the $940,000 -- whose money is that? >> that is puc money. it was added back in the board of supervisors project, where there were budget cuts during the process and then individual board members asked us to do additional work. >> this is ratepayer money? >> yes. >> one thing i was not -- there were a couple of areas that raised questions for me. one was in the plan itself, not in the mou, but in the plan. it talks about the need for making facility improvements, and in some cases new facilities. i guess my concern is that somebody's expectation is that we are. the other flag is that i could not tell if there was a transfer of responsibilities. i could not tell what the dollar impact was. there was no performance statement of what would be responsible for, and nothing offsetting that as far as what rec and park would be responsible for. i am concerned about the blank check aspect. i would be concerned about the obligation we would be getting into. >> first, on the change of responsibilities, with the responsibility of a specific lease, we woul

this is the way the puc works. >> excuse me. we're considering the minutes. >> it is in the minutes, sir. the minutes said i suggested it. i did not suggest. i said there is a problem. what i said two weeks ago, said the puc needed to investigate it. i came in with a good heart, telling the puc this is what i found. the first thing that i find out is that the puc told then that i complained about the abbottabad is not acceptable. >> as far as the minutes are concerned, is there an issue with what they say? my impression is that they were a transcription from the reporting of the meeting. >> with all due respect, the word that has been used in the minutes -- let me read it. he further suggested that he believes that there were inappropriate billing on some of the wsip regional projects. this is on page 3. i did not suggest. i confirmed that there is. i further confirmed -- let me put it to you this way, sir. no one can get documents like this. >> if i may interject, mr. president. we discussed this at length last meeting. it was a

it leads to specifically identify the puc. the that should be the agency in charge of stewardship and management. the recreation and park department should continue to manage harding golf course and provide habitat restoration work done to the natural areas program. there seems little else, in terms of recreation abatements, that is in need of day to day management, or that the puc could not do. in the future, recreation activities that may require expertise could be identified, planned between the agencies and the public, and delegated as appropriate. otherwise, there is nothing that warrants and mou between the agencies. the puc should assume responsibility for all infrastructure, including docs, restrooms, and future buildings. it is your responsibility to assure the lake is not used as a dump, that erosion is controlled, that the wetlands are protected, and that wildlife is protected. as an agency that has developed master plans for other elements of the water system, you have an excellent track record in planning. golden g

and whereas the puc anticipates the immediate commencement of the local buildout. once the have completed their scope of work, sufficient revenues are identified, the sfpuc considers the environmental analysis of any physical impact of the local bellout -- buildout program, and approves the budget and timeline for the local buildout. president moran: any questions from the commission on that language? >> second. president moran: procedurally, we don't have anything to make an amendment to yet. let's just do this and a simple way and tell me if it doesn't stand up. let's vote on the language, we can move the replacement resolution that includes that language. >>-secon i can second it. >> are we going to have public comment on the proposed amendment? >> i think we should. president moran: ok. do you want to move the other amendments then? >> why don't we do that? >> other coveys of this, the ones that came into the meeting? president moran: the commission was given substitute language at the beginning of the meeting. the mover and seconder agreed that what is before

there was a larger issue of rates and what the puc is charging. it's not directly connected to the cca. it deals with the larger issues of this commission and that is a discussion that is also taking place. i think the board understands that very important role that the public utilities commission plays. i think there is a real interest in making sure that we have as viable lead agency as we can and we remain the innovative agency that we have been and that we continue to be really leading the way nationwide. >> i want to make sure with mike campbell and clean power sf, the time is enough for the board to get better educated this since it is so complex and of his companion re peace. i would urge the staff to make sure that as these hearings get scheduled -- there is a lot of education that might need happen. >> i think it is important, commissioner, also making sure that those discussions go out into the communities. we have a very diverse communities that need to know more about this. and the impact on would be directly impacted by this program. i

the puc admitted it. it was flye field by the field staff. when i came here to the puc on september 23 and talked with staff, they showed me a printout that was just printed from the puc computer system for change order number 81. it had five signatures on it. meaning it had been approved, went through the ranks. this is what i saw. if you approve a change order, you cannot go back and say the staff flag did in the field. that means that has been processed. furthermore, the reason why we are facing all these issues is because of corruption in some of the staff. harvey l. wynn, the bureau manager for construction submitted either an e-mail or a letter requesting the private contractors in the private consultants to bid on his services. while he is in charge of selecting those consultants. that is more than a conflict of interest. this is why some companies are getting work, some companies are not getting work. there are serious issues, mr. president. commissioner vietor: i appreciate your comment. let me suggest this, the commission is a reall

it has to go to the puc. the second is that we did not have ceqa language. we added ceqa language, adding that it would be covered. the third is to be even more clear. it says the puc will only authorize the general managers to launch the program as long as it is a per by the board of supervisors and the following conditions are met to the satisfaction of the puc, and the same language stays in there. we wanted to make sure that is on the record. president moran: ok. so what is before the commission is the substitute resolution with the addition of the two whereas clauses that were just read earlier. ok. public comment on that item? >> good afternoon again, commissioners. san francisco green party and the local grassroots organization of our city. a few things on the amendments that you're going over. an important one is the ceqa issue. what we're seeing out here is that we need the final approval of the shell contract and the program that is being based on it to be contingent upon the build out work -- and by the way, not necessarily the full nine to 11 mon

>> i also want to speak in support of the puc's plan with respect to the electricity rate. in light of the shortfall that is going to occur, it is occurring, has occurred, without eliminating these subsidies to where the cost is not being paid, we have a situation that is not sustainable. the work needs to be done on hetch hetchy. renewable energy programs -- since we are talking -- supervisor mirkarimi and his work. there is a legacy of a lot of the program to have worked all these years that i think we will need some of this to continue. that is important that you have done all these years and i think this will help to move forward with respect to the solar program, clean power sf. as to the cost, there is a possibility this will is advised energy efficiencies within departments to mitigate the potential cost to where we may see cost neutrality. any energy efficiency work, we have identified $100 million in opportunities to be more efficient with electricity being used. the department may have to make some of these tough questions and they ought to -- may opt to invest in

this is important for us to understand that there are long- term implications on the puc. the p c is a very important asset to the city and candy of san francisco 10 too want to make sure how this is properly handled. we will be hearing from the public commission today. some of the numbers are so sick with that practice and some thoughts about moving forward to. what happens, there will be a budgetary impact on city agencies and city departments which is why i think it makes a great deal of sense that this is happening in the context of a larger budget discussion. i look forward to the presentation, the discussion. i apologize that i must about 4 part of the meeting but i have a previously scheduled meeting that i cannot change at this point. i would like to thank the puc, the general manager, and his staff, for the good work on this issue. >> did you very much. i will ask the mayor's budget director to come forward. >> good morning, supervisors. i'm here to represent the mayor's budget instructions for the next fiscal years. i will start off with a little bit of context. l

i believe we have bart and the puc on this item. >> good morning, government affairs manager with the sfpuc. i am here today to talk about an ordinance regarding agreements for the tracking of environmental attributes. environmental attributes are things like renewable energy credits that are generated when it renewable electricity is created. it includes things like cap and trade emissions of said, which are created when you undergo an activity that actually reduces greenhouse gases in the atmosphere, such as the planting of trees, emissions allowances, which are actually impacting the environment but it loud and emitter of greenhouse gases to actually do that. and then, low carbon fuel credits, which are part of the air resources's board effort to reduce transportation and fuel and backs in terms of climate change in greenhouse gases. the ordinance before you does three primary things. first, it authorizes agreements with the western renewable energy generation information system, which we call regis, and that is for the certification and tracking of renewable energy credits associa

because of that, we are asking the puc to support the extension. rboc is a separate independent oversight body, recognized for its transparency. because of that, it has been favorable to the bond rating. we believe the extension is a worthy one. we ask for your support. thank you. president moran: ok, thank you. commissioners from any questions on this item? public comment? seeing none, men have a motion? >> so moved. second. president moran: all those in favor? opposed? the item carries. thank you for your work. i appreciate you taking the time to come here today. you're not compensated. we recognize that. we value the service you put in. thank you. now, getting back on track. my intention is at 3:00 to call the budget item. so in the next half hour, let's try to get through everything else. >> so the rates, what is going to be the process and the timeline for the rate discussion on this 2 cents vs four since per is a cost recovery? >> that was option 1a and option two. we have option 1b that you'll hear about. the discussion was that you would be

and whereas the puc anticipates the immediate commencement of the local buildout. once the have completed their scope of work, sufficient revenues are identified, the sfpuc considers the environmental analysis of any physical impact of the local bellout -- buildout program, and approves the budget and timeline for the local buildout. president moran: any questions from the commission on that language? >> second. president moran: procedurally, we don't have anything to make an amendment to yet. let's just do this and a simple way and tell me if it doesn't stand up. let's vote on the language, we can move the replacement resolution that includes that language. >>-secon

we it knowledge the need for something at the puc, but we also are not in the best financial position ourselves to be observing cost increases. supervisor chu: thanks. >> some key assumptions to give some context to our projections. we assume every year current staffing levels and service levels, except for known changes, like implementation of health care reform. this does not represent new policy initiatives or increasing the city workforce. we are using our five-year plan assumptions as far as salary increases and health benefits. you want to be consistent with prior projections, with the report will come out in march. this includes the passage of prop. see, that i will talk more about it a minute. it assumed that we increase our state reserve back to $30 million from the $15 million that was included in the past budget. was included when we decided to move forward with proposition d. -- g. because our revenues are growing, we are assuming we will not be able to withdraw from the ring in david reserve -- rainy day reserves. while we start with our lost up on balance we assumed in t

supervisor chu: with regard to the bonding issue, the point you're making is the puc does not have a rating. we are not able to go out and get a favorable rate in order to bar a modest duties of the capital projects because we do not have a regular rate-setting process. in terms of going through a regular rate-setting process, we would still be going for every year. the board have the ability to reject those rates. how does that change the bonding situation? >> we would be asking for a multi-year rate package. on the water rates, 3.5 years ago, we can with a five-year increase. we set those rates in place for five years. we will be asking you for setting those rates for a period of two to four years, enough time to stabilize. it will not get to the cost of service, but would be substantially closer and would allow us to go out and say to the bond rating agencies, these rates are set in the normal fashion, goes to the puc, board of supervisors, and we can expect to receive the money that those would generate. supervisor chu: thank you. >> good morning. habra reads from, cfo, assistant

to go out and say to the bond rating agencies, these rates are set in the normal fashion, goes to the puc, board of supervisors, and we can expect to receive the money that those would generate. supervisor chu: thank you. >> good morning. habra reads from, cfo, assistant general manager. tahrir charged with his stewardship of this most number of resources for the city and county, we have two options for your consideration and the liberation. those both satisfy the edge of sustainability and would allow the water and power program and project to borrow affordable bond proceeds. importantly, the two pennies over two years, as mentioned in the budget director's briefing as well, would mean, over the next two years, we would go from a 3.75 cent kilowatt-hour, up to 4.75, 5.7 5 cents, remain at that low thereafter. why this is important, it sends a strong signal to the bond markets and allows us to borrow power revenue bond proceeds. it balances the 10-year financial plan. also brings in the additional revenues of about $4.5 million. annualize that to $9.1 million thereafter. this would also a

this would update the puc resolution. it does not replace that revolution, but would define better our responsibilities, defining the rec and park responsibilities. the whole point is we defining the responsibilities so that expectations are clear for all to say. on the pc front, there is a laundry list of items about attracting collaboration with rec and park, really focusing on water levels, water quality. we monitor that to maintain and operate our structure. rec and park do a lot of day-to- day activities around the park, in terms of gardening and crash management, things of that nature. protecting water quality, one of the key things is if we find something that is not working out the way it should, we would direct, for example, rec and park to change that facility. we have that authority to do so. one of the things we do is work with the department of fish and game to enhance regional fishing opportunities, and work with dpw on parking facilities around the lake. this more clearly delineates the puc's direct responsi

this would update the puc resolution. it does not replace that revolution, but would define better our responsibilities, defining the rec and park responsibilities. the whole point is we defining the responsibilities so that expectations are clear for all to say. on the pc front, there is a laundry list of items about attracting collaboration with rec and park, really focusing on water levels, water quality.

were we are here now, the sf puc contract and the 19.5 million. a parallel path, we expect the master contract to be approved by the board of supervisors. we're working toward the completion of the contract that noble americas. introduced at the board of supervisors, we expect the economist and the comptroller will have the report on the program that will be available for the supervisor's consideration. sometime in january, board approval could be finalized. the new areas and we think we will be setting the not to exceed rate. setting the rates for the various class's. = = ca -- classes. the not to exceed rates will be approved by the body and to go before the board where there'll be some time where it can rejected those rates or not. then we jump to march where we get the final confirmation pricing from a shelshell, some t below that, that would be the rates that get put into customer and modifications along with ought out notices. -- opt-out notices. they may be making the final policy decisions in february. that is the earliest they can be at t

how the outage occurred is under investigation. pg&e, our own puc, sfpuc, along with others, are going to confirm that as well, by our own engineers working coope>> [inau] >> i have faith in everyone doing the best job they can. i have faith, going forward, that we are going to work in a deliberate fashion to make sure that this does not happen. our city has systems that have been here for a long time. i was sad and embarrassed to have this happen on the night of our only monday night football game. everything was on the line. i am very glad we won. i am going to support the 49ers by doing the best job i can as mayor to make sure going forward everything is respected, additional particles are in place -- protocols are in place to guarantee this will not happen again. i think we have everyone on the same page ensuring this does not happen again. it should not happen. we do not want it to happen. yes, i was. the 49ers will talk about thiat this afternoon, about plans to increase cell phone use of the park. i was concerned for the fans. public safety i

i started out with 1 barrel that mardina gave me, from the puc, they gave me a 55-gallon drum. i now have over a dozen drums, 250-gallon drums. i collect over 1,000 gallons of water that i harvest from the rain. this summer, i watered my whole garden with the water from the rain harvest. that is another thing that has happened. i have also watered ann's garden with that same water. another thing -- karen is not here. she is in that nice, gray house. she has been an advocate, working with the environmental things in this community. she was one of the people responsible for pg&e getting us some solar panels, the phillips solar panels. we have solar panels, mardina, ann has solar power. it has cut our energy costs down. the other thing we are trying to emphasize in our blood, in our community, to the young people, to respect the block and to keep it clean, and to learn how to recycle. we have green, blue, and black bins. we need to figure where everything goes because it is part of saving our environment. thank you for coming out. [applause] >> thank you. as juan indicated, this ne