Transcripts For SFGTV Public Utilities Commission 11816 20161109

Call the Public Utilities commission to order mr. Secretary. Coordinating commissioner kwon commissioner caen is expected shortly and commissioner courtney that excused and we have quorum okay. Thank you commissioners you have the minutes of the october 25th meeting additions, deletions, or changes seeing none, can i have a motion. Ill move there is a motion that has been seconded any Public Comment . All in favor, say i. I. Opposed . The minutes are adopted. Next item. Is Public Comment this is a chance for any member of the public to comment to the commission under our jurisdiction that is not on the agenda foyer today any Public Comment . No okay seeing none, communications commissioners. Any comments or questions on the agenda any Public Comment on communication . Cool bosca im here to speak to item 5 e on our communication report at the request of your cac chair that is the first time for me to do that im here to calling your attention what is included a resolution passed its by the Advisory Committee on october 18th this year this was a resolution urging the puc for Environmental Review for a new Community Center in the Southeast Community in particular, the resolution has quite a few of the whereass hopeful a lot of communication at the cac but want to note the two roasted the Advisory Committee which was created to give voice to the community and the residents urges the sfpuc to initiative the Environmental Review. A Community Center that benefits the existing residents and have age intern Green House Program and be it therefore resolved the cac yourselves the legacy of the bayview Hunters Point in the Southeast Community facility her the litigation agreement is fulfilled and oversight for the community and support Community Center that provides workforce and Educational Opportunity for the residents of the southeast San Francisco so the cac was proud to act on that and wanted to make sure youre fully aware of if. Thank you very much. Any other Public Comment on communication items okay. Seeing none is there any other Commission Business . And theres none well move forward competing mr. Kelly the drought update. Can i have a slides please. Good afternoon, commissioners ellen deputy manager steve richie is a out of the office this week ill be giving you the water supply update with the reservoir storage at 77. 6 percent this time last year we were at 45 plus a significant increase in storage youll see why actually as we move through the presentation the other thing to note the water bank 82. 7 percent this year last year 32 percent is a significant improvement for us on our water system storming now looking at the other called reservoirs i will note that were seeing most of the reservoirs in the stat and the one hundred of the historical average for this time of year and very close to one hundred if theyre not there pedro is now shaft at 6 percent and seeing them added one and 5 percent of historical storage the state is looking up from last year heres or here your locating precipitation to hetch hetchy the red line solid line the water year 2017 as you can see that is tracking our wettest year 1983 for to get more precise the precipitation index for this week were at the 6. 8 inches for the year and october was credibly wet in the 95 years i have history this october was the seek highest 1983 the first highest with the precipitation and that has resulted in a significant amount of water available for San Francisco if you see only the next slide we have 79 acre feet that is available to San Francisco were well above for the entire year last year and that is shown on the purple line oh, im sorry, im sorry i meant 2015 last year was the green line weve not have available this time of year when what i added the amount needed for the storage on july 1st of this year three hundred and 73 like i said were 79 acre on the way there. On the bayview the significant perspiration october was a good month were at 4. 8 inches for the year and typically this time of year one inch and nature this is significant our local system is starting to get charged up as a result of the storms but the next storms we will see significant progress as far as loma on the delivery side our customers have been responding to the wet weather and we are at two weeks ago one and 73 for the last reporting week not shown on the slide one and 60 million gallons responding to the wet weather and thats all unless you have questions. Thank you commissioners, any questions. I have a question. Last year, we had el nino year that kind of shows no correlation between that and the perspiration here. Actually, we heard from the lifetime people saying were not showing an el nino i know there is talk in the press it is the feeling that is were not showing an indication either way hes actually started to warn that is like 1997 a big year for us we signed off at the same time. Thank you. Thank you any any Public Comment. I love the chart the 79 where we are and heading 73. Uhhuh. I mean that is does that mean little 79 will stay there weve had no rain until july. Yes. Yes. I understand. Yeah. Thank you okay. Thank you any Public Comment on the drought report mr. Kelly. The next item. Is the quarterly audit Performance Review nancy. Cynthia goldstein president and commissioner im nancy the director of internal controls that is for the audit for the fiscal year 2017 our recorded is the highlight for the puc for the external parties and summarizes the audit and the information to date 6 month calendar for all projects thank you. As highlighted in the executive summary 35 projects in stages of progress of total 5 were completed in one and each are in progress as we continue we have a number of projects definitely increased as more supplies audits are announced in the audit took place. So a typo the 5 audits were that of the management of the selfcertification for the north america Monitoring Program the second audit a series of audits by the Financial Services team for the fiscal year 20162017 for each of the watermelon and hetch hetchy enterprises the auditor completed the phase two of the Health Program pursue looking at to quarter one and two and beyond the following are anticipated franchisees for the Energy Center for the completion in quarter two with a internal audit and the performance audit for go Solar Program for rebate incentives and the audit in practices processing are the comprehensive Financial Report for 20162017 and the whole revenue requirements account for the prior fiscal year. As part of ongoing reporting of open year recommendations the port continued the prior recommendations is 87. 4 percent the enclose to continue to management to the open recommendation increase Response Time and enforcing the will accountability and trained within the management well continue to keep the commission on the audit plan and with that, this concluded any update. Commissioner any questions. Thank you for your work and at the risk of sounding like a broken record the Audit Program is first of all, second to none as far as i know in City Government anywhere and 72 hours one of the things we rely on a as a commission to make sure the details we canned get involved if are handled properly so it is very available what youre doing i appreciate 9 work and dont let our silence lead you astray on that. Thank you. Thank you. Okay mr. Kelly. So the next item. Is water Enterprise Capital improvement programs where we report dan. Good afternoon commissioner dan wade first start off with the Capital Improvement report some highlights in the cover letter ill not read but one thing since the last reporting quarter that was made to extend the daily water extend the project by 4 months a decision by the project team that had a new impact on the schedule and some of the local projects that are currently under evaluation and were anticipating rebaselineing of those projects i want to highlight that well be coming back to you early next year with revised schedules and the other thing i want to remind you the budgets are updated to encompass the cpi that was originally approved by the board of supervisors other than nothing has changed in the report and ill be happy to answer any questions you may have. On the wsip. Thank you, commissioners. Report to the baseline a baseline conversation. Looking forward to the baseline conversation. Yes. Regarding the schedul schedules. Now id like to turn to the Water System Improvement Program if i can have the slides please. So the overall status of the wsip excuse me. Is 93 Percent Complete as you can see the numbers of regional and the local numbers the local program essentially is complete all the projects in service we do have an Ongoing Service with the lake merced pump station with electrical issues well be coming back later in december to ask for an extension of that project to resolve the issue the proximately costs has not changed the Overall Program is on schedule and budget that is played baseline earlier this year. And just to highlight a few accomplishments we did complete the final construction on the Water Treatment plant had a claim from the contractor that was successfully r0e68d through mediation we have the construction contract we were able also to finish final projects on the bay tunnel and the pipeline schematic upgrade and the other highlights similar to the past received additional reward in the lobby of this building a display of the wsip awards more than 50 that is something we wanted to share with all the accomplishments of the project team. Moving on to the projects still in preconstruction there is really only one the castro project excited about the fact well publish the last ceqa document later this month on november 30th for the draft review and expect comments anticipated certification there that will go to the construction there pending the ceqa certifications and finishes about the same time as the replacement at the end of the program the other thing that is in preconstruction the new wsip projects weve approved earlier this year a corrections of items needed to meet the Service Goals promised under wsip so well initiated the designs and youll see those start to go to construction in the next year. For the Calaveras Dam replacement, of course, the last project or the largest projects in the program we continue to make progress this photo with the dam on the left that is the existing dam and the red line is the future crest of the new dam and what id like to point out we started the dam itself we started earlier actually, the beginning of october and placed the first list of clay in the foundation as you can see in the photo a couple of stock piles in the elevated one a great deal of that is a drainage material that placed adjacent to the ground material that the clay core of the dam id like to sodium in on that i want to highlight how tedious this work when you start putting in the clay core for the dam how clean is clean as you can see this the the stern at the walk with the dam standing to the side because everybody wants to be sure the foundation is clean to make a good bond between the clay and the foundation that is extremely critically portion of the project in terms of the dam safety now id like say that it is not going to be this tedious throughout the duration it will really when they first get started everybody is on the same page regarding how clean is clean before we move forward once everybody is on the same page that the pace starts to pickup, of course, a lot of handwork to make sure the clay is infected in the crevices and start using the equipment to bring this up as construction moves forward. That was actually, the first day with that photo right there weve recently completed the tower and as you can see the need to the original Spring Valley and the weather vein placed on top of the tower to be a portion of project that is capped off okay. So moving on to the alamany creek he wanted to show this picture from 1931 shortly after the construction when this was completed a dam that diverts water to the Calaveras Reservoir on the creek essentially expands the water shed to the reservoir and the tunneled that takes the water from the facility to calaveras is on the righthand side behind the concrete structure on the righthand side of the photo i want to show that photo youll go out there prior to construction it looks exactly the same since 1931 i in fact, i was out there it looks exactly that like that with water pouring over the top of the dam and the reservoir so this is is a recent photo of the dam there in the creek bed the water flows from the bottom left corner up to Alameda Creek and the tunnel to the abutment and sierra club what we are doing building a fish ladder around the right hand of that dam to include assess of the fuel head into the water shed this project is moving along and this is a photo of looking down stream of the construction area that the dam is there in the middle of the photo and upstream what i see the new conduits for the water that is innovation to be collected on the right side of creek through screens and conveyed to the tunnel the project is most often along this concrete court prior to the one shut down will continue to the end of the program and one of the water storage Recovery Project the 13 well sites there 9 first contract are essentially completed as we speak and kraeshthsdz looking for that next year there are issues to improve that due to regulations that so changes made we anticipate start up the locations next year the primary challenge on this project remains citing two sites if the san bruno as well as bosca it is really getting their Heads Together on this. And the last project i mentioned about the regional Habitat Restoration the last project is the nonnative vegetation remember weve made good process 24 hour and right now there are buttoning it up for the winter and that will continue through 20152016 as well ill be happy to answer any questions you may have. Thank you, thank you commissioners, any questions for this gentleman. Thank you. All right. Any Public Comment. Seeing none, mr. Kelly. And that concludes my report. All right. We will move on to the Consent Agenda mr. Secretary read the items. Item 8 the may be acted upon by a single roll call vote of the commission. There will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. Item a approve for the agreement c s two arthurs and b accept the contract approval for the modification decreasing the contract with the time extension of 19 consecutive day item c is removed from the calendar and item d acknowledge that staff is in the design process for the Southeast Community facility on evans and the development of an does remember Green House Program. Commissioners any items youd like like pulled off consent calendar. Id like to move the consent calendar. Okay. Any request from the public to remove items can i have a motion . A second any comment all in favor, say i. I. Opposed . The consent calendar a b and d items are carried thank you. And item 9 approve for the specifications and award contract in the anonymous of 31 million plus to the lowest qualified responsive bird the construction company. Ms. Ho. Kathy ho for the infrastructure this project is to determine 0 existing facilities at the yard and to construct a new admin building and to have prefab buildings and 3 canopy structures 6 bids all over the engineers estimate and and consulted with public works their noticing the issues with theyre building projects theyre coming in over engineers estimates the funding from for this Additional Base bid will be coming from the water shed center for the time being and the water shed center the payment is looking at at the engineering to trim costs on the water shed center. Okay. Any particular cause for the increase. I think there is so a lot of Building Construction throughout the city so public works theyre saying the bids are over because of the construction that is going on throughout the city. Okay. Thank you. Commissioners. Yeah. I dont understand so the water shed the Education Center whats it called. The water shed center. So the money thats where the money is going to come from. The additional 5 to 6 millions. Is that going to jeopardizes this project. Well wont have a water shed center but value the engineering and come up with a more efficient way of building or constricting constricting that. I think also there are other projects that may come in and have contingency or because that is a later. 09 projects so the a gm is looking at theyre ten year capital to juggle to try to accommodate this construction as well as the water shed work. Id like to at some point id like to get an understanding the where the contingency money and the prelims for the water shed that a great project ill hate to see it compromised. Well come back with the water shed center and have the monies how how it is looking like. Thank you. Id like to point out that this is a trend that were seeing given the number of cranes and how much work is out there a lot of projects within the city not only San Francisco public works but also the port mta, bids over the engineering estimate and also were seeing fewer bidders theyre to busy dont want to bid we were working on trying to resolve a settlement and you know negotiations not with the city but a private person to do work he was trying to get bidders and one didnt want to bid so this is really challenging and you know it is for me being with the city for 3 two years ive seen this cycle we need to try to figure out how we can you know position ourselves to at least be in a position you know where people will like to bid with us but the fact people are very, very busy we need to try to figure out you know we can maybe relook at our estimates to take into consideration. Well, one thing there is not a lot of bidders so this is ill expect if things are that tight you might have 56 bidders but there were not a few so keep an eye on i know at other times because of steel projects went up it is pretty clear reason why so ill just you know we need to revisit the center but keep an eye on the trends to learn from that. Through the chair can you look at that. Great. Thank you. Can i have a motion . So moved. There is a motion that has been seconded any any Public Comment. All in favor, say i. I. Opposed . Item 9 carries. Item 10 please. Item 10 approve the specifications in the work contract in view of them of 29 million accomplice to the lottery quality and responsive bidder j m b construction. This item actually came in within the engineers estimate with the pipeline project part of the original wsip water supply projects that and this project will supply to m g d water when the project is completed we are putting out the we are getting it done through the 3 construction cracks that is the third to do the pipeline work that connects the recycled water plant to Little Reservoir and pump station in Golden Gate Bridge so the second contract that will be coming out for the Treatment Plant itself at oceanside facility and the third piece will be the pillage station reservoir in Golden Gate Park we had to startle the contracts theyll all finish so we can get this done for the whole facility. Is there any uncertainty about reservoir and pump station locations. No, because i think their modifying what is in Golden Gate Park theyve put in a reservoir their not fully utilizing i think most of agreement are being worked out and you may have approved them earlier. Okay theres been some shifting of position within rec and park were at the place to spend serious money. Steve richie has met with them and this has not been brought up as an issue. Commissioners. Like to move the item. Been seconded comment . All in favor, say i. I. Opposed . That motion carries. Item 11 item 11 a working group on the cleanpowersf plant. Ms. Hale. Good afternoon barbara hale assistant general manager for power first, i want to give a short update on cleanpowersf efforts before we go into the details of the workshop and talk about enrollment and activities on the enrollment we continue to successfully serve our customers our may enrollment i have no changes since the last meeting were serving over 74 active locations and the opt out is 2 percent so weve opposing to stay there on november one we began serving additional customers in districts 5 and 8 Customer Accounts shifted to cleanpowersf with the november meter reads so by the end of november well be able to report what our Customer Base we expect is that 3 thousand we are currently experiencing on opt out percentage of one. 5 percent for the Fall Enrollment group we received im happy to report nine hundred and 27 up grades so weve reached the milestone supergreen is more than one thousand accounts thank you san franciscans customers sign up our the future exploratoriums were the fact of the matter go 74 percent are supergreen so that enthusiasm looks like that will continue which is great on the rates the california Public Utilities commission will be issuing a decision on pending pg e rate requests and transition rates we know will change the enacts to the hetch hetchy customers will be small and the revenue will be neutral with respect to cleanpowersf we are expecting the cleanpowersf customers to experience a small bill increase relative to pg e bundled service and newly until the next pg e rate we expect to be an increase in the spring or summer so there will be a period of time where we expect our raised for cleanpowersf to be lower but the overall built enacts because of the tci a that pg e charges our customers will be a small increase the proposed decision from the california Public Utilities commission is expected later this month on the issue well have an opportunity to comment on that and definitely take that the subject property and the puc will issue their decision rates will be on january one ill be happy to answer any questions you may have. On those topics. I have a question sorry. Uhhuh. Will the pc i a question be revisit for the rates or. The pcia is a piece of california Public Utilities commission december decision yes and we are on the cpuc front and on the sort of cost nonbypassable charges were active in a working group that the california Public Utilities commission established on the formal the pcia calculation and together with the other Community Choice agree grandfathe grandfathers the methodologies will which was and next for the legislation season collaborating on what sort of changes to look for legislatively to address various cac and investor utility issues including the sharing of investor utility costs with pcia customers so the plaintiff cia methodologies probably will not be finished or revised before the meeting on the rates; right . Thats correct. Yes. Okay. Im sorry one more question that 70 plus if so how does that complete with cac. Thats one of the tops will be addressed if you indulge me the presentation were switching into is really to see you know the effort is all about seeing how to accelerate the Program Enrollment throughout San Francisco you know back in december of 2017 we presented you with a Business Plan that Business Plan had some projections and now looking at how to accelerate these revised you well come back in the spring with that plan commissioner vietor you asked more information during the development of the plan and not land the plan on you in the spring this workshop will be responsive to that request with that introduction im going to turn it over to responsibility over to mike our cleanpowersf director. Thank you. Good afternoon, commissioners. Good afternoon. I might not be wearing a chicago cubs tie laughter before i start, i felt like ill be remiss not to congratulate you in the world series the giants fans acknowledge that but i was roll call our work basically a year ago and you announced at one point weigh launch the program and the cubs will win the world series they happened in the same year anyway congratulations offering great the presentation is focused on reviewing the work underway on the plan. Im going to start with the implementation approach and a consultant of the plan and finally ill share some of the research weve been doing with the cac programs some initial Lessons Learned and the next step in the process. So this should be a familiar slide from the Business Plan activities and updates over the course of the past year the goals the Commission Adopted for cleanpowersf and we endeavored to consensus with the balance to those goals for affordable and Reliable Services for the portfolio with the lower Green House Gas emissions and invest our revenues in Renewable Services and jobs, all while providing for long term rates and financial stability. And what have we done towards chief of police the goals first, the launch of the program with rates a quarter of a percentage after accounting for the fees that pg e charges the customers second you adopted Energy Portfolio for the green product of 39 percent audible renewable with lower Green House Gas emissions overall and third you adapted a tariff an electrical vehicle rates and recently approved the steps for the cleanpowersf programs and well feet we are staff our staff works on the tariff to be made available next year. As you may know cleanpowersf launched in may 2016 it became the second Enterprise Program of a single or county and lancaster is the on that formed in Southern California all other cacs are Transbay Joint Powers Authority and the startup for an 8 million loan for working capital and also 17 line of credit to secure the transactions and we established cleanpowersf as a financially straight exit to provide the transparent to limit the financial risk on the power and launched that has a 50 megawatt opt out raised were projecting the program will be serving 50 megawatts within a year looking like we may go 20 percent. Lets see my colors get messed up but to help to guide staff in implementing cleanpowersf the Commission Adopted 5 best practices that cover the product content and the rate setting and phasing and the supply mettle and the reserve all the policies are summarized but the narratives are included in the december 8, 2015 packet the rates have to compete or beat pg e and established rates are sufficient to recover the program costs, power supply sources are sufficient for the demand that the program has sufficient Financial Resources to meet the financial obligations, and that the program has necessary staffing and support systems in place this is another slide weve cycled from previous presentations this is the note that cleanpowersf is the Major Initiative Offering Service citywide is an 8 fold increase putting it on power with the revenue perspective twice the size of water enterprise from a Customer Account perspective the statistics are in the bottom of the slide the account issue is a function of more multi family dwelling meters for electricity. The goal the growth plan is to accelerate the pace of growth in a financially responsible manner that is the goal that established ourselves this effort to do so the growth plan must answer fundamental questions resolve restrident their suhr the program has the in the Financial Resources to increase its power purchasing activities and organization alley handing growth and the metabolics to know when to hit the gas in terms of growth and hit the breaks for example the rate issues we were talking about before. Will have holistic recommends well present to you this is a road map for Program Growth that identifies the environmental and economic benefits of growth and the additional Power Supplies to meet the citys goals a proposed schedule and approach to financing the additional Power Supplies and establishing the enrollment plan. And these boxes identifying the components the the subject property area of the components were working on. Before you go on. Yeah. I have a couple of questions about you going on one the 17 credit when does that get paid back. The letter of credit is sort of the backstop it is available the way it was set up it will only be used in the case of a termination when a default the city and cleanpowersf is in default. Weve not entered into a credit arrangement. The letter of credit is j. P. Morgan that instrument is available to the supplier in that instance. Were not going there. Not at that point. The other piece as part of growth plan i want to flag it it came up before the actual product and increasing the greenness of that product question about natural gas and projections as the market continues to shift in renewables are more available and cheaper what that transition might look like. Your anticipating a few slides from the slides dont address our questions ethic to claesht but as any questions for accelerating the pace i want that to be a component to alert accelerate the pace of the product while maintaining the Product Liability as well. I think that once we go through the rest of the other programs weighing well see theyre able to accelerate. Oh, okay. At the did it for a cost or rational for a reason. Yeah. This is paramount to the growth plan we identified the goal as established itself as a vehicle for chief Financial Officer an environmental goals among others and the city has articulated a goal to contribution the Electrical Supply to one hundred Green House Gas emissions by 2030 and cleanpowersf is the means by which the city can really take action on that goal. More drarlg so thats going to be central to the growth plan and the gather source plan we do this year and every year Going Forward as Market Conditions change and the demand changes as well. Okay. Great. Okay. So the Development Experience of other cpas a number of slides summarizing the information on other counties have approached this the rates for the default electricity and the content of the portfolios the build out and compliery building and the approach to securing the financial supplies first how have the operating cacs been to Program Growth is this bicycle chart ill walk you through how to read this chart fairly data rich this bubble chart is the growth and relative in megawatts the cac program is identified on the list and the year on the y axis they represent a phase of the program with the first bubble with Program Launch and the last added fullscale the size of bubble is the size of the program in megawatts and if it is a solid line around the bubble the phase is completed and a doted line indicates the plan or provacative it is difficult to see the doted lines are difficult and the megawatt values are identified in each of bubble sanborn map is the first Program Identified on the chart it indicates that the Program Launched in 2016 and we will expect to serve 43 afternoon megawatts that calendar year the phase one will be complete by the end of 2016 thats why you see the size growing to 63 megawatts in 2017 that is the first full year of energy on the phase one the remaining 3 bubbles in the green cleanpowersf sector which are for 2019, 2020 and 2021 show the additional phases projected in the december 2015 Business Plan to get to the citywide serve and youll see two, that they are projected to be 13 megawatts at that time moving to the axis to the right the relative size of the cac programs and the first one is the lancaster that reaches maturity already and soma and mcare in the process of addressing community with the next year. Right in the middle of the project is clean energy that launched in october of this year and peninsula what youll see peninsula is planning a rapid planning growth in the process of carrying the resources to meet the projected demand of the additional phases as of this date peninsula planning on Offering Services to all customers in the Service Areas in 2017. A few additional observations once the fall enforcement cleanpowersf will an as large as lancaster and on with soma around the same time in their project development it will be the largest cac given Current Conditions when fullscale and the chart also shows how fast the peninsula relatively to the cleanpowersf business schedule and accelerating that pays by 3 years i want to emphasize our growth plan work is examining how we can expedite future phases of enrollment so we can bring the benefits of clear energy to san franciscans a faster timeline and in a financially responsible manner. Moving on to rates actually any questions on the last slide no. I have one at build out youre looking at a fair amount of energy being served by the cac program how does that relate to the size of pg es service area. That wont effect pg es service area the cac programs wont principally because that service area is defined from the Vantage Point from an Energy Perspective pg e has published the projections they see 40 percent of their generation supply service migrating i believe by 2025 a 40. 40. How does that play into the pca. An important part because the issue at hand is that pg e has made commitments on behalf of all the customers in the concept behind it is that the remaining customers are indifferent to customers departing for another service so it is important that pg e is making the projections theyll saying they should be pulling back from making for commitments especially long term commitments to serve the customers that factors into the longevity of the cac over time to give cleanpowersf for example, we had customers depart pg e shouldnt be ready to serve those customers and assessing the values take a snapshot want commitments of low migration for the customers departure and if it defines the cost ongoing obligations so again, it is important and it didnt necessarily effect the amount of pcia the amount is relate to the cost of resources that are in pg e portfolio against the estimated value so what pg e can get from the market in it sells those resources. Are some of the Resources Available to us to acquire from pg e or to obtain energy from them. Pg e has made the Resources Available for sale and issue offers and request bids Pacific Heights i periodically up for discussion when it comes to how to manage the what we call the remaining customers indifference and fairness to cac customers and make sense for cpas to buy the resources from pg e. If they fit with our profile for energy we want in terms of the you know it is Green House Gas it seems to be a way of reducing their argument we can unburdensome of these. Sure a strong argument for cac taking the contract costs there should be no cac costs. Well urban design greener so some of those probably wont yes. Thats true the type of resources can be at issue. Didnt you say the pcia wouldnt be affected and still be the same amount even if the customers migrated. The migration of customers didnt effect the sail of the pcia thats true i was trying to say if p cia started buying from pg e their portion of the contracts that pg e has secured on behalf of the cac customers and they were paying the Contract Price that pg e is responsible for there would be no need for pcia. Right. Now the reason the pcia exists pg e prices are expensive that brings the plaintiff cias prices up closure to where pg e is. If theyre losing 40 percent of their customers they should be pretty much less so the by cia should be going on dune over time what is included are long Term Contracts and much of that is Renewable Energy. Theyre still entering into but entering at a reduced rate right now because of the migration. Thats right. Well, because of market one clarification there the market for renewables has improved draeveng since pg e has procured under the portfolios contract. But if pg e didnt have demand bus customers are switching to cac theyre not actually in the market at these prices. My first reaction when i saw the chart there was a lot of cacs radio auto out you expect there be be a congestion in the market that prices may go up bus of not only our prices but others. Were aware of and considering and alcohol monitor it is hard to anticipate now without having done solicitation refresher not seen the trend part of it, it is the state and the cacs are trying to build in any capacity on the margin our new projects and new projects are competing against one another to get those but there could be a pace issue where cac has won a certain amount of the Renewable Energy if their portfolios and others cant keep up thats one possibility and no anecdotal or no evidence at this time this is happening now. If i recall some discussion about trying to have the various cacs coordinate if purchasing the electives. So well have informal conversation how to coordinate and pool our buying power 80 together i think youre aware the cac has formed an association recently cal cac those radio did types of topics that come up with discussing the policy and regulatory policies that cac is assessing and coordinating i think there is a a real opportunity for cacs to look at how they might collaborative through the establishment of the sort of Service Oriented gp n to have greater quantities to drive down prices and offer Certain Services potentially call Service Services for example. Thank you any other questions on this slide. Okay. Thank you. Precede. Thanks. Monkey off my back to rates so the affordability has on a hallmark of each cacs product at the time of launch each cac has offered lower rates at the time of launch, however, most cacs recognition theyre not in control of the rates making the representation theyll meet pg e for example, times running the rates i should be clear that the cost to mccustomers have exceeded pg e when finding for the pg a not operating cacs tend to have competitiveness rather than beating pg e with theyre marketing materials. This slide compares the operating cac default with the snapshot of the rate difference for the e1 the standard Residential Rate schedule for the investor and utilities for the default products that is cleanpowersf screen products the out liar is lancaster as i want to point out this lancaster is in pg e territory they compete with a different illustrate and a lower generation rate and as a result their pcia rate is lower that explains the big difference in relative costs the chart indicates that while s c e is 5 percent of their total generation rate pg e pcia is 25 percent of the generation rate pursue the operating p cac are offering rates that are all about 5 percent of one another one 5 percent of one another i want to point out that part of what were doing with the platoon a studying the costs of our fellow xeefrts and to better understand the expansions to help to spread the costs that is something well do with the performa analysis and i will point out that our initial finds with that scaling helps significantly in recovering the costs. Okay. So this shied is not showing up well, i apologize for that but this is a slide that compares operating cacs electricity portfolio with pg es and starting from the left hand it shows pg es renewable content with a y to 100 percent and pg es is thirty percent renewable and 59 Green House Gas emissions free with 23 percent of that source from uniqueer and hydro if you move right to the right of chart youll see the operating cost the first one is cleanpowersf and those figures represent the best current estimate given the supply and demand to state of what our content for the green default product will look like and youll see were currently project by project our products to include 40 percent bundled bucket one Renewable Energy generated from california 36 percent green house hydro electrical sources that includes 15 percent aroused from hetch hetchy this year. And then 21 percent from other hydro traffic light supplies provided by the suppliers for for a total of 76 percent g h a content that 17 percent red there between and the other 24 percent if cal pine generating united this supply actually provides Green House Gas emissions savings when compared to purchases from california i s l and that is 10 percent savings. How long is that california contract for. 3 years. So the takehome message is that cleanpowersf is performing well as far when meeting the goals to delivering more clean energy to our customers. Again apologizes for the light coloring but this is a forwardlooking slide and i mentioned before the major part of growth plan will be identifying the rate and quantity in which we need to increase our content that goal one goal to chief a g h g free this is the pg e projection of the green house within now and 2030 difficult on the overhead i apologize the y is the portfolio coming from Different Energy types of and pg e is project by project that will increase from thirty percent today to 53 percent in 2030. And its g h g 50 to 73 in 2030. In contrast the doted line shows cleanpowersf renewable default product if it were to maintain the 10 percent margin over pg e thats essentially where we are we projected out to show where we are at which is 63 percent renewable and then the top line the green house commended it shows the Green House Gas emissions squeezed out the cleanpowersf portfolio over that timeframe. The growth plan is going to start to lay out the options for meeting this demand but i want to point out were conduct a plan that provides for specifics to look at the optimal mix of the resources is and thats will be over a long term a 20year and well be updating that plan on an annual basis. Can i before we leave ill be interested i mean, i said subtly in understanding maintaining affordable how quickly we can move forward and meet that 2030 goal going g h g free and moving go forward with renewable especially with the success of the program that that looks like because the climate is changing fast and it is incumbent to make sure we get to the other side of the bridge maybe go back and put that in that would be great. Okay. Just a few more slides that is the comparison the build out and the complimentary programs that are offered or to be clear this slide shows the gaps we are Telegraph Hill trying to fill the cac is not Telegraph Hill developing a program to the best of our knowledge and that cleanpowersf doesnt intend to offer the program i want to point out about Energy Efficiency the customers have access to city administrative code and program for the programs and were planning to make sure that the customers are aware the programs to assess being a cleanpowersf customer didnt effect their goiblthd we contribute to the funds of the programs improving offerings to specific to customer needs is a part of cleanpowersf programs future and again what this shows is areas were Telegraph Hill staffing today the takeaway the largest cac program is the locate offerings here and cleanpowersf is implemented two, that meter energy and metering were in the process of developing one the terrace a balanced payment plan and ongoing payment the staff is Telegraph Hill working on those today and we have to make the programs available next year. Can i ask a question about the electrical vehicle rate how do you see that structured is it too early. What weve done as far the electrical Vehicle Market is a developing market what weve done is adopted the rates that pg e is offering we have a complimentary vehicle rate that pg e is doing and theyre two options and those options are intended to support different aspects of the market both but with the goal of charging at appropriate times we have you 36 tend to have a different profile they discourage on usage an area that will be cleanpowersf will be good grounds for policy making in the sensed as we better understand the electrical Vehicle Market and the customers needs cleanpowersf is tailor their rates for the time of use they con assume electrical vehicles are a sector of the market for demand response and it is something we can fill the box on the electrical vehicle side. So pg e lowers your rates if you charge between 11 00 p. M. I think 5 00 a. M. But your rate overall is we have electrical electricity lower in that sense so im curious to see what that looks like down the line and car sharing hoping that electrical cars will be shared this is the best city in the world to have electrical cars and a later discussion other plans for charging for people this is the structure and demands but love to see that someday if so it practical. An area were in active discussions not only for cleanpowersf but for hvlt Public Utility Services we have electrical charging stations and are working across the city to look at the best practices for extending the infrastructure and bringing our green house hetch hetchy power supply to that market so i think definitely intend to be more information on that. Thank you. I was surprised out how the electrical vehicle rate if you get the preferable rate mooifrns are required were at home during the day and actually cheaper to keep it under the old plan i charge my car at night so for anyone that is similarly situations as us to the Early Morning hours and not compare during the peak it takes a different kind of structure. Yeah. I think that you know it does speak to the evolving market a lot of research how customers use the electrical vehicles when they charge what theyre driving patterns are, and you know, i think this is an exciting area for us for cleanpowersf to really actually move the green house needle further by not just addressing the Electrical Supply but also to address the transportation sector but i think another layer there will be looking at the cleanpowersf demand characteristics and aggregate and trying to direct consumers to the times that benefit cleanpowersf overal program from a financial perspective. Okay last but not least we are looking closely at the credit requirements be associated with the growth all cacs have some form of Financial Support from the local city and county member agencies with the Transportation Authority or private lender had distinguishes out the usage of a lockbox of escrow account every other cac launched to date has utilized the lockbox to have the startup supplies cleanpowersf uses the letter of credit we discussed before and twerpt launching the cleanpowersf a year ago only a couple of suppliers with the box and the city of lancaster established the first multi party lockbox at the valet the peninsula adopted the multi party lockbox for example, and cleanpowersf opted out to use a line of credit to launch the program quickly and to be the best competitive we only have a couple of supplies and wanted to reach as many supervisors to get a competitive offer for the supply costs the lockbox has been critical to help to chief and plan by paid programs as a result the evaluation of the lockbox option will be a key program to our work Going Forward hello. Okay. So what are how findings and next steps were very much in the startup mode we can claim that the program has been a success thus far weve launched the competitive rates and fewer Green House Gas, however, well be bringing more information on the performance of the program over several months as the year concluded and other cpas use lockboxes to secure payment to suppliers without injuring the cost to the supplies that is representative in the comparative chart with the extensively priced lockbox are a key ingredient for more radical scaling than cleanpowersf projected in the Business Plan which was really an organic growth using the Program Revenues and additional collateral through a letter of credit in addition to your consideration of lockbox arrangement re developed the recommendations and conduct further analysis to understand what the Program Financial reserve should be and adjust the program and reserve policies to get give the program more time to meet them for example, and other Renewable Energy like category 2 renewables how much do we expect those to meet the growth rate a communication outreach perspective and power purposing and financial purchasing perspective and critically what is the staffing report to insure that we make no compromises in Customer Services and capability as we expand and with that, dont forget to join cleanpowersf. Thank you. I noticed one of the bus stops in any neighborhood has a very nice large poster that advertises definitely it is very good. We initiated an campaign that includes the posters theyre very nice. Thank you, commissioner any questions. I have one comment. First of all, thank you so much for your hard work i know that commissioner vietor was a strong advocate and but you guys played pokeer and had to show your hand against an occupant that didnt have to this is very, very masterful i think that i wish chicago could have Something Like that this program the way you guys were aggressor aggressive and thank you for the advocates this is a great year thank you very much for your work. Thank you. Thank you. Public comment. Mr. Brooks. Good afternoon, commissioners eric brooks sf green party our city sf clean energy advocates. And Grassroots Organization of our city a lot of hats as commissioner knows i did a deeper dive into the baseball met for i spent a lot of time growing in chicago i am from california i used to be skeptical i believe in incarceration ive been waiting one and 8 years not only in my lifetime for the cubs to win the world series the met for is great what weve achieved with cleanpowersf and the cubs winning the world series that is fortuitous but the world series is taking building renewable efficiency and the focus it Program Needs to have going from this point forward we need to win our up and down the is not pg e but the climatic change that will destroy that pg e is a good picture for the bad guys but the bad guy is the climatic change like the Baseball Team to win the world series against the climatic crisis cleveland is apologizes to cleveland you have to have an entire team of 9 positions to win the game you cant just say all right ill try putting out a pinch and try a shortstop and make them a catcher and maybe well add some outside fielders and base men later in the game if you do that youll lose the game and again, the game is Building Renewables not just we need to build local and other renewables so standards touch on the edges we really need to do focusing on getting all the players gathered and working together we have efficiency renewable and solar and wind and regional wind and demand response all those things being planned as a team effort in a network of resources all put together that all go out as a planned thing where a coach plans a game so were getting the best economies and the berries integrations of the resources together and putting the whole team on the field is our fight again, the climatic change and beat the other team thats it cubs win. Thank you mr. Brooks. See ive always known hes a great guy. Jason fried, executive officer. A whole heck of a lot it cover in 3 minutes ill do my best first of all, some of the things commissioner vietor i agree we need to go as green as possible one our program has a restriction how we get our electricity are all the restrictions needed theyre keeping us in the way of having a more money important build out and more money for efficiency and as well as more money to go out address find on the resources of Renewable Energy that work perfectly fine climatic change is an International Thing didnt matters where the Green House Gas we need to have a contribution into our grid but taking a serious look are we regulating too much where the electricity comes from that hampers our ability to get more electricity within the last week i got an email about a program theyre getting rebates for people and helping to pay for the installation of charging station within our property we should be looking at ways to do that not only are we encouraging people to use greener trouble to our ability to get people to electrical vehicles helps to grow our energy needs but cleaner electricity and getting them off of dirty fossil fuel ill encourage us to look at theres a Pilot Program but want to take into account that as well getting into some of the discussions we are going on around the long Term Contracts from the p cia i know your monitoring that one thing the deblow plant closure that can be impacted and one thing to keep in mind you dont need to go out and get contracts but the old contracts that ill defend pg e for a quick second it is rare they were great and needed at the time but theyre much more expensive and figure out how we balance that load for them without having them increase and keep the costs fair to the cac customers at the same time then the final one thank you to the staff their trier of fact to work hard but need to look at how were getting money from the charge i can guarantee you the department can do programs better but right now pg e gets to take the credit for the department of the environment but great if we got did money instead so i encourage to look at that if we can get that money and not through pg e continuation a better Marketing Program for us. I see some needing heads well be taking comments for next year for the world series and the of digesters completed. Can i make a comment. So i appreciated the Public Comments and just wanted to first emphasis in the grow plan a couple of pieces will be great to include we want to keep an eye on the local build question having when some flight assessments might happen thats in the mix angles ago to talk about what might be the low hanging fruit with the local build out and to build resiliency we have a Power Generation and from a job perspective there is a lot of opportunity ill thinking in the grow plan that would be great im hoping when we talk about accelerating the market mix as soon as possible for 100 percent renewable g h g freeze the question of restrictions ill imagine will be addressed as part of that because they were reasons to put the restrictions on and some might be valid but when we talk about acceleration whether that is regulatory or otherwise to leave it i want to point out we talk about affordability with pcia and other pcias are doing rec they have rates that are cheaper and at the same time, we wanted to do local build that are more expensive so were still with that you know juggling act were trying to do it responsibly and we look at the lockbox we can move towards but i think we agree that maybe very should look at some of the restrictions we have and the other thing you you know it maybe challenging to put the current contract and decrease the costs we may not be below pg e. Right. So, i mean we have to revisit all of this im saying were cautiously moving forward thats why i dont want to Start Building stuff and be more expensive than pg e. Yeah. Thats why im saying you know we look at everything. I think this is some a shifting collapse the i cant do what we purpose pg e assets as we grow our program it is interesting piece of mix and just in the growth or Business Plan understanding it can change to factor all the things it i dynamic. Any other questions from the commissioners general Public Comment thank you all no action required on that item staff will be back early next year for followup. Hi emilio nice shirt laughter okay. Were about to go into closed session. Madam secretary call the items for closed session. Item 14 unmitigated claim jason and selena and item 15 the existing claims along the martel and pro 21 will not be heard today. Thank you any Public Comment on items to be heard in closed session . Seeing none, can i have a motion . To assert the Attorney Client privilege. To assert. Move to all in favor, say i. I. Opposed . And that motion carries and well now go into closed session. Mr. President , a quick moment for the crews to come join harlan and i thank you for honoring the World Series Champions they have invite commissioner caen. Can i vote. Yes. Please. laughter . Did you emilio . Since you dont have a hat to were ar. laughter . With my were back in open session. During closed session approved settlement on items 14 and 15 can i have a motion . Whether to disclose during closed session. Move not to disclose second and. All in favor, say i. I. Opposed . That that motion carries and is there any other new business . Okay i should annoyance that the next meeting on november 22nd is cancelled because of thanksgiving weve been setting up appropriate a meeting for that and recognize that is a birthday laughter happy birthday. Any other business before this commission. Well, how about happy new year ray for the cubs. Okay were now were here to raise awareness and money and fork for a good accuse. We have this incredible gift probably the widest range of restaurant and count ii destines in any district in the city right here in the mission intricate why dont we capture that to support the mission youths going to college thats for the food for thought. We didnt have a signature font for our orientation thats a 40yearold organization. Mission graduates have helped me to develop special as an individual theyve helped me figure out and provide the tools for me that i need i feel successful in life their core above emission and goal is in line with our values. The ferraris yes, we made 48 thousand they were on top of that its a nobrainer for us. Were in and fifth year and be able to expand out and tonight is your ungrammatical truck food for thought. Food truck for thought is an opportunity to eat from a variety of different vendor that are supporting the mission graduates by coming and representing at the parks were giving a prude of our to give people the opportunity to get an education. People come back and can you tell me and enjoy our food. All the vendor are xooment a portion of their precedes the money is going back in whats the best thing to do in terms of moving the needle for the folks we thought Higher Education is the tool to move young people. Im also a College Student i go to berkley and 90 percent of our folks are staying in college thats 40 percent hire than the afternoon. Im politically to clemdz and ucla. Just knowing were giving back to the community. Especially the Spanish Speaking population it hits home. People get hungry why not eat and give the wednesday, october 265, 2016, of the San Francisco board of appeals. The presiding officer is commissioner honda and we are joined by commissioner fong and commissioning commissioner wilson will be absent to my left is brad the deputy City Attorney and prides the board with any legal advice and at the controls gary and im Cynthia Goldstein the boards executive director. And joined by sacramento the city Zoning Administrator and representing the Planning Commission and Planning Department devices are prohibited. Out in the hallway. Permit holders and others have up to 7 minutes to present their case and 3 minutes for rebuttal. People affiliated with these parties must conclude their comments within 7 minutes, participants not affiliated have up to 3 minutes no rebuttal. To assist the board in the accurate preparation of the minutes, members of the public are asked, not required to submit a speaker card or Business Card to the clerk. Speaker cards and pens are available on the left side of the podium. The board welcomes your comments. There are Customer Satisfaction forms available. If you have a question about the schedule, speak to the staff after the meeting or call the board office tomorrow we are located at 1650 mission street, suite 304. This meeting is broadcast live on sfgovtv cable channel 78. Dvds are available to purchase directly from sfgovtv. Thank you for your attention. Well conduct our swearing in process. If you intend to testify and wish to have the board give your testimony evidentiary weight, please stand and say i do. Please note any of the members may speak without taking if youre going to testify please standard youre about to give will be the whole truth and nothing but the truth . I do. Okay. Thank you commissioner president honda this is is a housekeeping item four on tonight calendar regarding a Building Permit on twin peaks board of that case has been withdrawn and not heard this evening. Regarding item number one that is general Public Comment this is the opportunity for anyone who wants to address the board on a matter within the jurisdiction that is an item not on tonight calendar any general Public Comment tonight okay. Seeing none move to item 2 commissioners questions or comments and still crying being at last nights warriors game other than that im okay. Item 3 the consideration of the minutes of the Board Meeting of the october 19, 2016, additions, deletions, or changes can i have a motion . To accept the minutes. So moved. The motion from commissioner lazarus any Public Comment on the minutes. Seeing none, then on that motion from commissioner lazarus commissioner fung commissioner president honda commissioner swig 0 e thank you that item passes with a vote of 4 to zero commissioner wilson absent well take our item 5 appeal carmen versus the Zoning Administrator on richardson avenue protest protesting the issuance of a rear yard variance constrict a 3 floor and roof deck for the rear yard of a singlefamily dwelling and well start with the appellant. Good evening and welcome. I guess you didnt release i ordered a private hearing this evening. Yes. This is so rare actually. I feel like im at the end of the welcome reuben, junius rose i need to make a disclosure. I wish to disclose ive hired reuben, julius rose on a on a project of my own the handling the board will not have an effect on my decision. This evening. Thank you, commissioners Ryan Patterson on behalf of the appellant an appeal to construct a third floor on top of a 2 story in the marina my client owns the adjacent property directly to the north at the 2547 to 49 cellist nut street and owns the rental property on Chestnut Street renderings and were here because the variance that was granted will have a terrible impact on the properties destroying an existing bedroom as you may know the board of appeals has wide discretion in hearing the deliberations with the power and the board thinks that vaurnsz are not to be granted whether when there is a harding park on the property that is hardship variance law and other things not met including that is a qualifying hardship that makes the variance necessary not the run of mill normal circumstance with a small lot and someone needs the lots in order to develop it, it is a small lot but created by others predecessor in fact, the owners predecessor used to own both properties the appellants property to the north. Can i have the overhead . This is the the subject property and the appellants home here this is lot 12 and this is lot 12 a and the history is in 1940 after a road was cut to the Golden Gate Bridge these lots were divided but not until after the the subject property u subject structure was built one owned the lot and built the existing appellants property long before in 1939, 1940 built the structure after that was dub after the same owner that happened to design this property that owner decided to split the walk intentionally creating the sub standard conditions for both properties this tina separation between the two now they were allowed to do this because the Building Department imposed a asking 40 permit to construct this property theres a restriction and on the overhead you see it note on the permit to construct mr. Boskovich will talk about that requiring the separation is between the properties so the applicant comes here to destroy that decoration was the condition of constructing their house this is the old adage ask for a cookie instead of a crone im happy to address that ill mention the variance are holder counsel pointed out one thing that super seated didnt talk about a legal citation i can give us other citations pointed out one citations is inplausible to this situation ill ask her to say a word or two thank you. Someone reminded me, you cant fight city hall yet here he am asking for an appeal thank you for your time my name is carmen ive lived on 2547 Chestnut Street lived here my whole life and own rental unit on cellist nut the building next door to my home in 40 years ive never formally opposed anything any of my neighbors wanted to do by that project will effect any home and the two homes of high neighbors the addition of a third floor to a roof deck walls in my two properties filling in the small setback brings Richard Southern closure to my building only a few feet between the building and and setback notch that separates that richardson from my home and the neighbors building those buildings are tight like puzzles pieces were able to live side to side because 68 richardson a 2 Story Building by upholding your deoperating us of privacy and the quiet enjoyment of all our bedrooms on the back all of this so 68 richardson a building that defies city code can have a hot tube and fire pit so i ask you to take a look at this project and overturn this variance decision thank you. Good afternoon, commissioners ill be very quick the 1939 code when this Main Building was built here basically said do you want you want to do when they got a permit to build the permit application referenced the housing act required a 4 feet separation and 8 feet separation to two building it is in the brief verbatim to the housing act from that window to the bedroom to the average of that preschools no such if they in fill that puzzle were effecting this permit when they permitting this building it was on the same lot and if you read the description on the application it calls out separation from one building and the other building both the buildings are tried together to this notch you remove the notch our opening up that window and have to revisit that issue. Thank you okay. We can hear from the variance holder. Welcome. Good evening commissioner president honda and commissioners david silver had an on behalf of the Carter Family can i have the overhead . Sfgov just to orient everyone to the site this is richardson right here this is congest nhestnut over h pink dot it the carters property quite a way from the property this is a 5 thousand square feet property with two houses lot line to local 104 line 100 percent coverage were over here 6 hundred and 18 square feet 5 thousand, 6 hundred and 18 youll notice that every house loan richardson is 3 stories including our adjacent youll notice all the houses along chestnut 3 stories now their chief complainant as i understood their testimony is about a window this is the window this window is on the second story of the rear of the sdelz property youll notice up still yesterday it had bars across it, it is also inoperable on the lot line and had the shades drawn 100 percent of the time it is my opinion that theyre raising this to try to over turn the variance there is no, no impact the window is not used for light and air it gets plenty of light from the south and west and continue to get it same light after the addition is built ill mention those workers who were hired by mrs. Diesel to tear down the bars yesterday didnt give any, no, sir, to the caterers this is their stairway no notice. The lot depth 80 is 25 feet the average lot depth is one hundred an irregular parcel severely undersized their crammed and like to stay in the city and have a family only the two of them with such a small footprint of 6 hundred feet with another story to provide an extra bedroom or two have their kids and stay where they are hoping well chief that. Now the Zoning Administrator as we know has great lad it is the duty to exercise his discretion to deverbiage from the rear yard requirements he deems it appropriate hes experienced his Board Discretion appropriately in the face of reasons ive explained the 3 stories will be consistent with every other house on the block of richardson and also with chestnut no impact on the window as i showed you and the deck on the on top of roof is intended to provide a little bit of open space for the carters they have no rear yard the only ones on the block with no rear yard so hopefully with that deck they can benefit from a little bit of outdoor space and ill remark that the architect for the carters made a change to the project as requested by the Zoning Administrator and we will ask that you uphold the variance thank you. Thank you good afternoon Scott Sanchez Planning Department. The the subject property on richardson within an rh3 district that allows up to 3 unit and the lot as known is substandard 25 wide by it is generous a large section that is sliced out of it when they created richardson to create assess to the Golden Gate Bridge this relates to a proposal to expand the existing building as stated the singlefamily dwelling has within bedroom one vertical addition it provides a roof deck and given the size of lot very little open space and little habitable space that provides more ample space for families living on the the subject property as well as the open space on the roof it relate to a Building Permit application that was submitted at the end of 2014 it does trigger a variance the variance application was filled the hearing to be held earlier on february 24th the original scheme was the stairs while stills interior to projection more to the adjacent pertaining to the north we received comments from the neighbor to the north with concerns of the impact on their property as is applicant look at a scene to look at it is within the footprint and provided the project to keep it within the footprint of the building on the ground level to the the subject property and in terms of history of the lot yes i mean this was created it was legally created it was created at some point between 1940 and 46 it appears on 1946 block that is important because 1946 minimum lot requirement so after that time it could be only created with a variance but it was lawfully created has the legal singlefamily dwelling on the the subject property in terms of the hardship there is a hardship with regards to the lot and the appellant augusts it is something while not of the applicant making of the predecessors making section 305 whether or not it is a hardship created by them this is not the case and it following the logic of the appellant none will find a hardship because someone responsible for the creation of the lot at some point in time and always a predecessor that created the situation that is there today with the appellants argument youll not be able to define that or reject that notation if you find the 55 unit have been met they made the changes responded to the concerns we had the level of this this is 1re78d above at the level it is developed a substantial separation within the buildings the main issue is the interpretation of the notch and how it may impact that window it is not going closer to the footprint at the hearing the concerns that were raised by the neighbor in regards the impacts on the windows that are quite a bit further away towards the chestnut frontage of the property but still have the project sponsor we issued the decision letter by january 27th and it is appealed there is as i mentioned the permit application the section 317 was noticed and that is the states not heard by the placing not that im aware of it is scheduled at this point those are the main points that i wanted to raise from for the boards consideration. And ill be happy to answer any questions you may have. Thank you. So do i go ahead. No, go ahead. Mr. Sanchez you stated that the changes you required made them keeping it within the existing footprint but filling in the notch is expanding beyond the footprint. The notch is only the second story the ground level thank you. I understand theyre intending to fill from the notch above the first building. Thats correct. On the rear yard is 45 percent. 45 for that and 15 feet or 25 percent whither is greater. The impact on the window is not significant. Because it is maintaining a separation the initial proposal there say, i think about a 3 and a half 3 foot 3 separation within the Property Line and the subject this wall that is maintained the previous proposal so you get to build within that area in terms of the stairs that connected the 2 story to the proposed 3 story had them keep it within the footprint and not expand beyond the footprint of the existing building. That didnt change from the current time. Right for the project a weve heard. Commissioner swig. So ill concerned about the owner of hardship and hardship goes both ways im a homeowner and have bought and sold a couple of homes in any life one of the things when i buy a home you do Due Diligence and do cc rs and add ones to previous permits and Something Like that. Buy our house Fort Richardson but looking at to the Chestnut Street neighbors they bought their homes probably could have dont know wasnt there but if it was me would have looked at and saw that house was closed and feeling comfortable i was protected by a permit when the house was built so i go ahead and buy the house so is there not a hardship created when someone who has owned a house for a period of time whether or not one or four judges doesnt matter bought the house because a permit was in place to say that will not move further from this what is the argument and the issue of hardship with regards to appreciation owner and current owner again if i buy the house on richardson i look at the cc rs i look at previous permits i see on the previous permit it says i know there as restriction here so if i go ahead and decide to do this im creating the hardship for myself it seems is that right where am i going wrong. We can blame this whoever built this in 1940. It was wrong in the in the first place. On chestnut. I live 5 blocks away. On chestnut is not compliant and the window of the Property Line is noncompliant they bought that knowing that was adjacent to the building in regards to 68 richardson a special refresh my recollection no setting back must be a setback no planning restriction not a setback requirement of any planning approval that was part of Building Permit approval for the Building Permit itself this so thats not the things that of enforced by any planning regulations it is subject to change this will have to be reviewed by the department of building inspection and if it causes an impact that needs to be addressed at that stage of the process it didnt appear to be in violation of any Building Permit requirements as now i believe those requirements exist theyve superseded by current requirements not that im aware of that will prevent the subject proposal into moving forward. Im bother by something you just said because it undermines it seems to nine things that go on here on occasion we have found the project sponsor tagged on something a tag on something is in perpetuity you have it ive seen it in our brief imperpetuity ones you build it forgot about coming back and asking again so it was what you just said you kind of dismissed a ruling any ruling we make is contact dismissed because you choose to. With regards to something as a permit. From the laws change in this case, the requirements no longer exists cant enforce a requirement that no longer exists and that will enforce the perpetuity weve been presented with i mean part of it is to the property who guess buying if no bead restrictions talking about what the requirements are and the Building Permit allows them to do this i mean it is a sargent issue in the variance. Due to the change in the law and the codes that the 3 feet or that 3 foot setback that was required in 1946 was dismissed for or. Least. An 8 foot spraegs is no longer required thats my understanding. Are you finished. Yeah. That was along the lines so mr. Boskovich showed a documents on the overhead indicating that there was some type of special restrictions in the past lots of restrictions you knew current laws radio over ridden is that the case. Not a notice of special requirements on the property noted as a condition of approval by the Building Department a health code requirements for the property we do this approved per planning code xyz if it Planning Section changes in the future the property will be subject to those future requirements down the line just because it is noted on the application didnt mean that. Set in stone. Exactly. Okay. Next question is the appellant mentioned did window is that a lot line 2021. It is within closely proximity to the lot line it looks like a foot or two of the Property Line. Is that a conforming or nonconforming window. With the youll have to ask the department of building inspection about those matters. Okay. Thank you. Commissioners do you want to ask the question of the building inspection we dont call them up usually. We have rebuttal. Well take Public Comment anyone wish to comment under Public Comment . Hi, im a Dell Lawrence i represented any client for a tenant in 2541 and 43 Chestnut Street i wanted to know i didnt get is the lawyer for the people with the variance or with the people from the Planning Department. Advocating any attorney i didnt get it the attendance im advocating for one is a young family with an 8yearold child that lived in the apartment for the past 5 years and a young couple that is rented the apartment theyre in rentcontrolled apartments having they have no money to move it will block pair light and fresh air when i represented the apartment he highlighted how light and airy those two flats were for them to raise their families in and had a Lovely Garden ms. Diesel didnt have any backyard as well the same configuration but this iowas one as a lovely the yard i want to read a letter. Amends are you employed by the parapet at this time are you the project manager and. I maintained the lots for the tenants the tenants submitted a letter and asked me to read it. Who are you paid for that in renting those flats. I was paid by ms. Diesel for renting the flats and. I think she shouldnt be allowed to give testimony open her own behalf but allowed to read the letter. She wrote this letter to the city and county and board of appeals it, it is dated october 24, 2016, weve lived on Chestnut Street for 3 years and have truly enjoyed our apartments our master bedroom it has a nice amount of light and air the only serious of light is from the backyard as a low building allows the sun to shine in this the richardson area is allowed inform construct this well lose the ventilation into our bedroom our source of light will essentially be a light shaft not be able to see any sky and the ability for air to flow through the window and described the value of our apartment as Good Neighbors weve not done anything to invite this into our lives our bedroom looks into the bedroom of richardson avenue and shuts on the windows our neighbors leave their kitchen lines and the light penetrates if it is allowed to have their way there will be more untuition into our daughters bedroom the roof deck will greatly diminish the enjoyment and well receive more noise from the deck we can often hear the occupant from the house screaming foul language and we i can only imagine what will happen. Your time is up. Whos bedroom backs up to the backyard were copyrighted that will evening fringe on the quiet and we drivers license are legal restrictions and respectfully ask that the board of appeals deny the requested variance i have copies with. Thank you so you can see it is their words and not mine. Okay. Thank you any Public Comment on this item. Step forward. Good evening Jonathan Wade thank you for letting me speak i live on chestnut on the corner of richardson and chestnut i have two children a 12yearold daughter any daughters bedroom faces 68 richardson at the back of the house my daughter is going through a rough part of her life a teenager and the last thing she needs is the additional noise and privacy encroached on with a hot tub and we can anticipate what will happen to that deck im trying to protect my daughter as any father will do this is my daughter so i humbly respectfully ask you turn down the variance to protect any daughter thank you for your time. Thank you any other Public Comment . My name is james the homeowner on 2555 chestnut and been there since 2001 i want to emphasize whatever the determination he am hopeful we can get along ultimately and i do want to emphasize im fair late in the process on this hearing about it in the last month and during that time im concerned of the impact of this project on my backyard one of the aspects of with my wife in 2001 we had a nice backyard a small amount of sunlight providing a nice environment that is the enjoyment of the property i am concerned about the additional story as well as the roof deck on the light in my backyard and determined through a shadow studies that was provided by the architect it impacts significantly the light in the backyard in the morning and potentially impacts the windows in my house those are the concerns besides there is concerns about loss of privacy as well so im concerned about impact on quality of life and the Property Value of my own property on 2555 Chestnut Street thank you. Thank you. Any other Public Comment. Hi i live on chestnut and richard son is friendly and neighboring i think that since this happened the things have changed and very concerned about again, the things that my husband brought up about privacy and noise it is simple a noisy street were obviously on route to the Golden Gate Bridge and even with the earplugs our daughter is woke even up i 3wu78gd into the street i had friendly relationships with the owners and you know said hey wanted to let you know those are our concerns and not received well, i understand that everybody is upset effecting all of us but were all trying to protect your best interests and given the comment that basically well get steam rolled over and last week to think we can all be heard and both sides as commissioner swig mentioned impacts yeah take into consideration there were other words said i wouldnt want to say i hope we as a neighborhood can get along after this as well. Would you would you care to state your name. Thank you. Any other Public Comment . Seeing no other Public Comment rebuttal starting with the appellant thank you, commissioners Ryan Patterson for the appellant very quickly and then im going to turn it over to to the architect to speak to the technical impacts first there was a quotation from the planning code about hardship created by the owner that was a personal quotation the full quotation correlate hardship not created or attributable to the owners property unquote that is a lot broader and speaks to basic tenants of the zoning law for the previous owners the property the hardship is passed from owner to owner with the understanding that the hardship is either a future of the land and if it is selfimposed it is knocked down second there is an exception and reliance by the buyers of this property and the properties that the built in Safety Measures and setback will be preserved this is a lot line window if theyre built up in 3 feet the planning code requires the best Case Scenario put in very expensive 50,000 sprinkle system a major impact on this property and lastly there is an mention were removing the stairs so alleviate the impacts the Zoning Administrator letter reduces the impact but not limits is this impact is still there good evening mike of architecture can i have the overhead . Please. We do know, of course, a reduction in sunlight and ambiance try to deal with that so we did a sunshine study and found a reduction in the south facing bedrooms in both of the buildings going to be over 1 3rd increase in the mass creating a boxed in feeling for the tight constraints that exist that think that is important to think about the 1940 Building Permit allowed there in a stand point there is a difference situation and San Francisco Building Code number 9 talks about the Property Line windows 6 feet is the number that comes up in the Building Code and there are issues of get rid of the Building Code when the configuration change these are natural air with the market go ahead and finish that thought your time is up. To potentially cut the windows off and make a Significant Impact on the just a minute properties thus, this question about the 1940s Building Code and that coexistence a peaceful albeit it an older creation but today a new code that could trigger eliminating these windows the Building Department will have to define that is it is too calculated under the circumstances. I have a question for mr. Patterson. Yes, sir. You made the statement it something modesty trigger the installation of a 50,000 sprinkle youre talking about the clients property. It is a mandatory bedroom Property Line window if it had to be sealed up well preserve that bedroom requires youre familiar with the requirements the only potential option we see perhaps can be poling to very expensive Sprinkler System talking about a lot of money if it is even an option may not be and but it was barred so not is an egress window. Egress is not the only requirement. Of course. Of course. And ms. Zeller removed those bars not a safe condition didnt mean the window is legally extinguished in any way. Okay. Id like to ask the timing of the removal of bars over the last two days and what promoted that. That was last week and as we are knowledgeable about those things looked at the conditions and we felt not a safety sleeping in that room. How long where those bars on the window. Probably 20 years. Thank you. Those bars are changed. Mr. Patterson thank you. Thank you. Mr. Silverman rebuttal time. Thank you, commissioners can i have the overhead . Again. Very quickly i wanted to respond just to the new points that were raised im not going to go over the things that were discussed mr. Wade lives on the corner the equivalent of 5 or 6 house separation between the carters house and here i didnt find the comments about the hot tub per successful you as you can see the tree is obtain secured a big tree in the backyard no additional shading there i didnt find that persuasive finally on the owner of the window again, this is the window in question where the man is trying to you remove the bars it is i understand this is approximately the lot line it is barred constantly shaded and not operable this is approximately here off the screen where the bars remain they only took the bars off this one i find that curious and also, this is the walls of the caterer house and the notch that was referred to say further up here up the page so, so not going to be my building closure to the window this is above that mans head thank you. I got a question for you counselor. Yes. How long have your clients been at the property. inaudible . Okay. Thank you thank you. This is a technical question. Sort of like a ships ladder up to the roof but how do you assess the roof. How do the access the roof now. No, no based on. Under the new plan. Yeah. Ill ask 9 architect to answer. Good afternoon ladies and gentlemen, im michael a designer other 6 architecture were the firm that took over the project after the variance hearing a question how to access the roof it does have a ships ladder that will have sliding basically like a sliding glass door that is flat it slides over. The drawing shows looks like a rail along there. There is a parapet that will come up. There is built in seeking yes. Okay. I have a couple of notes about the shading. No, no my question was answered thank you. Okay. Rebuttal from mr. Sanchez. Thank you Scott Sanchez Planning Department. A couple of points in regards to the privacy that were related there are minimum windows on the proposed addition actually on the proposed level there are no windows that face north of the properties the windows on the lower level from closest so the bathrooms on the north wall so privacy issue from the constructionists the roof deck roof deck could be constructed on top of the building today without need for a variance not considered a significant expansion that will trigger a variance the means of access triggers a permit but they can be added to the code and the amenities a fire put a gas fire pit not a smoke issue with a gas fire pit they show a hot tub area and then in regards to the required variance finding yes. The appellant has correctly restated in the planning code section 305 that it does look to the whether or not the hardship was contributed to the applicant or the owner of property it was not created or attributable to the building constructed well been before the Property Owner bought the property in 2012, the situation was a created lawfully at the planning code has changed over the years the buildings are now noncomplying and in terms of of the impacts on the neighbors i stated i had concerns with the project as it was previously proposed and building that has a negative impact that was significant on the neighbors the code dpa call for a variance to mitigate all the impacts from development but whether or not a detrimental impact and given how theyve provided the project my understanding it is 3 feet away from the Property Line not the triggering the closing of the Property Line window nonconforming and on the appellants property that is my understanding and perhaps joe duffy dbi can add further information to that im available to answer any questions. Id like to carry one of our thoughts through that if those hardships sort of westbound pass on or hereditary and you never make in any changes and what was the point of variance hearing. Good question thats why i have trouble with the logic by the appellant theyre not attributable to the owner of the property because the language has attributable that somehow. You choose to buy. They choose to buy it not creating the hardship the hrpts existed when they bought the knowledge but ii dont know how one will find that hardship if that was the case were looking back to as theyre creating a path and lawfully as we can tell. Thank you. Mr. Sanchez are all the blocks in the arena nonconforming like this one. No, its more. No building conforms to current the entire block. It is difficult and more challenging on this block because of the angle of richard so that yeah. A fair number of noncompliant buildings along richardson. Because of angle. Yeah. And post some building were moved as part of the widening of lombard and the cut over of richardson to access the bridge the buildings were moved but not nonconforming not because of Building Code. Are you done. You look at the beginning of lombard it supermarkets r interseconds lombard they were planning on going down the blafld with the understanding a legal nonconforming structure your according to a planning code claiming it is not a hardship of the prophet or the Property Owner but given the build and the angle of the street and its close prompt i didnt to four or five neighbors you dont consider that a hardship on the other neighbors. Thats how to make the changes that reduces the impacts i mean certainly those buildings are they stepped to theyre building walls and tried to address that and reduce the impacts by having them segment within the 15 footprint. I mean, i understand the other buildings are nonconforming theyre not trying to add stories. Not adding two stories one and a roof deck. Only two stories. Okay. And then i was under the understanding the Property Line was 4 feet and combrours were required. My understanding that maybe ill let the inspector joe duffy answer that. Commissioners would you like inspector duffy to come up. We want to make that worth his while were paying that department. Good evening, commissioners joe duffy i was on my way home. laughter . So thats the question you know considering that a lot of properties in San Francisco what we call attached and have properties unattached but when you put lot line windows the planning codes says within 3 feet you dont have to have them like fire protected and their expensive; is that correct. For that occupancy it will be 3 feet for the singlefamily dwellings so the property via the property is singlefamily dwelling so it is two units 3 feet you can have to do with 3 feet 3 foot 3 to the Property Line and because when the window is existing in the 1940s i dont think well tell them. Are tree grandfathered in. Pretty much normally what happens if their are windows closer sometimes the planning code will make them notch to protect the light and the reminded for that but i cant see any fire rating if it is 10 feet 3 away not an issue the ab 9. It is on the Property Line. Im looking at 8 to one from the Property Line. Wall. So the new construction is 3 foot 3 the appellants property near the Property Line and thats what i said and on a that one is grandfathered in. Those people suddenly come out and make a complaint there is a windows on the Property Line well not go back there it was there in the 1940s what theyre talking about an administrative Building Code in the 1940s if you want to put if Property Line windows on the Property Line you can do that they have to be 4 windows with the surprisingly head youre giving up the right to the building and a document it is notarized and cant suddenly say the windows are there. Thats like in the code now but it wouldnt have been there in the 1940s i cant Say Something it was a variance case i didnt research as much if i do there is a Building Code and maybe that probable well be dealing with that then and the project has not been approved by the dbi and hadnt reached us yet so okay. Thank you for explaining that inspector. And you might be in agreement whatever happened whether with that project under construction theyll never interfere with the windows or file a window on the windows on the neighbors Property Line and your saying not grandfathered in. So does that mean you said theyll not complain why what we complain. They could complain anyway. You said it window was grandfathered in so why will they complain. It was part of the original construction we uniform usually dont go there. Thank you. Your presence are requested. The other point that we have to be concerned is changing the character of the neighborhood and also goes into hardship again, i know the neighborhood really well, because i lived there for now 20 years and the, of a roof deck and on the roof deck building of a fire pit and on the building of a hot tub i dont know i dont know of house in the marina residence that has that condition i mean in my own house i have a deck that extends off a second floor over any living room the house was built in 1926 but i dont know of this would be consistent with the concern of changes with the character the neighborhood i dont know of a house in the marina with that type of condition whether a roof deck hot tub and fire pit and all that stuff and that also goes to hardship the neighbors because do you have a question. What about that. I think that is a good point. One we hear at that board and often in particular in this district about people having a lot of roof deck weve seen a lot of them on the south side of cal hallow and lombard and gotten to the point the District Supervisor asked about Development Guidelines for a roof deck and questions about notification for roof decks, etc. I understand that point and the permit holder attorney passed me a photo of with an the adjoining building has a hot tub not a full floor roof deck like this would be it is more but there is habitual area and hot tibia deck off of that area i think that is at some point i mean whether you you know the board feels that is there are issues with the character of the deck that should be reduced in terms of the occupancy or capacity ill understand that in terms of neighborhood character in the size of the building the adjacent property is on 3 stories the overall height is less but a 3 Story Building. Dont worry about the height swuchs as the intrusion. This is before the board i mean, youre hearing 24 the variance decision and be able to justify that but i understand there are a lot shown on the roof deck just honestly weve seen people to add those features you dont need the permit maybe no notification so we are asking people that put minimum things open their roof deck and add more features after they go through notification but no trigger of a notice in this case they were very open been the amenities they wanted and mrirld for that what theyre seeking and the matter is totally before the board. The roof deck is intended to be open space otherwise not on the property. Otherwise the nullification on the property is the 3 feet passageway and this would be actually usable open space for the residents you know at the hearing that was compelling argument about the desire to have something that is more usable for a family and something they can grow into and certainly found those arguments compelling in meeting other properties in similar sdriblgs that are able to have. For which not other options on that property; right . Last question mr. Sanchez and so theres a rear yard variance and nothing required for a front yard setback. No, no requirements in this case. Thank you thank you. Commissioners, the matter is submitted. Now the i think mr. Sanchez was referring to me when he was referring to discussions on residential design. Everyone was referring to you when discussions on roof decks commissioner. No, i think ill refer to bring up a couple of things because i dont consider them as important as the issue of hardship as an example you know the shadow studies done but the appellant yes probably correct theyre in the summertime i doubt there is much different impacts the rest of the year your question here is have they demonstrated hardship. It is clear that the it is a property right enjoyed by other people around the area i mean every building there is nonconforming so i dont want to get into a question of whether one persons hardship is different than another persons hardship because we are looking at this whether that has criteria of the finding were satisfied when i first look at it was some double park in my mind that all 5 were satisfied especially where they filled in the notch i supported i think the idea that the Zoning Administrator brought forth that anything they do to the property will require a variance because theres no doubt about that ill support the fact they maybe needing more space contextually the 3 stories are fine i made that agreement why they should have a transparent screening at the roof that perhaps that should be a obtaining absurd. Im trying to come to a decision a variance that allowed them to make the notch was totally justified. Can you explain that. I believe the variance in general in terms of allowing them to build to a certain extent was justified. Normally i would have said when we deal with other areas in the area nonconforming structures like Telegraph Hill you know ive been against some of these variances which allow an expansion beyond existing envelope and in this case im probably leon towards. With restrictions or allowing it . Allowing it i think i will ask that the. Obscure glossary ill support that. Im not 100 percent convinced the feelings were meat a convincing stance from the department and the hardship of the property is the hardship of the property at the same time, we dont want people fleeing from San Francisco and 6 hundred and 18 i believe square feet is really not much you can do to the property equip go up and take out that notch you dont get much and since this is probably not the last time well hear this case ill be willing to join my two fellow commissioners. Batter up. I consider the hardship continued no hardship to you know the i believe that the project sponsor bought the house should have recognized that there was this condition. Yep. And therefore suffers no hardship therefore your 5 fksdz are not met so i think the hardship is to the other neighbors so id like have to be convinced more. Make a motion with a condition that requires 4 votes. I wanted to ask a question about the condition youre considering which is to place a certain type of glass in the railing for the roof deck; is that right. Make the parapet. Parapet. Didnt have to be obtain im not sure. Sorry to interrupt if they dont put it in there. Yeah. Then, yes. At this time are you saying basically materials are not under the purview of the variance. No, i guess im curious if this element of the design is within the context of this variance. I think that expands into. What if it requires 4 votes. Let me finish it expands into areas that are beneficial of the variance. Excuse me benefits of the variance. I think that is equally part of it. I agree portions of railing are within the rear yard as well as the fact that in order to get access to the roof deck you need to encroach into the rear yard ill consider that is as acceptable condition as part of surveillance letter. Thank you. Ill make a motion ill move to grant the appeal and condition the variance on changing the glass rail around those roofs to an opaque parapet and that i find with that then the 5 findings of a variance met. Let me clarify seeking a solid parapet or some 0 page thing that provides privacy. It is their choose. Okay. Sorry of the same height as currently proposed. Yes. Okay. So the motion from the vptsdz is to grant the appeal with condition the variance think changing the glass rail around the roof to an obtain page parapet and by making that motion youll find the 5 fltsdz has been met. Correct. Okay. On that motion commissioner lazarus commissioner president honda commissioner swig. Okay. That that motion carries with a vote of 4 to zero and commissioner president honda. Theres no further business. Tonight good afternoon, everyone and welcome to the board of supervisors of monday, november 1, 2016, madam clerk call the roll. Supervisor avalos supervisor president london breed supervisor campos superv