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working with local businesses. i have been a resident of san francisco for 35 years. i'm a micro business, a design firm. brown and caldwell has mentored us to get our lbe certification when we did the waste water master plan. i want to thank you for considering this contract and passing it quickly. >> thank you, next speaker, if there is any other members that wish to speak, please come up. >> my name is tim anderson. i'm a resident of bay view. i also work right by evans and 3rd. it does have a smell. it is also one that i didn't really realize i was getting used to. i mean, it's pretty disturbing to realize that all of our kids and family have to eat and sleep with that smell. but i think that there is something that definitely can be done and i would love to see that smell disappear. that would be great. >> thank you. would anybody else like to speak? >> all right anybody else on the public wish to comment on item no. 2, please step forward. okay. seeing none, public comment is closed. >> colleagues cohen had to leave. i want to congratulate this community on moving this forward. do we have any other questions or comments from colleagues, budget analyst or staff? okay. could i have this motion moved to the board without opposition? so moved. >> okay. mr. clerk, please at all -- call item no. 3: emergency contract declaration of emergency north shor fore main not to exceed $7 million. >> mr. cruz, you are back again. >> manager of the puc, it handles 20 percent of the solid capacity from the east part of the city down to the southeast plant. the facility is underground to the seawall line. the seawall itself is not water proof. the salt water hits our pipes and we have had an emergency there. we brought in a contractor to fix the initial emergency which was $565,000 worth of work. and found other work necessary to be repaired. as an aside, in addition to that recognizing now that this is a third failure of that system, the puc has embarked on a capital program so in the future if we have a problem we can divert the sewage flow and work in a non-emergency capacity in order to repair the old system. the item before you today as amended has the total value of $7 million to cover the first emergency declaration for the immediate repairs which caused the overflow on embarcadero and to repair the system. >> okay. thank you very much. >> mr. clerk, can you call the items 4 and 5. >> the clerk: item no. 4. emergency contract h hp hoem powerhouse unit 1 not to exceed 521, 465. item no. 5. lease oliver desilva sun o'le valley quarry lease. >> the item before you is to approve an emergency contract for the h hp home power unit one. the repairs were needed because of the deceit -- deterioration. work was completed in february 12, 2013. do you have any questions? >> colleagues, any questions? okay. thank you very much. item no. 5? >> sorry. thank you. >> thanks for being with us. >> thank you. good morning, john, director of real estate. so legislation on this item would authorize an amendment to an existing quarry lease. it would add 58 acres. it would extend the term of the lease to an option available to both parties. quarry operations have been going on this location from the 1960s. they approved this lease -- on november 4, 2009. that shows the general location. somewhere in the bay area. yeah. more importantly, i want to focus on the details of the site. we can increase that coverage. the dark black hashed area shows the existing site. the colored areas along the side here in the three phases show the expansion of premises area. runs along the roadway adjoining the existing quarry site. so the amendment will allow for increased depth of excavation from a range to 25 to 400 feet below ground. it will extend the term to june 2021, to july 2022. it is second to the lease detailed taking this to 2024. it remains to subject permitting and future puc commission and board of supervisors approval. as the detail, it would also secure an additional $6.3 million from environmental mitigation measures. this amendment facilitates a coordinated regional operation that will have a conservation agreement nearing the impacts of the quarry delaying the impacts to the creek and the habitat of the surrounding areas. it secures environmental mitigation from the tenant and importantly allow to deflex the expense from the tenant. upon the termination of quarry operations. the project has a certified final eir for the revised surface mining. and the monitoring program and the minor reclamation plan. and former adopted ceqa findings for the board adoption as well. i would like to bring up to the podium now jim summers to give you some details about their coordination with the regional partners on this project. jim? >> thank you, members of the committee, my name is jim summers, vice-president. in 2006 we responded to a proposal to expand this operation to provide more water storage for the sf puc. throughout process of three 3 years we have been selected as the preferred tenant and for the last 5 years we've been working diligently with the local environmental community as well as the local community to address any concerns they may have. i'm very happy and pleased to be here today to say that we have entered into agreements to not only save our groups, but as well as the alameda line and approve this project and we have received the approval from the sf puc and i'm pleased to have this moved forward to move the benefits that we agreed to the local community and environmental community. a speaker card was called for item 2, but it was item 5. i have someone here that would like to speak on behalf of the project too. thank you. >> i do not have anything further on this item. i'm joined by colleagues of the sf puc if you have any questions. >> thank you. any questions? >> okay. we have a budget report for all three items before us. why don't we go one by one. >> mr. chairman, members of the committee regarding item 3 on page 17 of our report, the total estimated project cost of not to exceed $7 million, 67 percent more than to not to exceed from the construction company. however puc explains tht justified because they encountered additional cost in unanticipated site conditions. on page 18 we report the resolution does not include removal of the repairs at a cost of 575, 529. amend the line 9, to reflect that. there is a reference to that of $600,000. it should be 5$559. >> another increase. from $7 million to 7.755. for work that has already been completed. shall i go to the next two items? >> yes. >> regarding item 4, on page 22 of our report, we report that it's shown in table on page 22, the contractor delta star has submitted invoices and all of the repairs were complete on february 12, 2013. such that no expenditures will be incurred. our recommendation on the bottom of page 22, that you recommend the proposed resolution on february 12, 2013, instead of january 2013. the work includes all three phases and that you approve the proposed resolution as amended. regarding item 5, on page 29 of our report, we state that under the proposed lease amendment, the estimated royalty revenues to be paid by silva to sf puc from december 2010, through june 2032. that is estimated to total $153 million. on page 31 of our report, and again mr. up dike stated that this last extension is not before you, but we point out if that is an approved, the additional extension then as shown in attachment 2 on page 34 of our report, the revenues from the puc from 2010, to december 31, 2064. an average cost of $340 million and that includes the base rent payment of $500,000. we recommend that you do approve this resolution. >> thank you very much, mr. rhodes. any questions on this? >> thank you. anyone from the public wish to comment on this item, please come forward. >> thank you, members of the board. my name is adam keats. i'm a resident. i'm here in my capacity an is the director of biological diversity. it's unusual for us to be speaking here on behalf of a gravel mining project. it's is not something that we are used to doing. when we were first approached by this company by oliver desilva, we were prepared to fight this project and we were prepared with our allies to the sun ol community to fight this project. oliver silva came to us and said what would it take for to you support this project and we laughed and we gave a dream list to have this happen to benefit the environment and they said yes to everything. it took a year to get to this but it's been incredible. we think it's a great thing for the species out there and for the people of the sun ol community and good for the community of san francisco in terms of the revenue as well. this is the way gravel mining should happen. it's a necessary evil and i think that this type of project, the way it's been done with this company is the way it should be happening and i'm proud to support it and proud to be here with that message. >> great. thank you very much. >> quick question. it's unusual for an organization such as yours to support a project like this and necessary evils as you call it as mining. understanding that it's one of the environmental impacts that it's going dig the quarry almost two 1/2 times deeper. i'm just wondering, i know you are concerned about wild life and endangered species, but from the environmental impact reports, doesid you see if it's going to have an additional environmental impact. >> we looked at this primarily from an air quality and from a species perspective. we were looking for red flags and with that within the relevance produced, we did not believe it raised any red flags on our end. >> it's impact, let me see some of the mitigation that we are restoring had trout in alameda creek. in many ways they are separate from the quarry but additional work that the company will do to mitigate the impacts? >> correct. it opens up a blockage for a lot of steel head trout. the potential for that to be a really fully functioning ecosystem is there. it's over $3 million for this project that would go to that work. removing barriers mainly bart barriers. the environmental component is the ridge line and the environment that's above and higher elevation to this project. we looked at those as a coordinated effort and in an allowing this impact in this area took away a lot of impact that was already an approved on the ridge line above and that allowed it above to be mitigated as well. >> thank you very much. any other members who wish to comment on items 3, 4 and 5. public comment is closed. >> we have a number of amendments for item no. 3 first that our budget analyst weighed out. it will have to sit for another week. can i have a motion to accept those amendments? can we do those without opposition. on item no. 4, we also have a number of amendments a little bit more technical in nature that would not have to sit. can i take a motion to amend item no. 4. we can do so without opposition. item 5, had no recommendation. mr. avalos. >> thank you, when does the new amendment initiate? >> mr. up tooik and somebody from the puc. >> it's after the approval by the board of supervisors and approval by the mayor and the effective date is 30 days thereafter. >> okay, we have items 3, 4 and 5. >> i'm not quite prepared to support these items. item 3 will be seen next week. item 4 and 5, i would like to continue to july 24th. that will give the committee time to pass out before july 24th. i will have more information to discuss it at that time. the motion to continue to july 24th. >> if we have these items continued to 24th. they only need one reading of the full board, correct? >> that's correct. >> supervisor avalos, i appreciate your comments. i have been speaking with the puc and i'm ready to support these items. i thank you for taking the time to do so. we can have a roll call on your motion. >> on motion to continue item 3, 4 and 5 -- >> it's actually 4 and 5 because item 3 will be heard next week. >> on the motion of 4 and 5, avalos, farrell, no. the motion passes. >> we can continue that item until next week, next wednesday, can we do so without opposition? >> mr. clerk, please call item 6 and 7 together. >> the clerk: item 6. administrative code health service system plans and contradiction rates calendar year 2014. >> item 27. establishing monthly contradiction contribution amount health service trust fund. >> these are the approval of the health systems 2014, health and dental plans. we have a number of speakers here, acting director of the health service system and greg who is out of retirement or still in retirement, but with this thank goodness with the city and also specifically want to thank kathleen for putting this together. with that i'm sure there will be good discussion. why don't you start off with your presentation and we can take it from there. >> good afternoon, supervise, lisa, acting director, i'm joined by our cfo and joined by the vice-president for actuarial services for an hoout. we have asked jerry rap port to speak on this so he will follow my presentation. i would like to start first with what we believe is the most important story of 2014 raise some benefits process and that's precedent 4th year. this has never happened. it's unprecedented for the city of san francisco and something we should be proud of. first reminder that the health services system trust is a trust that provides health benefits for employers and the city and county of san francisco, the school district and community college district. the package represents the employee and retiree benefits for all four participating employers. my presentation today is going to review the aggregate premium increases and there is a peak into san francisco city of san francisco premium rate increases and the federal health care reform act and the impact on our rates we'll be looking specifically at some of the medical plans, blue shield and kaiser and what drove the increase in their rates this year. kaiser was going to be an area of concern we had with kaiser and we are those concerns that we would like to share with you. we also heard from the city union to not approve the rate of the package and want to address the implications for not approval for you along with the suggested action plan. turning to page 4, the aggregate premium for all employers is a 2.43 percent increase. this is remarkable and is made up of all of our health plans, our dental plans and our long-term disability and life. so if we look at those we have a 5.22 increase in our kaiser rate, increase in blue shield rate, our dental plans are running at 2.48. we believe it's due to more increase. we think it's going to moderate in 2014. our lifetime disabilities in 2014. our pay rate is $659 million. the members cost on this is $84 million. that is an 11.3 percent of the premiums. on the next page is the summary of the impacts. >> can i ask a question. from previous documents that i thought it showed that the blue shield premium decreased in previous documents along with the city plan as well, but the aggregate premium increase shows that blue shield went up. can you explain that discrepancy. i can't remember where that was where the document that i was reviewing. my understanding that the city's plan and blue shield was going down and kaiser was going up by 5 percent. >> this is an aggregate of the active and early retiree rate. this aggregate view is a combination of all plans we have under a health plan and that's true for both kaiser and blue shield. the blue shield medicare increase was 5.9 percent emerged with the active and early retiree rate which was zero, i believe. and so for an over all, a point 55. >> supervisor mar, i believe you were referring total
Bay-viewCaliforniaUnited-statesEmbarcaderoSan-franciscoAlameda-creekOliver-silvaAdam-keatsOliver-desilvaOliver-desilva-sunTim-anderson once met -- alex pitcher, one of the persons who were responsible for correcting the original problems we had with waste water today. alex pitcher will turnover in his grave with a sigh of glee. he will remember this day because this is the day he looked forward to his whole life. you all have to ensure that this project is managed correctly and with the puc's leadership, i know that they will work with you and i know the job will be done correctly. i say to you today, finish the job, make the move, go forward with the plan and of all things, respect this community. we want to have the rights to have a world class community, a world class waste water system and we want to have the right to have you all support that. i want to thank you all very much and i look forward to your support. >> thank you, next speaker, please. >> good morning. my name is randy. with graphics. i want to speak to the real commitment of working with local businesses. i have been a resident of san francisco for 35 years. i'm a micro business, a design firm. brown and caldwell has mentored us to get our lbe certification when we did the waste water master plan. i want to thank you for considering this contract and passing it quickly. >> thank you, next speaker, if there is any other members that wish to speak, please come up. >> my name is tim anderson. i'm a resident of bay view. i also work right by evans and 3rd. it does have a smell. it is also one that i didn't really realize i was getting used to. i mean, it's pretty disturbing to realize that all of our kids and family have to eat and sleep with that smell. but i think that there is something that definitely can be done and i would love to see that smell disappear. that would be great. >> thank you. would anybody else like to speak? >> all right anybody else on the public wish to comment on item no. 2, please step forward. okay. seeing none, public comment is closed. >> colleagues cohen had to leave. i want to congratulate this community on moving this forward. do we have any other questions or comments from colleagues, budget analyst or staff? okay. could i have this motion moved to the board without opposition? so moved. >> okay. mr. clerk, please at all -- call item no. 3: emergency contract declaration of emergency north shor fore main not to exceed $7 million. >> mr. cruz, you are back again. >> manager of the puc, it handles 20 percent of the solid capacity from the east part of the city down to the southeast plant. the facility is underground to the seawall line. the seawall itself is not water proof. the salt water hits our pipes and we have had an emergency there. we brought in a contractor to fix the initial emergency which was $565,000 worth of work. and found other work necessary to be repaired. as an aside, in addition to that recognizing now that this is a third failure of that system, the puc has embarked on a capital program so in the future if we have a problem we can divert the sewage flow and work in a non-emergency capacity in order to repair the old system. the item before you today as amended has the total value of $7 million to cover the first emergency declaration for the immediate repairs which caused the overflow on embarcadero and to repair the system. >> okay. thank you very much. >> mr. clerk, can you call the items 4 and 5. >> the clerk: item no. 4. emergency contract h hp hoem powerhouse unit 1 not to exceed 521, 465. item no. 5. lease oliver desilva sun o'le valley quarry lease. >> the item before you is to approve an emergency contract for the h hp home power unit one. the repairs were needed because of the deceit -- deterioration. work was completed in february 12, 2013. do you have any questions? >> colleagues, any questions? okay. thank you very much. item no. 5? >> sorry. thank you. >> thanks for being with us. >> thank you. good morning, john, director of real estate. so legislation on this item would authorize an amendment to an existing quarry lease. it would add 58 acres. it would extend the term of the lease to an option available to both parties. quarry operations have been going on this location from the 1960s. they approved this lease -- on november 4, 2009. that shows the general location. somewhere in the bay area. yeah. more importantly, i want to focus on the details of the site. we can increase that coverage. the dark black hashed area shows the existing site. the colored areas along the side here in the three phases show the expansion of premises area. runs along the roadway adjoining the existing quarry site. so the amendment will allow for increased depth of excavation from a range to 25 to 400 feet below ground. it will extend the term to june 2021, to july 2022. it is second to the lease detailed taking this to 2024. it remains to subject permitting and future puc commission and board of supervisors approval. as the detail, it would also secure an additional $6.3 million from environmental mitigation measures. this amendment facilitates a coordinated regional operation that will have a conservation agreement nearing the impacts of the quarry delaying the impacts to the creek and the habitat of the surrounding areas. it secures environmental mitigation from the tenant and importantly allow to deflex the expense from the tenant. upon the termination of quarry operations. the project has a certified final eir for the revised surface mining. and the monitoring program and the minor reclamation plan. and former adopted ceqa findings for the board adoption as well. i would like to bring up to the podium now jim summers to give you some details about their coordination with the regional partners on this project. jim? >> thank you, members of the committee, my name is jim summers, vice-president. in 2006 we responded to a proposal to expand this operation to provide more water storage for the sf puc. throughout process of three 3 years we have been selected as the preferred tenant and for the last 5 years we've been working diligently with the local environmental community as well as the local community to address any concerns they may have. i'm very happy and pleased to be here today to say that we have entered into agreements to not only save our groups, but as well as the alameda line and approve this project and we have received the approval from the sf puc and i'm pleased to have this moved forward to move the benefits that we agreed to the local community and environmental community. a speaker card was called for item 2, but it was item 5. i have someone here that would like to speak on behalf of the project too. thank you. >> i do not have anything further on this item. i'm joined by colleagues of the sf puc if you have any questions. >> thank you. any questions? >> okay. we have a budget report for all three items before us. why don't we go one by one. >> mr. chairman, members of the committee regarding item 3 on page 17 of our report, the total estimated project cost of not to exceed $7 million, 67 percent more than to not to exceed from the construction company. however puc explains tht justified because they encountered additional cost in unanticipated site conditions. on page 18 we report the resolution does not include removal of the repairs at a cost of 575, 529. amend the line 9, to reflect that. there is a reference to that of $600,000. it should be 5$559. >> another increase. from $7 million to 7.755. for work that has already been completed. shall i go to the next two items? >> yes. >> regarding item 22 of our report, we report that it's shown in table on page 22, the contractor delta star has submitted invoices and all of the repairs were complete on february 12, 2013. such that no expenditures will be incurred. our recommendation on the bottom of page 22, that you recommend the proposed resolution on february 12, 2013, instead of january 2013. the work includes all three phases and that you approve the proposed resolution as amended. regarding item 5, on page 29 of our report, we state that under the proposed lease amendment, the estimated royalty revenues to be paid by silva to sf puc from december 2010, through june 2032. that is estimated to total $153 million. on page 31 of our report, and again mr. up dike stated that this last extension is not before you, but we point out if that is an approved, the additional extension then as shown in attachment 2 on page 34 of our report, the revenues from the puc from 2010, to december 31, 2064. an average cost of $340 million and that includes the base rent payment of $500,000. we recommend that you do approve this resolution. >> thank you very much, mr. rhodes. any questions on this? >> thank you. anyone from the public wish to comment on this item, please come forward. >> thank you, members of the board. my name is adam keats. i'm a resident. i'm here in my capacity an is the director of biological diversity. it's unusual for us to be speaking here on behalf of a gravel mining project. it's is not something that we are used to doing. when we were first approached by this company by oliver desilva, we were prepared to fight this project and we were prepared with our allies to the sun ol community to fight this project. oliver silva came to us and said what would it take for to you support this project and we laughed and we gave a dream list to have this happen to benefit the environment and they said yes to everything. it took a year to get to this but it's been incredible. we think it's a great thing for the species out there and for the people of the sun ol community and good for the community of san francisco in terms of the revenue as well. this is the way gravel mining should happen. it's a necessary evil and i think that this type of project, the way it's been done with this company is the way it should be happening and i'm proud to support it and proud to be here with that message. >> great. thank you very much. >> quick question. it's unusual for an organization such as yours to support a project like this and necessary evils as you call it as mining. understanding that it's one of the environmental impacts that it's going dig the quarry almost two 1/2 times deeper. i'm just wondering, i know you are concerned about wild life and endangered species, but from the environmental impact reports, doesid you see if it's going to have an additional environmental impact. >> we looked at this primarily from an air quality and from a species perspective. we were looking for red flags and with that within the relevance produced, we did not believe it raised any red flags on our end. >> it's impact, let me see some of the mitigation that we are restoring had trout in alameda creek. in many ways they are separate from the quarry but additional work that the company will do to mitigate the impacts? >> correct. it opens up a blockage for a lot of steel head trout. the potential for that to be a really fully functioning ecosystem is there. it's over $3 million for this project that would go to that work. removing barriers mainly bart barriers. the environmental component is the ridge line and the environment that's above and higher elevation to this project. we looked at those as a coordinated effort and in an allowing this impact in this area took away a lot of impact that was already an approved on the ridge line above and that allowed it above to be mitigated as well. >> thank you very much. any other members who wish to comment on items 3, 4 and 5. public comment is closed. >> we have a number of amendments for item no. 3 first that our budget analyst weighed out. it will have to sit for another week. can i have a motion to accept those amendments? can we do those without opposition. on item no. 4, we also have a number of amendments a little bit more technical in nature that would not have to sit. can i take a motion to amend item no. 4. we can do so without opposition. item 5, had no recommendation. mr. avalos. >> thank you, when does the new amendment initiate? >> mr. up tooik and somebody from the puc. >> it's after the approval by the board of supervisors and approval by the mayor and the effective date is 30 days thereafter. >> okay, we have items 3, 4 and 5. >> i'm not quite prepared to support these items. item 3 will be seen next week. item 4 and 5, i would like to continue to july 24th. that will give the committee time to pass out before july 24th. i will have more information to discuss it at that time. the motion to continue to july 24th. >> if we have these items continued to 24th. they only need one reading of the full board, correct? >> that's correct. >> supervisor avalos, i appreciate your comments. i have been speaking with the puc and i'm ready to support these items. i thank you for taking the time to do so. we can have a roll call on your motion. >> on motion to continue item 3, 4 and 5 -- >> it's actually 4 and 5 because item 3 will be heard next week. >> on the motion of 4 and 5, avalos, farrell, no. the motion passes. >> we can continue that item until next week, next wednesday, can we do so without opposition? >> mr. clerk, please call item 6 and 7 together. >> the clerk: item 6. administrative code health service system plans and contradiction rates calendar year 2014. >> item 27. establishing monthly contradiction contribution amount health service trust fund. >> these are the approval of the health systems 2014, health and dental plans. we have a number of speakers here, acting director of the health service system and greg who is out of retirement or still in retirement, but with this thank goodness with the city and also specifically want to thank kathleen for putting this together. with that i'm sure there will be good discussion. why don't you start off with your presentation and we can take it from there. >> good afternoon, supervise, lisa, acting director, i'm joined by our cfo and joined by the vice-president for actuarial services for an hoout. we have asked jerry rap port to speak on this so he will follow my presentation. i would like to start first with what we believe is the most important story of 2014 raise some benefits process and that's precedent 4th year. this has never happened. it's unprecedented for the city of san francisco and something we should be proud of. first reminder that the health services system trust is a trust that provides health benefits for employers and the city and county of san francisco, the school district and community college district. the package represents the employee and retiree benefits for all four participating employers. my presentation today is going to review the aggregate premium increases and there is a peak into san francisco city of san francisco premium rate increases and the federal health care reform act and the impact on our rates we'll be looking specifically at some of the medical plans, blue shield and kaiser and what drove the increase in their rates this year. kaiser was going to be an area of concern we had with kaiser and we are those concerns that we would like to share with you. we also heard from the city union to not approve the rate of the package and want to address the implications for not approval for you along with the suggested action plan. turning to page 4, the aggregate premium for all employers is a 2.43 percent increase. this is remarkable and is made up of all of our health plans, our dental plans and our long-term disability and life. so if we look at those we have a 5.22 increase in our kaiser rate, increase in blue shield rate, our dental plans are running at 2.48. we believe it's due to more increase. we think it's going to moderate in 2014. our lifetime disabilities in 2014. our pay rate is $659 million. the members cost on this is $84 million. that is an 11.3 percent of the premiums. on the next page is the suy
Bay-viewCaliforniaUnited-statesEmbarcaderoSan-franciscoAlameda-creekOliver-silvaAdam-keatsOliver-desilvaOliver-desilva-sunTim-anderson