the pu c environmental manage p.m. and sf

planning and their our consultant environmental science association. i thank you for your time. >> thank you. >> commissioners comments or questions. commissioner arce. >> quick question, thank you for the presentation and du mention this facility will report upon the team or agm or both? i'm sorry i did not catch. >> is this site is it specific low to supporting the wastewater team or water team or combination? the wastewater treatment plan team. commissioner jamdar. >> this is already part of the budget. >> yes. >> you clearly done all design this is an prove to proceed with construction? >> yes, ma'am.

>> thank its is excite to seat mass timber project construction approach. i. also think this is an example of some up front costs and long-term savings you mentioned both for our employees efficiency for lost twiem repairs and maintenance this hopefully the buildings will result in long-term saving its is a significant cost up front. i had a question -- i want to make sure i understood. thats going on. on your slide 6, on the left side you show throw buildingses 850a, 850b and 850 they'll be demod and replaced with this design that is on the right side? >> correct. >> okay. grak.

great. thank you. call public comment. >> remote callers raise your hands for item 10. anyone present whop wish to comment of please prop the podium. >> can mod air are there callers? there are callers in the queue. >> thank you. >> thank you. commissioners could i have a motion and second on item 11? move we approve the item >> second >> item 10. >> i jumped ahead >> could we have a roll call >> president stacy. >> aye >> vice president arce. >> aye >> commissioner jamdar. >> aye >> commissioner leveroni. >> aye. >> thank you. read the next item. approve modification to contact hh-100r mountain tunnel

improvement project. >> thank you. good afternoon will commissioners i'm randleyand are son the project energy mountain tunnel project. and today i'm here to request two approval for construction hh100r. the first approval to modify the contract remove scope of work and reduce the contract amount by 15. 27 million. the second requesting is approval is to increase the construction cost 13. 09 million due to changes above the approved existing construction contingency amount. after the scope reduction and addition of construction contingancet total cost limit for the condition transact will be rused by 2. 7 million.

both will be discussed in detail. to give an over view of the water system. this is the hetch hetchy water system showing the location of the mountain tunnel in red. the mountain tunnel is a nonredundant component of the system conveys water to 2.8 million residents over 4 counties the it generates i billion kilowatt hours of clean hydro power annually. mountain tunnel is a handled years old. present loam rehabbed under construction contract. with the objective achieving another 100 years of service. construction contract had a notice to proceed in january of 21. and a final completion for 2026 this . is the 6 year construction contract with 5

winter shutdowns. and we are present low in shut down number 4. work is 65% complete we have a few challenges that developed on the contract that require remufring some scope of work with remove w to be complete in the a future contract or contracts. >> this slide is showing the project scope of work the over all project scope and the scope of work to be removed with the deducted change order through article 6. scope of w to be removed is the extension the south roadway improve am. remain roadway improvements to the added and 89 access royce. invert paving in the tunnel and minor roadway improvements. this removed work accounts 11% of the award amount of 138.9

million. il discuss more why i'm recommending removeing in the following slides. >> south work shaft extension the most complicated construction of the entire project. it involved constructing a 1 huh human foot deem shaft and sen 50 bypass tunnel that bypasses a weak zoevent tunnel shown as area for improve am on the slide. and ties in the mountain tunnel with incline shaft. construction takes place the b. south fork access rod in a narrow mountain george between a vertical rock cliff and the south work of the tuolumne river. the tie in of the incline shaft of tunnel can take place during a shut down during the winter of which this location is prone to snow, ice and flooding. and late 2021 during

installation of the rock stableation of the vertical rock cliff you see to the left side of the brown shaft location. a large rock slab fell creating a near miss after the contractor claim third degree location of the shafs was an unsafe location and could not protect the workers for ridiculous fall. they alleged differing site continuous of slopes this needed to be stabilized the contractor stopped all work after of the near miss rock fall and no work taken place sinceful project staff spent two years with the contractor attempting to resolve the occurrence so they could continue work. this collaboration include and risk mitigation workshops and studying alternative sdpien. since a residence lugdz could not be achieved, it was determine third degree removing

a scope of work was in the best interest and completing it in a future contract. >> this slide is showing the constructability challenges encountered on slide 6 and 8-9. access roads to get down to the event rew point was tunnel. upon worn of the main objectives of the roadway improvements to widen them to 12 feet for maintenance and construction to achieve the wide are roadways walls need to be constructed on the outside edge of the roads. the side with the steep down slopes. 2 pictures on the left side of the slide show the narrow roadway with rock boulders and out croppings the walls need to be place immediate. to construct the walls theicide slope excavated to protect workers in this excavation and encroach in access roads.

in addition, the rock boulders and out croppings need to be removed for the place am of the walls. which was not anticipated in the contract documents nor the removal of the existing roadways. with thes roadways removed it would be difficult to contraktsdor to get access in the building the wallers 15 feet high. roadways are 10 feet wide. 15 feet down we go go 15 feet over encroach negligent 1 huh human year old access roads with rock out croppings under. thepicture on the right shops the excavation a hetch hetchy project after a winner storm. you see the required excavation and bottom width you need. of the picture on the right shows when a walled looks is a rock from filled wire basket placed to go on the outside

edges of the roads and widen the roads. it was decide the wall removing the wall system not feasibility without significant redesign. best intft project to remove the scope and reevaluate the over all strategy to widen with the roads and familiar necessary complete in work in a future contract. >> this slide shoes the contract spoke to be remove and theed dollar value of each total scope removal inotropics to 15 million dollars. this proposed contract amount consists of the original award plus the change order and minus the requested modification. this revised contract amount of 132 million dollars is about 6 million les that original contract

i would like now to discuss the need to increase the cost contingency. 5 issues kaugdz the need to increase the cost contingency of the 5, two of them the tunnel lining repair and the new added lining account for 80% of the requested contingency increase. the repair of the concrete lining taking place now in shut down 4 is key of the tunnel rehab. the concrete line suggest 11 miles 19 mile long tunnel. aim of the tunnel defects discoverd and being repaired during the work has increased from the contract by a factor of three. we are repairing more concrete work than paymented which is good. the increase is due to unsound concrete identified in the contract became large and deer

than anticipated. witness they remutualed the section it kept going like a decay and kept grow nothing our size of the removal. new areas of concrete were discovered. the concrete line suggestto com all of it this shut down >> this shoes the nftdz new am prestata a thousand foot long tunnel new access point■ in the mountain tunnel. thunder contract and the moccasin microfitation u night used to treat the water before going in moccasin camp. it was determined arch the excavation and installation of waterproofing membrane the orange membrane that -- we needed to utilize reenforced lining instead of a sprayed

lining the sdril and blast require in the the rock created waveiness in the waterproofing mem bavenl determined the spray lining presented and safety risks during construction and would be difficult to adhere to the waterproofing mem blain a lining poured with use. steal forms. this shoes the original cost. contingancet change orders and remaining the recommend additional cost over 13 million for resunrised cost lim of 150.73 million them is 2. 7 less. i will be happy to take questions. i ran up my lim of my time. [laughter]. thank you. a lot of information. >> yes. it is. >> commissioners comments or questions? >> commissioner arce.

no. just thank you. >> >> yea. >> question on so -- we will rebe removing the 15 million? >> yea >> it sounds like this might have to come back or a portion come back later on to do this work that is removing? >> and is there an anticipation on when that could occur >> come become? >> we have shedding and because of the,s brought up in the area, we worked with collaborated with cab and other partners to issue a request for information from the construction industry. to -- look at our original design and we also studies different design concepts and

got their feedback to see if the originaling design was. still valid. and we feel the original design is valid but need early collaboration with the contractor before going back out with this. we are looking at an alternative delivery contract to finish the work. we have one more shut down. plan to get a contract issued procured and then we'll really need a break from the mountain tunnel shut down especially for the sunol valley shut down.

the safety issue was this similar or, when i came on the one contract we increased by 35%, is this a similar situation or is it part of that contract? i thought it had something to do -- >> you may not. >> not familiar with this other contract. >> okay >> this issue is basically rock fall and access to get equipment down in this narrow george with the river on one side and vertical walls on the other side. and did not feel they could do it. it was unsafer for contractor they felt >> my confusion, i think it replies cost lim 150 million plus? and i'm looking at the contract amount for the first part, which is 1-133 million.

am i missing something? >> can you pull up the slides again? and it -- go back. i gotta do it. the original is 1let.9 million. we got change orders that have been administered 9 point 6 minute new contract value. now we're deduct the scope from that new revised contract. original plus change orders is where we are now. - the scope reduction. >> okay. and the one point in time the total 152? >> that would have been my

total not to exceed with the original plus contingency will 13. 9. >> last question men not relevant, in widening the road, is there any benefit to cal fire and to other agency for firefighting up in this region because of this road now being more secure? >> well, i know it is min low a road used by hetch hetchy toarc sesz the tunnels. i can't say for future soour if cal fire i would imagine if they needed to they would use those roads. but -- >> this is just -- >> commissioner arce. >> i was going to say thanks. i was going to say to commissioner leveroni, i look back at that item you had mentioned the mountain tunnel,

item. which was pro. 0096. modification and increase quantity of inspection service due to multiple site locations around that same corridor the 19 mines. extend wing hours. and increase construction environmental compliance service due to winter storms and water treatment plants and construction water from moccasin camp sxf additional construction management and admin cost sns >> associated with negotiation removement of the work from the contract. >> thank you very much. >> thank you i wanted make sure they oonldz the math. we're take out and adding 13 million dollars to the contingency amounts.

for modifications 1-16 did this money come oust contingency? portion of contract something >> yes. >> we are replacing that money and awfuls anticipating these additional costs that we will need the 13 million dollars for out of contract contingency. >> >> i know -- we are increasing the contract contingance tow deal with the costs we have. our new contract value gets reset because we pulled up that contingency money to our contract. so it is -- contract reduction and contingency increase. >> and i had one more question. can you tell me what is -- what s going to happen at this

second. >> site. >> what is this work? >> well is a shaft there that was used during the original construction of mountain tunnel in the early 1900's. and the contractor had planned that he would use that shaft to put down his grew line. we are always grewing the inside of the lining. he is not going to use that shaft. we don't need to do minor 16 thousand dollars worth of roadway improve ams. >> got it. thank you. >> i think i toured 4 years ago to the and also the -- south fork siphon extension, it is -- quite the roadway is narrow. >> yes >> and felt pear perilous even in our truck and accessing that

i don't know if i'm using the right words the siphon site. >> that's were -- walked down and locked. theyville to do thousands of trips to get the rock from excavation to the top. we need to work with the contractor, look at methods and then work with our design team and design the roadway improvements that fit fist the means. >> yea. >> makes sense. >> thank you. if there are no further comments or questions, call for public comment. remote callers raise your hand for item 11. do we have members present to comment. please approach the podium >> hi, thank you. >> jason foster. it looks when you look at this

we're going from 1 threat to 150. and we are saying gosh we miss estimated tunnel lining repair and gosh, did not realize the can yons around the tuolumne purpose steep and rock and hard. and so on. and it does not make sense we'll desdhoep work and then position this as a savings and come ask for more for scheduled work related the tunnel lining and so on. so -- it is this is when frustrates rate payors and frustrates normal citizens you are tellingly me you did in the realize it was difficult to bodies in the tuolumne river can yen after all this time ump didn't properly estimate the w that was scoped and now here is more moncompetence we will take come out. but well is no way you will go

without repairing the grove am no way. that the w this is descoped will being left undone. does not make sense to play the game in this manner building costs -- without holding accountable the people we contracted to dot work. it says here we decided to change the solutioner started. and that costs more. and now we will come for more money temperature is concerning this this practice continues. thank you. are there are callers? no caller in the queue. >> thank you. >> thank you. commissioners could i have a motion and i second on this modification? >> president stacy >> just before we do i did want

to comment this i think that obviously especially the new are commissioners woo are seeing the contracts coming before us and requests for modification. we heard from mr. foster about a coe raised. i do want top say i feel in many ways the perjuries of deferring to the staff decisions in terms of the process process and conversation that is happening between the contractor and our teams and folks we hire this lead to the point of bringing before us. i do feel -- that it it is important for yous to defer to the expertise of staff. these come before us and i'm very comfortable to approve this when we have the motion and second to approve it. but obviously i do think we do keep an eye toward long-term

impajtd pact on afford abltd in terms of awful victims that is in my minds i was saying something about us learning how it piece together in turning to what end of the day the rates for our san francisco and rate payor customers. and move approval. a second? >> second. roll call. president stacy > aye >> aye >> commissioner jamdar. >> aye >> commissioner leveroni. >> aye. >> item passes. >> next item >> approve increases of 2 million to the cost and 205 dice duration for contract h heart

attack-1012 with sierra mountain construction incorporated. >> good afternoon president. commissioners. i'm jimmy long a practical manager for [inaudible]. i'm here to request your approval to increase the cost contingance sdpe duration for hh1012 phase 2 abring the cost limit to 8 million 462,000, 200 and duration limit tom 668 calendar days approximately a year and 10 months. [inaudible] hetch hetchy water to the san franccarea. this pipeline ranging from 12 to 92 years old.

require regular inspections maintenance and repairs. of identified that some in the system may be under rated for such pressure frult closures at tesla treatment facility. to address this puc neighborhood the project to upgrade the pressure rating. instul removeable piece. build an open end shot at tesla portal to enhance safety for pipeline isolation and personnelent row. >> project is divideed 6 phases. but in 5 construction contracts. 4 of the contracts have been issued. 3 is still on going. one has been completed. the last and largest contract h

heart attack 1016, for phase 2b and c was advertised in the november last year. with bid duce or the first january 16. contract hh1012 phase 2 athe one this agenda item. includes crossover and [inaudible] throw [inaudible] locations. i'm requesting the contingency increases to be purchase [inaudible] required for the two phase 2 under hh1016 during th 2025/26 system outage include the last upon hundred day shut down. sharting in december and this year. the purchasing is critical as

the lead time for this is over 10 months. and the delays will prevent the contractor from completing the work during this outage time. >> missing window would increase costs, delay safety improve properties and sdprupt work. if approved this action ensures we stay o schedule and addressing the necessary safety upgrades. i plan to return in a couple months to seek approval for the award of contract hh1016. thank you for your time. i'mappy to answer questions. >> thank you. commissioners any questions or comments? >> i wanted say thank you for claire foiling i got lost in the detail when i reviewed my packet >> and trying to connect the

dots. i appreciate your clarification and consent item 7b are phase -- throw of this work and this involved phase 2a and purchasing something under the 2a contract that will be used by whom ever implements phase 2b. >> correct. >> it is all the project budget. >> yes >> and all the costs allocated among the different phases. >> correct. >> okay. thank you. >> could i ask you a general question when you divide a project to two phase bunkham i'm sure there are reasons for every project and i remember ms. miller told that yous part of the reason for the break down of one project in many contracts is so that the puc does in the

price itself out of a competitive market p. i would guess it is because there are different work and different expert ease for the different phases? is that what is at work with this project in the different phases. >> this is a bit differentful we planning this on the operation requirements. so they are 4s. possible low 4. weave strategize we will tackle the 2 [inaudible] at [inaudible] tesla location. so that the subsequent work can be done with the isolation of individual pipeline. won't don't need to treat the entire system. and upon then the am phase 2a and b is focusing on the crossover. there are throw location i talk

about. that -- with this -- phase approach. we actually not only reducing the time of draining the pipeline but ensure this we have auick are return to service when it is needed. >> make sense >> it makes sense. thank you for this explanation. thanks. >> commissioners no further comments can we take public comment. >> remote callers raise your hand, is there in the public present to speak? are there callers? there are no caller in the queue >> thank you. commissioners. being i have a motion and a second.

>> moved. >> second. >> thank you. roll call >> stacy. >> aye. arce. >> aye >> jamdar jofrm aye >> leveroni >> aye >> read the next item. >> approve contract number swon 20 sunol valley water treatment plant with smith incorporated. good afternoon am prescribe. manager for progress manager bureau here to request approval of amendment one the contract 40120 engineering for the sunol water treatment plant project. this is a map of the water

system. this the sunom water pleasant is in sunol, cal camp a critical piece of the water system required to treat up to 160 million gallons i day of raw water from the san antonio reservoirs during an outage on hetch hetchy system. left 10 year the pleasant has not upon experienced more algae blooms. in november of 2019 commission award where are within 20 to smith for contract aim of 15 million dollars and contract do you recall egg of sick years of the service include planning, design and construction support on a rural water treatment facility remove taste and odor

from the supply. >> this table shoes the contract tasks, budget and modifications and contract amounts. plan and design phases have been completed. the task are for engineering services during construction on two and operation and maintenance services on the project. we are asking for a toll of 9.6 million dollars and 4 year contract with two years for extend plan and design files and two for increase in construction and close out duration. >> your is an aspect required? the project scopeful cost and schedule increased during the plan and design phase. it was increased engineering service during construction.

fully support the construction contract. added engineering service during construction and close out to support construction of a utility water and fire suppression pump station under an upcoming contract. finally added services and support of operations and maintenance staff to facility the successful turnover and prescription and maintenance of the facility after construction. >> the ma'am will allow for continued support of the construction contract. which was awarded to contractor jfk construction in may of 24 for amount of 234. 7 million dollars. construction is under way. the ma'am will partial low

support contract wd2909, sunol water treatment plant short term improvement project advertised in october of 2024 and issue bids are due later this week. we will return to the commission for the award of this contract. the over all scope for the condition transact wd2909 repair aging system at the plant. smith will provide engineering during construction for the utility water and fire suppression pump station added to the scope contract. will am the pump station will be constructed under the pump station will be constructed act contract 2897. these are images of the existing site and the proposed site

rendering. this is a closeup of the proposed site identifying the componen of the facility. this will be a congested site existing and new above ground facilities and complex web of new and under ground piping up to 8 feet in diameter linking the facility and existing lan. next steps seek approval for no, ma'am one to contract and if approved seek if the board of supervisors. and finally before openingum to questions here are photos of construction work at of the site. starting at the upper right, this is the projes site. the low are right is major

excavation work under way. the lower left is a photo of existing chemical facility remain and operational during construction. and potholing work under way to locate existing utilities. and the upper left is a photo of an existing 78 inch diameter pipeline crossing the site. thank you and happy to answer questions. >> thank you. commissioners, questions or comments? commissioner leveroni? >> look the the i believe wd2897, looks like that contract award was 234782? an estimate was thought it would come in 183? >> yes.

>> so then, and that was a resolution i'm to intercept 24 -- 0111. >> the resolution number. that for the award. for the award. >> yes. >> okay. that was awarded may 14 of 24. >> correct. >> okay. >> now i'm understanding that. and now look at pro0120, the current aim for what i'm looking at there was 15 million? >> correct. >> and looks like we -- added two items. and increased the -- ozonation from one. 8 to 7.7? and what did we what happened

there? was it just -- the original price was not taken in what was needed to bring ozone down? correct. the remember the time advertisement for the contract, the estimate was low are than that the construction contract was award for. joof that's time we had information at the time of taegz we had the information we had and based our estimateos that number. >> okay.

commissioner leveroni thank you for you're questions i appreciate your questions to try to sort through and your presentation and information have been helpful. i'm going to repeat some of what commissioner leveroni mentioned. 64 percent increase is big in the contract.k at the reasons f■

increase, it sounds like the estimate came in much higher on 2897 because the scope and the complexityy was greater. so that's the sen opinion sen million dollars increase. for smith. for the engineering support some did i understand that? >> the shale is the production contract and contract based on information they had and we there at the time in may, when we received bids did an evaporation of all the bids looks at market conditions and other projects of similar size and complexity. and theids were in line with when we able to find. so, and the based on -- the bid

found to be valid. now we are -- asking for next for support services to support this construction amount. work. >> and then for cd america smith add in the engineering assistance for the 2909 contract. that has gone out to bid. but -- you have not awardd that yet. you will retain cdm? >> yes. >> to help manage this and provide engineering and technical support for this as well. >> correct. for a portion of that contract. >> the utility and fire supprsi station scope will be under smith. >> okay. >> and you add in the operations and maintenance

related activities? >> correct. >> okay and the pump station work was originally -- the need for the pump station work arose under shale's work under upon 2897. but you moved 2909 not to delay the work going on now >> so the utility water pump station we're evaluated the existi system and was not we found it was in the capable. handing the load with the adifthz ozone facility. we had to upgrade that pump station. and we tasked cdm smith to the design for the pump station. we were not able to get the design for the pump station done prior to the advertisement of the rest the ozone contract.

. i think iot it. thank you very much. >> follow up. so the most of 10 million is to design not construction it is design of facility >> for the construction support of the design is complete exclude we are in construction now. we facility reconstructed now we need additional support services from the consultant. to 've to handle the area

construction. including [inaudible]. shea is doing construction and smith technical design support? correct. >> thank you. >> welcome. can we open public comment. caller raise your hand if you wish to comment on item 13. do we have anyone present to provide comment? if so, approach the podium. mod air are the any callers? there are no caller in the queue >> thank you. >> >> commissioners if there are no further comments can i have a

motion and second? for the amendment? >> move we approve. >> second. >> president stacy >> aye >> vice president arce jamdar >> aye >> commissioner leveroni. >> aye. >> passes. >> thank you very much. thank you for all the explanation. very helpful. >> thank you. >> being you read the next item >> item 14 communications. commissioners any comments or questions about the communications all right. call the next item. >> item■'■i 15 items neighborh by commissioners? >> commissioners, any items to

discuss or initiate? commissioner arce. >> thanks president stacy. two things i wanted share that are of interest to me for future conversations. one, something i just heard about within the past week from some sacramento folks i work watch this apparently -- well is talk of -- the potential follow

be up on a visit i made a couple years ago as the city official and wear iing prior hat i worked the city's director workforce development and two years ago visits hummingbird farm. for fks that may not know it is amazing resource. a partnership with our agency and [inaudible] communities based organization doing lots of work for decades in the community. and i got to see an amazing

facility. i wasid not realize it was there being a soccer parent. going off to the side and seeing the amazing plant life and herbs and local native species and also classes and events a real great resource with the workforce development bring nothing youth to learn urban farming and gardening. had a chance toatch up with the sdpeem terms of making my rouns and talking to partners. and the folks were telling me abouteen bigger plans to help cultivate wet left lane restoration this begun there and folks, it is situated in excelsior there in when we seat map and it is new are commissioners done the on board when is we seat natural wastewater flow its is like as i was listening i was thinking

about to our] meeting with the wastewater team, and seeing how the potential for this big vision hummingbird farms part of natural run off and relieving the pressure we know gets on our combined sewer system that was a great big idea. i would be in short and summary be interested to do our future plans for hummingbird farm and that partnership in terms of hopefully and smith would support realizing the vision of not just all the greigs great work there now but build out like a way. natural adepartmentcasion to the watershed. >> thank you. i --mented say happy new year

the beginning of the hearing 2025 is shaping up to be a crazy year. my heart guess out to los gele we have been watching the terrible fires and the damage were and the loss of homes and schools and libraries and there must be terrible dodge their infrastructure. whether squatter, wastewater. i don't know if any of the los angeles utility districts have roached out to other districts yet. quill hope tht puc will be may be has been helpful in the next repair and the begins. to the extent we can lented our expert ease or any assistance. within our framework. i think -- that would be a

really important role for the pu to play. i don't know if you have already reached out to people in l.a. or if there is anything the puc can do at this point. it has been terrible to watch. and very heart wrenching. we have a close working relationship with the utility there is but have not been in this time actively fighting fires trying to communicate with them on what is going on. we are in a lot of organizations with dmem share that. we have not incerted ourselves in the crisis where they are trying to deliver water. they are trying to fight fires and and -- they know how to reach out bute don't have

direct requests yet. we certainly -- in tight working relationship with the utilities down there. >> thank you. i figured it was premature but great to help out when we can. thanks. commissioner jamdar. gi wanted to bring up this reading the ca c report and wanted toork with them to some of the parodies the power subcommittee identified around affordability and climate action plans and help us aline it with the something i'm interested inform i want to come back with some of this thinking. in the next inquired everquarter, putting that out there. >> great. thank you. >> i take public comment on the

commissioner items in remote call are raise your hand if you wish to comme do we have members present to provide comment? are there callers? there are no callers. >> >> thank you. call the next item. >> >> public comment on the matter uring closed session.

remote callers. raise your hand if you wish to comment on closed session. do we have members present that wish to comment? are there callers with hands raised? is there are no callers in the queue >> thank you. >> thank you. commissioners may i have a motion on whether to acert the attorney/client privilege for the closed session matter under item 17? >> motion to assert attorney/client privilege on closed session. >> seconded >> roll call >> president stacy >> aye >> vice president arce >> aye >> commissioner jamdar >> aye >> commissioner0r leveroni. >> aye. >> item passes. the commission will go

>> we are back in open session. i would like it report in closed session the commission recommended the settles am at this time board of supervisors. >> commissioners, may i have a motion on whether to disclose the discussion during closed session? i move we don't disclose >> president stacy. >> aye >> vice president arce >> aye >> commissioner jamdar. >> aye >> commissioner leveroni. >> aye >> that concludes our meeting it is adjourned. thank you.

>> long■n it was in fashion, o'shaughnessy water system has been sustainable. in addition to providing water for the bay area, it also generates clean hydroelectric power to run city buildings and services. and more recently, some san francisco homes and businesses. >> satellite electricity is greenhouse gas free, so we see a tremendous benefit from that. we really are proud of the fact that, we've put our water to work. >> even with the system as well coon received as hetch hetchy, climate change has made the supply of water from the sierra vulnerable. and requires new thinking about where and how we use water. >> we have five hundred million gallons a d of wastewater being dumped out into san francisco bay and the ocean fro■ the bay area alone. and that water could be recycled and

should be recycled for reuse through out the bay area. >> we're looking at taking wastewater and reading it to drink watering standards. we're also looking at our generation and looking at onsite water reuse looking at the t strategie to us today. >> the very first recycling plant in the state of california for landscape irrigation was built in san francisco. we've just developed a new recycled water plant in the ocean side wastewater facility for irrigation purposes in golden gate park, lincoln park and the panhandle. >> a century ago, san francisco built a dam to create bunched znswer of fresh water to ensure the future and ensure the taps will flow for future generations, it will take as much vision when it reflects a fundamental change about how we think about water. >> i think we recognize there's going to be change in the

future. to have the flexibility and the future as it's presented to us, it's a matter of how to see it and say, okay, let's make wise use of everything we have. >> this o'shaughnessy centennial moment is made possibbbbbbbbbbbb

>> you're watching san francisco rising with chris manors. today's special guest is mary chu. >> hi. i'm chris manors, and you're rising on san francisco rising.

the show that's focused on rebuilding, reimagining, and restarting our city. our guest today is mary chu, and she's here to talk with us about art and the san francisco art commission. well come, miss chu. >> thanks for having me. >> it's great to have you. let's talk about art in the city and how art installations are funded. >> the arts committee was funded in 1932 and support civic review, design investments and art galleries. projects we have are funded by the city's art enrichment

ordinance which provides 2% of construction costs for public art. >> so art is tied to construction. there's been a great deal in the southwest of the city. can you talk about some of the projects there? >> sure. our city has some exciting projected in the bayview-hunters point coming up. one artist created a photo collage. in the picture pavilion, one artist formed a one-year residency coming together with residents, and anchoring the new center is a landmark bronze sculpture,

inspired by traditional ivory coast currency which the artists significantly enlarges to mark that it's a predominantly african american community in bayview hunters ■v point. >> are there any art installations around town that uses light as a medium? >> yes. the first is on van ness between o'farrell and geary. it's funded with the m.t.a.s van ness geary street project. another project is for the central subway. it is one of ten artworks commissioned for the newr 650

consists of 550 l.e.d. panels between the powell street station and the union street station. it's called lucy in the sky, and the lights are patterned with unique sequences so that commuters can experience a unique pattern each time they pass through. early daysculpture that was rem the civic center? >> this is a question that cities have been grappling with nationwide. following the removal of early days in 2018, there was a toppling of statues in golden columbus statue.l as the we are partnering with the

parks department as well as the community to engage with the public to develop guidelines to evaluate the existing monuments and memorials in the civic arts collection and evaluate the removal of a monument or statue but also installing new ones. >> finally, it seems like the weather might be nice this weekend. if i fancy taking a walk and seeing some outdoor art, where would you suggest i go? >> well, i would suggest the embarcadero. this work was commissioned with funds from the fire station 35. this suggests the bow of a boat and the glass panel surrounding

the structure depict the history of fireboats in the bay area. >> and where can i go from there? >> then, i would walk up to the justin herman plaza to check out the work of the art vendors. then check out the monuments like the mechanics monument. also, be sure to check out the poster series, installed in bus kiosks along market street, which features four artists each year. >> well, thank you. i appreciate you coming on the show, miss chu. thank you for your time today. >> thank you, chris. >> that's it for this episode. we'll be back with another show

dev mission's goal is aiming to train young adults, youth so we can be a wealth and disparity in underserved communities like where we are today. my name is leo sosa. i'm the founder and executive director for devmission. we're sitting inside a computer lab where residents come and get support when they give help about how to set up an e-mail account. how to order prescriptions online. create a résumé. we are also now paying attention to provide tech support. we have collaborated with the

san francisco mayor's office and the department of technology to implement a broad band network for the residents here so they can have free internet access. we have partnered with community technology networks to provide computer classes to the seniors and the residents. so this computer lab becomes a hub for the community to learn how to use technology, but that'she parents and the adults. we have been able to identify what w call a stem date. the acronym is science technology engineering and math. kids should be exposed no matter what type of background or ethnicity or income status. that's where we actually create magic. >> something that the kids are really excited about is science and so the way that we execute that is through making slime. and as fun as it is, it's still a chemical reaction and you start to understand that with

the materials that you need to make the slime. >> they love adding their little twists to everything. it's just a place for them to experiment and that's really what we want. >> i see. >> really what the excitement behind that is that you're making something. >> logs, legos, sumo box, art, drawing, computers, mine craft, and really it's just awaking opportunity. >> keeping their attention is like one of the biggest challenges that we do have because, you know, they're kids. they always want to be doing something, be helping with something. so we just let them be themselves. we have our set of rules in place that we have that we want them to follow and live up to. and we also have our set of expectations that we want them to achieve. this is like my first year officially working with kids. and definitely i've had moments where they're not getting something. they don't really understand it and you're trying to just talk

to them in a way that they can make it work teaching them in different ways how they can get the light bulb to go off and i've seen it first-hand and it makes me so happy when it does go off because it's like, wow, i helped them understand this concept. >> i love playing games and i love having fun with my friends playing dodge ball and a lot of things that i like. it's really cool. >> they d't you a lot of cheese to put on there, do they? you've got like a little bit left. >> we learn programming to make them work. we do computers and programming. at the bottom here, we talk to

them and we press these buttons to make it go. and this is to turn it off. and this is to make it control on its own. if you press this twice, it can do any type of tricks. like you can move it like this and it moves. it actually can go like this. >> like, wow, they're just absorbing everything. so it definitely is a wholehearted moment that i love experiencing. >> the realities right now, 5.3 latinos working in tech and about 6.7 african americans working in tech. and, of course, those tech companies are funders. so i continue to work really hard with them to close that gap and work with the san

francisco unified schoo district so juniors and seniors come to our program, so kids come to our stem hub and be exposed to all those things. it's a big challenge. >> we have a couple of other providers here on site, but we've all just been trying to work together and let the kids move around from each department. some kids are comfortable with their admission, but if they want to jump in with city of dreams or hunter's point, we just try to collaborate to provide the best opportunity in the community. >> devmission has provided services on westbrook. they teach you how to code. how to build their own mini robot to providing access for the youth to partnerships with adobe and sony and google and twitter. and so devmission has definitely brought access for

our families to resources that our residents may or may not have been able to access in the past. >> the san francisco house and development corporation gave us the grant to implement this program. it hasn't been easy, but we have been able to see now some of the success stories of some of those kids that have been able to take the opportunity and continue to grow within their education and eventually become a very successful citizen. >> so the c■j■yomputer lab, the doing the backpacks. i don't know if you're going to be able to do the class. you still want to try? . yeah. go for it. >> we have a young man by the name of ivan mello. he came here two and a half years ago to be part of our digital arts music lab. graduating with natural, fruity

loops, rhymes. all of our music lyrics are clean. he came as an intern, and now he's running the program. that just tells you, we are only creating opportunities and there's a young man by the name of eduardo ramirez. he barber, what's that flyer? and he says it's a program that teaches you computers and art. and i still remember the day he walked in there with a baseball cap, full of tattoos. nice clean hair cut. i want to learn how to use computers. graduated from the program and he wanted to work in i.t.. well, eduardo is areamer. right. so trying to find him aob in the tech industry was very challenging, but that didn't stop him. through the effort of the office of economic work force and the grant i reached out to

a few folks i know. post mates decided to bring him on board regardless of his legal status. he ended his internship at post mates and now is at hudacity. that is the power of what technology does for young people that want to become part of the tech industry. what we've been doing, it's very innovative. helping kids k-12, transitional age youth, families, parents, communities, understand and to be exposed to stem subjects. imagine if that mission one day can be in every affordable housing community. the opportunities that we would create and that's what i'm trying to do with this

>> we think over 50 thousand permanent residents in san francisco eligible for citizenship by lack information and resources so really the project is not about citizenship but really academy our immigrant community. >> making sure they're a part of what we do in san francisco the san francisco pathway to citizenship initiative a unique part of just between the city and then our 5 local foundations and community safe organizations and it really is an effort to get as many of the legal permanent residents in the san francisco since 2013 we started

reaching the san francisco bay area residents and 10 thousand people into through 22 working groups and actually completed 5 thousand applications for citizenship our cause the real low income to moderate income resident in san francisco and the bayview sometimes the workshops are said attend by poem if san mateo and from sacking. >> we think over restraining order thousand legal permanent residents in san francisco that are eligible for citizenship but totally lack information and they don't have trained professionals culturally appropriate with an audience you're working with one time of providing services with pro bono lawyers and trained professionals to find out whether your eligible the first station andg

questions to see if have met the 56 year residents arrangement or they're a u.s. citizenship they once they get through the screening they go to legal communication to see lawyers to check am i eligible to be a citizen we send them to station 3 that's when they sit down with experienced advertising to fill out the 4 hundred naturalization form and then to final review and at the end he helps them with the check out station and send them a packet to fill and wait a month to 6 weeks to be invited in for

an oral examine and if they pass two or three a months maximum get sworn in and become a citizen every single working groups we have a learning how to vote i mean there are tons of community resources we go for citizenship prep csses and have agencies it stays on site and this is filing out forms for people that are eligible so not just about your 22 page form but other community services and benefits there's an economic and safety public benefit if we nationalize all people to be a citizen with the network no objection over $3 million in income for those but more importantly the city

saves money $86 million by reducing the benefit costs. >> thank you. >> i've been here a loventh i already feel like an american citizen not felt it motorbike that needs to happen for good. >> one day - i pledge allegiance to the flag of the united states of america and to the republic for which it stands, for liberty and justice for all. >> you're welcome. >> (singing).

>> (clapping.) >> introduce the san francisco field officer director ribbon that will mirror the oath raise your hand and repeat the oath i hereby declare on oath repeating. >> citizens cry when they become citizenship to study this difficult examine and after two trials they come back i'm an american now we're proud of that purpose of evasion so help me

god please help me welcome seven hundred and 50 americans. >> (speaking foreign language.) >> she wants to be part of country and vote so much puppy. >> you know excited and as i said it is a long process i think that needs to be finally recognized to be integrated that is basically, the type of that i see myself being part of. >> out of everybody on tv and the news he felt that is necessary to be part of community in that way i can do

so many things but my voice wouldn't count as it counts now. >> it's everybody i hoped for a bunch of opportunities demographics and as you can see yourself there's a good life for everyone. >> that's why. >> you have people from all the walks that life and they're standing in water 8 hours to be an american citizen and contribute to the city and that's really what makes this u■

worthwhile. >> ♪♪ ♪♪ >> sanitation and streets commission. today is monday, november 18, 2024 >> >> roll call, please. >> commissioners