And respectful manner. Address remarks to the commission as a whole. Thanks to sfgovtv staff and it staff for assist analysis. For those present, silence your electronics. Before calling the first item. The San FranciscoPublic Utility Commission acknowledges owns and are stewards of the lands within the testify the Ramaytush Ohlone tribe and other descendants of the historic recognized Mission San Jose [inaudible]. Bands alameda county. Puc also recognizes that every citizen residing went greater bay area benefits from the use and occupation of the Ramaytush Ohlone lands. Since before and after the San FranciscoUtility Commission founding in 1932. It is important the tribal landos which we reside and also we acbuilding and honestor fact that the recommend ram people have established a Work Partnership with the puc and productive and flourishing members in the greater San Francisco bay area communities today. Madam secretary. First item item 3 report of general manager. Thank you. Item 3a is manage we like to do recognition of retirements. Commissioners i like to start the meeting to recognize the service the retirees with over 25 years of service to the puc commission. Today we congratulate 21 individuals the highest form criminal and provide in Public Service and recognize the following. From the Information Technology team bribe are lay. 38 years of servicement 36 yeeshs. In the Customer Service bureau. Maureen republican dolph. There are years. Water, ted sanders, 37 years of service. Paul del aggressiveo 30 years. John thuman 39 years. Danielle watson then years. John kelly 3 years. Carroll deaggressivea there are years of service. James blue, 36 years of service and carlos, 32 years of service. 32 years of service. Steven delayo 33 years. Laura target, 26 years of service. Brian sack, 26 years. Her with us today al, 35 years of service. And the water enterprise jose lamoney. Wes low and today may low amad 26 years of service. Kevin roach 28 years and vincent wong 27 years. Join me in congratulate our retirees with applause. I think when we recognize commissioners is that is experience. Well is good and they are happy for so long but there is the other side we replace the people why we are focussed on hiring to make sure we builted next crop of leaders. Before i ask the folks attending today. Up for a Photo Commissioners if you like to say anything. Floor is yours. Commissioner stacy congratulations and thank you so much for many years of service and enjoy your retirement. I wanted to say absolutely impressed the amount years, wow, and i guess i share the current gm. Pretty tough to replace the years of importance and knowledge and and thank you so much. I hope you have great retirement and reason joy time off with families. Thank you. Commissioner maxwell. We already miss you think burglar it we miss you already. And if you have anything you can add if you want to just write a note unanimously on when we can do i would appreciate t. And im sure we would. Thank you for everything that you have done and everything that you will will do and thank your families, too they have done a lot make sure that you can come. Thank you very much. Thank your families. I add like this is a great amount of Public Service. We are all grateful for your service and the time you spend making this utility a better place for the people you mentors. Work you did for the city and the county. It is you know obviously a great thing to see that people work in the snougz for a language time. And provide so much value this. Is manage that is not common i mention today every time we see people leave with this many years of service in this day it is rare. If you have ideas and like to you know come become and share some of your knowledge with us in case later when we miss having coming to work every morning. Or time off and family time. And and if you have good talent you think we should focus on or if you have suggestions. Always look for example talent to bring in our little umbrella and trin them for future. And with that, thank you. Madam president i like to invite al and may up for a photo. My apologies. All right. Thank you for being here. Come on up. We are 3. The motor merrier. Any of our retiree attendsise. If you like to say a few words. The floor is yours if you like. If you would like to say a few words. Retirees or coworkers about them. Feel free. Thank you. [applause] why donts you come to the front, please. Please, do. Because we want to make surety camera can catch you and people can see you at home and hear you. I want to thank for the opportunity to learn, grow and to contribute. I have enjoyed working for the city more then and there 36 years. And i feel proud when i go to work. We know our mission and we contribute. We dot work of the city. The all the city in San Francisco. Thank you. I love it. Learn, grow, contribute. Thank you. Thats amazing. What about the please, do come and say a now words. Yes. Thank you. For having me. It hen a longhaul. Wonderful journey. Serving the city and county of San Francisco. Working for valall these year and is worked for the Water Department and al did us old timer puc is not the term we use. Im luck to be a Second GenerationWater Department. Each follow my fathers footsteps similar to police and fire i saw had he did and decided that was the direction i wanted go in and the great pleasure. Work on our water system in the city and distribution division. Customer service and the last part of my career the Water Quality division. Down in [inaudible] i was able to see just about everything had they say from infall to out fall and it was a great run. When i missed the most is working like with sxal my fellow employees. I miss the comradery of the daily getting stuff done. And will but i also miss not being on call anymore. In a good trade off. It was a noise run and i pret much enjoyed every minute. It went by too fast. Thank you. Mruz [applause] i like the generational thing. Do you have kids who want to join us, let them know we are here to recruit them. Members of public had wish to make 2 minutes of remote comment on 3a. Press star 3 to speak. You will hear a chime when there are 30 seconds remain and another when the time expired. Dom we have callers with hands raise snd there are no callers in the queue. Public comment on 3a is closed. Thank you. 3 b introduction christian our new chief equity and he inclusion officer. Commissioners. As you are aware, at this commissions direction years ago, the work of diversity, equity and he inclusion was made to be a major prior and focus of the puc and this is something that started before my tenure. But has been a key part when i attempted to accomplish and kick start course of the last 2 years. In terms of our work on Building Partnerships and doing mentorship programs. By stake survey its see how employees felt. Everybody at the puc recognize diversity and inclusion is i per whf we dom a key component was hiring our first inclusion officer. Im happy to introduce to you chris who started with the puc on july 10th. Come we are truly, truly luck tow have chris. A national low recognized xfrment from a practical perspect and i have academic. On issues of racial and social justice. He is a thinker. Passionate about challenges in youth special adult legal systems. Child welfare. Public health system, accomplished author. And academic on the subjects and we are lucky to be able to have lured him back to california. He did work in santa clara before. But we were lucky to louer him become from the east coast where he completed docket rat and a masters in buildings add registration from customer graduate school. Master of public health. Am a bachelors in psychology from the city and college of new york. He has been a wonderful addition and hit the ground run and out in the will field in almost every day. Right now fork you going on building his female and sharing the results with employees throughout the organization so what they hear how important it were is now serious we take the work that we committed to do. Im theme have him part of the teach. He did not want to get introduce in the julimented wait until he could hit the grouped and perspect you have when he noticed and he is building his team. Good afternoon a pleasure to be introduceed you all. I cant tell you how excitid am. Keeping short i want to let you know had this role for mow is not just i privilege this is a representation of my life. I dedicated my life and career addressing disparities across many fields. The opportunity with the puca lus me and the team to advance this work. So long with dennis the general manager and the amazing executive team at the puc, we hope to do exciting things. And them is i reminder this this work will not happen over notice. Well encounter a lot of challenges. If we can be patient and operate with a sense of urgency i believe this the w we can accomplish will be wonderful and hopeful leave move to the other side. What happened in our country in 2020 was the tip of the ice Racial Disparities a problem for many centuries. We have an opportunity to do something different. And so, what we have accomplish side not the folk us and prioritize problems but engage in solutions. Dom more than we talk and hopeful low we dot right things and may not feel like the right thing fist we talk to the people to listen when they have to say and intgreat comments and thoughts and ideas. We can do this clantive and im looking excite to leading work. Thank you for the introduction. Do you. S g. Ahead. Thank you very much. Indeed we are fortunate to have you. You mentioned that at some point woad hear about the analysis that he has done after well. That we put out a lot for people to comment and so we hear something about that. At some pointful yes. Certainly, commissioner. Chris is out there talking now. I will dover him at the appropriate point. I like to see like in a report form. Absolutely you know how if it is other quarter low or whatever you can think might be promote. We have an on going connection with us all the time. Absolutely. We make sure the work is transparent. We want to make sure the work is moving forward. Part behalf i have been doing the past week system going to several sites to share the result was Racial Equity survey release in the program rather than via e mill we wanted to interfits with the people. W is religional if we dont build relationships we are not doing the work and authentically and we are going out to every fight and location we priorityize that over 6 weeks. We had a sthegz morning. We are starting early and end late this. Is an opportunity witness we consolidate findings we will share with everybody. I think i understand what your questions now. I was not, yes. In terms of the on going work this we are doing and under chris leadership we figure out i way to make sure that is reported to you regularly. We will look at a contract later wrfrment we come up with a regular reporting rejust a moment and goals the marks they are trying to hit. Sloulth. Yes we are looking at make sure they prioritize and they are shared in a timely manner and digestible you know what is happening on the ground. I think may be and first, welcome, thats wonderful. Y worn thing i say i dont want us to get buried with report writing mroisz and not focus on when we want to accomplish. I say, may be we can have some presentations like handled day. I dont know you know kids go to school handled day pleasurement or when you take a job. You have my word well report regularly. I hear your eagerness. And i want to beo we dont put chris in a situation he is writing constantly. See how we are doing and we want toive guenough time to familiarize yourself with the scomplas when is in place and see what come next. And we hear back. I think we realliment to make sure this does not and you know this im sure dennis communicated. Go beyond checking box. Enable everybody with Cultural Diversity beyond just what box people belong to. More from what is become grundz they come in and when opportunity they have and can they also have a chance to grow. In an institution that is welcoming and i continuing is important to keep them in mind of make sure everyone feels they comprehend i want top reuse that terminology. Learn, grow and criminality. We are learning and growing as a teach. The team is young. They are moving forward. And enengage in the community and the Community Upon advance and want development i have zero interests in being burr ed in reports i did in the come to write reports i came to get things done. I believe well get things done and reports are a part of that. Not writing beautiful wordos paper and get the w done perfect. Thank you. Skwa members who wish to make remote comment on item 3b. Press star 3 to raise your hand to speak. You will hear a chime when there 30 seconds remaining. Did we have members present to comment on item 3b . Dom we have hands raised. There are no callers. Public comment on 3b is closed 3c is fiscal 25 and 25 26 budget update. Nancy will present. Thank you good afternoon. Im nancy, chief Financial Officer general manager for business service. I like to provide a quick introduction to the planning process. This is an official welcome. The agenda will begin an over view of the puc capitol budget and continue with priorities we focus upon for the budget cycle. I will provide a review of our commission policy. Govern our budget process. And lastly finish with the budget schedule the next few months. Puc operating budget is 1. 8 billion dollars. Fund all by water, power and sewer. That will is mentioned before. These are 2 major cost driver in our budget. The first and learningest cost driver is Capitol Program of shows up as debt service and ref now capitol. Second is power purchase for hetch hetchy power and clone clone. The next after those is personnelful 2, 745 funded full time of which 2, 300 sold at any given time you see in the pie chart, water is the learningest comprising 43 of our budget followed by power and wastewater. 33 and 24 . Finance other human resource, external affairs them and costs allocated over head allocation model. Joo capitol isoir biggest costment our 10 year plan by the Commission Left february is 8. 8 billion dollars. About 1. 4 billion in the currently year. Largest driver of the plan is the sewer system improve am mr. Foreman wastewater make up majority of green bar in this chart we expect growth in the plan in this budget kyle cycle we enough trade off with future rate increases. When developing a budget important to consider priorities. For this cycle we set priors to help us make decisions and where to pend and consider trade offs how to balance the budget. Jot priority prosecutors listed on the slide. First is affordability. About ensure the best value and responsible planning keep rates affordable. Staff drafting a new affordable policy brought to you shortly and set guidelines for budgeting and planning. Currently, staff across puc are work to improve our planning process to ensure we budget and deliver projects we plan for. Why second prior is responsible manage p. M. Here what we do ensure we go plan for sustainable and financial future and ensure we are resources to impeleven racial action plan and consider the impact of our investments. We want to be transparent and maintain ethices and add here torrobust internal control in our Decision Making and operations. We want to ensure responsible management of the system entrusted our care repairing and maintaining resources to keep it run nothing compliance with regulations now and the future. The last priority is investing where it matters. We are specific low poke to capitol plan. They generate job s and help with economic recovery, ensure investments consider equity impact. Clsd remrigs aging infrastructure the massive investments we are make negligent southeast treatment planful meet new demands to handle demands. Like at the airport ownership supporting new housing or new developments at the port. And we continue to be good stewards of the environment and will make sure our infrastructure is resilient to Climate Change. Become to the budget process. Our goal is now and february to develop a balanced 2 year fixed operating budget. A 10 year plan and 10 year financial plan. They are here for you. Our affordability policy is coming soon. The official and debt policy. Technology, if manage and want Racial Justice resolution. Lastly our budget schedule. A time line of behalf to expect. We are here at the beginning and between now and the i dont remember well go through staff level deliberations for i recommendation on i balanced budget examine plan, hold meet pregnants at the end of january to review the proposals and allow for questions and discussion. Upon on february 13 of 24. The commission will vote to adopt two of the year operating budget of capitol. 10 year plans, financial plans and after, that budget committed to the Mayors Office tell continue to the board and all finalized july of 2024. Nime months from now. And once we will come become to plain the challenge this is have taken place and the mayor and board face. We are excited get this prisz started. Thank you and im happy to answer questions. Any questions. I have a question for you. Can we have the slide with priorities for this budget. Up for a second . I appreciated the categories i think than i are important. And one observation and may be suggestion i have. Is i would pull out the environmental stewardship, resilience and Climate Change and access. I think the access is divided with affordable and responsible management and put them on top. That is which we go through everyone of the buckets. We need to make climate xhafrj, look at everything through the 11s of Climate Change it is helping not somethin