In. The august 21st, 2020 requested budget and Appropriations Committee meeting. Im sandra lee fewer, chair of the committee. I wouli would like to thank sf r broadcasting this meeting. Mr. Clerk, any announcements h. Due to the covid19 health emergency, City Employee and the board of public and the Committee Room are closed. However, members will be participating in the meeting remotely and this precaution is taken pursuant to the local, state and federal order declarations and directives. We will participate in the meeting through video as if present. Public comment will be available on each item on the agenda, both channel 26 and sf tv is streaming the number across the screen and each speaker will be allowed two minutes to speak. Comments or opportunity to speak during Public Comment period are available rhea phone call by alling 415 6550001. The i. D. Is 146 8471266. Ten press pound twice. When connected, youll hear the meeting discussions and muted and in listening mode. When your item comes up, dial star three to be added. Call from a quiet location, speak clearly and slowly and turn down your television or radio. Alternatively, you may submit public email to the budget and Appropriations Committee clerk, linda wong. If you submit Public Comment via email, it will be forwarded to the supervisors. Finally, items acted upon today are expected to appear on the board of supervisors agenda of september 15th unless otherwise stated and that concludes my announcements. Thank you very much. Good morning, everyone, and welcome to the last day of hearings on changes and reductions that the Budget Committee would like to make to the department budgets. We reconvening the budgets and appropriatations meeting from yesterday. A few things to note before we begin. We have trailing legislation and all associated with the puc budget. Just as a reminder to new members of the public, the hearings this week are noticed separately, but this is all one meeting. Well be recessing, not ajourning at the end of everyday and taking backup the following day at 10 00 a. M. Weve had one continual meeting from wednesday, thursday and friday. For that reason, no Public Comment this week on the budget which is items one and two and all Public Comment will be heard on monday, august 24th at 10 00 a. M. No other business on monday, except to hear Public Comment. The budget and Appropriations Committee will recess at 12 120 or 1 00 p. M. For a lunch. Today we will recess at noon. We have five final departments we will finish with before lunch and then well have several departments who will be joining us this afternoon. As much as possible, we will be hearing the departments in the order lists, but i want to recognise that we sometimes need to accommodate scheduling conflicts and call departments out of order. Thanks in all in advance for your flexibility. Well be hearing likely in the following order, public p the pc utilitys commission, Public Health, the port and the airport. And then, i also want to say as i said the last two mornings, the process o of deciding on the budget for the city and county of San Francisco is somewhat adversarial and the mayor gets first bite and then we looks within that budget for efficiencies. When we find inefficiencies with the help of the budget legislative analyst, we then take out those monies and we will reappropriate to the boards issues and the majority going to the vulnerable communities in San Francisco and trying to close the gaps from the mayors budget with that money. But i do want to say, even though we start this, this process is add veer sailor advet to thank the publi employees. Theyre so important to city government. Thank you for your service, especially during covid19, where everyone has pitched in together to protect all of those in San Francisco and Department Heads who you may see us having a back and forth conversation thats heat, thank you for all of your service. I know that you are here fighting for your budgets because you want the resources to serve our public in the best way that you can. And so i want to appreciate them and i want to appreciate all of you, public employees, for all of the work that you do on an everyday basis and we have Great Respect for you and i want to honor all of the th effort ad work you have done. We have been training and legislation today which we will first take care of. And so, mr. Clerk, can you please call items three through nine. I think youre on mute right now. Item number three is an ordinance appropriatating 260. Three millions of hedge revenue and flow carbon trade revenue and power and water Revenue Bonds for the sfpuc Capitol Improvement program for 2020 to 2021 at 94. 3 million and fiscal year 2022 at 165. 9 million and placing 142. 9 millions of the power bond powes subject to the controllers certification of funds availability. Item number four is ordinance appropriating 4. 3 million, clean power sf revenue for the clean power sf Capitol Improvement program for 2020 to 2021 at 1. 8 million and 2021 to 2022 at 2. 4 million. Item number five is an ordinance appropriating approximately 479. 1 millions of proceeds Revenue Bonds, Water Resources control and loan funds or grant funds, waste water revenue and capacity fees for the sfpuc waste Water Enterprises capital Improvement Program for fiscal years 202at 178. 8 million and reappropriating 391. 4 million and placing 349. 9 million in Revenue Bonds or state loan or grant funds by project on controllers reserve subject to the controllers certification of funds availability. Item number significance is an aaroaaron appropriating 344 miln proceeds from Revenue Bonds, state of california, Water Resources, control boards Revolving Loan funds and Water Capacity fees for 2020 to 2021 at 132. 3 million and fiscal years 2021 to 2022 at 212. 7 million and appropriating 3. 5 million water Capital Project funding to waters fund balance in 2020 to 2021 and water capital appropriations in fiscal years 2020 to 2021 and placing 35. 9 million in state grant fund proceeds by project on controllers revenue project to the funds availability. Number seven is authorizing the issuance and sale of power Revenue Bonds and other forms of indebtedness by the puc and an amount not to exceed 142. 9 million to finance the costs of various Capital Projects, benefiting the power enterprise. Item number eight is an ordinance authorizing the issuance and sale of tax exempt or taxable waste water Revenue Bonds and other forms of indebtedness by the sfpuc in an amount not to exceed 34 349. 9 million benefiting the waste water enterprise and item number nine is an ordinance authorizing sale and tax exempt or Revenue Bonds as defined by the sfpuc in a principle amount not to exceed 347. 1 million to finance the cost of various capital water projects benefiting the water enterprise. Members of the public who wish to provide Public Comment should call 415 6550001, meeting i. D. 146 8472266 and then press pound twice. If you have not done so, please dial star three to line up to speak and a system prompt will indicate you have raised your hand approximately indicate until the system indicates you have been unmuted. Chair we have eric sandler from the utilitys commission. The floor is yours. Thank you. Im eric sandler, the cfo of the puc here to present pieces of legislation that are all about implementing our Capital Investment plan programs for the next two years. Next slide. As you heard, there are seven ordinances tied to the implementation of our capital budget. Four are supplemental appropriation ordinances that essentially identify a series of projects that comprise or capital program. Theres one for water enterprise, one for water and power and clean power assess. And then we have three debt authorization ordinances that authorize us to issue Revenue Bonds or other forms of indebtedness to fund all or a portion of the programs and i would just point out that we have a couple of amendments. One to the waste water supplemental appropriation ordinance and then an amendment to all of the debt authorization ordinances and ill point this out as we go along. So the waste water capital supplemental is 579. 2 million over a twoyear period and Improvement Program, renewal and replacement, as well as waste water facility and the amendment that i refer to and an error on page 13, line 23, the correct number is 57,174,566 to be placed on controllers preserve. Next slide. The water capital supplemental appropriates 344. 8 million over a twoyear period and places 223. 5 on controllers reserve and funds Regional Water projects as well as local water projects including treatment plan improvements, water diversification and supply projects, et cetera. The next supplemental for the water and power and thats for our facilities of country that are either solely water, power or joint facilities and they have ordinance appropriating 260. 3 million over the twoyear period and places 142. 9 on controllers reserve for the pipeline improvement to mountain tunnel improvement and distribution projects in the city and general Fund Energy Efficiency improvements to lower costs. Pair indiscernible . There are demand response programs, electric mobility, local renewable. Next slide, please. So now, im turning to the the debt Organization Ordinance and we only have three because we issue power, waste water or water bombs. So the first authorization is for power bomb and the amendment issues referring Revenue Bonds after adoption to the ordinance. Essentially, we had revenue bond refunding authorization which allows you to save by refinancing the outstanding debt and expired in june and we have a number of refinancing opportunities, particularly in the water enterprise that can realize about 105 million in savings over the life of the debt and we want to be able to immediately enter the market and thats why the amendments are appearing in the financing authorization. Next slide. This next ordinance refers to authorization of revenue bond issuance for the waste water of 349. 9 million and, again, the same amendment as i discussed in the power ordinance and finally, we have the Water Revenue Fund authorization ordinance, authorizing 347. 1 million of issuance of water revenue bond and an amendment, again, clarifying the implementation schedule for revenue refunding bond issuance. And that concludes my presentation and im happy to answer any questions. Chair i believe we have a daily report on these items. So could the bla present on items three through nine. Good morning, chair. And, yes, item three is an appropriation to the revenue and other funds for the Capital Projects and item number seven is the authorization to issue power bonds. We summarize the sources of uses bonds on page three of our report and in terms of the impact on power rates, we discuss that on page five with about a one year increase over the next few years from the municipal customers and a three per year increase for other customers and we recommend approval. Puitem number four is 4. 3 millin in clean power revenues and we summarize the uses of these funds on page 11 of our report and we recommend approval. Item number five is appropriating funds from waste water revenue bunds and item number seven is the issuance of waste water Revenue Bonds. We summarize the sources and uses of these on page 14 of our report. In terms of the impact on rates, we discuss that on page 17 and there would be an eight rate in 2021 and 2022 for customers. In terms of waste water sewer rates. And we recommend approval. And then items number six and nine. Item number six appropriates funds of water Revenue Bonds to water capital programs and item nine approves issuance of water Revenue Bonds. Sources and uses are summarized on page 27 of our report and then in terms of the impact on water rates, it would be a 7. 8 increase in customer water rates in 2021 and seven. Nine increase in water rates in 2 12 and we recommend approval. Chair it looks like the bla has recommended approval on items three through nine and i understand there are some amendments that were presented and could the public utilitys commission please present those amendments now. So the water supplemental, john, are you doing this or am i . Yes, i can take this on. Chair excuse me, can you please refer to it by the item number . Yes, i can. This is john scarpula with the sfpuc and i will work through the amendments right now. File number 230822, the capital supplemental. Chair thats item number five, ok and you have an amendment for item number five. Correct, thank you, supervisor. And that is on page 14, line 23 and were replace the amount of 170,869,000. 66 with the correct total of 57,174,566. Chair thats a big difference. Yes. Chair and any other amendments . On that item, no, but i will move on to file number 200836. Chair thats item number seven. Correct. And on that item, we are looking at a couple of different amendments. Ill start with page eight, lines five through nine and so youll see that amendment authorizes the issuance of refunding Revenue Bonds immediately after their adoption. And so thats the first and then there are several other smaller grammatical revisions throughout the document and should i run through each of those or thats the main crux . Chair thats fine. Thank you. I will move on to file number 200837. Chair that is item number eight. And thats page nine, lines 15 through 19. And, again, this is authorizing the issuance of refunding Revenue Bonds immediately after the adoption of the ordinance. Press star 3. Please let us know if there are any callers wishing to comment on the items. Madam, chair, there are no callers in the queue. Chair three through 9 are now closes for public items. I would like to adopt 5, 7, 8 and 9. Could i have a second, please . Second. Chair can i have a role call vote, please, mr. Clarke. Clerk. Can i clarify the second . Supervisor walton. Pair. To accept 5, 7, 8 and 9. role call . Chair i would like to move these items. Could i have a second, please. Second. Chair role call vote, please, mr. Clerk. role call . There are five ayes. Chair that was our trailing legislation and we will hear from the public utilitys commission and i believe we have eric sandler, julie ellis, Michael Carmen and charles pearl. The public utilitys commission, the floor is years. Before we do that, should i read items 1 and 2 . Chair thank you. Item number on 1 the appropre ordinance appropriatating all expenditures for departments of the city as of july 31st, 2020 for years ending june 30, 2021 and june 3 30, 2022. This is continuing, creating or establishing these positions. Chair thank you very much and now lets hear from the public utilitys commission. Chair fewer, we presented a presentation at the last meeting and we are in agreement with the budget analyst and it was certainly we really appreciate all of the work of the budget analyst, particularly miss martin. They were difficult substantives, we are in agreement with the budget analyst. Chair im glad you came to an agreement. Improve heard it was, you know, difficult conversation, but im glad you came to an agreement. And so, yes, present yee. Youre on mute, president. Can you explain why puc would be using vehicles and im talking about passengertype vehicles and why youre using quite a number of luxury vehicles. Thank you, supervisor yee. The top three reasons we rent vehicles is that we have Construction Projects and infrastructure is the largest user of shortterm. Projects are shortterm and when thats over, we relinquish the vehicle and we rent the vehicle if the vehicle is totaled and no budget to replace it. We utilize a contract that is a citywide contract that oca manages with enterprise. The specifications are unclear what they will pay for. Thprintwe do not pay any more te citys contract rates for the vehicle. It seems like these vehicles you lease for not just one or two days or a week, and it seems lengthy. Why is it . We have Construction Projects and with the needs for vehicles can increase in decrease dramatically depending on the construction management. indiscernible . I had a hard time understanding what you just said. We try to manage our fleet effectively and there are a number of we had in our budget a number of recommendations for a replacement about 36, for 1. 47 million and was included in the twoyear budget and there is potentially a higher likelihood we would need to rent vehicles over the next two years. I didnt want to keep on asking. Its not you. Its the sound system. And what ill do, this issue will be brought back up. Well provide more information. To get more information and maybe more written because for whatever reason, i cant understand what youre saying very well. Its not your fault. Chair mr. Sandler, would you please provide for this committee the information that present yee is request