Published By: Commission
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MINUTES COMMISSIONERS |
DEPARTMENTS AND ENTERPRISES Water Enterprise Gavin Newsom Michael Housh |
ORDER OF BUSINESS:
1. Call to Order: 2:07 P.M.
2. Roll Call: Present – President Ann Moller Caen, Vice President E. Dennis Normandy, and Commissioner F.X. Crowley
Excused Commissioner Richard Sklar, Commissioner David Hochschild
3. Approval of Minutes
a) Minutes of the February 15, 2008, Special Meeting
b) Minutes of the February 26, 2008, Regular Meeting
c) Minutes of the March 11, 2008, Regular Meeting
President Caen announced that approval of these meeting minutes would be continued to the regular meeting of April 8, 2008, and called attention of a mistaken item description noting that the meeting of February 15, 2008, had been a Special rather than a Regular meeting.
4. Public Comments
There was no public comment.
5. Communications
6. Commission Business
Vice President Normandy requested that an item be calendared to express the Commission’s thanks and appreciation to former Commissioner Ryan Brooks for his dedicated public service.
In response to a question by President Caen concerning press reports of the proposed demise of the Pacific Rod & Gun Club’s tenure on PUC property at Lake Merced, Assistant General Manager of Water Michael Carlin reported that the Lake Merced Task Force in cooperation with all of the many stakeholder in that community were discussing a wide array of possible options in an ongoing collaborative process to enhance the environment and enrich recreational use of Lake Merced and no such decision had been made. Vice President Normandy observed, this press report of the club’s demise was premature.
7. Report of the General Manager
a) Micro-Turbine Pilot Project
Acting General Manager Tony Irons introduced Paul Ito and Don Lampe of the City Distribution Division (CDD) Operations and Maintenance to support use of micro hydro turbines in the City Distribution system to produce an alternative source of energy. Mr. Lampe reported, we believe we have the resources and technical knowledge within the CDD to operate and maintain these units, and given the resources and support of the PUC staff could implement a pilot project to assess the feasibility of their use in our system. Mr. Lampe reported further, there was hydraulic energy in the system that was currently wasted through the use of throttling valves or pressure reducing valves. This hydraulic energy could be converted to electrical energy and used to offset our power consumption. Converting this wasted energy into usable power without adversely affecting the delivery of water to our consumers appears to be possible through the use of Micro Hydro Turbines. Mr. Lampe noted that there were challenges and a learning curve associated with this technology but staff believes it would be worthwhile to investigate the potential of this alternative source of electrical energy. Mr. Lampe concluded by reporting that staff looked forward to participating in this project that demonstrates our commitment to energy efficiency and reduces our dependency on fossil based fuels and sources of power outside the City and County of San Francisco. Responding to questions by President Caen, Mr. Irons reported that the Operations and Maintenance of CDD proposed to conduct this pilot project with use of existing resources. Vice President Normandy applauded staff for staying ahead of the curve on this issue.
b) Permeable Sidewalk Civic Center pilot project
In response to a request from Mayor Newsom, Mr. Tony Irons reported that the PUC would be undertaking a pilot project to investigate water permeable walkways in Civic Center to highlight and call attention to this important way of enhancing the environment. Mr. Irons reported a detailed proposal would be brought to the Commission and that this project would be managed by Wastewater Enterprise Regulatory Specialist Rosie Jencks.
c) Combustion Turbines (CT’s) Project Update
Mr. Irons reported the good news that a contract to go forward with building this very challenging project had been finally achieved with a general contractor, Industrial Construction Company (ICC) of Cleveland. Mr. Irons reported that he had discussed the proposed contract with Commissioner Sklar who had expressed his approval and Mr. Irons believed had so informed the Commission President and the Mayor’s Office. Mr. Irons applauded the excellent work provided by Mike Martin, project manager in moving this item forward and noted that a signed agreement to construct the plants as proposed and designed would be delivered for consideration by the Board of Supervisors next week. Mr. Irons then followed up outlining four areas where this project would move forward next. First, renovation of the combustion turbines themselves would be done by General Electric. Next a Construction management contract would be signed. Then approval of a lease agreement with the Municipal Railway and a power purchase agreement both the California Department of Water Resources, noting the California Energy Commission and the California Independent System Operator (ISO) were pleased with this agreement. Mr. Irons reported that the proposed agreement included all four turbines including those proposed for use at the Airport. Mr. Irons, noting Commissioner Sklar’s preference that project was better done by the Airport, explained that the Mayor’s Office, the Airport Commission, as well as the Board of Supervisors would be involved in working out how this might be accomplished.
In response to comments by President Caen, Mr. Martin then outlined the lengthy process that led to this point and explained why the airport project was relatively more expensive, noting that the same extensive power grid connections had be built for the one turbine at the airport as had to be done for the other three proposed for the in-city plant. Mr. Martin also responded to President Caen’s question, reporting use of existing Mirant Plant posed significant additional practical and regulatory challenges that would delay completion of the project.
Mr. Tony Irons concluded by noting that this was likely his last appearance at the Commission in the role of Acting or Deputy General Manager although he was sure to return from time to time with various projects. Mr. Irons remarked that he had really enjoyed working with the Commissioners, and had particularly enjoyed his active partnership with General Manger Susan Leal, who had gathered a skilled team that had significantly moved the SFPUC forward during her tenure.
Vice President Normandy lauded Mr. Irons’ past contributions and expressed his own and his colleagues’ confidence in Mr. Iron’s continuing exemplary public service leadership on the important projects under his supervision yet to be finished.
Next, Water System Improvement Program Manager Julie Labonte presented a brief update on the Risk Mitigation Plan now being implemented, reporting that Maureen Barry had been designated as WSIP Communications Director. Next, Ms. Labonte addressed the proposed memorandum of understanding to be modeled after the first under development for Bay Division Number Five Tunnel including seven mile East Bay and nine mile Peninsula Tunnels crossing through two counties, several cities, school districts, and other jurisdictions. Ms. Labonte reported that although the SFPUC was exempt from some legal obligations by state law in the interest of meeting its environmental impact mitigation requirements and developing a cooperative working relationship with then jurisdictions that it had been decided to enter into a series of memorandums of understanding, (MOU). These Ms. Labonte reported were to be negotiated with these jurisdictions in order to make clear each side’s expectations and in addition put into place important mutual cooperative plans, such as a SFPUC commitment to minimize construction related impacts as much as possible and staging for construction activities, to minimize delay. Ms. Labonte cited the very successful MOU with the City of Fremont as the example. Ms. Labonte noted that Joe Ortiz, the Bay Division Tunnel Project Manager, would oversee detailed negotiations for these MOU’s under Ms. Labonte and the new General Manager’s supervision. Ms. Labonte noted that should important issues come up they would be brought to the Commission before going ahead. In response to the WSIP Manager’s request if this was the way the Commission wished to go forward, it was a consensus of the Commissioners that this approach seemed useful.
Vice President Normandy recalled that Supervisor Jerry Hill of San Mateo County had reached out to the PUC to open communication concerning these issues and expressed his desire that this relationship be continued.
External Affairs Assistant General Manager Laura Spanjian brought the Commissioners up to date with the ongoing activities of the PUC and Mayor Newsom’s efforts to carry out the Mayor’s Executive order banning use of bottled water by city departments. Ms. Spanjian reported that Food & Water Watch in cooperation with the SFPUC had sponsored the end phase of this effort Restaurant Bottled Water Campaign & Water Quality Initiative reporting on a recent event held at the Ferry Building and attended by Commissioner Hochschild, to showcase and encourage restaurant participation in serving tap water instead of bottled water to their customers. Ms. Spanjian cited some of the internationally famed restaurants participating. President Caen noted that she had been conducting her own private campaign to encourage restaurant’s to serve Hetch Hechy water for several years with great success.
Assistant General Manager Scott MacDonald reported on the ongoing developments with our proposed FY 2008-09 Budget. In response to a question by President Caen concerning compliance with the Mayor’s request for an 8% reduction in staff, Mr. MacDonald described how the staff proposed to respond through a mix of vacant positions and delays in hiring.
CONSENT CALENDAR
9. All matters listed hereunder constitute a Consent Calendar, are considered to be routine by the San Francisco Public Utilities Commission, and will be acted upon by a single vote of the Commission. There will be no separate discussion of these items unless a member of the Commission or the public so requests, in which event the matter will be removed from the Consent Calendar and considered as a separate item.
Moved by Vice President Normandy, seconded by Commissioner Crowley, to adopt items (a-d) listed under the Consent Calendar; passed (3-0 Caen, Normandy and Crowley) unanimously.
a) Resolution No. 08-0045:
Ratify the Declaration of Emergency made by the General Manager of the San Francisco Public Utilities Commission, dated February 5, 2008.
b) Resolution No. 08-0046:
Approve the plans and specifications and award Wastewater Enterprise, Repair and Replacement (R&R) Program-funded Contract No. WW 440, Boardman Pl., Hallam/Harrison/Jones/Stevenson Streets Sewer Replacement and Pavement Renovation, in the amount of $1,248,158, to the lowest, qualified, responsible and responsive bidder, D’Arcy & Harty Construction.
c) Resolution No. 08-0047:
Approve the plans and specifications and award Wastewater Enterprise Repair and Replacement (R&R) Program-funded Contract No. WW-472, Wastewater Enterprise Elevator Maintenance, in the amount of $436,195, to the lowest, qualified, responsible and responsive bidder, Ascent Elevator Services, Inc.
d) Resolution No. 08-0048:
Accept work performed for Wastewater Enterprise, Repair and Replacement (R&R) Program-funded Contract No. WW-420, Alma/Fulton/Willard/Saturn Streets Sewer Replacement and Pavement Renovation, by M. Hernandez Construction, approve Modification No. 1 (Final) decreasing the contract by $87,677.81, for a total contract amount of $1,062,846.19, (and with a time extension of 2 consecutive calendar days for a total contract duration of 142 consecutive calendar days;) and authorize final payment, in the amount of $95,929.15, to the contractor.
PROFESSIONAL SERVICE CONTRACTS
Award
9. Discussion and possible action related to approve agreement No. CS-898, environmental analysis services, New Diversion Dam Road Bridge Upgrade Report.
Irina Torrey, Manager of Environmental Reviews, explained that this item provided for the needed environmental review for the proposed building of a supplemental new larger capacity steel bridge to supplement an existing historic bridge.
Moved by Vice President Normandy, seconded by Commissioner Crowley, to adopt the following resolution; passed (3-0 Caen, Normandy and Crowley) unanimously.
Resolution No. 08-0049:
Approve the selection of Jones & Stokes; award Water Enterprise Revenue-funded Agreement No. CS-898, Environmental Analysis Services, New Diversion Dam Road Bridge Upgrade Project, to provide environmental analysis services; and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute a professional services agreement with Jones & Stokes for an amount not to exceed $450,000, and with a duration of 36 months or, in the event negotiations are not successful or City requirements are not satisfied, to re-advertise the request for proposals.
Amend
10. Discussion and possible action related to approve amendment No. 2 to Water Enterprise Water system Improvement Program Agreement No. CS-704, Harry Tracy Water Treatment Plant (HTWTP) Filter Design and Study, with MWH-Lee Joint Venture.
Moved by Commissioner Crowley, seconded by Vice President Normandy, to adopt the following resolution; passed (3-0 Caen, Normandy and Crowley) unanimously.
Resolution No. 08-0050:
Approve Amendment No. 2 to Water Enterprise Water System Improvement Program-funded Agreement No. CS-704, Harry Tracy Water Treatment Plant (HTWTP) Filter Design and Study, with MWH-Lee Joint Venture to authorize design support during the Bid and Award phase and the Construction phase for the filtration, coagulation, and flocculation facilities; and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement by $389,597 for a total agreement amount of $1,389,508.
Close
11. Discussion and possible action related to approve Amendment No. 2 to Water Enterprise Water system Improvement Program Agreement No. CS-704, Harry Tracy Water Treatment Plant (HTwTP) filter Design and Study, with MWH-Lee Joint Venture.
Susan Wade, Strategic and Sustainability Planning, reported that the full Sustainability Plan would be brought to the Commission for a full discussion in a couple of months with proposed strategies and implementation plans.
Moved by Commissioner Crowley, seconded by Vice President Normandy, to adopt the following resolution; passed (3-0 Caen, Normandy and Crowley) unanimously.
Resolution No. 08-0051:
Approve Amendment No. #2 to External Communications and Strategic Planning Division No. CS-799, Analysis Services for the SFPUC Sustainability Plan and Program Agreement, with Ove Arup & Partners Calif. Ltd for additional meetings, analysis, response and draft deliverables associated with requested additional stakeholder and public review, and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement by $120,000, for a total agreement amount of $669,999, and with a time extension of four months, for a total agreement duration of three years and four months.
CLOSED SESSION
12. Public comments on matters to be discussed in Closed Session.
No public comments were offered.
13. Motion on whether to assert the attorney-client privilege regarding the matters listed below as Conference with Legal Counsel.
Moved by Vice President Normandy, seconded by Commissioner Crowley, to assert the attorney-client privilege; passed (3-0 Caen, Normandy and Crowley) unanimously.
Present in the closed session were: President Caen, Vice President Normandy, Commissioner Crowley, Acting General Manager Tony Irons, Legal Counsel Noreen Ambrose, and Commission Secretary Michael Housh
The Commission went into Closed Session at 2:42 P.M.
14. Threat to Public Services or Facilities – Pursuant to California Government Code Section 54957 and San Francisco Administrative Code Section 67.10(a).
Consultation with: Agency counsel concerning security of SFPUC Water and Power Systems.
15. Conference with Legal Counsel – Pursuant to California government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d). (Rothschild)
Resolution No. 08-0052:
Gregory Martin, Claim Number 08-02280 (08-W0026-2) Filed: February 22, 2008
16. Conference with Legal Counsel – Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d). (Rothschild)
Resolution No. 08-0053:
Hermine Lando, Claim Number 08-02481 Filed: March 14, 2008
17. Conference with Legal Counsel – Pursuant to California Government Code Section 54956.9(a) and San Francisco Administrative Code Section 67.10(d). (Rothschild)
Resolution No. 08-0054:
Autumn Adamma/Dark Gardens, Claim Number 08-02332. Filed: February 29, 2008.
Following Closed Session, the Commission reconvened in Open Session at 2:49 P.M.
18. Announcement following Closed Session.
Following Closed Session, President Caen announced that there was no action on Item 14, and that Items 15, 16, 17 were settled as the actions taken during Closed Session.
19. Motion regarding whether to disclose the discussions during Closed Session.
Moved by Vice President Normandy, seconded by Commissioner Crowley, not to disclose the discussions during Closed Session; passed (3-0 Caen, Normandy and Crowley) unanimously.
There being no further business to discuss, the meeting was adjourned at 2:49 P.M.
Michael Housh
Secretary
