[gavel] good morning everybody and welcome to the San Francisco board of supervisors budget and finance Committee Meeting for wednesday, october 26, 2016. My name is mark farrell all be chairing this committee. Im joined by supervisor katie tang and supervisor norman yee. I want to thank the clerk of the committee and sfgov tv for covering the meeting today. Do we have any announcements . Please silence all cell phones. Items acted upon today will appear on the november 2 board of supervisors agenda unless otherwise stated thank you. Mdm. Clerk all item 1 is item 1, 2016 issuance by water Revenue Bonds [reading ordinance] thanks very much for our puc is here to speak good morning supervisors chairssf puc. The item before you this morning is a request for your review and approval of Revenue Bonds for water enterprise. These bonds are meant to fund our Water System Improvement Program were what you may know as the us which is a Multiyear Program to rebuild our Regional Water system. I have some slides to share with you to go through. If we could go to the school slides please . This transaction i will walk through some details on that. Ill talk about the sources and uses of the funds. We plan to use the money. Ill go within the board resolution before you today. I will talk a little bit about the transaction documents which as you know with these sorts of transactions theres a lot of different documents to review. Ill describe those. I will go through some disclosure q a which would we know with our commission which we found helpful and ill share those with you and then that transaction schedule. So this item supervisors, is what we are calling our 2016 series c water Revenue Bonds. That authorization before you is for up to 295 million and will be sold on a competitive basis. The bonds will be for up to 30 years term and they will have a stick straight and right now if we were issued those funds rate the rate would be about 3. 6 . Or so. These bonds will be repaid from water enterprise revenues. The bonds also interestingly will be certified as green bonds and green bonds as you may know, are meant to provide a environmental benefits and this will actually be our third series of green bonds that weve issued. The first two are in our watersorrywwastewater and power enterprise so thisll be the first green bonds certified green bond series for our water enterprise. The bonds will be issued as taxable as opposed to tax exempt. We are typically im sure familiar with taxexempt bond issued. This one is taxable and that is how the irs looks at a Regional Water system get we have some private entities that are plugged into our water water system and our wholesale customers Stanford University and a private company cal water are two of our allstar customers the iris deems those sales to those entities as private activity and thats why his particular bond transaction represents the taxable portion of our overall Water System Improvement Program. The 4. 7 billion program. These bonds were originally authorized by this board in 2010. This is the transaction now authorization to actually issue the debt. Here is the source of the uses good to enter 95up to two and 95 million the vast majority of these funds will be used to pay off our commercial paper. As a reminder, supervisors we use commercial Paper Program as a way to prefund project expense at a very low interest rate. Right now those Interest Rates are right under 1 . So its very tax cost advantageous for us use our commercial Paper Program. Then we roll them into these longer fixed rate debt series. Thats traditionally how we issue our debts. The rest of the funds from this issue will Fund Additional project monies from our program which will be issuing debt over the next couple of years and we are anticipating wrapping up with this in 2019 just a few more years. A few more years for that program. The rest of the funds will be used for capitalized interest and [inaudible]. In terms of the resolution before you today, supervisors, we got again the authorization to issue the debt. We are coveting promises, covenants to our bondholders related to our water indenture and we are reaffirming those. We are bringing forward to you the form of bond dockets with a walkthrough in a moment and describe those in more detail. Then this resolution before you a prices the execution of the transaction to our general manager. So again, theres typically many documents with these types of transactions. I will walk through those with you. The preliminary official statement is the largest of those documents that for the main Disclosure Document that describes who the sf puc is good what are Water Enterprises who are customers are and how we will use the money. The Supplemental Indenture is our agreement the basic agreement between the puc and bondholders and it talks about the bond details in the terms and provisions of the transaction. Notice of intention to sell is a notification to the Financial Community related to this pending sale. The official notice of sale is a notice to underwriters regarding the terms for this competitive transaction. A bond purchase contract, we wont be using that we include it just in case we have to switch to a negotiated transaction. All we include a form of that document should we need to renegotiate but as i mentioned earlier this would be a competitive sell. Then the continuing disclosure certificate it in our tos and describes our ongoing requirement to disclose and report to the investment community. The next couple of slides just talk about some big picture q a related to disclosure and her commissioners felt this was hopeful for them so thats why were showing this to you to get again to reiterate purpose of the debt to fund our previously authorized projects. The structure of the bonds, its up to 30 years senior lien longterm fixed rate debt to no variable bonds here. The bonds will be sold competitively. The repayment will be from water enterprise revenues. How much debt is a water enterprise currently have outstanding speakers 4. 1 billion. Just as an aside, we have full customers that fund about two thirds of this cost. B is worse about one third. How will bonds impact rates. One rates will increase approximately 3 dollars but again about one dollar of that is shared with our retail customers here in San Francisco and the whole also customers will pay about two dollars about three dollars. We dont integrate any negative impact related to our readings and the ratings are noted there for [inaudible]. In terms of the transaction schedule, the Commission Approved this last month. We were are before you today assuming the board gives us a thumbsup next week we are anticipating a pricing towards the end of november and closing in the middle of december. Im happy to answer your questions. Thank you very much it colleagues, any questions right now for puc staff . Okay. Mr. Rose can we go to her report for item 1 please . Yes mr. Chairman and members of the committee on page 4 of our report we have a table for which outlines the estimated sources and uses for the requested not to exceed 295 million in water Revenue Bonds and we also report that the annual debt service is projected at 18 million. 60 5. 69 were a total of 487 million. 76 4. 963 that includes the 295 million of principal and 190 21765 of interest expense and thats over a 27 year term. We do recommend that you approve this resolution thank you very much mr. Rose. Colleagues, any further questions . We will open this up to Public Comment could anyone wish to comment on item 1 . Seeing none, Public Comment is closed. [gavel] i make a motion to send for this recommendation without positive recognition moved and seconded. We can take that without objection [gavel] thank you very much. Mdm. Clerk klees item number two item number two a customer generation agreement with pacific gas and Electric Company solar power project at Willie Brown Middle School. Thanks very much for being here. Good morning my name is [inaudible] i manage the Renewable Energy at the San FranciscoPublic Utilities commission. This resolution proposed authorizes the general manager at the puc to enter into a customer generation agreement with pg e on behalf of the San Francisco unified School District. The customer generation agreement is required interconnected Solar Project that Willie Brown Middle School to the electric grid. The sf puc our customer the School District has developed 133 kw Solar Project on the roof of their building. In the past the puc has come before the board requesting your approval but connection agreement for home Solar Project. You may remember the north beach collaborate [inaudible] because this is interconnected out pg e to the grade we must execute the generating facility Interconnection Agreement with pg e. This is very similar to other in connection agreement and the only difference is that this facility will generate electricity and requires the execution of a customer generation agreement wherein the School District owns the project and puc is a new customer. With your support we asked the committee recommend this item to the full board of supervisors so that this project can be interconnected to the great. Im happy to answer questions. Colleagues, any questions right now . Okay. We do not have a budget on this item so long to Public Comment. Anyone wish to comment on item 2 . Seeing none, Public Comment is closed. [gavel] i will go ahead and move it. With a positive recommendation to the full board motion by supervisor yee. We can take that without objection [gavel] please call item number three item number three except an extended rant to the friends of San FranciscoPublic Library of two 150,000 of inkind services and cash monies from the friends of the San FranciscoPublic Library for a variety of Public Programs and services in the school year 201617. Welcome. Good morning supervisor. City librarian. We ask for your support in approval of the resolution that authorizes the library to accept seven 753,000 for the wonderful programs in which the library by helping us become a premier urban library. This funding is allow us to push innovation to support a lot of the Team Programs that we have good they use programs. Certainly are one city one book and just to give you some real quick statistics, last year we had over 18,000 separate programs and they were attended by over half 1 million residents and beyond the city. So we are very proud of that. He continues to be one of the fastestgrowing areas that the library supports. Our Summer Learning program and i know all of you have an terminus we support about that, within an alltime high. With over 900 programs this summer. Within alltime attendance of over 28,000 folks attending. This included families, teenagers, young people. So were very very proud of that and certainly ask that you support this resolution could so we can continue the great programming that takes place at the library. Thank you very much. Colleagues any questions because we will open this up to Public Comment. Anybody was to comment on item number three . Good morning. I just want to introduce myself on the executive director of friends of the San FranciscoPublic Library and we are extremely happy to be able to work in collaboration with the library allowing the community to lend support for more programs and we hope that continue to do this but i just want to say, thank you and to say its a wonderful experience to be able to bring the public to the private sector together with the Public Sector working with louise and his staff to make a great library. So, thank you thanks very much. Anybody else was to comment on item 3 . Public comment is now closed [gavel] i will make a motion to send for this resolution with a positive recognition to the full board moved and seconded. We can take that without objection [gavel] mdm. Clerk please call item number four item number four, and Agreement Amendment job apps including a contract increasing the maximum expenditure by possibly 600,000. Thank you very much. Welcome. Thank you limited pot we jump deputy, comptroller. Before you today is a contract on them and thats very brief presentation. Ill put on the overhead to walk you through it and of course answered questions you might have. The purpose of this is to basically run the electronic plumbing and applications that are Human Resources department uses and that our Department Partners with them on. Job apps allows for job applications including job postings recruitment Testing Certifications and referrals. This a twoyear extension and the agreement allows us to satisfy requested items from our department of Human Resources to serve them in our job candidates and her new hires well. Specifically, amendment number 10 is for two years totaled 612,000 and includes the extension of maintenance and support which ensures we are doing quarterly upgrades debugging and of our Disaster Preparedness and recovery plans up to date for this part of our business. Happy to answer any questions you have today. Thank you very much. Colleagues any questions . Supervisor tang just based on i believe it was mr. Roses report it sounds like the Comptrollers Office is also looking into other renderers after this contract extension expires good can you just talk a little bit about that . Thank you for the question. We are indeed going through a competitive process to look at how best and how economically to meet the department of Human Resources needs. So weve gone through a competitive process over the summer. Bids were due, three came in for service so we will be considering those. These types of services often take 12 years to implement and so we are asking for just a twoyear extension for this contract to allow us to continue operations as is as we then will look at those competitive bids and for potential deployment into years. Okay. Thank you limited colleagues, any other questions bequest is to rose can we go to your report please yes mr. Chairman and members of the committee on page 9 of our report we shall table two and that summarizes the additional requested etc. 12,000 in costs under the proposed 10th amendment of this agreement with job apps. We do recommend you approve the resolution he was thank you very much mr. Rose. Colleagues if theres no other questions want to Public Comment for item 4. Anybody was to comment the seeing none, Public Comment is closed. [gavel] i will go ahead and make a motion to pass this out of committee the positive recommendation to the full board. Weaver motion by supervisor yee. The move we can take that without objection bedevil mdm. Clerk please call adam five item 5, in agreement with the California Department of Health Care Services for participation in the oh Person Care Pilot Program coordination of Health Behavior health and Civil Services in a manner with the goal of a Group Beneficiary health and wellbeing to more efficient and effective use of resources. We have mr. Wagner hear from dph. Welcome he was good morning greg wagner chief Financial Officer from department of public health. The resolution before you relates to a Pilot Program in the states 1115 medicaid waiver which is a program that authorizes funding for healthCare Services for county governments including our own. There is a a pilot in the waiver call the whole Person Care Pilot Program. Those are federal funds that are available to counties to implement programs that improve quarter nation of services to targeted populations with high health needs. Where we are right now that San Francisco has submitted an application that this was a joint hopper effort by the department