Transcripts For SFGTV SF Public Utilities Commission 20240712

We have a quorum. Very good. Secretary can you please make the announcement. Mayor breed and the governor looked at the restrictions and the meet is held the conference and televised by sfgov. Tv. For those watching the live stream be aware theres a brief time lag between the live meeting and what is being viewed on sfgtv. Id like to extend thanks to the staff and i. T. Staff for their assistance during the meeting. Id also like to note on the published agenda there was an incorrect dialin number for this meet. The correct dial in number is scrolling on the live feed. If you wish to make Public Comment on an item call the number. Before you have the minutes of july 28. Are there corrections or additions to these minutes. Seeing none id like to open it up to moller caen are there corrections or are there comments. Please press pound, pound to speak. Are there any callers. Theres one caller with their hand raised. Ill unmute them now. Speaker you have two minutes. Clerk this is regarding the minutes. Mr. Moderator are you still there . Speaker, if you can hear us raise your hand by pressing star 3. Madame secretary they dont appear to be on the line. We have no other callers . Not at this time. Madame chair id like to move the item. Ill second. Thank you, madame secretary please do a roll call vote. President caen. Aye. [roll call]. Thank you, we are five ayes. The motion carries. Next item, please. The next item of business is 4, general Public Comment. Members of the public may address the commission up to two minutes on matters within the commissions jurisdiction and not on todays agenda by filing 14156550001 meeting i. D. 146 136 9319 and pound pound to speak press star 3. I believe were working on the slight technical issues so please bear with us as we accept calls. Mr. Moderator please start the first caller if we have one. Madame secretary i have three raising their hands but we dont know if theyre audios bridging. Well try the first caller. Clerk caller, can you hear us . Madame secretary, the callers are not getting audio from us . What do we need to do . Let me reach out to sf gov tv folks. Apologies for the error. We switched our Public Comment line from the at t bridge line to webex. This is our first go around. Apologies. Commissioner madame secretary do you recommend we take a brief recess while we work this out or stay live. Wait, eric yeah. Dont hang up, eric. Okay. Madame secretary, i think we have resolved the audio bridge issues. Clerk apologies, eric. Please start your Public Comment again from the beginning. Apologies. Caller commissioners, eric brooks representing california ans for Energy Choice and clean energy alliance. What id like to do is call four for you to call a hearing on resilience in three areas mainly related to electricity. That is resilience on local Electricity Supply and protection from blackouts. These all relate to the fire and covid and employment crises were facing right now that work together. So protection from blackouts and making sure our local supply is secure, protection from fires, wildfires and protection of reducing dependents on wasteful and longrange transmission lines and particularly because of the crisis were in we need to create thousands of jobs. We need to design our programs in the sfpuc to aim at the areas of local resilience to have protection from fire and electricity and have more jobs because were going to need them. This is going to relate to my comments on the future item but i wanted to make sure that and ask you to have a hearing on this. So we can flush it out. Thank you. Thank you, caller. Next caller in the queue. Caller commissioners, were having problems with the communication. I hope we got it fixed before we start Public Comment. So i havent heard anything about what is happening with sfpuc. What is happening with our general manager and manager of external affairs and if you think thats the right thing to do you are sadly mistaken. These people keep positions wasting millions of dollars, Community Benefits which i for one having attended so many of the sfpuc meetings created the situation at hand and you took mr. David anderson and you are very familiar with his name to subpoena these people who have been hookwinking us. So commissioners, there comes a time are you commissioners for the people or against the people . Because you know theres a lot of information over there. A lot of information that will send many people as many as 20 people to jail. Thank you very much. Thank you, caller. Next caller you have two minutes. Caller can you hear me . We can. Go ahead. Caller thank you. Mr. Caen and members my pronounces are she and her here with you. I believe sfpuc is about San Francisco. Ive been looking at various satellite images and i still wonder to this day why we only covered half the Sunset Reservoir in solar panels. We can get a few more megawatts if we covered it fully. Im quite familiar with it and ive looked at satellite images and think we can put solar panels on top of city hall and wouldnt be visible or detract from the architectural significance of that magnificent buildings and electric rates and i dont have the answer but the reason i think why delivery charges are so high is because the average kilowatt hour use is low. I think the answer is use more electricity and useless fossil fuel. Im a heavy user of electricity in my home and my delivery charges are extremely low so we have to be a voice and get rid of some of the discouraging baselines. Again, continue to work towards being in the municipal utility district and develop as much as possible within the city and county of San Francisco. Its a great city and to have the resilience that comes from having solar panels on rooftops and lastly, Energy Storage. No one should have to get worried about being stuck in an elevator but we should have batteries in buildings that have elevators to people dont get stuck. Thank you, caller. Your time has expired. Madame secretary, there are no more calls in the queue. Commissioner thank you. Public comment on item 4 is closed. The next order of business is item 5, communications. Commissioner commissioners, any comments on communications . I have a few myself. Under 5c im curious why the audits have been postponed to greatly. Commissioner caen, here with Business Services and chief financial officer. The abbreviated Office Report we have for you now is because our audit manager is replaced to the covid command center. The controllers office, auditor has varied staff currently deployed to the covid response. So the audit activity city wide has slowed down. And they perform much of the activity we wind up reporting on so its a combination. Oh, i see. I understand now. It wasnt terribly clear in the report. Maybe i didnt read it thoroughly enough, i dont know. Anyway, that makes sense. Sorry about that. Commissioner thank you. I do have a question about 5g inspection. 5d, sewer inspection. What were saying here is we have a shortfall of 10. 1 million. And that will continue to the new year as well, correct . Thats what im seeing in the report. Are you there . I apologize for the delay there. Commissioner caen, the figure youre referring to the shortfall im not sure i know exactly what youre referring to there. Can you please be more specific ill try to address your question. Commissioner you speak of the fiscal year 20192020 and 64. 7 million but we have a shortfall of 10. 1 million then you go on to say thats going on the same in the next fiscal year. I can address that. That wasnt worded very clearly. My apologies for that. Let me back up a second. So weve been providing a Quarterly Report on the gravity sewer rehab and Replacement Program for some time and as you noted in your comments for this quarter we substantially update the content and format of that report. It previously was a single scale and we thought it would be helpful to provide additional background on this. Thats the reason why you see the change in the Quarterly Report and certainly we would welcome the commissions feedback to continue to modify and improve this Quarterly Report. The reference to the 10 million shortfall isnt worded quite correctly. We made adjustments to that budget in response to the recent overall budgetary changes that came with the covid financial impact. We reduced the overall budget but we dont expect that to have net impact on the actual work because there was already approximately a 10 million plus gap in the actual progress versus the budgeted amount of money. So weve adjusted the budgets Going Forward but the reference to the 10 million shortfall is not worded correctly so well clarify that in the future. At the moment thet Budget Resources are not a constraint on the progress for the gravity sewer r r work. Commissioner so clarification, there is not a shortfall or there is . There is not a shortfall. Apology for the confusion. It wasnt worded correctly. Commissioner pong i think im commissioner okay. Im clear on that now. Thank you very much. Moving on i wanted to understand on the second page under table 1, unknown service material. You have copper at 84. 5 . What is that all about . Im the assistant manage for water. Let me pull the table. Basically we had inspected 386 unknown surfaces whether et was unknown it was unanother material the service was constructed of. Of the 386, 326 turned out to be copper, 23 turned out to be plastic and 29 turned out to be galvanized and 8 we were unable to determine the field and need to do more work on. Commissioner im curious why theyre unknown. They were unknown in the first place because they werent properly entered into the record and we have 177 Service Connections in San Francisco. So the number of unknowns if roughly on the order of 5,000 if memory serves and weve done spot checking to figure out what the unknowns are and make sure we can verify if they have [indiscernible] components in them. Well be work with them over time. We think the estimate that may have lead is on the order of 1,000 or so. Were doing field checking and slowly working our way through that to alleviate all delays in the system. Commissioner i see. Thank you. Madame chair, while were on the item, commissioner moran, as far as the lead testing in the schools what is the status. Sounds like 10 schools have been tested under our program. Whats the status on the others . When page of the report is that on . Commissioner page 3. The last paragraph above the heading. We tested all the schools in the School District and archdiocese of San Francisco. A total have 10 schools have exceed the action level so the remaidiation work being remediation work is being carried out by the district and arch archdiocese and we take it out and replace the materials. Commissioner but all schools have been tested . Yes. Commissioner thank you. Commissioner okay. Moving on i had questions on 5f. Specifically spread sheet the ninth item which would be cw37401. Were we aware of the humongous change laid out . This is agm howe for infrastructure. We were tracking that all along and knew the change was quite large. A lot of was due to geotech conditions. There is a multiple slide on the slope we were putting in the rear. Commissioner correct. I did know that. For some reason it stunned me to see the amount. Thats understandable. Thank you very much. Okay. Can you please open up Public Comment. Clerk Public Comment is open for item 5 communications. Dial 14156550001 meeting i. D. 146 136 9319, pound, pound and star 3 to speak. We have three callers. Ka caller you, have three minutes. Caller commissioners a long time ago i spoke and we need an assessment done again. One of the things that we need attention is water fountains do not have to be in the open but the raccoons and all go and drink from the water fountains and then our children are adversely impacted. Now, while you are reading the report, you found an inordinate amount of money spent on televaris. The same thing happened before where a million tons of dirt had to be removed because of crevasses found because testing wasnt done properly. Now we have another situation. So we the people, we the taxpayers want to know why is engineering so lax. We want to know that. What happens in this dynamic is you have these Virtual Meetings and the joke is we could get some of the documents, the reports, you know, commissioners, i do due diligence. I dont care if theres even 3,000 pages and you read about it and you do a Needs Assessment and then when you come for Public Comment like today, you can speak to the topic. Now, we are last on the dock. Thank you, caller. Your time has expired. Next caller you have two minutes. Caller im dave warner i want to make a comment and thank president caen for their line of questions i think that kind of questioning and dialogue is useful for everyone. Thank you. Thank you, caller. Madame secretary there are no more comments on the queue. Commissioner item 5 is closed. Next item, please. Clerk next item is item 6, report of the general manage. Caller can you hear me . A little bit. Caller can you hear me now . Yes. Caller okay. Just want to the give you an update a covid update. As you know San Francisco the opening plan remains paused as we continue to try to slow the spread of virus. The p. U. C. Continues to follow the state and city guidelines across all of our work stations and facilities and continues to support the cities overall response effort. Our Department Operation Center Remains staffed monday through friday and we are continuing to deploy team members on longterm assignments as you heard from agm sandler. We provide longterm assignments to the city operation center. As you may know, the school year has kicked off in the bay area and students are now going back to school virtually. We [technical difficulties] three, sometimes Flexible Work schedules are not enough to give employees all responsibilities and employees may need to take time off instead. So the citys direction is for employee to perform nonessential duties to continue working from home [indiscernible] spread of covid19. Based on this guidance, our business priority plans has focussed these past few months on doing as much as we can to ensure health and safety of our onsite employees support our community and employees and assess our workforce to determine if there is more we can do to reduce the number of employees coming on site. We are currently conduct workforce assessment to further understand the reason and requirements for bringing employees on site. Essential field work is the primary reason but we understand teams are bringing employees on site for other reasons and processing or to work on Technical Resources that can only be assessed on site. This has help verify we are following the guidelines as determined if there are additional barriers to telecommuting that can be addressed headon. Per city guidance the percentage of employees physically present in Office Environments for work sites should not exceed 20 of the employees assigned to the site. This does not impact general safety. We are also the outcome of our workforce assessment to develop a framework for supporting managers making ongoing decisions on the revoked versus non revoked employee assignment. Were continuing to support our customers with our emergency Financial Assistance program. The latest numbers of our Program Shows we have over 5,800 applications for residential customers. We received over additional 100 applications of Small Businesses and nonprofit customers over this program. Over the past few weeks weve seen Great Success targeting the customers through a comprehensive Campaign Including on the ground in print and digital platforms. We can provide full report on this effort in the next upcoming weeks. By continuing to work with our customer employees and City Partners and others, well look to move forward of these tough times a stronger, better and more responsive agency. Finally, we are continuing to see great engagement through our innovations new virtual tour series that but us to continue to engage with our customers during this time. Its called the San Francisco Public Utilities Commission Source virtual [indiscernible] is what its called. Were using existing resources and experts of water, sewer and power programs. The past five sessions we average about 300 viewers each and tomorrow we will have an opportunity to lead a virtual tour of our public power program. You can sign up for the series www. Sfw. Org is the link. Its a great series. Next one is tomorrow wednesday at 1 00. All right. So again i want to thank you for your support. Thats my covid update. Commissioner so commissioners, any questions . Id like to mention that i did attend the coffee break last week and found it rewarding as we reached out to employee to make accommodations for the new life we all have to live educating our children at home and i certainly was happy hear about Flexible Work schedules and what were doing to accommodate the new life we are all living. Commissioners, any comments . Madame secretary can you open it up to Public Comment . Clerk members of the public who wish to make two minutes of Public Comment on item 6a dialing 14156550001, i. D. 146 136 9319, and star 3 to raise your hand to speak. Mr. Moderator do we have any caller . We have one. Caller commissioners, i want to make this Public Comment the city manager every time he makes hi covid report he talks about the Emergency Center and gives information about the novel covid19 Public Comment is closed. We have a situation in the southeast sector where theres either a pump or defect in the piping where i would say sewage has been accumulating and the stench can be smelled for an area of two miles radius. This has been an ongoing situation for the last one month i have addressed this in an email not to everybody but to the key people to do something about this situation. And we have a situation in the griffith Public Housing where they do not have proper ventilation so this smell every time theres a 40 or 50 mileanhour wind blast the smell comes to the Public Housing. And we have the San Francisco state park. The only state park in San Francisco with a lot of garbage. All creating a cumulative impact adversely impacting the citizens. Thank you, caller. Your two minutes has expired. Madame secretary theres another caller in the queue. Go ahead, caller. You have two minutes. Caller alan due dupree for the report. Thank you for the report and taking covid seriously and keeping our central employees safe. Its part of the larger conversation in helping the public to engage with sfpuc. I think its important to develop methods where everybody is able to pay in a way that doesnt involve a physical transfer of money. And theres main ways to do that because we want to keep people safe and reduce exposure outside. Again, i appreciate the fact that your essential employees are working hard to keep themselves safe. I cant moves the importance enough of ensuring we see our infrastructure going noe vative and how the innovative and how the public can edge gauge engage with you safely. Thank you. Madame secretary theres no longer callers in the queue. Commissioner that item is closed. The next item is the quarterly budget status report presented by laura bush. I wanted to ask the commissioner or someone to comment on mr. Decostas remarks about this odor. Are we aware of it . This is the assistant general manage for waste water. We did receive a communication from the california regional Quality Control board staff late last week regarding concerns this came through a local nonprofit the name of which i dont have but i can get that. Its regarding concerns with a possible source of sewage out off Hunters Point area. Weve done investigations for the last couple of days field investigations for the last couple days with the staff and others and weve also done Water Quality testing and we do not have any indication of a source from the area. So i was not aware to my knowledge, wed not been aware of the duration as described by the Public Commenter of several months but we did receive communications in the last several Business Days and have followed up on and we have no indication of a public sewer spill source. Well continue to followup on this and certainly ill provide updates through general manager kelly and thats what we know at this time. So lets move on to the quarterly budget report. I have a presentation. Ill tell you when to move the next slide if thats okay. Thats okay. Lee is driving. Sorry, lee. Good afternoon, this is laura bush the budget director for the sfpuc. Ive been in this role since february and this is my fifth time preparing a budget report for you. Its been a very interesting six months in the budget world but weve ended the fy20 year in strong position. As a reminder [indiscernible] the report a few months ago. And due to the effects of covid19 through year end and overall q4 revenues came in largely as expected so better than expected not offsetting revenues and savings put us in a better position than we predicted in q3. The q4 report is the first lock at the year end and look at the year end. My next report will be at the end of the next fiscal year in november. And we can be stopped if you have questions during the presentation. Overall weve had a positive net operating result for all the enterprises with our Financial Results expected to exceed or meet policy targets despite reduced sales. Clean water s. F. Sales came in on budget. As shown in the slide, clean power s. F. Sales were up 29. 1 million with water, sewer and power coming in with this shortfalls largely due to the effect of covid19 and shelter in place restiks restrictions. We had measures to offset cutting about 14 million across the agency. Heres little more detail on the balancing cuts we implemented to ensure we ended the year in the black. When covid19 first hit we knew wed face significant financial challenges. Sfpuc Resiliency Team was formed and the first task was to figure out the impact and put in place a hiring freeze. We were able to estimate the size of the deficit and asked for proposals to offset the expected numbers and we came to 50 capital and 50 operating sxenz expenditures and these. Revenues from the capital reduction mainly due to budget close outs and deferrals there will implementation later this year. Now ill proceed more detail on the result of each enterprise. In water the net operating results is almost 37 million to the good. On the sources side reduced Retail Revenues were offset by better than expected wholesale revenues with a net sales of 1. 7 million this was offset with a surplus in nonoperating revenues. On the uses side, we saw significant savings from debt refinancing as well as closeouts of Capital Projects, salary savings and other items much of which was due to our material balancing cuts. In waste water the net operating result is 17. 5 million to the good. On the sources side we were 12 million below budget offset by 7. 2 million in nonoperating revenues largely interest income. On the uses side, we saw significant savings from closeout of Capital Projects and salary savings and savings in debt service and other items such as savings in materials and supplies due to the dry winter and reduced loads due to covid19. In power on the uses side we saw significant savings from closeouts of Capital Project budgets and in addition to the cuts in appropriation to meet the mid year balancing cuts a further 16 million provided a source to rebalance the fy21 and fy22 budget the cuts to the capital appropriation will have work delayed and reprioritized and reduction in transmission and distribution charges as well as under spending on salary on nonpersonnel and work orders. In clean power s. F. The net operating result is 36 million to the again and revenues for 22 million above budget due to better than expected demand despite reductions in usage in the last quarter due to strong operating revenue support. We saw savings in power purchase driven by assumptions and in addition we saw savings in salaries mostly related to freeze in hiring related to covid19 and general reserves is not counted towards the operating result or include the in the balance. The general reserve will be rolled over and ask to have it fund the short balance. All enterprises are projected to exceed the policy minimums for fy19, fy20 and end the year with a strong balance reserve to be used to hedge against future uncertainty. Thats my presentation. I welcome any questions. Commissioner excellent presentation. Commissioners, any questions . Seeing none commissioner i wanted to express appreciation, laura, thanks for your presentation it. Was very clear. I know this can in the be an time to be making those hard decision. I want to express appreciation to you and the staff for the hard work i know youre engaged in in needing to do that. Thank you, francessca. Its really been a team effort to meet the moment and make sure sfpuc remains financially resilient. Thank you for saying that. Commissioner nice comment. Very true. Madame secretary can you please open is up to Public Comment. Clerk members of public who wish to make Public Comment dial 14156550001, meeting i. D. 146 136 9319, , and star 3 to raise your hand to speak. Mr. Moderator are there any callers . Not at this time. Clerk Public Comment on item 6b is closed. Next item under the general managers report the 6c hetch hetchy report present katie miller. Good afternoon, madame president and commissioners. Im cover the highlights for the hetch hetchy projects for third and Fourth Quarter from january 1 to june 30, 2020. I understand your agendas very full today so ill briefly discuss a few of the projects and respond to any questions at the end. Next slide, please. This say snapshot of the Program Expenditures at the end of the Third Quarter for the 20hcip projects representing 660 million which exclude Program Development costs of an additional 44 million. Expenditures at the close of the reporting period were 164 million. The program has achieved 26 had completed 26 completion at the end of the Third Quarter. At the end of the Fourth Quarter another 7 million was spent and now the program is 28 complete. Note that now all projects have been initiated. Six are in planning, one in decide and two in bid and award and one in construction, five in closeout and two are completed. Now well go over project highlights. For the mountain tunnel project, these were originally opened in february, however, when the shelter in place was issued in march we decided to reject all bids and postpone the reopening until august. Partially due to the uncertainty of what happened with the shelter in place order and also to see what the big climate would be in the future. Bid items were added to the contract nor health and safety for the health and safety plans for covid19 and plans reconsequenced to minimize resequenced the impact and think we have a better sequence than first started and we anticipate strong bids opening this thursday. The construction contract for the moccasin performance fence was award end may and the contractor is currently mobilizing. This project is anticipated to be completed by the end of the year and with construction closeout on the third or Fourth Quarter of next year. The warnerville substation Rehabilitation Project continued towards completion. The city and contractor are currently negotiating the reduced scope for the closeout of the contractor. The project scope will be completed under a separate contract in the future. The holm and other powerhouse projects have nine that have been completed. The Oil Containment project reached substantial completion and due to the shelter in place order the work was interrupted and resumed in the Fourth Quarter. The project will be complete the end of 2020. For the repairs to the Moccasin Reservoir from the march 2018 storm event, final construction completion was achieved in april. During final inspections however, it was observed the new auxiliary birm was not constructed to the right elevation however, this was remedied during the Fourth Quarter. Thats it. I tried to keep it short and sweet but id be happy to answer any of your questions. Commissioner commissioners, any questions . Ms. Miller. I have a question about the slide of moccasin. The fence im looking at is not the fence were putting in, correct . No, thats an artists rendition. Eith either, im sorry, its the view from the hardwired fences there what will be put in is a 10foot tall chain linked fence that will be green in color so it will be partially camouflaged from the view from the road. This was in response to the planning departments comments that this is a historical district with a historic view and so we agreed during the ceqa process to have a green coating applied to the fence. Commissioner does that mean we can or cannot see through the fence . You still will be able to see through it. Commissioner we were concerned about that. We preserved the view more or less while maintaining the security. Commissioner good. Im happy thats moving forward. Any other comments . Questions . Thank you very much for the presentation. My pleasure. Commissioner madame secretary, could you please open this up to Public Comment. Clerk members of the comment who wish to make two minutes of Public Comment on item 6c dial 14156550001 meeting i. D. 146 136 9319 , , star 3 to raise your hand to speak. Mr. Moderator do we have any callers . None at this time. Clerk thank you. Public comment on item 6c is now closed. The next item is 6d the Water System Improvement Program Quarterly Reports for the third and Fourth Quarter also presented by ms. Miller. Good afternoon again, madame president and commissioner. Today well present highlights from the third and Fourth Quarter of the Improvement Program and cover status from january 1 through june 30, 20. 2020. We had it separated in the agenda but ill cover it by both quarters. First the Program Status for each and at the end of the Third Quarter the program was essentially 99 complete with 4. 5 billion spent and 253 million remaining. Six projects were in construction, one in design, and 76 complete. At the end of the Fourth Quarter an addition amount was spend with one project moved from design to construction and one more reached project completion. The completed project was lake merced pump station the last of the local projects. This say significant milestone as theyre now 100 complete. The 95 design was updated and issued for review. The project will be advertised for construction in september. The repairs were supposed to happen this week but postponed due to the fire. And theres solar facilities and battery racks along the station and new lithium batteries were ordered and will be installed next quarter. This will eliminate the need for propane generators at the sites. Theyll be all solar facilities. Next slide. For the Sonoma Valley project two remain in construction. The mobile Pilot Plant Project was completed. This facility will be used to perform testing for the polymer feed project and the water modification continued and anticipated to be complete in december 2020. As you recall these projects use a lot of small job order contracts so thats why theyre kind of scattered here and there. Next slide, please. For the region closeout project theres two sub projects remaining in construction. For the hillman rollers were installed and the pipe coating repairs complete Erosion Control work in the area consisting of a v ditch will be performed next quarter. The project wrapping up and will be completed soon. For the peninsula region closeout project, the lower Crystal Springs dam basin is 90 complete. The lower Crystal Springs dam bridge replacement which is a joint project with San Mateo County is mostly complete. We had a major shutdown in the Fourth Quarter and that was very successful. We complete the shutdown on time. There are a few warrant issues that are being addressed some needed to be closed between the dam wall and the new bridge abutment and that was completed. Next slide, please. And the last project our biggest project the dam replacement project closeout activities will continue through december 2020. The dam inspections for dsod approval will continue as the reservoir fills during the next wet season and that is important for the final approval of the project. And that completes my presentation and ill be answer any questions. Commissioner commissioners, any comments, questions . One thing i can say, we certainly have been busy. Nice to see this all review and the completions. I agree. Our construction teams have continued to be extremely busy responding to the different shelter in place orders and Health Orders out and proud we led the charge with our contracting and all of our health and safety procedures to address the safety requirements and continued construction almost without a hitch. Very successful. Thats remarkable you were able to complete the local portion all the local pieces. [indiscernible] it felt like you mentioned it but it was in the context of other data and completion but its such a big milestone but id love to see them more formally and recognize the start date, total cost in the time of covid it feels like we should take every moment of celebration and acknowledge it. I would love to do that too and can come back with a more complete picture of the local program if you would like. I would like to acknowledge the project manager howard fung. As the lake merced pump station project was getting close to completion, there were a lot of problems with the controls and Electrical Systems and it took a long time to trace the source of where the problems were and the project team hung with the Operations Group for even i think it was over a year of trying to sort out all the issues until everything was resolved and that facility is now running successfully. So great job to howard fung and it the project team to support operations in a completely operable facility. Commissioner and i want to say a couple things too, ms. Miller, we really appreciate what youre doing and complementing what commissioner vietor said and this isnt just a budget analysis, this is a budget analysis that means somebody like you really understands how youre crunching the numbers and what exactly is being curtailed and set up a big presentation that we can all digest and realize as we know in these difficult times its like whats going on. Everybody expects were going to die of shortfalls. The citys doing it and states doing it and many public agencies. Its your ability to jockey around all the different data is admirable as is your colleague over at hetch hetchy. It has been good to know we have a good Team Managing our stuff so thank you. Thank you. Commissioner that was a nice comment. Yes, it definitely was. Well continue to do great work for you and deliver these programs. Commissioner you make us very proud. Thank you. Madame secretary, could you please open this to Public Comment. You may be on mute. Clerk im sorry about that. Members of the public who wish to make two minutes of Public Comment dial 14156550001 i. D. 146 136 9319 and , , and star 3 to speak. Mr. Moderator, do we have any callers. There are no callers in the queue at this time. Clerk thank you, Public Comment on item d is closed. The next item under the g. M. Report is 6e bay delta voluntary agreement update presented by h. E. M. Ritchie. It will be deputy manager mr. Carlin. Clerk sorry about that. Mr. Carlin. Good afternoon, madame president , commissioners. This is an update on the bay delta and the negotiations of the voluntary for the Tuolumne River. We have been in contact and sitting down with the state team. The state team costs of the deputy secretary for California Environmental protection agency, the deputy secretary for the Natural Resources agency, the Division Manager for the water rights at the state water board. The director of California Department fish and wildlife and the director of the department of Water Resources. We have been engaged in conversations with them around the volunteer agreement seeing if we can reach some milestone where we can actually submit it to the state board for their consideration. We are discussing our flow schedule proposed under the relicensing and flow measures. Weve had two meetings at this time and making another one next week. Were making some progress but also running a little bit of an issue on how much flow is being required by the state. As you may roll, the state has opted a water control plan update for the lower San Joaquin River and looking for unimpaired flow in the 30 to 50 range and in critical years we didnt have 30 in the Tuolumne River so its a discussion how to bridge the gap and how we can do so other things can enhance our proposal in a way thats acceptable. I will stop there and answer any questions that you might have. Commissioner commissioners, questions . I have a question, thank you to the chair. So it sounds like its still a bit of a stalemate situation where theyre now not at the 40 number but have come down to 30 . Our position is we dont have 30 unimpaired but maybe we can supplement, compliment with more Habitat Restoration or controls or Something Like that. Is that what im hearing . Yes. And its only in the critical, dry years we have this situation. In our original negotiations with the state starting in 2017, we have built a plan around certainly relief schedules in dry and critical years and having off ramps so were discussing those and the state would like additional Habitat Restoration and whether that would offset the additional flow that would be required under the water Quality Control plan. What is different in this round of conversation than before . I feel like weve been here before. Whats different is were under a new administration. Remember we started this under the Brown Administration and now were under the Newsom Administration and have two new secretaries for cali p. A. And Natural Resources and they engaged in conversations with us directly and our partners on the Tuolumne River. Its just a new round of negotiations with new players and making sure everyones comfortable with whats being proposed. Commissioner any sense of time line or when these may be able to move little further down the road . I would hope we can reach some sort of milestone in the next several weeks. If we dont, then i think its going to be stalled and the state will probably not move forward with anything and were in the situation where were looking to see and to be honest if the administration in the washington, d. C. Changes and whether it changes the tenor of the conversation with all water use in california. That makes sense. Commissioner id be interested on an update on that front in the next couple of months i think to better understand if theres a change in administration what then happens with the multitude of lawsuits and the berkeley licensing and all of that. Yes. Id say that would probably be appropriate once the election is over and settled. We wont know much until like january. Commissioner okay. Thank you for the update. Youre welcome. Commissioner hmm. Commissioners, any other comments . Thank you, mr. Carlin. Madame secretary, call for the Public Comment. Clerk members of the public who wish to make two minutes of Public Comment on item 6e dial 14156550001 i. D. 146 136 9319, , , and star 3 to raise your hand to speak. Mr. Moderator do we have any callers . Madame secretary, there are several callers in the queue. Clerk thank you. Caller, you have two minutes. Caller hello . You have two minutes. Caller good. So they use one commissioner who attention to this very serious deliberation. I think the sfpuc ive been saying this but to say it for the last time. I think we need to bring the Indigenous People to the table. This is their land. Theyve been here 15,000 years. The land was stolen. The water was stolen. The least we can do is respect them and ask their opinion. I know your staff has not been doing due diligence. The other callers have to agree with that but my plea to you is invite the Indigenous People and ask them about this 30 , 20 , 50 , whatever percent, how does that impact the river. They have been looking after the river and caring for the river for thousands of years. You have empirical data, archeological evidence, 15,000 years. The least you can do is honor them, respect them and consult them and do the right thing. 30 seconds remaining, caller. Thank you for your comments. Next caller, you two have two minutes. Caller this is dave warner again. I want to thank mr. Carlin for his open discussion and update and in particular commissioner vietor for her great questions. Unfortunately peter gutmyer would not join todays meeting but i think he would very much appreciate the questions and discussion also. Thanks very much. Thank you, caller. Madame secretary, we have no more callers in the queue. Clerk thank you. Public comment on item 6d is closed. The next item under the g. M. Report is the San Francisco p. U. C. Regional water system work sheet. Good afternoon, commissioners. General manager for water and id like to set the stage to set a reminder of the 2008 level of service the commissioner adopted as part of the water system Improvement Plan of 2008 for Water Quality to provide clean unfiltered water from hetch hetchy and local water from local water sheds to meet a demand of 265 million per day 265 million per day during nondrought years and limiting rationing to a maximum 20 system wide through an extended dought. 265 is noted in one foot note is the wholesale customer supply assurance and allocation for San Francisco. And the maximum of 20 system wide reduction was an eight and a half year design dought post 1976 and 1977. Drought. In our current water supply planning we have a variety of challenges were trying to meet with climate change, wildfire, growth, environmental obligations and infrastructure. Were working through these through our planning process for the alternative Water Supply Program youll receive a report on next meeting. One of the tools that we could use in this is the water yield work sheet ill be describing today. For the purpose of the work shed weve been work with commissioner moran on is an interactive tool of information and provides dialogue for demand projections wholesale and retail and Regional Water system yield related to the design drought and various alternative water supply options, different contributions to Tuolumne River industry and flow and different policy options and their impact including potentially reviving the design route period longer or shorter or peir rationing and accommodating growth. So first some definitions. As we talked about this well be using terminology we havent commonly used with the commission. First were starting with Regional Water system demand projections including retail demands taken from the 2015 urban Water Management plan and working to display wholesale customer demands as well. And the Regional Water system yield and yield is a term ill use frequently here described in three parts. Firm yield, rationing policy and total system yield. So the firm yield is the average amounts of water supply per day provided during the design drought without rationing and bridging system storage to zero at the end of the design drought. Basically, how much water do you have if you used up all the water in your reservoirs during a designed drought period. So theres different factors that affect firm yield. One is climate. If it gets hotter and dryer or wetter at times. The hydrology we live with. Water rights, physical facilities or ability to move water around, provisions and finding the relationship with the directs and various permits obligations and directs and licenses and water control plan implementation as weve been discussing, endangered species acts and others and contractual obligations such as the fourth agreement. And of course lets go back one slide. I included that the definition of the design drought is an important factor in affecting firm yield. The rationing policy is a rationing sequence applied during the design drought expressed in the average amount of rationing in million gallons per day. What the commission did in 2008 with the program was basically to define a pier policy at 10 of rationing and 10 years of 20 rationing over the 8 1 2 year design drought. This is equivalent to 29 million gallons a day over the design drought. So finally you can create a total system yield the yield of the Regional Water system when rationing is not in effect. This is expressed as the sum of the firm yield plus the rationing policies. I did the math on that to demonstrate what i mean. Thats basically how much water you can commit to delivering in the rationing. So the work sheet mechanics that weve been working through are projections of retail demands and wholesale customer demands on the Regional Water system over fiveyear increments from 2020 through 2050. These are combined total system demands. The Regional Water system firm yield is 219 million a day and start from a firm yield that would serve everybody in the design drought without any rationing. After completing the project firm yield will increase by 16 million per day but decrease also due to flow restrictions on two creeks that have taken effect. In simple math, the firm yield is 219 plus 16 minus 8 so the new firm yield is 227 million gallons a year with the increase over the firm yield. So looking at what you can do in a work sheet like this, you can display impacts on firm yield taken into account various different things. First, reductions in the yield due to Tuolumne River in stream flow requirement or early implementation or for any other reason. You can display increases in yield due to implementing alternative water supply projects coming out of the alternative water supply planning program. You can also display potential changes in yield due to a revised design drought period. Again, you can have a shorter design drought or have a longer design drought depending on what we want to achieve. Impacts on total system yield can be displayed with the impacts on firm yield as described above and potential changes due to a revised rationing policy and revised rationing policy could be one that calls on more rationing or calls on less rationing than ones currently in place. Impact on water regional demand that can be displayed is the additional of wholesale customers and potential increases in supply to accommodate growth for various customers. So the whole point of the work sheet would be to have ways to modify each of the factors and show how it affects the yield for the ability to deliver water to our customers collectively. So if the commission wishes to proceed our next step would be to actually refine the work sheet some more because the work sheet currently is about 15 columns and 130 rows. So its a big work sheet. Its not easy to manipulate and how its presented is very important. And one of the considerations we have to do is make sure its clear what buttons could be pushed and wed have various parts wed want to have complete control of while allowing others to be used by stakeholders. We can have a workshop for stakeholders and Commission Workshop to demonstrate the effect of various projects and policy considerations that you might wish to look at. Id be happy to take any questions about this. Commissioner do i have one question and its a simple one but maybe its not a spam one. Simple one. When you said increase water supply, give me a couple examples of what that would mean in this exercise. We have the alternative water supply project, we have 15 projects were investigating right now. Three of them are recycled Water Project to convert waste water to Potable Water and another is ground water basin and another is passing it through one of our reservoirs on the way to the customers. Another project would be the expansion of talavaris reservoir and modify the plum from hetch hetchy and take water from a couple big years like weve had lately and take the water and have somewhere to put it and expanding that reservoir would be a good option for that. Another would be Water Transfer with water in the irrigation districts in the Central Valley through modesto. All those are projects and various others as well that can add to our water supply. Thank you. Commissioner other questions . Let me make a couple comments. This is something that staff and i have been working on for some time. And it reflect as a little of involvement than unusual for a commissioner but part of it goes to an area that i do have some deep understanding about. The really interesting part of the discussion will be when we actually have the work sheet to work with that is part of the design is you can use it and first of all to keep score of the affective things have you decided to do. Second thing is to play what if games. What if we added some hype to the dam or what happens if we add a plan of some capacity to Start Playing with how you come up with a water supply portfolio that balance the needs you have and increasing demands being placed on the system primarily in the environmental front in terms of fish flows and that sort of thing. One thing thats important about todays presentation is the distinction between farm yield and system yield. It is important and we have made some policy choices in addition to the physical things we live with and the legal requirements we have we also made choices. What weve said is we will plan on providing a level of water which cant be delivered consistently through a draft. So were saying its like if it were in the Energy Business wed be talking about a nonfirm supply. So we will commit more most of the time on the agreement that well deliver less when the system is under stress. I think thats a reasonable thing to do given the climate were in and the political environment were in. I think thats very reasonable but it is important to realize number one its a policy choice that we make. Its also one which can be a tricky and even say dangerous policy choice as you think about making changes to it. Some water districts in the past have decided that they would lower their reliability standards so they can provide more water in that way provide water for increased flow. Its seductively easy when you change something on paper and its that seductive ease that makes it dangerous. You have to think about what is the impact that we my not actually get to see. Maybe years down the road it happens but if you say you can take deeper levels of rationing during a drought, for example, that will at some point result in very real harm and hardship to some people in the future dought. But its an easy decision today with a potentially harmful consequence later. Those are hard decisions i think to make. Its easy to say, lets take a short term gain but as we go through this discussion we start thinking about option we have for balancing the water supply portfolio. I think we have to be very cautious and very aware of the real world impact that seemingly easy policy choices can result in. And well get into that as we start having actual work sheets with actual numbers to play with but i think the concept is important at this point as a cautious going in to go in with a degree of humility and cautious. I think its also important as we get the update to the water supply alternatives plan and use this as a way of keeping score and looking at some of the options we have that will serve us very well but thank you. Thank you. Commissioner as the work sheet begun yet . Weve been working on the work sheet for about three months now intermittently. Commissioner moran provided some time ago a work sheet he had developed himself to understand the demands and how things would be changing over time. And then as weve gotten into the alternative water supply planning he has suggested we use that work sheet to actually keep score of where the projects fit in and when they come online and how much water they do provide to the system. Weve been working through all the ins and outs. These are all challenging questions because each project that we look at you cant just say it generates 10 gallons of water. You have to know how it will fit into our plumbing and come through our system. A good example is the Crystal Springs purified Water Project. We can treat waste water to a high level and put it in Crystal Springs reservoir and treat it and fine water will come out the end but sometimes we could put hetch hetchy water in Crystal Springs reservoir and we wouldnt have a one for one increase in yield from a project like that. It will be something less than one for one. We need to make sure as projects come online we have modelled how they will fit into our plumbing and our policy systems so we know how much real water well get out of each project. That will take the work of separate modeling to come up with a number that actually fits here. So therell be a lot of work that goes into that. That work needs to be done anyway. In that case well have a number that can be used in this particular sheet. My particular concern is its a pretty mammoth sheet and we need to be careful how we present it to different audiences and again what things we will actually have to keep control of to make sure it doesnt put misinformation out in some way, shape or form if you fill it out wrong. A somewhat shorter version of that answer is that answer exists and its going through final review and revision. Hopefully that will be at the next meeting. Commissioner okay. Is there some restriction with hetch hetchy water in Crystal Springs that obviously im not aware of. Thats no restriction when we are living water down here, we will deliver hetch hetchy water to meet demands but if there is extra hetch hetchy water and room in Crystal Springs or san antonio both we can put hetch hetchy water in and operationally were better off with water closer to us and water locally helps operationally quite a bit. Its one of the issues in terms of yield is if you have a new Water Project like a reclaimation plant that put water na reservoir you have less to put hetch hetchy water into that reservoir. Thats where theres not a one for one correspondence on the build and the effect of usable water or yield. And black and white version of that is if you had a Water Transfer that was available to you only in wet years. That would do look nothing to your ability to serve water because of the critical period for rating the water during a drought. If you have a Water Transfer not available during a drought it can do you some good but not really affect yield and if you have a Water Transfer only available in dry years the affect is much more positive than it might appear because you wouldnt take it every year only dry years but those are important years so it would have a Significant Impact on the yield. Thats what were talking about its important here as we look at individual projects and try to assess what their impant would be on impact would be on total system yield we need to have engineers to look at that and say how would it really work . You dont just turn a switch and the pump produces so much water and you operate it within you operate it, whats the effect coming out the other side. Thats where some numbers need to be put through the engineering filter to be useful and relied on. I can see we have a lot of to learn. Commissioner one of the fun things about the work sheet and some of us find this fun is that yield can be pretty complicated if you get down in the weeds. Once youve set a set of assumptions and have the yield you can use it as your available supply and you can use that in the way we always use it and balance any kind of budget. You set some kind of supply and if you come up with a deficit, you need more supply. It can be complicated with the numbers but the use of the numbers can be straightforward and familiar for anybody whos trying to balance a household budget. Commissioner fascinating. This is an exciting project. Looking forward to it. Commissioner youre going to love it. Commissioner any other comments before we turn it over to Public Comment . Madame secretary, could you open this item up to Public Comment. Clerk madame president , before i do id like to note for the record Vice President vietor has left the meeting for the day. Members of the public who wish to make two minutes of Public Comment on item 6f dialing 14156550001, i. D. 146 136 9319 and , , and star 3 to raise your hand. Mr. Moderator do we have callers . Theres multiple callers in the queue. Clerk thank you. You have two minutes. Caller good afternoon, president caen and members of the commission. Im a Water Resources manager. Its been consulting with staff about the water system yield work sheet. We appreciate the opportunity to be involved to raise questions and get details how it would be used to get ideas how it may affect the water users we represent. Details match the presentation just given by the assistant speaker. Theres one ask that we remain engaged during the continued and to develop a version that will be shared with other stakeholders. The focus in understand how long the work sheets operate and it speaks to interest relates to supply, reliability, Service Goals and rationing issues and are paramount to the issues well be focussing on and the involvement is consistent with the 2018 amended and restated water supply agreement youre Commission Approved in november of 2018. In closing, we want to avoid it becoming a tool for conflict. Were pleased to hear that. Again, its the understanding staff share that concern. Ill close by thanking you focus for the opportunity to comment and we look forward to the discussion moving towards finalization. Thank you. Thank you for your comments. Next caller. Caller this is dave warner. Thank you commissioner moran and for the work sheet. Thank you for the presentation and commissioner moran for your thoughtful comments. In president caens words this is very exciting. Im sorry the Tuolumne River trust cant join the meeting. Hell enjoy the video. Hell be pleased to have the work sheet and opportunities it represent. Not only will the work sheet help understand various scenarios but cost benefit tradeoffs working to identify which Investment Choices to make such as mr. Ritchie used as examples not only for the sfpuc and others my biggest hope is the work sheet might allow us to expand the scenario to accommodate objectives in the low demand and highdemand scenario. For example in the near term it seems like theres not a chance of our reaching 255 mgd demand in the next two years and theres situations where we can increase the flows to the river without jep ardizing the design drop scenario and not creating hardship in the long term and wouldnt that be a wonderful thing. Thank you for the water yield work sheet and the opportunities it represents. Were looking forward to sharing with the stakeholder group. Thank you again. There are no more callers in the queue. Clerk thank you. Public comment on item 6f is now closed. The next item under the g. M. Report is the 6g the power Enterprise Operations during extreme heat event presented by a. G. M. Hill. Thank you. This is barbara hill, assistant general manager for power. Nice to see you, commissioners. Unless you were in the cave in the last week you know the western u. S. Is in a heatwave. It began august 24 and with temperatures exceeding 100 degrees and the grid operator independent system operator declared a stage 3 electrical emergency. Governor newsom issued a proclamation of state of emergency due to the extreme heat event. Whats it mean to hit stage 3 and hows it work and hows it work in power operationally to respond. The grid operator tells how much load to drop how many mega walt watts mega watts what to be dropped and pg and e dropped the event and we obtained that information and through a high system of demand and anticipated demand due to hot temperatures in the west. As a generator and retail electricity supplier, San Francisco p. U. C. Took action to help. Our power staff worked with hetch hetchy staff to create during the critical hours. We succeeded in providing 155 to 157 megawatts per hour during the emergency and we encouraged them to conserve. Power and communication staff encouraged them to conserve using the social media channel. By all accounts the efforts paid off. We help avoid additional rotating averages. You may have seen and heard Governor Newsom gave hetch hetchy some credit in his press conference on the 19th and in a letter to the governor the state agencies called us out for being helpful and providing increased generation from hetch hetchy as one of the many c. P. A. S that help get conservation messages out well. Commissioner commissioners, questions . I have a question. We stopped generation. How did we fulfill . We had two other two other powerhouses. Did we have any other problems in that situation . We continued to together rate our facilities. We had an interruption at home unrelated to the fire. I hope this will be an impetus for you all working with the idea of storage and resiliancy as well as developing new methods of communication including reaching out to those who do not have personal tee vices. I look forward to improvements in this area. Thank you for going above and beyond the call of duty. Thank you. There are no more callers in the queue. Thank you that closes item g. Next item is 6h. Theres a small fire that was only a few acres but had a Significant Impact because it took out power to the small Treatment Plant that effected the power at the valley. We were able to get that fire under control fairly quickly and restore back up power in the area. The darker red, the more recentyou can see that in the case of the modifie mod fire ocd across the highway and jumped the road which led to cal fire leading to the evacuation. The fire never got to moccasin. It increases there above it. They didnt know that was the evaluation. We were quite happy about that. You asked about the operation of moccasin, what wasnt mentioned was that between 3 30 p. M. And 6 00 p. M. We got conflicting reports whether it was generating or not. The beginning of a fire, you dont know whats going on. Things are changing all the time. There was no disruption to the generation or the by pass line. The operation and evacuation was listed until saturday. Folks were able to move back into their homes and go back to work in moccasin. If i can see the next slide. We will see as time passes as this fire is still growing. Its burned about five thousand acres in our water shed land. This is a big fire and could be a big deal for us. Fortunately a lot of this is grass land. It should recover fairly easily if we get some rain before so we can actually grow grass as opposed to have erosion take place. There was a fire that actually was aroundwe had the energy lines down there. The numbers i gave will probably still increase a little more. If i could have the last slide. This is the complex fires. Madam secretary, could you please open this to Public Comment. Members of the public who wish to make Public Comment on this item. Please dial the number and access code pound pound and star three to raise your hand to speak. Can i just ask one quick question. You went wonderfully fast. While we queue this up. Just a quick question. How many folks have been effected in terms of jobs and maybe layoffs or dislocation from the fire . The mock fire, probably, id say less than five thousand people. But again, we were evacuated for 45 hours. It wasnt a long time. I meant sfpuc employees. Basically we have about 70 people. They were evacuated for about 45 hours. We have a number of employees who live in those communities. Were working to get that to see how many people were effected. The moccasin fire was thankfully a very short duration event. The evacuation itself wasnt overly long as far as disruption. Thank you. There are no callers in the queue at this time. Public comment on item h is closed and that concludes the report of the general manager. The next order of business is item seven. Bond disclose youre presented by deputy City Attorney mark blake. Im joined today by steve, a law firm by the puc disclosure council. I work closely with structuring the puc. Provide periodic training for commissioners, board membe memberswere going to provide guidance on how to discharge obligations. We prepared a memo with respect to this agenda item. We will not take the time today to walk you through the slide decor the memo but please review both if you havent already and if you have any questions please direct them to puc staff or district attorneys office. We have retained a law firm as the pucs dedicated disclosure council. Were going to take a few minutes to look at the highlights of the slide deck. You can review that in more details. The puc not subject to the Registration Requirements of the federal securities law. The puc is subject to the anti fraud division. Again, the importance of having a process without omission. Disclosure is made when bonds are issued to the public. As part of the bond approval process, the commissioners are given a preliminary official statement that are used on part of the bonds as part of your package of approval. Puc also provides ongoing information to the market, annual reports. And any other statements that are intended to be or likely to be relied on the market. The purpose of this training is the Securities Commission use the municipal disclosure ultimate responsibilities of the issuer. You should make sure that staff is aware of important issues and information especially thing thats you may know and have access to information to as commissioners, the financing staff and Financing Department would not necessarily be informed about. And also to express concerns with how sensitive issues are presented on the issues on sensitivity its important to focus on those and be sure youre comfortable with how those are expressed. If you have questions or if you have concerns or its important to bring those to the attention of staff. Ill note that there are areas in particular sensitivity or concern that the City Attorneys office and deputy City Attorney and your council and information can be brought to city attention that way. With that i would like to see if you have questions or another points youd like us to elaborate on . Commissioners, questions . This is really the first time this has come before us. And we thank you for your presentation. Did something happen or is this just something that you decided were going to do on a regular basis . We started this practice in 2016, i believe. I came on board in 2015, its one of the largest issuances of municipal debt. Its important to have very predictable and streaming disclosure practices. We are issuing a lot of debt. We thought it was Good Practice to bring this to the board. Thank you. There are no callers in the queue at this time. Thank you. Public comment for item number seven is closed. Next item, please. Madam president , before we go forward, i would just like to say a little bit on the moccasin fires. Im just glad that no one was hurt in moccasin. Im sorry for their loss and inconvenience. I cant imagine how people feel when you have to be evacuated. I want to thank our employees and know that im thinking of them and their families. Thank you. Thats true. Those of us that live in San Francisco really arent challenged by this unbelievabl unbelievablewere going to take one more ey item and then were going to take a break. Your next item is item eight. New commission business. Commissioners, any new business . Okay. With that, im going to call a break. Its 4 00 oclock. Please be back a and well moveo the the matter will be removed from the calendar and be considered as a separate item. I know 9h is a correction needed to the resolution. Commissioner, did you have an item . No. Im fine. Thank you. Commissioners, is there any item you would like removed from the consent calendar . Seeing none. Madam secretary, will you please open this up to Public Comment for removal. For members of the public who would like to make comment on the consent calendar please call in and press pound pound and star three to raise your hand to speak. Mr. Moderator, do we have any callers . Madam secretary, there are no callers in the queue at this time. Thank you. The consent calendar item nine is closed. Commissioners, can i have a motion to accept the consent calendar. For clarification with exception of item 9h. So stated. Motio so moved. Ill make the motion on the second motion to approve the consent calendar. Move to approve, thank you. I will second. Madam secretary, will you please make the roll call vote. roll call four ayes. The motion carries. Next item, please. Item 9h, kathy will discuss the item and why it was pulled. The kreksz i correction is te item was completed in 122 days. Does that change the notice and put it over for another month . No. That is already in the staff report. Its also already i make a motion to move this with the connectio the correcti. Its 102 consecutive calendar days on august 29th 2019. Next item, please. Next order of business is item ten. Integrated resource compilance filing california Public Utilities commission. Presented by mr. Mc hen. Good afternoon, commissioners. Can you hear me . Yes. Great. Im the deputy manager. At your last meeting, the clean power assessment process. Im before you today to present the results of our staffs work. To seek your approval to submit our plan to the california Public Utilities Commission Next week on september first. Next slide, pleaswe thought d idea to highlight a few key terms. A portfolio is a collection of Energy Storage resources used to serve electricity demands. The second is preferred portfolio. This is the portfolio analyzed for our Program Goals that is approved by this commission for commission to the cpu c. The third is scenario. A scenario examines variations of a future state or objective that may be a new regulation or change to code. Sensitivity analysis. This is an analysis that involves changing one assumption and understands the influence on the portfolio. Next slide, please. As we discussed at your last meeting, clean power discussed the puc on december first. Our team has worked hard on a very tight schedule to put together a schedule for your consideration today. Staff is recommending the commission put together a accelerated portfolio in the 2020irp. The accelerated case would achieve a 100 renewable Electricity Supply by 2025. Five years sooner than San Franciscos goal s. The action item before you today would accept the portfolio. As a reminder, an irp is an Energy Planning tool or process used to support achieving policy goals and meeting regulatory requirements. Our planning process was focused on identifying resources that would meet our customers demand at the lowest cost. Also meeting regulatory requirements. Next slide, please. As we mentioned at our last meeting, clean power has modeled resource portfolios for these four scenarios. Meeting the citys 2030 Renewable Energy goal. The second is an a accelerated case. We see the impacts five years sooner. The third is matching Renewable Energy in realtime by 2030. Lastly, a cpu c required case clean power is shared between emissions target in the electricity target. Next slide, please. We also conducted Sensitivity Analysis focused on the following questions. What would be the impact on our power supply requirements if new vehicle registrations were electric vehicles. What if all vehicle trips, starting, traveling, ending in San Francisco were electric by 2040. And all new construction was 100 electric. Our staff worked with a consultant to perform the modeling electricity standard techniquescleaner electric bills. Long term rate financial[indiscernible]. Next slide, please. How about the results. This slide shows pi charts for the projected energy supply. Each of the three portfolios we developed to meet the 100 Renewable Energy Greenhouse Gas target. The accelerated case is on the bottom left. In the accelerated case having a bit more solar and wind. The time coincidence case. This slide shows the capacity of each portfolio over the next ten years. New Renewable Energy restoresthe time scwin coincide case catches up. It meets all hours across all seasons of the year. The time coincidenc quins dent. This is in addition to the mega watts installed on the premises of San Francisco and contracts we have with bay area projects. They provide about 50 mega watts of local bay area. For purposes of analyzing jobs created, we used the job year metric. The job year is equivalent to one full time job for one year. The chart on this slide shows total job years using the best available industry metrics of construction and operating phases and elements in the irp portfolios. They are projected to generate about eleven thousand job years by 2040. The accelerated creates the most jobs the soonest. It comes at a significant and untenable attentional cost to job fares. All have the same local job a accomplishments. The time coincident creates the most overall, these are not necessarily the longest jobs. This slide shows the total net present value of the portfolio cost from 2021. The lowest overall cost. It is about 2 lower than the base case. Eleven percent lower than the time coincident case over this period. This is why this case features more solar. Next slide. You can see here on this slide how the portfolios compare on an annual basis with one another. A ten year projection of supply costs. You can see that the time coincident case jumps up significantly in 2030. Its the year it adds capacity to achieve the time coincident objective. The time coincident case is about 20 percent more costly in rate fares. Based on these results, power staff recommends the commission adopt the accelerated Case Portfolio as the clean power portfolio for irp to the puc. The accelerated case stays truest to the goals. Affordable, cleaner, local investment in jobs, financial stability. Those are the touch stones of all power staff decision making. Despite covid 19 and regulatory time constraints, they were able to engage and inform Community Stake holders. For the first time we developed an irp engagement plan for stake holder awareness in the process and provide opportunities for stake holders to learn about the irp. We struggled of course with covid 19 that caused us to redraw our engagement. Despite these delays, power staff worked very hard to ensure clean power analysis was made available in august for public review ses. Reviews. This submitted context and Background Information a hrg alg findings and analysis results. Power sf dot org resource plan. Based on the stake holders, we hosted two hours last week to get feedback. Seven public written comment submissions from seven different organizations. Majority of comments received were supportive of staffs recommendation. All commenters provided areas of improvement, further development in the future. Stake holders in favor of staff staffs recommendation was balancing affordability and local assessment. Stake holders opposed prefer the time coincident case. Minimize reliance on the california iso by building micro grids with more investment. The development of new customer programs in the fiscal year, our next irp is due in two years time. I was going to suggest we move to the last slide. Do you have any questions . I have a question. The coincident you say is more expensive in the long run because you have to build more infrastructure. Even though in the last year, i guess, the 30th year all of a sudden it jumps up a lot more than the other. Yeah. It jumps in the 2030 year because that was the year we acquired the portfolio to achieve the goal in our modeling. What the analysis 0 does is different snap shot of portfolios by capacity. The time coincident caseif thats a hard requirement in the analysis that the clean power sf is not utilizing the isf system for customers. It has built out Renewable Resources and Energy Storage resources. Cover demand at every hour. Part of the reason for them to build so much more capacity is because of the seasonality and time of day variation over the course of the year. The variation is not just on customer demand, its also on the supply characteristics of Renewable Resources sm thsource. The sun doesnt shine as much in the winter. Some of the new resources that were required to make this work included off shore winds. Off shore wind is an expensive resource to include in the portfolios. That was one contributor of the higher cost. What were calling more Long Duration Energy Storage. This is an emerging technology, pump hydro is an existing example of a Long Duration Storage Technology type. The time coincident case requires significantly more Long Duration than the other cases to make this work. The slide i just showed you is a snap shot of the Different Technology types. And for storage, do you have included in there Battery Storage . Yes. All of our portfolios include a significant amount of Battery Storage. Its one of the significant things in our irp process. You can see that with the chart up on the screen. The segments of the pis is Battery Storage. And light purple segments represent the longer duration Energy Storage. My last question, one of the things that commenters suggested was connect local sources of Energy Production like solar panels. With demand often times it includes Battery Storage. It has its own dedicated distribution to allow the grid to operate independently of the larger grid, the macro grid, you can think of it. Thats a micro grid in a nut shell. They can includetypically they include multiple end use customers. You might connect a block together. Or a few buildings that are locatessed next tlocated next t. The principle benefit of a micro grid is the ability to continue to operate when the larger grid is no longer providing service in an outage. They are not bad. They are a solution that does really require very localized analysis. Customer analysis. One last comment on that. I want to say they can be pursued together. That was going to be my question. It seems like these things can happen at some point. Some of the great things about the coincident is that we can still use those things at some point. They also mentioned sidney australia. How maybe San Francisco can be more like them. How are we so different and would we have to do a lot to get there . Good question. I thinki understand from the comments received that the plan has held out as an admirable plan. From my standpoint thats sort of where it ends. I think sidney is quite a bit behind San Francisco in terms of movement to Renewable Energy. I think a requestand i havent supursued this yet. A question for sidney is why havent you done more to implement your plan. Implementability is a very important issue. Youre saying you think were a ahead of sidney in some ways . I do. I think San Francisco and california from a carbon, from a Greenhouse Gas emission standpoint is ahead of sidney. How about in other aspects . Do you have one in mind . No. Were happy to followup further on this issue. I expect well be talking more with stake holders. This isnt the end of the discussion. Right. Thank you. Okay. Any further discussion . Madam secretary, you can you open this to Public Comment. Members of the public who wish to make two minutes of Public Comment may dial the number and meeting i. D. And star three to raise your hand to speak. Moderator, do we have any callers . Madam secretary, there are multiple callers in the queue. Welcome. Caller, you have two minutes. Lots of good things in here. As i learn more about these possibilities. A case for accelerated possibility here. Once we get four hundred percent, then we can refine it along the way. The idea of Building Renewables within the city of San Francisco will allow for resiliency and create jobs close to home so people dont have to travel long distances and travel by train et cetera. Renewable energy is dropping in price. I believe that the accelerated proposition will keep the value here of electricity and Renewable Energy 100 at the same time which will give all the more reason for people to stay with clean power sf because theyll be getting both. I want people to stay with power sf. I would ask that you pass the accelerated proposition and we can refine things from there. Thank you. Hopefully you saw my comment. Because the california Utilities Commission waited so long, we only had a week to put those out. I know at least three of the respondents not supporting the staff recommendation explicitly, im confident had we had more time to reach out we would have had a majority of comments in favor of the time coincident case which is what my comments are in favor of. We need more resilient electricity blackouts and jobs. Especially because of the virus crisis. And we also need need local resilient from the wild fires. These crucial develops are more important than getting to the goal in 2025 than 2030 which just gives us on paper the goal of 2025. We need to focus especially on the jobs case. I would highlight, were talking about a lot of jobs here. The time coincident case does not get us to that many jobs but at least a decent start on it. Thats the case we need to be advancing. We need to be working on this until we get a robust plan. If its funded with Revenue Bonds and net work, that would make that 20 extra cost go away. Thats the mistake that this report make sz that it doesnt plan on using Revenue Bonds. Next caller. Im the program manager, weve recently been contracted as the Renewable Energy consultant. We performed a review posted for Public Comment last week. We were submitting the accelerated case. Supplying customers with Greenhouse Gas by 2025 which is five years earlier. Several detailed comments for the clean power sf site on august 21. Well continue our review given the short timeframe and plan to provide these comments and clean power sf with additional feedback at a later date. We recognize the challenges and time line with the irp. We appreciate the detail provided. Some sections of the plan can be strestrengthened. Se where do we go into the grn economy. Giving you a great big beach ball or little ping pong ball depending on how you take it. You have a couple comments on what the job aspect is on this resolution and will be forward, swre to meewe have to meet deadd time lines in order to get anything done. More so in San Francisco than anywhere else in the nation. The question is framed on jobs and i want to followup on that base on that being brought up from one of the Public Commenters. We provided the amount of jobs, they are on the order of eleven thousand, 14,000, this is for the development of new capacity, Renewable Energy and Storage Capacity principle utility scale projects to serve power sf customers over the next decade and these jobs will come about as the result of us issuing solicitations. In thoseall of our solicitations that involve new projects require a minimumweve given addition appoint n pointso agreements. Weve been absolutely, i think the jobs youre looking at there are good jobs. They are construction. Most of the jobs created with these projec projects are constn jobs. Renewable energy plans dont require a lot of operations. This is also one part of the job story. Jobs are created in other ways. Theyve been created to operate the program. Theyve been created also through investments that we make. Now that weve fully enrolled from power sf city wide. Were shifting our focus on adding complimentary customer programs. One of the nice things about the customer programs is that our customers are in San Francisco. They are local by definition. Which means the jobs to serve a lot of these customers will be local as well. This is a big part of the job story. The development of the power supply but its only a part of it. I do want to make that point as well. Thank you. We all know, i believe that wages is the umbrella. That part is a given, prevailing wages pertain to everybody. What is targeted to be done in the construction or maintenance or revialallization of something thats going to go to another level. Thats the question and just a comment on what the umbrella is. We know that prevailing wages is there and that doesnt mean anything if it doesnt get pinpointed. But thank you. That was a good swing. The next version of this report is due in two years . Yes. Okay. So this is really a point in time kind of report. It is a point in time. Recognizing that the planning process is rolling. The market is changing all the time. New technologies become available, regulations change, available incentives change. There is almost no doubt in my mind that a year from now well be looking at a different world that could mean some differences in how we approach things. I think that one of the positives of the accelerated case that were recommending is it doesnt over build. It doesnt commit to over building which i do think is whats going on with the time coincident case. By not committing to that overbuild, i think it leaves us room to continue to look at and develop more local projects in the portfolio. Its a more competitive portfolio from a cost standpoint. I do want to under score our operating circumstances for clean power sf. Its not a monopoly. Its a Competitive Service where customers can opt out. If we do not have a competitively priced product for our customers we run the risk of losing them. That is, i think, a really important context yul contextuao keep in mind as we look at trade offs. Our recommendation was really trying to balance these trade offs. Thank you. Two years is actually prit a short amount oactually prettysh. Theres a lot of work to get done to get the accelerated case. Some of the options like the micro business stuff might have some bearing on our thinking as we talk about dealing with the Distribution System and what pieces of that we might want to acquire and what way we might want to do that. That and the general issue of becoming more resilient against the major transmission failures is something that needs to be on the table as we go forward and look forward to the next plan that we publish in two years. When you say overbuilding, what do you mean . I mean adding really more Energy Producing capacities than the program needs. One of the things that we included in the report that we posted, this was a little bit in the weds is we showed how the time coincident case starting in 2030 is selling a significant amount of power that we have to develop to the grid. We become a whole sale supplier to the grid. That is taking a position that increases the risk to the program. Thats what i mean when i say overbuild. To meet that time coincident design we need to build more capacity than we need to meet capacity over the course of a year. Are you saying that theres some elements of the coincident that we can do, within the accelerated program. Yes. Im glad you asked that. Because the accelerated case, it also strives to balance supply and demand. The main difference was that we did not setmake it a Firm Requirement of the accelerated case that it be balanced at all times. That means we are at times using the california grid to absorb some excess solar. Also to purchase at other times when that solar and wind may not be available. We do set limits and that portfolio also performs quite well. It brings the net purchases and sales down a couple Percentage Points per year. It actually does perform quite well in that respect. I think thats a characteristic that we continue to strive for which is to balance our supply and demand. Because our goal is to serve our customers load. We should always be striving to meet that objective. It becomes more difficult the more Renewable Energy you have in your system because its variable. I do not think that they are exclusive entirely. Thank you. Do we have a motion. Ill second that. Madam secretary, roll call, please. Would you please read items 11 and 12 together. Discussion and possible action to authorize the issuance of up to 20 million water Revenue Bonds. Discussion and possible action to issue efgh taxable water Revenue Bonds. Today im presenting on two bond transactions. Before we turn to the next slide, i want to preface by saying this is an excellent time to be borrowing in Capital Market rates. Strong demand for our bonds since we are essential service utilities, water, sewer, and power are attractive bonds right now particularly in light of the pandemic thats going on right now. Lets turn the ab cd water Revenue Bonds. Up to 850,000,000. 2020 serie serieswere funding projects in each of these project categories. Were also using proceeds to pay off commercial paper. New money sales. Its been almost three years. This transaction was included in the fiscal Capital Financing plan in november. Next slide, please. The next transaction is a refunding transaction. Revenue bonds in this case, were actually up to 850 million. The amount is like wily to change subject to interest rates. These will be taxable advance refunding bonds. We can take advantage of doing tax exempt debt. In light of the marketplace, we can achieve just over one hundred Million Dollars of rate savings if we can move forward with this. This transaction will be in compliance with debt policy thats were updated and you adopted back in november of 2019. Next slide, please. The plan is to price and sell the new money ab cd bonds first assuming approval today. The refunding bonds about a month later in mid october. Both transactions will be sold on a negotiated basis. An under writing group led by prequalified under writer pools as well as competitive rfp process. In keeping with todays commissioner bond disclosure training, the following is a disclosure q and a for each transaction. This is something thats presented in the staff reports. Its something that weve been including in all of our bonds. We lost your audio for about thirty seconds. Sorry about that. Ill just continue. Fixed rate for thirty year term. Capitalized interest. Bonds are sold via negative negg sale pricing terms. Next slide, please. And continued with the ab cd bonds, the debt service will be paid from water rates and charges. Rejected annual debt service of about 31 million. Finally the issuance of the bonds have a negative impact on credit ratings, we do not anticipate a negative impact on the ab cd bonds. Next slide, please. Debt service will be paid from water rates and charges. The first bonds we talked about are going to cost rate payersbasically its four dollars. Thats one way to look at it. Absolutely. Could you please open this up to Public Comment. Members of the public who wish to make comment on items 11 and 12 please dial the number and access code, pound pound and star three if you wish to raise your hand to speak. Mr. Moderator do we have any callers . We dont have any callers in the queue at this time. Public comment is closed at this time. Well have to make a motion separately. So moved. Second. Madam secretary, please take roll call. You have four ayes. The motion carries. Do i have a motion and second on the second item 12. Move to approve. Ill second. Madam second, roll call, please. The motion carries. Next item, please. The next item is item number 13 approve the extension to the emergency Customer Assistance Program for covid 19 relief currently scheduled to end on september 4th 2020. Hi. Good afternoon commissioners. I was wondering if we really need a long discussion on this. Were very aware of what it is. Youre just extending it, correct . Correct. It it was going to be short talking points. We can skip them and move right to questions. Okay. Please open to Public Comment. Members of the public who wish to make Public Comment on item number 13. I will second it. Madam secretary, roll call, please. Its a very broad plan around the bay area that were actively involved in in terms of basis for Regional Water Management Grant for the department of Water Resources. This is a minor amendment to that plan and ill be happy to answer any questions about it. Commissioners, questions . Comments . If its one minor amendment, could you just say it . There were several thatits a short list. Discuss private change vulnerabilities in the area. Water management strategies, outline specific process and strategies to include under represented populations. Include Additional Details in work performed and involvement program. Contaminant management plans. Changes to the 2016 grant guidelines. To the chair, i move to adopt item 14. Second. Madam secretary, could you please open it it up to Public Comment. I was early. Members of the public who wish to make comments to item 14 please dial the number, meeting id, pound, pound and to raise your hand, star three. Applaud your enthusiasm. Okay. We just have to wait here for a moment. Mr. Moderator, do we have any callers . Madam secretary, there are no callers in the queue at this time. Ill make the motion now again for the record. Okay. Thank you. roll call four ayes. The motion carries. Next item, please. Item 15 is approve the water supply project. This is a routine water supply assessment for the temporary trans bay terminal site for mixed use development. Theyve already been through the planning process. Please open it up for Public Comment. To raise your hand to speak, press star three . Through the chair, ill make a motion. Do i have a second. Authorize the general management to execute the agreement amount increasing by 4 million in two months. Just say that this item were asking to extend the dollar amount for time to look at another design alternative that would avoid the Design Concept of going under highway 101 and cal trans modifications. We made a mistake in asking for the duration. Well be back to you in the middle of next calendar year to ask for additional time. Were asking for some time right now. Mistakenningly in working with our folks, we misunderstood the time. Well be asking for additional time for design support during construction . Would that be additional money as well . Probably additional money depending on which alternative well be going with . I have a question to the chair, does that mean if we voted for this right now even though weve been informed that theres going to be another amendment that were voting for something that is not going to continue and is there any problem with us doing that knowing up front that there will be more money and some more time put together on that. As you said, we did not frame this as well as we wanted to, is that stillis this time sensitive . Is this going to screw up the project . My question is are we committing ourselves to something that could be controversial in a little while. People talk about why didnt you do it the first time . We do need this item to be approved because as it currently stands, we dont have enough time left on the contract. We are working with cal trans to try and keep with the original alternative. But because cal trans may say no, they dont want us to modify their u. S. 101 foundation, we may have to choose a different alternative. My question is what does the time line have to do with the cal trans thing . We need to amend this contract otherwise the contract will just end because we dont have enough time on this contract to even continue with design if you were to deny this amendment today. We would be delaying the whole project and have to put out another rfp. Okay. Thats the type of answer im looking for. I will on the factdo we have to go to Public Comment or did we already . We have to go to Public Comment first. Madam connect. Members of the public who wish to make Public Comment on item 16 dial the number, meeting i. D. , powpped pound pound poundr hand to speak press star three. Mr. Moderator, do we have any callers . Madam secretary, there are no callers in the cue at thi queues time. I make a motion to this item as written. Ill second it. Thank you. Madam secretary, roll call, please. Four ayes. Motion item 16 carries. Next item, please. Approve the terms and conditions of the general manager may i have a motion . Thank you. Madam secretary, roll call vote please. Clerk [roll call] you have four ayes. The motion carries. Madam secretary, could you please read the items for closed session. Clerk item 20, conferring with or receiving advice from the City Attorney regarding the existing litigation with the gas and Electric Company as an adverse party. Item 21, federal Insurance Company existing litigation as a separate cct Enterprises Llc with the city and county of San Francisco. And item 22, a separate of ghsflet al, versus the city and county of San Francisco. Okay, can you please open up the closed session items to the public for comment. Clerk members of the public who wish to make Public Comment on closed session items 2022, dial 1 415 6550001. Meeting i. D. 146 136 9319. Pound, pound. Raise your hand to speak, press star, 3. Mr. Moderator, do we have any callers . Madam secretary, there are no callers in the queue at this time. Clerk thank you. Public comment on closed session is closed. Commissioners, may i have a motion whether to assert the attorneyclient privilege . Move to assert. Second. Commission secretary, could you please call the roll call vote. Clerk [roll call] that is four ayes. The motion carries. We will now enter into closed session. Today. clapping. ive been working in restaurants forever as a blood alcohol Small Business you have a lot of requests for donations if someone calls you and say we want to documents for our school or nonprofit ive been in a position with my previous employment i had to say no all the time. My name is art the owner and chief at straw combinations of street food and festival food and carnival food i realize that people try to find this you dont want to wait 365 day if you make that brickandmortar it is really about making you feel special and feel like a kid again everything weve done to celebrate that. So nonprofit monday is a program that straw runs to make sure that no matter is going on with our business giving back is treated just the is that you as paying any other bill in addition to the money we impose their cause to the greater bayview it is a great way for straw to sort of build communicated and to introduce people who might not normally get to be exposed to one nonprofit or another and i know that they do a different nonprofit every most of the year. People are mroent surprised the restaurant it giving back i see some people from the nonprofit why been part of nonprofit monday sort of give back to the program as well answer. Inform people that be regular aprons at straw they get imposed to 10 or 12 nonprofits. I love nonprofits great for a local restaurant to give back to community thats so wonderful i wish more restrictive places did that that is really cool. It is a 6 of nonprofit that is supporting adults with autism and down syndrome we i do not involved one the wonderful members reached out to straw and saw a headline about, about their nonprofit mondays and she applied for a grant back in january of 2016 and we were notified late in the spring we would be the recipient of straw if you have any questions, well be happy to answer thems in the month of genuine we were able to organize with straw for the monday and at the end of the month we were the recipient of 10 percent of precedes on mondays the contribution from nonprofit monday from stray went into our post group if you have any questions, well be happy to answer theming fund with our arts coaching for chinese and classes and we have a really great vibrate arts program. We we say thank you to the customers like always but say 0 one more thing just so you know youve made a donation to x nonprofit which does why i think that is a very special thing. It is good to know the owner takes responsibility to know your money is going to good cause also. It is really nice to have a restaurant that is very Community Focused they do it all month long for nonprofits not just one day all four mondays. We have a wall of thank you letters in the office it seems like you know we were able to gas up the 10 passenger minivan we were innovate expected to do. When those people working at the nonprofits their predictive and thank what straw is giving that in and of itself it making an impact with the nonprofit through the consumers that are coming here is just as important it is important for the grill cheese kitchen the more restrictive i learn about what is going on in the community more restrictive people are doing this stuff with 4 thousand restaurant in San Francisco were doing an average of 6,000 a year in donations and multiply that by one thousand thats a lot to working with kids, they keep you young. They keep you on your tones on your toes. Teaching them, at the same time, us learning from them, everything is fulfilling. Ready . Go. [ ] we really wanted to find a way to support Women Entrepreneurs in particular in San Francisco. It was very important for the mayor, as well as the Safety Support the dreams that people want to realize, and provide them with an opportunity to receive funding to support improvements for their business so they could grow and thrive in their neighborhoods and in their industry. Three, two, one because i am one of the consultants for two nonprofits here for entrepreneurship, i knew about the grand through the renaissance entrepreneur center, and through the Small Business development center. I thought they were going to be perfect candidate because of their strong values in the community. They really give back to the neighborhood. They are from this neighborhood, and they care about the kids in the community here. When molly molly first told us about the grant because she works with Small Businesses. She has been a tremendous help for us here. She brought us to the attention of the grand just because a lot of things here were outdated, and need to be uptodate and redone totally. Hands in front. Recite the creed. My oldest is jt, he is seven, and my youngest is ryan, he is almost six. It instills discipline and the boys, but they show a lot of care. We think it is great. The moves are fantastic. The women both are great teachers. What is the next one . My son goes to fd k. He has been attending for about two years now. They also have a summer program, and last summer was our first year participating in it. They took the kids everywhere around San Francisco. This year, owner talking about placing them in summer camps, all he wanted to do was spend the entire summer with them. He has strong women in his life, so he really appreciates it. I think that carries through and i appreciate the fact that there are more strong women in the world like that. I met dandrea 25 years ago, and we met through our interest in karate. Our professor started on cortland years ago, so we grew up here at this location, we out he outgrew the space and he moved ten years later. He decided to reopen this location after he moved. Initially, i came back to say, hey, because it might have been 15 years since i even put on a uniform. My Business Partner was here basically by herself, and the person she was supposed to run the studio with said great, you are here, i started new Nursing School so you can take over. And she said wait, that is not what i am here for i was by myself before for a month before she came through. She was technically here as a secretary, but we insisted, just put on the uniform, and help her teach. I was struggling a little bit. And she has been here. One thing led to another and now we are coowners. You think a lot more about safety after having children and i wanted to not live in fear so much, and so i just took advantage of the opportunity, and i found it very powerful to hit something, to get some relief, but also having the knowledge one you might be in a situation of how to take care of yourself. The selfdefence class is a new thing that we are doing. We started with a group of women last year as a trial run to see how it felt. Theres a difference between selfdefence and doing a karate class. We didnt want them to do an actual karate class. We wanted to learn the fundamentals of how to defend yourself versus, you know, going through all the forms and techniques that we teaching a karate class and how to break that down. Then i was approached by my old high school. One once a semester, the kids get to pick an extra curricular activity to take outside of the school walls. My old biology teacher is now the principle. She approached us into doing a selfdefence class. The girls have been really proactive and really sweet. They step out of of the comfort zone, but they have been willing to step out and that hasnt been any pushback. It is really great. It is respect. You have to learn it. When we first came in, they knew us as those girls. They didnt know who we were. Finally, we came enough for them to realize, okay, they are in the business now. It took a while for us to gain that respect from our peers, our male peers. Since receiving the grant, it has ignited us even more, and put a fire underneath our butts even more. We were doing our summer camp and we are in a movie theatre, and we just finished watching a film and she stepped out to receive a phone call. She came in and she screamed, hey, we got the grant. And i said what . Martial arts is a passion for us. It is passion driven. There are days where we are dead tired and the kids come and they have the biggest smiles on their faces and it is contagious. We have been operating this program for a little over a year all Women Entrepreneurs. It is an extraordinary benefit for us. We have had the Mayors Office investing in our program so we can continue doing this work. It has been so impactful across a diversity of communities throughout the city. We hope that we are making some type of impact in these kids lives outside of just learning karate. Having selfconfidence, having discipline, learning to know when its okay to stand up for yourself versus you just being a bully in school. These are the values we want the kids to take away from this. Not just, i learned how to kick and i learned how to punch. We want the kids to have more values when they walk outside of these doors. [ ] supervisor haney our clerk today is erica major. Madam clerk, do you have any announcements . Clerk [inaudible] and the board, the