Transcripts For SFGTV Public Utilities Commission 20240707 :

mayor breed's 45th supplement to february 25, 2020 emergency proclamation. i like to remind all individuals attending today, all health and safety protocols must be adhered to all times. hand sanitizer stations are available throughout the building and masks are available. we welcome the public's participation during public comment periods. for each item the commission will take two minutes of public comment. first from those attending in person and then those attending remotely. members of the public may provide remote public comment by dialing (415)655-0001. meeting i.d. 2481 759 6071 # #. pressing star 3 to raise your hand to speak. please note you must limit your comment to the topic of the agenda item being discussed. if you do not stay on topic the chair can ask you to limit your comment to the agenda item. we ask you address your remarks to the commission as a whole and not to the individual commission or staff. i like to stand our thanks to sfgov tv staff for their assistance during this meeting. >> president moran: before calling the first item, i like to announce that the san francisco public utilities commission acknowledges that it owns and stewards of the unceded lands located within the territory of the ramaytush ohlone tribe and other of the historic federally recognized mission of the alameda county. sfpuc recognizes that every citizen residing within the greater bay area continues to benefit from the use and occupation of the tribes of general land since its founding in 1932. it is important that we not only recognize the history of the tribal lands on which we reside but we honor the fact they have established working partnership with the sfpuc. please call the first item. >> clerk: item 3, adopt new findings to allow hybrid inperson meetings during the covid-19 emergency. direct the secretary to agendize similar resolution at a commission meeting within next 30 days. >> president moran: please open public comment. >> clerk: members of the public who wish to make remote public comment on item 3, please press star 3 to raise your hand to speak. any members of the public present who wish to provide public comment? seeing none. are there speakers with their hands raised? >> there are no speakers in the queue now. >> clerk: thank you. public comment on item 3 is closed. >> president moran: thank you. any discussion by the commission? seeing none. a motion and a second. moved and seconded. roll call please. [roll call vote] you have four ayes. >> president moran: thank you. next item. >> clerk: item 4. approval of the minutes of may 24, 2022. >> president moran: any addition or corrections to the minutes as distributed? seeing none. open for public comment. >> clerk: members of the public who wish to make remote public comment on approval of the minutes, press star 3 to raise your hand to speak. do we have any members of the public wishing to speak? >> there are no callers in the queue. >> clerk: public comment on item 4 is closed. >> president moran: any further discussion? seeing none, may i have a motion and a second? >> moved in >> second. >> president moran: moved and seconded. roll call please. [roll call vote] >> clerk: you have four ayes. >> president moran: thank you. next item. >> clerk: item 5, general public comment. if you wish to make general public comment within the jurisdiction and not on the agenda, please press star 3 to raise your hand to speak. do we have members of the public present who wish to provide general public comment? seeing none, do we have callers with their hands raised? >> there are seven callers in the queue. you have two minutes. >> caller: commissioners, i would like from time to time that we give some sort of report on our treatment plans. also, if you really following the rules and mandates of the protection agency. we, the people, need to know this. secondly, we see that many of the vacancies linked to the management, they are filled by whites. i don't discriminate against whites, but of all the positions are filled by whites, i have something to say. i want to ask for the freedom of information act and get all the information. let's not talk about racial equity and you do the opposite. i have a concern about the community benefit. we now want to know -- [ indiscernible ] what is being done? i see that it's about $250 for the 1550 evans project. >> thank you for your comments. your time has expired. next caller. you have two minutes. >> caller: in a june 12th article in the modesto bee, one way to help heal central valley while correcting political favorite, the paper editorial board stated that in the past, $10 has been spent on sacramento river floodplain planning for every one dollars on the san joaquin river. it appears that is now budgeted demand of $110 million to flood management in the budget for the department of water resources, d.w.r. i would urge the p.u.c. to contact the city sacramento lobbyist to confirm the $110 million amount for 2022-2023. if it's not in the budget line item, then advocate that $110 million be included in a budget trailer bill, designations for the san joaquin river and tributaries including the tuolumne. new subject, -- [ indiscernible ] >> thank you for your comments. next caller. you have two minutes. >> caller: my name is alex. i'm a recreational -- [ indiscernible ] on the tuolumne river. i will voice my support for recreational on the tuolumne. tuolumne has a very long storied history, being one of the more prominent recreational rivers in california, dating back over at least 50 years. it is a fantastic opportunity for people to raft and kayak at a variety of difficulty levels and adventure levels. i appreciate moving forward the tuolumne to continue to be an option for everyone to enjoy. thank you. >> thank you for your comments. next caller you have two minutes. >> caller: mr. chairman and members of the commission. i'm a president and executive director from california outdoors where an outfit trigger association for california. i wanted to, actually, -- we are appreciative of your staff and your organization's continuing work with the stakeholders who utilized that resource. it's incredibly important, not just recreation but also for the economy in the local area. i wanted to voice our continued support for the work that you folks do. thank you for your time and your service. >> thank you for your comment. next caller, you have two minutes. >> caller: i'm going to speak about governance. i was shaken from results of mrc record act request. in the p.r.a. provided an analysis on the frequency of the design drought, something that's been requested many times. to my understanding, not even commission president moran has seen this analysis. staff hadn't shared the analysis because the data quality issues. event the memo to file had a wealth of information. it's bad news when a p.r.a. provides significant information that hadn't been disclosed. this brings me to governance. we have an outstanding set of commissioners. you bring valuable expertise and views to the commission. you also work well together. not to put words in your mouth, i think you say public agency such as p.u.c. should be transparent. this is the problem, you have no ability to oversee and influence staff. the p.r.a. is an example of a transparency problem. you as commissioners should have had prior knowledge what was provided and shouldn't have been a surprise to you or the public. when i served board of directors, the expectation is that board requests revolved quickly. not measured in months and quarters. my question is recognition. does staff reflect the values you think are important for public institution and have you been able to influence sfpuc's behavior. i have high hopes for the new sheriff in down. town. if you agree with the problem, direct discussions need to be had. thank you, i will provide a copy of my comments for the record. >> thank you for your comments. next caller, you have two minutes. >> caller: can you hear me now? >> loud and clear. >> caller: this is david pilpel. i appreciate michael carlin for their work and upcoming well reserved retirements. i wanted to share condolences about kencray meyer, you might have read about him in the chronicle. he's the former director at a jewish summer camp up in the tuolumne that shares some resources with the p.u.c. he was very active as is the camp in the route 120 association and concerned about our water resources. i already spoke at the revenue bond oversight committee meeting this morning. i wanted to balance that out. to the sfgov tv staff who i hope are listening, please review and update the screen graphics which still refer to agenda information at sfwater.org. that should read sfpuc.org. staff need to check those. that will be great. finally, i hope you all had a good weekend wherever you were this past weekend. that's all for me today. >> thank you for your comments. there are no more callers in the queue. >> clerk: general public comment is closed. >> president moran: thank you. commissioners, any questions or comments on the communications that were provided to us? >> clerk: that's for item 6? >> president moran: i do have one question. item 6c is quarterly report on the alternative water supply program. for the past couple of meetings, bawsca requested information similar to this. mr. general manager, can you help us put this report in context with what outstanding request is? >> i think that, mr. president, as you're aware, bawsca represents our biggest set of customers. i know they have an intense interest not just understanding where we are at, our conversations with the state with hetch hetchy water, but also, they take an interest in just ensuring the long-term security and viability of the water supply for the bay area. so, we are in active constant communications with bawsca and ms. sandkulla. what you see should provide some comfort on one aspect of our work ensuring long-term security for our water supply. this is something that we're actively sharing with bawsca about what our effort are. it is by no means, the only avenue that we're communicating with ms. sandkulla on. outcomely-- obviously, there's been intense discussions going on around the bay-delta plan. we are actively engaged. i'm trying to provide a level of detail with the effort that we're undertaking. which i know that this commission has intense interest in as well. we're intensifying our discussions and our advisements to bawsca and ms. sandkulla. commissioner maxwell? [ indiscernible ] i don't have any further questions on c. [ indiscernible ] >> i got the gist what you're asking about. >> president moran: i'm done with that item. if you like to move on to the next one whatever it's labeled. >> commissioner maxwell: it's recycled water and purified water opportunities in san francisco. i found the report to be very helpful. i appreciated the fact that we're looking -- that we looked outside to see where we can put a purified water. we came to the conclusion that will be better may be using our plant, the southeast and looking at other places near that. i really appreciated that. because the real estate, 35 to $65 million -- thank you. >> real estate is probably the single biggest issue in trying to locate a plant site in san francisco where real estate is so valuable and hard to come by. >> commissioner maxwell: do you think that even the real estate were the same that it's better where it is? using the southeast plant and using and going on near the plant. >> yes, newcombe. the plan will be better if we can fit it in there. that opens up seven acres of property. that's a lot of land. it's in a good place. >> commissioner maxwell: i meant on newcombe? >> yes. >> commissioner maxwell: well, thank you. >> president moran: i understand the commissioner ajami has a question. >> vice president ajami: i wanted to ask and share my appreciation for both reports. i appreciate the the alternative water supply report and the fact that they have highlighted each part has been updated. i appreciate the staff putting that together. >> president moran: thank you. any other comments or questions on communications? seeing none, can we open this to public comment? >> clerk: members of the public who wish to make remote public comment on item 6, please star 3 to raise your hand to speak. do we have members of the public present to provide public comment on item 6? seeing none. do we have any callers with their hands raised? >> there are two callers in the queue. caller, are you there? i opened your line. i will try -- next caller. you have two minutes. hello, caller, are you there? madam clerk, i think those were eroanously in the queue. >> clerk: thank you. public comment on item 6 is closed. >> president moran: okay, thank you. next item. >> clerk: item 7 is report of the general manager. >> thank you madam secretary. 7a is a drought condition update from steve richie. >> good afternoon, general manager for water. i should have mentioned when i was up here last time, one other comment on the communication the bawsca, there's a monthly detailed e-mail that send to them. i wanted to throw that one more piece in there. now we're talking about the drought update. you can see from the reservoir report, hetch hetchy is full. cherry is full. eleanor is basically full. water bank is down about 240,00. it has been exercised and making sure we fill our reservoirs up country. then the reservoirs in the bay area have been topped off with excess water. it's been a decent runoff year for us. next slide, the statewide picture on reservoirs. pedro is doing much better than both of those. again, the tuolumne river is doing well. the statewide drought picture from the california drought monitor shows large area of exceptional drought, extreme drought and severe drought. our reservoirs tend to be in the area that's severe drought. that's still not great condition to be in. we're basically getting the precipitation season. we do expect to see more here and there. hetch hetchy is pretty much flattened out. we did have about tenth an inch of precipitation from the last storm up there. snow pack is pretty much gone, runoff is pretty much ended in terms of high volumes. water available to the city has pretty much topped out at about 200,000-acre feet, which does not mean we does not fill our reservoirs, what it does mean, we had three years of water bank drawing down dramatically. this year, we're getting little bit of reprieve there. there's enough water. i think peter drekmeier pointed out, that's about the same amount of water we're delivering to people. water bank has not been drowned down much. it's been good for our long-term storage situation this year. you can see, again, 200,000-acre feet opposed toics hundred thousand. that would have filled full storage for us. just to be clear, full storage means full storage in all of the reservoir that can receive hetch hetchy water. which have the upcountry reservoirs plus crystal springs. for the precipitation, again, three really wet months and other months that weren't so wet has resulted in us getting to 2r upcountry. in the bay area, we are above average for the entire year. there has been a fair amount of precipitation here in the bay area. but there are no storms on the horizon. we don't see anything coming. i don't think we'll see much before the new water year in october. again, something we're paying close to attention to, total deliveries. you can see here that delivery, last week 207 million gallons a day. that's getting us back down closer to the 200 million-gallon a day mark that i'm looking forward to. one last comment, we were in the news this last week because the state reinstituted a number of the curtailments in the system. the only large urban agency that was affected was the san francisco public utilities commission. we were part of the headline in all those cases. they have been suspended since last october. they suspended them when we started to get real runoff. that extended until last wednesday. people asked what are we doing? we are currently making no changes in our operations while the irrigation districts are diverting through diversion rights of theirs that are not curtailed. basically, water we're putting down in the system and water from water bank, they are able to divert into their irrigation canals. water bank is part of that process. this is all part of our physical solution on the tuolumne river in the fourth agreement. we're operating under that to take care of the tuolumne river. final note, the districts are continuing to make releases in compliance with the ferc license plus an additional 50 cubic feet per second that we're releasing the summer flow, which have been doing for most of the 2000s. i'll be happy to answer any questions. >> president moran: thank you. commissioner maxwell? >> commissioner maxwell: thank you for that. are the districts making any changes in the way they do business in their water usage? are they making any system changes? >> well, what the districts generally do in times of drought, i don't know exactly, this is more generic answer, they -- as the year progresses, they talk about how much water they deliver to their farmers. they are aiming for about 48 inches of irrigation water over the year. i don't know what they are doing now. in times of drought, they generally cut that back depending on water conditions. their farmers follow crop or shift to ground water. >> commissioner maxwell: my guess my question is, we're seeing -- i think there was a an article that grape growers saying, we were over watering long time. our grapes doing better now. is anybody looking at how they are growing? is there an ongoing -- we have all these institutions of higher learning that can be helpful. >> i can't speak for the industries. i do know that there are very active programs looking at different types of research. there are people doing creative things on their own here and there. they are working on the macro scale in terms of water supply. in terms of actual on the ground, relative to their crops, i don't know if they actually do that or they leave that to their individual farmers. ag extension is very active throughout the san joaquin valley there. milwaukee we're wholesalers but we have programs for individuals. we have things that we are doing changing toilets and faucets. >> i know that various irrigation districts do different things in different days. they invest in their system. very interesting one is oakdale irrigation district, which has transferred lot of water where they are paid for their water. that money does get plowed back into efficiencies in their system. that's one of the things that we have talked with the irrigation districts about over time. although, we've never been able to effectuate a water transfer. that's one of the things we think should be of interest to them. >> commissioner maxwell: thank >> president moran: commissioner , what i do know about irrigation practices, it's all anecdotal. wouldn't really give you a correct overall picture, i'm sure that the irrigation creates have that information in a public form. that will be good to distribute to this commission. >> we can do that. good example is, there's lots of drip irrigation going in. on the other hand, the flood irrigation that they do, anything used by the plants, generally is recharging the ground water basin. they are active water managers. we can get that information and provide it to the commission. >> commissioner maxwell: i would appreciate that. thank you. >> president moran: thank you. any other questions for mr. richie? seeing none, mr. general manager? public comment please. >> clerk: public comment on 7a the drought condition update. if you wish to make public comment on the drought condition update, please raise your hand to speak. any members in the room wish to provide public comment? seeing none, do we have any callers with their hands raised? >> there is one caller in the queue. >> caller: this is peter drekmeier policy director from the tuolumne river trust. i appreciate mr. richie's presentation. lot of good news here. i i'm looking at a slide, it's tuolumne river water available to the city. as i mentioned before, i think that looking at the deficit reaching full storage makes people more nervous than they should be. the sfpuc has a lot of storage. the system was built for the time when demand was projected to be twice what it is today. we got lot of wiggle room there. in this slide, it shows that water available to the city this year is 201,000-acre feet. that's just water from it tuolumne. i understand that we've got about 44,000-acre feet from the bay area watershed. bringing the total 245. current demand is about 220. san francisco picked up more water than it needs. that's very positive. there's concern about the bay-delta plan. it's 20% of unimpured flow from february to june. if you look at that annually, it's 14% of annual flow. san francisco might be responsible for half of that, about 7% of unimpaired flows. which is not much. if you ask staff to model what will the situation look like had the bay-delta plan flows would have gone into effect a year ago. we would have never got that flow on water. i hope we can work together to understand how good the sfpuc system is. it came up partnering with the irrigation districts, i think that's a great idea. we talked about that a lot during water sustainability. >> thank you for your comment. your time as expired. there are no more callers in the queue. >> clerk: public comment is closed. >> 7b is hetch hetchy capital improvement program quarterly report by kay miller. >> good afternoon. i'm katie miller, director of water capital programs. the hetchy capital improvement program project made great progress in the third quarter. during the shutdown, a new generator step up transformer was installed at the moccasin power house. this transformer is now in successful operation. also during the quarter, the first of many future new valves was installed along the san joaquin pipeline as part of the san joaquin pipeline valve and safe entry projects. i hope you will join me in extending congratulations to the operation staff from water enterprise, who operated the bay area water treatment plants to supply water to the entire regional system during this time. for the very effective shutdown planning and communications that went into sustaining the shutdown for over two months. this was a critical test that will allow shutdowns of the system over the next five years to complete construction of these hetch hetchy projects. today, i have a treat for you. instead of my usual summary of the quarterly report, i will share a video that was made by the mountain tunnel improvements project team. together, with our communications staff and the sfgov tv production crews. this film was made to share highlights of the recent mountain tunnel construction shutdown. especially since we were not able to offer tours this year. this video is about four minutes long and presents an overview of the project. we hope you'll enjoy it. [video] >> this system delivers drinking water to 2.7 million people in four bay area counties. the majority of the water provided to customers comeses from fill milk collected from hetch hetchy. this water passes through a complex system of pipeline, tunnels and hydropower plants before it leave the sierra nevada mountains across the central valley and bay area. mountain tunnel transmits drinking water from hetch hetchy reservoir and then kirkwood power house where it generates hydropower. the tunnel was constructed between 1917 and 1925. >> mountain tunnel brings sfpuc water system from the main fork of the tuolumne river to our facilities over at priest reservoir. >> the hetch hetchy supply is the largest water supply for san francisco and our regional customers. it consist of 85% of our water supply. all of that water flows through one conduit and that's the mountain tunnel. the tunnel is almost 100 years old. the lining of the tunnel has dedeer -- deteriorated. what they are doing is replacing that deteriorated lining. >> although, it continues to serve our 2.7 million bay area customers well for more than 90 years, it's in need of rehabilitation. inspection showed that years of continuous service have resulted in deterioration of the mountain tunnel lining, among other problems. these deficiencies diminish the ability to provide drinking water to our customers. make it difficult to perform maintenance in the tunnel. the sfpuc and our regional partners launched the mountain tunnel improvements project, to repair deterioration inside the tunnel. crews will construct a new shaft to expand to improve water quality. and construct entirely new entry point. >> i call it putting a heart beat in the system. we're going to be putting in flow control facility shaft, with gate control valves where we can control the pressure and give operation little flexibility to hetch hetchy water and power for long-term use. >> construction on the seven-year project began in 2021. construction inside the tunnel is only occur when the entire upcountry system is shut down. these will occur for a few months every winter when sfpuc customer demand is low and can be support the by a bay area reservoirs. crews must work quickly and safely in wet dark conditions inside the tunnel during the shutdowns. time is of the essence. the project is part of a larger hetchy capital improvement program, hcip, a multiyear capital program to improve water convenience, water storage and power generation facilities in the sierra, nevada portion of the hetch hetchy regional water system. >> to be able to work on a project of this magnitude for the city and county of san francisco, for hetch hetchy, water and power, it's really a legacy project for myself, also. i'm happy to be on it. it's been very exciting. it's really fun work. if you like civil construction, this doesn't get any better than this. >> thank you very much for your attention. >> president moran: thank you. any questions? public comment please. >> clerk: members of the public who wish to make public comment comments on 7b, please press star 3 to raise your hand to speak. do we have members of the public present wishing to provide comment? seeing none, do we have callers with their hands raised? >> there are no callers in the queue at this time. >> clerk: public comment on item 7b is closed. >> president moran: thank you. >> item 7c a wastewater enterprise quarterly report including southeast area, major projects update. steve robinson will be presenting. >> good afternoon. steven robinson, director of away weatherer capital improvement program. as usual, we include some additional more current updates. starting as usual with a few construction updates around the city, the first project is one of our large diameter projects around the new montgomery mission neighborhood. we did seek and obtain approval from the commission back in february this year to add four more blocks to this project. construction is commenced and progressing ahead of schedule. the project uses a method called cured in place pipe, or cipp. which you can see in the photo here. the second project here in the middle is the westside pump station reliability and improvement project. the construction started april of last year, completion driving towards february 2024. the third image is the wawona area storm water improvement project. you can see here is a tunnel and jack and pit. it's approximately 1400 feet of 1800 feet already drilled. microtunneling from the 20th street progressing towards the receiving pit. there's also home cut to this project. we're putting a new sewer in heading east uphill at a rate about 5 to 8 sticks. that's about segments of pipe. these are usual pie charts that show program status. representing the usual $3.655 billion. now just nudging forward 49% complete. the blue area at the top remains unchanged. in green, you see 17 projects now in construction with 46 in gray to the left. this table shows our financial budget update. table three from the quarterly report, shows summary cost for ruling of phase one that we talked about and the other projects that have been added since then. these columns summarize the expenditures, the forecast and the variants. the variant shown in red totally $925 million is the same as last quarter. with only exception of that $7.1 million you see here, which is actually a decrease. that's good news. however, three projects were initiated this quarter. this decrease corrects an over forecast from the previous quarter. now the numbers you see here are aligned what's been approved in our capital budget. just like the previous slide, this table shows the facilities on infrastructure section and the program itself representing the current approved and forecasted cost and the variants. this variant shows $13.2 million over the current approved budget with good news of $2 million from the last quarter. this was all adjustment that's been captured from one of the projects. few highlights from some other projects, this quarter we initiate nine other projects. they represent a variety of work all across the city from all three plants and within the collection system. the second bullet here draw attention to completing engineering work for two projects. that represents getting toward end of our planning phase project for conceptual engineering. third project is 95% of design in the chinatown. it's the power feed on primary switch gear update project. providing power to the plant. you can see the two tower cranes in the background. with that, we'll segway into the update for the three major sites. we reported the significant cost increase back in january of this year. there's no change. we're all coming to the commissioning with amendments both construction and design contracts in the near future. we began with placement of the matt foundation. there's been four of the five pours complete sod far. -- completed so far. these are around 2000 cubic yards each time. typically starting 2:00 a.m. over the weekend to minimize traffic in the community. those pores have 20 to 30 concrete trucks per hour. really significant. so far, they've all gone really smoothly. last bullet is just acknowledge bid procurement is continuing for the rest of the project. for the head works facility project, same forecast from last quarter. also captured in the budget process, the 10-year capital plan, no change. meanwhile, there's some ongoing relocation of the existing pump station of that facility, began installation of duct work associate with new order control facility. i might remember those adjustments made in design for both existing station and order control facility. our last slide is for the southeast community center. at the last meeting there was an approval to increase the contract. we're going from $114 million to 115. construction is 98% complete. we're close. we have been reporting some potential delay with pg&e and energizing the permanent power. but the connection did go live in april. bullet here shows substantial completion anticipated for august 1st. with that, i'm happy to take any questions. >> commissioner maxwell: are we building the digesters? are they coming in, already built? >> they are being constructed from concrete. what i described was the mat foundation going down first and then the floor. now we're sealing that. >> commissioner maxwell: these are egg shaped? >> the digesters we have -- these ones are traditional. very effectively straight cylinder. >> commissioner maxwell: i thought we were getting some new kind of design but we're not? >> we like to think of this as state-of-the-art project. you can think of those as your stomach, digesting it. but system that feeds the material into that digester is the modern technology. we're using water and technology. >> commissioner maxwell: the digesters are the same but it's the inside that's different. >> yes, getting the material to that digestion process is where the extra new technology comes in. >> commissioner maxwell: thank you. >> commissioner paulson: going back to the head works, i know we did a pause some sometimes back in terms of cost. i know we approved some moving it forward. i probably should know all this, since i'm here, are we on -- going to be in position to make some more cost approvals that are needed as this rolls out after the original pause? i don't remember if we've approved everything moving forward or if we have couple of more pieces that we have to approve. >> you mentioned headworks? headworks has been moving it ahead fairly well and on schedule. biosolid project is one we had to take a pause. we looked at the contract mechanism. we committed sticking with the cmgc, the construction management general contractor procurement model. a team is in place now. >> vice president ajami: thank for your presentation. i have a question. not exactly related to your presentation, but, relevant enough. few months ago, we talked about an effort to accumulate some day how we've been contracting and working the various groups and how the contracts has been on time and delayed. i was wondering where we are with that? >> you may recall, we made some changes to our quarterly report format few cycles ago. part of that process was to put a new format structure in place. between then and now, we are setting up a database. we trying to dag all of those -- to tag all those projects. >> vice president ajami: thank you. you want to look at all of them, not just the ones that had problems. but also the ones that were successful. we all focus on the problematic ones, but every day, there's also lot of projects. you supposed to look at every single one of them and creates some information using that data. thank you. >> agreed. >> president moran: any other questions or comments? public comment please. >> clerk: members of the public who wish to make remote public comment on item 7c, please press star three to speak. seeing none, do we have any callers with their hands raised? >> there are no callers wishing to be recognized. >> clerk: public comment on item 7c is closed. >> item 7d is cleanpowersf integrated resource plan. cheryl taylor will be presenting. >> good afternoon. my name is cheryl taylor, cleanpowersf operations manager for the sfpuc's power enterprise. i'm here to present overview of cleanpowersf 2022 integrated resource plan. state law requires that we submit a resource plan to the california public utilities commission every two years. integrated resource plan is an energy planning tool or process used by energy service providers like cleanpowersf to support achieving policy goals and meeting regulatory requirements. essentially, the plan is a long-term projection of our energy supply and demand and identify energy resource options that can meet plan objectives and in conform with the goals. i like to define key terms. a portfolio is a collection of the electric generation resources to meet customer's demand. the second term is a new one that i added since you received the packet it's conforming portfolio. it's a specific mix of electric generation resources that ultimately meets the requirements. scenarios examines variationings of a future state or objective that may influence the resources included in a portfolio. scenarios can include multiple policy objectives. tskup finally, sensitivity analysis on these scenarios in which we change an assumption to understand its influence on the portfolio. i like to recap our 2020 plan. in our last plan filing, we presented aggressive goals to achieve 100% renewable energy by 2025, which is in line with the goals and the city's climate action plan. this bar chart identifies our progress and the annual planning targets we used in the 2020 plan. the light and dark green bars reflect renewable energy under contract or which we plan to contract to meet the demand each year. you see that yellow dotted line shows california's renewable portfolio standard requirement. diving into the objectives of the i.r.p. we set five primary goals for achieving and maintaining 100% renewable energy in our 2022 plan. we want this plan to identify a realistic path for getting to 100% renewable energy. we're planning in the context of higher demand and worldwide supply change disruptions. in california, project interconnections are backed up due an unprecedented number of applications. two, this plan will update information about our local power supply. in our 2020 plan, we identified 81-megawatt of local solar. three, the plan will reflect our city's commitment to electrification. our city's electrification targets affecting cleanpowersf total demand include electric vehicle adoption goals, building electrification targets and new construction policies. four, the plan must also enable us to deliver affordable service. we must ensure that our lower income customers are not disproportionately harmed by our energy transformation. as you know the inflation rate is now the highest it's been in a generation. this means setting a realistic and opportunistic timeline that might capture projected cost declines. finally, the plan must support electric reliability. simply put, this means that our plan must demonstrate cleanpowersf's contribution to the cpuc's electric power reliability requirements. in developing the 2022 plan, we need to balance program goals to land at a portfolio that is at the intersection of all of these priorities. diving into our modeling portfolios, we will model a total of six portfolios, four of which will be conforming. by conforming these portfolios will use only the required cpuc input and across all of these portfolios, we'll model achieving hun% renewable energy by 2025 and local resource prioritization. we'll also submit two alternative portfolios that deviate from the cpuc input by san francisco local electric vehicle. all portfolios will reflect the impact of recent global macroeconomic events. plans are great. as mike tyson said, everyone has a plan until they get punched in the mouth. we have to plan for the unexpected, which is always an inevitable occurrence. we'll subject our models to three main sensitivities or what ifs. what if vehicle electrification happens even faster than current city goals? what if building electrification happen faster current city goal. all of this gets us to the preferred portfolio. the preferred portfolio will tie together sensitivity analysis, updates to our local renewal analysis. after we greet our analysis, we'll return to the commission in september to present our summarized reports and informational report. in october, we'll come back to you to recommend a preferred portfolio for you to adopt. that's the portfolio we'll submit to the california p.u.c. what we submit to you will serve as a resource road map for cleanpowersf for the next two years of power-purchasing and energy resource development activities to meet program goals through 2032. it's very important to us in this process that we hear from community and interested parties and ultimately, selectly a portfolio we submit to the california p.u.c. we created multiple venues for community members to participate and stay informed about the planned development. one is through an online survey that opened earlier this month and closes july 5th. we have dedicated site on our web page for people to get information and stay informed. in closing, our next steps will be to model the plan portfolios through august 2022, beginning august through september, we'll be seeking community feedback on the modeling results. after the analysis is completed, we'll present finding and information report in september. finally, we'll return to you in october to present our recommended preferred portfolio and seek your approval prior to submitting to the california p.u.c. by november 1st. that concludes my presentation. i'm happy to answer any questions you might have. >> president moran: thank you very much. >> commissioner maxwell: thank you very much. i was glad to hear that you are going to come back with the community input. how much is that community input will you consider? >> that's a really good question. i might want to have our director come up and talk about the community input that we'll incorporate. >> commissioner maxwell: i was thinking, supposed the community said, in that program, we like to hear about green jobs. we like to hear about how all of of this is going to ache difference to our community. should we tell our kids, look, think about going -- this is where we're headed -- think about going into this field. community input might include something like this. >> mike himes director of the cleanpowersf program. our first goal is to really listen to the community and hear that kind of interest. what is the community's interest in the planning process. i think, what we -- the action that we can take in response is going to be little dependent on whether it's within the frame of the i.r.p. questions like that about green job creation, things that can happen in the community, some of that may be slightly to the initiative. delivering an i.r.p. plan. >> commissioner maxwell: what about outreach? do you have a plan for the outreach and is it something that we can see and send to us so we have an idea who in the community you're talking to? not everybody is interested. who in the community and are you trying to get people more interested in what you're doing and how is that happening? >> we can share more information with this commission. we're casting a very wide net. my understanding, i think, prior to workshops that are taking place next week. we've reached out to something like 600 organizations, p.u.c. frequently reaches out to. we can report specifically -- >> commissioner maxwell: have you broadened that since you reaching out to people you normally reach out to. this is a big deal. it's a big deal because san francisco, as you mentioned, is talking more and more about electrification. >> yes, i understand that we have cast even broader net in the outreach this time around than last time around. listening to comments from community members from couple of years ago. we have reached out to some of the usual suspects, environmental climate organizations, also racial economic justice groups, political organizations as well, customers too. sort of really inform the plan. there may be some really good opportunities to incorporate some of that feedback into the plan that goes to the cpuc. that wouldn't stop us from implementing some of what the community members have requested on the ground. on the other hand, we have this regulatory process, we also live here in the city and provide service. we can be probably responsive. >> commissioner maxwell: thank you very much. thank you for your enthusiasm. i appreciate that. we had some of that last commission meeting too. good stuff. thank you. >> president moran: thank you. >> commissioner paulson: thank you for the questions. i was thinking of asking similar outreach questions and only reason i'm asking this question, you did a backhand list of community and political whatever. i didn't hear the word labor. are you reaching out to labor organizations? you said 600 organizations, that's probably like 1/90 what we have in san francisco. there's an organization on every corner. is labor officially on that list? >> my understanding, labor is on that list. we can return to you i believe in september, sort of with a full accounting or may be before of our approach. >> commissioner paulson: does in go to the san francisco labor council, which is the umbrella organization. i'm assuming that represents hundreds of thousands of workers. >> yes. >> commissioner paulson: i see nodding. >> president moran: i had a question. you distinguished between conforming and non-conforming portfolio. can you give some examples what will be non-conforming projects? >> what i would say is a non-conforming portfolio would capture local inputs. the conforming portfolios, the state sets this process for statewide low serving entities including pg&e and etcetera. lot of the inputs, the low profiles, are delivered to all of us. the ones that we get may or may not be the closest reflection of what we know sort of the reality of what demand is or what it might be in the future. one of the things that may sort of not be as close to the reality as we think will be, is building an electrification. especially given some of the recent policy changes, sort of the san francisco's code. >> commissioner maxwell: that's non-conforming? >> yes, that's the alternate post. >> president moran: any other questions or comments okay, public comment. >> clerk: members of the public who wish to make remote public comment on 7d, please press star 3 to speak. do we have members of the public present who wish to provide public comment? seeing none, are there any peeks with -- speakers with their hands raised? >> there's one caller in the queue. >> caller: good afternoon, i want to talk about the i.r.p. i'm in favor. i'm finding on page 4 to be little bit confusing and unclear. i like to see a clarification and how it will decrease. while we're at this stage, we have only 2.5% unspecified power. i would like to see the chart clarified further to be able to make the distinction in the upcoming year since how much the actual renewal percentage will increase. this clarification is important so we don't mistake renewable for 100% carbon free. 100% free is a good thing. we're almost there. the problem with large hydroelectric, it's highly drought dependent. i'm not against hydroelectric, we want to clarify our movement away from that toward the 100% renewable based on the eligible renewable categories of generations. >> clerk: public comment on 7d is closed. >> this concludes my report. >> clerk: thank you. >> president moran: thank you. next item. >> clerk: item 8, new commission business. >> president moran: any new business? seeing none. next item. >> clerk: item 9, consent calendar. >> president moran: any request for item to be removed from the consent calendar? seeing none. public comment please. >> clerk: members of the public who wish to make remote public comment on 9c, the consent calendar, press star three to raise your hand to speak. >> there are no callers in the queue. >> clerk: public comment on item 9 is closed. >> president moran: thank you. commissioners, may i have a motion and a second on the consent calendar? >> commissioner maxwell: move to approve. >> second. >> president moran: roll call. [roll call vote]. >> clerk: you have four ayes. >> president moran: the consent calendar is adopted. next item. >> clerk: item 10. adopt a resolution pledging commission support for lgbtq plus pride month, june 2022 in the city and county of san francisco. >> president moran: mr. perl. >> good afternoon, happy lgbt pride month for 2022. charles perl, deputy c.f.o. june is lgbtq pride month in san francisco. i'm proud to present and represent sfpuc staff and the executive team today with this resolution that's before you requesting commission formally voice, it's approval and support of san francisco pride for this year. commissioners, pride month in june has been a time to both celebrate and recognize in a visible way the many accomplishments and continuing challenges facing the lgbtq plus community. earlier this year, sfpuc staff formed the first lgbtqia+ employee group with a focus on engaging employees beyond the day-to-day mission of the agency. this employee group worked with support from the executive team to develop the resolution that's before you today. commissioners, your support for lgbtq pride month is important. it is a visible symbol of supporting not only sfpuc employees but also our agency's place within the broader san francisco community. i thank you for your consideration of the resolution. i'm happy to answer any questions and happy pride. >> president moran: thank you. any questions? >> commissioner maxwell: i've been talking a lot. thank you for doing this. i think it's important. it's an important step that we are recognizing. we are recognized as understanding the importance of being a part of the world. everybody is important. thank you. >> president moran: thank you for bringing this forward. >> i was surprised. >> president moran: any other comments? public comment please. >> clerk: members of the public who wish to make public comment on item 10, please star 3 to raise your hand to speak. seeing none. do we have callers with their hands raised? >> there's one caller in the queue. >> caller: thank you, again. this is important. i support. i hope you do too. [ indiscernible ] i hop it will be unanimous. you will all be on one accord supporting this resolution. this is an important piece of resolution. i'm a person who's not particularly definition accepted by society, i'm a person just as much. i want to be treated like everybody else would. i don't know if other people will speak on this. i hope they will be in support. this is not an easy thing for people to support. it's a necessary thing. that's why i'm speaking on it. we the people, who under the lgbt umbrella, we should never feel that we have to feed our identity. i asked that you acknowledge how present -- [ indiscernible ] i ask that you pass this. i hope that your vote be unanimous. thank you. >> there are no more callers in the queue. >> clerk: public comment on item 10 is closed. >> president moran: thank you. any additional comments from the commission? motion and a second please. >> i'm proud to move this resolution. >> president moran: roll call please. [roll call vote] >> clerk: you have four ayes. >> president moran: item passes. thank you for bringing that to us. next item. >> clerk: item 11. approve the use of certain form of contracts to purchase and sell electricity and related products delegate to the general manager authority to execute the contracts on behalf of the sfpuc and authorize the general manager to seek approval from the board of supervisors to execute power supply contracts. >> good afternoon, commissioners. general manager and counsel. i'm barbara hale. i'm here to present this resolution. it addresses the authority of the general manager to execute contracts for both the purchase and the sale of electricity and related products. the wholesale contracts support our hetch hetchy and cleanpowersf program. the resolution would delegate to the general manager the use of specified form the contracts for the purchase and sale of electricity products under limited conditions for five years. these contracts include industry-standard form contracts which the commission and the board have approved for use previously by hetchy and cleanpowersf. these are the contracts used most to transact our electricity business and within the industry. in addition, p.u.c. staff have developed new and revised form contracts with the city attorney's office and with our partners at the joint power authority, california community power, to address powers ongoing power supply and regulatory requirements. it will be like our guarantee maximum costs. those sort of terms we're interested in. we're asking you to approve the ongoing use of these 12 form agreements that are listed on the third page of the agenda item. three of these you have not approved before, nor has the board. they are variants to address address technology differences, for example of contracts that you have approved before. these are contracts as described in the agenda item that allow us to purchase renewable power or renewable power plus energy storage, or just energy storage, or smaller renewable power projects. where the terms are less onerous given the small nature of the projects. then the different project participation share agreement that we executed with our partners the california community power association. the resolution would also delegate to the general manager the authority to enter into contracts for the sale of power and related projects. you'll recall that under chart section 9.118, $1 million or more to be approved by the board of supervisors. this delegation of authority would allow hetchy power and cleanpowersf to sell any excess electricity supplies and products for the benefit of our rate payers. the resolution will request approval from the board of supervisors to terms greater than 10 years, for $150 million. with anticipated revenues in excess of a million or more, subject to annual revenue limit of $10 million per year. the annual expenditure and revenue caps that i described, we're proposing, will be able to increased by the board of supervisors through resolution rather than another ordinance. i just described the what. let talk about the why. why are we asking for this authority. frankly, it's really necessary for the success of our power supply requirements, for us to operate and act at a commercial pace. really now more than ever. the requirement that all contracts 10 million or more go before the board of supervisors, it creates a real challenge for us at commercial pace. some of the products that we need to protect our rate payers from market price risks are only offered with very short pricing windows. we've historically entered into agreement for these products at term or in quantities that are less than 10 years or less than 10 million in contract costs. that means that we may be missing out on opportunities to procure lower price energy supply to our customers. we've obtained delegated authority from the gm and the commission and board of supervisors to enter into these types of contracts. over the past year we've seen an increase in volatility and power supply market. that's another reason why we're here. that made it more difficult for us to successfully transact, given our approval timeline. the mark price volatility has reduced the ability of our supplier. when there's a market price volatility, it's when we most need to be nimble and responsive to protect our rate payers. it's really a competitive market that we're operating in. ongoing new procurement is also required to meet our regulatory requirements. the cpuc orders that cheryl taylor talked about. failure to meet regulatory requirements has financial and reputational consequences. to sum up, delegating limited and conditional authority to the general manager will help us move quickly and acquire the most cost effective power supply resources to serve our customers and meet our regulatory requirements. it ensures that when we have products to sell, we act at a commercial pace and achieve the best price for our customers. thank you for considering this item today. i want to publicly recognize the collaboration between p.u.c. staff and city attorney to develop these agreements. i'm available to answer any questions you may have. >> president moran: commissioner paulson? >> commissioner paulson: that's quite list of flexibility type of issues that you have listed on here. i'm sure you added that all up. i have couple of quick questions. when you say this is a limited list. i was thinking this is going to be a comprehensive list so that the flexibility, so you don't have to come back here of time somebody come up with new product or new idea and you have to wait to get it approved. what is limited about this? the idea of giving the general manager that authority to call up and say, look what i found. let do it. you can do it without waiting two weeks. what's limited about it? >> we're not attempting to limit the types of products. what we're trying to express is delegation of the authority under limited conditions. it's only for five years. it's not continuous. it's only up to for the sale of power. it's only up to $10 million per year in revenue. for the purchase of power, it's only up to $150 million per year for each of those five years, $150 million cap of authority. it's not unrestrained delegation. we think it's a reasonable amount of delegation to allow us to act responsibly and in the rate payer's interest. >> commissioner paulson: again, this is for the flexibility that i originally started with to be able to do it. secondly, i take it -- you been working with the city attorney's office -- i assume this will include attorneys that will be associated with the board of supervisors also. so despite their authority, this isn't a surprise party to them either. we're going along these lines. i run into supervisors say, boy, we approved lot of stuff at the sfpuc the other day for crying out allowed. it wasn't a complaint, it was an acknowledgement, there's a large budget that we're responsible for. i take it there's some outreach to the board of supervisors that this is moving forward. >> yes. we've been working together with the p.u.c.'s policy and government affairs team to have the item introduced at the board of supervisors. it's been before the board for some time during that initial 30-day period. it's been before them publicly but no action may be taken. we are doing outreach to have one-on-one briefings to make sure offices all understand what this request is. we're expecting -- >> commissioner paulson: you mean 11 supervisors? >> the members of the board of supervisors, yes, thank you for the clarification. it's scheduled for hearing i believe july 13th at this point. it's right around that time. >> commissioner paulson: similar resolution would simultaneously approved? >> assuming that you agree what we recommended here today, we are positioned to move forward with the board of supervisors. the hope is then, we will be able to get approval from the board of supervisors for this delegated authority prior to the summer recess, so that we can execute contracts and keep business going. >> commissioner paulson: thank you. >> president moran: commissioner maxwell. >> commissioner maxwell: my concern is the waivers. can you tell me -- some of the things we're waiving, it says increased participation by small and micro local city businesses and contracts. the competitive bidding requirement, first source hiring requirements, public access to meeting and records of nonprofit organizations, administrative code. can you tell me -- there's one that says, here's -- section 7 community benefits. can you tell me how these things, why we are waiving them? i understand they are not in the regular contract. these are part of san francisco values. can you tell me -- if you done some study and found out they are they've caused some delay or problems and how much of that? >> i think, the primary issue we're dealing with here, what we're purchasing for many of these contracts is a commodity. it's for many of these form contracts. we have a competitive request for offer process. we send out our need described as the mega watt hours over time. we get commodity price offers. it's very much a strike on that product, using a form contract. the standard industry practice across the nation. we don't get the bids for that type of product, if we do not use these form contracts. some of the items that you listed for waiver are only waived in certain of these contracts. when we're looking on page 3 of the agenda item, the third page of the agenda item, you see the first four form contracts, western system power agreement, edison electric institute, you just buying megawatt hours. usually from a facility that's already built. perhaps through a broker. when we get into projects we're making a long-term commitment for a project that will be built, that doesn't exist yet, that's where we have the most ability to incorporate san francisco's terms. you're not seeing as much of the waiver in those. >> commissioner maxwell: that's extremely helpful. thank you so much. on those contracts we're building something, the gm could say, i think we need to use san francisco values on this. we need to do local hiring, -- >> you'll see those terms for p.l.a. and all that kind of stuff are in those longer term contracts. >> commissioner maxwell: those are the ones we would use? >> yes. that's what you see in like the second set of contracts there. the renewable power purchase agreement, the energy storage agreement, small renewable power purchase agreement. most of these projects, again, we send out a request for offer. we get bids from multiple parties. you seen us come here before in the past. we've come forward with r.f.o. results that had like 102 bids from 75 different providers. it's a lot of. it's a rich bidding pool in the past. that's where we have little more leverage to be able to incorporate san francisco's standard terms. i don't want to overstate. we do still have waivers included in some of those. for example, some of those developers do business in a state that is restricted. their headquarters are in a restricted state. we're asking for waiver of a term like that. >> commissioner maxwell: by restricted you mean -- >> a state that city's admin code we not supposed to do business with companies headquartered in them. >> commissioner maxwell: for what reason? give me an example. >> because they don't recognize domestic partnerships, for example. >> commissioner maxwell: all right. thank you for that. when i read it, i thought, it says these efforts include procurement to purchase electricity from new renewable and energy storage projects including from small renewable projects located in disadvantaged communities under cleanpowersf. when i'm looking at this, i'm thinking, you're in disadvantaged communities but you don't have certain local agreements, that san francisco saying we need to do this because of disadvantaged. thank you so much for that. i appreciate the clarification. >> happy to talk about this. it's a lot of important work that our staff is doing. it's an important topic. >> commissioner maxwell: it is. it's important that we're equitable in the amount of money that we are going to be spending. thank you. >> president moran: commissioner ajami? >> vice president ajami: thank you so much. i have a question regarding oversight process. i totally understand since we are dealing with a very dynamic market. we need to have some flexibility in the process. i wonder if there needs to be some form of quarterly report, some form of capacity for us to see what has been done and being able to have a since of these transactions, to make sure if something happens later, you know how thing have been spent what decisions need to to be made. obviously play the rules that we have here, which is sort of making sure we have proper policy and financial oversight. >> thank you for that question. i neglected no mention that the resolution includes that general manager will report on a quarterly basis. you will receive a standing report. each quarter that describes the exercise of the delegated authority we just talked about. >> vice president ajami: i appreciate that. i'm glad that i think it's important for the public to know. >> commissioner maxwell: thank you for that. also, we can ask for them to report on what was waived or waivers or may be, what we had to waive and then what we didn't waive. if we're going to building -- if we're going to a contract that's building something, so we have an idea. >> yes. we'll look at how to incorporate that information. may be in a narrative on the report. >> commissioner maxwell: great, thank you. >> president moran: any other questions? >> vice president ajami: can i ask one more question? i wonder if we have a tracking system in place to make sure we collect this data information? >> yes. we do. we have a tracking system for all of our power purchases and sales. this will be making transparent some of the business we've been doing and recording over time. >> vice president ajami: thank you. >> president moran: any additional questions or comments? public comment please. >> clerk: members of the public who wish to make two minutes remote public comment on item 11. please press star 3 to speak. do we have any callers with their handers -- hands raised? >> there's one caller in the queue. >> caller: this is very important matter. i think it's reasonable and worthy of passage. electricity is expensive in california. i speak to you from the perspective of somebody who is simply an ordinary user of electricity wherever i may be. my opinions are my own. in a world where the price of energy varied at a very fast pace and opportunities open and close very quickly. this is a chance for government to be nimble and to be able to seek out what is best for the people of san francisco. the technology and purchasing and procurement often move faster in policy and procedure. i don't want us to lose our chances to get inexpensive renewable energy to achieve our goals of a cleaner and greener san francisco. i don't have expertise in contract and legal matters. your general manager does. and has decades of experience in this type of work in a government environment. i ask that you pass this so we can get to 100% renewable energy and keep electric rates. hopefully some day drive electric rates down. electricity is essential. we have to move quickly. there's much to do. i think this is worthy of being passed. thank you. >> thank you for your comment. there are no more callers in the queue. >> clerk: public comment on tim 11 is closed. >> president moran: any other ecomment or questions from the commission? seeing none. may i have a motion and second. moved and seconded. roll call please. [roll call vote] >> clerk: you have four ayes. >> president moran: item passes. >> clerk: next item 12. retroactively accept and expend federal funds sourced by the american rescue plan act of 2021. >> good afternoon, my name is isabel, i'm on the financial planning team. in november 2021 this commission passed and accept an expand water resolution for water and power debt relief on behalf of san francisco repairs. i'm bringing to this commission a proposal to approve a retroactive resolution in the amount of $9.3 million for wastewater customer debt relief. before i begin, i like to acknowledge that this work has been agency wide. with external affair staff lobbying at the state level, customer service and i.t. staff helping with the program implementation, finance staff reporting -- working on the reporting staff and many more who dedicated lot of time and effort to make sure we bring this money to our customers. throughout this presentation, i'll refer to unpaid customer bills that are overdue as arrears. little background in july 2021, the state of california allocated $985 million in federal funding through the american rescue plan act of 2021 to the state of california water resources control board for payments to community water and wastewater systems to cover utility debt relief, accumulated between march 2020 and june 2021. the water program was rolled out first in the fall of 2021 with any leftover funding to be appropriated to wastewater agency. the sfpuc has received total $20.2 million in federal funding utility debt relief. $7.3 million for water a arrears $1.2 million for hetch hetchy and 2.4 for of cleanpowersf. all funds for water and power were distributed in early 2022. here's a breakdown of the wastewater funds we applied for and received. the sfpuc applied to the wastewater program in april 2022, approved for the full amount of $9.3 million. funds went towards paying off residential and commercial wastewater unpaid bills, that accrued between march 4, 2020 and june 15, 2021. because fewer wastewater agencies applied for this funding than expect the, funds went towards reimbursing the sfpuc for any discount they provided during the same time period and to cover the administrative cost of implementing this program. sfpuc staff distributed sundays to rate payers immediately for two reasons. firstly, because of the timely creditingful customer accounts is a priority as the agency works to reduce arrears. second, the sfpuc had 60 days to distribute funds after we received the check, per state guidelines. both of these reasons were the sfpuc to prioritize distributing funding as quickly as possible, which is why this resolution is now coming to you retroactively. we already distributed the full $9.3 million we received. i like to provide a brief update on the current state of arrears per request of this commission when we brought a proposal to extend moratorium on shutoff in february 2022 from march to july. the graph here displays all active single family residential customers with a balance more than 90 days past due. you can see that since january 2020, the blue line, which represents the number of accounts, has more than doubled. the green line representing their total balance owed, has grown by over 500%. it's important to note that the dollar amount showed here is everything that's owed by these delinquent customers, including their up to date bills, which are not yet overdue. this is to give a sense what dollar amount the agency is at risk of losing if these customers continue to be behind on their bills and not pay. there's a drop around january and february that you can see on the green line. that is due to the water payments from the state that we received and distributed. the may and june date was not yet available in time for this presentation. similar drop can be expected to appear in june to show when we applied the wastewater amounts to customer accounts. there's serious racial and social economic environmental of these growing arrears. they have not accumulated evenly across the city. they are concentrated in low income and environmental justice areas. to the left is amount showing where the arrears are concentrated. you can see, they're in a southeast and western parts of the city. this map is a bit outdated as it was produced by an outside affordability consultant in the winter of 2021. we have reason to believe that it's still accurate as number of accounts is not changing as much as dollar amounts in arrears. to the right is a map of the sfpuc's low income and environmental justice areas. clearly, there's a lot of overlap. we will continue to collect this meaningful data and to ensure our next steps are formed by our findings here. finally, i've outlined the next steps. the sfpuc staff are taking to assist customer who are behind on their bills. we will conduct outreach to wastewater debt relief recipients, continue to advocate for more funding at the state level and encourage customers to enroll in the low income household water assistance program to cover any remaining arrears they might have. with that, thank you for your consideration of this resolution. i'll take any questions. >> president moran: i have one question. when we make a payment on behalf of -- do we make a payment on behalf of the customer, do we send money to the customer themselves? >> we automatically apply the credits to any customers who are eligible. which was any residential or commercial customer who had an unpaid bill between march 2020 and june 2021. was automatically applied to reduce the amount they owed up. >> president moran: so the money never leaves our office? >> exactly. >> president moran: thank you. any other questions or comments? commissioner ajami? >> vice president ajami: thank you. thanks for that presentation. i'm really glad to see that we were able to receive that money and be able to help the customers. do we know on the percentage, percentage of people who are not able to pay their bills. [ please stand by ] >> this is an issue that somehow as a broader utility should look into how we can build a coalition to push for this. thank you. >> i have another question. is this the last of this kind of relief money that we're receiving or is there more in the pipeline? >> that's a good question. we were told that the program was oversubscribed, so the utilities didn't receive the amount of money they had applied for. the program should be available sometime in the fall for utilities to apply to, too, but we haven't heard about wastewater funding, but we'll likely bring more for additional power funds. >> one of the things that i was wondering, if you had been collecting amounts payable, if you know that there's going to be funding coming, one would think that internal funding wouldn't be high on the list. >> we have a pretty comprehensive communications plan right now to make sure that customers are aware that this will not be -- it might not cover their entire bill, but we're doing a lot of -- we had to notify every customer that received this funding of how much they received and where it was coming from, so as part of that outreach campaign, we're also telling them to enroll in payment plans. >> i had a related question to what you just asked on. i'm sure you're tracking it at your end, but i think it would be good for us to also know that, you know, aa more regular basis -- -- you know, on a more regular basis, it doesn't need to be a commission item, but to get more information on a quarterly business. i'll be really curious to see how this affects you all. >> thank you. we'll be happy to update you on this. >> okay. we'll take public comment on this. >> members of the public who wish to make public comment should lineup or press star, three to speak. do we have any members of the public who wish to make public comment. seeing none, operator, do we have any callers wishing to make public comment? >> operator: madam clerk, there are no callers in the queue. >> seeing no public comment, public comment is closed. i need a motion and a second. >> so moved. >> second. >> roll call. [roll call] >> clerk: you have three ayes. >> and the item passes. next item, please. >> clerk: next item is 13, adopt a resolution accepting the 2022 sfpuc wildfire mitigation plan and authorize the general manager to submit the w.m.p. to the california office of energy infrastructure safety wildfire safety advisory board on or before july 1, 2022. >> i'm here to present a summary of our wildfire mitigation plan and request that the committee approve our plan. by state law, we're required to construct, maintain, and operate these electrical lines and equipment in a manner that will minimize the risk of catastrophic wildfire posed by our electrical lines and equipment. in summary, the state law requirements include preparing a wildfire mitigation plan annually, submitting our plan to the california wildfire safety board annually, and then also having a comprehensive update of our plan reviewed by an independent evaluator once every three years. so the california public utilities commission has created a high fire threat district map, designating portions of california that are in high fire threat districts. you see a portion, an exception of that map up here. you can clearly see san francisco and the bay area on the left and on the right, includes o'shaughnessy. easiest to see is the extreme risk, which is color pink, orange, which is a mid risk, and then low risk, which is color purple. now we've overlaid our electrical lines on this, so on this, over on the right. we are in a high fire risk district down from o'shaughnessy down to oakdale, and once we get near tracy all the way down near calaveras, you'll see we are in a high fire threat district. so first off, we set principles in our wildfire mitigation plan, and the first is to reset minimizing risk of a fire and striving we move towards continual improvement. so how do we do that? we do that by developing prevention, mitigation, and response strategies. that includes situational awareness of our teams, understanding where issues are an issue that could start a fire. transmission line inspections. those could be aerial or ground inspections or both. distribution line inspections, substation inspection, vegetation management, deenergization or recloser protocols. restoration of service, and most important of this is employee and public communications of our wildfire and mitigation plan. so with that said, let's talk about some of our accomplishments this last year that are in our report. so originally, we had a -- an inspection scheduled. it was pretty -- that was well founded for our two 30-kilovolt lines. we have really stepped up our one 15 kilo-volt lines. we have established tree removal contracts, and we've also approved a settlement sale in the stanislaus national forest to remove almost 200 hazard trees along the 230 kilovolt transmission right-of-ways. we also continue to make progress on hardening our system. we have equipment on the system that can cause a fire. we're replacing some of that equipment to mitigate that risk. another thing we did this year was integrate our rhis to track dedication and inspection progress, quantitate tree removal and provide progress to sfpuc management. another thing that we did is we initialled a purchase of fire risk software to promote awareness of real-time fire crews for employees or management based on deenergization. we are looking at how we are doing. there are metrics that we've established. it is a self-auditing process. it includes -- the process includes comprehensive data acquisition, comprehensive data analysis, and a quality assurance and quality control component. now, this includes metrics for a three-year period. i'm going to say that you've -- you will see that one of the numbers has increased. it's been mostly for our distribution lines. what we are doing is going out and inspecting trees, and if we feel we have an area of concern, we've actually decreased the wind speed at which we will trigger deenergization of those lines. it's showing you that it's a little bit more frequent, but as we remove those trees, that number will probably become less. so we continue to invest in this effort and grow. as i said originally, there's independent realtiuationor review of this document. we will start that? june because it's required this next year. we are moving more trees, about 400 trees, on private property on our 230 kilovote transmission corridor. i didn't say this, but this runs right next -- from kirkwood all the way down to the powerhouse. another thing that we are looking at is can we reduce our distribution line footprint. we have lines -- the distribution lines, for example, running from o'shaughnessy running from intake, where kirkwood is, all the way up to o'shaughnessy, and there's a good chance that we might be able to reduce that footprint, the number of lines that we have in, and that's because we might put in a small hydroelectric facility at o'shaughnessy, so what we're trying to do in this case is reduce our risk. that is it. do you have any questions for me? >> thanks. commissioner maxwell? >> thank you, and thank you for that report. much appreciated. could you give me an example of the equipment that is hazardous? >> okay. so on the -- we have what are called 4292 poles on our distribution lines, and they contain special equipments for us to perform certain actions, and when those actions take place, it can create a spark, spark falls on the ground. those are distribution poles for us, and there are areas on that that we clear those, we clear that area, but we should just remove the equipment if there's something out there, so we're in the process of replacing some of those items, like switches, to reduce that risk. >> and then, when you do tree removal, do you -- do you replace the trees with something or is it -- is it just bare or barren, and i've heard that there are certain kinds of green trees or bushes that are fire retardant. >> okay. so what we are doing is we talked to a little bit at a later date about our integrated resources plan on what type of vegetation that we do want to have underneath those trees. in some areas, we're looking at something that might support the monarch butterflies, looking at replacing some of that. we're also just looking at low growth low risk. the likelihood is we're not just replacing the trees, we're doing some other kind of vegetation under neath the lines. >> but you would do some other kind of vegetation under the lines? >> yes, but we would make it a little less maintenance intensive under the lines. >> are you making it all fire retardant? >> that is something that we are looking at. >> i'll send what i have to you. >> i know there's things that i have to have permission around certain of those lines regardless. >> thank you. commissioner ajami? >> just want to say how much i appreciate your presentation and looking at the slides, as i was reading the package, it is such an important issue. you know, every fire season, ever since i joined the p.u.c., that is a concern, that is top of mind for me, so i'm glad to see we have it structured. i appreciate all the technology that's being used in this process. the tracking system, the g.i.s. system, all of that is really useful, and i'm glad to see it. >> thank you. >> thank you. any further questions? >> oh, excuse me. commissioner? >> i was wondering, does p.u.c. use the same kind of strategy? >> we are also the under the same management, but there's different items of the plan that apply to us differently. if you compare us to all the different kind of small municipally utilities -- muni utilities, we look much the same. >> okay. public comment. >> clerk: members of the public who wish to make three minutes of public comment, please lineup to speak. do we have any members of the public who wish to make public comment on this item? seeing none, moderator, do we any callers in the queue? >> operator: madam secretary, there are no callers in the queue. >> thank you. public comment is closed. could i have a motion and a second, please? >> move to approve. >> second. >> motion and second. roll call. [roll call] >> clerk: you have four ayes. >> next item, please. >> clerk: approve the proposed water enterprise security mitigation plan and designate the executive director of the san francisco department of emergency management as the qualified authority to review the security mitigation plan and authorize the water enterprise to implement the security mitigation plan. >> on january 25, 2019, the california public utilities commission had developed decision 1801-018 to address physical security and distribution systems that serve critical facilities. we own facilities that fall under this decision, so under this decision, we are required to assess potential risk of attack and develop a risk mitigation plan. there are nine elements to this mitigation. we performed the evaluation, and our evaluation identified several areas of concern. we have have produced a summary that listed these items, including modifying our ingress-egress policies. second, we're going to be looking at this -- the risk a little bit more frequently. we will continue to do a continuous monitoring program of our potential risk of these locations and identify possible mitigations. this isn't the end of this, and i will be back again, or someone will be back again in five years to share an updated physical security plan with you. thank you for having me here today, and i'm available to respond to questions. >> okay. thank you again. commissioners? seeing no questions or comments from the commission, public comment, please. >> clerk: members of the public who wish to make public comment, please press star, three or lineup to speak. seeing no members of the public wishing to make public comment, mr. moderator, do we have any callers lined up to speak? >> operator: there are no callers lined up to speak. >> thank you. public comment is closed. >> so moved. >> second. >> roll call, please. [roll call] >> clerk: you have four ayes. >> next item, please. >> clerk: item 15, authorize the general manager to execute on behalf of the city and county of san francisco an agreement with the county of tuolomne, for an amount not to exceed $2,497,197 and with a operation of six years which will provide funding for enhanced essential services, such as fire expression and protection, sheriff protection and patrol, road mand nance, ambulance services, as well as the -- maintenance, ambulance services, as well as mutual aid services, tosh the hetch hetchy water -- for the hetch hetchy water and power project. >> the loss of this tax for the county of tuolomne is significant and affects essential services, including fire protection and prevention, sheriff protection and patrol, and road maintenance. this agreement will provide funding for these services. we've had a similar agreement like this since 1995, and i'm hoping that you will approve this today. that's the end of my presentation. >> thank you. commissioners, any questions? seeing none, public comment, please. >> clerk: members of the public who wish to make two minutes of remote public comment on item 15, please raise your hands to speak. do we have any members of the public who wish to comment on this item? seeing none, mr. motion denied -- moderator, are there any public commenters in the queue? >> operator: there are no public commenters lined up to speak. >> thank you. public comment is closed. >> so moved. >> second. [roll call] >> and item 15 passes. we're on a roll. next item, please. >> clerk: item 16 is authorize the general manager to execute, on behalf of the city and county of san francisco, a collection agreement with the united states forest service, stanislaus national forest, for an amount not to exceed 2,330,087 and with a duration of five years, to provide watershed protection for the san francisco public utilities commission's approved water sources and surrounding lands within the stanislaus national forest. >> per this agreement, the stanislaus national forest will provide protection services for our water resources and surrounding lands that are located in the stanislaus national forest. we're talking about cherry reservoir watershed, cherry reservoir, and cherry diversion and cherry aqueduct area. it ensures central services within the stanislaus national forest remain secure. examples of activities include patrolling, public education, stock management, public maintenance, camp restoration out at cherry, garbage removal, and law enforcement. we have had a similar agreement since 2008, and today, we're asking you to approve this new agreement. thank you. >> thank you. questions or comments? commissioner maxwell? >> yeah, what did we do before the agreement in 2008? >> they provided services, but it -- i couldn't point to it, so we actually, within our agreement -- within our documents that we describe on our stewardship of the facilities, i could not really point to the forest service, that they were providing that services, and the services that they were providing were not really described in detail. [please stand by] >> good afternoon, i'm here to seek approval for the award four as needed contracts for highly specialized and technical skills for use in our water enterprise. these contracts will be as needed up to $5 million and up to five years. they would provide services in one or more 11 technical areas. water supply, water quality services, water treatment and so forth. the reason i'm here today to talk to you about it, i want to make clear what happened during the selection process. what was part of the technical scores and what other aspects of the evaluation were at play. when we received seven proposals for these as-needed contracts and propose up to four, a panel was put together and it was asked to evaluate the 11 technical areas of water expertise. that is what was put before them and that's all they were asked to do. they were ranked and scored those. three different things were added to those technical scores. the first there's a d.e.i. score, that's a program starting with this contract which was published november 2021, through now in our professional services program. the p.u.c. asked proposers to include the voluntary information about whether or not they had their own diversity, equity and inclusion program and protocols in place. if they did and they gave us those proposals, they would receive five points, if they didn't, they would not. these will be reflected in new proposals. we're looking at how much should the measure be. it's five points, is it 10%. what the range of point that are going to cause people to sit up and pay attention and take this seriously. that's one thing that we're looking at. the next thing we're looking at, what are the other things and what should we be asking our vendor partners to do. colonelly-- currently is inclusion of the d.e.i platform. one is overhead and profit score. that is a determination of how much that is the effective overhead rate that they will be charged that we can ensure that the p.u.c. and our rate payers are getting value for dollars. today, i'm asking for approval of these four contracts. i'm happy to take questions about the contracts or the scoring process. >> president moran: thank you. commissioner maxwell? >> commissioner maxwell: thank you for that clarification. my question is, when you mentioned that they're asked if they have a program, diversity inclusion program, they say yes or no. >> they upload what their diversity, equity and inclusion plan is. it's uploaded as part of their proposal. they do not have to upload that component for it to be responsive and accepted under this plan. they don't just check yes or no. they give us the plan. >> commissioner maxwell: if they give you the plan, then because they have a plan, it's not evaluated. it's just that, oh, we have a plan. >> that's correct. one of the things we're looking at. that's a further evaluation what's in the plan. it's what we can drill down on what are we measuring. you are correct. >> commissioner maxwell: is that what they are calling pass-fail? >> yes. do you have a plan. your plan might be better, but we're not evaluating those things. there's no panel doing that. at this point, it's pass-fail. >> commissioner maxwell: if you are setting up a criteria for what that plan would look like, if i'm jake and i give you a plan and i'm don or let me say, i'm emil and i give all plan, you will look at -- we will have certain criteria that we're looking for in that plan? is that what you're thinking about doing? >> yes, we're examining what criteria, what we're requesting. how deep it would go. that portion of the what is what we want to come back and have a more robust discussion of how are we furthering racial and social justice through our contracting. which is the commission policy that all of this. >> commissioner maxwell: if it's whatever percentage, you're looking for something that will make a difference, no matter in it's 1% or 2%, it will make a difference to whether or not that person is awarded a contract. >> that's correct. that's our goal. >> commissioner maxwell: this pass-fail or whatever you want to call it, how many contracts has that gone out on? how many contracts has that gone out on and when are we going to have the other criteria? when is that going to happen? we have lot of contracts coming up. >> we always do. in answer to that first question, it has gone in every contract, that good evening out to advertise for professional services, beginning of the year. that currently is around 20, i believe. i can get you that exact number. i don't have a date but it is a priority for us to get both of those things, not just what is being measured but how it's being measured. just to be frank, we may come back with two iterations. in other words, let's change how much we are measuring. then, change the what, we might get the what first. those are two different things. they may go together. we're prioritizing and seeing what we can do. i don't have the date here. >> commissioner maxwell: i don't understand how they are not together. the what and how much. >> this one has five points. you can imagine a situation where it's exact same question and it was 5% instead of .5%. the scale of it is one issue. we're going to be looking at that. what's important and effective. we are also looking at what are are the things that we can do. frankly it's not just do you have a plan. it could be entirely separate and entire separate issue. that's what's being examined. we want the ideas there. we want to make sure we are pushing forward the policy in a way that is legally defensible and make sense. >> commissioner maxwell: well, i'm going to push you on when and how soon. >> i don't have the answer. >> commissioner maxwell: i understand. i'm going to push you -- pushing these sooner rather than later. >> i understand what you are saying. i hear you. if i had a date for you, i will give it to you. >> commissioner maxwell: not asking for a date. i'm asking you, since you don't have one, i will not ask you for it. what i am asking that you said it's priority. if it's heightened priority, we're going to do it sooner rather than later. >> that is correct. >> we understand the importance of this. you have both of our commitment that this highest priority is going to mean that we -- you see meaningful progress sooner rather than later. i know that mr. flynn is going to do it. he doesn't play around with this kind of thing. he's going to make sure it happens. i have confidence, i'm still going to say it. i'm confident you will do what you said you will do. i appreciate that. >> commissioner paulson: i'm going to give you little more nuts and bolts, easier question. as i just look at this, there's a company get up to $5 million a year to do a litany of things with water and security and environmental stuff, whatever that is. specialty stuff. i'm thinking out loud. this isn't just maintenance. this is not big enough for major infrastructure and stuff. it's specialty work. can you give me may be five or six bullets of what exactly is the specialty work in terms of environmental stuff. just an example. if i got the contract, what am i telling you i will give you because things happen. was it as needed. suspect it preplanned and is it new technology. just five examples of what these contracts do. >> absolutely. first thing i want to make clear, it's up to $5 million over five years. you're correct it's not $5 million a year. it will be $5 million over five years. >> commissioner paulson: oh, okay. that's even smaller. >> it's much smaller. i think steve richie is going to give you some stuff. it is water analysis. we're looking at analysis. it's sort of a quick specialty still that we need quickly or we need expertise on. it is not replacing our workers doing the nuts and bolts of our business. >> commissioner paulson: again, my question is couple of bullets what that actually means to somebody who knows somebody about building. >> this is steve richie assistant general manager for water. planning studies of various sorts, we don't go do engineering. those are more than different specialty type of contracts. planning studies to begin just quick assessment should you go down this path or this path in terms of solving a problem. data analysis is another good example where we have to tray to solve a problem. it takes lot of work to analyze data to get to the basis for planning study. do we have a regulatory requirement we need to respond to quickly whereas somebody can help give us a plan on what are the steps that we need to take to actually respond to that regulatory requirement. those are some quick easy examples there. i'm trying to think for another type of thing. it really is in the planning world of things that we really look at this kind of stuff. do an audit of how we're doing in the program. are we accomplishing what we intended to do and do they have recommendations for us on how we can improve, which include actually, changing our staffing levels. that will be something that we would put in this kind of work. these contracts, this is -- since i been here, we been through four iterations of these contracts. these are our bread and butter operations. folks have aspect -- integrated in our work. >> commissioner paulson: do some of the contracts integrate with current staff that are working for the p.u.c. also? >> yes. it's a little of both. sometimes there are places where we have just an excessive number of vacancies and we can't get some of the bread and butter work done. we intend to add staff there that will help us accomplish what we need to do. it's more in the engineering area and service area. >> commissioner paulson: thank you. >> president moran: commissioner ajami? >> vice president ajami: i'm going to ask mr. richie there, i will ask him a question. i think one clear comment here, we had this conversation earlier. i would really like for us to own some of this than just being the consumer that comes out of these model analysis that you're paying for. i wonder if there is a way for us to institute some form of -- i don't know how we can do that. i think i would like to see more of -- i would like for us to own it. i think it's okay for our staff to not only to take that data information and be able to change it, play with it, test it. >> i do have an answer to that part. we should spend some time with you and talk about all the analytical work we do. we have a tremendous modeling capability in our staff. i don't want there to be any misconception that we're just buying somebody to come in and do a model for us, we don't look at it or understand it and spit out a number. that doesn't happen. >> vice president ajami: i do actually and value the internal expertise and knowledge that you have within the sfpuc. i've been a admirer of that. did not mean to say that. i want to make sure -- if we're paying for something, i want to make sure we end up owning the products at some point. >> absolutely. >> vice president ajami: going back to the discussion. i want to put a few scenarios in front of you. one is, all of these companies that had applied -- this is an example. this is not exactly -- [ indiscernible ] the major companies, lot of them have programs in place. it's very rare they would not have a plan, they have not done something. they all have sort of a part of the process moving forwards that direction. however, you can also have smaller companies that are not necessarily part of the mainstream pipelines. how are we going to accommodate the ladder, rather than enabling more and more of these -- i want to make sure we don't create -- [ indiscernible ] >> that is a great question. that's in the category of what are we measuring and what are we asking our companies for. you're correct, it may be, this is where i say we need to work closely with the city attorney, it may be that we have a set of companies who we know are extremely diverse. how do we measure that and how do we allow that to fit in that world. that is the what that we are digging into, that we can implement this as robustly as possible. while still protecting the agency and the rate payers from illegal risk. where we fit along that. it is because this doesn't include it, it does not mean we are not looking at that issue. that's a great example of the things that we have to look at and figure out how to measure. >> vice president ajami: can you hear me now? >> yes. >> vice president ajami: i did hear what you said. i appreciate that. beyond the fact that we want to make sure we are not legally liable. i want to make sure we are actually picking the right players in the process and making sure we are creating a more event field for everybody to participate, regardless of their size and capacity and all that. you have a huge task ahead of you because just having plan, obviously, as we all know, is not only thing that will diversify our workforce. >> that's correct. that's one of the reasons i said it's an iterative process. it is -- we're not going to be changing it every day. we need to come and come up with a plan and see how it works and see what the results are. we need to be willing to go back and look at that and see if we're getting results and go back again. it's an iterative process. >> vice president ajami: one quick comment there, i know this have come up a few times with bigger contracts that you have for construction. even for these kind of contract, it will be good for us to have some sort of data tracking, database that we can track all different criterias that we are using. that way we can test different hypothesis and improve that process. >> thank you. >> president moran: commissioner maxwell. >> commissioner maxwell: when we talk about risk, we're talking about there's high risk, low risk, medium risk. we're considering all the risk. i know you're lawyer. you're an attorney it seems like there's different kinds of risks. i hope that we are considering that as well. >> we are. that is part of the analysis. i am a lawyer. i was a lawyer by trade. but now, i'm working here. i have my utility management hat on, not my lawyer hat. and my policy. , yes. >> commissioner maxwell: thank you. >> president moran: thank you, any other questions or comments? seeing none. public comment please. >> clerk: members of the public who wish to make remote public comment on item 17, please press star 3 to raise your hand so speak. do we have callers with their hands raised? >> there are no callers in the queue. >> clerk: public comment on item 17 is closed. >> president moran: any additional comments or questions? seeing none. motion and second please. >> commissioner maxwell: move to approve. >> commissioner paulson: second. [roll call vote] >> clerk: you have four ayes. >> president moran: item passes. is there any other matter before this commission? >> clerk: that concludes your business for today. >> president moran: this meeting is adjourned. >> i had a team of four people including myself responsible for the technical side of the business. anything having to do with the tabling in the workstation -- cabling in the workstation. victor is the team lead for the enterprise applications and architecture group. they do vice the strategy. they take on special projects and implementation of the technology. victor and his team are on the cutting edge. >> they deal within from structure. they make everything work. i am fortunate to have the guys there dedicated and have my back. if it weren't for this group of guys, a lot of things would not be as reliable as they are. >> we surrounded victor with a team, and he is mentoring these folks and giving them the benefit of his sploshes, the way he approach -- of his process and challenging them to force them to go in their skill set. what we are trying to do in a couple years time we will have four victors. >> it is important to teach the younger generation if you are going to learn a technology today it is more important to learn to adapt. >> victor brings technical excellence, commitment to quality. he has all of the things you need to be successful. >> he is so committed to building relationships within the team in terms of his organizing the annual barbecue and the work going into that is not well understood, weeks and weeks of planning and buying food and cooking. he is an anchor for the rest of the team. >> we have a responsibility to the city for being effective and making sure we are as efficient as we can be. that is important. >> victor deserves the golden pride award for dedication and commitment and the quality of work that he does every day. it is important we acknowledge that and recognize it publicly. >> i am the principal information systems engineer.... >> good morning everyone.er.... [speaking spanish] act one, scene two. thank you so much, eric. i'm the ceo of tndc. it's great to be here with you to celebrate this ground breaking of 70 affordable homeses at 180 jones. today is a milestone for the tenderloin and for the community that came out to celebrate with us today. we're here because of the power of the community and the community voice. in the tenderloin for the last 40 years in this neighborhood developing, advocating and in community with all the residents, families, children, and individuals that call this place home. in particular, we have a tremendous amount of activism and a tremendous amount of core families and children that really highlight our day and as you can see on this bright, sunny day, they really propel us forward to continue doing our work. and in community and in neighborhoods, we advocate for strong community and really represent the needs of all the families in this vibrant place. years ago, activists came together, several of which are here today. i've seen you, i see you, and the idea was to really look at this small lot and see what and imagine what type of housing and what type of services we can provide the community. luckily it was purchased and preserved for affordable housing. it's very important because the tenderloin many times gets a bad wrap. it's understandable. communities and people are facing challenges and barriers to housing. we all know it. we all feel it. in many families, lack access to quality food and mental illness programs. but this is how a community comes together to address those challenges and strive through inspiration. and this is what makes me really proud to be with community as we celebrate occasions like today. more importantly, 180 jones is a reminder that community driven solutions work and they benefit all of us. thank you, eric. because of the activism in the tenderloin community, we're going to be moving some dirt today and we're going to begin the construction process to celebrate the 70 homes for individuals and 35 of which are for people who are formerly unhoused. that's very important. and, with all good projects, this work is never done alone, it's done in partnership. i'd like to thank mayor london breed, eric shaw, and the mayor's office of housing and community development and this whole entire team which is here today. thank you. supervisor dean preston, please join us. [applause] former supervisor matt haney and jane kim who were pivotal in this work because of the year long -- years of work that took for us to be here today. the california department of housing and community development and their huge support in this being one of the first projects using housing accelerator funds. silicon valley bank. kay hill contractors. [applause] architects vanmeter williams bullock. [applause] waypoint consulting california housing partnership. tndc staff. [cheers and applause] and, really, the countless others that have been in partnership with us to make today a success. thank you all for joining us. it is sunny. let's smile. i know have the privilege and honor to introduce supervisor dean preston. [applause] >> supervisor preston: thank you. thanks so much. wonderful to be here with you all and really thrilled just to be here as part of this ground breaking ceremony for the 70 new affordable homes that will be built on this site, on this site that's in the newest part of my district. for those not paying attention, as of a month ago, i'm pleased to report that the tenderloin is now part of district five and it's thrilling to be here with you and representing the tenderloin today in city hall. i know there are a lot of folks and you've mentioned so many of them who came together to make this possible knew that i could name them all. i think you've done a good job of hitting on all of them. but i do want to remark on many of the community folks who helped push so hard over the years to make this happen. and i will say in my first few weeks representing the tenderloin as my staff and i have done extensive outreach and had over a hundred meetings with community leaders, we have really been struck by the incredible level of community organizing here in the tenderloin. and what we see time and again as we meet with folks and learn about their work is that incredible love and commitment for this neighborhood and i think the project that we are here celebrating today is a product of that neighborhood commitment. it's made possible by an extended community benefits and negotiation related to another project in the neighborhood and for over a year, the 950 market street coalition led by nonprofit leaders and community advocates fought for in one significant community benefits for the neighborhood including the funds to purchase and develop the vacant land here at 180 jones as well as seed money that would go on to facilitate the creation of the nation's only transgender cultural district. so i want to sincerely thank the community leaders who made this possible and that includes the many talented staff at tenderloin neighborhood development center, as well as the central city s.r.o. collaborative. it includes tenderloin residents too long a list to name them all, but david elliott lewis who i see with us today. it includes honey mahogany from the transgender cultural district. and i also really want to thank the prior district six supervisors jane kim and matt haney for their leadership and their support of this project as well as the mayor's office, director shaw, and the mayor and their team for bringing this to fruition. so it is thrilling to be here today. i know you have many speakers so i won't go on, but i will ask you to join me in welcoming jacob goldstein, tndc project manager to speak now. welcome, jacob. >> good morning. thank you. thank you so much for joining on site today. my name is jacob goldstein and i'm a project manager on tndc's housing development team. i've had the honor of leading 180 jones for the last three years. it's been a long road responding to the city's initial request to develop this parcel of land to today's ground breaking event. even in an industry known for complexity, 180 jones has had a unique set of challenges. fitting 70 homes on such a compact site has not been easy and i think 180 sgroens has had about as many financing plans as people gathered on site today. that said, for all of these challenges, 180 jones is also an example of incredible state and local investment in affordable housing. we were able to take advantage of the streamlined approval process under senate bill 35 as well as the state density bonus law to maximize the size and lay out of the building. 180 jones is funding through the california's new housing accelerator program and we're thrilled to be one of the first accelerator projects to break ground. [applause] on a personal level, standing here today is a real full circle moment. when i first moved to san francisco in 2010, one of the very first bars i went to was none other than aunt charlie's. that first visit to aunt charlie's showed me there's so much more to the tenderloin than what you might read in a headline. it's a place of strength and diversity, of queerness. this was the block of the cafeteria riot in 1966 and today it is the site of the world's first transgender cultural district. [applause] this is the neighborhood that 180 jones will be part of and i can't wait to see the site transformed into 70 homes where residents will be able to thrive. thank you. [applause] >> thank you, jacob. i would now like to introduce monica hernandez, deputy director for housing community development. >> thank you. hi everyone. i love to see all these smiling faces. on behalf of governor gavin newsome and the california department of housing and community development, it's my pleasure to congratulate all of you and be here in celebration. this is a momentous occasion. it's mott just historic. it is a testament to the city of san francisco. leaders across san francisco. tndc, the mayor's office, to it all of you and a testament to the love for this community. and, it's a testament to partnership. partnership with city and state and the california housing accelerator which jacob mentioned. i'm going to tell you a little bit about that. we have been facing four decades of housing crisis and we were looking at about $3 billion of backlog in permit and shovel ready projects just sitting there that would have left projects like 180 jones in limbo. gavin newsome responding to our urgent need of $1.5 billion. and last september, we released our application process and developers up and down the state responded and we went from permit and approval to award in just 60 days. that is unprecedented. [applause] and, in february, we announced the first tier of 27 projects about $900 million in awards and today we are at number two ground breaking. just two out of 27 have broken ground in such a short amount of time. so congratulations again on that. all of us working together with the shared sense of urgency is what brings us here today. projects like 180 jones are complex. we heard about how difficult it is to get 70 units on a smaller parcel, but it also takes creativity and funding. there's about almost $24 million in funding from the housing accelerator. another $15 million from acd's multi-family housing fund. and approximately $30 million from the mayor's office of housing and community development. [applause] as we're gathered here in the heart of the tenderloin, we are celebrating community, compassion, and collaboration. we're standing on opportunity. opportunity for residents here to not just survive but to have a place to grow and thrive. this project is ideally designed in a transit oriented area creating climate-friendly housing that benefits not just the residents, but the community at large and the planet. we look forward to holding this up as an example across the state of what beautiful, quality, affordable housing can and should look like. so thank you again. congratulations and please invite us back for the ribbon cutting. thank you so much. [applause] >> thank you monica. i would now like to introduce katie fischer, director of community development and finance at s.v.b. [applause] >> thank you very much. good morning. my name is katie fischer and i have the pleasure of representing silicon valley bank this morning. i want to give you some numbers to honor the challenge that we're up against here. about 12% of the country lives in california. however, 28% of all people experiencing homelessness live in california. 31% of all homeless veterans in the country live in california. 36% of the national population of unaccompanied homeless children live in california. as many here now, the definition of homelessness is varied and it often includes individuals with temporary shelter. california accounts for more than half of all unsheltered people in the country. that's nearly nine times the number of unsheltered people in the next state, texas. i want to honor the connection between mental illness and homelessness. mental illness proceeds homelessness. and tndc has an award-winning phenomenal services arm that offers outreach, advocacy, conflict, resolution, addiction, reduction, harm reduction, translation -- [applause] it's a critical element in the housing first plan and it's the only way to sustain long term permanent supportive housing. this will have one full-time social worker and a second full-time worker. one other thing in terms of numbers, studies show it costs about 100,000 people anywhere from 60,000 to 100,000 to take care of somebody who's homeless. think of emts, police. it cost about $52,000 to permanently house this person per year. so it's about half the cost. when you add in resident services, this project will cost about $56,000 a year compared to $100,000. so it's quite cost effective to do this. as the bank of innovation, i want to applaud the accelerator program. it came out of a number of projects not receiving a tax allocation which have become further and farther in between from receiving. also, san francisco's a loss for local operating subsidy programs. starting in 2008, since then it has supported 1600 housing units with an additional 1200 in the works. that's a critical subsidy i want to pause in honor. senate bill 35 was opposed by two east bay cities that i won't name, but it is the key to getting a lot of affordable housing, including this one. thank you tndc. thank you, jacob, lex, phenomenal project managers. honey, i see you. and meg mcgrau, may not be here, but the financial consultants are the huge projects and the glue that makes it happen. so thank you very much. >> thank you, katie. and, i'd like to introduce our very own curtis bradford. >> thanks, boss. i've been wanting to say that for a while. my name is curtis bradford and i'm co-chair of the tenderloin peoples congress and long time resident for over 15 years. i'm really excited about today because this is a long time coming. i was really fortunate to be part of a volunteer as a resident leader with a group called 950 market street coalition. it was a group of residents that came together folks like david and cathy over here and steve and felicia and awesome gale seagraves and steve and others along with support from folks like rio and pertiba and alexandra from s.r.o. collaborative. with their support, us residents were able to enter into negotiations with 950 market street, the big development one block down here at the corner of turk and taylor and really worked on developing a benefits agreement that worked for the community. remember an entire block of the tenderloin of the community. full of rich history for our neighborhood. and we wanted to make sure the community got something in return for that loss. and the building of below market rate budget rate condos in the tenderloin wasn't going to house anybody from our community and we knew that. and so we wanted to find a way to ensure that this project would actually build housing that works for our folks. and so that's where this came from and this is the result of that effort and that negotiation. and so i am so excited to see this actually happening. and, it's proof that when you empower residents, you empower community and you give them agency in their own lives, great things can happen. [applause] so we'll have 70 units right here for our community and i cannot wait until that day and i'm going to be excited for the ribbon cutting as well and i have to thank the mayor's office and the folks from the state and the bank and tndc's amazing staff and for all the work that it took since we signed that community benefit agreement because a lot of work has happened since then in order to break ground here today. and i want to thank them for making a resident-led vision come to reality. thank you. [applause] >> thank you, curtis. now, i would like to introduce eric shaw. director shaw. please. [applause] >> good morning. my name is eric shaw, i'm the director of the san francisco mayor's office for housing and community development. i am happy and excited to speak on behalf of mayor breed. she is here in spirit. she is my boss. she is a visionary. and she has a deep commitment to making sure that we are creating affordable housing forrern and not just housing, but homes for people. i remember her walking through one of our projects. we were so excited about the unit count and the affordability. and she goes, we're the linen closet. how is someone going to grow up here how is someone going to be able to lounge and enjoy themselves? we really are thinking about the idea of creating homes and running it within community. and so i know that in particular right now, the community of tenderloin, i want to thank them right now. i know that the office of community development part of the mayor's office of housing community development invests hundreds of millions of dollars to this community and to community organizing and to tenant protections and to really supporting lifting up, leveraging the community voice and putting the resources to realize the community vision and this project, 180 jones is the example of that. so i just want to applaud the community and the residents for really making this happen. also, we know this is actually bigger than housing in terms of the needs of this community and i was just on the call, my fellow department directors from the office of homelessness and supportive housing to manage the safe sleeping site here. with the police chief, with the fire chief, with the office of planning and so i just really want to recognize it does take a whole infrastructure of very committed people that just mobilize both their expertise, their staff, and their resources to really bring together the mayor's vision to create safe, affordable homes for people. [applause] and, with that too, we also understand there are stages. so the mayor's plan focuses on safe sleeping sites. i want to focus on keeping us safe during covid and realize housing was one of the things to advance public health and safety at that moment. but we can't stop at giving people safe sleeping sites, but make sure we have a continuum of opportunity for people to live and to thrive. so from safe sleeping to the services being needed to housing built to hopefully home ownership which we're investing in as well as our office. and finally on the city side, i just want to pat ourselves on the back a little bit. i just really want to recognize julia sabori and the team. i'm really excited we have pusheded over the past two years to integrate housing home ownership and the cultural district program together to make sure we're being responsive to the particular needs of the transgender community making sure that we're investing. we just invested $1 million in universal basic income for black transwomen this year. and really making sure that the systemic barriers that have impeded people being able to thrive and one of the most resource and abundant cities in the country that we are getting the most resources where people need it most to really make sure that they are -- they feel like they're san franciscans and they feel loved in san francisco and they can thrive in san francisco. with that, i do also want to thank the state for the housing accelerator fund and i think monica knows this. it's pretty expensive to build in san francisco and there are a lot of cities that are catching up with san francisco around the idea of affordable housing. and so i really want to thank the leadership of h.c.d., monica, are gustavo, secretary castro ramirez, and the governor for allocating the funding for the accelerator program and it is imperative that we have state support and programs like the accelerator program to get our projects built. so the mayor is at sacramento as much as possible talking with secretary -- with governor newsome, not secretary to make sure san francisco has the resources to vote to tax themselves. and, with that, i also want to thank them, but i'm going to ask for more. can we all ask the state for more? >> as you should. >> all right. and so, with that, we have four projects that are going to be breaking ground. we have eleven ground breakings this year with the support of the accelerator fund. i'm excited for that and finally, once again, i want to thank my friend and colleague morillio. we've been joking about that. but it's so amazing to have strong leadership. i want to thank don folk for his vision as well. and the team and my team. i want to thank the banks because they help fund things. i want to thank the community once again and, jacob talked about this as a project manager. you know, the buck literally stops with them. the decisions that are made, the coordination and the stress, the community engagement and so i just really want to thank our project managers as well on this. on behalf of mayor breed. on behalf of my fellow directors, on behalf of our time i want to thank you so much and i'm excited to turn over some dirt. >> thank you, eric. and i see that this crowd and this community loves the shade. so, with that in mind, i just welcome you to -- we're going to move some dirt and get a few photo-ops. if you want to move dirt for you, you can. after we do the first photo. you're more than welcome to wear a hard hat and pick up a shovel. so thank you so much for coming out. we really appreciate it and we really appreciate the shade. thank you. >> on the count of three, one, two, three. [cheers and applause] >> i lived in the mission neighborhood for seven years and before that the excel see your district. 20 years a resident of the city and county of san francisco. i am the executive director of a local art space nonprofit that showcases work that relate to the latino community and i have been in this building for seven years and some of my neighbors have been here 30 year. we were notified from the landlord he was going to sell the building. when we realized it was happening it was no longer a thought for the landlord and i sort of had a moment of panic. i heard about the small sites program through my work with the mission economic agency and at met with folks from the mayor's housing program because they wanted to utilize the program. we are dealing with families with different needs and capacities. conversations were had early in the morning because that is the only time that all the tenants were in the building and finally when we realized that meda did have the resources to buy the building we went on a letter writing campaign to the landlord and said to him we understand you want to sell your building, we understand what you are asking for and you are entitled to it, it's your land, but please work with us. what i love about ber nell height it represents the diversity that made me fall in love with san francisco. we have a lot of mom and pop shops and you can get all your resources within walking distance. my favorite area of my home is my little small patio where i can start my morning and have my coffee is a sweet spot for me and i >> start the interpretation translation announcement, please. >> will provide sign language services throughout today's board meeting. live transcription can be found here, http s--dot stream text.net player question mark event equal sign.

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