Published By: Commission
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MINUTES COMMISSIONERS |
DEPARTMENTS AND ENTERPRISES Water Enterprise Gavin Newsom Michael Housh |
Note: These are the final draft minutes of the July 22, 2008 Regular meeting of the San Francisco Public Utilities Commission. Proposition E, enacted by the voters in June 2008, amended Charter Section 4.112 to provide that the terms of the then existing Commissioners expired effective August 1, 2008. These minutes were not adopted by the successor Commission for lack of a quorum of members who could attest to their accuracy. The Commission Secretary has made a good faith effort to accurately produce the minutes of that meeting.
ORDER OF BUSINESS:
1. Call to Order: 1:45 P.M.
2. Roll Call: Present – Vice President E. Dennis Normandy, Commissioner Richard Sklar, Commissioner David Hochschild, Commissioner F.X. Crowley
Excused: President Ann Moller Caen
3. Approval of Minutes
Moved by Commissioner Crowley, seconded by Commissioner Hochschild, to adopt the Minutes of the July 8, 2008, Regular Meeting; approved (4-0, Normandy, Sklar, Hochschild and Crowley) unanimously.
4. Public Comments
Mr. Francesco DaCosta, Environmental Justice Advocate, commented that this was an important historic meeting and that he commended the Commissioners for fulfilling their obligation to make decisions based on the facts in the service of the best interests of the community. Mr. DaCosta continued that the issues before the Commission were serious matters of water and energy and that the Commissioners were choosing to do the right thing. Mr. DaCosta expressed hope that the new General Manager would continue to move the agency forward in this spirit. Mr. DaCosta noted that he took money from no one and was free to speak what be believed to be right.
Mrs. Espanola Jackson, resident of Bayview Hunters Point, thanked Commissioner Hochschild for his consistent diligent analysis of issues and support for her community during his service on the Commission. Mrs. Jackson remarked that she was proud to say she was free, did not take money from anyone or pay others to attend Commission meetings, was not in anybody’s pocket, and that the only interest she served was for the betterment of her community.
5. Communications Vice President Normandy invoked privilege of the Chair to make his farewell statement as follows:
“In January this year, I was elected to the Vice Presidency of this Commission. The expected course of events was for me to succeed Ann Caen to the Presidency. 2009 would have marked my fifth term as President of the SFPUC, and my sixteenth and final year on the job.
Proposition E’s passage in March hastened the process somewhat. I retire on August 1 instead. I am not one to “stay too long at the fair”, nor do I want to be caught in the middle of a political tug-of-war that could put at risk my many years of friendly relations with both the Mayor and the Board of Supervisors.
Mayor Newsom has graciously asked me to serve on another Commission. I have agreed to do so. His office will make the announcement as it sees fit.
My tenure on the SFPUC has been a wonderful, joyous ride. My gratitude for such a satisfying experience extends to every Commissioner with whom I have served, to every staff member at every level of our three enterprises, and to the myriad stakeholders whose interests I have tried to protect and enhance.
I had served on the Library Commission under then-Mayors Dianne Feinstein and Art Agnos. I moved to the SFPUC under Mayor Frank Jordan, and have stayed through the administrations of Mayors Willie Brown and Gavin Newsom.
Early in my tenure, when MUNI was spun off into a separate Authority, I elected to stay with the water agency. I felt then as I still do that water and hydroelectric (and other sources of renewable) power hold far greater importance for San Francisco and beyond. I have never regretted that decision.
I cherish many memories of my stay at the SFPUC.
I remember pushing for the Water Reliability Study that marked the genesis of what is today our $4.3 billion water system retrofit and upgrade.
I remember conscientiously leading the welcome of the Department of Public Works waste water operations into the SFPUC. The seamless integration, both physically and psychologically, of these enterprises has resulted in system-wide support of our proposed $4 billion retrofit of the sewer system.
I remember reaching out to residents of Sunol who had felt the sting of bureaucratic indifference and occasional hostility in their efforts to protect their small town from the effects of quarrying. Partnership with these stakeholders resulted in restoration of the historic Sunol Water Temple and substantive efforts to protect the town’s health and well-being.
I remember advocates for the immuno-compromised communities and the cattle industry almost literally at each other’s throats over the issue of cryptosporidium contamination in our watersheds. By keeping everyone at the negotiation table and insisting on science-based rather than political solutions, we forged a best-management-practices system that has become an international model.
I remember insisting on the creation of an institution-wide employee recognition program, even though early efforts had to be funded by private contributions from the Commissioners.
I remember espousing proper “branding” of the agency to differentiate us from the California PUC, the regulatory body totally unlike our enterprise. Today we think nothing of saying “SFPUC” and almost take for granted the logo that backs our brand. This effort also led to cultivation of a customer-service perspective and the establishment of a full-fledged communications group.
I remember teaming up with community groups to revive a dying Lake Merced, and to open a Bay Area Ridge Trail link within our Crystal Springs watershed.
I remember initiating the inclusion of the BAWSCA General Manager’s comments as part of our regular commission meeting agenda, and making sure that at least one commission meeting each year is held at Bayview Hunter’s Point.
I remember leading the charge to transform our organizational mindset and culture to that of a true business enterprise rather than just a municipal service. Now our Commission operates as a de facto Board of Directors, overseeing the General Manager who serves as President and CEO charged with performance accountability and bottom-line profitability.
My list of memories is long.
In my years with you, I have tried to be fair and open to all, hard on the issues but soft on the people, generous with public praise of staff but quietly private with criticism.
The SFPUC faces tremendous challenges. I am concerned that the work ahead will be made doubly difficult by volatile politics external to the agency. The fact that I am, and will continue to be, friendly and respectful to all parties does not make the situation, in my view, any less wearisome and troubling.
The shining lights in all this are the gold-standard quality of our SFPUC staff and the caliber of the Commissioners charged with new leadership. I wish everyone the very best.”
Speaking next Commissioner Sklar said that Vice President Normandy had served this City with dedication, intelligence and integrity. Commissioner Sklar then observed that perhaps this was my last appearance here. Noting there is no question that getting reappointment from the Mayor will engender a battle at the Board of Supervisors as the one I went through earlier this year, and unless something tells me I'm wrong one he was not anxious to undertake again. Commissioner Sklar remarked that, it was sad that the running of this business, as Dennis has said, had been distorted by political battles. Commissioner Sklar observed, if I go down, I hate to think that others will have to suffer; this is because of a crusade we have been on for two years to avoid the City making a mistake regarding the power industry.
During the same week that former Vice President Al Gore said let us convert ourselves from fossil fuel and move toward renewable power, it is appropriate we will put to bed San Francisco’s aborted attempt to build a fossil fuel plant that was not needed, that would be a disgrace and continue to pollute for years ahead. Commissioner Sklar noted that, if I will go down, I’m happy that it is in the defense of a better path for the City going forward. It would be an embarrassment to do otherwise and this seat is not worth the price of having to sell out on that. I will not now.
Commission Sklar continued, it is very distressing to me that the Board of Supervisors, noted that he has dealt with them for 40 years since he ran this institution starting in 1979, attempts by intimidation and threat to manipulate policy issues. It is depressing to me, and I don't know whether it is a matter of inner family politics, but there is no excuse for it. Like Commissioner Normandy, Commissioner Sklar pointed out, I go back to 1979 in the seat Ed Harrington occupies when MUNI was within the SFPUC and Wastewater was not. In the last four years at the Mayor's request it has been the four years then and the four years now has been a glorious experience. This City is one I lived my entire life and while I have energy and can kick and scream I will not walk away. My voice will not be silenced by absence of this microphone and this chair. That would be hardly what my family would expect and what my friends and enemies look forward to.
I, too, along with this Commission and the others who served before I wish to Ed the best of luck in the toughest job in the City and wish this Commission well. While I can, I will rely on narrow and wide issues here, but it will be from a different post. I want to thank my fellow Commissioners. I want to thank the staff members who operated consistent with our wishes here, and sometimes those who have not. Again, thank you all, it has been a joy serving with you and good luck as we go forward.
Commissioner Hochschild observed, I don't think the word silence and Commissioner Sklar are in the same sentence together. Commissioner Hochschild said it has been a pleasure to serve with you, the staff as well as all the folks who live in San Francisco and take the time on their own dime to share their views because they care about the future of the City. I think that is how democracy is supposed to work.
Commissioner Hochschild continued I want to share a few thoughts. All of us know we have been living in cynical times the last eight years, and the vision that I have for San Francisco is the hand around the candle of hope protecting that flame. When we have an opportunity as I believe we do with the new administration, I’m a supporter of Senator Obama and I believe he will be the next President and then I think the candle of hope can start wildfires of good ideas. I'm excited for that opportunity and the megaphone we have through the Mayor and Speaker Pelosi and other ways we have to get good ideas spread in the Country. For me, that's what the opportunity of this Commission presents. It has been an honor to serve and a great education. I have a few comments for the Power side. I wanted to thank you for the opportunity to work with you. It was a difficult decision for me at end of June when I made the decision to tell the Mayor it was best if I not be reappointed but think it is the right thing. Thank you all.
Commissioner Crowley concluded commenting; Chairman, fellow Commissioners, Ed, Noreen, and those of you that attend these meetings. I have been lucky to serve on the Commission with these gentlemen. When I was appointed by the Mayor they called to congratulate me. I'm from the labor sector, and it is important to me to carefully study the dynamics of the contracts we approve and be certain that the citizen of the city get a fair shake for their dollars. I want to go on record that I have learned a great deal in a short period of time. This, too, Commissioner Crowley noted, may be my last meeting given the dynamics at the Board. I did not want it to go unrepeated that to my fellow colleagues, I owe a debt of gratitude. I thank you all, and I will continue to count on you should I be lucky enough to go forward, thank you.
6. Commission Business
There was no discussion of any new business items.
7. Report of the General Manager
a) Water System Improvement Program (WSIP)
WSIP Manager Julie Labonte presented an update of recent activities on the Water System Improvement Program highlighting the completion of the New Crystal Springs Bypass Project as being the first such brought to this state of completion. Ms. Labonte then discussed recent project management contracting activities and ongoing work on both the regional and local projects.
b) Capital Programs
General Manager Ed Harrington reported Assistant General Manager Kelly had no Capital Programs matters to report.
c) 525 Golden Gate Avenue Project Update
Mr. Harrington informed Commissioners that this project had been placed on hold given the results of a review of its projected costs conducted by Deputy General Manager Tony Irons in response to Commissioner Sklar’s request. Mr. Harrington reported that as a result of this review, it was determined that the per square foot of the proposed 525 Golden Gate building, even with the elimination of several planned elements of the design as had been previously discussed before the Commission, remained at roughly $900 per square foot while the going commercial rate for office buildings sufficient to meet the SFPUC’s needs was $300 per square foot or less. Mr. Harrington recalled the justifying rationale underlying greater expected costs of the SFPUC proposal to construct a model green building as its headquarters then discussed the realities of justifying such an expenditure, even though it was absolutely clear that ratepayers would not fund it, to customers during a period when rates would have to be increased to strengthen, repair, maintain, and operate our water supply system.
8. Bay Area Water Supply & Conservation Agency (BAWSCA) General Manager’s Report.
General Manager Art Jensen addressed each Commissioner by name honoring Dennis for your years of service and saying the word that came to mind when thinking about him is inclusion. Mr. Jensen observed Vice President Normandy’s reference to putting BAWSCA on the Commission meeting agenda and commented that there had been over time frequent occasion when Vice President Normandy was seen as the oil that calmed the water in various venues and you have done that with dignity. Mr. Jensen noted President Caen provided support over time, was capable and bright and made a great contribution to this organization expressing hope she gets to continue.
Turning next to Commissioner Crowley, Mr. Jensen commented that while he had not had the opportunity to become well acquainted, he knew that Commissioner Crowley had been a long time at the table and hoped for the sake of continuity that both he and President Caen would be able to continue on.
Next to Commissioner Hochschild, Mr. Jensen said, it had been too short and that he looked forward, based on exchange of the last meeting, with the hope of being able to work with you in the future maybe in another way.
Saving Commissioner Sklar for last, Mr. Jensen noted that he had began working for SFPUC after Commissioner Sklar was no longer General Manager but recalled there were a lot of Dick Sklar stories. Mr. Jensen noted at that time as a young manager going to a lot of management training seminars and there was discussion of the differing roles played by maintenance managers and revolutionary managers, noting Commissioner Sklar had never been considered a maintenance manager, and that was praise. Mr. Jensen remarked he thought there was a time and place for all kinds of managers and that this had been a good time for Commissioner Sklar to rejoin the Commission and bring his expertise to bear on the programs, and Mr. Jensen was glad that he had.
Asking what was next; Mr. Jensen recalled listing key decisions coming before the SFPUC, whoever got to sit there, and expressed great concerns about the future. Mr. Jensen observed that the SFPUC would fortunately have continuity through the General Manager, and that BAWSCA would continue to see the SFPUC as the agent of the City and County of San Francisco. Mr. Jensen commented that BAWSCA did not look upon any failing of the SFPUC as a failing of individuals that are here now or here in the future but as a failure on the part of San Francisco.
Mr. Jensen suggested that if San Francisco cannot provide the continuity and provide reliable service to the customers, it will not be anything that these Commissioners left behind, but the good news was the SFPUC has Ed Harrington and a staff with a great deal of strength. Mr. Jensen recalled hearing Mr. Harrington recently address the Citizen’s Advisory Committee and was impressed with the polish he put on the situation suggesting that basically, change was good, like in the presidential election, change was good. Mr. Jensen proposed to try hard to keep that in mind that this change would be good, but noted it was change. Mr. Jensen recalled after he had left places of employment one might wake up the next day thinking, maybe they will call me and ask me about something, but they never do. Mr. Jensen concluded by remarking you can count on BAWSCA to continue to do what was right for the customers and that it had been a pleasure to work with the Commissioners.
CONSENT CALENDAR
9. Moved by Commissioner Hochschild, seconded by Commissioner Sklar, to adopt items (a through f) listed under the Consent Calendar; passed (4-0 Normandy, Sklar, Hochschild and Crowley) unanimously.
a) Resolution No. 08-0127: Accept work performed for Wastewater Enterprise, Repair and Replacement (R&R) Program-funded Contract No. WW-395, Southeast Water Pollution Control Plant Building 850 HVAC and Office Improvements, by LC General Engineering & Construction, Inc, approve Modification No. 3 (Final) increasing the contract by $265,010.72, for a total contract amount of $1,321,546.72, (and with a time extension of 130 consecutive calendar days for a total contract duration of 359 consecutive calendar days;) and authorize final payment, in the amount of $365,583.25, to the contractor.
b) Resolution No. 08-0128:
Approve the plans and specifications and award Wastewater Enterprise 5-Year CIP Program-funded Contract No. WW-463, SEWPCP Gas Handling Improvements – Phase II, in the amount of $2,247,000, to the qualified, responsible and responsive sole bidder, Cal State Constructors.c) Resolution No. 08-0129:
Approve the plans and specifications and award Wastewater Enterprise Repair and Replacement (R&R) Program-funded Contract No. WW-473, Sanchez/Noe/Ford Streets Sewer Replacement, in the amount of $1,780,173, to the lowest, qualified, responsible and responsive bidder, M Squared Construction.d) Resolution No. 08-0130:
Authorize the General Manager of the San Francisco Public Utilities Commission to request permission from the Board of Supervisors to accept and expend grant funds totaling $175,000 from the West Coast Collaborative, as administered by the United States Environmental Protection Agency; and to execute all required agreements.e) Resolution No. 08-0131:
Authorize the General Manager of the San Francisco Public Utilities Commission to enter into a Fiscal Agent Agreement between the Metropolitan Water District of Southern California and other members of the Water Utility Climate Alliance (WUCA).f) Resolution No. 08-0132:
Authorize the General Manager to enter into a construction contract with T-Mobile in an amount of $1,120,000, with a duration of 18 months, subject to the Board of Supervisors’ adoption of an ordinance exempting this project from the competitive bid requirements.
REGULAR BUSINESS
At the request of Commissioner Sklar Agenda Item 19 was taken up next out of order.
19. Discussion and possible action to rescind SFPUC Resolutions No. 07-0137 and No. 07-0188 with respect to the proposed combustion turbine projects and related facilities. (Sklar)
Commissioner Sklar proposed an amendment to address concerns that the City be encouraged to maximize the return on the sale of the turbines granted to the City under the terms of the settlement agreement in the Williams case.
“FURTHER RESOLVED, that the Commission recommends to the Mayor and Board of Supervisors that since the City is ceasing development of the in-city CT Project and the SFO CT project, that they take any actions necessary to initiate sale of the Combustion Turbine Generators that were received by the City pursuant to Ordinance 0001-03 (the Williams Settlement), and its related Implementation Agreement so as to optimize the portion of the sale proceeds accruing to the City.”
A motion to amend by Commissioner Sklar, seconded by Vice President Normandy, was accepted without objection.
Commissioner Sklar argued that funds received when the combustion turbine units, which are likely to bring in $72 million dollars, were sold the proceeds ought to be split in a more generous way for the City. Commissioner Sklar observed that the California Department of Water Resources would most likely be relieved because it will allow them to get out of the power contracting business earlier. Commissioner Sklar commented they have wanted to get out of it and that this project was the last vestige of a stupid agreement made with Governor Davis, suggesting perhaps they may be generous and perhaps the Attorney General might also be so inclined. Commissioner Sklar urged that the Commission try to get this process under way and maximize the City’s benefit.
Commissioner Sklar began by reporting a proposal has come forth from the Mayor who has sent a resolution to the Board of Supervisors suggesting the retrofitting of units 4, 5 and 6 at the existing Mirant site as a better path to a fossil free generating City. Commissioner Sklar pointed out that there was no resolution before the Commission and the Commissioners were not here to write resolutions supporting resolutions but he thought this approach was a good and positive step and something the Commissioners should all support. Commissioner Sklar emphasized that he wanted to make clear in response to arguments opposing this proposal that a number of things were true. Commissioner Sklar reported a set of terms had been worked out with Mirant that will, he thought, protect the City and help us get to our objective.
Commissioner Sklar noted that within the term sheet of agreement to be worked out with the City and Mirant are the following: as soon as the Run Must Run (RMR) if unit 3 is removed by California Independent System Operator (CAISO), which would occur when Transbay cable came in, with the retrofit package, that unit will be closed. Additionally, Commissioner Sklar reported that the units retrofitted will be run for reliability and emergency purposes only. Commissioner Sklar continued in the event the Run-Must-Run (RMR) was removed from units 4, 5 and 6, they would be removed at that point and Mirant will have recovered its one. Then Commissioner Sklar reported Unit 3 would close when Transbay Transmission Cable came in along with the retrofit program.
Commissioner Sklar next pointed out that the retrofit would run for reliability purposes which meant they would be cleaner than if the SFPUC had done the full CT’s Project and thirdly, even these units will eventually close. Commissioner Sklar reported it was his understanding that CAISO, Mirant and Pacific, Gas, & Electric Company (PG&E) hoped to have their agreement in place within 4-6 weeks. There would be a companion agreement between Mirant and the City to embody the commitment with its terms negotiated by the General Manager and SFPUC Project Manager Mike Martin to embody an agreement that get us all the protection the Commissioners wanted. So, within that context Commissioner Sklar stated that he supported the proposed resolution, which in effect was tying a cherry on the top of the cake on the end of the CT’s Project as a way forward and move ahead cleanly on what Commissioner Sklar believed would be a better solution for the City.
Commissioner Sklar additionally observed in regard of fairness and to make sure we had a chance to address every issue involved, Commissioner Sklar asked if the General Manager and any member of staff cared to address the issue as to whether we have true assurance upon the rescinding of this resolution and the possible sale of the peakers that we will have a some sort of strength and a guarantee from Pacific, Gas, & Electric Company (PG&E) and Mirant that they will dissolve their operation?
General Manager Harrington noted, as Commissioner Sklar had mentioned, there were agreements to be worked out. The CAISO agreement had a Run-Must-Run (RMR) status on Mirant still in the works and there was additional work to be done. The General Manager observed that the letter of July 18th indicated there was nothing we saw that makes this unattainable. Mr. Harrington said staff had faith it would go forward in that way but it was not signed, sealed and delivered.
Commissioner Sklar noted that it might be useful to get in the record what Mr. Harrington said last time and he and Assistant General Manager of Power Ms. Hale confirmed that this retrofit solution even when they are running before they are totally put to bed, based on the comparison with the total pollution alternative are a cleaner alternative on the respective.
Mr. Harrington responded that as the letter in the attachment indicated, given the expected run time, which would be more for the City Combustion Turbine’s (CT’s) proposal because it would be used not just for Run-Must-Run (RNR) but also when it was economically beneficial to run the City would run the peekers more often in our proposal and therefore they would have been more polluting. Commissioner Sklar noted Mr. Harrington had expressed the facts of this matter exactly and precisely correctly.
Commissioner Crowley observed he was a bit uncomfortable not having the loose ends tied up. Acknowledging this was the Commission's last meeting and given the efforts made by those who spent years on this, he remained uncomfortable with going forward.
Commissioner Hochschild began by noting good news that when he was not serving as a Commissioner, he was working for a company in Silicon Valley, where 80 people were doing solar research and development. Commissioner Hochschild noted there were 50 companies in the Bay area that were working to bring the solar future and make it happen. Commissioner Hochschild said, he could say from working with the researchers that what was coming to the market was incredible. The advances these researchers were making in solar and renewable technologies would lead to a hundred percent clean energy production, and that was where SFPUC had to go. Commissioner Hochschild thought the question was what to do in the interim. This was, Commissioner Hochschild observed, what this choice represented.
Commissioner Hochschild recognized that good people who also care about the City have come to different conclusions. Commissioner Hochschild’s view was that we should not be investing in new fossil fuel plants period. Commissioner Hochschild pointed out that the retrofit option while imperfect was 75 percent less polluting and $200 million less expensive than the original proposal. Commissioner Hochschild affirmed that he supported the retro fit option. Commissioner Hochschild also found this experience to be a teachable moment for this agency because one thing he had noticed was both supporters and opponents had been disappointed with the SFPUC’s handling of this issue. Commissioner Hochschild commented it was important when this happens to learn and get better as we mature and grow to try to improve. From his perspective Commissioner Hochschild would have appreciated that the retrofit option would have been presented earlier to the Commission and been vetted out in concert earlier with the first proposal suggesting doing so might have yielded better decisions and achieved a buy in from all stakeholders. Commissioner Hochschild felt this was the right choice for the City. He recognized it was a big disappointment to others who have been working on this for a long time. Commissioner Hochschild was convinced this was a step that will not get us into the fossil fuel business, which is not a business we should be in.
Public Comment:
Mrs. Espanola Jackson, Bayview Hunters’ Point, said she knew that her community would thank the Commissioners, very, very much. Mrs. Jackson commented she was very saddened last week reporting that Supervisor Maxwell, District 10 Supervisor, and her Supervisor, put over discussion of the CT’s until the Board meeting of August 21st. Mrs. Jackson commented that the next day at a Board of Supervisors committee meeting which she attended Mrs. Jackson noted Supervisor Maxwell had acted to file the item. When Mrs. Jackson asked to explain, the Supervisor reportedly informed Mrs. Jackson that Supervisor Peskin had addressed this issue in an initiative so that the CT's were to be voted on in November. Mrs. Jackson reported that Supervisors Maxwell, Peskin, McGoldrick and Dufty had placed this matter before the voters and that this in her opinion represented an act of environmental racism. Mrs. Jackson commented because of the slick things going on in city politics no one thinks about the children, the seniorsand old folks in the Southeast sector of San Francisco, the most toxic area in this town. Mrs. Jackson thanked the Commissioners again, saying that she appreciated what they have done and that she would sleep better knowing she did not have to worry about a combustion turbine another day of her life.
Mr. Francesco DaCosta, said today was a day that would go down in history when decent honorable Commissioners did the right thing. Mr. DaCosta recalled for many, many years he had been involved with energy issues, noting he had participated for the Jefferson Martin Transmission Line discussion as stakeholder, had worked very hard to see that the internal transmission lines of this city were upgraded. Mr. DaCosta observed that we know that within 2 years we will have a transmission line in place that will bring in over 400 megawatts and so knowing that, Commissioners, you have done what was right. Mr. DaCosta commented that as one Commission had said in the year 2008 it was not a year for us to invest in fossil fuel.
Mr. DaCosta agreed this was not the year for us to pollute, not a time where we are going to spend over $300 million to put combustion turbines that will spew particulates 4.5 and pathogens into the area. Mr. DaCosta continued having said that, Commissioners, you have done the constituents of the Southeast sector good, and we shall go to the constituents and tell them individually about those Commissioners who studied the issues and who adjudicated rightly by the people. Mr. DaCosta commented that he saw the politics and an initiative that was introduced 6-8 minutes before the deadline called the Toxic Cleanup and Environmental Justice Initiative introduced by four Supervisors: Maxwell; Peskin; McGoldrick; and Dufty, and available at the San Francisco Department of Elections. Mr. DaCosta had read it and found it full of loopholes and having very faulty language. Concluding, Mr. DaCosta wanted to thank the Commissioners for their good work and asked that God bless them all.
Mr. John Rizzo, Sierra Club Bay Chapter, thanked Commissioner Sklar, and expressed support for the amendment, noting this was time for closure on this issue as we all have been working it a lot for longer than we can remember. Mr. Rizzo observed as people have said, this was not the time to do this. Mr. Rizzo reported that the City of Hayward and Assemblywoman Hyashi were acting to halt the building of a power plant there. Mr. Rizzo suggested that California looked to San Francisco and then the country looked to California for leadership. Mr. Rizzo commented that scientists were saying we have 6-8 years to drastically change how we produce energy and to make significant motion to change our energy economy. He thought former Vice President Al Gore's comments were helpful to get out the information scientists had been saying for years. Mr. Rizzo concluded this was a great thing that the Commission was doing and thanked them for all for they have done.
Mr. Jason Saddler thanked the Commissioners and echoed Commissioner Sklar in saying this was a great time for San Francisco to look at what was going on and say to the world, we are done with spending money on fossil fuels.
Mr. Darrel Cockerham, A. Philip Randolph Institute (APRI) thanked the Commissioners and reported that the APRI fully supported anything that will end in building new peekers in the Potrero Hill neighborhood. Mr. Cockerham reported that the APRI did outreach in the area in the neighborhoods and the community itself and that residents said they didn't want it there. He commented that the APRI fully supported any item to silence the peakers as well as to retrofit the existing plant there. Mr. Cockerham noted from the beginning the APRI had said retro fit was the best alternative as opposed to building the peakers.
Ms. Laura Tam, San Francisco Planning and Urban Research (SPUR), thanked the Commissioners for their service and leadership on this issue. Ms. Tam wholeheartedly supported Commissioner Sklar’s resolution as well as the amendment. Ms. Tam echoed the belief that solar power was the future of energy both for California and the City recalling the great success of the Solar Task Force this year and developing the rebate program. Ms. Tam observed that there was a lot of energy and momentum to develop renewable alternatives and that SPUR supported going forward in those efforts. This Ms. Tam observed was an historic day to put an end to the peaker project and stated SPUR stands ready to support the movement towards a renewable future. Ms. Tam also reported SPUR would like to see more work examining a transmission only alternative to the retrofit.
Mr. George Rush, an attorney and Sunset District resident spoke to commend the Commissioners for the Resolution and amendment, which he supported wholeheartedly. Mr. Rush remarked that while he usually cannot attend Commission meetings, he felt compelled to voice his support and distress at what appears to be an overly political process. Mr. Rush hoped what seemed to be cynical and ugly politicking would not rule out resolving this issue and that the Commission was very forward looking and he supported its efforts.
Mr. Joshua Arce, Brightline Defense Fund, said that It had been great getting to know the Commissioners over the past year on this peaker project. He thanked the Commissioners for their public service on this issue and everything you do. Mr. Arce noted the resolution delivers a simple message that building any new fossil fuel plant in San Francisco was not an option. This, Mr. Arce observed was the power of this resolution. Mr. Arce reported that Commissioner Sklar’s reference at the Citizen’s Advisory Committee meeting on July 1st indentified retrofitting as an option that would be cleaner than building the new CT’s. Mr. Arce noted that his organization had always wanted what was cleaner therefore removing the CT’s as an option.
Mr. Arce suggested now there are two alternatives with the one before us getting more and more to where we can put pen to paper on it. Mr. Arce reported his organization was comfortable with the assurances on the retrofit of the remaining units that Mirant wants, with most of it to shut down in 2010. And there is the resolution from the Board of Supervisors which passed with a vote of 10-1 today for transmission only. Mr. Arce speaking from the environmentalist front said he was ready to focus on those alternatives. Mr. Arce remarked he had reached the end of debating on the CT’s and now hopefully everyone would be going to move beyond it.
Mr. Arce reported that a group went to the Board of Supervisors, to individual Supervisors to say his organization would be informing the Commission asking for it to end. He commented that his organization did not view the combustion turbines as an option, and that the Brightline Defense Fund had assurances they needed from Mirant, including the term sheet and a CAISO commitment and the SFPUC staff saying it will not be derailed. Additionally, Mr. Arce noted the City had the power to oppose the water permit labor that kept Mirant in business and if we want to oppose the waiver we could do that. Mr. Arce noted it was within the Commission’s authority to do it and that as this was your last day and there will never be a set of experience of expertise like exists on this Commission today that was why we wanted this action today and why we support the resolution. Mr. Arce concluded calling attention to an article in the San Francisco Examiner over the weekend which tied in the idea there were development that happened around those who that was their interest Mr. Arce noted we can work harder to get the Mirant retrofit shut down as soon as possible if we will work together.
Mr. Joe Boss, Potrero Power Plant Task Force, thanked the Commissioners for the incredible work they have done over the years, observing the Commissioners were always willing to discuss things with him. Mr. Boss stated that he had the utmost respect for each of the Commissioner. He observed that he had been working on this CT energy resource thing for about 8 years. Mr. Boss stated that he accepted that the Commission had no ulterior motives unlike your friends with the utility company noting he has never subscribed to that and never will.
Mr. Boss pointed out the consequences, though, of this project not moving forward would he thought have the biggest impact on the growth of solar and wind for the City, and it was very critical that without the CT's or something else, that San Francisco’s Action Plan and the California Independent System Operator (CAISO) Action Plan, were both incomplete, and that meant that the Mirant Power Plant will continue to be required to operate, probably for years to come. Mr. Boss pointed out that as San Francisco peninsula energy consumption continues to go up, one could speculate as to at what point it would make economic sense to modify and continue operation of Mirant Unit 3, although he hoped not. Mr. Boss observed that when the Transbay transmission line was energized San Francisco could import more energy from fossil fuel produced elsewhere, and that he had supported Transbay cable not because of that aspect, which provided greater reliability, but because of potential energy from the wind farms being build in Solano County.
Mr. Boss commented that he could forgive people who did not grasp the complexities of this issue and took positions that may not really ultimately serve San Francisco well, however, he did have a problem with people who parroted “just say no to fossil fuel” because that was only a small part of the big picture. Mr. Boss also noted that he believed it very important to address the future development potential of Pier 70 and observed that it was a no brainer for anybody who understands land use and redevelopment. Mr. Boss then said we need to look at that issue and asked the Commission to instruct its staff to update the Electric Resource Plan as soon as possible, reflecting that because without doing so we are still sitting here and we will be still sitting here for years trying to figure this out.
Mr. Eric Brooks, of the Our City, Stop Polluting Power Plants Coalition, and the San Francisco Green Party commented that it has been a long time and a hard road getting to this point, and that he applauded the Commissioners for what they were about to do. Mr. Brooks wished to speak to the specifics, one the November ballot measure that has been mentioned saying what it would do was to put into place a conditional use process for all new steam generators and fossil fuel generators and retrofits in San Francisco. This way they will have to go before the Planning Commission and the proposed initiative sets the bar so high for the Mirant retrofits, including a clause that says, if you delay clean up of the plant a retro- fit was not acceptable. This Mr. Brooks said this showed how high the bar was being set, and noted that the peakers were let off the hook because they had already been through an environmental review process and were already permitted. This meant, Mr. Brooks suggested, the CT’s could not be affected by the ballot measure, clearly a cynical maneuver to just keep forcing the CT’s down the opponent’s throats.
Mr. Brooks said because of the November ballot measure, until the CT’s was actually sold one cannot guarantee that the peaker plant would not be built. Mr. Brooks asked that the Commissioners get staff to work as diligently as possible to sell the combustion turbines as rapidly as possible, hopefully before November, so that option will be off the table when the measure was on the ballot, and then if passes, great as this sets a high standard against putting in any fossil fuel plants, but the CT’s need to be gone for that to be a factor. Mr. Brooks asked that the Commission make every effort when selling the CT’s to sell them to a community that will use it to replace coal fired power plants a high end goal we ought to pursue that would improve the overall use of fossil fuel situation.
Mr. Brooks thanked those who have worked so hard to help move this forward and taken a lot of heat, including from him on other issues. Mr. Brooks commented that the Commissioners had been steadfast in this and impressive. Mr. Brooks concluded by observing that for those Commissioners who will not be returning this was your swan song as Commissioner and you can go out on a high note by passing this resolution with the amendment.
Commissioner Crowley left the meeting at 2:45 P.M.
Commissioner Sklar observed that the California Department of Water Resources (DWR) had a key role in the decision regarding the disposition of the turbines, commented that the proposed ballot initiative was a cynical ploy to retain the combustion turbines project as the only possible alternative by the Supervisors. Commissioner Sklar noted that the City Charter envisioned Commissions as independent bodies designated to make decisions on the basis of the facts presented rather than under political intimidation or threats.
Motion as amended to rescind SFPUC Resolutions No. 07-0137 and No. 07-0188 with respect to the proposed combustion turbine projects and related facilities by Commissioner Sklar seconded by Commissioner Hochschild, approved (3-0 Normandy, Sklar, and Hochschild) unanimously. Resolution No. 08-0133
At the recommendation of Deputy City Attorney Noreen Ambrose Items 10 and 11 where taken up next.
10. Discussion and possible action related to adopt the required California Environmental Quality Act (CEQA) Findings, the Mitigation Monitoring and Reporting Program (MMRP), and the Greenhouse Gas Reduction Measures; Approve the Water System Improvement Program (WSIP) funded project, New Crystal Springs Bypass Tunnel Project, CUW35601; Authorize the General Manager of the San Francisco Public Utilities Commission (SFPUC) to request that the Mayor recommend to the Board of Supervisors approval of a supplemental appropriation in the amount of $86,367,000 to fund the NCSBT Project Construction; and authorize the General Manager of the SFPUC to seek the Board of Supervisors' approval of the Easement Deed from San Mateo County for Polhemus Road, and accepting the Easement Deed upon approval.
The Commissioners congratulated Ms. Labonte and commended staff upon the successful completion of the initiation process for this critically important Water System Improvement Program Project.
Moved by Commissioner Hochschild, seconded by Commissioner Sklar to adopt the CEQA and related findings, approve the New Crystal Springs Bypass Tunnel Project, request approval of the supplemental appropriation, and authorize the General Manager to seek approval of and accept the identified easement deed; approved (3-0 Normandy, Sklar, and Hochschild) unanimously. Resolution 08-0134
11. Discussion and possible action related to approval of a delegation of Commission Authority.
Vice President Normandy called a brief recess at 2:55 P.M. The Commission returned to session at 3:10 P.M.
Deputy City Attorney Noreen Ambrose explained the nature and scope of the proposed delegation of authority.
Commissioner Hochschild inquired concerning the extent and limitations of the proposed delegation of emergency authority to the General Manager in the absence of a quorum of the Commission. In response, Deputy City Attorney Noreen Ambrose described in further detail what kinds of authority were proposed in specific to be granted and reported it would terminate when the successor Commission was confirmed in office. General Manager Harrington explained further the limited nature of the proposed delegation. Commissioner Sklar noted that this was necessary to provide against the eventuality that there would not be a quorum of the Commission in office and that he was confident that the General Manager would exercise this authority appropriately.
Moved by Commissioner Hochschild, seconded by Commissioner Sklar to approve the proposed delegation of Commission authority; passed (3-0 Hochschild, Normandy, Sklar) unanimously. Resolution 08-0135
Vice President Normandy, observed that given the imminent loss of this meeting’s quorum and the routine nature of the remaining agenda items No. 10, 12, 13, 14, 15, 16, 17, and 18, excepting only the closed session matters, suggested they be taken up together. Commissioner Sklar agreed that these were matters fully described in the accompanying staff reports, were vetted and recommended by staff, and saw nothing that required addition review before Commission approval. Vice President Normandy noting that the Commissioners did not wish to leave any loose ends recommended the remaining agenda items be approved by a single motion and vote. (Ambrose)
Moved by Vice President Normandy, seconded by Commissioner Sklar to approve the following agenda items Nos. 10, 11, 12, 13, 14, 15, 16, 17, and 18, (3-0 Normandy, Sklar, and Hochschild) unanimously.
Public comment: There was no public comment.
REAL PROPERTY TRANSACTIONS
12. Discussion and possible action related to approve the terms and conditions and authorize the General Manager of the San Francisco Public Utilities Commission (SFPUC) to approve a five (5) year lease term with one five (5) year lease extension option for office space located at 1325A Evans Avenue comprising 3,287 rentable square feet. Resolution 08-0136
13. Discussion and possible action related to approve the terms and conditions and authorize the General Manager of the San Francisco Public Utilities Commission (SFPUC) to execute an amendment providing for two six (6) month options to extend the term of the Exclusive Negotiating Agreement (ENA) with Oliver de Silva, Inc., for the mining of the 308.5 acre Sunol Valley Aggregate Quarry site located on a portion of Parcel 65 of Alameda County lands in Sunol Valley, resulting in a possible extension to September 17, 2009. Resolution 08-0137
CONSTRUCTION CONTRACTS
14. Discussion and possible action to approve the plans and specifications and award Wastewater Enterprise 5-Year CIP-funded Contract No. WW-450R, Channel Pump Station Odor Control and Facility Improvements, in the not to exceed, amount of $14,578,820 to the lowest, qualified, responsible and responsive bidder, Monterey Mechanical. Resolution 08-0138
PROFESSIONAL SERVICE CONTRACTS
Award
15. Discussion and possible action related to approve Amendment No. 2 to the Water System Improvement Program-funded Agreement No. CS-754, Environmental Analysis Services – Bay Division Pipeline Hydraulic Capacity Upgrade Project, with Entrix Environmental Consultants and Ward & Associates, JV to prepare responses to comments and Administrative Draft of the Environmental Impact Report (EIR), prepare final EIR document, prepare and assist in certification and approval of final EIR document, prepare mitigation, monitoring and reporting plan, and prepare permit applications; and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement to a not-to-exceed amount of $400,000, for a total agreement not-to-exceed amount of $3,500,000, and with a time extension of one year and two months, to a total of five years and two months. (Torrey) Resolution 08-0139
16. Discussion and possible action related to approve the selection of JDH Corrosion Consultants, CorrPro Companies Incorporated and Schiff Associates; award Agreement Numbers CS-904A, B and C, to provide As Needed Corrosion Services; and authorize the General Manager of the San Francisco Public Utilities Commission to negotiate and execute a professional services agreement with for a cumulative amount not to exceed $2,000,000 and with a duration of three (3) years, 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. Resolution 08-0140
17. Discussion and possible action related to approve the selection of The Gordian Group (TGG); award Agreement No. CS-941, Job Order Contract Implementation Services, to provide a PUC-customized job order contracting (JOC) system; and authorize the General Manager of the San Francisco Public Utilities Commission to execute a professional services agreement with The Gordian Group for an amount not to exceed $5,000,000, payable as a percentage fee of actual construction task orders issued, and with a duration of 60 months. (Kelly) Resolution 08-0141
Amend
18. Discussion and possible action related to approve Amendment No. 2 Water System Improvement Program (WSIP)-funded Agreement No. CS-826, Groundwater Conjunctive Use Project Conceptual Engineering Services, with MWH, Inc., and authorize the General Manager of the San Francisco Public Utilities Commission to execute this amendment increasing the agreement by $70,000, for a total agreement amount of $649,607. Resolution 08-0142
All of the Closed Session items, Nos. 22, 23, and 24, were continued by Vice President Normandy to the Call of the Chair.
CLOSED SESSION
22. 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.
23. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(b) (1) and San Francisco Administrative Code Section 67.10(d) (2). (Rothschild)
Anticipated Litigation: State Farm Insurance Company as subrogee for Albert SooHoo, City Attorney File No. 08-W0016-4, Filed December 19, 2007.
24. Conference with Legal Counsel - Pursuant to California Government Code Section 54956.9(b) (1) and San Francisco Administrative Code Section 67.10(d) (2). (Rothschild)
Anticipated Litigation: Laurence Tam/Gregory J. Bulliung, Esq. City Attorney File No. 08-00191, Filed July 24, 2007
There being no further business to discuss, the meeting was adjourned at 3:20 P.M.
Michael Housh
Secretary
