Their traditions, the Ramaytush Ohlone have never ceded, lost nor forgotten their responsibility as the caretakers of this place, as well as for all peoples who reside in their traditional territory. As guests, we recognize that we benefit from living and working on their traditional homeland. We wish to pay our respects by acknowledging the ancestors, elders, and relatives of the ramaytush community and by affirming their sovereign rights as first peoples. Thank you very much. Item number two, please. Item number two is the opportunity for Public Comment on any matters within the boards jurisdiction that are not on the agenda. Comments specific. To the item on the agenda may be heard when that item is considered. Members of the public may address the board and will be limited to three minutes of speaking time per person and a total of 20 cumulative minutes for this item. We will now take inperson Public Comment members of the public who wish to provide inperson Public Comment on this item, please line up at the podium now. For the record, there are no inperson Public Comments. We will now take remote Public Comment. Members of the public who wish to provide remote Public Comment on this item should dial star three on the phone or click raise hand in webex. Please note that you will have three minutes. Moderator do we have any remote Public Comments . Okay, it seems that we have one caller, moderator could you please, unmute the caller whod wish to comment . Hear me now . Okay. Your time starts now. Can you hear me . Okay. Yes great. Good afternoon. David pilpel. So im not there in person, but hopefully you can all hear me. I submitted a letter to the board just over an hour ago. Hopefully. And i understand it was distributed to most of you in the room or everyone, and there should be a couple of additional Copies Available on the table. Thanks very much to staff, particularly jay and ben, for receiving and distributing it. I would encourage everyone there to read it and perhaps well find a way to post it later in case anyone else is interested, the one thing i did not include in the letter that i recall now is that there is a Budget Proposal to reduce 311, hours in the event that that Budget Proposal is implemented. And, it seems to me that that might have some impact on the sla Response Times and some other issues about, 311, call requests. So thats something to be seen in the future. Anyway those are my thoughts. And there are some pretty detailed comments. So i would encourage people to read that in connection with, items three and four from them. Thanks for listening. Thank you for your comment. Okay, for the record, there are no additional remote Public Comments. This concludes the Public Comment very much. Thank you very much. We will close general Public Comment and complete item number two. And as the clerk mentioned earlier, we will call item number four. Item number four is an action item for the impound action account. Budget vote on whether to approve expenditures of impound funds and reallocations of impound funds. Refuse rates, administrator j. Leah will begin the presentation. Good afternoon, city administrator chu and general manager herrera. Im j. Liao, refuse Rate Administrator with the comptrollers office, our hearing today includes updates on the implementation of the rate order approved by this board, last august, which includes several operational and administrative changes, as well as new reporting requirements, before we start, i want to thank my colleagues, ben becker and claire wilson, for the work theyve done to support the implementation of the rate order. Also, the team at recology for providing timely information, working collaboratively with our office on implementation and reporting requirements, and also, departments of public works and Environment Department on working with us as we set up new processes. Are you seeing the presentation . Okay. So the first slide, as i get it up, ill just Start Talking through it, its information thats already been in front of the rate board, which is really just an overview of the impound account budget, so just as a reminder, the impound account supports environments, work to advance the citys zero waste goals. Related to waste generation and reducing disposal, and to support Department Public works work around Waste Disposal and code compliance, outreach, street cleaning and public receptacles is in year one rate. Year 2024 Environment Department had a budget of 12. 2 million. Department of public works had a budget of 12 million and rate year 2025. Environment department had a budget of 12. 6 million, and department of public works had a budget of 12 million, and within this budget was, included a 2. 5 million nexus swap from environments non rate related activities to department of public works, for rate related activities, particularly around street cleaning, and street sweeping. In addition, there was a use of 17. 58 million in fund balance that was approved in the rate order. This includes a little over a million for refuse rate administration. And within that includes projects and analyzes for a capital plan. Oh, there we go, an analysis for a capital plan, Cost Allocation analysis and a review of our regulatory structure, also included here are two, one time projects, the trash processing pilot and a pier 96 seismic study, these two projects would be conducted and paid for by by recology. But since these were one time, projects, we tied them to a one time source, the fund balance, to help us keep rates low, and then the last is, 15 million, was approved for new trash cans. So the next part is presentation is really for, for, us, our Office Environment and public works to talk through the activity that was funded by the impound account. Whats happened, in the First Quarter, and then also to talk through some additional requests for drawdown from fund balance and reallocate of some of those funds, just, as a reminder, some of these reallocations are due partly to the timing of the rate order being approved, in august after the budget, the citys budget was approved. So there are some timing issues. And then, as you can imagine, some changes to, some of the needs for, for the departments as well. So ill do a presentation for, the refuse rates administrator. Then well invite , public works and then environment to come up to present their updates. So, just our update from our office, a lot of, since the rate order was passed in august, weve been doing a lot to establish, processes and procedures to implement the rate order, so starting with the impound account, developing disbursement desk procedures, nexus swap procedures, and then reconciliation of the rate year versus fiscal year timing, developing some request forms and withdrawal procedures for the programmatic reserves, a lot of work was done for new reports , in the next agenda item, well talk through some of the new reporting and the form and format development, weve worked over the last five months or so with recology to come to agreement on several new reports. And i think were, we have just maybe a handful of outstanding, reports, to complete. But well walk through those in the next agenda item on what they are, and they include the new accounts, such as the balancing account, and the capital reserve, and the and the programmatic reserve, in addition, weve been working on project scopes and resourcing for the approved projects within the rate order, the capital plan, Cost Allocation and the regulatory Structure Review, weve contracted with hfa and theyll also be presenting in the next agenda item on their update for their approaches to these projects, and lastly, weve been doing a lot of monitoring and analysis of programs and developing a performance and financial metrics tracker, abandoned materials for abandoned materials, collections and public receptacles. We hired a graduate student, claire wilson, to help us with some of the analyzes on the Service Level agreements, these two items were , two of the major Service Level agreements that we focused on during the rate setting process, and so weve brought on some extra support for that analysis and review of the annual audited financials and rate reports and the reconciliation of those two reports. Weve done some site visits to transfer station recycling central and be on the organic site, and we plan on doing one with the landfill and some, some ride alongs to kind of see how collections operations work, in addition to that, weve done some future rate cycle planning. So were setting up an rfp for a prequalified list to, to set us, set us up down the line for, future rate setting processes and also implementation of the next rate order, weve also done a lot of, received a lot of Stakeholder Feedback on the last rate process, and, and in the next agenda item, again, youll see how weve, how weve taken that input into how we seehe process moving on in the future. In the next slide is the budget for our office. So theres really three items here. One is our rate administration team, the original proposal that was in the rate order was around half a million for the team, were proposing no changes to that, noticing outreach and hearing, were asking for an increase in budget here. Increase in use of fund balance here, so sf covid tv for these hearing costs, theres no change. We have, required newspaper advertising for hearings, no change there. And then prop 218 in the previous rate cycle, what we did for prop 218, noticing i would say was probably bare minimum. And were looking to have a more robust noticing, pamphlet to send out to ratepayers, which will require Additional Funding, about 100,000 more, we heard from the rate board that, they wanted to see more outreach, so adding a little bit of budget, 100,000, in, collateral for outreach items. We may do some mailers, and then for our projects, our capital plan budget, has no change. Regular Fee Structure review has no change. Our Cost Allocation study, were increasing from 100,000 160,000, along with the residential for versus commercial Cost Allocation. Weve added a couple other analyzes to the Cost Allocation study, including rate versus non rate allocation and corporate allocations as well, for the rate setting support, were adding additional 50,000, 75 to 125,000 for consulting support. There were asking him to do some additional work around helping us develop schedules around, getting information around operation, operational efficiency, and then the last is additional kind of as needed, additional analytical and administrative support. So i think with that, unless there any other questions around, our Budget Proposal here, what well do is have the departments present theirs, and then well come back and present the consolidated changes from the three departments in terms of the impound budget reallocation ins. Just a quick question, jay, on this one. For the proposed fiscal year 2425 levels that are increasing, i know that youve provided some updates as to the details for that. Yep in our rate order, it included 1. 1 million. Is that what it included . Yes. So youll see that in the original fy 2425, its a 1. 081. Thats the 1. 1. And so what were proposing here is additional drawdown from the fund balance of around 375,000. And does this what will that leave with our fund balance, i was going to present that, later, but we can just show you now. Thats okay. If its coming later, thats fine. Okay. Yeah. Thanks. Yep so i think the next presenter is, dpw. So well have them come up. Good afternoon, members of the board. Bruce robertson, Deputy Director of finance and administration at public works. Ill be going through a brief slide deck to talk about the budget submittal as it relates to the impound account for public works and the fiscal year 25 budget. The table in front of you shows the overview of the main programs where public works received impound accounts through the refuse rate process. And ill go through each of these, really quickly, the one team which i think youre all aware of, those are our staff that go out and do enforcement to ensure citizens and residents of San Francisco have proper disposal of refuse, as well as have set up refuse rate accounts. Those folks go out and do enforcement 24 over seven and can write citations. As you can see, we did have some staffing challenges and you see the significant expenditure total, but we are fully staffed in that area. And i do have some data. Weve been out there really doing enforcement, rather robustly, street cleaning, litter patrol. You will see a slight increase going into fiscal year 25. That represents about a 1. 5 million increase, about a 1 million increase on top of ■th 2. 5 million that the refuse rate board approved previously. Ill talk about that in a little bit more detail. Trash can programs. Thats really a multiple component of the overall trash cans. Thats a slowing of the replacement of the trash cans, for the long time, with the slim silhouette that we did significant outreach for, as well as replacement and maintenance of the renaissance trash cans that you see out there. Now, some of those do need replacement and improvements, as well as the grant we have with a nonprofit entity that goes out and does regular routine steam cleaning. Of the 3300 trash cans throughout the city. And then finally, there is some funding for mechanical sweeping. This is where the 2. 5 and the 1 million was included from the previous rate process, and that we put in our budget to meet the mayors target of 10 budget reductions. And ill go through each of these in more detail in the slides. Coming up. First, let me talk about the programs where there are no changes. The outreach and Enforcement Team has no changes. We have ten staff that started in 2013. And you know, as i as i said earlier, we are fully staffed for the first time in a long time. There approved in the previous refuge rate process was a trash can manager. That hiring process is underway and this position will really do a couple of things. This is the one thats going to do a lot of analytical rigor as we get trash can sensors into the trash can and work with recology in the upcoming rate process to maximize and streamline an efficient pickup of the city trash cans throughout the city. And then finally, the trash can steam cleaning project, about a 1. 8 million grant. We have currently with, cic that is a nonprofit that has held this contract for a few years now. And then on the next slide, ill spend a little more time talking about some of the changes. So the main changes as i mentioned, were 1 million to use of fund balance to mitigate general Fund Reductions. Were trying to use this for equipment. So its one time use for one time needs. So there will be some use for mechanical sweeping where we will buy some equipment. And then the other big change is the 2. 5 million nexus swap approved by the refuge rate board that was moving 2. 5 million of general fund dollars from public works to the department of environment and public works. Increase will see a 2. 5 million increase in refuge rate, impound amount, and that is for mechanical sweeping. So that you can see what that does on the next group of notes. It takes our overall fte funded and the mechanical Street Sweeping Program from 17 to 30. And this is the staff are responsible for little patrol block block cleaning and street sweeping. And then we are pausing and deferring and slowing down the new trash can procurement. So we are going to use 1 million of that fund balance we have allocated in the proposed budget pending before the mayor as submitted. And ultimately the board of supervisors. Should she accept this recommendation and submit it as part of her june 1st budget. This was approved by the public works commission. Use. Of this 1 million, and we are still proceeding with the initial fabrication and design, but we are not going as full speed ahead as we originally thought. We are also working with the office of Contract Administration to talk about, and we just received bids late last week for replacement of overall trash cans and Replacement Parts of the existing renaissance cans. The green cans you see throughout the city. So i just really want to make sure that im bifurcate stating what were doing on the trash can program, because it really is twofold. One is the near time replacement of the existing cans and the parts, and then the long terme replacement of the overall 3300 trash cans in the long terme that were deferring and elongating. So thats my presentation and happy to take any questions you may have. Thanks, bruce. Actually, im a bit confused with the presentation here. So just going back to your second page, which shows the public works fiscal year 2526 budget submittal. Are you referring to the budget submittal youre submitting to the citys overall process, not what youre planning to use from the impound account. This shows the use of the impound account and why the number is increased so much, because it does show that one time use of the 15 million in in fund balance monies. Can we go back to that . Slide two. Right. Yes. Okay. So just go ahead and say that again. So if you look at the 2023 actuals mainly below, because of the vacancies. Yep. And then the fiscal year 2024 budget you can see the big delta. Is that 17. 8 million. And that really is the use of that fund balance for the trash can program. And then it goes d