Transcripts For SFGTV 20240622

Build a youth, all to talk about Architectural Concepts the southeast plant and this is in response to the fact that when we write the Community Worker the Southeast Working Group is exactly what they assess for. So, thereve a big responsibility nobody of the summer. Should a little disappointed with her here today just observe the public process because its its a neat 360 opportunity. They work in office at the different consultants office. They learned soft skills already from. Its just a fantastic thing. Many of them are returning students and all are collegebound were already in college. Their great group. So, with that that concludes the report. Thank you. Ive a couple of questions. Would you welcome the interns, first of all. Welcome, all of you. Im to be asking karen kubek a few questions, which am hoping by the end of the summer you might be able to answer. So the 2. 5 billion in low interest loans, is that in addition to what we are budgeted with the lakes and the bonds that were issuing . Is actually built into our cost model. We have a fabulous finance team that is built this in. They been working sidebyside with us actually gone up to the state. Todd, when he was here and under the new cfo, when hes here will company us. We been working together to be with to secure these funds. So, theyve run sensitivity malls assuming we do get those lower interest loans. Basically, its half what a normal Interest Rate would be good if Interest Rates now are it 3. 5 . , 4 , we be looking at 2 . So, its a phenomenal thing and we are thrilled. We have a slightly different opportunity than the water enterprise. The terms of state Revolving Loan funds for wastewater are 30 years. The terms, currently, for water i believe are still 20 years less that was amended. So were really thrilled to be able to take advantage of it it is him a card dollars by much further. Its something with to talk about a lot more to the public, so they hear what wetlands were going to try to do the best the public dollar. I think that would be great to somehow figure out how to communicate this to our rate pairs. Theres a lot of work going on to make sure that rates can stay affordable. I think that would be great especially in a time of we have one individual dedicated state Revolving Loan funds and the pursuit of grants. To bring in as much money as possible. The central bayside project, what are we calling that . Cbi fp. Theres other items but the central bayside system [inaudible] system which as many components. It evaluates the whole section the central bayside because we had our 66 seo this is now looking at a redundancy and were looking at gravity tunnel, so we were coupled alternatives in our discussion with senior management. Yes. I know thats a pretty weak ticket price rainout were leased with the discussed. I also know was relatively early in the process start deciding what thats going to actually end up being. I understand also some issues, flooding and whats going on in that area, but i would just hope this summer we can kind of but that project see little more light and hear more about these alternatives and to really explore the alternatives. Right size this pipe so that we are making the right decisions. This a big ticket price. I dont think weve really talk it through that its important for the commission to know what the options are those of us who are injured is much as possible with the opportunities might be and just to make sure were not over sizing this pipe good to get a better understanding of what the options are. Yes. I want to just highlight that. The actual construction of the tunnel is not in phase 1. Is in phase 2. So, we have to come back to the commission because this is an additional of the 2. 7 million. So, we would have to come back to you with a range of options, and i think it would make sense that, at that time, or even before then, when were recommending an alternative to come back to you to tell you why were recommending an alternative. As karen mentioned, we have to really address the force main. So, the tunnel will convey sanitary flow, which Green Infrastructure is not a solution, but the storm Water Management portion and commands him a its a sweet spot given that having localized flood. So, what we will do is come back to you with some range of options that we looked at them and then come and talk about what were recommending at that time. Hopefully, that will help since were no measuring a lot of Green Infrastructure, hopefully while some data to base our selection on. Yes. I know theres relative sense of urgency on this. So, what that might do for the timeline for the overall business ip well i think will be important as well. As we [inaudible] spent a lot on this project. Just to get an understanding that would be helpful as we go along. Yes. For sure. I have one last question, which is around sort of shoreline infrastructure. Is a great exhibit now its on they done in new york in the composition they had brown climate changes in Sea Level Rise. I know when we approach the infrastructure was from a watershedbased approach we try to try these different watersheds but we didnt really talk about much at the time the possibility and opportunity for Green Infrastructure took with sea level rising shorelines. Resilience, if you will. I just want to plant that seed. Its something for us to keep track of is rebuilding the plant, and if theres any opportunities to do some green the different, i guess that triangle look at the benefits and it seems like when the primary benefits there was not in the top of the triangle is really storm Water Management, which is the main reason is if you see were in the Green Infrastructure space, but is there a stuff we want to do or could do to protect our shoreline assets with Sea Level Rise with some of the infrastructure that we havent talked much about . One of the things we are are doing is working with the other city agencies, especially the part, because of protection of sea rise and the poor property, it will cause havoc to a lot of the facilities and their facilities on the ports. We have been working with dpw, the port, and all the municipals and all the other agency. Maybe, at some point we can bring that whole presentation about the city is working at sea rise and lets say were leading the way because we have a lot of the data. The data that was done on the mapping of the storm surges and inundation mapping. We are providing that [inaudible] so we can help inform. I know thats part of the continuing capital plan. Any project has to address sea rise as a criteria. So, what we can do is have david b tab the presentation of how the whole city is addressing sea rise. That would be great. Even a special focus on our asses. Both on the westside and he said would be great its water and wastewater as well. Thank you. Any other comments commissioners . Thank you. Any Public Comment on this update . Good afternoon, commission the dj Deputy Director of Young Community developers. I want to ensure i came here today to just echo our thanks to this body for the work that you all have done with ashley taken us associate is now called city was as a fourth summer we been able to run this program we have 21 interns all from district and were learning the aspects of engineering, architecture finance and accounting. Government relations and communication. So they spent some time with tyrone and just the entire team. The one thing i really want to make sure we highlighted on was now, in year four, knowledgeably at the 21 interns but to the puc would enable to carve out with calls teaching assistant position. I think theres five interns who previously in the program that are now sophomores or juniors in college that working either directly for the puc cup green towards grassy learning the Community Aspect and Community Side of this threepronged approach. So want to make sure we highlighted staff as well as the uncle worth two of those tas doing a phenomenal job. But, its always interesting and great when they get to come to Commission Meetings because it is these kids need even have aspirations of sitting in those seats, but to hear the language and to hear everything that theyre learning been talked about at a Commission Meeting really puts things into perspective as we give these young folks more exposure. As we look forward to them actually coming back from college to the city to potentially take positions with qc. 31 make sure we keep arms around these young folks know we support them. One of them especially want to go up and actually Say Something to that. Ill introduce you all to elisha. Good afternoon. Is my second time speaking to. I spoke to a couple weeks ago, but karen mentioned the not use townhall meeting. Being the deputy project manager on that, work a miracle or preplanning phase but we want to talk about our name because the heavenly picked a name for this project is called beautifying the bay view. So we wanted to get our name out there and make sure were getting enough exposure for this event to hear people come and give their support and you receiving your formal invitations in the next couple of weeks. But really wanted you to know our name so you can know who we are and know what we are doing. Was the date of the event july 24 july 24, great. Thank you so much. Tj, thank you so much even such a great partner to the puc honest work and really appreciated. All the interns, we look forward to once youre through this program and to college coming back because of that quite a bit of openings with the retirements of a lot of our qc staff. So keep that in mind please come back and tell us what youve learned. You looking at me. Hopefully, not you, harvey. Great what they do any of the Public Comments on this item . Next item, please item 9 is a bosco update bosco update thank you for having me today on the south by comments by letting you know i really appreciate and oscar appreciates the opportunity to speak on your agenda regular. It has been part of what is a growing relation between how scott and qc and it gives me an opportunity to highlight things and its much appreciated. Two things i want to talk about today at three but i talked about the tunnel already. First, earlier this month id had the wonderful opportunity to participate in a meeting with gov. Brown. San joses mayor ricardo was also a bawsca board member and other bay area Public Officials and water leaders. Also mr. Steve ritchie. So its a pretty impressive meeting we had an opportunity to share with them our thoughts about how things were going with it out. I message that they to him was consistent in line with what ive told this commission back in may on a long piece points. This region, the region that your service area is, as you saw with steve, has some of the Lowest Per Capita in the state. Very proud of that, but also means we know we have more to do. In fact, if you look at april 2015 numbers, residential use was 59 gallons per capita per day across 2. 3 million residential customers. Thats a phenomenal number when you think about it. It was the lowest that month. Our agencies and bawsca are aggressively implementing Water Conservation insert service area to exceed the state calls. All were not us water supplier, racking like we are in handinhand with her agencies on this. We have partnered with them to implement and expand programs in their service areas, step up and provide services that we can do in easier fashion for them. Really starting to see numbers that never seen before any matter conservation thats going on. Its pretty incredible. Russell work in partnership with qc, implementing the drought messaging campaign. The billboards going on putting out more like commercials that have been allowed in youtube and things like that but basically trying to reiterate the messages in the summer that this is the greatest opportunity to conserve everything with concern todays summit we can save for tomorrow. So, is a really valuable meeting in which mr. Richie and i were both there was really just a great opportunity i think. Second and of looking to the future, the other side of the hat. As you know your Water Infrastructure program has been really focused on the doors for the last 10 years. Youve made a phenomenal strides in how you successfully proven to implement the program. Moving forward, though, were very where your tenure cip is going to be ramping up and being a place we have a lot of investments appropriately so to ensure reliable supplies into the future. Mountain mountain tunnel is won the singles artist projects in that cip. So we really support that effort and one of the things that we were looking at within a 2 to talk about with the state of the Regional Water system report that staff put out at the end of last calendar year. Its report that we see as a tool to kind of identify with the assessment of the system, how does it go from assessment to is repair and replace in project, is a major Capital Project it services it authenticity was the status of our system. So, thats a great tool. What were hoping to see is really the construction practices that youve taken including fellowship be carried those over to cip implementation. Youve done a lot. I told someone the other day if youd asked me back in 2002 could the poc puc do, i have a lot of concerns as everyone else did and you proven to do. As the time to carry those over into the Capital Program and make sure you dont lose those ways and means if you will of what youve learned. To make sure that you convey to the staff, the staff fully understand your expectations about that. Theres a lot of money at stake. Its critically important gets managed appropriately so that every time im up here, in my agencies and their water customers want to know, are we getting the best thing we can get for our money to ensure the system that we all rely upon will be there for the future. Thats really how they look at it. Were not there shall complain about cost. Thats not my issue. Certainly im cost aware, but the reliability and affordability in the high Water Quality things are incredibly important to your customers. So that concludes my comments there are certainly answered questions you might have. I just want to thank you for presenting and continuing to show up and tell us about your concerns. Speak to issues that matter. Appreciate that. My pleasure. Public comment on the bosco report . Hearing none, when i moved to consent items if you could please read those items and 10 as against consent conduct all matters the city under that cause you have content that are considered to be retained by the San Francisco Public Utilities commission to be acted upon by a single vote of the commission. We know separate discussion of these items unless a member of the commission or the public so request which event the narrowly removed from the counter and considered as a separate item. 10 eight 10 82 selection of 36 9 am 369 point b. An authorized to professional Service Agreements each with the amount not to an authorized to professional Service Agreements each with the amount not to exceed 4. 70 5 million and a duration of five years. The award agreement cs 390 1ac authorizing general manager to negotiate and execute rational Service Agreements each with an amount not to exceed 4 million and a duration of five years. C award agreement cs 1000 authorized professional Service Agreements amount not to exceed 2 million and with a duration of four years. D, work Contact Number. He2779 in the amount of 523,400 to lowest qualified responsible response and that are gdb and sons construction. E, except number number debbie w55a art authorize final payment to the contractor the total contract amount 1. 7 million except after except contact debbie wfriday five into the contact 21,039 on this authorize final payment to the punch. G, work Contact Number 33 599 of 1. 8 million h, work Contact Number Debbie Debbie602 in amount of 3. 1 million i Contact Number recovery 603 for total contract not to exceed 7. 7 million j, or Contact Number 612 in amount of 4. 8 million to precision engineering. K a work Contact Number Debbie Debbie 617 for total contract amount not to exceed 1. 8 million l, authorize the fiveyear vocalized to sunnydale invites wouldve to use approximately 24,500 ft. 2 of ff pc parcel 152 in sunnyvale california. I . With any commissioners like to remove any of the items from the consent calendar . I moved for approval. Item 11 can remove item 11 item 11 is the next item. Were not there yet. Suzerainty Public Comment on the consent calendar . Directs all those in favor say, aye. Opposed, nay. Without objection, how they to continue item number 11. To to the july 14 meeting. Is that the meeting . Yes. It is no objection from any of the commissioners, will continue that item. Next item, please. I am 12, authorize memorandum of agreement with several the bayers largest public water agencies for an amount not to exceed 50,000 to develop a area regional reliability plan. Is a motion to approve this item . Any questions for mr. Richie . Any Public Comment . All those in favor say, aye. Opposed, nay. The motion carries. Just one request of mr. Richie, i would be useful if you could distribute again theres the map that shows the regional projects. It really goes to some of the goals concerned about theres a lot of projects bay area is tied themselves together in the response another one is drought seismic events or other related events. I didnt be useful for the commission to see the extent of that program. Yes. With the caveat that many of those are buried. The just ideas, lines on paper. Some are more developed some unless. But all of the trust. Can i ask you a question on this. Would you anticipate the plan being in draft form . This, i think, were anticipating probably about a year. A year yes. The great get some regular updates on how its going because i think its very innovative and important project. Thank you. Item number 13. Has that officially been removed . We dont need to continue it as they will continue it to july 14 without objection that i like to continue item 13 to the next meeting as well were to july 14 next time, please item 14, authorize separate agreements to provide a Credit Facility authorized under 22 proposition kathy for the wastewater Enterprise Commercial Paper Program with bank of america and bank of tokyo mitsubishi and authorize to extend the terms of reimbursement on the quiddity facility agreements with bank of america for an additional two years on substantially the same terms without further approval of this commission. Good afternoon commission. Charles cfo. Before i jump into the santa monica let you know weve given you replacement agenda item at your desk there. In the version online the root couple extra redundant pages. Duplicate. Which is getting the clean version here. Just for the record. This item before you today request your review and approval onto Replacement Bank agreements. Support our wastewater commercial Paper Programs. These agreements are placing to expire agreements that are expiring next month. As a reminder, we have a 500 million commercial Paper Program that are wastewater enterprise. That serves as a bridge financing opportunity for Capital Projects in between are larger that no bond sales. This commercial paper is backed by Bank Agreements, which provides a guarantee paper investors that their investment will be repaid should there be an issue with her investment. I just have a couple slides to share with you. Again we have a 500 million commercial Paper Program thats been in place for several years. The item before you today is putting in place two new agreements were to expiring agreements. The agreements that are expiring are put in place three years ago, back in june 2012 and we had a competitive rfp process and we reach out to different banks and got four responses. The two, the lowest bidders are before you today are bank of america and bank of tokyo so again to place these agreements. The other good news that happened since we put these agreements in place three years ago is the price has dropped. The cost is less. Cost of actually been reduced by about half resulting in anticipated ratepayers savings over the next couple of years about a little over nine or thousand dollars. So thats good news. Heres just a comparison. We like to show this commission and those of you watching at home, some of the details of these because the documents can be somewhat voluminous. Ill talk about that more in a moment. This chart just shows the expiring agreement over proposing as replacement agreement next directed first, you will see union Bank Agreement is expired. If a new agreement were posed to replace that. This bank of america at the 75 million level, placed as i noted is dropping in half as youll see right there in the middle from 0. 65 down to about a third of 1 . For two years agreement. Make of tokyo agreement in the third column there, waxy proposing to extend that agreements to lower cost for an additional three years. But total of six years. Again, 0. 35 . Just when around one third of 1 . So its about half the expense of the current deal. As i noted, theres typically with a category of items that come before you theres a lot of paper on electronic version. I just want to walk through the documents that are in front of you just quickly. We have the facility agreements which are the actual agreements with those banks for this Credit Facility with this letter of credit to so, theres one for each of the two banks one for bank of america one for the bank of tokyo. Get a few letters which goes into the details of the cost and the pricing gesture review. The issuing and paying agreement is the agreement with us. The sf puc and us bank serves as essentially as a trustee to move the cash around to make payments to investors and for us to get our money when we issue the commercial paper. The Offering Memorandum is what the dealers bring to the street in order to sell our commercial paper and again that the agreement surrounding that transaction. Then, the dealers are those entities actually go and saw commercial paper when we do need. So, always her failer boilerplate agreement cinnamon updated for these two new banks and the one other thing i want to add that this item authorizes the general manager to extend the bank of america agreement as well get again, were posing is a twoyear agreement for bank of america and should the terms be acceptable to both the bank and for the sf puc, we work to the general manager to extend that agreements for up to an additional two years. That authorization has been included in this item. With that, im happy to take questions you have. Questions, comments . Is there a motion . On the commotion. Second Public Comment . On this item . All those in favor say, aye. Opposed, nay. Thank you very much. Next item, please item 15 public hearing discussion and possible action to adopt many rules and regulations for ministering interruptible Water Service during the effective period between 20152016 drought program. Hello, mr. Rich. Would commissioners like an update on this item . Briefly, this item was bought back at the request of the commission where it adopted two meetings ago rates as well as the drought package where we are reducing irrigated usage by 25 [inaudible] we also included 25 adoption for irrigation for interruptible customers. We did have a onetime 100 excess use charge for normal customers and a twotime interruptible excess use for interruptible customers. As you saw from the demand chart earlier, reducing demand isnt the issue con. Demand is really low. So, its a matter of whats the most equitable thing between interruptible customers and regular customers. What we prepared here for your consideration is changing the interruptible reduction from 25 to 3 and closing increasing the excess use charge from increasing the excess use charge from 2x23 times. Manager telling i had some conversation about this. Theres concern from some of our interruptible customers that 30 village theyre already doing a really good job and that concern him and him make that, so i would offer for the commissions consideration simply bumping up the excess use charge. So the penalty is really their sony doesnt perform. Thats one way to publish equity. The others to increase percent reduction but again given demand item of cleaning to do that at this point. As we get into next year, that something whether we need to talk about it we would table in your that shows it getting up to 50 if everybody thats where the rubber would hit the road because we