Were you talking about benefits . The benefits packages, the conversation approaches, you know, different approaches, right, so were spending time trying to understand what the full compensation differences are between the two workforces, between the two represented workforces, and thats just part of the ongoing work that we are doing. As i say, i think we are concluding in this plume and airy report that there are longterm benefits. We think there are durable longterm costsaving potentials to customers. This opportunities for timely and cost efficient grid modernization, you know, solar plus storage for resiliency, sharing solar, you know, across rooftops, e. V. Charging for customers, cars, scooters, that whole opportunity. We have meeting the citys priorities unaffordability and clean energy, safe, reliable, the Workforce Development that we were just talking about and equity. Community directed, community accountable electric service in San Francisco is a prospect we are looking at here. That concludes the review of the options and i want to take us through a few of the next steps. The report concludes that the study work should focus on acquisition of pg es electric assets serving San Francisco. That focus will include assessing which particular assets to purchase, the current condition and value of those assets, our own internal operational readiness for the organizational readiness, assessee equity impacts, understand the impacts on the remaining pg e customers and develop a transition plan. The timeline for this is accelerated and influenced by factors outside of the citys control. Pg e filed for bankruptcy and that timeline really accelerates the study. We have one known point on the calendar and that is that pg e has the exclusive right to form a plan of reorganization until september 29th. We are working within the city to position the city to be ready to engage. Our next steps really are centred on helping San Francisco answer a big question and that is, can San Francisco purchase the assets, invest in separation costs between the pg e system in the system we would own, provide affordable, reliable, safe public Power Service consistent with our values on clean energy and equity, well meeting our financial requirements . With that, i would like to thank you for your attention and i am happy to answer any other questions you may have. I have a question or a potential edit for that big question, which is, you know, coming back to the climate question and if theres been any analysis done on what the benefits to meeting our climate goals or reducing our emissions or, you know, if youve thought about any of those related questions in the same way that we have with clean power s. F. , putting that out there is a real goal. Since we are already providing most of the supply, this acquisition is really looking more carefully at the changes associated with owning the grid because we already have control over the supply piece. Maybe it is not an emissions question it is a resiliency question, it is an infrastructure resiliency question in the face of sealevel rise, flooding, all the things that were talking about contextually that the p. U. C. Manages. Sure. And looking at the Program Opportunities that really build on that ability to modernize the grid and give us more options. Correct and in light of some climate disaster that we are better prepared if it is under our control. Right. Thank you. It seems like the big question is a matter of, i dont want to simplify it, but giving information. It is not like something that is in the sky, i mean this is very logical in a logical way to approach it to answer this question. Each of these elements have a cost component, cost assumptions underneath it. Can we, with expected revenue stream coming in, afford all those costs . Yes. Can we, but like anything else, you figure out how you can if that is something you want to do and then you need to know those costs and then you figure out how you can. So the question is, to me, do you want to . Because you can figure things out, i mean that is what a city does. You figure things out that you need to have to do, so what are we doing to get some of the issues that may stand in our way resolved . We know certain revenue that we have. We have 300 million coming in that we can use yearly and then other revenues that are coming in. What is some of the other questions, or what is our timeline for getting the answers to those questions . We are working diligently under the assumption that the timber 29th date, the bankruptcy judge has put before pg e is when they will want to say what their plan is and so we would like to be able to have our answers so we can engage with them ahead of that and be part of a plan, part of a solution. Pg e is in bankruptcy because they have financial obligations they cannot meet. What we are proposing is to purchase the assets that will bring cash to that table, help them meet those financial obligations. You said that so we do have a plan. I guess by september 29th we will have to know the answer to some of these questions. Correct. That is what we are working on now. That is the target we are aiming for today. So the thing i want to put out there is that taking over the distribution, we are not taking it lightly and, yes, we can say, yeah, we will do it, but we have to be thoughtful because if we are successful, it is ours, and if i come back and say, well, then it will be there will be some challenges, i would imagine. So the first thing we are doing is we are actually, with the information we have or can obtain, we are trying to see, you know, what their assets are worth because you want to give a fair market value, not just what they want you to buy it for. It is what it actually is worth. And the other thing is, given the costs that are coming in, what does that mean . How much can we actually afford, and believe me, if i can purchase it and i cant maintain it, then i would recommend not purchasing it. You have to have all the components. So that is why we want to look at all these components, see with the costs are, and maybe instead of, oh, we want to underground every block or whatever, maybe that is not a realistic goal, and so these are the things that we want to come back and say, hey, this is our priority. These are all the things we want , but to actually make this happen, this is what our recommendation would be. I guess my concern is, can San Francisco purchase the assets . I want to know, when will we know whether we can or not . What are we doing to find out because then the question is like this big, a looming thing, and actually it is big, but what you are saying is you guys are looking at what it looks like. Maybe the next one could say, this is where we are in the can, in the question, and i would like to see if we can answer the question, like when we would he have when would we have answers to the question. The report says we think we can, knowing what we were able to put together in the period of time we were given. We didnt stop there, though, we are continuing to look at these aspects of the question, you know, assessing which assets we would purchase, and the current condition and value, looking at our operational readiness, that goes to what our costs will be, and looking at the System Engineering impacts, that has helped us understand, along with condition, can we continue to afford to operate it in a safe and reliable way that is affordable for san franciscans. So the preliminary answer is, we think we can, but we need to dig deeper to really understand if we are ready to take on this responsibility. Not only that, we havent engaged pg e, we havent engaged the bankruptcy judge, i mean there is a whole side that want to maximize if they are willing to engage in them, so that is something that we havent done and we brought in some folks who can actually help us in that arena to help us manoeuvre or in the bankruptcy court. But i think, excuse me, the question here is about San Francisco, you know, it is about can San Francisco purchase . And i would just like to know, how far are we along in answering the question . And when we have gotten into a better situation to answer the question that we will know that, and we will say, we have three out of the five here, and then we will know more because this is the question. People could say, you know, it needs to be a little bit then i would like to hear more about the answers. Sounds good. Thank you. One question on that. A key part of that question is the condition of the asset that we would be acquiring. How transparent is pg es accounting within the structure that was established, was this the kind of thing that you can do a deep dive into their financials and figure out, you know, age of assets and that kind of thing, or does Due Diligence require a more hands on look at it approach . Because it is not entirely transparent, what the condition of the assets are, what the age is, we know the average system agent reported. They report the average system age of their process of their assets. We dont know the average located in San Francisco. Our expectation would be if you find ourselves with authority to make an offer to pg e, that was the conditions on additional diligence on issues like that. I think there is concern about what existing cross subsidies there might be. Do the urbanized parts of their Service Areas subsidize the rural areas versus the other way around . And both of those outcomes have impact that were subsidizing the rest of the system, then separation is a problem for the rest of the system. If they are subsidizing us, the revenue may not cover the actual cost of maintenance or replacement. We would continue to be paying transmission costs to the bills we receive through the independent operator that reimburses pg e for transmission assets that they own. When we talk about the subsidies , it really is narrowly goes in because we are already providing supply in most of San Francisco, we really are talking narrowly about distribution related charges. Thank you very much. Are there any Public Comments on this presentation . Thank you, chair. Im here for the record. I have lived in places with both public and investorowned power and i believe in public power. We have our larger neighbour to the south, los angeles, with their own department of power and water. They have been serving 100 of los angeles for quite a long time and they own transmission lines and power stations and do lots of things for their customers, and in new york, where i came from, i am a product of albany, new york. We have the New York Power Authority which provides many, many things, including powering the legendary and historic new york city subway. We have some things in common here. I think, to benefit this great city that i enjoy, i think it is reasonable to consider the idea of purchasing these assets and forming some kind of a municipal utility district. So that way we can keep that money in San Francisco and build the kind of Power Distribution system that we want, and we the people can come and talk to you in Public Meetings about it like i am doing now. Beyond that, certainly, how can we get as much of this inhouse . In looking at the map, seeing that you run a line to newark, that we could run a line of our own from newark to hear to capture some of that. That idea is not new. Amtrak has its own Transmission System in the northeast corridor for powering their trains that run through that 450mile stretch. A looking at the beginning of this presentation, i sought disconnecting numbers. We have 385 megawatts of generation capacity, which is a really good thing, but yet i see we only have 150 megawatts of that generation being offered to this approximately 3500 customer accounts, so theres 235 megawatts that are not being shown in the report, and i think that certainly warrants some outreach for clarification because if we are making 385 megawatts, we should be deploying that in using that here in the city, so hopefully somebody can reach out on that sometime. So i think it is reasonable for us to take on this challenge of building the power grid that we want. It will be an investment, not a cost. Thank you. Thank you. Barb, i dont know if you can respond to that question offline on the missing 235 megawatts. That would be great. Thank you. Any other Public Comments on this item . Hearing on, next item, please. Item nine is a bay area water supply and Conservation Agency update. Good afternoon. Good afternoon, commissioners i am the c. E. O. Thank you for having me here today. Im here to speak briefly about the future dry your water supply for the customers at the San FranciscoRegional Water system in alameda, san mateo, in Santa Clara County whose interest i represent under state law. In 2002, the California Legislature enacted aba 1233 that mandated the system be rebuilt to withstand a future large earthquake that could threaten the health, safety, economic wellbeing of those people, businesses and communities. It also required San Francisco to report to the state annually about quote, the progress made during the previous calendar year on securing supplemental sources of water to augment existing supply during dry years , end quote. That means not just looking for supplemental supplies, it means tangible progress in finding and developing them. The p. U. C. Focused first on rebuilding the system to ensure the safety of the water customers that rely on it. The system put together a large skilled organization to complete what became known as the water system improvement program, a massive fourpoint eight billiondollar Capital Improvement program. It is reviewed annually by the state of california and monitored closely by mosca today , the system faces increased risk of significant drought shortages. As part of this, we have focused on developing new groundwater supply and restoring existing drought water supply. These efforts are insufficient today to address the magnitude of the current projected supply shortfall. If the current plan provides more water for fish in the river is mandated and a voluntary agreement is rejected, the loss of water for agencies and customers will be very serious. The p. U. C. Has estimated that they it could result in a loss of 90 million 99 gallons of water per day. It work work it could require a 50 reduction for residents in the service area and corresponding reductions for businesses, Community Agencies that support them. Losing that much supply would severely impact people, businesses and communities that rely on the system. Jobs will be lost, much needed housing will be delayed and our communities will suffer. Furthermore, the sipc must make a decision by 2028 about permanent customer satisfaction. We believe the governor and the strong water team supporting these counties will continue to support a voluntary agreement, which they have done aggressively so far. The current negotiations can be concluded with benefits for the fish and our residents, and the businesses and communities which depend on a reliable supply of highquality water. At the same time, the p. U. C. Must build on the Lessons Learned in a meeting the challenge and develop critically needed new supplies to ensure drought year reliability in the region. The sfpuc should now focus on developing new sources of supply in the same manner that was successfully implemented. As a water supply program. With clear objectives, persistent focus, a dedicated team and a plan for successful execution. Bosco will support the p. U. C. To develop new supplies as it did with the implementation of the agreement. Thank you for the opportunity to make these comments. I be pleased to answer any questions about this or anything else. Thank you. I think that is a very wise recommendation which we will take under consideration. Thank you very much. Im just going to say, we had the opportunity to talk to nicole about it. I think that we share a lot of the sentiments in her comments. I have will say that you will see part of our budget that we are going to start asking for some new positions to focus on water supply and then we are planning to Work Together and talk about a framework where we can actually make this a program and have someone help facilitate and deliver these alternatives for water supply. You will be seeing it in the upcoming year as part of our twoyear budget. I very much like the idea of designing it as a plan. I think we need a water supply plan, especially in light of all these challenges that we are facing and then i think the program then supports single mentation of the plan, and i think it would be really interesting to frame it as such so that when the positions are proposed in the budget, it is really implementing a plan that has specific goals and objectives so we can meet our supply and whatever the state mandates and protect our ecosystem. Thank you very much. Thank you. Any Public Comment on this item . Next item. Other Commission Business. Commissioners, any other Commission Business . Comments . Any other Commission Business . Hearing on, next item. Item 11 is a consent calendar all items are constituted as a consent calendar and are considered to be routine by the San FranciscoPublic Utilities commission and will be acted upon by single vote. Be no separate discussion of these items unless a member of the public or the commission requests, and then it would be removed from the calendar and considered as a separate item. Would any commissioners like to remove any of the items . Yes, i would like to remove item be. We will remove item 11 b. And here that separately. If you could go ahead and please read the other items. I would also like i have a question about item c. Okay. Would you like it removed . Yes, please. Item b. And c. , and then if you could read the other items. I generally just read the summary you want each item . Just a summary. Okay. I have read that. Okay. So before you, we have a consent calendar and consists of 11 a. , d. , e. , f. , g. , and h. Is there a motion to approve those items. Move. I will second that. Any Public Comment on the consent calendar. All those in favor . Aye. Host . The consent calendar passes. Now we will opposed . The consent calendar passes. Author is a general manager to execute on behalf of the sitting county of San Francisco a memorandum of understanding the san joaquin budget of education to meet their workforce requirements for the water and power capital plan through the worker participation in san joaquin and Mariposa County through an agreement with initial term of three years with an option to extend for an additional two years and for an amount not to exceed 758,000. Good afternoon, commissioners i just want to give you a quick summary of this item and then ill be happy to answer any questions. This item continues our Successful Partnership going back almost a decade now with the San Joaquin County of education for our projects that are outside of San Francisco to put people to work and train them from the communities that are up there. We want to put the local resident set her up there to work. During the last several years, we entered a True Community collaboration that takes the community, the trades that are up there, the contractors, service providers, educational institutions, and even government entities, and we even engage the first peoples and the native populations there, and their elders, and did a true collaboration with the union sitter up there that includes the labourers, the carpenters, electricians, pipefitters, lasers, and operating engineers and put folks to work. I presented one of the biggest successes of this when we initially did it two years ago on my birthday in may, and we recognize the first 100 all womens cohort that we did we try to prioritize women and put them to work on these projects that are outside of San Francisco and to these counties participating on our projects as local workers. We have completed four full pre apprentice construction cohorts, one for construction administration. To the question youre asking less commission where you said if there are professional services or other types of jobs, how folks can participate, we successfully completed those as well, we put 60 folks through the training and completed it and place them and put them to work, and our most recent cohort , im really proud of the work that valerie, brian, zelda, and our Community Partners did. They put 100 of the workers on to work that completed the training. This item authorizes us to execute an m. O. U. With the county of education to continue that work. Thank you. Thank you so much. I would have liked to have seen more numbers, you know, and get an idea of what is our expectation, you know, mentions that we are trying to replace people. What are our goals . What are we trying to achieve and how many, and over this three year period, how many do we hope to see, and what trades or what ever that they will be in, and i guess what is most needed. And what is the population . When we talk about upcountry, what are we talking about . Who are we talking about, what is the consistency . I would like to see reports so that we know exactly what were doing in making sure that they are getting what they need and we are getting what we need and our money is being well spent, which im sure it is if you are in charge. I appreciate it. We would be happy to provide this. We will come with more items and we will have this data. I mentioned the trades that are involved into we will be working with. And we have a very, very good robust data set. The partners are here so when they come they can tell you about the details. We will come back and tell you more about how were doing and the efficacy. When should we expect that . I would say even probably we have regular reporting on a quarterly basis. Im happy to provide data. That data, for me, is extremely important. Whenever we have it, i would like to see. Everything these days is datadriven. Can we put this on the agenda for you coming back after your next Quarterly Report and were present present this information . Sure. I can submit it, and if you have questions, i can come. That sounds great. That sounds great. I would say both. It is a great story to tell, you know, all the stuff you were doing up there. Thank you. We do have a couple of Public Comments. Maybe we can hear a few of the stories. I have the first one from julia stevens. Good afternoon and thank you for your patients. Thank you. Good afternoon, commissioners. Thank you for taking the time to hear us today. I am the lucky person who gets to be the project coordinator for the construction pre Apprentice Training program. I work for the San Joaquin County office of education we partner with sfpuc to implement this program. I have been able to corneille for the past two cohorts and have learned a lot along the way , i would be happy to try and answered, to the best of my ability, any of the questions that you might have. I was just going to describe a little bit to you about, you know, who some of the individuals are that come through our program and what it has done for them, so i wasnt nervous until i got up here. [laughter]. Its okay. Speaking of the last cohort, we had 15 graduates from that program and for both that cohort and the last one, the majority of those individuals come from, you know, a background of having to overcome a lot of obstacles, you know, we partner with probation and reentry, and a lot of our participants come from mad and job training, and those folks have overcome addictions, are in recovery, have records, and are having a challenging time getting into the workforce. They are ready to work. They want it, they are eager for it, but often times, you know, they find that they cant get a job that supports them and their family, and allows them to become successful, so who sure you guys know some of these kinds of stories in your city, so what has been amazing for me is to see folks who, you know, want that opportunity, to be able to come in and work with mark carpenter, you know, our instructor, and go through our seven Week Training Program that we have and really, you know, take in, you know, we followed the multi craft curriculum, and they get that certificate. It is like the fundamental carpenter curriculum that they go through, and now have that background of getting them ready for the construction trades, and then during the time we are also working on soft skills, you know , getting ready to get out into the workforce, you know, getting out in the warehouse and building mock frame ups and concrete forms, bless you. [laughter] concrete forms, framework, you know, they do all sorts of side projects for us. They really need to understand how to use all the tools that they would need to use if they were walking into a construction sight mac on their first day of the job, having the basic fundamental understanding. And then, you know, we do lots of field sight visits. We bring in contractors and other businesses in to meet them so they can practice their facetoface encounters, and also start to network for their opportunities, and so like was mentioned, 100 of the people from our program are not working in the construction trades from this last cohort witches to me, just amazing. It is really exciting. Eight of those seven of those are in union positions, and eight of them are nonunion. Does that mean my time is up . I have a question. Okay. I can ask her a question. On my gosh, i lost my train of thought. I guess my question was, do you have a program or something that tells you how long they stay with that employer . We are tracking, you know, our participants, zelda, who i work with at sfpuc. She helps me. I will try and call and get a hold of them. Some of them from the first two i cant even get a hold of, but we have, you know, records of where they went, and several of them, we still get hold of them and know they are still in their jobs and still working for companies. Or they are working for the labourers and moving from site to site. Is there anyway you get back to them and they can tell you what has worked for them, what hasnt worked, seek and strengthen and talk to the employees need to be talked to or whatever. Absolutely. I definitely want to grow this program and improve it and i think the most significant way, the best way you can do that is by taking feedback from everybody that participates in it, especially the participants, so what they wish they couldve had in the program, what they could have done without, what they would like to see added, we just having a couple of weeks ago when we talk about the feedback that last cohort were and where we would like to go with that. Thank you. The next card is from hector lopez. Good afternoon. Good afternoon, commissioners im very honoured to be here. My name is hector lopez. I work with the Carpenters UnionApprenticeship Program. I went to the program myself 20 years ago after graduating from u. C. Berkeley and getting i found myself not making enough wages to pay off some of the loans and there wasnt very many good jobs, so i found out about this Apprenticeship Program from the union. They got me in, it has been 20 years of great infrastructure building with blueprints and plans and it has made me who i am, that is why i work with the Apprenticeship Program. I have 12 Years Experience as a coordinator, 46 counties, from fresno all the way to the oregon border, working with nonprofits that run from high school which shops to junior colleges teaching construction, to working with nonprofits, and ive got to say, i am very impressed by the program. First of all, they have a perfect combination of instructors that came from our trades, that does the pre Apprenticeship Training to kind of guide them and nurture the participants to survive on the job sight that is union paid wages. We have had ten individuals come into our Apprenticeship Program, our four year program, and i believe we have about six participants that we so far checked because we didnt track the first. They are in there if we can find them. One of them is a female participants. She is almost a two year apprentice working on a job. When i went to visit this graduating class, i went to my job site and talked with her and i said, hey, youve got to come back to the class to talk to them about how your experience has been is a female working in construction, making these awesome wages. She says, i cant get enough time off work. When theyre going during the day, that it there is all the work going on. So there is alumni that are currently working with the Carpenters Union, and our program is about 40,000 investment for four years. They start off at 30 an hour in the bay area scale and they get raises every 5 every six months, so we have a waiting list maybe of two years to get into our apprenticeship because we have an m. O. U. That we accept five of the top students and so far the last three years, they have had great placement into our program, and the proof is in the pudding. They have graduated, the program graduated and put them into union jobs, about half of their participants, and the nonunion i cant speak about, but any union job is a career, it is not a job , so i just wanted to let you know that i encourage you to keep supporting this program while youve got the team together. It is the perfect combination of nurturing these individuals from those communities. Thank you. Thank you very much. I have a card here from mark carpenter, please. Good afternoon. Hello, commissioners. My name is mark carpenter, i am the instructor of the program. First of all, i want to come to you with a sense of gratitude for everything you have done for helping to fund this program from the very inception of it, and the input and successful structure it has had within the community. If i was sitting in your seat, i would want to know how effective it has been and how many people were placed and what was the interest from the community. I can only tell you that every year we have done it, our outreach has gotten greater within the community. We have reached out to more contractors, more politicians within the community, place more students, and sharpened our skills as far as placement and finetuned everything we did, every time we have a collaborative, we sit down and say, well, what did we do wrong, what did we do right . Kind of like what you guys have done pick this year, we placed 14 out of 15 and our goal is 100 , our goal is always to reach out to more contractors, reach out to more unions, and to refine the training so it is more effective so that when they go to work on your project, that day are the best workers on the site and they are the best trained and they are the most effective, and that the community has a positive feeling about the program that you help fund. I think we have had a positive impact, and i know that everywhere i go within the community, every year it becomes more and more where i go someplace and somebody reaches out to me, but their hand on my shoulder and says thank you, and more and more people within the community are taking notice and it is becoming more and more effective. Theres nothing like taking somebody who walks into your program depressed, angry, im not sure where they will go in life, and they walk out and they are on fire. They are on fire to compete, they are on fire to be successful. All you have to do is walk down the street hearing you can see a whole lot of people who are disenfranchised and your program has helped enfranchise people within this community, and if that could only be amplified everywhere, it would be powerful and it would have influence wherever it goes. You have done a good thing, and you have funded a good program that has made a powerful impact on a community. I just want to say thank you. I dont know how else to say it. We place people with the Carpenters Union, the labors union, the electricians union, and we are only looking to become more successful and refine everything that we do. We take it to heart. Everything we do, read refine it every time we get done with a collaborative, we say, what did we do wrong, what did we do right, and how can we make it better, just like you do. I loved hearing what you guys said about taking over the power grid and everything. That is kind of like what were doing. We are saying, how do we improve this, how do we refine it, how do we make it better. Thank you. Thank you very much. Any other comments from the public . I know there are a fee are a few more people here. Would anybody like to say a word or two . Commissioners, any other comments . No. [laughter] if there are no further comments, i will take a motion on this item. I moved to accept. I will second. Is that motion contingent upon a commission receiving a Quarterly Report . No, it is not contingent, but i would like to receive one. [laughter] motion to approve. All those in favor . Aye. Opposed . Motion carries. Thank you all again very much for your good work. Thank you [applause]. Next item, please. Eleven c. , approve an increase of 1 million to the existing contract cost contingency and an increase of 250 consecutive calendar days to the contract duration contingency of contract number 88989, home power house re habilitation and Oil Containment and authorize a general manager to approve future modifications to the contract for a total contract amount of 11 million, and a total can contract duration of 891 consecutive calendar days thank you. My question is that the cause for this item appears to be a late notice to proceed, and im wondering what the issues were that caused that delay. It seems like a costly one. Good afternoon, commissioners dan wade, director of water capital programs. Is primarily related to the trends of the turnover of the old Financial System to the new Financial System and the challenges that we had been getting notices of these issued during the time period. Is a time period where we needed to get the funds in place and we couldnt get them in place in time to get that notice. Did the commissioner characterize it properly that it was because of the system error that it became so costly of a delay . So there is a delay the cost is not totally dependent upon the delay, there are other issues that are associated with it, there were other issues during construction that were encountered, but a portion of the cost is related to the delay im sorry . It looks like we lost a construction season. We did, but thats not, so we didnt lose a full construction season, what we lost was an outage that was scheduled, and so the work had to be done during that outage, and because we missed that outage, we had to wait for a future date, at which time it could be scheduled . Scheduled. I thought it was also because there was a hard part that was supposed to be replaced, and, you know, because it had to be shut down, but that is what i read, 795 that is a separate issue. You are absolutely right. That is a separate issue, so we do need to order that equipment and put it in place during that same time period. Okay. It is regrettable that the systems can have such an impact, and we dont really have any recourse on that. The controller will not make that cost up to us. Understood. Would you like me to send them a letter. [laughter] i will talk to them personally. [laughter] is there a motion to approve this item . I will move it. Is there a second . Second. Any Public Comment on this item . All those in favor . Aye. The motion carries. Next item, please. Item 12, approve the form of evolving credit and Term Loan Agreement with Toronto Dominion bank in the Principal Amount not to exceed 75 million in a term of three years they five your option to extend for a total potential term of eight years and a not to exceed annual fee of 250,000 to place an expiring agreement of their wastewater interim Funding Program. Good afternoon, commissioners deputy chief financial officer. This item before you is, as noted, the approval of a Replacement BankCredit Agreement that supports the interim Funding Program for our wastewater Enterprise Capital projects. You did have a similar approval at your last meeting, so much of what you see before you is very similar to that at your last meeting that was for the water enterprise facility agreement, and this is for the wastewater enterprise. I have a few slides to share with you. So just as a reminder, commissioners, our wastewater enterprise has an interim Funding Program otherwise known as our commercial Paper Program that is authorized at 750 million. There are six series of agreements. Because that program is so large , we had to break it down into several agreements, and so one of these agreements that is in this portfolio of Credit Facilities is expiring, and we are looking to replace that with the item before you today. In terms of the action item, we are requesting approval of a 75 milliondollar facility from Toronto Dominion bank, otherwise known as t. D. Bank. It is replacing our series a four and usg Bank Facility expiring next month on july 10 th. We did give the commission a heads up on the need for a replacement facility when we created the Capital Financing program that was presented to you last september. Heres some information on the agreement and the terms. This bank was selected by a competitive r. F. P. Procurement. We sent this to 12 different banks and we got seven responses , which is actually a pretty good response rate. The are recommending a 75 milliondollar facility from t. D. Bank, which was the lowestcost responder. The agreement would be for three years, at an annual fee of 25 basis points or a quarter of a . That represents about 180 180,000 annually. There is an option to renew or extend the facility for an additional five years if we need to do that. As i mentioned before, t. D. Bank is a highgrade bank with strong shortterm ratings, as noted here. And then the last point on this slide is that we are, the market has improved for these facilities so we are actually being able to renew it with an agreement that is actually coming in at lower cost than our existing expiring one. We will save about 94,000 a year with this replacement. So today, commissioners, we are requesting approval of the forms of agreement with an authorization for the g. M. To negotiate final terms, and that these documents are in the packet before you. We have a bank Credit Agreement, a Fee Agreement which talks about the costs of the agreement , and the facility, and an Offering Memorandum which is the document that we share with investors when we go to actually issued the commercial paper. The last couple of slides are our standard formed for disclosure q. And a. I will walk through these quickly. The purpose of the agreement, the 75 million Bank Supports our wastewater commercial paper and capital programs. A subordinate lien to our existing revenue bonds, the cost is 25 basis points, 180,000, three year term. The method of sale is that we did a competitive selection to select the bank, and we have an Offering Memorandum which is in the packet that will be shared with investors. In terms of payment obligation, the sop you see is obligated to pay investors when c. P. Is due, and the purpose of this agreement is that if we are unable to make our payment, the bank will step in and make the payment, and then we will pay the bank back. These funds are paid from net revenues from our wastewater enterprise. The replacement facility will support our interim financing program. The closing itself doesnt mean that the p. U. C. Will borrow any additional funds, it just means we have the ability to issue commercial papers if we needed or if the Capital Projects need the funding. Our rates will be a little bit lower. We will save a couple cents a month, which isnt a lot, but it is something. I will take the savings. And there was no negative impact from this facility. It actually helps us. With that i will take any questions. He moved it. Second. So moved. Any Public Comment on this item . All those in favor . Aye. The motion carries. Thank you for the presentation. Next item, please. Thirteen is discussion of possible action to adopt a resolution confirming the general managers implementation of adjusted schedule of clean power s. F. Rates and charges to take effect on or after july 1 st, 2019 in accordance with the rate setting methodology adopted by the commission on december 11th, 2018 of resolution 18029. Good afternoon, commissioners my name is christina. Im the director of Financial Planning at the s. F. You see. I have a short presentation to cover the issue before you today , which is the clean power s. F. Rate implementation confirmation resolution. Again, a short agenda where we will cover the rate implementation confirmation upper in limitation for clean power s. F. We will review the Commission Approved rate setting methodology you all adopted in december 2018, with final rate implementation and adjustments delegated to the general manager additionally, we will review the customer bill impacts for clean power s. F. Customer bills after final rate implementation and adjustment. Todays action, i am seeking confirmation from you all as commissioners on the rate setting methodology adopted in december of 2018, and just as a recap, the adopted methodology did the following things. It authorized the general manager to adjust final clean power s. F. Rates and that those rates are based on final, published pg e rates so long as Program Costs are recovered, and customers receive savings in comparison to pg e if possible , and also that the longterm Financial Health is supported, including the funding of financial reserves for the program. The delegated authority was recognition at the time and the december projections of clean power s. F. Rates that you all saw her based on our best projection of pg e rates available at that time and that the date that the final pg e rates would be settled was not yet certain and that final rates would be implemented and adjusted consistent with the Commission Approved methodology adopted in december, and as a reminder, that methodology is here on the next slide. Just a mathematical methodology in english, the updated methodology included a pci a credit that the sfpuc can provide to customers. The purpose of that credit was to allow our s. F. To set rates in a way that offset projected increases that were projected at the time, and still keep clean power s. F. Customers bills competitive with pg e. The formula on the slide translates to the methodology into component parks. Parts. [please stand by] bills for residential customers based on, the final pg e rate. And on the lefthand side of the slide is what they had anticipated or best practice was, that was available. The twoday version of final rate and adjustments delegated to the manager, looking to the right slide for residential averages. The second slide is on small commercial customers. The average bill comparison, on the righthand side, the july 15 cleanpowersf. Based on final pg e rate today. And then on the lefthand side is what we had projected. Back into december 2018. Again, the biggest takeaways are with final rates implementation and adjustments. Based on final rates from pg e we are providing the greatest cost savings