the puc to determine a timeline. we have a powerful future here. we believe cca will help san francisco bridge our current energy efficiency work and the promise of clean renewable future. we will continue to lead not only with our innovative ideas but also innovative methods of implementation. thank you very much. >> thank you. thank you for your presentation. we have questions from the committee. supervisor mar. >> can i just -- i would love to just bookend this with some final thoughts, would it be okay? >> please. >> i want to -- thank you, kathleen, that was outstanding -- we're very proud of our energy efficiency team and what they have been able to accomplish, the real improvements that san francisco residents have seen. i want to just highlight a couple things kathleen said. one is about timing and the other is about partnerships. we have been working very closely with barbara hale and her team over at puc over how the timing of this might roll out. there's a lot going on with respect to the launch of cca and in parallel with that we'll be working with mi

mike had been an analyst with us years ago when we first began working on the cca project. he went off to new york, it was, and got his master's degree there in energy management and policy, worked as a researcher, university of columbia, and worked for the port authority as a senior energy analyst. then we wooed him back. actually, we didn't, he just loved california -- and he's been working with us as our regulatory and legislative affairs manager for some time now. so he has really deep understanding of the whole cpuc process and the rules of engagement on cca and will be leading our team toward the finish line at least on an interim basis. and that brings me to my second topic, which is the schedule and sort of where we're at and our legislative reforms. the schedule had envisioned we'd be bringing legislative reforms to the board of supervisors and, in particular, the reforms we're looking for would give us authority to use standardized power purchase contracts for longer durations than we currently have authority for. we'll also be asking for the authority to enter int

some of those savings are spread between the cca and the general fund account but it is still savings we are seeing from a general fund perspective. >> those savings would be accounted under legal and consulting services, that $40,000 is part of that 104? >> correct. that's where those savings would now be seen. the current budget doesn't separate out the two, next year's budget does. in the current budget, if you looked at the current budget line items, it's actually staff, legal services and consulting is the current line item as it stands on the budget. next year's budget i'm looking to change. >> the current year is 196810, they will be separated, then for our consultant services, miss mueller provides, she will probably be doing less of that work than she was doing the consultant services and the executive interim executive officer and she will still continue to do consultant work but we could have funding to do other consulting work. >> some of that money is actually coming from the cca fund and not from this account. it's a little difficult when you are starting to talk about t

and by program design i mean what's the portfolio of resources, what do we think we'll be able to offer our cca customers in terms of the product. and i think that kind of gets us to, close to the next lafco meeting so i'll stop there and see if, jason, you had anything further. >> jason fried, executive officer. first off, as i mentioned, i want to thank them for being the interim director while we wait for the process to move forward. i've been working with mike for some time, i've been treating him as the interim even though he didn't have the title yet. i'm glad to see he will be working with us while they go through the process to get the permanent long-term cca director in place. as i said at the puc meeting i'm thankful they moved the not to exceed meeting up a little quicker. i am disappointed we're not geting the package of stuff changed as quickly as i can but i understand this is a very technical process. it means the board of supervisors will need to work quickly on it to keep us on schedule so that will be on the board of supervisors supervisor's lap so we can remain on target and

>> that came out of the cca fund. one report we do have, physically have done, was the report on garbage collection in the city and that cost us about $50,000 to do. it was actually done in two parts. my back has been less, how much they cost, even if you do a very basic simple report on subject a, they tend to be 20, 25,000 as soon as you go to an outside consultant. if you can do a little more complex like we do with the garbage collection one, it gets up to 50,000. that's why i picked that number. one could say we want to have 100,000 in there so we can do more than one report, but i was trying to be fair and just to what we have in our system. >> thank you. commissioner cruz. >> thank you so much for the presentation on the budget. that's helpful, especially my first time doing lafco budget. do you recall how much the internext report was? >> $210,000 was the not to exceed rate, they actually went above that but only charged the 210 because that's what our contract had. they do a few extra hours out of kindness to

. >> so the next just want acca cca barbara hale. >> assist general manager for power i have before you my two weeks update with the cca included in your packet i want to put it on the overhead projector it is the same charter you've seen at each meeting and i wanted to highlight that we have completed the presentation of the program design guidelines it the commission lecturer and presented to the rate fairness board they approved those rates method for setting the not to

kept this program in san francisco and reduce energy use we actually have more projects than even the cca customers at 100 at 100 at 100 percent enrollment would need to use. so that's one of the key things and the other key thing there's a lot of desire to have energy efficiency and behind the meter work analyzed they said they would love to but it's not ready to be to be analyzed yet. you need to figure out what all of your administrative costs are and your power purchase agreements and say here's how much it's going to cost us and here's how much our rate is and set it a cent less than pg&e so you can claim to be to be cheaper and that gap tells you how much money you have for build out whether it's energy efficiency or behind the meter solar whether it's large-scale, you know how much money you have that's when you can then determine what kind of programs we can offer and how much can we actually build with this program when we get launched and that's the key thing and we issued this report in january it was actually out in early release and drafts and being finalizes and the mayor's

yes you'll of the serving combritsz in california whether privately owned or cca. >> and in our slide 11 you talk about setting the premium rate based on the green tariff premium. >> uh-huh. >> there's just an observation that the ground floor tariff program has some deficiencies and not as green as some would like so, i say offer it that if there's an opportunity to do something that is markedly better. >> uh-huh. >> and couldn't limit our horizon to 3 tariff there is, of course there's a market issue i want to make sure this is not cast in stone my last question on your last chart you showed the net revenues not going up what drives this it happens to be at the same time our increasing our dark green offering is that what drives the net or - >> no what's driving the net is the participation in the program choice to be in the opt up in the premium program you'll be looking at on the extreme left on the net revenue slide no one is participating zero participating in the premium product and at the extreme right thirty percent of the consumers are participating that's why the net is hig

. >> and the orange differential we control by market use. >> correct. >> when we say that cca will cost a penny that is our choice. >> only cost close to that's a decision for the commission. >> yes. and but again to our point tempered but the option could be for that borough in that somewhere we are looking at a wholesale purchaser. >> i wanted to point out and this is important we have a lot of dialog that is cca is its own lion of business and when they're looking to guy power to minimize the cost to its rate payers we talked about that different rate payers when we sell power to them we have to be competitive because cc organization if it is too expensive cca wouldn't necessarily bow the power if it is two executive so that's why wrooer we're trying to be realistic how cca buys the power and prices that extensively we show we'll get a slight margin that will help the hetch hetchy and also help the cca because we'll price it extensively and part of what is built both that expectation commissioner there will be orange as we look to blt build a portfolio of electrical supply we're time

dedicated staff that's in a sense some small county they don't have dedicated staff only a small part of the cca duty and in other county it is an individual staff it is a determination of the lafco commission in each county and each county rotundas their lafco very, very differently. >> thank you. >> okay other comments from the commission madam clerk thank you for your presentation and we'll go to public comment and have questions probability e probably afterward. >> good afternoon, commissioners eric brooks san francisco green party and grassroots in the city i serve with other but including san franciscans and clean energy advocate i want to definitely speak to continuing lafco as a fully flushed out budgeted entity with no detraction from its continuing work, yes we're about the launch the community on the ground gas station we've got the mayor's office it looks like this is going to happen but it is absolutely clufshl to understand the reason lafco was created was because it was recognized that programs like clean power sf will need a quasi state body that is not totally tied into san fran

yes we need to continue with lafco but things are definitely changed considering and the expectation of implementing cca we've been pushing a real possibility but as that comes down to life the need for lafco becomes less of a need so i'm just trying to understand i do not like to waste money i want to make sure we're using our current dollars efficiently where it is almost as if we would not be in this situation to ask for additional fund if we billed by hours in the ways your proposing not only with the clerk but everything that we're required to pay for i just wanted to make sure we're keeping in mind and moving forward in the future i'm presented to move this budget along and to submit this budget as is but moving forward in the future there may be a need to make adjustments especially again on a path of pushing cca through i want to make that point. >> you're okay to move the budget to as proposed. >> yes. >> and just to add cca perhaps is winding down but another thing that lafco can decide to do that means the budget is based on those assignment that lafco is working on the projects could you kno

requesting $4 million for the choice irrigation the fund will be transferred from the hetch hetchy fund to the cca program for in the morning 2 years and ask for your approval to the sfondz. >> questions or comments. >> i'd like to move the item. >> any public comment? mr. brooks are you coming up to speak (laughter) >> i don't leave so a anyway eric brooks clean advocacy we want to get this approved one of the colleagues couldn't be here why the city is charging the san francisco public utilities commissionenter interest i'm assuming this is common practice but noting nice not to be used to pay interest so if staff could be encouraged to answer that question. >> i think staff is going to answer that question. >> barbara hale general manager formal power it is common practice within the city. >> what it attempted to address one thing great set of payers they're two setsz of payers the multiple and the klein power sf payers have separate revenue streams and make sure we separately accounted for them thank you. >> yes. jason fried. >> jason fried the staff fully supports moving forward we understand

president the halftime salary the entire salary oozed used to be paid for by the general fund when the cca advisors fund lafco for clerking services ramp containing new staff we absorbed those staff and rather than continuing to have ism of them pick up the lafco and board allowed them to pay for the other halftime similarly for that staff you started did conversation and appreciate you're asking the important questions if no other questions i'll move to the staff and clerking services provided by the office through the chair. >> oh, sorry linda there's a difference of 61 thousand dollars for actual to the budget for the halftime per year. >> that's correct as far as the information that is on the slide i will be a little bit more forthcoming we engaged in a conversation with the lafco clerk that indicated it is actually more than that in terms of the the hours utilizes. >> the follow-up question is mined is lafco paid the $71,000 anticipating halftime employee who has that money. >> in terms of the staff who are currently hired in my office. >> i was wondering it went through a certain bu

we know that we might not start right away with the cca's energy efficiency program, but we can't help but think about what the next generation of energy efficiency program might look like. again, we know we want to aegt for all energy savings so we can increase the increase to the customers on chillers that have the same limitation on title 24 base line. this will allow customers to break through and do those deeper energy savings measures. all these projects deliver real green house gas energy savings and they are crucial to achieving both san francisco and the state's aggressive environmental goals. we also know that a future program will need expressable and affordable financings. financing will be very impactful if it is accessible and affordable. our staff has considerable experience with pg&e's on bill finance program which has a minimum $5,000 loan and the application review is quite lengthy because they are not a bank and don't want to be in the business as such. some of our contractors avoid these on bill financing completely. there is talk at the cpuc of private financing bu

years to modify the rate without going back to the fairness recite board we're proposing that for the cca program the supply prices allow us to stay within the raised not to exceed rates the target rates our next step to bring the supply contract forward for our approval and present the final rates to the board if the rates stays within the affordability metrics with the pg&e rates for the pg&e offering. >> i have a question in terms of rates we have a desire to bait pg&e of it's by a penny. >> we have that desire and the proof it in the pudding when we see the requests for the proposals and if we have the ability to have the rates below you know not just above the noifd by below the penguin rates we'll present that. >> i know there's a lot of moving parts to this and make that better because - >> yes, thank you. >> part of the sha bank. >> the repair sha bank. >> so i sort of reviewed the overall objectives how the math workouts a rate of 6 point 8 cents and the premium product 10 point 7 cents for a kilowatt, however, 10 point 7 cents for a renewable product we are factoring in as we lo

circumstances we'll bring those forward when that makes sense. >> as part of the business plan of the cca a determination to use prop h bonds as we got to the build out strategy would we be faced with the decision whether to use the prop h bonds versus the green bonds. >> we'll come forward with the loaded costs that's key and just what is the sort of easy bottom to persian if the authorization is in place and been a track record of past bond issuance that's the road we'll go down, however, a investedenter interest to use the prop h proposition we'll use that. >> last question so to establish credit that's part of goal; right? ; right? allowing how long don't that take once we issue those and start paying back the bond. >> given the credit rating from the agencies is the first step we've received one rating yesterday from the double a plus rating we're still waiting on s&p 500 we'll see a sense of the credit it is comparing to our wastewater enterprise and once we get the rating and pricing we'll get a sense of the market responsive to us selling bonds to the investment community how many

my two weeks update with the cca included in your packet i want to put it on the overhead projector it is the same charter you've seen at each meeting and i wanted to highlight that we have completed the presentation of the program design guidelines it the commission lecturer and presented to the rate fairness board they approved those rates method for setting the not to exceed rates it is moving forward we're positions on may telephone to come to you with the rate proposal and program design description noement we're also looking forward to the board of supervisors having the first hearing on the procurement ordinance date has not been set to my knowledge but the first week in may we should have something to report on that at our next commission month to month i'm available to answer any questions we're on target thank you. >> questions. >> thank you mrs. hale i have a number of speakers on this item. >> jason. >> jason fried i think they did a good job the one thing for the quick update i understand the board of supervisors is looking at the legislative piece matter at the committ

you don't come out the door with cca at the moment of launch with a big pile of money to spend or even with permission from the california public utilities commission to use rate payer funds for energy efficiency so we'll be working in very close harmony as mr. fried asked of us with the san francisco puc to make sure that when we launch, we're starting down that road to that new future even if we don't realize it in that moment in time so at at the point of launch we'll still work on bayren and have energy launch and work with customers and at the same time work with our own puc to figure out how that future unfolds so to to me it's an exciting moment in time for for a partnership with our two departments to get the best out of each department. >> all right. yes. executive officer fried? >> thank you. jason fried i want to thank you for those comments and i want to add one thing and this is my personal belief not everyone shares with me but i believe we need to be paying attention now to the opportunities and i know there's grants coming up now and they then and you apply for the gran

and harvey they'll have issues of delegating authority to the board the other thing the mayor appointment as far as cca the contracts that deal with building a new returnable he wants to make sure it is in the bay area and so that's another caveat we have to put into the legislation to allow us to move forward so we're trying to accommodate the mayor and trying to accommodate you know the city attorney and everyone else is on board but to make sure that it goes through harvey and address a lot of the issues we're trying to follow the schedule such as a and trying to accelerate i want to make sure we want to make sure that you know we get it so we execute it we can do it right the other thing i know that inquiring the long term debt we need to be committed we've had situations we've answered into long term debt and it explicit pan out right so before we go out with the rfp we have to meet with the commissioners to feel xhovenlt what type of long term debt we're talking about and what range because we had a situation that you know we entered in a it didn't turnout well, i want to throw that out there the

. >> well thirty megawatts is a small program the margins formal a cca program are tight this will as those slides dpeement the net revenue opportunities are greener we're going to see how to maximize participation in that part of the program. >> i think we have data we looked at our market research from before it shows that are part of the city that are going to be more amenable to the one hundred percent renewable we haven't had a robust outreach to make that happen but the thirty megawatts i'd like to start as possible even bigger. >> remember part of what we're trying to do by starting smaller work out the kings and also be able to continue to enroll more customers at the level of president obama out from the program is greater than we expected so room to reach a stable thirty megawatts by opting if we find ourselves in a situation there is really a strong campaign and we need to do more enrollment so that helps to achieve the stability it helps us mitigate some of the risks and uncertainty around opt out and i'll state i agree with what ms. hale as present we're going to launch t