Excused today. Commissioner paulson. Here commissioner rivera excused. Commissioner stacy. Here. We have a quorum. Members of public make up to 2 minutes of remote public on an item dialing 4155540001. Access code 2591 574 6761 to rid your hand press star 3. Speakers will hear a choim had 30 seconds remaining and another chime when the 2 minutes have expired. You must limit your comment to the topic discussed upon if you dont stay on the topic the chair may ask to you limit your comment to the item. Public comment made in a civil and respectful. Mute, thank you. Thank you. Public comment med in a civil and respectful manner. Address remarks to the commission not to individual commissioners or staff. On behalf of the commission thanks to sfgovtv staff and puc staff for assist analysis. For those present, if you have in the done so silence your electronic device. The dial in number is 4155540001. Access code 2591 574 6761. Raise your hand to speak please, press star 3. On todays engaged the commission will adopt water rates for 2024 to fiscal 20 ticks on item 6 and proposal to adopt sewer rates for year ending 2426 under item 7. The commission received written protest by mail and considered those pursuant to prop 218. Any Property Owner or customer submitting a written protest in person today should submit protest to the Commission Secretary before the commission acts on the item later in the meeting. Thank you. Observe the first item the San Francisco puc acknowledges it owns and stewards of the unseed lands within the historic territory of the tribe. And other upon descendants of the historic [inaudible]. Recognized Mission San Jose band of alameda county. Puc recognizes that every citizen residing in the greater bay area has and continues to benefit from the use and occupation of the tribes lands. Since before and after the San Francisco pu c commission founding in 1932. It is important that we not only recognize the history of the lands on which we reside but also acknowledge and honor the fact that the people have established a working partnership with the puc and productive and flourishing members in the bay area communities today. With that, ksdz you read the first item . Item 3 approval of the minutes of may 9 of 23. Colleagues, comments or edit to the minutes . Jury room if 91 can we have Public Comment. Members of public who wish to make 2 minutes of remote comment on item 3 the minutes of may mine press star 3 to spreek. Speakers hear a chime had there are 30 seconds and another had expired. Are there members who want to provide comment on the minutes . Do we have callers with hands raised in there are no callers wishing to be recognized. Thank you. Public ment on item 3 is closed. Commissioners stacy. President ajami i want to say i missed the hearing i did revow packet and watched the arkiefd video i feel prepared to vote on the issue of the minutes. Why fantastic thank you for acknowledging that i appreciate it. Can i have a motion and second . On this item . Moved. Second. Roll call, please. President ajami. Aye. Xhrp paulson. Aye commissioner stacy. Aye. Minutes approved. Could you call the next item. Item 4 report of the general manager . Thank you. The thing i have to report today is we it is always celebrating and sad when you lose a member of your team to a retirement. Today i like to recognize Charles Pearl or department chief Financial Officer today is his left day of work and thank him for his service. Charles served for 15 years with another 3 years of service at the airport and the mayors office. Upon commissioners, when i arrived here in 2021, charles offered a perspective the fighting on behalf of the rate payer and keeping costs down helped me appreciate the complexities of the agents budget rate and revenues, i saw followed a pragmatic fiscal conservative path that navigated through recessions, droughts and of course the pandemic. Charles lead this agency toward better decisionmaking, Financial Plan and financing areas. For example, we have strong Credit Ratings allowing us to access the important credit markets to financials our capital prushth programs. With over 10 billion dollars in finance transactions underwent his leadership. Power credit was created and, the first bonds in 2015. Providing capacity to finance the infrastructure needs. Green bonds an investment category was created under his leadership. All of our fiscal policy we use today were developed by charles and his team. Other ordinary care chiefments 10 Agency Budget cycles supporting the past 15 fiscal years ensuring Capital Budget were reviews, and report and closed out. 8 cost of service studies water, sue and power rates and Financial Planning process that guides our financial decisionmaking. Lastly, he mentioned and developed many of the finance leaders with us today. And others when continued as successful careers. Commissioners. Charles accomplished a lot he is leaving the puc in good hands with strong manager in technical and critical financial roles. I cant actual how much we appreciate charles leadership over the past 15 years and support of the pucs mission and values and i tell you x there is no mentor for the year and a half i have been here on financial stewardship and good financial decision make. Charles, thank you very much for your leadership. [applause]. Thank you, i want to thank you. It has been a pleasure working with youy are right we have done a few things the past 15 years. And as dennis mentioned we near good hands. Well is great people behind me you will hear from a few today i want to let you know that all is good. Thank you. [applause]. Commissioner stacy. Thank you, mr. Pearl i wanted to say, thank you for your service i have not anyone here long but i know how absolutely critical creative financing is to keeping the rates down and making sure the puc can do what it needs to do. Thank you for your many years and i look forward to working with your great team who will continue to do good work. Thanks. Commissioner paulson. I like to chime in to i than of the men meetings i have attends in the my in my years here on the short number here on the commission i than had you are responsible for report it was clear and i felt like, yea i know what is going on when you were done. Thank you for the insure time i have known and you appreciate it. And in enjoy what you will do now. [laughter]. And i also. To add my word to the and say i amming very much appreciative of the time we spent working together in the past few years. I always appreciated how would listen it my academic idea and help me translate them to Real World Solutions and you know i appreciate your patience. Thoughtfulness and it is fact you engage in the the conversations without willing to brain storm on some ideas. I have been a big fan of the and financing we used. And it has been wonderful to get to know you and also than you were behind them and i really i know and i hope is this we continue on this path. As we move forward. It is you know great mentors create great future next generation of employee and next generation of leaders. I have no doubt have you done so. So, you will be missed. I again you really appreciated working with you. All you have done for this institution. Thank you, charles. Madam secretary that concludes my report. Public comment . Yes. Public comment on this item. Why members of the public had wish to make 2 minutes of remote Public Comment on the r. General manager, press star 3 to raise your hand to speak. Speakers will hear a chime when there are 30 seconds remain and another 2 when it expired do we have anyone present to provide comment on the general managers report. Mr. Moderator callers with hands raised. Well is one caller in the queue. Thank you this is item 4a. Hi. Good afternoon this is denise from the center for biological diversity. And i wanted to say you know when you acknowledge the anative American Land we are on we should acknowledge im sorry. Im sorry speaker im sorry this is item 4a the report of the general manager on the resignation of employee if you want to speak upon urn gerund Public Comment do so under item 11 general Public Comment. Thank you. There are no callers in the queue. Public comment on 4a is closed. Okay. Can we have the next item. Item 5 the bay area water splice bay agency update. Members of the commission, last mont the board issued notice of preparation for development of environmental document related the tuolumne voluntary agreement. Of the state board part thankful perform an Environmental Review of that proposed voluntary agreement that was documented in the november 2022 memorandum of understanding that San Francisco signed on to with other Tuolumne River per and state resource agencies the board will evaluate sna voluntary agreement as an maam to the bay delta plan. There was oral meants at last third degrees public hear nothing support of the state boards effort. I forded those comments to you last week. I stated the proposed voluntary agreement if the tuolumne agreement could be a big step forward with flows and increased habitat for fish in the tuolumne and ensuring a reliable supply of high quality water with a fair price. In addition to boska there were 20 members of public that expressed support for the state boards proposed process included a member of your starch and 15 individual boska member agencies. I want to really recognize the puc work with the resource agencies and others this lead to this november mou. This is the reason the state board is taking action now. I want to express appreciation for the leadership of herrera for the support of the commission for this work that is secured the successful effort. Both mou and the state boards evaluation of the proposed voluntary agreement are when we have been advocating for some time. I am sure you are tired of me talk willing it i want to call attention at this time fact it it is a big success it taken support and leadership to get there and thank you for what. Boska looks forward to the robust environmental evaluation of the voluntary agreement. And together, the activities are critical step to enable to you meet your legal obligations for the customers. We are here to support your effort in this. However that needs to happen we are here to express support for the state board that concludes my remarks. Colleagues any comments or questions . Thank you for enengaging in the press and providing updates on na. Appreciate it. The upon upon presentations from boska was disgraceful. Boska done none of itself own analysis on the tuolumne agreement. I have not done analysis after giving a presentation to staff followed up with a letter pointing out the flaws. And could not responds and they never did. One things was 90mgd of water developed. In the workshop on march there was an analysis that commissioner moran was fair enough and staff to look at different scenario the promising was to reduce the design drought by a year and insert rationing activelies probably too aggressive but compensated for in the run off. And developing 35mgd would make you whole by 2045. With the figures used in the Water Management plan we know are ecageerated this is worth looking at. We can reduce the amount Water Supplies and put simple changes. Ffgs disappointing with boskasm thank you. Next caller hello you have 2 minutes thank you. Im dave warnir from pamo alto i want to comment i have respect for coo sanculla in this circumstance i give a different perspective on the spring water Board Meeting left week. My sense is the Tuolumne River will have a tough time getting through the state water board i listened to the first 2 workshops which were about the seasonals. I think the water board will look at the science and one of the conclusions i came to was that you know the study that said that the predator assumption in the fish pomp lagz model was just an sxuchlgz not based on data. There was another comment. Largest impact on the fish population model. When you look at the 2 things the model is it is needs to have the predator removal and you look at the predator removal data an assumption special then in the workshop a debate about that. I think this is one small peeves many place the trv will have a challenge. I would not hold out too much hope tell paddle but you never know and im sure the biasd that it is in the enough for the fish. Thank you. Thank you for your comments. Why next caller, 2 minutes. Hi. You know the fish need increases to fresh water flows and because the voluntary agreements dont provide the necessary fresh water flows the fish need. With draw the lawsuits against the state water board. Thank you. Thank you for sharing your comments. Next caller, 2 minutes. Commissioners. Once again you hear somebody Say Something and you agree with her. So yall get the report of how much salmon were counted this year in the Tuolumne River. So where is the Empirical Data . We all know how to do a Needs Assessment on the Empirical Data. So yall have the audacity to go and file a lawsuit but you dont have the right frame of mind to dot Empirical Data that is affecting the salmon in the Tuolumne River. Yall should feel ashamed of yourself. Somebody coming and saying something and yall agreeing. So, what peter is saying from the last workshop we had, does in the Pay Attention to the workshop. Yall have the audacity to challenge the state with a lawsuit. Think about it. Thank you very much. Thank you for sharing your comments. There are no more callers. Public comment on item 5 is closed. Thank you. I have could you. Please read the next am why. 6 and 7 will be read together. Thank you. Item 6 public hear to consider adopt a 3 year rates for Retail Water Service in San Francisco and suburban areas effect with meter reading after july 23. Institutes the action of the project purposes of the California Environmental quality act or ceqa pursuant to code section 31. 04h. Planning department determined this is exempt from ceqa. Item 7, public hear to consider and aadopt a 3 year schedule of rates for Sewer Service in San Francisco to take affect on or after july 1 of 23. This action institutes approval action for propers of the California Environmental quality act pursuant to code section 31. 04h planning said this is exempt from ceqa. To clarify, there will be one presentation for the 2 items well call for 2 separate Public Comments for each item separately. You will have a chance to comment on each item separately. With that, go ahead and. Good afternoon. Im erin your Financial Planning director and im here to talk about a proposal to increase the water and sewer rates for the next 3 fiscal years. As the secretary went through there are 2 items this covers both. You will be getting 3 separate presentations from myself on the finance portion of the rates increase. Come our communication director on the out reach we have done. And from the chair of our rate fairness board on that bodys review of the rate proposal. Observe i dig in to the content i want to thank a few people. These studies take effort across the agency and there are folks not here today who did a lot of work. Matthew fryburg the project manager for this program. He would be here give thanksgiving presentation but taking a much needed Family Vacation and im glad to give him it time off. Angela lawary cord nayed the legal required out reach and above and beyond to ensure we reached as many people in San Francisco as possible. She is amaze and im grateful for her support. Assil discuss in the presentation this rates proposal includes a culmination of multiyear effort to break out a storm water charge part of sewer rates that project had people across puc working on it over the years. I want to thank 2. Ragender in it managing the billing system upgrade needed to manage tht learning pest change to the billing system in history and done an incredible job. We have a lot to thank him for. Willis in wastewater done a great job providing gif analysis needed to support this effort. Again if you receive information from our agency from gif regarding storm water have you will to thankism spent too long but thanks and gratitude to everyone i mentiond and those i have not we would not be here without your help. Thank you, everyone. Moving on to the presentation. I will start with i background on that the rate study was and how we got here and dig in the details of water and sewer rate proposalless themselves. The San Francisco charter requires the puc hire an inspect rate consultant every 5 years for each to analyze finances and recommend rates needed cover our costs. Our left rate study complete in the 2018 we were due for another. We hired consultant request for proposals in march of 2022. And they had been at work with staff over the year developing the rates here today. Among the requirements i want to highlight the compliance with california prop 218. And requirement that rates meet cost of Service Principles i will talk about this more at the core requires detailed Financial Analysis in order to ensure our rates are fair and equal it is one thing to do it correctly if you are not transparent there is no point. So anot