Im malia. Joining me is norman yee. I want to take a moment to thank our friends at sf gov tv for assisting us with todays broadcast. Madam clerk, do we have any announcements today . Yes. Please silence all cell phones. Items will appear on the january 9th, 2018, agenda unless errwise stated. Thank you. Were Getting Started late today. Well try to make up the time as we go. I want to thank you for your patience. Madam clerk, can you call item one. Regarding sorro commons. This is item one. Mayor lee is a sponsor of this particular legislation. Weve got amy chan from the department of housing to represent the housing and community development. As a refresher, supervisor tang, they need more time to resolve the outstanding issues with the lender, and they request that we postpone this. I would like to give ms. Tang an opportunity to expand on this a little bit more. Good morning. Thats correct. Were asking for the call of the chair. Were hoping to resolve the issues be the lend ever before todays meeting, but we have not come to an agreement. Well work diligently and well be coming back in the early next year to the committee. All right. Thank you very much. Well hear from the budget analyst nope . If theres any member that would like to comment on this item. Seeing no Public Comment, this is close. Can i have a motion to continue this to the chair . So moved. Well continue this. Item two. Delegating authority to the jeer manager for the Public Utilities commission to enter into agreement or requiring expenditures for 10 million or more for you paer power subject to specified conditions. Okay. I think this is a straightforward ordinance. We have barbara hale to present with item. This is congressman peskin. I want to offer my condolences. Its difficult to weather what the city is dealing with today and its difficult to carry on business. The Community Choice program has been operating since may of 2016. Were now the citys default provider of Electricity Supply for 86,000 Service Points in the city. Under state law, its an optout program where we provide the energy supply. Pg e continues to provide transmission and distribution services, the maintenance reliability and outage response for the distribution system. Meters and bills customers. The program is truly a partnership with pg e. Through this program, were achieving certain goals, affordable electricity thats cleaner where we reinvest for local renewables and local jobs, making sure that we are providing for long term rate and Financial Stability of the program. Its really a balancing act, making sure we accomplish all of those. Its one of the programs that the Public Utilities commission operates. We are operating two programs within it, with our clean Greenhouse Gas, super green, and our Green Program at 40 renewable. Were proud of the fact that our program is experiencing especially low optout rates when compared to other Community Choice programs in the state. Its growing an Important Program at the Public Utilities commission. You can see here, just to give you context. Today its at about 38 million in annual operating revenue. As we grow and serve the rest of San Francisco, it will be about a 250 Million Program serving more customers than our water department, revenues about matching our waste water enterprise. Weve been preparing for the growth over the past year. We completed and presented a gross plan to our commission in may and also to lasko. Our commissions increased the Renewable Energy content goal from 35 to 50 by the end of 2020. That will put San Francisco on a path to meet the state requirements ten years ahead of time. The pc also set out a goal to enroll all of San Franciscoens eligible by 2019 or as soon as possible. This involves key steps that bring us here today. A key step is arranging for the power supply. This past summer, we conducted three different solicitations, one for Renewable Energy, run for Bank Credit Facility that would provide for the credit support the program needs. It was a highly competitive solicitation. Bids were offered that would ensure that theres enough supply to serve all of San Francisco by july of 2019 at competitive prices. You can see some logos here for just some of the Energy Companies that weve short listed, where we shortlisted their proposal. On november 14th, the Public Utility Commission approved the shortlisted pool of vendors and authorized contracts, one or more, subject to a number of conditions. Weve including, i believe through supervisor tang to delineate what the conditions are in section 3c. So today were here proposing to follow the same approach that we followed when we launched the program in may of 2016, but since its growing, it will be for more energy. You will see higher caps. The purpose of the delegated authority that were seeking today is to enable us to make timely decisions. We really need to operate in quite a Dynamic Energy market. We want to foster the competition until the end of our negotiations with our counter parties. We want to make sure we maintain some flexibility and provide options for the commission to make sure we bring in the highest quality, lowest cost, supply. The delegated authority includes a number of limitations. You see those listed in the ordinance in section 7 and also on the screen here. Theyre really focused on a bounded delegated authority to make sure we can bring in the amount of supply we need in a timely way. Assuming we get your support and this ordinance moves forward, were on a schedule to begin serving the rest of San Francisco, a large section of the rest of San Francisco, not all but a large portion of it by july of 2018. That means that come january february time frame, well be executing the Credit Facility and the power contracts. Well be commencing our outreach efforts, which will be quite extensive, making sure San Franciscoens are aware were coming to their neighborhoods with this new program and enrolling customers and starting service july 1st. So with that overview, i would be happy to take any questions you have. Thank you. Supervisor yee . I dont think you mentioned it, but you might have. So far, what has been the percentage of people signing up for the program . So weve enrolled customers. Were at about 85 accounts now. 2 of customers we approached said no thank you. What is that. 97. 8 have said yes. So we have a very high retention rate, a very low optout rate, serving about 80,000 accounts today. Of the 80,000, how many are super green . About 4 are super green. And do you have sort of a game plan to increase the super green percentage . Yes. We do have an ongoing efforts to market the super green. You know, thats really where we get our highest improvement of our Greenhouse Gas footprint for the city. So our Communications Team is regularly tabling and participating in neighborhood events, marketing the super green opportunity. Facebook, social media, other social media tools are also used to make sure San Franciscoens know that they can opt up to super green. Thank you. Im glad im part of the 4 . Thank you. Thank you for your presentation. This is very exciting. Lets hear what the budget analyst has to say. Good morning, chair cohen, and those from the budget analyst office. This was specifically authorized the puc general manager to enter into power agreements and a agreement for a Credit Facility without further board of supervisors approval. Specifically the ordinance would approve the form of Standard Power agreements, weigh certain City Contracting provisions for Energy Contract and contracts for credit facilities. The Energy Providers and the Credit Facility were selected to competitive process, but the specific providers have not yet been identified for the purposes of this report. There is an agreement to negotiate with jp morgan, but theyve authorized puc to enter into an agreement with another credit provider. As ms. Hale pointed out, the commission does not review the contract for credit provider. Thats supposeded to happen in january. On page 8 of our report, we do list the expected revenues and expenditures for the Clean Power Program. The revenues are expected to increase to 266 million by the year 2022. This assumes that the number of customers would increase from the current 80,000 to about 350,000. By that time, the Clean Power Program is expected to be selfsufficient in terms of expenditures. As we say in the summary on the report on page ten, because the proposed ordinance weighs the standard progresses and weighs the board of supervisors authorities, we do consider this to be a policy matter for the board of supervisors. We recommend one amendment to require the puc to submit annual reports to the board that detail the program costs, the rates charged to clean power customers to recover these costs, and a comparison of clean rates, the pg e rates for similar products. Otherwise, we do recommend this as a policy matter. Thank you very much. Lets go ahead and take Public Comment. If theres any members of the public, please come up. Get in line, and well hear your comment. You will have two minutes and you will hear a beep indicating the last 30 seconds of your time. Im on the cac of the puc. Im a customer of clean power sf. Im also a super green customer. I am very satisfied. I think given the volatility of the Energy Contracts, this is the only way to make this work, and, more importantly, given the idiots that now occupy washington, dc and the administration, it is imperative for all other public entities to do everything in their power to reduce the Carbon Footprint of everybody of their residence. Therefore, i strongly support this. I think this is good for the city. I think this is good for mankind. I hope you approve it. Thank you. Thank you for your thoughtful comments. Next speaker. Good morning. Thank you very much, chair cohen and supervisors. I want to echo director hales comments about the mayors passing. Im a resident and super green customer as well. I want to thank the gentleman who just spoke for coming out. I want to remind us that over half of our citys Climate Action plan can be reached by moving to 100 Renewable Energy and maximizing energy. Clean power sf is how we can accomplish those goals as expeditiously as possible. The puc needs this to move at business speed and act on prices that are good for a few hours. If not, the program will cost City Residents too much. Which i know none of us want. I dont think this data was presented to you, but the level of expenditure by clean power sf by this procurement and to reach enrollment is right in line with other ccas. Theyve delegated authority from this by their governing boards. I strongly urge you to approve this. Thanks supervisor yee for his comments. We would also love the see super green higher than 4 . Thank you. Thank you. Next speaker, please. Welcome. Good morning, chair and supervisors. My name is melissa yu. Im a Community Organizer with the sierra club and here today to also show support for this ordinance and ask that the board Grant Authority to the puc, general manager, to help most effectively and rapidly to move clean power sf forward, and we need to complete citywide enrollments and transition San Francisco to a 100 clean energy feature. This ordinance will help the puc best acquire the needed energy supply. What jed mentioned, so many Community Choice programs launching in the bay area, the puc needs to be able to quickly procure energy as the market will soon be saturated with other people also wanting to purchase, and with this authorization, the puc can more competitively thrive and strategically negotiate the best business terms. Thank you. Thank you. Next speaker. Thank you, chair. My name is adam skow. Im a resident. Strongly in support of todays residence. Were seeing the Climate Change wreak havoc. We need San Francisco to lead by example. This is a big important step toward that. Thank you. Thank you for your time. Next speaker. Hello, supervisors. Eric brooks. Im here for San Francisco green party and the local grass roots our city and on behalf of the statewide coalition thats working on californians for energy of choice. As representative of the California Green party, just to say how important this legislation is, to give you a sense of just the concrete reasons why this is so crucial, the way that Community Choice works is it gathers all the customers together in a Service Territory and uses their collective buying power to purchase and build clean energy and efficiency and battery storage. So the key to opening that up to get as many new customers in as possible as quickly as possible by 2020 is this authority thats in front of you. If the sf puc doesnt have this authority, they wont be able to get the best deal in Renewable Energy and wont be able to bring in the next big trench of customers and get us to full enrollment by 2018 or by the end of this year. So this authority is really crucial to the sf pucs ability to bring in new customers and so we can start hiring the thousands of people that will build that here in San Francisco. Thank you, eric brooks. I am in agreement. Is there anybody else that would like to speak in Public Comment . Okay. Seeing none. Public comment is closed. I just want to call everyones attention that it looks like this ordinance is going to pass out of this committee with a positive recommendation. Well accept some amendments, but it looks like the entire city could be well on its way to clean power by next year, and thats something i think we collectively should be very proud of. Its an exciting time. Its also important to note that clean power has separate revenue, separate asset that the rest of the power enterprise. Its important as a member of this committee that i call that out. I also want to say the costs are estimated to increase from 37 million in 2016 to 266 million in fiscal year 202223. So this particular contract makes sure we dont exceed over 70 million a year under the proposed ordinance. Theres a lot in there for us to celebrate. Supervisor tang, i believe you have something you want to share . Yes. Thank you so much. Thank you to the puc for bringing this to us. This is very exciting to see the uptake in this program. I do have a couple of amendments that im going to make on behalf of supervisor peskin. [brief transition in captioning] actually, just a question. Could you put it back up . Does this program is this program offered to p. U. C. Customers beyond San Francisco . This program is only offered within the jurisdictiontal boundaries of city and county of San Francisco. Any reason why we couldnt offer to all the customers . We could expand the program at the direction of the governing bodies. Yes. We have chosen we have chosen not to. Staying within our city, our city foot print so far. When you say government bodies yourselfs. Ok. [laughter] i didnt know if you meant well, if expansion we would pursue expansion if we were directed to by the board of supervisors to actually consummate an expansion. It would require other governing bodies to authorize that. To agree. For example, a Service Territory that were trying to expand into would need to agree and we would need to receive certification from the california Public Utilities commission that that expansion is authorized. Are there any reasons why we shouldnt . At this point, were focused on making sure we meet the objective of serving all of San Francisco. Once we have a full program serving all of San Francisco, it might be appropriate for the city to consider expanding to other jurisdictions. I would note that all of the counties contiguous to us are already launching programs of their own. So marin, san mateo, alameda, for example, all have programs. That are either operating or about to operate. Ok. So, theres really no need for us to expand this . At this time, i dont see a need. I see a need to make sure that we expand to meet all of San Franciscos needs in the near term. Ok. If if you ever think that we need to we need