Good afternoon, everyone. Its friday, october 23, 2015, we are still from the 21st century this is the lafco meeting and like to have our clerk alicia madam clerk, please call the roll. Commissioner avalos supervisor breed absent supervisor campos absent commissioner crews supervisor mar mr. Chair a up quorum. Thank you today lafco meeting is brought by sfgovtv staff charles and jim smith madam clerk completed speaker cards and documents to be included should be submitted to the clerk. And great it is now 134 additional supervisor breed has joined us call the second item please. Item number 2 the september 25, 2015, joint special meeting with the San FranciscoPublic Utilities commission okay very good. Colleagues any questions or comments on our minutes seeing e seeing none, open up for Public Comment and seeing a lack of commenter well Public Comment is closed. And motion to approve from supervisor mar and seconded by vice chair decrees well take that without objection. Next item. Item 3 the Community Activity report status on the Program Launch and b status on the proceeding the california Public Utilities commission. Great last meeting the joint meeting with the puc and lafco gives us a sense were on the on the same page and looking at an aggressive timeline looks like march or april for launching and today, we have barbara hale from the Public Utilities commission to give her part of presentation. Barbara hale assistant jp morgan general manager for power i want to update you on the Business Plan analysis and efforts how we are doing on the contracting approval with the strategies basically our overall schedule to close the loop on the last discussion and we understand there is interest in hearing how we are doing on the outreach so i have charles here with me today he will present that at the charges pleasure. I want to make sure i dont forget commissioner crews request to indicate how many folks have signed on the website for cleanpowersf we are 200 and 60 for those linking sign and let us you know go to cleanpowersf. Org so first a quick recap on cleanpowersf goals and objectives affordability is a big theme for San Francisco and it applies this year as well this is you know this is what youre Business Plan effort is all about balancing those goals and chief of Police Financial stability you know what well look at in the risk analysis is, you know, is the initial enrollment case that were studying financially viable does it remain viable when we test different possible outcomes for example, you know we said our basic green product is going to have a content of 33 and 50 percent when we scale and trust fund test that range do we continue to meet our be affordability and continue to achieve Financial Stability and likewise looking at opt out rates if more customers opt out were modeling a 20 percent if more opt outdo we obtain our modeling goal those for for initial enrollment at thirty to 50 megawatts and a full testing where this is financially viable and so to give you the numbers on those the initial enrollment is thirty to 50 megawatts 20 thoughts to 75 accounts that is about a 35 million annual expenditure for that program at full enforcement that is around 4 hundred megawatts three hundred thousand go gets a 200 and 70 millions operating stream so age bit this is a little bit larger than the pucs wastewater the folks it serve San Franciscos stormwater flow requirement it is you know a pretty Major Program that the city is proposing to wlaufrn that Financial Stability is an important aspect were testing through our Business Plan and Risk Assessment forevers. So when i talk about the Risk Assessment what are the Program Risks were looking so i have on the slide here relates to the Program Risks to the goals you know affordability goal what is the risk and pg e will be too low or ours too high the cleaner risk all of the elements in San Francisco is the risk would be that our reinvaluable content is too low similar for the local jobs and projects investments we wouldnt have enough familyfriendly capacity to meet those goals and overall in terms of financial risk we have sufficient resources to keep the program financially available so weve identified the risk that threaten those stablts and we use the discipline of enterprise wide Risk Management to identify the risk and score them as we score them we glutton this process where you know the Business Plan takes the risk you see that on the slide in the second column and the impact on our clean power obviously in the first column the objectives and identifies the Mitigation Strategy on the slides in the third column from russ that risk and finally the Business Plan will recommend policy guidelines that is what you see in the fourth column that were going to ask our commission to do you want that will guide your management of the Program Going forward and it is really the policy guidelines that were going to ask our commission to do you want that will help us as a staff get the balance right amongst the affordable cleaner and local investment okay. So then lets take one of the big i didnt see the third one down the cost of supplies exceeds the revenues that risk and apply the discipline of Risk Management on this slide the risk identified and then some preliminary ratings both initial and with mitigations what we do through this process is we assign a likelihood the risk will occur and an impact score to you know if this risk occurs how impactful to the program without mitigation you know the this risk this risk that costs the supplies will steady our revenues get a high score of 25 that means wear certain it burglary happen if we do nothing to control the costs and it will have a high impact on the program it starts out with 25 and 25 then how to mitigate this risk weve identified the target with mitigation at a target rating with mitigation at 4 and so to thats a relatively moderate or low risk rating how have we gotten there weve taken certain actions this help us control the risk out to the Bidding Community with our offers that have allowed us to start to didnt think begin what the actual costs are contracting for those costs for those supplies at a fixed cost for the full volumes in the initial phase of the program so well completely control that costs that is how we end up with the mitigation steps with the lower risk rating so the commission well go through a series of risk and talk about the mitigations were proposing to implement and what the guidelines are like them to provide to us as we manage of the Program Going forward. I mentioned this is one of the bigger risk in the program and thats because 75 excuse me. 70 percent of cost of the program is the cost of procuring the Electrical Supply to serve the customers. I mentioned the request for approval process that is helping us to mitigate that i want to talk about our strategy for getting those supplies under contract. Were going to be bringing to our commission at the next Commission Meeting on tuesday the 27 a request for approval of the supplier pool and conditional authorization to execute the contracts through the process to really the evidence will then show the competition we saw in response to our request for over find a large pool of bids came in were trying to leverage that connection throughout the negotiation process and maintain some flexibility for us within that contracting process the way were moving forward is through the edison electrical that the board of supervisors authorized us to use for this program is a master agreement and conform process that is used a standard process within the industry were going to bring the master agreement to our commission in middecember excuse me. Brick the master agreement to our commission for conditional approval once weve signed it will allow to us take the second step which is a confirm that is laying out the terms and the confirm well set the volume of kilowatt hours with the specific price of important that volume we expect then that well be signing the master agreement assuming all the approvals are objected in middecember and then in early january is when we will be asking the master agreement counter parties to submit a confirm and be able to evaluate the price and volume and make a commitment for this early january timeframe while we may sign master alternates with multiple parties were only be doing business with a subset of suppliers we sign the confirms with action by our commission on october 27th will allow us to come to the board of supervisors seeking introduction of approval for signing those contracts that gives us a sense of the contract approval strategy were bringing introduce our commission and then on to the board. And now unless questions to schedule. So the scheduled you see up on the screen now is the same schedule i prepared at the joint meeting of the lafco and puc ive highlighted towards the bottom the dates that are key dates that are changing so as you can see well be providing phase one launch in march of 2016 as soon as possible to january 26th that is the 6 week slip we talked about at the last session and that will allow tow us to begin to serve the customers in april. This is the tight schedule as was the other we think that is an cheeshl schedule the stars have to align for nothing to change were moving forward on the schedule and dual tracking the contracting activities to keep our spring 2016 launch date but the contracting it is one of the activities and this next schedule give us a sense of a little bit deeper of some of the activities were pursuing so i mentioned the december 27th date for our Commission Approval of our supplier pool and moving forward then to the board of supervisors with legislation to approve the contracts the commissions approval well be seeking an is 27 will be conditional it will be conditioned on making sure we take the steps of presenting the Risk Assessment in the Business Plan and demonstrating the costs of program in compliance with the chartering well be coming to them on the 10 to complete those tasks and on the i didnt get is when well have additional action by our commission and the action steps are in blue for our commission the puc well be presenting the final risk ascertainment and Business Plan updating the supplier contract negotiations hopefully that will be the date when the Commission Adopts the business practice policies ive talked about and well need to Bring Commission authorization for the gm to finalize the schedule of rates we are we had adopted rates through the rates fairness and the supervisor process independence in the charter we more solid numbers on Program Costs and so the december 8th date will be the start date of the thirty days statureyly required period for the rates bra the board of supervisors. Then excuse me. Between the 8 and 18 we would expect the board and mayor to authorize the execution of supply contracts we are noting here an important benchmark for us to follow on january 1st pg e will have new rates into effective this is important to us our affordability benchmark are we at or below pg es rates were noting that here well move forward under the twostep contracting process up mentioned move into the second step the confirm phrase and get best and Financial Statements through the conforms from over suppliers and he will sign on the doted line to procure power on the 1 of january under this schedule well expecting to issue our first statureyly notification and then that will allow us to moved on march 16 and the beginning of the thirty day quiet period in between us and pg e and customers will get the service in the middle of april ill be happy to answer any questions. Thank you just looking at the latter part of timeline. Yeah. On page 5 slide 9. Yeah. What are the things that can be beyond our control if we hit our timeline up to that date of the things the great risk well not be able to get our partners to do what we need to do to launch is there a lot of barriers in place of partnership to meet our marks. So one of our partners what is providing back up Office Services is notable america weve close to having contract negotiations complete theyre all set within the citys system to do business with them they i think this hurdle will be cleared shortly im confident that wouldnt happening us up to have a successful launch the program with respect to the power suppliers theyll be committing to us through the confirm process to perform im confident if they submit a confirm theyll perform so this will be taken place a fully fund our customer notification and process thats the stuartyly required step well meet those requirements so and we have already the board of supervisors has appropriated 4 million and in working capital as a Financial Capacity to launch the program the only thing at this point would be a hang up for us somehow the prices that come to us in the confirm make it not affordable for us to launch the program i dont expect that to happen when i look at the forward process for electrical well stay within that threshold criteria for launching the program that our commission has given us. What factors will effect the prices you can anticipate. Sure any changes in the electric market forward prices to be influenced by the price of natural gas or severe storms effect that those are typically short time issues within the market but were talking about a long Term Contract obligation those prices influence renewable prices this is something well keep your eye see keep an eye. Is there something that keeps the prices be predictability or something out of control. I was referring to something out of the control. I imagine with the suppliers going in with us want to keep the control to be provider and the in business i dont expect that to be an issue. Or at the earlier stages of the negotiations with them you know the citys Standard Terms but take them time to get their heads around it well get refreshers on the prices so well have a sense of the movement well be associated with the requirement that the city is imposing that might be unique from on the contracts there used to so i think well have pretty good information in midi december on those pricing issues and i think any uncertainty will settle out by then thank you. Okay. Thank you. Any other questions here on the roster so. Okay. Would you like to hear from any colleague on the outreach . Very good thank you good afternoon, commissioners cesar chavez the communication manager for cleanpowersf and enterprise thats been five or six years since ive been up here im excited to be back and new things to talk about before i launch into any power point i want to soften you up a little bit weve worked on colateral material and to our supervisors we have the first draft or the proof of the t shirts well be using those to generate interest we also handing out this flier at a lot of fences weve touched on this from suggests from commissioner crews and gotten feedback people are thats why this home and signing up at night before they go to bed signing up for super green thats the pattern we want to see for the next couple of years and feinstein offending in our office get copies the brochures and advocates gotten copies well be san bruno those in english and chinese and spanish we hosted kind of with the supervisor aids yesterday and got a lot of good ideas and a lot of work coming out of that launch into any power point lets see here so i want to review timelines and schedule as you can see those this list is the events weve attended thus far dating back to july in the event we have coming up tomorrow alone in chinatown im going go to go be at the bayview and be at the district 5 i believe supervisor president breed is host were covering three staff outreach teams and Going Forward weve got to number of southeast related activities and this is kind of the schedule we want to fill all the way through customer enrollment week days and week nights and triple and double booked and venture to all parts of city early next year well be asking for help and support well be out there. I have one question. Sure. So just for clarity your goal for example, be in district 5 tomorrow at hampton so youll be doing and helping residents figure out what their pg e account numbers are and teaching them how to sign up for cleanpowersf and making it as simmer for them. Getting people to sign up at home and working on easier ways to sign up right now the weekend you need a pg e number were working on ways for people to sign up with ease no matter where they are at home, etc. Were locking to those o do those things tomorrow. Most people dont have a pg e account handy and many people receive their bills online now so it is a little bit harder to assess an easier way to figure out like everyone know their address certain things that everyone can enter into a system on the spot i want to figure out a better system to make a easier for people to sign up like places and it mobile working group i can sign you up right now and as soon as you get to the point whats tour pg e number theyre like maybe ill sign up later thats a lost opportunity. We want to capture them in the moment weve talked about with our back Office Company about this dilemma when