MINUTES REGULAR MEETING Tuesday, June 24, 2008 10:30 A.M. City Hall, Room 400 1 Dr. Carlton B. Goodlett Place COMMISSIONERS The Honorable Ann Moller Caen President The Honorable E. Dennis Normandy Vice President The Honorable Richard Sklar The Honorable David Hochschild The Honorable F. X. Crowley

DEPARTMENTS AND ENTERPRISES Water Enterprise Wastewater Enterprise Power Enterprise Infrastructure Business Services External Affairs Gavin Newsom MAYOR   Ed Harrington GENERAL MANAGER Michael Housh SECRETARY

ORDER OF BUSINESS:

1. Call to Order: 10:40 A.M.

2. Roll Call: Present – President Ann Moller Caen, Vice President E. Dennis Normandy, Commissioner F.X. Crowley

Excused: Commissioner David Hochschild

The Commission Secretary announced that Consent Calendar items a) and b) as well as Agenda Item 12 were being continued to the call of the Chair and would not be discussed at this meeting.

3. Approval of Minutes

Vice President Normandy noted a first page missing word perhaps “suggested” from the report of the discussion of Communications at this meeting.

Moved as corrected by Vice President Normandy, seconded by Commissioner Crowley, to adopt the Minutes of the May 27, 2008, Regular Meeting; passed (4-0 Caen, Normandy, Sklar and Crowley) unanimously.

4. Public Comments (President Caen set the speaking time at 4 minutes for this item.)

Ms. Espanola Jackson stated that the meeting’s Agenda was delayed in arriving and she was concerned that the Bayview Hunter’s Point Community residents were not able to attend the meeting regarding Agenda Item 13, a matter which she believed usually went first to the Planning Commission rather than to the Public Utilities Commission. Ms. Jackson urged that the Commissioners recall their oath of office to serve the community and consider the views of the residents when taking action.

Mr. Jeff Miller, Director of Alameda Creek Alliance, spoke regarding the Calaveras Dam replacement to restore fisheries stating that in his view the draft PEIR was a travesty that the proposed project would worsen an already bad situation and that the Commissioners had a duty and responsibility to redress past wrongs to preserve the historic native steelhead fisheries on Alameda Creek which the Calaveras Dam had illegally largely destroyed. Mr. Miller noted that his organization and other conservation groups had tried to work with the SFPUC for more than a decade and said this was the last chance for a peaceful resolution of this matter and threatened to undertake every legal action available to prevent the continued loss of this endangered habitat saying that the SFPUC was not fulfilling its obligations.

5. Communications

Vice President Normandy requested that General Manager Ed Harrington and staff respond to Ms. Barbara Kyser’s letter expressing concerns on Chloramine.

6. Commission Business

Commissioner Sklar suggested that at the July 8 and July 22 meetings could be the last meeting of the Commission as it is constituted, and that items for action should be agendaed for the July 8th meeting on the Combustion Turbines (CT’s) Project, as well as a review of the what was the proper SFPUC role in power distribution system projects such as the proposed Transbay Terminal on Treasure Island, and taking another look at the SFPUC’s commitment to provide power for the Lennar/Hunter’s Point proposal. In addition, Commissioner Sklar urged that the Commission take action to express its views concerning the proposed highly questionable transmission line from Newark to San Francisco, given reports that there was interest in using our right of way to add another transmission line into the City.

Another item that Commissioner Sklar wanted to have placed on calendar for discussion and possible action in July would determine the expenditure of Transbay Cable funds for energy conservation in the Southeastern neighborhoods as the Commission had directed, address the details of the as yet nebulous nature of Community Choice Aggregation (CCA) might be, and also calendar an item on how the SFPUC proposed to respond to the impact on our water supply of global warming after 2012. Next, Commissioner Sklar asked that consideration be given to development of a summer rates differential in water pricing to promote conservation and focus attention on this item.

Finally, Commissioner Sklar expressed his grave concern given the recent enactment of Proposition E by the voters that albeit with some useful new approaches, that yet another tinkering with the SFPUC governance was being proposed, this time by election of the SFPUC Commissioners by district, a receipt for many problems that will result in endless political games rather than professionalism and good governance.

Vice President Normandy concluded this discussion by expressing dismay with the reported inclusion of a requirement in this same proposed Charter amendment proposed to the voters that the SFPUC undertake the acquisition of the entire electricity distribution in the City without regard to the SFPUC’s capacity to do so. Commissioner Sklar observed that many people still do not understand the contemporary power business as it exists now rather than what had existed in 1994.

7. Report of the General Manager

a) Mr. Harrington introduced retiring Water Enterprise Civil Engineer “Watermaster” Leo Bauer and presented him with a Certificate honoring his continuous service after 37 years. Commissioner Sklar remarked with some surprise that when he had served as General Manager, he never would have expected to outlast Mr. Bauer in serving with the SFPUC by 4 weeks. Mr. Bauer thanked the Commissioners and joined then on the dais to receive his certificate of honor from President Caen and to take a commemorative photograph.

Mr. Harrington asked Water Enterprise Assistant General Manager Michael Carlin to update the Commission on the fire situation at Hetch Hetchy. Mr. Carlin provided the Commissioners with a handout outlining the current fire situation reporting that on Saturday, June 21st there were several lightning strikes that started fires, that these fires had been upgraded to Category 2, a fire suppression phase, and that the Emergency Operations Center at Hetch Hechy was open and that additional support was being requested. Mr. Carlin reported no facilities were currently at risk but that more thunderstorms were likely over the coming weekend. Commissioner Sklar asked that the Commissioners be kept informed should any facilities be threatened.

Mr. Harrington next introduced the new Assistant General Manager for Finance and Administration Todd Rydstrom. Mr. Rydstrom expressed happiness to be joining the SFPUC.

b) Water System Improvement Program (WSIP)

Water Systems Improvement Program (WSIP) Director Julie Labonte reported on the status of the WSIP.

Ms. Labonte presented an overview of the most recent quarterly report reflecting the changes in the program approved by the Commission and in the most recent upgrade in Primavera. Ms. Labonte noted that for now forward these update would be normally presented within six weeks of the close of a quarter. Ms. Labonte highlighted the new format and called attention to the new format of the project status reports showing each at the subproject level as well. Ms. Labonte called attention to standardization of reporting and incorporation of a new performance breakdown level presenting more representative performance data.

In response to a question by Commissioner Sklar regarding why the forecast column was blank, Ms. Labonte noted that this was because from the next quarter forward date would be reported in the new report format reflecting progress since the prior report. Ms. Labonte then discussed the charts presented, explaining what each of the color lines reported meant. Ms. Labonte indicated that currently the Program was ahead of schedule. Commissioner Sklar noted that it would be critical that any new Commissioners be fully educated as to what all of this meant.

Ms. Labonte next discussed progress toward projects moving toward construction phase. Next, Ms. Labonte turned to the overview of the regional projects, noting that everything was tracking, both with and without water supply projects, as projected in February 2008. Next, Ms. Labonte noted program indices were doing well but that a few projects, including the Project Environmental Review (PEIR), accounted for the lag in the program. Ms. Labonte highlighted that planned expenditures were on budget and that the earned value curve was reporting at higher levels than expected but that more information concerning a number of factors would have to be obtained in order to determine if this performance level was certain.

Responding to a question from President Caen, Ms. Labonte then discussed how the built in float related to start up related to the critical path but that currently program was within the range. Ms. Labonte noted that only the Harry Tracy Project was running behind and that a report on this project would be brought to the commission in August. Next, Ms. Labonte reported on schedule variances of more than three months citing the Calaveras Dam in particular. In response to a query by Commissioner Sklar asking if the projects could be tabbed to speed finding their information, Ms. Labonte agreed that each project report could easily be separately tabbed by project.

Commissioner Sklar then asked regarding the negative public comment offered on the state of relations with the Alameda Creek Alliance on this project. Mr. Harrington responded that negotiations were ongoing and the complete environmental documents and all necessary permits were proceeding. President Caen and Vice President Normandy asked that a report be brought back at a future meeting detailing the points of disagreement with the environmentalists.

Next Ms. Labonte reported on various factors slowing the Alameda Siphon project noting that the planned shut down process was still on schedule. Ms. Labonte reported the individual issues impacting the Northwest Basin Project, the Bay Division Tunnel Project, and on the New Irvington Tunnel Project. Ms. Labonte next described the additional efforts associated with the ongoing Program Environmental Review Process (PEIR) and outlined the various steps needed for the Planning Department to certify the PEIR by the end of October. Ms. Labonte next discussed a SFPUC request to the Planning Department for analysis of a requested 2018 variant which reflecting maintaining amounts of sales to BAWSCA at the current cap. Ms. Labonte reported that no projects were affected by the delay of the PEIR, due principally to delay within the specific projects, rather than a delay resulting from a slippage of the timeline of the PEIR. In response to a query on this point by Commissioner Sklar, Ms. Labonte confirmed that date slippage from the original plans during the past quarter related to individual project related issues other than the PEIR.

Turning next to the environmental reviews at the regional level, Ms. Labonte reported progress going forward to the EIR level, noting most local projects needed to only achieve a categorical exemption. Ms. Labonte then discussed professional services issues, followed by details of the construction management issues and outlined progress on a range of construction management Requests for Proposals (RFP). Turning next to program controls, Ms Labonte described why two $9.5 million contracts would be issued shortly. Addressing risk mitigation issues, the WSIP Manager described putting in place 35 of the 46 Risk Mitigation Action Plan identified mitigation measures. Responding to a question by Vice President Normandy concerning why a decision was made separating the contracts program management from program controls, Ms. Labonte noted that running this contract separately served to better facilitate its management and the smaller contract allowed smaller firms to compete. Ms. Labonte then discussed ongoing seismic upgrade projects and called attention to the critical Harry Tracy Plant project. Ms. Labonte noted that there were many ongoing improvements, citing the successful migration to the next level of Primavera which would greatly facilitate integrated oversight of SFPUC systems, and observing that recent re-baselining gave greater reliability to our reported numbers.

Concluding with the greatest priorities including the PEIR, refining our specification to maintain consistency, awarding program control and program management contracts, continuing our construction management planning and finalizing project controls procedures.

Commissioner Sklar offered a complement on the successful completion of the cross-over valve project ahead of schedule and only roughly $1 million over budget estimates despite a changed location and a changed design that would protect I-280 at Fremont, and was the SFPUC’s first major seismic safety success. Next Commissioner Sklar asked about what information resulted from the inspection of the condition of the existing San Joaquin pipelines subsequent to the decision to reduce plans from four to three pipelines. Ms. Labonte proposed to report back recalling that preliminary information had looked good but that she wanted to provide specific information as to the conditions revealed by the inspections.

Mr. Harrington reported relating to Capital Projects that staff had effectively recommended amendments to the City’s Administrative Code that would facilitate moving SFPUC projects forward.

8. Bay Area Water Supply & Conservation Agency (BAWSCA) General Manager’s Report

(a) BAWSCA Update

General Manager Arthur Jensen reflected on the progress of the Water System Improvement Program and the Commission’s role. Mr. Jensen noted that he would be responding to questions raised by the BAWSCA Board regarding the schedule and scope as well as the institutional changes that could have impact on the program. Mr. Jensen noted that the abrupt replacement of the entire Commission on August 1st was a totally unexpected development that will have an impact on the approval of key contracts and indeed the Program itself after the certification of the PEIR later in the fall all major public policy matters that will be determined by Commissioners without the experience and expertise. Additionally, Mr. Jensen expressed concern describing as “unconscionable” a recent additional change proposed to an elected Commission.

CONSENT CALENDAR

9. Items a) and b) were reported continued to the call of the Chair.

a) Staff Recommendation:
Approve the plans and specifications and award CUW 260 Water Main Replacement/Retrofit Program-funded Contract No. WD 2461 8-Inch Ductile Iron Main Installation in Turk St., McAllister St., Pierce St., Hollis St., and Seymore Street in the amount of $1,789,933 to the lowest, qualified, responsible and responsive bidder, Synergy Project Management. (Continued to July 8, 2008 Regular Meeting.

b) Staff Recommendation:
Approve the plans and specifications and award Contract No. WD-2576, City Distribution Division As-Needed 2008/2009 Annual Paving Contract No. 2, in the amount of $2,118,804 to the lowest, qualified, responsible and responsive bidder, AAA Construction.

Moved by Commissioner Crowley seconded by Commissioner Sklar to adopt item (c) listed under the Consent Calendar; passed (4-0 Caen, Normandy, Sklar and Crowley) unanimously.

c) Resolution No. 08-01:
Authorize the General Manager of the San Francisco Public Utilities Commission to enter into a Memorandum of Understanding (MOU) with Bay Area Clean Water Agencies (BACWA) to participate in a Bay Area Regional Water Conservation Campaign funded by a grant from the Department of Water Resources, and further authorize the General Manager to provide $150,000 of funding to the Campaign which will be reimbursed by BACWA once grant funds are received.

REGULAR BUSINESS

10. Discussion of and possible action to revise the Commission’s Rule of Order No. 11 related to Commission agenda; and discussion of a proposed new Rules of Order related to Commission protocols.

Deputy City Attorney Noreen Ambrose described how the proposed amendment to Rule 11 would clarify that agenda items were to be placed on meeting agendas by the Commission President and/or the General Manager. Commissioner Sklar recalled that a proposal was made at the Treasure Island meeting to allow two Commissioners by written request to place an item on the next meeting’s agenda. Vice President Normandy agreed that was what had been discussed. The Deputy City Attorney noted that this kind of communication between commissioners outside of meetings could constitute an “ad seriatim” meeting and that could invalidate any subsequent action taken. There followed a discussion of how items for the agenda could be proposed during other commission business. Ms. Ambrose then noted this pre-supposed that the item was proposed over the objection of the Commission President and the General Manager but could be approved by a majority vote. Commissioner Sklar noted that his suggestion was intended simply to be a matter of a request that would save time not a means of doing something over the objection of the President and General Manager as this was not in keeping with the collegial nature of the Commission. Given the limitations imposed by law, Commissioner Sklar withdrew his proposal.

Moved by Commissioner Sklar, seconded by Commissioner Crowley that the revision to Rule 11 be adopted; passed (4-0 Caen, Crowley, Normandy, Sklar) unanimously.

Next Ms. Ambrose described proposed Commission Protocols to address areas of concern previously raised. Ms. Ambrose presented for discussion a draft of a proposed Rule 23 that could restate the various applicable laws and City Charter requirements as well as highlighting the requirements of the California Fair Political Practices Act and the Sunshine Ordinance to provide a requirement that new Commissioners receive appropriate training in the laws and rules governing their activities within 15 days of their assumption of office. Vice President Normandy found that the suggested draft language addressed the concerns expressed at the June 10th meeting, especially in light of the changes mandated by the adoption of Proposition E. It was the consensus of the Commission that this section of the proposed new rule be carried forward for action at the July 8th meeting.

Next Ms. Ambrose turned to the topic of situations where a Commissioner might be contacted regarding a matter by someone doing business with the PUC as was also discussed extensively at the June 10th meeting. To address this situation Ms. Ambrose proposed a rule requiring all such contacts be formally reported to the General Manager. Commissioner Sklar noted that the Commission had informally adopted reporting such contacts as policy in October 2004. Commissioner Sklar noted the current practice was that Commissioners inform the Commission Secretary who recorded the information that they had been contacted. Commission Sklar felt that this policy seemed to work without risk from a more rigid process that could unintentionally be violated. President Caen and Vice President Normandy agreed that this topic and the current policy were best addressed in training. The Commission Vice President observed that the current approach seemed to be working well.

Ms. Ambrose next addressed the Commissioners’ request concerning a formal rule that required an explicit disclaimer be stated by any Commissioner when speaking to the press or making a statement concerning Commission activities that their words solely reflected their personal views and not the position of the Commission. Commissioner Sklar noted that one could not control what the press reported and that in his view Commissioners should so advise the media that they were offering their own personal views but not be held accountable for what the media decided to print. Vice President Normandy suggested that these specific points be incorporated into the formal training required for the Commissioners. President Caen observed that it behooved Commissioners to consider very carefully before they engaged in discussions of matter before the Commission with the press.

11. Discussion and possible action to authorize the General Manager of the San Francisco Public Utilities Commission to support the Board of Supervisors’ ordinances on solar incentives and establish a program that will implement the solar incentive programs and eligibility rules to encourage San Francisco residential, commercial, industrial, and non-profit property owners to install photovoltaic systems within San Francisco.

Deputy City Attorney Ambrose advised that it would again be necessary due to a potential conflict of interest as a majority of the Commissioners might choose to participate in this program that a Declaration of Necessity be invoked. Under this process, Ms. Ambrose noted the Commission Secretary draws by lot a Commissioner to be excused from voting. Commissioner Sklar’s name was chosen and he briefly left the meeting to allow for the vote on this matter to proceed.

Assistant General Manager for Power Barbara Hale reported on the changes made by the Board of Supervisors and the Mayor since the Commission adopted its solar incentive program in February. Ms. Hale reported there were now to be five kinds of incentive payments, as well as changes to the classification of what was a San Francisco City Installer, requiring its principal office be in the City, as well as expanded eligibility for the environmental justice incentives created by the Commission to new several categories of participants, and a new workforce development incentive to insure that a pool of green job opportunities was created to support the overall program.

In addition, Ms. Hale reported that a $5,000 low income payment was also authorized in addition to the other incentives available. The goal being to make installation of solar as affordable and within reach of as many San Franciscans as the Program could accommodate. Ms. Hale also reported that in addition a one year pilot program was created, focusing on non-profits without a cap and non-profit multi-unit residential facilities would eligible to participate at a low per kilowatt hour rate. Ms. Hale reported that staff was aggressively pushing forward drafting one page applications for each of these incentive opportunities and hoped to have the Go Solar San Francisco Program underway after July 1st.

In response to questions by President Caen, Ms. Hale explained that special incentives for non-profits were for one year but the other participants were at this point intended to be a long-term program. Mr. Harrington noted this meant that the Program would come to the Commission each year for appropriation.

Moved by Vice President Normandy, seconded by Commissioner Crowley to adopt the following resolution; passed
(3-0 Caen Crowley, Normandy) unanimously. Commissioner Sklar was recused.

Item 12 was continued to the call of the Chair.

12. Discussion and possible action to approve the Water System Improvement Project (WSIP)-funded Alameda Siphon No. 4 Project (Project) (CUW35902); adopt the Final Mitigated Negative Declaration (MND) for the project, the required California Environmental Quality Act (CEQA) Findings, and the Mitigation Monitoring and Reporting Program (MMRP).  (Torrey)

REAL PROPERTY TRANSACTIONS

Item 13 was taken out of order (see page fifteen for report on this item).

13. Discussion and possible action to authorize the General Manager of Public Utilities to execute on behalf of the City and County of San Francisco a lease with MetroPCS California LLC to use approximately 200 square feet on the top floor and to place up to nine antennas on the roof top of the Dryer Building, No. 800, at 1701 Jerrold Avenue, at the Southeast Treatment Plant in San Francisco, CA to install a cellular communications site.

Award

14. Discussion and possible action to approve the plans and specifications and award Enterprise-funded Contract No. HH-929, Job Order Contract, Lighting Efficiency and Upgrade Services for San Francisco/Peninsula Areas (C-10 License), for a not-to-exceed amount of $1 million and with a duration of two years, to the lowest, qualified, responsible and responsive bidder, Enlight Energy Efficient Lighting, Inc.; provided, however the aforesaid amount shall be adjusted during performance or upon completion of the Work in accordance with the Contract Documents.

Moved by Vice President Normandy, seconded by Commissioner Crowley to adopt the following resolution; passed
(4-0 Caen Crowley, Normandy, Sklar) unanimously.  

Close
15. Discussion and possible action to accept work performed by Pacific States Environmental Contractors, Inc. for Water Enterprise Revenue funded project Contract No. WD-2464 Baylands Recovery Program: Phase 2 Salt Pond and Levee Remedial Action, approve Modification No. 2 (Final), decreasing the contract by $14,250.00 for a total contract amount of $7,801,176.21 and authorize final payment, in the amount of $25,000 to the lowest, qualified responsible and responsive bidder, Pacific States Environmental Contractors, Inc.

Motion by Commissioner Sklar, seconded by Commissioner Crowley to adopt the following resolution; passed (4-0 Caen, Crowley, Normandy, Sklar) unanimously.

PROFESSIONAL SERVICE CONTRACTS

Award

16. Discussion and possible action to approve Amendment No. 2 to Water Enterprise Water System Improvement Program-funded Agreement No. CS-741, Program Environmental Impact Report, with ESA+Orion Joint Venture to conduct additional technical services required to complete the environmental review process, and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement by $1,276,000, for a total agreement amount of $7,366,000, and with a time extension of 212 consecutive calendar days, for a total agreement duration of 1949 consecutive calendar days.

Moved by Commissioner Sklar, seconded by Vice President Normandy to adopt the following resolution; passed (4-0 Caen Crowley, Normandy, Sklar) unanimously.

Items 17 and 18 were taken up together.

17. Discussion and possible action to approve Amendment No. 1 to Power Enterprise Scheduling Coordinator Services, Agreement No. CS-816, Scheduling Coordinator Services, CCSF Hydroelectric Generation with APX, Inc. (APX) to extend the existing contract for no longer than four (4) months, and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement by $600,000, for a total agreement amount of $2,631,000, and with a time extension of 122 consecutive calendar days, for a total agreement duration of 853 consecutive calendar days.

18. Discussion and possible action to approve the selection of APX, Inc. (APX); award a professional services agreement to provide scheduling coordinator services for Agreement No. CS-903, Scheduling Coordinator, CCSF Hydroelectric Generation; and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute a professional services agreement with APX for an amount not to exceed $7,500,000, and with a duration of no more than 5 years and which expires on June 30, 2013. (Hale)

In response to questions by Commissioner Sklar, AGM Hale confirmed that staff were pleased with the performance of this contractor during the previous two years and wished after a competitive process to continue using their services.

Moved by Commissioner Sklar, seconded by Commissioner Crowley to adopt items 17 and 18; passed (4-0 Caen, Crowley, Normandy, Sklar) unanimously.

19. Discussion and possible action to approve the selection of Jacobs Engineering Group; award Water Enterprise Water System Improvement Program-funded Agreement No. CS-913, Bay Tunnel Construction Management Services, to provide construction management services; and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate a professional services agreement with Jacobs Engineering for an amount not to exceed $18,000,000, and with a duration of up to 65 months, or, in the event negotiations are not successful or City requirements are not satisfied, to negotiate a professional services agreement with the next highest ranked proposer; and authorize the General Manager to execute the agreement, subject to Board of Supervisors' approval of the agreement, pursuant to San Francisco Charter section 9.118.

Assistant General Manager Harlan Kelly stated that this agreement carried forward staff’s ongoing efforts to make this selection process more standardized. Mr. Kelly noted inclusion, as requested by the Commission, of the information concerning the multipliers used in this very competitive process. In response to a question by Commissioner Sklar, Mr. Kelly explained how the staff had contacted each of the references using a standardized script that was then incorporated by the raters allocating up to five points. Commissioner Sklar suggested that the reference check phase be deferred until the top two contenders had been identified. Mr. Harrington noted that the City rules preferred for this scoring process be as objective as possible by using pass fail check lists. Commissioner Sklar noted unfortunately the loss of this kind of subjective judgments in doing evaluations could be detrimental to getting the best results. Ms. Ambrose noted that Vice President Normandy’s language limiting approval to the specified pre-construction activities not prejudicing final approval of the Bay Tunnel ahead of the environmental process had been specifically included in this resolution.

Moved by Commissioner Sklar, seconded by Vice President Normandy to approve the following resolution; passed (4-0 Caen, Crowley, Normandy, Sklar) unanimously.

Item 20 was taken out of order (See page 13)

20. Discussion and possible action to approve the selection of Local Power and GES; award Community Choice Aggregation Agreement No. CS-920R, Monitoring and Advisory Services on behalf of the San Francisco Public Utilities Commission (SFPUC) for the Community Choice Aggregation (CCA) Program and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute professional services agreements with Local Power and GES for an amount not to exceed $1 million and duration to be determined. (Hale)

21. Discussion and possible action to approve the selection of Stantec, and Black and Veatch; award Water Enterprise Water Project-funded Agreement Nos. CS-923A and CS-923B, HHWP Power System Assessment and Upgrade Services, to assist the SFPUC with evaluation of HHWP facilities, including inspection, asset management and rehabilitation plans, and other related engineering technical support services; and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute professional services agreements with Stantec and Black and Veatch for an amount not to exceed $3,000,000, and with a duration of 36 months, or, in the event negotiations are not successful or City requirements are not satisfied, to negotiate and execute a professional services agreement with the next highest ranked proposer. In answer to a question by Commissioner Sklar, Assistant General Manager for Water Carlin agreed that this was a standard as needed contract. In answer to a question from President Caen, GM. Carlin indicated there would be no difficulty in separating the differing types of duties under this contract as there was enough work for everyone.

Moved by Commissioner Sklar, seconded by Commissioner Crowley to adopt the following resolution; passed (4-0 Caen, Crowley, Normandy, Sklar) unanimously.

Item 20 was taken up next.

20. Discussion and possible action to approve the selection of Local Power and GES; award Community Choice Aggregation Agreement No. CS-920R, Monitoring and Advisory Services on behalf of the San Francisco Public Utilities Commission (SFPUC) for the Community Choice Aggregation (CCA) Program and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute professional services agreements with Local Power and GES for an amount not to exceed $1 million and duration to be determined.

Commissioner Sklar reviewed where the Commission had been since Community Choice Aggregation (CCA) was last taken up by the Commission in November of 2006, noting that there were questions concerning whether there would be sufficient customers to justify going forward. Commissioner Sklar asked Ms. Hale to walk the Commissioners through what happened after a Request for Information and Comment was sent out. Ms. Hale noted only responses were received from those offering aggregation service focused on addressing program risk elements which were then reported to the Commission by memo in January 2008.

Ms. Hale reported the next step was to go out with a program description based on the previous input and going out to the community to obtain additional input. Commissioner Sklar expressed concern that the SFPUC would continue moving forward with more contracts and expenditures without having first determining what the real potential of this process of the city acting as buyer of power for an as yet undetermined number of potential customers really was. Commissioner Sklar emphasized that it was still necessary to evaluate before the PUC had sufficient information to take steps to implement. Commissioner Sklar expressed concern that issues of acquiring real estate and issuing bonds were necessary until a decision had been made to go forward. Commissioner Sklar expressed willingness to continue to fund efforts to find out if there was a real potential to have customers.

In response to a question by Mr. Harrington, Ms. Hale explained that this contract proposed to provide the means to get the answers to these questions and complete the evaluation process so that the Commission could then act on the best information available. Ms. Hale emphasized that only evaluative work could specifically be tasked to these contractors with no action toward implementation until the Commission had reviewed the information received and made its decision.

Commissioner Sklar expressed a wish that approval of this process be conditional allowing only the evaluation process to go forward. Mr. Harrington and Ms. Hale discussed how each of the proposed topics address in this proposed resolution referred only to study of how these factors came into play in determining the possible next steps. Vice President Normandy requested that the Deputy City Attorney divide the priorities identified in bullets 1, 2, 3 on page 1 and the last bullet on page 2 and then come back to address the remaining seven bullets on page 2 in this resolution to make this a two phase process to allow the evaluation process to go forward. President Caen noted that it seemed that the Commission still was not being given the necessary information it had requested on this topic. Commissioner Sklar noted that he would be happy to go to LAFCO to explain that it was necessary to determine this basic information before going further on with this project. Commissioner Sklar noted that no one in the business world would go forward on a program like this without a definitive study. Mr. Harrington suggested that the item be passed as drafted with it clearly stated in the minutes that it was the Commissioner’s explicit wish that this process go forward solely to determine what exactly this program would be and will there will be a customer base for this program as so defined.

Vice President Normandy agreed that this resolution could be approved with the clear understanding the Commission’s direction was approve this as a two phase evaluate and then implement basis. Noting that the entire world of power supply had changed since this issue was first raised, then Commissioner Sklar offered this specific amended language to be included in the resolution, “Limit the activities of the consultant hired under this resolution to refining and defining using the RFI and our own staff input what would be the program we would offer to potential customers under the Community Choice Aggregation Program; and then conducting a professional market study to determine if the critical mass necessary to make this a program we adopt and implement for the people of San Francisco makes sense or not.”

Ms. Ambrose suggested also amending the resolved clause to direct the General Manager to allocate the tasks as indicated by intent of the Commissioners.

Public comment:

Mr. Eric Brooks, Community Choice Energy Coalition, disagreed with the proposed approach to community choice aggregation, noting that this was a very complex interconnected model with a great variety of components including wind, solar, energy efficiencies, and other alternative resources and that by limiting the topics to overview you could box yourself into a restrictive situation that would not allow a fair determination. Mr. Brooks also urged that the Commission take action to recall the peaker project back to the Commission so that a more educated decision could be made on what was best for the City.

Commissioner Sklar agreed gathering whatever information that was necessary to make a fair determination of the potential for CCA was certainly allowed under the resolution as revised and urged Mr. Brooks to return to the meeting on July 8th for the next steps in the Combustion Turbines (CT’s) Project.

Moved by Commissioner Sklar, seconded by Vice President Normandy as amended to adopt the resolution; passed
(4-0 Caen Crowley, Normandy, Sklar) unanimously.

Item 13 was then taken up next.

13. Discussion and possible action to authorize the General Manager of Public Utilities to execute on behalf of the City and County of San Francisco a lease with MetroPCS California LLC to use approximately 200 square feet on the top floor and to place up to nine antennas on the roof top of the Dryer Building, No. 800, at 1701 Jerrold Avenue, at the Southeast Treatment Plant in San Francisco, CA to install a cellular communications site.

Public comment:

Ms. Espanola Jackson, Bayview Hunters’ Point, strongly objected to the lack of community input into a decision to locate additional cell antennas in her already over burdened neighborhood expressing concern about the potential for addition health risks and that no additional antennas be placed at this site due to unknown health risks as well as a great risk of a methane explosion without a full environmental review and meetings in the community.

Mr. M. J. Abdulari, a 10 year Bayview Hunter’s Point resident, asked that the Commissioners consider the risks of this technology and noted that previously DDT and Agent Orange was deemed safe and then later found to be a disaster for health so when making this decision consider the risk to peoples’ health, noting reports of head cancers caused by cell phone use.

Mr. Eric Brooks, San Francisco Green Party, echoed the previous speakers urging the Commissioners to impose a higher bar in continuing contracts and before adding additional sites and noting that there was new data concerning the health risks being reported all the time.

SFPUC Real Estate Property Officer Joseph Tham explained that what was proposed was replacement of six existing cell antennas rather than nine as was mistakenly indicated in the agenda item. Mr. Tham reported that these antennas had been in place since 2001 and staff did not envision the addition of new antennas and that this was just a five year renewal of the lease. In response to a question by Vice President Normandy, Mr. Tham reported that the vendors would be required to obtain all of the required permits and environmental reviews as a condition of approval. The City Attorney noted that any new antennas would require review

President Caen left the meeting at 12:55 P.M.

Vice President Normandy assumed the Chair.

Motion by Commissioner Sklar, seconded by Commissioner Crowley to adopt the item with a provision that the SFPUC staff gather additional information about potential risks before bringing additional sites or cellular phone related items to the Commission for information purposes only; passed (3-0 Crowley, Normandy, Sklar) unanimously.

Vice President Normandy announced that due to lack of time before the meeting’s quorum was lost; all of the Closed Session items were continued to the July 8th regular meeting.

CLOSED SESSION

All Closed Session items will be continued to the next Regular meeting of July 8, 2008.

22. Public comments on matters to be discussed in Closed Session.

No comments were offer on the closed session items.

23. Motion on whether to assert the attorney-client privilege regarding the matters listed below as Conference with Legal Counsel.

THE PUBLIC UTILITIES COMMISSION WILL GO INTO CLOSED SESSION TO DISCUSS THE FOLLOWING ITEMS:

24. Threat to Public Services or Facilities – Pursuant to California Government Code Section 54957 and San Francisco Administrative Code Section 67.10(a). (Ambrose)

Consultation with:
Agency Chief of Security concerning security of SFPUC Water and Power Systems.

25. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(b) (1) and San Francisco Administrative Code Section 67.10(d) (2).

Anticipated Litigation:
CSAA as subrogee for Catherine Groat, City Attorney File No. 08-003191, Filed May 19, 2007.

26. Pursuant to Government Code Section 54957 and San Francisco Administrative Code section 67.10(b): Public Employee Position of Assistant General Manager, San Francisco Public Utilities Commission, Consideration and possible action on terms of employment, as authorized pursuant to San Francisco Charter Section 8B 126(b). (Ambrose)

There being no further business to discuss the meeting was adjourned at 1:08 P.M

Michael Housh
Secretary