Transcripts For SFGTV Public Utilities Commission 91316 20160916

Here. Commissioner caen . Commissioner courtney herehere. Commissioner kwon . Here. Present vietor. Here. Commissioner kane is the budget in more recent years has actually increased from 2 million to 5 million. Expected shortlyand the kilowatts installed remained high. Over 2000 kw per year. Commissioner courtney will not be able to be here today. On the next slide you can see the total that are impacted by pg e and on the mme. Sec. Next item please. Left side you can see the item number three is approval of the minutes of payouts on this you see this august 9, 2016 all those in favor say, aye. Opposed, nay the motion passes more so in the recent years and the participation of the installers is what you see here with the installers this unanimously. Mme. Sec. Can you call item for please . Item 4 is gen. Public has been very good in the comments. Members of the beginning especially with the market share. It is happening in a general public may address the market context. California commission on matters that puc took a look at the incentive programs that it has been running in 2015. Are within the commissions it summarized here are the jurisdiction and are not on results of that i think its todays agenda. Important to realize that the California Public Utility Commission achieved its goal of Widespread Adoption now,the way that the watershed is at crystal on a selfsustaining market. We also took a look at what was happening with our public owned utility patriots. Thats what we are showing on this slide. Springs measures are taken all of the programs that we to protect it and we have a have showed on the bay area system, a unique system and we have a gentleman here who and this area as well. Or, they fully subscribe so they are not available to has been working on that customers. We took specific since 1993 and i have been looking at this since 1998 rebates and incentives for solar programs. They are declining and going to zero. The stabilizing factor i vigorously. Water is going to be a resource that we cannot play with. Now, i know you have some experts here. It mentioned earlier that is the tax credit. The tax credit, the 30 federal tax is the year 2016 and we flush our toilets and we have clean Drinking Water and credit has been extended and it says a lot for the city. The cpuc pass favorable net when we look at the Sea Level Rise and the Climate Change and this that and the Energy Metering terms for customers installing solar other we need to conserve in their homes. We had a water and we need to use it for the right things. I am series of meetings and those here to ask you commissioners, that if any changes are made to the are noted here. And, we got watershed that you waited some feedback and answer questions. Now, for the proposed changes. Invite the [inaudible] to the table [timer dings] it we propose to integrate the cleanpowersf and is very simple. You do not need to be a rocket gosolarsf pprogram and we have by going through scientist. They reserved Enrollment Period have all of that water for our the last 200 years and now signed up tto be a someone will come along for cleanpowersf customer or go the next 30 years and screw solarsf customer in waiting it up. I know that you commissioners have the or youre already a gumption to do the right cleanpowersf program. With thing. Thank you very much. Emphasis on becoming a super go to the board of supervisors. Thank you. Any other general Public Comment at green cleanpowersf customer. And not only that but we establish metering rates and terms for our customers. The commission went ahead and established them earlier this year. But in addition this time . Next item super green customers would please. That next item is item 5; receive the highest rate because they are paying the communications. Highest rate so you have an do we have anypublic added incentive if you will because of the energy that you generate from your solar system that spills to the grid. Comment on communications . Good afternoon. Good afternoon. I am here we are also proposing to to speak on behalf of the continue to Foster Program stability by simplifying the go solar sf incentives to one dollar per kilowatt instead of a complex table water review from your state board and that is required that we currently have. We for the state law. And i am are proposing to step down all of the incentives to reflect the lower cost of the solar that we saw. It here to verify that this is a comprehensive and complete report on the annual report. I wanted to extend that information to you. Last year we gave some significant comments to mr. Is time to recognize that is cheaper to install solar wade and his team and they today and we should just our incentive programs down as a result. We are proposing to step incentive payments down responded to those incorporated those and i for customers by small think it shows leadership in increments. Predictability the overall status so thank is important for the Stakeholder Community so you. Thank you for your having a casual step down is helpful. We propose a step comments. Yes, i thought it was a very impressive report. I thought so too. I dont see him here so down of 100 per kilowatt thank you very much on your comments on the report. Any other comments on communications . Mme. City clerk, item 6 please. Item 6 is other commission this year. We are really strengthening support for business. Seeing none, mme. City clerk please read item 7. Low income residents. We think that is an important focus area for us. The state of california does item 7 is Citizens Advisory Commission or your this for their low Income Customers and we intend to do the same. The additional report. Good afternoon pres. Vietors and commissioners and i am here today to support we would propose for low Income Customers would be to develop an inverter replacement program. The report for the cac. I am solar installation community was very good at getting out to low income households in San Francisco when the Program First started. So we have a lot of systems for proud to say that the cac low income roofs. As that attended a cac retreat. During the retreat we system would age the first thing that will go as the inverters. We are anticipating that some of those low income households obtained our purpose of the will need help addressing subcommittees for 2016 and the inverter issues and we would like to propose changes to the program that would allow some incentives 2015the cac members have for that component of the program as well. Let me ask you some questions. Sure. I have heard that some of those older homes are not Strong Enough to hold the weight. How do we get them to strengthen the structure itself to accommodate that . The executive Management Team showed us the priorities over the 2015 2016 team and we have not ent as far as to help the low income residents to improve their housing but we encourage you can see more about our priorities through the water power and wastewater subcommittees in 20162017 they contact the mayors that were identified during our retreat. We will office of housing they offer continue to work with the general manager and the assistance for those sorts executive Management Team to provide prior input on these of things and that can be a things that were identified. Big cost for individuals that live in San Francisco said the Mayors Office of i work with staff and the board has appointments 48 out of 13 of our other appointments. In addition housingword definitely the board appointed members out when a donna and steve provide assistance for those mckenney who was just who want to do that and need those components. Appointed last friday. We do have people in the pipeline for eight, nine, and 10. In april after the committee adopted a resolution to honor the life finally, there are some Technology Changes that we would like to consider incentivizing. We would like to develop of espinal jackson, the complementary distributed Energy Programs perhaps for Energy Storages or for electric vehicle or vehicle to grid technologies. We would like to have the commission acknowledged what abilities to make those kind ms. Jackson had done first city. Im happy to say that her followed in her of Administrative Changes mothersfootsteps. This was passed on tuesday and it was brought to the cac last with the changes that we are making and proposing to the board of supervisors. Because, that is what we will have to do next. In month on october 20. We order to do any changes at the magnitude that we are talking about, we need to go to the board of supervisors and get the underlying legislation change so we have the authority. And so, we are proposing is part of the next steps to work with the City Attorney to will continue to monitor and finalize ordinance changes evaluate the use of these and come back to you in october with what those particulars are and we would be on a schedule then and we Innovative Strategies to would meet with the board in engage with the the latter part of this year and hopefully be in a position to be able to implement the changes in january 2017. And so, the next gosolarsf year we would stakeholders. We had an open house and our powers subcommittee had a meeting like to implement those led by our district 6 representative mark connors. Changes. That is the end of my presentation im happy to lastly, i want to thank answer any questions. On the net Energy Commissioner moran, and we are happy that commissioner metering are those rates currently in force . Did we adopt them at some point . Yes, you adopted them. I have them in my notebook and they are accessible on the website. In terms of people knowing that piece of the pie, as to moller will be joining our the weather they know what meeting next week. And that is it. Those numbers are. Thank you. Thank you for yes. One thing that i would like to see is the question your service. And that was good work. Any Public Comments on of benefits i would love to your cac report . Hearing done next item please. Item 8 is report of the get that when we are general manager. Presented with the actual resolutions and understand that so we can be the ambassadors and have our talking points on why this good afternoon makes sense. Obviously, that would be commissioners. The first thing that i would like to different for the consumers do is update you on the land and the board of supervisors. I think for use committee. This was a meeting that was held yesterday and it was a the board one of the issues resolution that was passed about the peninsula is how you make cleanpowersf as competitive as you can watershed. So if you could and having that type of come up steve and give us an program is a clean power update. Exclusive i think is Steve Ritchie with power important and i expect to be important to the board. Yes and even appointments and water. A resolution yesterday urged the puc to like that even with the audience could we accelerate some of our goals with clean power and solar by combining them with either jobs are projections or renewables. Then, potentially we could authorize the resolution. We provided info to the puc procure Additional Energy more quickly. I dont know if theres anything in there that we could lift up. I think one of the things that was brought up at the stakeholders meeting was the fact that they want us to be cautious because of super green will satisfy another percent of gas free energy and then the reluctance e of adding solar on top of that and we could get some education on that if you have a moment . We have some bill analysis for folks that are considering solar on their roof and we were able to demonstrate that for them, which is in our Capital Program that we are working if we put solar owner with combined with our super green product they actually save money overall quite on right now. It also requires the puc to provide substantially and it was a report by october 17th important for them to combine the steps and super detailing the existing conditions of the watershed green presentation. We did hear from some of the super plan. I think it is clear to the board that we do need green meetings a nervousness additional analysis and we of is super green combined with that product. I certainly can show some examples of that in our consider that part of the presentation when we come plan. You will be moving down that path but its very back. Hard to accelerated and what thank you. Appreciate that. That be great. Super green is still great is required of the plan. The from a carbon standpoint if i want to reduce my bill than the solar part helps. Right. And the Net Energy Meeting piece of that contributes to that. Watershed does go further than that. The two year any other questions . Any Public Comment on this . Thank you. Plan does not include the funding for operating a trail budget system. We will bring that to you at the next budget meeting when hi, jason fried executive that would open and 2019. Officer for lascaux and i will just try to highlight these very quickly i just we do plan to come back to think we should very seriously belooking at gosolar sheres fno reason we should be getting to those who are staying with the commission in 2017 with a plan review and we plan to provide an overview of the watershed trails plan and this was provided at the memo of your last meeting. We will come back in the near future at your next meeting or to. I would be happy to answer any questions that you might have about that but i think this is very significant for us as the puc. So the plan would pg e and i think that you accelerate the process . Will slowly slip away from seeing anyone whois not a it would implement the low Income Customer getting those funds but if youre watershed plan. Not a low income you should has there been be about super green price. Communication with this the little bit left of board with this plan . Electricity that you might by you still would need to there has been discussion have solar on your roof. We and there are commissioners should be creating a Sister Program for Energy Efficiency and e vehicles and thathave given us the access. Several types of programs that are similar to gosolarsf and get people i just wanted to inform you that this is happening. Trained on how you get trained on this type of energy and i think without although, it is not on the having it come from the Power Enterprises budget agenda so you may not want to discuss it as much. We itselfyou could be looking at money from the state and are doing whatever we can to make sure that whatever is adopted is consistent with the plan. You will let the there are funds you could commission know if theres apply for and i guess those funds you can get on the federal level. I dont know. I havent looked on the federal side but if you anything additional . Guys got really creative you yes. And, we will provide that could work with the other programs and they cut gets you not only to solar panels to the board. Any other questions commissioners on this . Okay, but all of these other angles and now youhave all thank you. Please keep us informed even if there is no action needed. Now we will have given this Affordable Energy from all these different places and now we dont have jobs coming from one different update on cleanpowersf. Place but from three different places. From good afternoon, commissioners we are years ago, we know who they are and they should be an easy sell. The harder part currently serving 300 for them is its going to be locations and we have an opt a matter of them being used to a smaller bill by now but hopefully a lot of those customers should be in the super green thing and you get all of your energy from out rate of 1. 9 and not 100 renewable and you can last year was 1. 8 so weve seen a slight increase but do those things on your inside encourage you to move forward with gosolarsfand we have the and no harm no foul opt outperiod that has concluded. Are super green [timer dings]support this program. Thank you. Next speaker and and green are now down to 6 . So we have acquired some of them as well. Kelly please hican you please introduce has approved a contract for yourself . Through go solar sf we renewable energy. The have managed to grow the careers of a lot of individuals. 50 of our crew leads our Workforce Development and recently our first gosolarsf workforce Customer Program notification is being sent out in batches. The first two batches have gone out. We are planning on enrolling about 73,000 service locations. So, i just told Development Higher the came you that we currently have 7300 a so this is a big step through door andwere able to for us. About 8000 of those buy a home with gosolarsf. So now the state is saying that we need a better and more robust low Income Customers of receive them so far and weve received 49 up out and 53 from super green in that process. How many again . Component in San Francisco was already on the end guard so you guys are already ahead of the game and it is fun to see people playing so out of those 8000 we catchup to where san got 49 opt outs and53 francisco is. I support cleanpowersf and integrating gosolarsf into it. I have concerns that the bill savings upgrades. We are currently planning our spring enrollment. We are currently planning on doing that in may 2017. We are meeting savings anticipated are actually accurate. I would like to see some data. Regulatory requirements that we are working on and one is to meet adequacy requirements and the other is to meet a long term that i would like for us to look at and see if that is going to be an impediment to future adoption and to people actually being able to really realize the savings that they expected that they would. So, that would be something that i would like to look at. In terms of distributed generation and resiliency of activity requirement and that is for Renewable Power the city adding storage for for 10 years or more. We are making more progress on those. I dont have any concrete steps but i will for the next meeting. Battery backup power is very on the regulatory front i smart. We saw and hurricane would like to discuss one sandy [timer dings] we saw activity that we were engaged in and that was the few people that had power about the Diablo Canyon that the few people that had generators can use their generators because they couldnt get diesel in. It radiation plant should be was the few people that had solar and had battery backup. Retired. We believe the plant should be retired but that is an important thing for us to think about when we think about resiliency in the city and distributed energy power and the ability to have power when [timer we also believe that cca it just like the cleanpowersf dings] the inevitable hurricane happens. Should be procuring on thank you. I was glad to see that up there and im glad that you are tracking behalf of their customers and not pg e and those that diligently. Any other supply choices should be made by the local agencies comments on this item . Commissioners, hearing none. We look forward to october when we hear more. Thank like yourself and with community and part. We are also asking pg e you very much. Next item for a request for cost please. Item 12 is to adapt the recovery for resources that management policies and will be needed not now but procedures of the San Francisco Public Utilities before the 2025 deadline where diablo will be offline. Also we are looking for commission. Eric sandler, cfo and approval for new Energy Supply plans and we are arguing that that is the process that should be used for any needed resources to assistant gen. Manager of business services. This item relates to what i referred to previously the make up for diablo for pg e customers. I am mentioning this because this is a big ticket item and it is also likely to draw some press so i just wanted to make sure that you know where our positions are with that venue in the california management policies and procedures of the commission Public Utilities commission. Which guide all of our activities. We establish in their filing, pg e the policy were talking about some amendments to the policy. We established in march 2004 and updated it regularly since then. The projects how much load they Debt Management policies and should leave as their procedures are consistent responsibilities and become part of that caseload. They are suggesting that in 2025 a little over 40,000 kwh per year will be served by cca. With gfoa the Government Finance officers associations best practice and it covers the types of debt that we issue and the to put that in perspective alteration and approval process andi will also go that is about 19 more than clean energies. How much was that . So over the disclosure issues and we have a list of items here. That would be 34 tw hours. There aremultiple it is a lot. That is my benefits regarding the way of thing it is a lot. That service is territory types and purposes of the why . Policy and multiple benefits that is not San Francisco . For the staff in this process. No, no, no. That in this review we are something would San Francisco will be serving. We will be serving a fraction of that. They are recommending ascension only three types of revisions to the policy it relates to the board of supervisors arguing that only a portion of that should go to them authorization and the disclosure practices and the and also an investment with the op low to keep it in refunding criteria. When we first started this process market in that process and that would be 100 per we sought debt authorization through the board of supervisors and the gigawatt hour. Commission delegation of transactions at the time of [inaudible] youre anticipating where capital appropriation is this is going but part of what pg e is doing is asking approved every two years. And so, that is a california puc to pass on recommendation here. And cost for all of the that, it would delegate to the commission the Authority Customers they currently to delegate individuals use have. While at the same time, a saying bunch of them of bonds and we will report back to the board within 30 days of issuance with a bond issuance report. And so, are going to be our that is the first recommendation or recommended change. The second is a series of customers anymore. Changes related to the disclosure. I think you what are they projecting will remember last spring we when theyre projecting that they are going to be losing customers. I mean, those customers will be there customers anymore. A portion of their load they will serve with went through quite a bit of disclosure training with the renewables and increasing commission as well as that their Energy Efficiency staff level. We really wanted to put that in our policy that we wanted to regularly train staff and update the commission on disclosure practices. We also added that we would make public funding on the committment. And not just San Francisco but other parts of california as well united market municipal funds disclosing organization and new Clean Renewable Energy bonds these are all essentially considered private right and pg e are arguing placements. They are not public debt market issuances. We want to make sure we do appropriate disclosure for those transactions as well. And that they will have higher efficiency costs and higher also, that we provide from a costs for their customers. And this is settlement for regular basis the green bond spending and that we issue a number of green bonds. What . This is to settle the case in addition, we have a saying this is what pg e recommendation that enhances agreed to. The charter requirements for issuances of refunding bonds. So the charter but is this for the shutdown of diablo . Yes, the shutdown of diablo and the replacement of the energy that will be needed. Requirements are that we so, without pg e have they projected how they will require issuance for these bonds and this is where we would issue the bonds and replace the power . They are saying they will have money in escrow for the call data on these bonds. Increase the power with increase renewable and increased Energy Efficiency. Do we know how much that eventually, we enhance our criteria to restrict the issuance of advanced refunding bonds to anything is . Yes, i do not have that in front of me but i can certainly get that for you. They are saying they dont want to cover all that load there is a metric that too. I can bring back to you reflects the escrow efficiency. If theres too much inefficiency in the escrow and a lot of negative the portfolio of what they are proposing between Energy Efficiency and renewables. Arbitrage and we do not want okay . To be issuing those as well. Thank you. Thank you very much. We do not want to issue them as an advanced refunding bond. We would rather wait to work closer to the call date and refund those. We think there is a it looks like cca is doing good balance between the opportunity and the opportunity cost. So, those what they are supposed to are really the series of recommendations on the Debt Management policies. I am happy to answer any hopefully pg e will follow suit and do what theyre supposed to. Mme. Sec. , can you please questions. I think that is excellent and i will move approval. Second. Any Public Comment on this item . Hearing non, all call the next item. Those in favor say, aye. Opposed, nay [chorus of ayes] the motion carries. Thank you very much. Next item they have been doing excellent work. Commissioners, i think youre also bringing up good please. Points about the cpuc i am item 13 is approve one not very concerned with how they were performed based on past or more credit agreements with Mufg Union Bank and project of ccas. This well be a problem not just for current ccas but future ccas. Authorize the credit agreements and all related documents associated with the transaction. When you look at how much energy they will be losing you can almost make the argument that you dont need eric sandler assistant diablo anymore but for diablo that is not the problem. The problem is general manager and cfo of that for the renewals that are intermittent in nature, that is not a problem for diablo. That means you dont need a plant like business services. Dsrf is diablo anymore. We need to make sure that we are and i know that your staff is doing this already is just making sure how those procedures are being handled the Debt Service Reserve fund and basically this is because if they are trying to recoup charges they could be doing that for a plant that customers already been to provide Payment Security to bondholders and it can be charged for. But just keep funded with cash or credit your staff on this plan. Agreement and currently yield less in investment earnings. Than interest paid or bond. Essentially can be funded in two ways one with cash from proceeds with the thank you jason. Any bond issue or can be funded other comments on this item . With a letter of credit from a highly rated bank that basically says that in the event that you dont pay your debt service we will pay it for you and then you seeing none. Next item will pass back so there are please. The next item is the essentially options on how report of the capital to fund a debt Service Improvement program reserve. In the past the relationship between taxexempt people and tax Quarterly Report. Exempt rateand you could fund that Debt Service Reserve and invested in good afternoon. I like to briefly touch on the longer service taxable highlights in the last quarter in these areas and investments and it take you longer than it cost to bar then also budget and that moneyand you could earn schedule issues that are in arbitrage so often times the report and then conclude with a couple of comments. Firstly i like to highlight that mountain becauseyou canearn positive tunnel there is six things happening. One is that the tunnel has access arbitrage and the market has changed a bit and for issuers improvements will be on their way and you addits of very high credit quality you can get away with no longer actually having a Debt Service Reserve fund have been added and they because its costly. In 2015 we made that change to willbe Going Forward to. Our that insurers so that we no longer have that reserve. Finally, the longerterm project mountain tunnel improvements is moving forward as well in the planning phase and that means recent conclusion of the phase for that program. Are and standing water bonds have cash funded debt that kind of addresses mountain tunnel. In terms of other projects we Service Reserve funds and successfully completed the crossing of the kv transition liens against what were doing is using that money to invest in our capital plan. This was suggested in our budget that we proposed you and this was mount pedro we we resulted adopted by the board were coming to you now to execute in some bid projects and we that transaction. Essentially, the cost of the agreement is much less than the negative arbitrage and we can use that money to have approved two new fund negative arbitrage and we can use these monies to projects at both kirkwood and home powerhouses and fund capital projects. The best terms came from also the moccasin pin stock Mufg Union Bank and the project using pin stocks for total commitment was 87. 4 million and the term was for six years and it may be extended for three years and the annual fee was. 45 or multiple available funding. Finally we had a request for qualifications issued in july. Shifting to the program 479,000and any drawl repaid within three years to m usg the cost of the wind fire program is about 20,000 under the baseline budget. The other good news is that we submitted about 80 of and the considerations are if the bonds outstanding at the end of the term the the eligible insurance agreement will need to be when you replace or met either with a security reimbursement packages which is about 5. 7 million. So, that is moving forward. Policy or cash. Further to that we will have that is a great rate. A number of eligible grant reimbursement packages and so that is a great through through the and that rate and i would be happy to is where we will return. Answer any questions. It looks good to me. Are there any questions . Is there a motion . This rehabilitation is i motion. I will second expected to be about million Public Comment . All those in favor say, aye. Opposed, nay co [chorus of aye [chorus of ayes] dollars above the approved the motion carries. Mme. Baseline budget. Also we sec. , he please read the next item. Item 14 is to authorize will be looking at the powerhouse project and the d2 expansion on that work. For the cherry dm out the issuance of up to 1. 1 billion of 2016 series abe water Revenue Bonds. Works participation we havent included the construction budget in the current baseline and that will be included once we have the design finalize. Eric sandler; assistant gen. Manager of business and then, just a couple services. Math have the other notes that low or cherry aqueduct will be slide please. There were going to discuss the authorization issuance of water Revenue Bonds and refunding and new money complete after a little bit more discussion. We are waiting for a response from Land Management before we can really move forward with taxable under the bond. The first would be the authorization and the that work. Finally, i refunding of 1. 1 billion mentioned that in terms of debt portfolio. So it is inspection and repairs, the second phase of the interim repairs are expected this be almost a little more than a quarter of our outstanding a about six months after the longterm fixed rate debts. You can see here the various a series of bonds that it will be refunding. We plants shut down. That is conducted an rfp and we made a selection and j. P. Morgan is our lead underwriter and the present value settings all i have. I be happy to answer any questions. Can you give us timelines . Can you give us timelines of 121 million or 14 of for items you talked about that are i dont want to the outstanding amount. The say overdue but i guess they are. Which projects did you want to know about . Size of the transaction the all of them. Savings would be at current okay so there is a forecast scheduled extension Market Conditions and we on several projects mainly hope to know something in the lower cherry aqueduct it late october. We are is about a year behind schedule due to right away looking to get rate certification for these refunded recent bonds. The issues. That would be 2017 . Sponsors authorized by the charter which authorizes the issuance of refunding bonds so, yes. So, we are planning to rebuild the which is charter section construction january 2017 and issue a notice to 9. 109 and it would authorize receive in july. The bonds that you see here. And so, what is completion the second would be series 2016 c and this is new money to show me see completion taxable bonds. Essentially, just a little bit of isif you just give me a moment i can look that up. Background, essentially okay. The completion would private user for taxable debt and we have to that would be june 2018. Okay. Be considered taxable use and weve refunded taxable and then, with respect to the other projects that i mentioned, mountain tunnel commercial through the taxable commercial Paper Program and it will replace inspection and repairs, that with taxable debt and will provide some additional phase 2actually dan, do taxable funding required for you know what the completion date is for the repairs . I wsip. These bonds were can look. Authorized by the board of well, you said it was set supervisors ordinances and back six months because of the inspection . Conjunction with the capital plans. Heres the sources and uses of funds for the refunding issue. It is that was mountain tunnel. So that would be december 2019. Okay, then how aboutwe have two other projects. Almost 1. 1 billion and yes, while the san joaquin these would include escrow pipelinewell, i mentioned deposits for refunding bonds cost of issuance and of course the underwriters to overruns and those were discount for the services. The two scheduled overruns. Okay, and what completion as you can see we have date we have for calaveras . Bond proceeds per amount of so calaveras stand that is 295 million with a total commercial paper pay off of the wissup that is not part of my report today but id 239 million you can see 26 be happy to answer that. Million from the wsip im sorry. That is scheduled for project fund and 29 million 2019. With the capitalized Interest Fund cost of thank you. Any other questions . Any Public Comment on the hetch hetchy water and power capital Improvement Program . Issuance being 400,000. This is a form of the transaction documents you can see the preliminary official statement would be the disclosure describing bond terms and condition of the water enterprise. Item 2 would be the supplemental endeavors. The 21st 22nd and 23rd and that is an agreement between the sfpuc seeing none, next item please next item is the wastewater enterprise Quarterly Report sewer system Improvement Program. Good afternoon and investors. Item 3 would be the notice of intention to sell and that notifies the Financial Community of pending bond issuance and item 4 is the official commissioners i am karen kubikthe assistant manager notice of sale. So some questions and of the wastewater enterprise answers. Here are some questions and answers that i Quarterly Report sewer have set forth and discussed system Improvement Program. We have one to report and. The first would be the purpose of the issuance and that is to refund previously this is the use of 1550 that issued bonds to the ratepayer will not be for sore ups savings and new money would be to finance previously authorized wsip projects. They will be for griffis pump station. We were the structure of the bonds looking at 2017 now are would be refunding a new money for senior lean and longterm fixed rate that. The method of sale would be refunding bonds sold on negotiated basis for and this word avoid rate increases in the future. And looking at 2018. So if i can have the slides please. New money would be so there are five that were given awards we have a few competitively respective the bill. And the bottle place Infrastructure Projects heading out the door and we will be repaid from the net have three green revenues of the water enterprise in accordance with the water indenture. Infrastructure projects and three improvement projects those were the key disclosure issues. If you have any additional questions and eight that are complete and one in closeout. You can i would be happy to answer those were the City Attorney may be able to answer any see the percentage complete legal questions you may have. Can you turn the our on the low side still slide please. Finally, here is the but this will be picking up and picking up as we get into 2017 and 2018 as well. Transaction schedule. As here just to give you an idea of where some of our you can see, we are meeting with the commission today we will be meeting with the Program Projects are. The investors the week of october 3 and we expect to green is construction on our bar chart. I will do a little deeper of a dive on close the refunding bond on the projects i know youre interested in. As well, we have our early october 17. New money implementation projects we actually needs to go to the have three and construction board so well be taking that to the board of and to our in the works and supervisors on october 25. Pricing on november 14 and closing on november 20. These are the recommended about 2018 mid 2019 we will have all of these built, running, and monitoring their performance. So, this actions to authorize the is really exciting. Issuance of the refunding on the treatment plan bonds and authorize the side, this is a two marquis issuance of the taxable projects that we spent a lot of time talking about. The first is headworks water Revenue Bonds and and headworks is at 68 at approve the form of related bond documents and to authorize the general manager to sell the bonds in one or more series on a negotiate basis and to 358 million. And we are delegate a general manager looking at the construction to authorize to ward the being completed by february 2017. The second is biosolids bonds. Ill be happy answer any questions. And it is in the current phase design at 35 by the any questions . End of the year. And we i make a motion. Anticipate completion to be i second. Spring 2017. This is our one any other comments . Seeing none. All those in favor say, aye. Opposed, nay. [chorus of ayes] full Environmental Review that we are doing in this process and construction is on track to begin in the this motion carries. Any Public Comment on this item. Summer of 2018. Thank you. I appreciate a lot of time is being spent on the project side to your support. If there are no other comments, all those in favor say, aye. Opposed, nay support our project teams. We had one from [chorus of ayes] commissioner courtney. It is the motion carries. And a shame he is not here he did an excellent job and it secretary, please read the next item. Item 15 is approval of really helped to implement our project. We initiated item 15 is approval of amendment number 12 certified green bonds to Agreement Numbers cs 294 d. Eligible projects in sustainable Stormwater Management one eligible projects. Staff has been working on a National Basis to help design a National Green infrastructure certification i move approval. I second. Public comment. Program for contractors. And seeing none all those in favor say, aye. Opposed, nay [chorus of ayes] this will be used nationwide. However, there are many the motion carries. Mme. Sec. , please read the next item. Item 16 is approval of amendment number 12 Agreement Numbers cs 329. Challenges with implementing a Capital Program this size i motion and keeping us going and staying on schedule and this i second keeps us on our toes essentially. I just want to highlight our concerns or any comments . Some of this concerns we may have because you can help guide us through these great thank you. Any further comments . All those obstacles. In favor say, aye. Opposed, the first is funding. We nay speak caries the motion carries. Will need to see this go next item please. Item 17 isauthorize the through. We also have the storm rate and there have been some shifts by the general manager to negotiate and enter into a contract state revolving funds about for an amount not to exceed half of the amount of our 10,585,800, with the sole qualified, responsible, and responsive bidder, ranger pipelines, inc. , as permitted under San Francisco administrative regular bonds. The state has code section 6. 23 c 2 ; and, upon successful negotiations, approve the plans and specifications and award contract no. Ww638, gotten a lot of interest by griffith yard improvements, for an amount not to exceed 10,585,800 i move approval. I second. Public comment . All those in favor say, aye. Opposed, nay [chorus of ayes] the motion carries. Next rewarding state involved item please. Land funds. Many of our projects will do extremely well in those areas. But we item 18authorize the will keep you posted and deputy general manager might call farland is went up there to see the staff through this. The next thing is staff general manager to accept and expend 1 a grant awarded by the Water Research foundation for an retention. What is amount of 100,000; 2 a happening is there are so grant awarded by the Water Environment Reuse Foundation for an amount of 100,000; and 3 a grant few peopleare moving from from the u. S. Bureau of reclamation for an amount of 200,000; and to negotiate and execute a sole source contract with carollo engineers for up to 600,000 to work with the sfpuc to carry out thepilot purified water project. Is there a motion . So moved. I will second. Public comment . Seeing none. All those in favor say, aye. Opposed, nay [chorus of ayes] the motion carries. Next item please. Item 19 isauthorize the general manager to request approval from the board of plant to plant. One or engineering side we have supervisors to accept and expend Hazard Mitigation also lost a lot of good grant funds from the federal Emergency Management agency engineers. Those folks for an amount nottoexceed 404,208. Is there a motion participate with our teams, they review plans, so thats going to be challenging. So moved second any Public Comment . All those in favor say, aye. Opposed, nay speakers the motion passes. Next Land Acquisition and site item. Item 20 is toauthorize the control, i know we have talked about this a lot already as well. But obtaining the asphalt plan has really helped a lot and weve had the team helping general manager to execute, on behalf of the city and us here county of San Francisco, an interconnection cost responsibility agreement with the San Francisco the next challenge would unified school district; and a third party nonexporting customer generation agreement with pacific gas and electric company, pending approval by the San Francisco board of supervisors, i will move approval. Be shut down then scheduling. We have had a i will second. Public, . All those in favor say, aye. Opposed, nay speak lot of salt water coming into our Collection System when the salt water comes in [chorus of ayes] the motion carries. Next it is basically on a toxic item. Item 21 isauthorize the level. This has high sodium and high pdf and this is the general manager to negotiate and execute a Reimbursement Agreement with Mission Bay Development group. So moved second Public Comment . All those in favor say, aye. Opposed, times we need to shut down the plant. Additionally, we have electrical nay [chorus of ayes] vulnerabilities. So, this the motion carries next is a concern, one with people that are experiencing an other than that the item please. Item 22approve the terms infrastructure is aging very quickly and there is some other problems that will make this more difficult. Shutdowns are required for all of our projects at the plant. And conditions and authorize the general manager to seek approval by the board of supervisors and mayor to execute a 25year amended and restated lease, with an option to extend the term for a period of 25 years, to the pomeroy recreation and rehabilitation center. On the scheduling side, so moved second Public Comment . Seeing none. All those in favor say, aye. Opposed, nay [chorus of ayes] the motion carries next item we are working with the board to have this up and item 23 isauthorize the running by october and were working with the board to have this done. General manager to execute a First Amendment to a the economy is good. The memorandum of understanding dated february 13, 2007, with the San Francisco municipal transportation authority. So moved second Public Comment . All those in favor say, aye. Contractors are busy. Making sure that we have opposed, nay. Full qualified contractors that can be responsively [chorus of ayes] bidding and having interest in our work and we are the motion carries. Getting a great deal of help from external affairs and there have been training events and help people to get certified and ready to next item please. Mme. Sec. , produce this. These ongoing 24. Approve the terms and events will be necessary so we know when our projects are coming and they can prepare and team up. Staging and security is also an issue. Where we can lay down and make sure that the conditions and authorize the general manager to execute a purchase and Sale Agreement and related documents to purchase the property located at 6571663 rollins road, burlingame, california, from clemco for 9. 1 million, plus closing system is secure. Will be costs; so moved working to identify our second Public Comment . All those in favor say, aye. Opposed, nay [chorus of ayes] the motion carries. Mme. Sec. , next item please. Approve the terms and stage security program. Meaning, during our construction process, we are operating that plant. There is other work that tommy needs to have done. There are deliveries and there are now like 20 different conditions and authorize the general manager to execute an exchange agreement, and any related documents, by contractors on site to. So, and between the united if we have time, theres a States Forest Service and the city and county of San Francisco, through the san list. The next thing that francisco Public Utilities commission, for the acquisition of approximately we talk about is technology 25. 2 acres of Forest Service land near camp mather in tuolumne county, for 115,000. So moved and network support. We second Public Comment . All those worry so much about the in favor say, aye. Opposed, nay [chorus of ayes] the motion carries. System that the other parts our next item is Public Comment and we will move on of the plan our old two. So we can operate our plan to close session item. Would you like to move those prior to Public Comment . Software so they will be item 28 isconference with some it challenges in our futur Legal Counsel pursuant to california Government Code Section 54956. 9 d 1 and San Francisco administrative code section 67. 10 d 1 stakeholder outreach to date weve had 50 state fairs and 93 workshops weve done 200 stores with 3500 attendees and 95 presentations 1900 ipad surveys and 4800 metro quest surveys. Upcoming topics so this is how we can look forward. We are back in open session. Items 28 and 29 were settled in open session can i get a motion as to whether or not to disclose i make a motion not to disclose i second all those in favor say, aye. Opposed, nay the motion carries we made a motion not to disclose. We have the Southeast Community facilities update i would also like to make on october 11. Sip a motion to be close the week of thanksgiving. I am not sure how commissioner courtney would lean on this communications will be on one. Would you like to talk october 25 we have a about the december meeting as well at that time . Construction manager general contractor meeting on december 13 c and we have lets look here. The 25th is a sunday so, it is the flooding andbsip and Green Infrastructure monitoring in 20th . It would be december 20. That is not the second. The near future. Not to forget commissioner kelly is not here but we are looking to pin the workforce people isnt it the second and the fourth . Down so we can complete a im sorry december 27. So, the proposal is to cancel the november 22 and that december 27 meetings we . If there is no objections can we just proceed with that and notice it presentation. That completes this presentation accordingly . But im going to stay here yes and also some cancellation notices at the for another presentation but i would be happy to answer time any other business . Seeing any questions. I like that. That is really nice. That is the kind of thing that if you none meeting is adjourned. Dont want to take ive into [gavel] the meeting will com the Quarterly Report but one suggestion that i have is that one the chart ton the data chart if you can just add that one so we have that on our schedule. Great, thank you so much for the report. And then next item. Public comment on this piece . Hearing none, next item please. Next item is item 8d; Lessons Learned wsip to ssip. Good afternoon i am here to discuss the Lessons Learned from wsip to ssip. First i will discuss the topics that we will be going over today. We will discuss on the budgeting and contingency side we will utilize historic informationand we will apply this to the change order rates for what we can expect at least with contingency. We will be looking at what the citys economic factors are light and that enr. With contingencies when we sit with that project managers we go over there project schedules and scopes and the risk of their work and we look at the top risk to make sure that it is conservative for and asked. For instance, if it is something that works close to various risk for that project may have. The next slide is project delivery. On the top in the light blue are the phases of any typicalany project order. This is vision zero that we are running. Plan, design, construction or committee for thursday, operation. Oh, that is september 15, 2016. I fuzzy. Let me adjust that a apologize in the delay for the start time. Just finished a little bit. On the top you can see gao committee meeting. Im the analysis with the supervisor normal yee and joined by david campos and supervisor kim is unable to engineering phases. Where join ust you see a star and you can really see them on that which is good. But there is a Steering Committee meeting. That is when the Environmental Review folks come to management in the Infrastructure Bureau under atm and we reviewed the budget, and the status and any issues that may come up. On the bottom were looking at constructibility. We have reviews west [inaudible] we have a scope freeze, but the intent of the project is the intent of the project and the scope is the scope that point. Let me jump in at that point. The scope freeze is usually important. Lemay stefan ray here. This also takes work on part of operating department to do that in an intelligent way. We see a lot of scope freeze items come through here and if you nail it down it just saves everybody a lot of heartache. Waste water enterprise has taken an extremely adequate amount of timesitting and looking at what are our buyouts. I think it is helpful to pin down operations and get everyone on the same team. Also, when we are out on construction and we cover something and it is an opportunity and that is something as well. And, that is going to happen. If we had only spent a little more time looking at the drawings and thinking about it we couldve done that or we could have gone on site and if i cansuggest if you can avoid that stuff. Next we have availability as well as a thirdparty estimate. We have quality and management operations and value engineering and at the bottom you see we have cost and schedule controls and we have Risk Management. There is a milestone that we are including in all of our project schedules that 35 . Each project has to have gone through a project Risk Assessment and that includes identification of risk and identification of mitigations strategies. Im going to go through these risks when i go through the next items. Wsip has special conditions and special coordinations re usinga control system where all of our customers are having the documentation and the existing information and working off of the same platform. We will also use a cmis system. The one used previously will be replaced with something called unifier. That is the same element as one we are in construction. So were using these drawings and people are working off of the same documentation we believe that will be a big help. Change management just like commissioner moran set is changing and weare going to be identifying these early as builtin in existing conditions during design to reduce changes and we will meet with operations and maintenance for a scope of occurrence at 35 and have regular check and. For trend management we will look at the schedule and Budget Trends and define approval process and we will look at budget dates and costs and if there is a possibility that something will change, we want to know about it. We want to talk about the risk profile and the Risk Mitigation strategy in those meetings as well. That is where myself and my deputy can set down with the project managers and the project control staff. Bidding; we are learning from wsip from the Design Projects that they use. We are looking at the selected qualification that worked well on wsip. Will also work with the construction manager general manager for biosolids and headworks projects and progressive design builds for distributed control systems project others will be changed and rebuilt over the next 15 years so it has to be able to work in a very fluid situation. Financing scheduling and reporting; well, there are several items on this. I mentioned we are doing a very comprehensive financial scheduling of reports. We go three monthly basis you see the quarterly basis. We have costs loaded schedules and theyre all in the program called p6. We do have a monthly project review and a Trend Program and there is a controller led transition to upgrade Financial Software and in addition to replacing the famous sfpuc well all be replacing solis and then there is a lot happening on that front apparently it has to match up at the end of a fiscal year. We have several members of the puc and the launch of the new system will be peoplesoft Financial System and that will be july 2017. Finally, we will be doing a Risk Assessment looking at project specific assessments for specific risks define with those. All of the projects will be using Risk Management and they will all have their own risk register and that is between looking at cer at 35 . Where using a program called active risk manager and there is a Software Version upgrade for that as well. The material quality; this is a third party for supplier quality surveillance for system. This will develop clear specifications to identify quality requirements. We send that the quality surveillance to our contractors and we work with them to identify any issues we might be seeing. And we discussed this with our contractors. For shutdown planning and management; articularly in the southeast we will have some shut down. A lot of these have shut down procedures and the shutdowns will require a specific team that are really just tracking them. Shutdown is when we will be able to bring on equipment and activate certain projects. So, the Detailed Planning that is part of this will include Construction Management or our project staff as well as operations and maintenance so they will know to coordinate. They might have Water Quality issues or vulnerabilities that theyve seen recently that may push shutdowns out. This is ones that will take detailed formalized procedures. We will take multiple projects to identify when we can benefit during those periods. This is one that keeps me up at night. Hen of course, there is the communication things sometimes engineers are not so hot at communication. My deputy formulaes this as part of my regular status meeting so that we could get these to be utilized by project managers so that we can have more successful projects and this is a Continuous Learning experience for project managers as well as project engineers. We are trying to make an effort to over communicate this so that we can benefit from the lessers learned in wsip so that ssip can be an even more successful project. That concludes my presentation. Id be happy to answer any questions that you may have. Thank you very much. We had to really step up to a program at this level and put all lot of reliance on this is such. We have one project manager overseeing all things southeast. We are using the Program Manager for quality and for scope consistency and to review all costs and schedule issues as well. So we are following the same model as wsip as well. Any Public Comments on this item . Seeing none next item please. The next item is 8e; the review of the sewer lateral policy tommy walla. Good afternoon commissioners tommy walla, assistant gen. Manager for wastewater. We will be talking about sewer laterals. Today bringing forward this item for your consideration we have learned a lot in the last three years and we have some data that we have learned from what exactly is the needs of the system and how much do we want to replace. So these are the facts and the issues and the challenges on this very first slidewe have about honor and 60,000 sewer laterals that equal about nine or miles of laterals. The average age of the sewer lateral is greater than 70 years. We have ordered that are pre1960 with mortar connections that are more likely be compromised and we have 50,000 sidewalk trees that have been added to our city over the past 30 years. If you have a compromised lateral it is typically at the joint and the roots get inside and this is usually what happens to those laterals. They need to be either routed outit is hard to route out Something Like that but normally they would compromise the joint with that particular lateral. Here is a side view of a lateral. From the face of the curb to the sewer mains that you see there this is what we are responsible for. And, the other side from the curve towards the house or the residents this is what the homeowner is responsible for. This is what we learned. For the last three years as a threeyear average weve spent approximately 34 million as part of our sewer main replacement. If you remember our target was 15 to 17 miles and about 34 million per year. On the top you can see about 15,000 for the lateral placement that goes from the curb to the first. And the repair and replacement of the cost thats responsible by the Property Owner is about 3500 for replacing the lateral. Before we go to the recommendations, the other thing that i would point out is that there is a lot of unknowns that when there are certain occasions when we go out there and wetake up and we relied our laterals are not even connected to our sewers. And so, we are looking and we had some consultants go look around and we found that when they were to sell property they would mandate that the homeowner inspect the laterals. And, it was about 34 of those laterals that needed to be replaced. Because, they were damaged or leaking. And so, that is something that we havent addressed here because there are a lot of unknowns. And so, we are very concerned about that. How does one know that their lateral has to be replaced . So for example, if it is clogged that is when the tree roots get in there and the they clog it and thats when the tree rootsare to the curb that is when we would urge the lower lateral and see if there is a problem or not. If her example their roots in there and they cant, you know, you know find some way to get out the roots they would have to go in and placed the lower lateral and that is when the homeowner is responsible. Typically, if this letter were is clogged then we have to say wait, youre responsible for the upper and we are responsible for the lower, and its not always clear to everyone whose responsibility it is. But, thats if it is clogged. Sometimes were seeing the flow is running because what happens is, as the roots get in there and they start looking and they start deteriorating or they have a lot of material surrounding material going into the pipe and so, you start seeing a void around the pipe. And then, it disconnects and you have a septic type of situation that we notice sometimes. And so, that is why we think it is very important that we inspect these laterals quite frequently. As far as the delineation of responsibility at the curb that exists by virtue of ordinance or what . 1977 was the first time that we actually started charging residents for sewer rates. And so, as part of that, because its in the right away underneath the street, we didnt want the homeowners to come and actually start digging up the street to fix the laterals so the fee while, it is a little bit complicated, while the homeowner is responsible for the maintenance of the entire lateral from their house all the way to the main, they cannot come and do any repairs past the curb. So, they stay on their side. And, if we discovered or they discover it then we go and repair or replace up to the curb. So you say there is a prohibition of the homeowner going into the street basically;is that a function of our policy were our rates or something . What establishes that . Im not really sure. Maybe josh would know. Hello joshi do not know off the top of my head but im sure i can find that out for you get back to you on that. Thank you. That is why we made the policy and in the absence of policy would be guided by something, by ordinance or rate, or something, and so, it is important to know what that is. So, if we go into the street, do we pay for it and not the homeowner or the Property Owner . We pay for it. Beyond the curb, whoever discovers it, we will cover it beyond the curb. Any construction required in the street we are responsible for. So, that is sort of the interpretation that we have been having. One of the things that we want to look at is do we want to change that because it is really confusing . I know that in berkeley, berkeley is the home bilateral than the home is responsible for it. So we need to think about how to address these issues. I would like more frequent inspections of these lines because we have so many old sewers going up and down the streets but there are a lot of laterals and you have a new development and you have a lot of stuff going on and folks are not even looking at their laterals. They are not even upgrading because theyre building a bigger house or becoming more dense in the city. So that is why i really feel we need to talk about one, the ownership, and to the recommendations that would go along with what were recommending. Sure. We had a lot of cities like ours both for combined systems and separate systems and a lot of cities are charging for lateral separately. So, this is the recommendation. To consider a couple of them, one is an Insurance Program so to speak and one is that when you buy your house just like at the pointofsale just look at that like you what a past inspection warehouse inspection. They will look at that as well. Some of these things are what other cities are doing. A lot of these are just to avoid their inflow from groundwater to the flow of the system. They are forced to do some of these programs and put them in place. I am curious about whether the people that come and cure the line is a Maintenance Issue and if the issue gets out of the box or whatever you call it by the curb do they know the responsibility chefs . It is pretty confusing. I had some personal experience with that. Me too . The first was that i had some backup from storm events and also was we had some back up into the yard and i called the router people and they diagnosed everything up to the curb and they pointed out that there were problems beyond the curb and they were clear that was the citys responsibility and they told me that. They also said if you want to get it done today we would be glad to do it for you. So, theres some of that going on. But they were very clear about it. At least that was my experience with it was that they were very clear about it. Yes, that is one of my concerns as did make sure that the contractors and providers of that service are clear as well. And my other concern is to the homeowners as well. It does end up being a curb issue and not a Maintenance Issue and the potential contractor is there saying, i will fix it for you and it will cause you xyz when it is not the responsibility of the city. I dont want to add more complexity but i will, but a lot of the street trees will be contributing to that. Now we are leaning towards making all of the trees be the responsibility not to the homeowners but to the city. There a lot of things that people just dont realize like the sidewalks. There is a responsibility the Property Owners to maintain and people know that until p pw or pw go up there and they say you are responsible for maintaining it. I dont want the program to be that confusing and thats why we want to spend a little bit of time and talk about how we can make it simple but also keep in mind that we are raising sewer rates and do we want to give this additional responsibility to the homeowners that responsibility in this new rates. This ties into the rates. We dont want to raise the rates and then there by the way youre responsible for all of the rates that we used to be responsible for. That is important as we look at this from the big picture. Inspection pointofsale is an interesting one. Now, i am in a situation and i do not know how often this happens, but my laterals connected to my neighbors lateral. So, when mine backs up, when mine backed up the was a question as to whose responsibility that was in luckily we got along butnow that houses selling and i said, you better check your lateral because something might happen what they might do it because theyre nice but what might end up happening is a dispute around responsibility. So, i dont know if there are shared lateral questions too . Right now, every building should have their own lateral but what happens is sometimes if a sewer is so deep that you have to chase the grade. Sometimes, it can be so deep you have to go uphill to catch instead of digging way down so sometimes you might have three or four laterals just tie into cheese from the same spot. And so, we have seen a lot of stuff that we probably wouldnt have come up with. That is why we want to study it and do an rfp and get an idea but one way that we could do this is if you make sure that at the point of sale that it is inspected for any major renovation, that should trigger an inspection that may not have been inspected for before and then require an Insurance Program that they pay in that could be a win win for everybody. Okay, im going to pause for this moment. I dont know if you have completed but we have a 3 oclockmy clock is actually slow. We have exactly 30 seconds. And without objection, it is a special order of business so we are going to be calling item number 10 and then we will ask tommy to come back up after that and finishes presentation. So Commission Secretary can you please call item number 10. Item 10 is a special order of business at 3 pm. Public hearing 2016 Public Health goal report 2016 Public Health goal report for the Public Water System and to state a letter for the resources control board documenting that such a hearing has been held. Thank you. Good afternoon. Good afternoon robert bosco the public water director. Today we will discuss the Public Health goals and the ideal, no Adverse Health effect intimate levels in Drinking Water. And, we will discuss the legal requirements and then we were asked for Public Comment on the report and submit the report to you. First we will have to consider cost and have to consider technology. So, you will set the regulatory standard at the level that you can actually detect that is in a minute. We are in compliance with all of the regulatory requirements for the past year. There are four contaminants where we exceeded the Public Health goal and that was the sonil plant. For the chromium the regulatory requirement was 10 so that is above the Public Health goal. Again, very costly to reach the Public Health goal level. Lead is something where we did see some results above the Public Health goal. To do our lead and copper every three years the last was two years and most were nondetect and some are a home plumbing issue. Finally, are the coliforms. Technically we will not get there. Typically we do not see a coliform bacteria typically this is not a Health Concern that we see. Our recommended followup is that we continue with our existing programs that we minimize contamination of the sources. We keep looking at treatment chemicals to make sure there is not unnecessary contaminants in our treatment panels. We disinfect the mains before he put them back in service for example. And we continue to work on our lead abatement activities. And we continue with ongoing lead outreach activities. In early 2000 the standards changed in 2010 and we will have all of those that are currently leadfree. We have all the comparable data on the website for the public to see historically. We also have specialized programs working with the Housing Authority for residents with low Income Housing we provided the monitoring for free to participants of the wic program which is women Infants Children for; women infants or children there are a few holes in the records that we are missing but we are making sure that we do not know the material of the services that we figure out what that is. I think the commission is very practical and we will continue to push for that. Again are recommendations are to continue with what we are doing them follow up with activities and we are requesting your direction to submit a letter to the water control board as well. Thank you. Commissioner . On the lead issue, i want to concentrate on that because i think there are number of people that have concerns about the level of lead in the water supply may not altogether trust their water supplier, that there are some issues they are but as a resident what can i do to let myself know, first of all, what lead exposure there is and what can i do about it and it sounds like there are a lot of circumstances and it may be a complicated question but that is why i ask it. First of all, you would get a test and we do that at a very comparable price we been doing that since 1994. We would come to your house and pick up a sample and that would be the first thing how do you get that . On our website we have the form you would fill it out and submitted and we would come and do that for you. There are a number of people that do watch these proceedings so if you get back to us for subsequent meetings, if you cant get back to us with the phone number for if all else fails,and you have your internet failthen you can call that number. 6506526500. Finally, we have lead Removal Services that can come in and that we also have of in the 70s had removal of lead service lines. Again, we had a Program Offering leadfree faucets at a nominal fee. And again, we offer testing for certain customers for free. We are thinking about expanding it. We have a number programs are things we can do better but we are looking into that. Do we have coverage for people that are not homeowners that would like to have their water tested . Anybody causes up we will test for that. And steve also mentioned the fact that the grand jury spent a lot of time with us over the last couple months and they liked what we were doing and they did not have a problem with what we were doing there were quite complementary in termsof what we are doing. I just know that we have a lot of concerned individuals and it be nice let them know what to do when they have these concerns. Again, they can go on the website or give us a call and we will come into that for them. Before a motion i just see one comment card they are and if there any other Public Comment cards on this item. Good afternoon commissioners and general manager kelly i am with the San Francisco authority, and in the past we have only done testing required by residence or if we had an elevated blood level in a child we would immediately test and fortunately, those tests have come back negatively in the past. But we really welcome this partnership to do some testing at sunnydale. That is one of our Largest Properties and it had over 225 units. We Work Together and agreed to target the households with children age 7 or younger. Puc agreed to do the testing at no charge for residents. We put together a flyer for the residents we actually put together or a letter for the households of residents with children under seven including the bottle and the kids and instructions on how to use the testing kit. Puc trained our staff one how to answer questions that may come upbout the testing. Only four of those households only brought bottles back for testing. We were with a letter for the residents and we also wrote a letter on how to respond any positive test that indicated a level of lead above acceptable standards, and so, we have such a small sample that we really cannot make conclusions about the water at sunnydale. And so, actually this evening, there is another rresidents meeting and there is a site getting ready to be rebuilt and it is a hope sf site and tonight the residents are coming toand generally we have a good turnout, and we were out reached to the residence and encourage them to sample. I think that it sounds that the puc is willing and the staff is willing to do this at other properties. We have the other Large Properties that are potrero properties [timer dings] i think my time is up but i wanted to thank all of you and general manager kelly and his staff are really helping out and just providing our residents with an opportunity to have the water tested and assurances that the Water Quality is safe for their children. Thank you. Thank you i appreciate you coming out today and if you would like additional testing, please let the staff know at your other site. Thank you commissioner. Thank you very much. Any other Public Comments . Third time. Hearing non, is there a motion to approve the resolution . So moved. Seconded. Any further comments . All those in favor say, aye. Opposed, nay [chorus of ayes] the motion is approved unanimously thank you very much. Now we can go back to our sewer lateral conversation thank you. I have a comment before you start. When i bought my house in San Francisco i was the youngest thing on my street, in now, in 2016 there is only one thing older than me on my street and that is my lateral. Lets just hope it is an as good a shape as you are. [laughing] i dont really know what to say about that. But so you know its not just about blocking the laterals it is about things that are complicating that. We are not doing anything outside of the norm and i think should at least explore the possibility. They all had you had mentioned the significance and importance of outreach. They all said how important that peace was. It is very important and we will make sure that we do outreach as part of this conversation. As part of the program, do you have inspectors on staff or is that something that you contract out . No, we have inspectors. So commissioner caen asked, how do you know what if your lateral is leaking . It is difficult to know. If we replace a main or someone calls and the responses to go into a house or go into a manhole across the street and look at the direction that this may be compromised in some way before they get this out. Typically, it will be Something Like mine or yours. Where something is happening outside of my house and the plumber are rejected and the plumber says im clear all the way to the trap and thats when we do our followup and we look at our main and that is the time that we look inside all the laterals. Also, when they do a replacement, they have to look and televise for the record that the laterals are good after construction. So, that is part of the recordkeeping. Part of my question on staffing and it is connected to the outreach piece,and a person might think they should call a plumber and then they might think to call a inspector from the city. They are not called inspectors but they are sewage servicers so we would come out and see. There is a form on our website that you would fill out and would say what is the problem do you have something coming out of the house or is it a trap or what have you. This discussion i think has been helpful with the issues on how this relates to rate decisions, and in some ways you can look at this as a financial issue. There is a burden of replacing the lower laterals and how do you finance that and who pays and in two will finance that and that is a big deal and we need to figure out how to approach that and how that fits into the rates and stuff and the program in general. The other thing that we have not talked about much and we have talked about a but not that much lately is the patrol of the street. We do not want people coming in and cutting into the street. We want to prevent that. If i do have to have an inspection on my house for sale, then i have to curate. I dont know if you want to give me that right. It is a complicated issue and i think it takes time to make sure that we get it right. The other point that i want to highlight is that now, we do not know what we know. I mean we dont know what we know we dont have the information and now we have a lot a laterals that are leaking on that side. So are you recommending they do an inspection . Not now but eventually. Well, that is where you get the potholes and uneven payment and stuff like that. So the next step is that you will be developing some policy recommendations . I think we talked about doing an rfp and bringing a company that does this in, and come back with several options as to how we might want to move forward. So will that be a couple months or several months . I dont know what the timeline that will take with this process once we move forward im sure the investigation will be very thorough and i am not sure how long that will take. I would say we will probably put out an rfp within the next 30 days and then you know, bring someone on and maybe take three months to bring someone on and get them familiar with the department in our city and i would say about six months. Yeah. Okay thank you very much. Any Public Comment on this item . Seeing none, next item please. We are still on my report. Im sorry. The next item is the quarterly audit and finance review and we have anthony coming up. Good afternoon my name is Anthony Holmes and [inaudible] information is provided fiscal year to date as well as the fiscal year account of all projects. The audits and assessments completed 58 projects year to date and 27 were completed 20 or in process and there are 11 upcoming. A post audit was completed and there were no significant Financial Transactions and the city Service Auditor also published a citywide contractual compliance. Three recommendations were made to improve timeline transactions with that sfp. The California State Department of finance completed to 2 Grant Administration audits 185,000[inaudible]and lastly completed a compliance audit for the new Clean Renewable Energy bonds and debt arbitrage compliance as well. Looking at quarter one and beyond in the current fiscal year we anticipate a few completions upcoming. One of the first will be the performance audits for the wastewater enterprise and also an administrative performance cited for rebates and incentives. And, some notable audits in progress include the audited Financial Statements for the prior fiscal year and the annual physical associated inventory counts and also the cash receipts and revenue internal controls. As part of our open project recommendationsim happy to say that we have closed 78 prioryear recommendations and 44 of outstanding audits and what thattranslates to is that 129 recommendations were completed out of hundred and 65 and four out of nine incomplete audits. And this was a result of the implication program that we implementedearlier this year and that actively manage the open audit recommendations. That concludes my report and i will be happy to answer any questions you may have for me. Thank you. Any questions . Any Public Comment . Seeing none. Next item please. The next item would be 8g; the annual Capital Financing report. Good afternoon i have a very short presentation here on our Capital Financing plan. My name is eric sandler and i am with the business services. Essentially, we have a number of items coming before you every fiscal year related to financing. I thought that would be helpful rather than counting each one of these off is to give you an overview of the activity we will be planning this year so that when it comes to you we have some contacts for understanding it. We actually have three items on the calendar today so it is fairly timely. Lets see, in terms of an overview of our Debt Management and administration, we have a very large outstanding debt issuance. Both with water, wastewater and the growing need for power. We have used all the financing and Capital Investment to date and we have inventory of the planned debt issuances in our capital plans that we review annually. We have Debt Management and policies and procedures and we review these annually and internally and we provide any recommended updates to you as least annually or as necessary. The activities are overseen by the Oversight Committee which is established with the presumed property in 2002 and an overview which will be provided early in the spring. And then finally, the annual Capital Financing plan upcoming financing activity. So first we have the summary of the enterprise debt programs and you can see the first three lines of outstanding debt relates to fixed rate debt most is in Revenue Bonds. We have about 4 billion outstanding for water and 1 million for waste water and then we have about 40 million for power. And then you will see that we have programs to fund our Capital Investment activities on a daytoday basis and then take out that funding with longterm funding. We also have here the longterm and shortterm ratings of the various enterprises. The shortterm ratings are of the highest shortterm ratings of the rating agencies and the longterms are all in the double except for our power rating from standard imports which are all in the aa category. What made you go up in wastewater . In wastewater, we were upgraded and we went to do our longterm financing in the spring. We were upgraded by the imports and they said that with the service area and the financials and basically they had essentially done an update of the reading criteria which resulted in an upgrade for us. Good. That is short answer. So we have essentially three types of activities or transactions or actions coming before you to authorize. One category relates to Market Opportunities similar to what you think of when you manage your longterm mortgage for example. A lot of outstanding debt and a lot of different opportunities. Interest goes up and down a lot of our debt is callable which means you can finance it at no penalty and you can issue funding bonds and realize that service is for customers right there. And so, we have a lot of activity related to financing. In addition to that we have administration of our existing portfolio and that really relates to and is focused on our commercial programs and the liquidity agreements that are required to manage those programs that require regular renewal or replacement. We also have new money needs. And so, that relates to our future Capital Financing expenditures and from time to time longterm fixed rate debt. Here is a summary. This is a summary table that we will be showing you throughout the year each time that we come forward with the transaction and show you how are getting through the work here. The various transactions we contemplate over the next year. You can see the description on the left and the approximate issue size and the date we plan on coming to the commission and the first date is today and then im finally our issuance date. If you have any questions i will be happy to answer any questions that you may have. I know that we have a very long meeting your i would be happy to answer any questions that you may have. We have three basically for you today and the first is to authorize credit agreements to replace debt funded agreements to a water enterprise and the second is the issuance of up to 1. 1 billion of 2016 series ab water revenue refunding bonds and the third is the issuance of up to 295 million of the 2016 series c new money taxable water Revenue Bonds. We have some upcoming we have an srf loan and grant for waterenterprise project. The second is the new money wastewater bonds and a possible increase of wastewater cb authorization and renewal or replacement of the sixth cp bank credit facilities. That concludes my presentation i would be happy to answer any questions you may have. Any questions . Commissioner caen, i see you studying that very carefully. These are all new . In terms of . The bonds. We will be issuing new refunding bonds, exactly. Okay, i think for now that is good. Okay. We will see you again soon i think. Okay think you. Next item. O, i am sorry Public Comment . Hearing none. That concludes my report. Now we will move on to the consent calendar so if you would mind Commission Secretary would you read the consent calendar. Item 9 is the consent calendar. All matters listed hereunder constitute a consent calendar, are considered to be routine by the San Francisco Public Utilities commission, and will be acted upon by a single vote of the commission. There will be no separate discussion of these items unless a member of the commission or the public so requests, in which event the matter will be removed from the calendar and considered as a separate item. A approve an increase in the existing construction contract cost contingency in the amount of 428,650, for contract no. Hh981,and authorize future modifications for the contract. B award job order contract no. 63, general building blicense for San Francisco, san mateo, santa clara and alameda counties, for a nottoexceed amount of 5,000,000 to the lowest, qualified, responsible, and responsive bidder, angotti reilly, inc. , c award job order contract no. 64, general building blicense for San Francisco, san mateo, santa clara and alameda counties, for a nottoexceed amount of 5,000,000 to the lowest, qualified, responsible, and responsive bidder, rubecon builders, inc. , d approve the selection of bottom line Utility Solutions; award agreement no. Pro. 0049, high efficiency toilet direct install program, to provide Program Coordination and of replacement of inefficient toilets, urinals and other plumbing devices with highefficiency models for residential, commercial and institutional customers in the sfpucs Retail Service area; authorize the general manager to negotiate and execute a professional Services Agreement with bottom line Utility Solutions for an amount nottoexceed 4,000,000, and with a duration of four years. E accept work performed by m squared construction, inc. , for contract no. Wd2506, 8inch ductile iron pipe main installation on clement street from arguello boulevard to 14th avenue; arguello boulevard from lake street to geary boulevard; approve modification no. 2 final , decreasing the contract amount by 401,506 for a total contract amount of 2,721,409, with a total contract duration of 405 consecutive calendar days approximately one year and one month ; and authorize final payment to the contractor. F accept work performed by precision engineering, inc. , for contract no. Ww583, asneeded main sewer replacement; approve modification no. 1 final , decreasing the nottoexceed contract amount by 876,724, for a total contract amount of 2,657,376, with a time extension of 183 consecutive calendar days approximately seven months , for a total contract duration of 578 consecutive calendar days approximately one year and seven months ; and authorize final payment to the contractor. G accept work performed by shaw pipeline, inc. , for contract no. Ww595, 3rd 7th 8th 25th 33rd 42nd avenues and baker welsh streets sewer replacement; approve modification no. 3 final , increasing the contract by 355,598, for a total contract amount of 4,118,202, with a time extension of 54 consecutive calendar days approximately two months , for a total contract duration of 418 consecutive calendar days approximately one year and two months ; and authorize final payment to the contractor. H approve the plans and specifications and award contract no. Ww621r, asneeded main sewer replacement no. 6, for a total contract amount nottoexceed 10,787,800, to the lowest, qualified, responsible and responsive bidder, precision engineering, inc. , i authorize the general manager to adopt and make permanent rules and regulations to implement article 12a of the San Francisco health code. Thank you very much. Is there a request to remove anything from the consent calendar . Hearing none, is there a motion to approve the consent calendar . So moved. Is there a second . Second. Any Public Comments on the consent calendar . Hearing none. All those in favor say, aye. Opposed, nay the consent calendar passes. And next item please. Item 11 is a workshop discussion regarding the integration of gosolarsf with cleanpowersf. Good afternoon commissioners. So, commissioner moran has asked us several times how we will integrate gosolarsf with cleanpowersf. Most of the informational privacy today will be with gosolarsf i think you are pretty uptodate one cleanpowersf. And then i will discuss the common policy goals and the backgrounds objectives and eligibility and impacts and also the proposed Program Changes and how we will go about implementing those changes. By way of background the idea of needing to integrate go solar sf and cleanpowersf was on the table at the inception of the gosolarsf program and this was in 2008 when we did not have the program yet but we were talking about the integration of the program so what i have on the slide is what the enabling legislation directed us to do. And then the final clause 18. 6 directs the sfpuc to coordinate administration of the program with the implementation and administration of cca to maximize the program. So the first would be encouraging installations of solar Power Systems in San Francisco to increase the installed systems and also to provide jobs to disagreements san franciscans this has a lot of information on it but i am happy to say that all three types of customers in San Francisco are eligible for gosolarsf incentive payment so what you can see here is since its inception that five of our puc customersare all hetch hetchy customers have received go solar sf incentive payments and the balance of them have been paid out to noncustomers for a total installation of just over 4000. The total megawatts installed first solar in San Francisco is 30. 7 mw. That is largely the go solar sf contribution at 14. 3 and then we have the municipal roots at 7. 4 and 8. 5 mw of others. So the 14. 3 mw installed through the go solarsf programs were installed largely on the noncustomers. We are a year into the shift of the job component of the go solar sf program. It is now moving for all participating installers. That is the change underway under the direction of the economic and Workforce Development. The program started in 2007 and you can see on this slide of where the breakdown is and where those dollars went for residential low income, residential, business, nonprofit, and nonprofit residential, and this is since 2008. Basically thethrough 2015 and the key here is that the cost is really been dropping. The incentives themselves have come down and you can see kind of in a chunky way we produce the incentives over time. That is showing an average system size of 2. 5 kw. And then, the next column shows the state incentives paid to that same average size 2. 5 kw system and what the overall net cost will be the outofpocket cost for customer. That doesnt count