Transcripts For SFGTV BOS Budget And Finance Committee 92315 20150924

Covering this meeting. Please silence any Electronic Devices and speaker cards should be submitted to the clerk and items today will be appear on the september 29th, board of supervisors agenda unless otherwise stated. Could you call item one . Item one, resolution, authorizing the Police Department, accept and expend the donation of 55,000 pursuant to the order of final distribution of the estate of nguey woo. We have the deputy chief here to speak on this item. Yes, good morning, i am ali and the deputy chief administration, San Francisco Police Department. On behalf of the chief and the entire San Francisco Police Department, we want to first and foremost thank the estate of woo for the tremendous donation. These funds have been ear marked focontinuing our Community Policing efforts and we are most gracious and thankful that the board is considering allowing us to accept these funds. Great. Thanks very much. Seeing no comments, we are moving on to Public Comment, anybody wish to comment on item number one . I never seen inaudible and order inaudible and three years. Do you have any comments on item one . Sir. Okay, anyone else wish to comment on this item . Seeing none, comment is closed. I want to thank the woo family and particularly this individual to the very generous donation to the Police Department but also saw to other organizations as well and so i would like to pass this resolution with a positive recommendation for the full board. Okay we have a motion by tang and take that withouter objection. Could you call two. Resolution of approving the issuance of nottoexceed, 41 million of Principal Amount of and new and clean, renewable necessarier bonds to be issued through the city. Tell you what, supervisor breed, i believe, wanted to speak and she said that she will be here and why dont we take these items first. Could you call three first. The resolution to approve the terms and conditions of the consent assignment agreement for the agreement, cs169 for planning and Engineering Services for the proposed waste water, enterprise, system Improvement Project, within the wh america. Okay. And we all have a few speakers on this item. Yes, good morning, members of the budget and finance committee. Thank you for hearing this item today. My mame is wong and i am the senior project manager, and the resolution before you, requests the board of supervisors approval. To execute a agreement of cs169 for planning and Engineering Services, on the basis and the central base of the Improvement Project. The potential council, and arose as a result and the acquisition of the urs, cooperation, which is a joint venture partner on this contract. Because of it, and because of the source of the improve the programs and the program manager. To resolve the potential conflict, they request that the city consent to the assignment of the interest in the agreement to the nwh american and there is no change to the total 30 Million Contract or the contract, or the contract, duration, the cbs ip, and the central, Improvement Project, is part of the sfpuc, System Improvement Program and will provide the liability about the citys side based water Collection System and if you like i will show you the graphics on the project. And if that will be of interest to you. I am okay,vy seen it before, colleagues . Okay. I think that we are okay. We have a presentation here, we are okay. Show the graphic. Sure, why dont you and lets go through it. Okay, great. So the actually the city is organized into eight water sheds and so the waste water collection. And on the base side, you can see on the graphic, that there was three large sheds on the north base line. And what we are calling the north shore water shed and the channel and the water sheds. We actually the sfpuc has a series of collections facilities and underneath the streets surface, that collects and transports the waste water, ultimately to the far east, Water Pollution control plan in the bay view for treatment. You can see that actually, there are box suers underneath in the green and along the railway and along the creek. And however, we just see that and you can see that there is some what of a missing piece there. And it was not really a missing piece, but a list piece between the Mission Creek and the inaudible creek. Did we skip a slide . Any way, of the or of that there is a link and there is a critical link, what we called the channel fourth main that transforms it from the end of the Mission Creek to the south east plan and that conveys, 70 percent of the waste water and san tarry flow on the average day like today. And if the 66 inch diameter, maybe, constructed in the 70s. These are not quite so flattering pictures of what the main looks like. And it has been damaged, seriously three times. And due to earthquake and construction activities. And due to the settlement and the vandalism. There is a picture of it showing the patch that was done previously, on one of the repair jobs and also, what sections that are forcing above ground that this section there by the creek. There is no way to take it out of service, we rely on it 247. And it with no alternative way to convey the flows to this plan and so it does, and there in this main and the city, will have some risk of overflowing waste water, in to the bay. So this project and we are hoping to find a way to provide redundancy and to convey the flows and possibly we will also be able to address some future regulatory concerns. And address the over rise in the future. And so, this project, we are looking currently at a proposed gravity solution of a gravity tunnel to convey the waste water instead of pumping the flows and so that is basically the scope of the project. And what we have and if there are any questions that you may have. Thank you. Supervisor tang. Thank you for your presentation. I know that the item does not change the contracts. Out of curse onsty, do you know when it is for completing . Depending on the funding we are targeting in 2022 if we proceed on schedule that is currently anticipated. Great, thank you. And okay, colleagues any further questions . Okay, seeing none we will open this up to Public Comment. Anybody wish to comment on item three . Water and clean and waste water inaudible naoe. Thank you, anyone else wish to comment on item three . Seeing none, Public Comment is closed. All right, the chair, i would like to make a motion to send forward item three with a positive recommendation to the full board. We have supervisor tang and we will take that without objection. Okay. Lets go to item two. And supervisor, breed i know that you sponsored this, if you have any comments or want to save them for later . Okay, we will hear them later. Committee members, eric sandler assistant general manager and of the San Francisco puc. And but, the item before you is approval of the issuance of 4. 1 Million Dollars in new Clean Renewable Energy bonds and they are referred to as mcrebs. They are essentially a federally, tax advantage for Renewable Energy projects. And we receive a 70 percent from the federal government and we will yield the cost and the attractive interest cost of about 1. 7 percent. And the puc has issued ncrebs previously in 2008 and 2012, to fund the solar projects. The proceeds of the issuance will fund, two projects one at the marine Little School and one at the sf Police Academy. We received an irs allocation in april and we will send a lender rfp in july of this year and they acted on september the 8th ask we are here before you and the proposed balance will be october, 15th. And the requested action is to authorize the issuance of the mcreband to improve the form of the bond documents and the equipment and the direct Purchase Agreement and the filing agreement. I am happy to answer any questions. Okay, thank you very much, colleagues, any questions. Supervisor tang . Just one question, that i know that the sites that were chosen, where the sorry the Police Academy and the middle school, could you talk a little bit why those sites were chosen in the process for that . And i believe that the, yes. That will be it. I have our program, manager, here who could cover on the project. Good morning, smith from sfpac power enterprise. So, the reason that we chose these two projects the Police Academy is it fits the criteria for. Crebs application. And we have already these are two projects that were already in process. In development. So the first one is the Police Academy and that is the first one that we are going to do and that is about a 200 kilo wat system. And the carport. In the parking lot area. And the second one is the marina school. And that one is going to be cited probably about midway through the Police Academy. And construction phase. So they are both ready to start the project development right now, with the Police Academy happening first. And the middle School Following up after that. And the other reason that we chose the main Little School is because the School District is already a customer of the puc power. So it kind of any of those to introduce more of it into the mix. I guess, through the chair, and to go on that question. And if you could just say, like, why, for example, the Marina Middle School verses other schools and the details, for the original selection . Sure, the process is we work with the School District, identifying which schools have roofs that can handle the installation and we have already done about five schools. Starting with el dorado elementary and moving through the Downtown High school. And also, working on cesar chavez so this was just what the School District termed would be the best fit, and we are trying to go to the different schools and different locations around the city. But it is not just all in one district. Okay, any of the other questions . Okay, could we go to our item number two . Budget analyst . Okay. Good morning, chair. Farrell and supervisor tang and breed from the office. We sum marized the impact to the issuance of the bond and the bank of america will purchase these bonds and based on an rfp process and right now, the estimated Interest Rate is 4. 88 percent and the final Interest Rate will be determined when the bonds are sold on october, 16th and as you can see from our table here, the proceeds of 4. 1 million which includes the cost of issuance. The interest on bonds is estimated to be 1. 8 million, and the total cost to the city is 5. 9, and the subsidies from the irs will be 1. 2 million and the net will be 1. 7 million cost to the city and we recommend approval. Thank you very much. And seeing no other comments, we will move on to Public Comment and we wish to publicly comment on item two . And seeing none, Public Comment is closed. All right, we would like to make a motion to send forward item two to the full board. We take it without objection. Could you call items 4 through 17 together. 4, resolution authorizing the execution and delivery of multty Family Housing revenue note for the purpose of providing financing, and the acquisition and rehabilitation of the multihousing rental projects located at 491, 31st satisfy, 345, arguella boulevard. 990 faive fix avenue, and 666 ellis street. 1150 scott, street, 1880 pine street, and thanks, from the Mayors Office of housing to speak here. Good morning, supervisors my name is ria, and i am with the housing and Community Development. Pleased to present today on 14 separate, issuance resolutions to finance the first phase of the rod conversion, plus this represents, 1422 units of housing and 14 distincts projects and you just heard the addresses. In total it authorize the city to issue up to 399 Million Dollars. In tax exempt multifamily bonds to finance, moderate rehabilitation of these projects. Today, marks the major mild stone to make responsibility for the ownership and the management of these properties. Under the program it will convert from Public Housing which was separate and study and severe cuts to the operating and capitol repair budgets, since the 80s. And to the section 8 program. And section 8, subdy contracts provide more stable, Funding Source that allows the projects to leverage outside of the housings for along the repairs of these sites. And when in the case of the 14 projects that we are contracting today, we are averaging about 285 million, in private equity, and 86 Million Dollars, in permanent debt. And we will complete, approximately 250 million, in capitol repairs, where we had the city is also contributing about 35 million to the 14 projects. And the influx of capitol, are described as a stark contrast to the 5 million that the Housing Authority has recently been provided by congress to maintain these properties. And approximately, 3500 Additional Units in the support. And conversion to the rad provides us with the opportunity to improve the units that house many of the lowest income residents and these residents are at greatest risk, of economic displacement. And in phase one, the properties are located in 9 out of the citys eleven supervisor vision districts including many areas where the areas where the production of units is beyond our reach, including the castro district, and lower the pacific heights, and the heights and richmond, and i have a brief powerpoint, that i would like to present. For the endosement of these bonds and so rad is a new program. We have two phases of rad, and this is the only first phase that we will bring you today in total we will be leveraging 700 million in equity, and 244 million in private debt and this is really remarkable and, the value of the dollars that we will be abe to bring to these properties which have suffered deferred maintenance for many years now. And under rad ownership, will convert, to the partnerships, or that include, nonprofit, and general partners. And we will also be bringing on site Property Management to these sites, as well as on Site Resident Services which previously tends to not enjoy. So again, in what when you look at the two phases, we have 28 projects total and we have 8 Different Developers that were selected about 18 months ago to do this work. The key aspects of rad that are really critical to us and to the residents, the permanent affordability. And so there is a 99 year ground lease that will insure long term affordability and there is additional regulatory restrictions on each property and imposed to the city that layer on additional affordability requirements for 55 years. And another aspect of rad that is part of the federal regard program that has been enhanced locally, is a strong resident protection component and under rad all residents have the and the Public Health and into the section 8 program. Without having to be rescreened and without having to go through any, application process. And any tenants that are temporarily relocated because of the construction have the right to return and as i mentioned before. We will be providing resident servicesal all sites. And obviously, huge volume of repair is in the works. And here, you will see a graphic, showing who the Community Developers are that are responsible for each of the phase one projects. We have the authority to do an rfq for qualified developers, in march of last year. And these are the selected developers. And just a quick run down on the schedule for you. And since we were here in april, we have basically locked down the financing plan, and we have identified bank of america as the equity and debt partner and we have got the prelim approval from hud to move forward and we are planning to close the projects next month and start the rehab in november. Phase two, is upon us, and you will see us next month for november and with another 14 endorsement resolutions. And that list projects are schedule to close in a year from now. So that will be another 266 units that will be going through the same conversion, from the Public Housing, to rad. And so we will be back to see you, for those results as well. And i would like to take this opportunity to acknowledge the tremendous effort by all of the parties that together, appeared today in preparation for the conversion next month, as you all probably know, the Housing Development for the existing project to be recapitalized is usually a three year process. We have found this in 18 months. And with the Mayors Office of housing and Community Development and the Housing Authority, and mutpel City Departments including the Planning Department and the building department, and the attorney, and county, surveyers office, and as well as the residents themselves of these sites have been working around the clock to prepare for this transition. And in particular, the citys Affordable Housing developers, have worked under excel rated and schedule and which is by and large, beyond our control. And they were here today to answer any questions that you might have about the individual, and the 14 individual projects. And so i will list those, organizations for you, and the China Town Development center, and related to the california, and the tabernacle community, development and the tender loin, development and the Community Health and partnership, inaudible and the heights neighborhood, center, and mission, Economic Development agency and mercy housing and the company, and the San Francisco, Housing Development corporation. I could answer any of the questions over the over all port foel portfolio as well. Any comments or questions . Supervisor breed . Thank you, i appreciate your presentation on this and i just wanted to bring up a few points. First of all, this is a long time coming, as many of us know, with the Public Housing here in San Francisco, there has been a tremendous amount of neglect over the years. And i know that with as many of our affordable Housing Developments throughout San Francisco, we have invested millions of dollars in rehabilitation, and in some instances that rehabilitation, the quality of that work has not always been good. And i am really concerned, and i know that this is something, that is better than not doing anything at all. And there is work to be done. And as much as this is going to have a tremendous impact, you know, i am concerned about cutting corners, in order to either to stretch the dollars, or stretch profits. Or what have you. And as it relates to the quality of the work that needs to be done. And especially in the instances of those properties that are, you know, over, 70 years old. And really need to be torn down. There is going to be a lot of work that needs to be done there and i would like to know a lot more what your office plans to do, to over see, these projects. To make sure that the quality of the work that is done, is good quality and you know, folks are not just walking away, with large profits. But we are getting this work done, to the residents, and we are making sure, that this is not work that needs to be done, in the next ten or 15 years. Because i know that we are required to, and we will not be able to, and i will give you an example to, in the court and using that program, west side court deserves a new and, they deserve new housing. But unfortunately we are not going to be able to do that in the near future and as a result we will not be able to do anything new with the west side courts for another 15 years. Because of rad and the question that i have is, what does this mean for the residents . Does it mean quality workmanship . Does it mean that, you know, the rats and the roaches and the pipes, and all of the challenges that they deal with, on a daily basis, will be solved as a result of the amount of money that we are investing to repair their property. Thank you, supervisor for your comments and your questions. I will acknowledge that given the volume of projects, we have had to emphasize Cost Containment with the developers, simply because it is not customary for us to carry this many projects at once. And we have kind of an allowance for the rad projects for the two phases that have or have forced us to are very, and more than ever, of the bottom line, on the construction costs. And that said, i feel at this point, some of the projects that you mentioned that you are alluding to, for example, the holy courts and back in 1940, and the original piping has never been replaced and the mold, problems were there and due to the concrete construction. And that property, that we are doing, 20 Million Dollars of rehab. And we are going to be doing, some large, systems replacements, and we are not cutting corners on those areas that effect the life safety, and the building envelope which is the fancy term for Water Proofing and roofing. And for accessibility. And so that was kind of our over all, directive to the tune of life safety and that includes, fire alarm systems and Security Systems and like i said the billing envelope and the accessibility and we have hit all of those marks and because of the favorable terms that we are negotiating with the bank of america we are bringing aa lot more resources into the portfolio and we are going to be able to add back some of the construction items that have been engineered out. And so, even though we would like to have done more and there is always more to be done ore goal, in the 20 year use of life for these properties which is a requirement and it is also, a requirement of the bank. In terms of construction, monitoring, the bank of america, is a construction lender and they have construction supervisors on site at the projects every month, and the city as a construction, member will also be, on the site every month at all 14 projects and will be approving all construction jobs and inspecting work and we will be approving all change orders and we have hired up and so we have now four Construction Managers at the office of Community Development that will be working on the rad projects as well as other projects and i would be happy to provide you more detail on the staff and the work for those folks. But i feel like we have the systems in place to manage this scope. And it is, and it is the developers, and the citys mutual goal to do as much as possible to make and improve the habitbility of these sites for the sake of the residents. So i appreciate that and i am glad that there will be a lot of oversight, but i want to also give you examples of some of the issues that some of the residents faced when we rehab work is done more specifically in the western edition, so for ken garvy, for example which is a project that was completely rehab taited there are residents there that are still having problems with their stoves, and problems with the carpet on their stairs and it is not being installed correctly and the problems with the bars that are hanging where they hang their towels in the rest rooms and the need to basically, you know, put those towel racks back into the wall on several occasions so we are talking about the work is done, the materials are selected and they are installed, and you know, the people who are moving in back into these units, are dealing with basic quality of life things to the point where there are several households that still dont use their stove because of some weird smell, which i know that the developer tried to work to resolve the issue. Again, it is still a problem, with two many of the residents. It is a consistent problem, with a lot of the different residents of garvy and the other project which was completely rebuild was plaza east, also done by related. Some very similar problems, not with the stove, necessarily, but the quality of the appliances. The refrigerater and the bathrooms, and the walls, and the ability to hold towel racks and we are talking about putting one or maybe even two towels on a towel rack which many of us do at home, and the fact that it is a problem, and that is an issue for the residents is something that i am concerned about. The point that i am making is you know, when we look at the quality of life in terms of safety, and making sure that the pipes are installed appropriately, that there are things that deal with, you know, mold issues, and other things in terms of health and safety, issues. We also need to look at, oh, and none of the other things that i could mention is, and installing the carpet. And with no carpet mats or anything, to protect the floor, or anything that, and i mean that, and it might as well not have been carpet installed in the first place. Based on the quality of the carpet that they installed, but more importantly, the fact that there were just it was a flat, basic, carpet that should not have been installed in the first place, so the point that i am making is, i am hoping that when we and we are rehab taiting these properties, that yes, we are doing what we can to meet life and safety standards. But we are also thinking about the people that are going to live here. And making sure that their units are prepared for them, so that we dont want run into a lot of these problems that are sadly consistent with rehabilitation work in any of our affordable Housing Developments. You know i just want to make sure that this is not, continuing to be a problem. And we keep our watchful eye on it. Because, my, i dont want to have to revisit, you know, work on these projects or con stit you ents contacting me about the fact that they cant use their stove, or the fridge is out, or they are running into, whatever problems we are running into. Directly, after rehabilitation project. If we can keep a real sharp eye on projects and making sure that we are holding these developers for a High Standard for the folks that they are, 20 Million Dollars is a lot of money, and i know for construction costs, in San Francisco, sadly, it does not go sometimes a long way. And it is also, definitely not enough to tear down a property and rebuild it, i get that. But it is certainly enough to make sure that we dont have to look at this project and do any additional work, other than basic maintenance for the next ten or 20 years. Thank you, supervisor. I would just like to add one comment. And in connection to your comment. One thing that we are going to be able to do after the rad conversion is actually have on sight property manager fully staffed because of the thoser and funding constraints, it has been common to have one property manager, share them on several sites. And the same thing going for the maintenance and the repair folks, and the janitorial and so we are going to have a much more responsive on sight, Management Structure at each of these Sites Association that in the case, of failing construction or amendies and stoves, etc. There will be fully staffed, property, manager departments available to be responsive and where there has not been before. And that does not, get at your concerns, but hopefully, we will be in a better position to be responsive to the residents. I want to say two things about that, because with plaza east there is a full time on site person, for that property. But, there is no money to do the repairs. There is no money to you know, respond to the residents in a timely manner. So, you know, is that going to change as a result of the program . All of the underwriting requirements include replacement reserve deputy and we also capitalize the replacement reserve for each project and so the project starts out with the healthy reserve. And so for those kinds of capitol repairs. And the bank of america as invester lender will also have the same kind of requirements as does hud and so the idea is to start the project off on the right foot and give them, set up a bank account for them where they can start to make repairs as soon as possible. We also require what is called a po, and a physical Needs Assessment every five years. Where the owner looks at the building, systems and estimates when the things will need repair and so that goes everywhere from boiler system and roots all wait to appliances in the unit form and in the unit and so that is a tool that allows them to plan and look at their reserves that are available. And request additional funds, or plan accordingly, if they are, or if they anticipate a shortfall. So i think under, after rad conversion, there will be more safe guards in place for that allow us to plan and be really thoughtful about these kind of repairs and making sure that we are ready to make them when they are ready to be made. Will the residents be trained in order to take on the important opportunities of Property Management on site Property Management . That is a question that will probably go individually to each of the developers. And some of the developers involved in the rad conversion, have employment programs for residents. For example, Community Health and partnership training, and residents, and low income san franciscans in the clerk, program and they have other, employment, and enterprise, opportunities, and i know that they will be provided the desk clerk staffing to other projects. And so i dont know if those are specifically for rad residents. Okay, is that information that we, or that you can provide my office with . Certainly, we can, we can pull the developers and find out what plans are under way to work with residents in terms of employment opportunities. We do have we are working with the Housing Authority on their employment goal for the construction period. Which requires a 25 percent of the work hours go to Housing Authority residents. And this is not just residents, of the rad, but all of the Housing Authority units and the city has provided funding to the family projects to set up the workforce development, and offices at each site so that is about 7 of the 28 sites, of the receiving workforce, for them right now to help to prepare, residents for the construction work, and through the barrier removal. And provide the Financial Support for the fees, and the groups, and tours and that kind of thing and so that is under way right now at all seven of the family sites. I am thinking also, long term too, in terms of if they are going to have the on site Property Managers it would be great if the residents can receive that kind of, and if there is individuals who are interested, they can begin the process of training now, in order to be prepared when those Job Opportunities become available. We will be sure to have the developer get you that information. Great, thank you. What about the pest control . Is there any plans to do anything long term with the pest control and maintenance . I mean, that is the example the pitch plaza has a really horrible, rat problem. And not mice, rat problem. It is just really, pretty disgusting, and we have called the department of Public Health, and we have tried to figure out ways in order to deal with the fact that you know, clearly, rats are getting into peoples homes through underground, and somehow, through the trees in the walls and i mean that it is a real, horrible, horrible problem and so i would like to know what the plans are when we are talking about rehab these properties what are we doing to protect the residents from rats and mice and roaches from all of the pests that none of us want in our homes . Well, i mentioned all of the City Departments that have been contributing to this massive effort, i should have mentioned the department of environment. We have been working with folks there to get complimentary assessments, and the pest assessments at all of the rad sites before closing happens and we have also made sure that pest treatments, are part of every projects relocation plan, as you know, the residents are going to be moving in and out of their units during the construction period. And that provides an opportunity to really, get into the units, and make sure that they are pestfree, once they are reoccupied by the residents. And so, we have a lot of resources on board, there is also money in each projects budget to complete, the work that is recommended, by the department of environment folks, before the conversion. Okay, i would like to invite, todd crater from the tabernacle to talk about the specific plans because we have identified pits as one of the projects that has the most difficult pest issue as we have identified. Okay. Thanks. Supervisor, breed. And i am with the redeveloping of the pits as well as the west side courts. And to address, supervisor breeds question, about pest control, measures. At the current time, we are committing with the assessment of every single unit, by pest tec which is the citys pest control they separately engage, the test tec to move forward with actually identifying the extent and nature of the pest problems including the rodents and the bugs that are going to need an early sort of preconstruction phase the report will be generated and describing, you know, the specific measures, that will, be required to abait the problem. And so, that is, that is the early, lets call it the early abatement process. Prior to actual construction, once we close and get possession of the property, the contractor, will be conducting an abatement process that is intended to basically rid the units of the pe. S that are going to require that kind of, that kind of treatment prior to the and they recommend that the contractor have already agreed to implement to prevent the problem from it and that is fully much the full scope of the program. Thank you e one thing that they were told is services, and that would mean the service at thes site and could you tell me a lil bit about what the plan is for services . Yes, thank you, during the predevelopment period, and in other words, up, and up until, closing in october, the city is provided, predevelopment funds to each site to be able to provide, one on Site Services connector, and so the Services Connector is not case manager, and it is not a social worker, the Services Connector is intended to in the predevelopment period, especially, build the community and build the connections to the existing resources, that the city already is offering residents. It will be used to pay for the service correcter position. The way that it is sized is approximately, one person and one fte, per 75 units and so the larger units or the larger projects will have as many as three ftes, and there is one project in phase two that will have three ftes. And in addition, the Human Services agency, and in a separate contract, was providing, operations, support, to the service connecters. And so, giving them the funds that they need to do their work, whether it is funds for activities and funds for their computers, and funds for their printing and etc. And so, the projects themselves do their operating budgets are just paying this very narrow staffing across and the city is coming in, and supplimenting these additional funds. And i guess that i would like to probably at a later time, more detailed up date about what this would entail because that was one of the most important components in terms of this transition, is making sure that residents have someone who is really an advocate. Of making sure that they are not just getting in an office, but that they are doing, more to meet the residents develop, the trust with the and the opportunity for the reenrolling in school and to getting connected to, like you said, all of the Great Services that exist all over the city and also, and the individuals not feeling comfortable in going to other neighborhoods or other parts of the city. And so, what kind of Mental Health or other kinds of persons we could bring in to the developments directly to help, this is a different component and moving these items forward, i want to make sure that many of the promises that were made to the residents, when we brought the rad program to their attention, that those promises are kept. And that, their expectations of what this program would bring, are not only met, but they are exceeded. And because i, and i do think that, you know, this is, this is, you know, a, a, tool, and i am really, happy that we were able to move through this cycle of implementing this program, so swiftly and i know that we did not have much of a choice with the feds, but i do appreciate the Mayors Office of housing really, rolling up its sleeves and making housing preservation, a priority as it relates to the residents who live in the Public Housing developments and mostly the housing in the city and i mean that this is going to make a difference for so many people. And i am just hoping that, you know, we will see, some significant changes as a result of this program, so thank you. Thank you, supervisor, and i want to share a little bit more detail on the services. As you mentioned, you know, the services folks that are in there, now. Are spending a lot of time, helping residents with the transition, to rad. And the goal of rad is not to impact residents, except for in the positive ways by improving their housing and providing the services but there are certainly administrative tasks that the residents have to complete and so the services folks are helping the residents work through that and understand it. And get them to the table, to complete, these tasks. And one piece of great news, is that we negotiated with the bank of america and as i mentioned the invester and the lender on the portfolio and they are giving another 2. 3 Million Dollars in service fupds to the projects which will be available during the construction period only. It is kind of like a one time, funds, and the developers are going to be able to do that and use those funds, during the relocation, period and the construction period to build community, and assist residents, as they are moving in and out to the relocation and really, have the flexibility to identify where the needs are, in the resident population. And provide, services on and beyond what we had originally budgeted for. If there is any other information that you can provide me for like the bank of america and things that they have done to give back to the city. Because i am not really familiar with anything that they have done to be you know a Good Community partner in San Francisco. And so, that would be really helpful information, as well. Thank you. Thank you. Okay. Colleagues, know other comments or questions, we will move on to Public Comment, on items 4 through 17. Anybody wish to comment. inaudible basic properties and we have a location inaudible Housing Authority. Require, inaudible painting the exteriors and also, replacement of the new carpet and pest control inaudible to be put to full consideration for the new residents for the Affordable Housing. Good communication are required for the property manager and the future residents, in the units for the total security and smooth transition, inaudible 100 percent inaudible services happiness. inaudible thank you. Okay, anybody else wish to comment on item four through 17 . Seeing none, Public Comment is closed. I want to thank everyone for their presentation and discuss here, and we will send the motion to send these items forward. So moved. Motioned by breed and seconded by tang and, take that without objection. And clerk, could you call, 18 please . Number 18, resolution, declaring the intent of the city to reimburse the concern expenditures authorizing the director of the Mayors Office of housing and community, development, to submit an application to the california, limit, allegation, committee to permit the issuance of residential revenue bonds, nottoexceed, 16 million for the 1035, folsom street and 21 Columbia Square street. I am with the Mayors Office and i am here to present the resolution, authorizing an application for the bond financing to fund rehabilitation work at columbia, and this will be the financing that will not require the city to place any of the funds and reparticipatement of the bonds, it is a 50 unit, rental complex, serving low income families at 1035 folsom street. And the project sponsor is mersy housing california and the tax credit invester and bond purchaser will be identified over the next few months, following a request for the proposal process. And the rehab process, at Columbia Park will include, the replacement of the windows and the installation of the systems in all of the units and the repair and the replacement of the fixtures and the grades to the light and hot water systems. Following the rehab, the project will serve low income household and 29 of the units will be reserved for the households earning approximately, 70,320 for a family of four. And 20 units will be reserved for households earning no more than 50 percent and that is about, 58,600 for a family of four currently. And in terms of the time line, we plan to submit, an application to the California Committee in three weeks and if it awarded an, we will ask for at proval and it will occur in february or march of 2016, with the construction there after and it is expected to be completed by the end of 2016. Here it is and the representative of mercy housing california and together on behalf of mercy and the Mayors Office of housing and the Community Development we would like to thank you for your consideration today and we look forward to your support for this project and with like that would like to conclude the staff report and answer any questions that you may have. Colleagues any questions . Okay, anything none we will open to the Public Comment and anybody wish to comment on item 18 . Seeing none, Public Comment is closed. Colleagues, could i have a motion to send this one item forward . Motion by supervisor, breed and seconded by tang and take it without objection any other business in front of us. Mr. Chair, we would like to take a motion. Thank you. And yeah, i would like to make a motion to excuse supervisor mar from todays meeting. Motion by breed and take that witht objection. Okay, thank you, for that, and do we have any other business in front of us. No mr. Chair. Thanks, we are adjourned. We all know a major earthquake will eventually hit San Francisco are reproerl presented San Francisco is making sure we are with the Public Safety buildings. This consists of 4 consultants the Police Headquarters with the from 850 with a brand new fire station number 4 to serve mission bay swimming pools at office of Economic Workforce Development in the fire station thirty. Is the the hall of justice on bryant the new home for 2 hundred and 50 uniform and voiven compresses we all it was opened in 19 so sociothat is a 50year improvement as far as structure and Work Environment had that will be a great place to work. When construction began in 2011 this was with an clear goal to make sure with the big one heights the resident will will have a function Police Department those are the highly seismic standards it is up to operate up to 96 hours from the Police Department perspective that building is selfsufficient for a main made arrest in all disastrous zake ever after we will run our operational from here no matter what happens this building and the people that serve the businesses will continue to function building is designed to meet lead goal certification and also to art installations on the campus that was designed and constructed to better sense of ability so for example, were using solar water heaters were also urging gray water for reuse inform flush water and rainwater for the cooling and irrigation locked on third street and mission rock is it serves the motorbike neighborhood and motorbike i moiks is a growing neighborhood and the intent of the bond to have please and fire serves to serve the community. Hemming helping to keep the building and the stay safe was the not the only opportunity it creates many jobs with 82 bleb businesses overall san franciscans contributed one hundred and 87 thousand hours to help to complete the project it shows the city of San Francisco the elected officials and Police Officers and more importantly the voters that paid for the building this is what we can do with when we wrorpt this is a beacon when we need to build new extra we can trust them with the money and the plan they did a good job the San Francisco public is a reminder of the importance of being presented and will continue to serve the residents for decades to come good afternoon, i would like to call to order the regular meeting of the San Francisco Public Utilities commission. Todays date is tuesday september 22, 2015. Roll call, please. Commissioner caen. Here. Vicepresident vaoet tore, chasing ner courtney, commissioner kwon, mission xher moran, and we have a quorum. Er before you head the minutes of september 9, 2015, any addition or corrections . Seeing none, is there any Public Comment on the minutes of september 9th . May i have a motion . So moved. Second. All those in favor . Aye. Opposed . The motion carries. Item 4, at this point, we ask for Public Comment and i do have a speaker card from mr. Decosta. Commissioners, some years ago, when we had as our chair, Ambassador Richard s cl aw, a man of great wisdom who understood really what needs to be done in our city and county of San Francisco, so i took upon myself at that time to invite the first people into these chambers to talk to some of you all. Maybe one of yall will remember that occasion. After [inaudible] and he was very happy to meet them. About a little over 250 years ago when jefferson sent lewis and clark here to west coast, we have records for those who can read and for those who have access to the records as to how pristine california was , with this recent drought and with Empirical Data as to the particulates and the increase in the depletion of our ozone level, we need to represent the people, and we need to conserve our resources, so we know and i hope we know that for thousands of years, the regional people who lived here who called this place total island preserved the resources. And then in the last 250 years, we created this concrete jungle and we have to live with it. And this commission, the San Francisco Public Utilities commission is duty bound to preserve our resources and you are uniquely duty bound because you have jurisdiction over large areas where the city of county of San Francisco because at one time, we not only had jurisdiction over San Francisco but as far as palo alto, and i know some of you commissioners who in their day and age know about this and i hope the other commissioners are given an orientation about it, so in short, we are duty bound to look after our resources. Thank you very much. Thank you. Any other speakers today . Seeing none, ill move to item 5, communications. Any comments . Yes . Just one comment, i notice in the waste water Enterprise Capital Program Quarterly report that the trouble bottom line analysis was included as promised and i appreciate that, thats helpful and i think that adds to our transparency as far as what our decisionmaking process is, so thank you. Yes, vicepresident . I have a question also on the waste water report and i mean, just to get a better understanding at some point and maybe its not now an update on where we are financially because i know we have our big cross town tunnel no, whats it called . Central bay side. Central bay side tunnel, i want to get a better understanding of where that is in the queue and what that conversation lies because i know nas a big financial component and also in the overview of i dont know where we are with our entire budget, Green Infrastructure piece of it and that project are the ones im most interested in and a high level conversation as well as like Digging Deeper on some of those issues. So, we can come back and give you an overview, but just to point out, the 2. 7 billion dollars which is phase i, the central bay side construction isnt part of that, and so we are planning to come back once we determine what we would recommend as the size of the tunnel and what type of Green Infrastructures could accompany the tunnel, so were going to come up with a combination of green and gray for that process, but were looking at the whole program and see where we are and come back and let you know where we are from a budget and a skaoejbacker schedule standpoint. Bh will that be . Bh will that be . Sometime in october well get an idea of when well be ready to have all the information so we can present to the commission. That would be great because i know theres been some number that is have been put out there over the year, 6 billion, 7 billion and sort of we have our 2. 7 thats been approved but just to start honing in on what were talking about and kind of whats been spent, what we have left in the pipeline, what the priorities are that are emerging, all of that. Yes, and i know theres been a lot of folks talking about where we are in as far as the budget and comparing other projects and other cities of what the cost would be, so were going to come back and tell you where we are and talk about other similar projects that happen in the nation and so were going to put that in perspective for you when we come back in october. Thank you. On the same topic, and perhaps todays not the day, maybe at the next meeting, i would like comments on the projects that are running late as noted in the report. And i also had another question on i wanted to ask, how does a bile retention planters work . Today were [inaudible] of the sources improvement pra p program, today we have built it along caesar sma vez and we monitored probably out five out of the 15 that were built and they performed well above what we thought in terms of promising and i can get you the exact numbers. We had the San Francisco Estuary Institute assist us with the monitoring and they wrote up a report for us, so we do have that data and i can get that in the correspondence. Typically in a storm event, the water goes into the bile swell and abing hull keeps it oup of the sewer system, the peak, so the Treatment Plant has the ability to treat, you know, the storm event, and so and hopefully it will detain it and then it will seep into the ground, and so that is sort of the way that theyre built, so we measure performance and those events, its performing well, but one of the things that we are looking into is that the storm events are varying, theyre more intense for a shorter period of time and the other thing is it hasnt been a longbacker lot of rain events to measure the performance on a long going effort, so these are some of the channeling but well definitely provide that as part of the update of what you get in october. Okay, thank you. Lets see, other Commission Business . Next report is the general manager. Well, the first update i would like to give is our cca update, barbara hill and as part of that, were going to have an outreach update on cca a and thats going to be given by tyrone ju. Good afternoon f, commissioner, barbara hale, assistant manager for power. Im here to present the beginning of the story we have to tell today. Were going to cover a number of topics. And i think the most exciting part will be what thai presents at the end, the outreach and enrollment portion of our presentation. The and to give some context for that, i just want to do a couple of reminders on the supervisor approval of the contracts that provide supply. Its also assumed that we would perform a Risk Assessment that was largely at the urging of commissioner moran, and today i have to report that looking at the very good supply options that weve been presented with which ill dig into a little bit deeper as this presentation goes on, its clear to us that some of our supply options that are most Cost Effective are going to involve us making commitments over the 10 Million Dollar threshold, so it will require a board of supervisor approval. So, as ive been presenting the schedule, that assumption i think we need to set aside because i think we will need to go to the board of board supervisors of at least some of the supply contracts that were likely to present to you. In addition, that Risk Assessment and the rigor were trying to apply around that Risk Assessment has really grown from being a Risk Assessment into a full Business Plan for the Community Choice aggregation program, so we are preparing a clean power assessed Business Plan that will integrate with the Business Plan that weve already presented to you. Were going to in order to meet the rigor that i think youre looking for and in light of the fact that we now are we now have bond holders and indenture to stay true to, were going to have that Business Plan third party reviewed, so thats going to take a little bit more time than we had initially pants panted. We had at the last Commission Meeting reported we thought we would bring that Business Plan to you on october 13th, now were going to work with the general manager and we advise our schedule and come back to you next week with a new schedule. I want to emphasize that what were talking about here is a matter of weeks, not months, and i want to emphasize that were committed to Swift Movement but also to Smart Movement in implementing our cleanpowersf program, so we think on balance, its smart for us to come back to you with a revised schedule. We also recently received more information about pg es planned rates for 2016. They are forecasting rate changes that will affect our Business Analysis and we need to factor that in as well. So, those are some things that have changed since we put together the original schedule and so well be coming back to you with a new schedule, i expect the Business Analysis, the approval of contracts, the setting of rates, those were all activities that we had scheduled for october and early november to shift a matter of weeks. Yes, commissioner . Can i ask you a question about so, the Business Analysis, thats just for cca, thats not and the Business Plan overall that weve been talking about, i imagine that might impact that as well, and will we be able to see that at the same time . Yes, what were proposing is a Business Case presentation for the xlaoen power assessed program that factors in and acknowledges some of the same information that weve presented to you for our overall Business Plan for the power enterprise, with cleanpowersf having been presented in that context as one of the program options, right, and now were going to dig algt deeper in this Business Plan into what the financial requirements and the risk profile is of that Program Within power enterprise. Because i think theyre connected. Absolutely. One of the three goals, their goal of job creation which is what were really driving towards, we also have some other issues at the puc and the business, you know, in the Entity Program and hatch were hoping cca can help with, i dont know where we are with our overall Business Plan but it would be great to at the same time or one after the other have an understanding of how they are connected. Well, they are connected in a way that well, first of all, there are two separate lines of business and thats the way were looking at it when we, you know, got was able to do the bonding for the Capital Projects as a separate line of business, so the connection that we made was that we would sell hetchy power possible sales to cca, but we want to make sure that its affordable, so with we go after these contract and is were seeing prices that are really affordable, we want to take a look at, well, how much would we be able to sell hetchy power for versus going out in the market and get renewables because we want the head room as large as possible so we can do Rate Stabilization because i think the number one thing is we got to make sure we keep our customers and not just go out there and do a buildout, we got to make sure we have investments to keep our customers and then we want to do buildout, so we really got to kind of know and thats why were taking time to see, one, the rates and get the best rate possible so that we can get the red room, the other thing that we have to look at is pg e is now decreased their generation cost to their customers so of course we said were going the match that, so therefore, we have to reduce the cost of our generation which will eat up into our head room as well, and so thats why were taking a pause because this will impact the Business Plan and the Business Plan talks about buildout, it talks about what to mix that we use from hetchy versus these different options that well go over later. It will talk about the risk of financing, you know, what type of rigor we need to do so that we can minimize the risk of financing and getting a bond rating, so all this will be included in the Business Plan. The cca Business Plan. The cca Business Plan, theyre tied together because the power enterprise is tied because its looking as one of the options of selling the power to cca. Right. Its not cca. I understand, and im just wondering when that other larger Business Plan of some of these hetchy issues that weve been struggling with and the fiscal cliff and all of that, when were going to get that because it seems this is a component of that, that we want to be looking at. Yes, and i would offer, commissioner, the two workshops we did on the Business Plan for power enterprise which acknowledged the cleanpowersf program but didnt dive into the financial obligations there tremendously, this next Business Plan will, that presentation, those two presentations were explained our strategies for moving forward and part of the implementation, and your next opportunity to influence how we go about making those changes within our organization is in our budget. So, the budget workshops will be the next opportunity for you to see, you know, so we had a Business Plan, how are we moving forward with that, how is that integrating and the point i made about needing to make sure that the cleanpowersf program and as we implement it is staying true to our indenture statements is also part of that because we need to structure we need to figure out clearly how we want to best structure cleanpowersf within our budget, so youll see implementation opportunities and opportunities to influence are Going Forward steps there the budget workshops well be holding as well. Okay, i just dont want to be stuck making a budget decision without plenty of advance review of those, it sounds like cca, its not that far off, but also our general Business Plan as well and whether theyre connected or separate feels like theres implications. Yes, and were taking the two workshops that we presented our Business Plan on, were turning that into a narrative document, were trying to make sure its not so long that no one reads it, but well bring that to you once weve had a chance to review it in final form with the general manager, so youll see that again soon as well. The presentation we made was pretty thorough, so if more information is needed, then maybe we should talk about it because what we plan on doing is what we covered is pretty much explained in the Business Plan. The Business Plan has a lot of levers that were evaluating, i think one of the things that we are making some progress is on the Interconnection Agreement with pg e, so i mean, depending on what that outcome, it could trigger a whole bunch of other decisions that we have to make, so you know, so we will hopefully get a document that is thorough enough but not just overwhelming, so that people make sure that people are able to read it and digest it. That would be great, something thats current with the cca, with the ia, with all the things that have happened. Thank you. Sure. And so general manager kelly was talking about one of the rel leg laory issues i want to report on, pg es forecasted rate for 2016, they filed at the Public Utilities california commission, what they project to be their rates for 2016, cleanpowersf has said we will have rates comparable for both our basic and our premium products, rates comparable to what pg e would otherwise be charging customers, its affordable, Competitive Program so, were tracking very much the changes that pg e makes to their rates because thats our competitive benchmark, thats a sealing for the rates that well be charging our customers. Pg e has made some changes that proposed to make some changes that unmet will put downward pressure on the rates we can charge. Were estimating it to be about a 10 rate decrease from what we had talked about as our not to exceed rate, so that as the general manager described really squeezes our margins, make us have to sharpen our pencils a little sharper and do some more of the Financial Analysis with that information. So, thats moving forward at the california puc, also at the california puc are pg es implementation filings for their green tariff option f, this is the program that will allow pg e to offer a 100 renewable product to their residential and commercial customers, thats the product that would compete with cleanpowersfs premium product, so in early september, the california puc issued a resolution in draft form for comment as to saying what they thought about what pg e had asked for, they largely agreed with that but they did put some conditions, some modifications on it. On that item on october 1, the resolution adopts many of the changes the city had requested in our our advocacy filings in the puc, in particular, we were looking for more transparency and more abilities for a customer to look at our program and what were offering and look at pg es program and what theyre and be able to compare them readily, so we were happy to see that puc staff is recommending modifications that would require pg e to include in their bill a separate line for the power the pcia, the power cost indifference adjust which is going to be disclose hated cleanpowersf customers receive, really as i say, to facilitate that side by side comparison, so the vote is scheduled for october 1 and pg e is saying that theyre intending to offer that program in early 2016, so thats what they had said before, they havent gotten more specific, about the same timeframe as us. I just want to point out that what were seeing is that the generation rate they would like to reduce it, at the same time, they want to increase the exiting fee, and we talked about for us to be competitive, our rates would be lower than the exit fee and their generation, so i think its making it more challenging for ccas because theyre charging the higher exit fee and thats how theyre kind of recovering their money and then the generation, theyre trying to be more competitive by lowering that, thats something that were looking at, you know, because its a strategy i think that theyre trying to deploy on cca providers. Were there any rates given . The ak xhul rates were included, yes. And what were they . I believe its the 2 cent premium for green tariff, is it a 2 cent premium, 1. 5 to 3. 5 cents for their green tariff option premium over their existing rates. So, maybe we still feel comfortable moving forward that we can meet, but it will reduce the head room, so were going to look at what we can do with the reduced head room and kind of look at that, so its not the end of the world. I think we still can make a really good program, we just need to kind of look at it and see where we are and see what we can do. Just trying to be thou thoughtful about it, its a big program. Im ready to move on to legislative update if folks are ready to go there. So, one of the major pieces of legislation that our sacramento legislators adopted this year was sb350. Its sort of the next step in californias Climate Change activities. One of the major components of sb350 is that it will increase the renewable portfolio standard target from 33 of the generation provided to retail customers by 2020 will be renewable, up to 50 by 2030, so we have a new target both in date and volume of renewable content that needs to be provided by load serving entities like our cleanpowersf program. It also doubles the existing Energy Efficiency requirements from existing buildings. Well need to meet that 50 for cleanpowersf by 2030. We also worked with other clean power sorry, Community Choice aggregation programs in california to protect against some of the modification that is were proposed in sb350, im happy to report that we were successful in avoiding some additional regulatory layers that the legislature were considering imposing on ccas that would have taken away some of our Decision Making autonomy and we avoided some efforts to increase our exposure to exit fees and other charges that were being advocated by the investor owned utilities, so we had some successes there, we have some new obligations as well and that legislation is awaiting governor browns signature at this time. So, now im going the move on to our supply efforts. And just as a reminder, the program is providing the cleanpowersf prow power is providing two Program Offerings, our default Product Offering at 335 bundled renewables, and our premium product, the 100 renewable and Greenhouse Gas free supply option, when we went out into the marketplace, thats the two offerings were procuring supply for, when we went out into the marketplace, we requested bids in three different under three different options, our firmed and shaped energy, our Renewable Energy and our Resource Adequacy capacity, Resource Adequacy capacity is a requirement for all load serving entities so the iso and the california puc imposed that requirement on folks like us, we face it for our existing Program Offerings from our hetch hetchy power customers and we face it for cleanpowersf, im going to focus on bids we received for option 1 and option 2 mostly. So, on bid option 1, we received 6 bids, im very happy to report were seeing some very attractive pricing, the other terms are still under evaluation, we have short listed three firms and published that on our website, and we had oral interviews of those three firms just yesterday, so the Evaluation Team is continuing to perform their work and we expect those three firms to continue to work with us on putting together their portfolios for very Competitive Priced Renewable Power. Under bid option 2, we received 52 bids, so thats good and thats a high volume and thats great, lots of interest to work with us. Its a lot of work to evaluate all of those distinct bids with their distinct generation profiles, different start dates, how to integrate those, how to value those and integrate them into a portfolio is part of the staff work thats under way at this time, so overall message there on both bid option 1 and 2 responses is were happy with the pricing and Product Offerings were seeing, so a strong package of options for us that were evaluating now, and then we received 6 bids also very competitively priced for the Resource Adequacy capacity that we need to procure. And as we look at those bids, what were evaluating them for is typical thing, as you would expect, are the bidders qualified and experienced to perform as they say they will, whats the total cost and value of what theyre offering to us, how viable are the individual products, so if some of the renewable options that came in under option 2 is forthe city to commit to certain projects that are under various degrees of development, some are already producing electricity, some are going through the permitting process as we speak, so were looking for project those shorts of projects and looking at the overall location and when you put them all together, how do they as a package provide for the bids needs of the program, is it the right shape overall of generation to match the shape of our consumption, is it the right price, is it the right business relationship to strike, those are the sortser of issues that we are evaluating on the supply effort at the staff level today. And some of those issues of course factor into our Business Analysis as well, and our Risk Assessment analysis as well. So, im getting ready to turn the presentation over to tyrone to talk about outreach and enrollment, so if theres any other questions for me, im happy to take them at this time. Thank you. Thank you very much. Take it away, ty. You can start talking, ill do this. If i can get the green i thought i might set the mood a little before i begin the presentation by taking you on a Little Journey of what were trying to do with our outreach and enrollment. playing video . Power, its around us in the sun, the wind, the waves, its power that can light our homes and Energy Businesses while protecting our natural resource, cleanpowersf will provide clean Renewable Power to all san franciscans, how will it work . Right now, your powers generated by pg e from [inaudible] power comes to you over pg e lines, with cleanpowersf, your energy will be generated by cleaner, more renewable sources, it will come to your home or business over the same pg e maintained lines. Cleanpowersf, same service, cleaner energy. So, that concludes my presentation, so thanks. [laughter]. You know, this is really excite hating were at this point where im able to present what our outreach and enrollment strategy is going to be for cleanpowersf. It wasnt easy getting here, we had a lot of conversation including the general manager, all the way down, we talk today our subcommittee, our engaged stake hold etcher, our friends at lafco, everyone has an idea of how do you do outreach and best practices for enrollment. What we have today and what im going to present to you is an exciting start and its an exciting beginning of how we will begin to grow excitement around this Great Program so, with that, let me get started. I wanted to remind everyone that cleanpowersf is for everyone, its for you, its for you, its for everyone who is a san franciscan in this room and thats what we always have to constantly remind ourself, anyone who wants to be part of cleanpowersf, wherever you are in the city can be part of cleanpowersf, you can be part of that in terms of early enrollment, when you f youre ready to be a customer, you can sign up even if we havent reached your area or you can sit back and relax and wait until automatic enrollment comes to your area. Were going to do this by reminding people that they are now going to have a choice, a choice they havent had in the past, a choice they are going to have through pg e but a choice of a better product and a Better Service through our program, through cleanpowersf, and the first one as barbara mentioned our 100 Renewable Energy product which were calling supergreen. So, for premium costs, you get a premium product. We also have our green product, which is going to be the product that we roll out in the automatic enrollment areas but can be early enrolled with anyone who wants to get started with the program, the important thing that separates this program and addresses a lot of the issues that were raised before related to cleanpowersf, we are going to meet or be beat our current pg e rates and have cleaner energy, thats a powerful statement, even if you didnt read the mailer, at the end of today, you will be receiving greener and cleaner energy than you were previous to being enrolled in cleanpowersf, and we have the other opt out, but im not going to focus on that, no ones going to be doing that as we move forward. One of the things and strategies we decided upon was that we wanted to do things differently to maximize participation in this premium product, this superGreen Program, a lot of similar programs like marin, they started the Program Launch in term of enrollment and asked customers to optup, they started, were going to automatically enroll your area and reach out to you again and opt in for a 100 Renewable Energy program, were going to do this a little different, we want to encourage people from the getgo to sign up for the supergreen product, so before we even go to your area for automatic enrollment, were going to be actively going out and canvassing those areas and say, sign up for a 100 Renewable Energy product and we think its going to have market success as we go forward in terms of our adoption rate. And thats what were trying to do through this outreach program. This curve represents kind of the standard kind of Product Launch curve as almost any product you can think of, you can put iphone on top of that and it would be the same product curve sh where in the beginning, youre trying to generate excitement and create a buzz around your program or product, so if you put the iphone at the very beginning, the first people who got the iphone was the apple fanatics, it was still a new technology, and they said, im going to get an iphone, im not sure it will be a great product, i love apple, i believe in that brand and im going to get an iphone, and slowly other people started hearing about the iphone and all the great experiences they were having that the early adopters were having and you start to generate this momentum building up to this curve to successful launches of the iphone 2 to the iphone 3 and to the 4 to where iphone is arguably the most widely adopted, widely recognized and widely held phone in the entire world, and they have managed to maintain the top of that excitement curve through this time, thats what were trying to do and replicate through our cleanpowersf program, so were starting here with citywide early enrollment, it begins today, this conferencing here, this conversation were going to have with lafco coming on friday, going to our automatic phase of enrollment, building into next year when we start to organize our ground troop, our active stake homed, our supervisors, our commissioners, our lacer afco member and is say you need to reach out to yur friends and your networks to sign up with cleanpowersf, move tog the first phase of automatic enrollment on march 16, or whatever that date is, and this is a critical phase for us where we established this Foundation Early on, we have people who are enroll ined the people either through automatic enrollment or through that early adoption and now we need to kind of build upon that wave and we have this tight timeframe to do this and this is where were going to punch in and were going to say, okay, lets broaden this reach even further through a citywide outreach and Advertising Campaign which would augment those grass roots effort that are starting and begin to climb that curve of excitement, leading into our next phase and service cut over later in fall of 2016. So, for our phase i city wide enrollment and automatic enrollment, bargaining citywide, you are in the marina, richmond district, anywhere around the city, you want to be enrolled in cleanpowersf, were going to prioritize your enrollment first, after thats done, the area weve chosen to select is the southeast part of the city for our first phase of enrollment. Why did we choose to start auto enrollment in the southeast . Two reasons. We have the potrero power plant and the Hunters Point power plant. When we look at this area, nrs only one neighborhood in the entire city that has had a history of polluting power plants in their backyard and that is here in the southeast part of the city, and so what better way to start this statement of this program and what this program is all about which is bringing clean, Affordable Energy to anyone regardless of socioeconomic status, regardless of what environmental justices you have faced, this is a prime ground for us to make a big, bold statement about why we choose and why people should choose cleanpowersf and why we feel strongly about clean energy here in San Francisco, and the puc was active in helping close these two power plants down but we need to take the next step forward in bringing clean energy to an entire community and neighborhood, but these two reasons arent the only reasons we decided to start with automatic enrollment here in the southeast, there were a couple of others and we heard from a lot of different people, a couple of people in particular, about concerns about why we would choose the southeast and we think those two reasons i mentioned earlier on top of these other ones still make a strong case and a strong argument for why this is a great place to start. One, in identifying the customer load mix, this area happened to have a Great Customer load mix, it also provided a concentrated geographical area for us to target our outreach, especially at a time during the super bowl when things are expensive, it gave us a way to leverage our limited resources and get the biggest bang for our buck in terms of making sure everyone in the area knows about our program and also it allows us to leverage all of these great relationship that is we have consistently building with our waste water Treatment Plant being out there, with our Community Benefits program, with all of our work with the Southeast Community facility, were leveraging all of those facilities to help us to carry us over the finish line for the launch. Some of the specific strategies that are mentioned here, we have some optout mailers which are you also want to mention affordability. Oh, yes, im sorry. Of course, as we said, leading with affordability, with that green product, we are offering, again, a Greener Product for the same or less than what you are currently getting from pg es basic service, so we are from day 1, even if no one went with our supergreen product, that entire community would be receiving Greener Energy from day 1 once we begin that cut over period and they wouldnt have to be paying more for it. Thank you for reminding me, harlan, so specifically the particular outreach study were going to use, we have direct mail and targeted outreach within that community, door to door canvassing, were going to be having our citywide enrollment strategies building into next year with those stakeholder engagements and organizing different contests around different neighborhoods for people to sign up for that supergreen product and its about creating that buzz, climbing that curve to build that excitement about cleanpowersf. For phase ii, again with that critical piece of being able to ramp up our excitement about a program, were moving over to the center of San Francisco, and, again, still doing our citywide enrollment, still doing all of the outreach, every neighborhood across the city, but now focusing on the automatic enrollment in that central part, the two reasons we then decided to move over for the second face over to the center of sf, where, one, we believe its going to be fertile ground, we believe were going the make a big splash with supergreen in this area, our poll shows theres high propensity of people within these geographical area that want to 100 want to have Renewable Energy, and this is better than what we were offering before, so we should see a pretty big uptake out there, and building upon that success of timing and phase i launch. This is a budget that we have for phase i and ii, its a significant amount of resources invested into the first two phases for ant 50 megawatts, so we think that is a prudent investment, that beginning is so important, you either start the program out strong and build upon that foundation to keep going to further heights or you putter out, and were not going to do that here with cleanpowersf and this is an outline of how much its going to cost just to do the outreach and enrollment with those first two phases. So, the last couple of slides are related to targets, metrics, what are we trying to shoot for through these first two phases, so weve done a lot of research, in addition to a lot of discussions and back and forth discussions internally, we looked at what other utilities have done around the nation, as well as what our neighboring ccas have done in marin and sonoma to look at what their Participation Rates are for their green Renewable Energy programs and the one thing i want today caveat, the percentages are there but all these programs have different pricing to them and different attributes but it gives you a snapshot into what it is, so we have portland, 14. 4 residential, going on down to the communities choice aggregation products in marin and sonoma where theyve had a 23 adoption of their premium product in marin, and a 0. 5 adoption within sonoma, and so i just want to also caveat with sonoma, they havent do begun that second phase of that outreach, they wanted to automatically enroll everyone in and then get everyone to optup, that could be one driver for why they havent hit those high marks yet, but it gives us some idea what to shoot for with our own goal and is then what are our friends in the utility owned utilities doing, and what do they propose and their Participation Rate, we have Southern California edison program, 0. 5 , these are numbers they submitted to the puc about what their Participation Rate would be, San Diego Gas and lektd rick, less than 0. 5 sx, we have pg es own program, theyre ants paying 0. 22 of people willing to opt in to their Premium Green product. What do we want to set for our goal . We always like stretch goals because it gives us something to strive for websinger always say we can do better and i believe we can do better in San Francisco in terms of setting a target thats both realistic but also gives us a stretch goal for what we want to accomplish, and so our goal that weve out lao iped here for the end of phase ii is an opt out rate of less than 20 and supergreen to make up 5 of all of the enrolled accounts, and we believe these are reasonable goals to start off with, it doesnt mean were going the shoot for 5 or that 30 , were going to be satisfied at 20 opt out, were going to try to surpass and exceed all of these goals that we set for ourselves and with that, that will pretty much conclude my presentation, hopefully you are excited. I will leave you one lasting image, you can go back to the slide, thats me. Thats going to be everyone because we want every Single Person in this room to be a superhero, just champion supergreen at home, no matter what you do at work, you can be a supergreen superhero at home, and with that, ill take any questions. Im sure i think first of all in that graphic of you, you should be drinking a supergreen drink rather than a brown drink . The only direction i gave to the graphics team, i said, can you do a cartoon illustration of me for this, i want to create a superhero montage and he put the mug there, anyone who sees me in the building knows that i walk around with a brown star bucks coffee mug wherever i go, thats what they put in my hand. You need a green mug. It might be a rose [inaudible] for you. Thank you, tyrone, i appreciate that. So, the supergreen signup, i just had a thought, is there a strategy around kind of seeing if theres any high profile people, whether theyre elected or whether theyre celebrities who live in San Francisco, whoever those are, chris isaac . Danny glover, does he still live here . I think he does. But they might be interested in signing up ahead of time and could then sort of help advertise because i think we really want to pull out all the stops and absolutely. The mayor. Thats just an illustration of me, like i said, theres an illustration for every single one of you coming as well as the mayor and every one of our supervisor and is the idea for the animation, the superhero idea came from our supervisor. Oh, great. And then i had a question, just one more question too, and thank you by the way for the presentation, i think its great, its very exciting that were at this point and i love all the graphics and the visuals because i think its going the help. Maybe barb said this and she buried the lead, the march, 2016 launch of the program, is that what i heard . Because i just would wabt want to make sure with whatever p fw, and e is doing with their green tariff program, whether they launch or not rkts i dont know whether or not thats an issue from a communications perspective, i would think that maybe from an uptake, that would be an issue and if indeed it might be, i would just urge that we try and accelerate again that launch date so that we dont, you know, so that we can get ahead of that. Were moving as soon as possible, but, you know, we have to make sure that we get a good plan because my whole thing is you plan, you work, you wouldve, you plan, if you have a faulty plan, youre working through youre working a faulty plan, so we want to make sure we plan it right, thats why were taking a little more time to make sure everything is done correctly. We are trying to move as quickly as possible, and so like we say, were talking about weeks, not months to get our act together. I dont know when pg e is slated to move forward on theirs, but were going to start advertising or at least we start doing the launch, but it starts before then, the opt out notices need to be finalized by november to make sure it hits the mail. Irrelevants not going to have an overall effect of the success of what we think we can be with phase i as long as that outreach happens before pg es projected, you know were already beginning to engage with all of the folks to the southeast, to help enroll people and get the word out, so those conversations have begun a few weeks ago. Great, thank you. First, your mug might be okay because isnt brown the new green . But i want to applaud you, this is a great presentation. I think the symbolism of starting in the bayview air xwra and were in district 10 i think is important and i hope the residents of that neighborhood also feel that way equally. I think the deadline of being moved back, i understand it makes sense, i know that all eyes are on us to make sure that it goes forward, but i like the message and the plan, i think it makes a lot of sense and the last thing i will say since the cubs are headed towards the playoffs, this is the year it will happen. We will not illustrate a cub uniform on you. I do have a celebrity i can present. A couple of questions. On the phase i, when you do the first citywide preenrollment, is that going to be for residential and commercial at the same time . Yes, its basically for anyone residential or commercial that wants to sign up for the program. Okay. When you then get into the official rollout with the optout provisions and all that, how does that work . When you have preenrolled, do we still have to send out optout notices to those same customers . Yes, you do need to send out optout notices, something thats been helpful in lancaster, theyve had a waiver box so that instead of receiving the two required prior optout notices, you can just get the two optout notices from when Service Starts so i thinks a strategy were going to use for those early enrollees. It can be confusing if you get optout stuff before you enrolled and what does this mean and why and we need to manage that as best we can. And is the product were selling basically focused on green content and price, and im thinking in addition to that, other Service Offerings such as go solar options, so far, we havent tied those to, you know, cca customers, but we could. And weve talked about that somewhat. You know, what is is current status of that, whats our thinking on it . So, you know, i think the number one thing that were looking at with the head room is to look at a go Solar Program thats actually funded by the cca head room because it needs to come from that, also with the go solar, well make that available and as we go through the city and automatically enroll folks, the good thing about the go solar, what weve done in the past, hopefully theyll become our customer so weve made an investment, we still have the credits from those installations, so it opens up a new way of the concern that we have invested in pg e customers, now they become our customers, so it kind of works out. And i guess i would encourage us to make that connection as explicit as early as we can and because i expect that pg e is not going to be silent during this period and that theyre going to raise issues that we havent thought about, trying to make it look like less than it is. The more we can have bundled into that, by virtue of being our cca customer, you have access to a go Solar Program which you would not have otherwise, that would be a nice bundling to have for it. And thats another thing thats not illustrated here is the Customer Care part of it after youre enroll ed, we want to make sure youre happy with our services, we want to make sure youre aware of all the services we offer to you as a customer of cleanpowersf. Do we have a listing of the power Customer Care programs that we have and we can look at it and say, if you sign up for cca, are you getting the same or better . Ive spent some time roaming around the pg e website, not so much ton residential but on the commercial side, they have all kinds of programs. And i think it would be important to be able to say that for some of those, youre probably still eligible for those programs, in those cases where youre not, either we do or dont provide them, i think that would be an important part of our rollout as well. We definitely do not. Which also got me thinking about their website, its a pretty slick website and it has features in there like you can go in and they will compare for you your monthly bill under different rate plans. I dont expect that they will include cca as one of those, but it does raise the issue of what access we have to the Customer Data and what we can do on our own website that parallels that or provides the same kind of information to customer service. We should be able to compare our rates to their rates. Yeah, and that will be one of the things that we build out as we finalize what the rate is going to be, that kind of comparison. And it should be on an account by account basis, given the amount of power that you use, given the pattern you use it in, if you have their three available rates, wlas the monthly estimated bill, if you have our supergreen, what are the estimated monthly bills on that, but thats something that i dont know if it makes sense to integrate or if its possible to integrate with their website, but we need to have something comparable there. So, that people get the same level of service, it also goes with customer notices and news letters, they have news letters that come out talking about Water Conservation, makes them look pretty socially responsible. We need to have programs that do the same thing or a link that if youre part of the puc family, heres the various things that you get, i think theres a lot of opportunities there. I think the biggest challenge is that as we talked about is each one of these accounts are still a pg e customer, they get the bill from pg e and we have a little line on their bill, so i dont know if they will be too receptive of putting our literature in their bill about that and maybe we can ask about it, but the other thing is we do reach all the folks on our water and sewer bill, so we can look at ways of doing that, that way, and we need to invest, you know, as you may know, i have solar on my roof and i have to look at my solar provider to see how the performance is and then i have to go to the pg e bill to see how much im getting back and forth because theyre not tied together, you know, its just the nature that its not from all system and theyre not integrated so it will be something that you would look another your pg e in the generation and we would have to provide information on our website or through our mailers on our waste water and water bill. And we should be able to get access to the billing data on our cca customers. Yes. Well have access to it. Is it timely . Okay. So, i would just say, yes, well have access to that information, there has been some challenges that the other ccas that are already operating have had with getting access to information and being able to do things that you have been talking about with pg e, that doesnt mean well try, and there are some state law requirements that make it mandatory to do communicate bill comparisons between the utility the investor owned utility and the Community Choice aggregate tor, so we will absolutely try to work with them, but then there is also the state law requirement that theyll have to produce a bill comparison, an annual bill comparison or excuse me, an annual rate comparison for their customers. Together with us, youre supposed to mutually prepare that and send it. My last comment is an overall one, that the first challenge that we have is the rollout and how we accomplish that, but the Customer Care and marketing, i think its going to be an ongoing obligation that well have, as we bring the budget forward, thats something that if were not appropriately staffed to really have a marketing and Customer Care program which is fully competitive with pg e and fully serves the customer tos the same level they have grown to expect or better, we need to address that in the budget as well. Right, i totally agree, i think thats our number one as i mentioned before, once we are able to get a customer, we have to keep the customer because the last thing i want to did is move to building more resources and i look behind me and all the customers left and went to the other side. Its not going help the program. Right. And speaking about staff, i want to do my oscar moment, Charles Sheen as my Power Communications manager, amy st. Clare, [inaudible] mike tota is over there as well, the cca team, my graphic designer, roy, and my mom and dad. [laughter]. That concludes it. Come back, ty. It was a wonderful presentation and a lot of good ideas. I do have some questions and some comments generally. I am having a problem understanding how were going to define the difference between us and pg e. In that, if you have 100 green and they have 100 green and if the difference isnt by price, how are we going the win those people over . And i think it really is going to have to be that grass roots emphasis which is why were talking about that foundation and base and having that network talking to each other, thats the only way were going to be successful, were not going to out spend pg e in term of marketing but the one thing we have is we are a Public Agency invested in caring about the public activity, then investing back into public resources, thats a strong message to us, what were receiving back or this program is being reinvested back into the community as far as jobs and local buildout, those types of attributes, we can say more than pg e. Probably more that we can say it, thats why we want to lead with affordabilities because when we talk about the green product, we can say ours is greener or costs the same or cheaper, but if someone chooses to go 100 , they can go with their supergreen or pg es product, so what we would say is affordable, also we can say the renewables that we have selected are within city, our local projects will be more local than pg e, pg e would be more on their territory, thats what we can talk about the plans, this Business Plan that beear going to talk about, those are the two things, the good thing is that no matter if they go with our program is 100 or pg es 100 , i think the city is in a better place than the plan. Well, thats the real reason, thats why were doing this. Yes. The other remark i wanted to make was regarding southeast. I think its a great idea. The only stumbling block i see and then maybe because of your outreach, this wouldnt occur, but if it turns out that our automatic enrollment is the same price as pg es, i mean, the product is the same price, i think that a lot of people in southeast or any place for that matter would be pretty might halved that they were automatically put into a program and have to opt out themselves, i think tlas the only danger with whatever area we start with, thats going to be the first [inaudible] wherever it is, and we have to be careful with this because you dont want to get people ticked off before you even start growing the program. I think one of the most important thing, its not only the safe price, its greener, so its not i have a problem with that because if pg e says theirs is greener than ours, whos to judge . So, on their basic green product they have a basic service. They have to declare the renewables, they have to declare, so its not a mystery, and on ours, we have to declare ours, so ours will be greener than theirs and we will always make sure our basic product is going to be greener than theirs, but on the 100 , you know, we have to really look at being more affordable, so that is where the thats why were looking at what pg e is proposing to the california puc because thats going the change our strategy a little bit, but youre absolutely right, it would be nice to be greener and cheaper because if its cheaper and greener, whos going to argue unless you have great, strong feelings to being a pg e customer, so im totally with you that affordability, if we can do that, that would be great, and also it would be great in the southeast sector where people can be greener at a cheaper rate. It would just be fantastic. Yeah, i just dont want southeast to come back and say, theyre doing it again to us, were the guinea pigs and thanks a lot, we have to opt out now. Duly noted. Er so, we will obviously know more when we get the pricing done. Anyway, good job. Thank you. I do have some speakers. Eric brooks. God afternoon, commissioner, eric brooks, its good to see you, ive been out for a couple of meet x here on behalf of San Francisco clean power advocates, i first want to say that on the marketing thing that you just saw the presentation on, were very excited about this idea of looking at district 10, saying, look, this is the most environmentally impacted neighborhood in the city, its crucial that we put forward this program in a big way in that Community First z however, we have strong concerns about only doing in district 10 which is basically the plan right now is to solely do it in that district that gives pg e and other opponents the ability to specifically target the specific demographics that are in a specific area with a tax and they will roll out all kinds of clever attack, most of them will be false, so we think it makes a lot more sense to maybe do half of the automatic enrollments in d10 and half of them in the areas where polls show people are most excited about cleanpowersf and a Green Program so that you dont have all your eggs in one basket. As commissioner caen indicated, it could go bad on you under a pg e ad assault, so we want to make sure were being mindful about that and were pretty concerned about that. I was at a meeting yesterday where we heard this presentation about the marketing plan and it was not mentioned during that presentation that what were hearing today about delay ins the program and that raises some major red flags. Pg e after marin started up, pg e since the beginning has constantly been changing its rates and changing rate structures to play games with what marin can do competing with them on price. That is something that will be ongoing from the beginning that will never change. And as general manager kelly suggested, we can market 100 green to people by talking about the local benefits. The reason that we have and your staff wisely chose to have the light Green Program between 33 and 50 clean is that it gives us flexibility in case pg e does play games with the rates, so as we said at the very beginning of this process, when something similar was said by staff, we do not want you delaying, absolutely do not want you delaying your october approvals because of trying to make the perfect [inaudible] the good, by deciding, pg e might do x, y, and z, and thats really not acceptable, and i wanted to make that clear. Thank you. Thank you. Alright. Jason freed, executive officer for lafco on the marketing plan, i think st staff put together a good marketing plan, youve already complimented them enough to try to address commissioner caen, one of your concerns. [inaudible]. So, those would be some of the things i would encourage you to do with that. As far as the timeline goes, you know, i always will encourage you to move as quickly as you can. I will drum that broken record, we do need to be cautious, i think there needs to figure out where that balance and i like the compare you two, commissioner moran, youre the one who wants to make sure everything is taken care of, as a customer of the fcpur, and i think commissioner, youre willing to push it as fast as possible, if you Pay Attention to pg e when theyve networked, they seem to coincide with whatever youre working on creating this program, so the launch of their green tariff, i would not be shocked if it was around the same time whether we launched today or two years from now, that green tariff seems to be around the same time, i wouldnt worry as much about that, i think there are enough good way tos sell our product on the local side and on all the benefits we can provide tat local level. If we do get to that big scale buildout, were talking about stable pricing you, ear not seeing really that Competitive Price today but five, ten years down the road as those projects mature more, as natural gas and as pg e has to increase their own renewable load, their prices go up, you would have locked in those buildout project, those prices would be firmed into a price, basic increases going on there, so i will yield to you at this time and come back to you on friday when we have our joint meeting to talk about some of these details as well. Thank you. Thank you, mr. Decosta. Commissioner, way back in 200 1, some [inaudible] would go to sacramento to see what it was all about, so morris campbell, michael boyd, lynn brown, paul sand, [inaudible] bloom field, these are a few people who initially gave a lot of input into what you are discussing today. Now, its very easy to talk about a Business Plan, but the real Business Plan has to be vetted at all levels. So, you have to ask your staff if that is done. The last time around, we had some outrage and we had a joint meeting between you, the commission and the department of environment. We found out how some of your staff did the outreach with some buyers. You cannot mess with pg e, as you know, every time when you go into your closed session and youre dealing with lawsuits brought by pg e, you can tally how many of the lawsuits are won by pg e and how many of the lawsuits are won by sfpuc. I have that Empirical Data, so i know where that bafoonary stands, so what im saying is when we are dealing with whatever we are dealing and we have a Business Plan, let us not be foolish to leave the community out, and let us not be more foolish to speak on behalf of the Community Without giving them a voice. Now, we all need to address the best product, what we have two advantage, and im talk b about sfpuc is not only land in San Francisco but we have land elsewhere, and so we need to follow the direction of a nation like germany whos done so much in solar power by having the ability to produce and then we give our presentation, lets not talk about pg e and the overheadline that is you bring to energy, but we have to bear in mind the 400 megawatts we bring from pittsburg which you conveniently leave out. Let us give the right information to the people of San Francisco so that they can participate in this deliberations in a very truthful manner. Thank you very much. Thank you. Any other comments from the public . Your next item, general manager . The drought, steve ritchie. Thank you, commissioners, steve khaoe, assistant general manager for watt e well go into the update of the current drought. As usual, ill show you the storage levels in our reservoirs which hetch hetchy is 78 of the capacity, thats coming down, as it normally does every year, so were in good shape there, but its a standard process, also the water bank has been steadily increasing in capacity, its about 116 acre feed, we expect to get to about 173 thousand acre feed, so theres nothing thats changing about this picture, our system is performing as we expected to. The community precipitation, if you look really close at the red line, there was a tiny bump up, we did have a little precipitation just a cum of weeks ago, not much but obviously were at the end of the water year and the excitement is all going to be ahead as to see what happen ins the coming water year. Our total deliveries have continued to stay stable at about 200 million gallons per day, in full disclosure, if you look close, youll see the blue line looks a little different than it has in previous slides, we found an error in terms of how we were displaying it for 2014, it was higher than what we had displaying before, we were displaying it correctly last year when we were experiencing the comparison between the two was off because of a mathematical error, the message is the the same, folks are conserving well, and we havent jumped above 200 mgd, that line has been essentially flat now for about the last three months. The net result i think is really a very important slide to see, we estimated that to meet our targets a year, we needed to save a billion dollar worldwideser we saved 11. 4 billion gallon, we met the target for the year so far, were going to continue to save water, thats a great thing. Folks have done an outstanding job of conserving both outside of San Francisco and in San Francisco. I showed yo awe slide similar to this last time we talked. It was for the three year running average periods of hot and dry and it was for california statewide, so i had our folks do some analysis and use hetch hetchy data and add in the fourth year through this water year, 2015 and not surprisingly for the hetch hetchy system, this last four years has been the hottest and driest four year period on record for our system. It is we are living in historic times here, i think you probably saw news reports that it was the lowest in many year, this is a deep drought and a hot one and the hots important because that means plant usage of water and the Natural Systems is up, this is a challenging time, no doubt about it. I showed this slide last time trying to show that at least historically, we have not really been able to correlate el nino currents here in the Central Coast area with precipitation, but ive got some slides to add to this now, last week, the National Weather service has put out some new forecast data, i havent shared slides that look like this because theyre a little wonky, generally what theyve shown is that white area is called equal chance, that means equal chance of greater than or less than normal precipitation and thats been sitting over the middle of california for the last year in their projections. What this shows is looking out to december, january and february, the green has moved north, basically theyre looking at a between 55 and 70 percent chance of above normal precipitation for the three month period from between december and february, if you look from january to march, it increases between 60 and 70 chance of above normal precipitation, does this mean its going to rain . No. Does it mean its going the rain heavily . No. [inaudible] this is an actual change in what theyre projecting at the National Weather services, we wont go to the bank on this, it does give a certain amount of hope that were going to see some precipitation above normal in the coming year. And then last but not least, i want today touch on the state water board regulatory actions. This last spring, they adopted various regulations for Water Conservation as they did also in 2014, those Emergency Conservation regulations are set to expire in february of 2016, so the state board has done some outreach talking to us and other water agencies and nonprofit organizations about what actions the state may take regarding potentially permanent regulations so theyre trying to decide what they should do next, and theres a lot of con stern consternation in the swatted community that theyre being aggressive on this. Were taking a wait and see attitude, a lot of the things they put in place are not hinging that are a challenge for us, were going to take a look that the and see how that progresses over the next few weeks and make a comment on that. Regarding diversion curtailments, we will continue to do those. Any questions . Something was announced the other day about the water rights, did that pertain to us at here for the update on the program. Can you bring up the slides, please. Today im present a program and project specific update and im going the talk to you about where we are with the state resolveinging fund and [inaudible] projects are beginning to move into design and we have several prompts ob the cutting edge going into construction at the southwest plant. This is how we feel its going to be going. On the Green Infrastructure side, theres a lot of interest on how were delivering these projects, this graphic just depicts right now we have sunset, we have holloway and Mission Valencia almost in construction, by mid to next year, we will have all of the projects in construction. Then after that, well be hoping we get some of that wet weather that mr. Ritchie describe sod we can monitor the performance and see how effective we are at removing stormwater from the system, we will be monitoring for a three year period after the projects are installed. Right now, theres 68 projects that are moving forward, you can see this is a graphic i show at each quarterly report, the blue portion is getting bigger each time, more and more projects are going into design and our light blue will be getting bigger too and our spending will be increasing. So, on a program status, i wanted to highlight, we go on a quarterly basis to the revenue Bond Oversight Committee and i present what projects are doing, how were forecasting, we gave them an update on state Revolving Fund work, we are developing rfps for construction manager because were going the need those Construction Managers in place to provide special inspection as we begin to move forward. We have initiated Architectural Design guidelines to other project that is are planned for o ut east, we have consistent approaches on how were handling the perimeter setback and is the like. We did have a board of supervisors presentation at the land use and Transportation Committee and i was accompanied by waste water urban watershed Management Program folk and is we talked to them about urban water policy, the stormwater design guideline, how effective those have been and i gave them an update on the early water implementation programs, theres a lot of thought of where were going to go with a green water, we were sandwiched with some items that had nothing to do with Green Infrastructure, so it was hard to be heard at that time. We are continuing our effort on flood resiliency, were looking at this citywide to see what areas are going to be challenged with we have larger storms or even when we have our own design storm. That data was requested by general manager kelly and that will help to inform as to what projects we may move forward with in termser of flood resiliency. We did issue our annual report that went out this summer and its online, you can check it out there, theres the link, it covers all of the accomplishments from the pascal dar year across the board, all the major things, all the heavy lifting and the timeline, thats a nice document that staff pulled together. On the state Revolving Loan funds side, were work witching the board and were looking to obtain 1. 5 billion dla rs over the next five years, the highlight there is the Interest Rate, its half of our ben Bond Obligation rate, its [inaudible] and that is annually over the 30 year term, so its a large amount of savings and its really a wonderful thing and alexandra is here today in the audience sitting in and shes been steam rolling this, done a great job. We were designated as a frequent [inaudible] from the state and we have a capacity of [inaudible] for the rest naufnlt some quick preconstruction highlight, the head works project, the head works is where all the flows converge to the plant and our challenge there is to make sure they come in but we manage the grit, that we pull the grit out tha,s important to the success of our [inaudible] project, were in the process of completing the conceptual engineering report, we issued an rfq which is a request for qualifications to pull on a project manager general contractor, and that was issued early september. The central bay side central Improvement Project is where you would have seen a red dot, commissioner caen, that was only dot in the sip report this time, we had the discussion about the size of that tunnel and where we with want to move forward with that, were studying that now, discussing it with the executive team and will be returning in the fall to bring that to you for decision. The biosolids project is moving rapidly, we are in the phase of completing the conceptual engineering report, Environmental Review is under way ask that will be complete by june, 2017. On the Green Infrastructure side, sunset boulevard greenway began construction in august, that as unique delivery, its being design and had built by the department of public works, the job training program, holloway green streets is on your calendar today for approval for award, that will be our first project to receive state Revolving Loan funds, that is requested today. Mission valencia, we expect that to start mid october, november, we had three individuals go through our four section course for green infratrucker cheer training so weve had 25 Companies Represented and its basically four module ins this training class, so its quite a commitment when you go to that, but our plan is were going to be certifying these contractors and there will be a precertification requirement when they do our future infrastructure work so that jobs will go smoothly as possible, on urban watershed assessment, theyre the leaders in flood resiliency, as we bring all these questions and answers forward to you, we will be laying out our Capital Program on what we want to do on the green side as well as the Flood Control side. Current projects wrapping up the digest tor roofs, we have 8 digesters currently operational, and numerous upcoming projects, that list will continue to grow. Now i have an exciting slide about local workforce, im going to have to read it because it has so many interesting pieces of information. As you know, we worked very hard to provide Small Business and Job Opportunities to San Francisco residents and particular those from the Southeast Community, i want to give you a report from the ssip world, out of those 328 Million Dollars that have been awarded on ssip prime contracts, 112 million have been awarded to subs, nearly half of that amount or 48 have been awarded to local San Francisco lbes, so weve been doing a tremendous job. In addition, San Francisco businesses have also served as prime contractors on five of the six projects that we have awarded to date, representing over 30 Million Dollars. Local hire, a quick update, San Francisco local hire ordinance requires percentage of workers on each of the projects be residents of San Francisco, so through 2015, the range is 2030 depending on what date were advertising, so through june, 2015, San Francisco residents have worked more than 40 of all the hours on the ssip projects, exceeding the requirements. What this mean iss we have 120 San Francisco residents who have worked on ssip projects earning a widened 2. 5 Million Dollars in wages, out of those hours worked by residents of San Francisco, the highest presentation was district 10 represents bayview Hunters Point and [inaudible] valley, the mission, district 9. So, we have spent a lot of time listening to communities, working with the community and certainly appreciate all the Public Comment and we understand the urgency to pull in as many Small Businesses as possible, so as a response, we have really put our feet on the ground at our Contractors Assistance Center in the bayview Hunters Point community and thats where its a Meeting Point for contractors to come in. We have hearings there, we have bid openings there, we recently had a call for action where we were talking to the community and the Contractor Community about the Construction Management opportunities na will be coming up and that was standing room only. So, we really try today make use of that venue to pull people in and have it be a place that contractors use. Stakeholder engagement, the summer usually is ow but we were still quite busy because were doing a lot of Community Meetings to talk about the flood Water Grant Program that was approved at the commission. We also were lucky that our interns put on a beautify the bayview shar ret process, it was swooped by the ssip, they had the Community Come and they went door to door to make sure they had great attendance and they developed concepts for how the communities could be beautified, looking at the southeast plan and the corridor around there. On august 21, our sewer rap video received a reward from the California Association of sanitary west, thank you, and we were honored with an amazing glass trophy, you can see on the bottom, agm [inaudible] and abrams went down to receive that report, we had 47 thousand hits on the video now, that has taken us a long way, thats one of ways we try to reach people and make sewers sexy so that we keep up with our enterprise. Sadly, the summer ended and we said goodbye to our 21 students would went back to high school or college and hopefully they will return after their lives away from us next summer. That concludes my report. Yes, you have a question . So, i just want to thank you for your report, and it is real exciting, but i wanted to make sure we place enough emphasis on the data points about local hire and about the wages going into the community because then the Small Businesses and the local businesses start to get a kick back for lack of a better world as a result of that, its really impressive, the work that youre doing and tommy and laurie and i know harlan is all over this stuff, we had all those kings about local hire and underemployment and overemployment and i think its really important to stress those points because thats getting it done, im just honored to be here and i would like to keep us talking about it. I did send a communication out in the Green Infrastructure certification. I would like to know a little bit more about that. Theres a big difference between those you know, we refer to those Construction Industry jobs, especially for the Building Trades as seasonal work, theres a big difference between those position and is those maintenance type of positions so i want to flush that out a little bit more when time permits. Thank you. Thank you. Thank you, madam chair, any Public Comments . Seeing none. The next item, please. Item 9 is a bawsca update. Nicole sandkulla, i had two things i wanted to talk with you today, i did want to update you on water use characteristics in the s frs area to give you a sense of whats going on and update you on discussions i had with my board about the tunnel. So, first, this was a slide we pulled together for the board last week, they are interested in what it means on a per capita basis, so this is a comparison of july, 2014 per capita data to the most recent yule data, we are in the misleading of a drought but its a comparison of what the state board used those numbers to assign the targets so the reduction that were seeing on a per capita basis is significant just as we were already in the misleading of middle of drought. Inger is that saying that hills pro didnt use any water . I forgot to comment about that, i believe they had a data error, they submitted overall consumption data but not a per capita data as of when we pulled this off, so good catch. Sea hills burrow on this, theyre having Great Success this last month exceeding their target, in fact, all the agencies exceeded their targets, both in june and now also in july, so this graphic shows both those numbers, it shows the july number and then also the cumulative number, the cumulative number is in blue and the july number is in yellow, and their target is in green, and what were seeing and what we expect to see which is theyre exceeding their target in these summer mothers because we know its the opportunity for them to do that, overall, their target is 15 from the state, so theyre basically doubling that in july. And in fact this is the trend that weve continued to see for the last several months, the 32 , 33 and 31 for those last three month and is we ant pate the august data to be coming out very shortly, so this is a really good picture but as weve been telling everybody, it doesnt mean to sit back and do nothing because in a service area like this where you have per capita that is low in the winter, its hard to achieve a significant save rinsing the winter, this is exactly what we want to see. A different way of looking at it is if we were to the state says you have to save so much basically from june through the following february, we have a target savings, a volume savings for that overall period, if we were just to add up thats your savings target as a total volume and add up how much agency saved for june and july and created a percentage, thats what this graph is showing, as a group, the agencies have akhao efd over 57 of the total savings they have to achieve by february, so again, very, very significant with some agencies already exceeding their overall target, that would be north coast, and this really reps just the june and july data, essentially only 25 through the period of savings opportunities, so really seeing a response if you will in the community to the call and knowing that were going to achieve the state target which is very good. So, thats what i have on the conservation data and the demand data. And i think its a good picture. I did want to i also provided to the district secretary and you each have i think a copy of a statement i gave to my board last week. They wanted an update on mountain tunnel and to see where things were at. I was able to really provide them a description of the progress youve made and i think theres been a lot of progress. Youve adopted a schedule and a plan, parallel processes to deal with both increasing access to the tunnel, doing repair work and section and repair work and then also a potential bypass project if in fact that seems to be necessary following the inspections and those are a very good thing, and then i did call out from my board the one thing that were continuing to work on is this question of in an unplanned outage beyond 90 days, is there more that can be done on the supply side to increase the ww490 with a noncompensable time extension of 60 consecutive calendar days and authorize the modification tos the contract. C, award contract number ww579 in the amount of 849 thousand 750 to the lowest, qualified, responsible and responsive bidder, an vil builders. D, approve modification number 2 to contract number ww592. Erkts, approve contract number ww609r in the amount of 5 million 591 thousand 892 dollars. F, authorize a letter of agreement with the California Water service company. Did you want to take 10f off . [inaudible]. Well, wed have to take it off if you wanted to discuss it. I just wanted to let you know i was speaking in support of it, thats all. Good. Commissioners, any item to be taken off the consent calendar . Ill move approval. Second. All those in favor . Aye. Opposed . Motion carries. Next item. Item 11, authorize a memorandum of understanding between the Treasure Island Development Authority and the sfpuc regarding naval station Treasure Island Utility Service by extending the term of the mou by one year to september 30, 2016. David carlin, if you have any questions . Ill move approval. Second. Further discussion . All those in favor . Aye. Opposed . Motion karis. Er item 12, amend the existing authorization for water enterprise revenue bond funding and authorize a reimbursement of associated project cost from the state financing proceeds, direct the general manager to submit to the board of supervisors a proposed ordinance. Ill move approval. Second. Any Public Comment on this item . All those in favor . Aye. Opposed . The motion carries. Would you read the items for closed session, please. Item 15, existing litigation al le hand rena versus the city and county of San Francisco, 16, its many cases. Item 17, existing litigation, cal state construct tersest incorporated versus city of San Francisco et al. Item 18 z and items 1925 will not be heard today. Are there any Public Comments on the issues to be discussed in closed session . May i have a motion whether to assert . Move to assert. Second. All those if favor . Aye. Opposed . Motion carries. We are now going to go into we have reconvened into open session. The report from closed session is the following, item 15, settled, item 16, no action, item 17, settled. And item 18, no action. 1925 were not heard. May i have a motion to regarding whether to disclose . A motion not to disclose . Second. All those in favor . Aye. The motion karis. Is there any other Business Today . I would like to announce that there will be a joint spucs laugh ko e meeting september 25th at 1 30 the n the board chambers to discuss the cleanpowersf activities. This meeting is adjourned at 4 09. meeting is adjourned . Mayor edwin m. Lee good morning, everyone. Welcome to our citys Navigation Center. I have this opportunity to talk about the partnerships that weve created in our latest but on going challenge of helping to house our homeless the best we can as a city. Let me begin by again saying thank you to former mayor gave and articulated a plan to end homelessness in our city and got ought of all of us in the city to give this high attention and our city to create homeless programs and homeward bound programs and incentivized us to look at as many model as we can to housing rubric first and thats been our mantra. As i approached the challenges that i have with more people having suffered homelessness and working with our Public Health agencies, our homeless connect, our Homeless Center and leadership through the stories that they continue to provide to us about the challenges that families and youth and others face along with our Human Services agency, we also wanted to make sure that we formed additional partnerships to help us with this challenge. I think one of the best partnerships that we form is with our Inter Faith Council because of their on going commitment and i know members of the board are here. I want to say thank you to our local representative here david campos and also mark ferrell and Julie Christensen for their leadership and the rest of the board as we look at this model at the Navigation Center and try to figure out in this partnership what else we can do and do better at. The Critical Partnership with the interest Faith Council is not just the leadership they have been and working with el nino but working with our Human Services department and all of the agencies that want to help in this incredible challenge of People Living on our streets. We must do more and we must do better and learning from the very examples that weve given to tomb homeless connect when they are at bill gram and other parts of the city and we try to form even better ideas. The opportunity came about when the Inter Faith Council had an opportunity to present to us a philanthropic idea to work with us and other agencies to put our best ideas forward at this Navigation Center. This truly is a center where people who are homeless and living on the streets can gets services at one center. Its an attempt to take on the challenges at our homeless shelters and input on the street and those that are working through the Incredible Services at the Service Center working along the streets along with working with our public works department, our Police Department to try to provide the highest human touch for people who have the tremendous barriers of living on our streets. This Navigation Center has some of its good values as we try not to say no to anybody. That when we invite people we try to invite the relationships that they built over perhaps sometimes many years on the streets, taking care of their pets, the things that they have a sense of belonging with. Identify their property and take care of that and have a place where they can immediately clean up, have immediate attention on Health Services of support, mental challenges that they might have on the behavioral side of it as well as just basic food and the Inter Faith Council has been able to attract along with the Episcopal Community services a variety of food stock such that those can be here can have access to Healthy Foods 24 7 can get the shower and health needs on an on going basis on these sites with these portables that used to belong to Public Schools and the help of public works and againstity of philanthropic donors that weve been able to have very portable showers and bathroom facilities all in an effort to work with supervisors david campos because he was not interested basically in having the traditional shelter here and supervisor which would be responsible to do and as we talked to other supervisors, we wanted to present a model. I believe now given that some of the mayors that came through some of the conference of mayors that this would be the international model. Mayors from seattle, portland, vancouver, have sent delegations here to review what we are doing here because they are facing similar challenges in their city and we are comparing notes along with los angeles, san jose and oakland. And by all accounts, our effort and our model here has demonstrated that we have done better and we can do more and better. Such that, this Navigation Center given all of its collaboration, the systems we put in, the nonprofits that we put in. The surrounding and embracement of our clergy as well as those at are advocating for the rights of homeless to be respected in a dignified way. They have all said i think without a doubt that this Navigation Center is the right way to do it shouldnt surprise you with some statistics that over 200 people with the last 5 months since this center has started has been served that 60 have moved into permanent Sustainable Housing off site. 34 interesting enough, 34 individuals have raised their hands and said i have gotten to a point where you help me identified a support system where i can go home and be more successful. There are currently 71 persons here right now living and getting the support services, awaiting the permanent housing that we are negotiating. So all in all, the brief time that weve had with everybodys level of cooperation and with the again the Housing First services being part of that, the Navigation Center with its goals have been very successful to the point where todays announcement is not just to give you some background about the center in the Navigation Center in how it works. Later on well have someone who has gone through the center to talk to you directly about what this means to him, but also to allow the center to effectuate in a way that this center approaches homelessness. We will begin immediately of reprioritizing of existing fund that exist in our Human Services agencies and Public Health to call for an additional 3 million to be put in both an expansion and another Navigation Center. The location of which we have yet to have, but we know this is a good model. And working with our budget office, working with bevens input and working with nonprofits, we believe an expansion and working with the Navigation Center, im going next year of identifying two or three more of these Navigation Centers to make an even more impact around the thousands of people that are homeless in San Francisco. I believe we can do that and i believe this model can be had. We are not doing it alone, we could not do it alone. I think we have affected this private partnership so deeply and encouraged the private sector that we want to establish a fund. We are going to call it Navigation Partnership Fund where we will deposit our initial 3 million that the city will have and ask the private sector to match it. To match it in a way in which its not just money. But that they will match it only when they see the use of the city money going towards a very Successful Program as we have demonstrated here so that their private money can then be viewed as being used very much in an accountable level to be matched up with the city money. We expect and we hope that as we introduce this model and bring more private citizens and companies in to educate them about homelessness and about the causes of it that we will at the same time say that this is part of the solution. Now, i say part of it in a very deliberate way because none of the supervisors will say that the Navigation Center is in and of itself the answer. Its still Affordable Housing that is at the end result. This has also been the end result for all of our shelters, for all of our service programs. We want to have sustained housing but are people ready for it . I think coming to the Navigation Center and getting the support we have will get them there back up to this Navigation Center and certainly by the end of this year are over 500 units of housing primarily in affordable Residential Hotel units that the city and the private sector are mass releasing. That is an incredible part of the answer and that by this midseptember, we will have about 150 of those units identified so as people move in, they know where they are going to be ending up. By midoctober, another 150 units have been mass released by the Mayors Office of housing and the housing coordinator and all the other agencies working together. Now, the big difference and of course we will have the target of 500 by the end of the year. The big difference is this i know cecil knows this, episcopal knows this, inter faith knows this, it is never ever about just the brick and mortar, is it . Its about the people. Its about what they need on an on going basis so they can more than survive. They have to be successful. They have job Training Programs helping. We have support systems for our transitional age youth that they can not do without because they have got skill training. They have to get back on education levels. They have to get to jobs that they can use the earnings of which they can afford to live here. For so Homeless Population its no different. In an around the south of market area or tenderloin, we know that if we dont do more than just the brick and mortar, that they will be no different than those that are living there. We have to have services on site. Where we mass released these, we made an agreement with the Residential Hotel owners and i want to thank them for being great people and working with us because we are going to invest in the building and management of those buildings and we are going get the ability to have a number of those residents to appeal to a Certain Council to keep track to make sure people are being taken care of. And continue to refer them to services and many of those will have services onsite and those will invest in the elevators and sros and things that they do in massive Affordable Housing on a daily bases. They operate very low income Affordable Housing just like our Nonprofit Sector that we are working deliberately on that are passing this incredible bond that we have that they though that they have to have Asset Management as part of that system. So, we have this model of a Navigation Center that begun with some great philanthropic ideas but also worked reality with our supervisors and our homeless advocates and Service Providers in the homeless connect to cause a center that had not only an enriched level of services, but we also have the end result which is housing at the benefit that we are taking care of as well. It not to say and im not going to promise 100 for all of this, as a matter of fact some people decided it wasnt for them and they are back in shelters and 17 said i want to go home. There is Strong Enough of a system of support i want to have. I think this is humanity we want to have in our city. We do have voices that are formally Homeless Individuals that keep advising us. We want to keep our ear open to those that we help so we that on the longterm we have the longterm answers. It is not just about announcing 1,000 or 2 or 3,000 units. Its about how we do it as a city. Its a story i want to tell to take the opportunity to say that more people will be off of our streets not because we want to move them to another part of the city. Supervisors dont want to hear that either. They want answers and i think we are providing them with the collaborative answer that people are seeking the longer and more sustainable answer and allows people that are form erly homeless to allow the ability to get some support to be job ready or they can Access Services they are not able to to live a richer life in the city of San Francisco. I think we are already acknowledging how expensive this city is. That is why the City Government is stepping up to cause this to happen but we are also going to say that we need the private sector to step it up as well. We will ask all the businesses whether its the chamber of commerce, the tech companies, the hospitals, take a look at this model. Come down here. Visit, talk with the individuals and if you agree with us, with our best step forward, i want to make sure that those who have been involved in the challenge of homelessness see our citys commitment as deep as well as is wide and that we want to make sure we have all the foundational answers for this. And if its the only way you can do that is to interview those that come to the center and talk to them about whether their lives are changing and whether we are doing the right things or not. It doesnt end with just the the center, but it does an on going basis to have a lot of partnerships to continue to recognize this is an on going thing. I want more of our People Living on the streets to be off the streets for the right reasons. This incredible weather that we are having has caused a lot of people to be on the streets at night and the lifestyle of things that happen on our streets are very dangerous to them, to their health, to their well being. We have to have these kinds of answers that allow people to have longterm homes. This is the work of the Navigation Center. Im proud of the people that staffed this place from episcopal to Public Health, behavioral, Mental Health, staff, neighborhood center, mission center, remind me of everybody thats down here. They smile when they have visitors because they are proud of work that they are doing. I want to give kudos to all of them and Human Services. This is a model that is working well and i want to be able to expand it. With that, let me proudly introduce supervisor mark farrell who has been paying a lot of attention to this and what it means to us here. [ applause ] supervisor mark farrell thanks, mayor lee. Homelessness has been a serious situation for decades. There is no solving this issue. What it does say is staying commitment on behalf of the city and on behalf of all of our residents. Housing will always be our first priority, always. But also look at creative new ideas over a period of time that will make a difference in the lives of those living on our streets and all of San Francisco residents. To me this Navigation Center represents not only an embodiment of new creative thinking of how we are going to take people off our streets in an environment that will bring them on a volunteer basis in this Navigation Center but also represent the ability of allowing the private sector to get involved to really address something that is more attractive to our city and how we are going to help them. Whether its homeward bound that mayor lee mentioned whether it the laws we passed last year or Navigation Centers. This is what we need to be doing as a city. We need to make sure this is a top priority for our entire city of San Francisco. I want to congratulate not only mayor lee for this, but our Budget Committee and i want to share with you the 1st hand this administration has had and to all of those that are involved in this city not just citywide but in particular, i want to talk deven duffy, it is your vision here. [ applause ] with the coolest sun glasses that exist in San Francisco right now to bobby garcia, all the other providers that worked with us in our community and michael and rita here as well. Thank you to all of my colleagues, supervisors campos and christensen. Its a great thing when we come together with new ideas and to benefit all of our residents and to bring the private sector in. Im proud to celebrate with the mayor this Navigation Center and also the future to continued bringing of the private sector into continuing to work on our citys issues. To me it represents an incredible step in the right direction. Where we need to go with the city. Im excited for the future. I want to congratulate everyone today and the work and the best is yet to come. I want to introduce a true friend who cares about this issue as well supervisor david campos. [ applause ] supervisor david campos thank you, mark. Working on the budget specifically on this issue. Mr. Mayor to supervisor christensen welcome to the mission to district 9. I want to just be completely honest. We are not going to solve the issue of homelessness today. I dont know that this city or any city for that matter can really completely eradicate homelessness. But what i have seen since my not only tenure as a supervisor but as a Police Commissioner and someone who has lived in San Francisco for a long time that when it comes to homelessness, we really have to be smart about how we deal with the issue. And i think that we need to get away from some of the extremes that we have seen in the past. The idea that somehow the status quo is fine and we deal with homelessness by not looking at it and not thinking about it and the other extreme that we somehow deal with homelessness by criminalizing the homeless. Those strategies do not work. When beven duffy first approached me about the Navigation Center and i talked to the mayor, it was important for me that we in district nine and specifically in the mission that we stepped up to make this happen. My experience is that whenever you talk about homelessness on the board of supervisors there is always apprehension about bringing into the district anything that has to do with that population. It was important for me that district 9 and the mission approach it differently and say you know what, we will tackle that issue. So, before anything is said, i want to thank the people with district 9 and specifically the people of the mission that helped to make this happen because [ applause ] because a Navigation Center like this does not happen over night. Before even the concept was something we could talk about, beven and i had to meet with Community Member and Community Member with school parents, with the principals, teachers, merchants association, with the residents with anyone we knew that would be impacted by this. It took months to get to that point. It wasnt only until we did all of that work that we were able to bring this to what it is today. So, my message to the rest of the city is as grateful as wonderful as i think it is that district nine did this, other parts of the city also need to step up to the plate. We in district nine and we in the mission in particular are proud that we have been carrying this responsibility. But this is something that to really address it, other neighborhoods have to do the same. Because whats happening right now, i can tell you is that the numbers of homeless folks that are moving into this area are increasing. I think to some extent maybe that if they are in this neighborhood that somehow they can get priority to this Navigation Center. There are some who feel that. So whats happening is is that we in this Navigation Center do not have the capacity to really address all the need thats out there, not only the need in this neighborhood but the need throughout the city. There are people who are trying to get in here and we have to do a better job. I am very excited and i want to thank the mayor for the fact that we will be opening another center. I personally think that we need 56 navigation . San francisco to really begin to address the level of need. Also the Navigation Center as critical as important as it is is only part of the equation because the ultimate solution has to be permanent housing. So, mr. Mayor, i look forward to continuing partnering with you and looking forward to working with my colleagues and decided where else these Navigation Centers will go we will make ourselves available to share with you the Lessons Learned and our thoughts and i think its only fitting that this council and city is so involved because the city of frances should be the city that gets this right. With that, im proud to introduce one meef colleagues on the board of supervisors, the supervisor for district 3, supervisor christensen. So lots of people to thank. Lots of history. I would like to confine my remarks to three things. To the citizens of this city get it and people who have been living on the streets because they have no home and no leg up. We understand their plight in our community is an important issue and we are on it. Secondly, to this particular place, to beven duffy and his team and i think parks and recreation had a hand in this. Thank you. I have been watching this center since before its opening. I think i toured with deven. I was proud to be in south of market for the first people that moved out of the center into housing and i was especially happy to be here with senator Diane Feinstein a week ago who took a very particular interest in this program and in its opportunities. So it is wonderful with an issue that seems so intractable and often so lacking in hope that we have come up with at least one step that provides a chance that we can do something about this. But thirdly and this is the most important thing i would like to say today, to the person whose contribution made this possible. Who may even be among us today, i dont know. Thank you. Your money has been put to good use. Wonderful things are happening here. And secondly, an invitation to people who are out there that havent stepped up. To the companies who have not discovered philanthropy yet. To people who want to help, this is a good place to put in philanthropic system to make a real difference in peoples lives and in the lives of our communities as a whole. Come join us. Come make these new centers happen and well be looking for possibilities in district 3 and well make many more of these happy place an i hope everyone will help to that end. Thank you. [ applause ] our jewish sisters and brothers are about to embark on the holiest time of their year, and a time of season of new beginnings. I draw from the sacred text of the jewish people, the book of proverbs that say the without the vision the people will parish. Its a vision of action and we are blessed to see this. I want to share 2 stories with you about how we came to this day because in order to get this up and running in the time constraints that we are were given us we want to make sure at the Inter Faith Councils part that we can get the funding mechanism placed within the year. We were so grateful to be able to partner but it took a little work to get there. The meeting of our board took place on the second thursday of december. I dont know if you remember what that day was like here. It wasnt as beautiful as it is today. Theres no power this this city and all the schools were closed. There were torrential rains. We had done all of our Due Diligence and to just get a letter to talk about the significance of this and the staff said no, we wont give that to you and i said why . Because the mayor wants to come himself and impress upon your board the significant of this project and he did. He made a little reference to el nino. And in his statement to our board which i think everybody will remember because we met by candlelight. There was no power. He says we are here today to pass resolutions because the people that need this shelter the most are the ones that are out there getting wet now. And i remember that like yesterday. And we felt very blessed unanimously to have embraced this project and to stay active with it. We were asked often by the press, is this going to work . Is this going to be a success . People of faith can talk prophetically. I can tell you why, having an opportunity to tour this site with the mayor and owner. The mayor new every inch of what was happening here in this building and that vision i can see it was going to work and the genuine confidence in the done or and it allowed it to be created. And the creativity to be able to create coalitions with the board of supervisors, the neighbors, the City Department heads and the nonprofits. That was a sign that this was going to work. We are very thankful to have been at the ground floor of this Pilot Project and we so pray to see this replicated and continue our commitment. Weve been in the business of the inter faith winter shelter for over 25 years. Mr. Mayor, thank you for allowing us to be involved in this. I actually get and i want to recognize Human Services agencies commissioner rita soems who is here. Shes the president of our council and she has a very important vision. Im proud to be here to present our client. Victor and his partner cynthia on the street for 25 years. It wasnt until entry into this place where they can see a road to hope, a road to possibility. Victor, would you come and share with us a little bit your story. [ applause ] this is a story about empowering me. It took a strong woman to give me that vision, that believed in myself. That means a lot to me. This woman right here. [ laughter ] you know, that is what is really great about this place because as you know, these streets can tear you down. You can be out there fighting and running the streets and using drugs, whatever. It is what brought you to that point in our society. In this society you need hope and believe and everybody that deserves a chance to have a life, to be a part productive part of our society in this world. She gave me that hope because i was living up under a bridge. I went to el nino as you talked about last time on a tarp with safe way baskets. It not what you want to go through. Torrential rain, everything wet, alone. This woman inspired me. She seen something in me just like deven who said im coming back to get you. For a city official to tell somebody that and to come back to get that person no matter if it was a day or 2 months later. He said believe in me and i did. Im here to testify to it. Thats important to me. For the next place to have a place to come to. Its not easy to be in the streets. This is a great thing. To take you off the street and put you in a Living Environment is a shock. I know many people that went in off the streets and just went right back out. Because they werent ready for it. This place here. It teaches you the life skills which is so important. It makes you feel good about yourself where you can go to have a place to wash your clothes. A place to take a shower everyday. A clean environment. Not just some hotel where everybody just comes off the streets with whatever. This is a clean environment. Its teaching you. You have a kitchen. You have staff, the support. They support us in getting our drivers license, marriage license, domestic partnership. It all factors in to giving that person a sense of being. That is what is so really important to have a sense of being of accomplishment and they help you on that way by giving you wake up calls. You cant have someone that lives moment to moment on a whim and expect them to go, okay, i have an 8 00 appointment today and after that i have another 2 00 appointment and its difficult for that person to meet that because its living outside. Every minute, it can change. Your life can change. Somebody can come in, someone can interact with your life and change the whole, everything that you have planned to do and it will change. This place gives that you buffer and opportunities to sit down and think about it, no pressure. They are here for us. Thats whats made my. It hasnt been an easy road. Im used to getting up every morning thinking about how im going to eat, how im going to take care of her. What im going to do to take care of her. Thats on the top of my head. Put you in a basket. Whatever, recycling, whatever. A few dollars to do that. If i had to pick her up and put her in a basket and put her in there and got pulled over for it. Our Police Department said this woman coma toes in this traffic cart is getting pushed. They were worried. [ applause ] that officer that pulled me over cared enough about seeing Something Like that, a person with another human being in a basket. Thats what its all about. Thats what beven showed me. He cared enough about me for meeting me and we all do. Everybody. We love a chance. Thank you. I wont say anything more. [ applause ] thank you, victor. We have more people to serve, more people to come through. Mayor edwin m. Lee one significant thing that i know supervisor campos mentioned. When we talked about this idea, we also talked about it being temporary. The reason is this is a site for now and hopefully less than a year construction will start in 160 affordable units, that this mission and community deserve and need yesterday. We are moving very quickly on that. But it also says to all of us that, we only have a certain period of time to show what weve got. We do have time pressures because we need to get people off the street before they encounter things they cant handle. This is where the time frames are important to the accountability and the use of the public funds as well as the private funds. So we are dedicated not just to ideas, not just to the programs but on a very deliberate life changing transformative time changing for people to get their lives in order and this is what is part of the discipline in the Navigation Center. I want to assure that the supervisors as we promised it would be temporary and it is in fact temporary because these sites dont run off very often. We are already identifying other areas of the city and we need the similar cooperation that we fortunately had here by community representative, residents, the School District and everyone here watching whats going on they have been supportive of the pets and the property and the level of activity thats been here. We are on a quest to create more Navigation Centers. We are on a quest to use the citys money wisely and to create more partnerships with our religious community, our residents, our nonprofits that are incredibly important to this. Thank you for visiting the center and thank you for listening to the speeches and there will be more folks to ask more questions and we anticipate that our approach here will cause more people to come and take a close look at this model and work with us. Thank you very much. clapping. the airport it where i know to mind visions of traffic romance and excitement and gourmet can you limousine were at San Francisco inspirational airport to discover the awardwinning concession that conspiracies us around the world. Sfo serves are more 40 million travelers a year and a lot of the them are hungry theres many restaurant and nearly all are restaurant and cafe thats right even the airport is a diane designation. So tell me a little bit the food program at sfo and what makes this so special well, we have a we have food and Beverage Program at sfo we trivia important the sustainable organic produce and our objective to be a nonterminal and bring in the best food of San Francisco for our passengers. I like this its is inaudible i thank my parents for bringing me here. This the definitely better than the la airport one thousand times better than. I have a double knees burger with bacon. I realize im on a diet but im hoping this will be good. It total is San Francisco experience because theres so many people and nationalities in this town to come to the airport especially everyone what have what they wanted. Are repioneering or is this a model. Were definitely pioneers and in airport commemoration at least nationally if not intvrl we have many folks asking our our process and how we select our great operators. The food option in San Francisco airport are phenomenal thats if it a lot of the airports yeah. You dont have the choice. Some airports are all about food this is not many and this particular airport are amazing especially at the tirnl indicating and corey is my favorite i come one or two hours before my flight this is the life. We definitely try to use as many local grirnts as we can we use the goat cheese and we also use local vendors we use greenly produce they summarize the local soured products and the last one had 97 percent open that. Wow. Have you taken up anything unique or odd here. Ive picked up a few things in napa valley i love checking chocolates theres a lot of types of chocolate and caramel corn. Now this is a given right there. Im curious about the customer externals and how people are richmond to this collection of cities youve put together not only of San Francisco food in San Francisco but food across the bay area. This type of market with the local savors the highend products is great. I know people cant believe theyre in an airport i really joy people picking up things for their friends and family and wait i dont have to be shopping now we want people take the opportunity at our location. How long has this been operating in San Francisco and the late 18 hours it is one of the best places to get it coffee. We have intrrnl consumers that know of this original outlet here and come here for the coffee. So lets talk sandwiches. Uhhuh. Can you tell me how you came about naming our sandwiches from the katrero hills or 27 years i thought okay neighborhood and how do you keep it fresh you can answer that mia anyway you want. Our broadened is were going not irving preserves or packaged goods we take the time to incubate our jogger art if scratch people appreciate our work here. So you feel like out of captured the airport atmosphere. This is its own the city the Airline Crews and the bag handlers and the frequent travels travelers and weve established relationships it feels good. When i get lunch or come to eat the food i feel like im not city. I was kind of under the assumption you want to be done with our gifts you are down one time not true we have a lot of regulars we didnt think wed find that here at the airport. People come in at least one a week for that the food and service and the atmosphere. The food is great in San Francisco its a coffee and i took an e calorie home every couple of weeks. Im impressed i might come here on my own without a trip, you know, we have kids we could get a babysitter and have diner at the airport. This is a little bit of things for everybody theres plenty of restaurant to grab something and go otherwise in you want to sit you can enjoy the experience of local food. Tell me about the future food. Were hoping to bring newer concepts out in San Francisco and what our passengers want. I look forward to see what your cooking up laughter today weve shown you the only restaurant in San Francisco from the comfortableing old stand but you dont have to be hungry sfo has changed what it is like to eat another an airport check out our oblige at tumbler dating. Com im going to call the meeting to order. Commissioner katz. Here. Commissioner brandon. Here. Commissioner woo ho. Here. Item two approval of the minute for september 8, 2015. All in favor say aye . All opposed . Minutes are approved. Item on Public Comment on executive session. Any comments . Commissioners the next item has been taken off the calendar