San Francisco Public Utilities Commission
Citizens Advisory Committee

MINUTES

August 27, 2007

5:30 p.m. – 7:00 p.m.
1155 Market Street
4th Floor Conference Room

 

Members

Alex Lantsberg– Chair	Richard T. Hansen	David Pascal
Nick Carlin	Winchell Hayward	Robert Varni
Jennifer Clary	Art Jensen	Judy West
Ken Cleaveland	Steve Lawrence	Lurilla Harris
David Dawdy	Kimia Mizany

 

Staff: Betsy L. Rhodes

Members of the public present: Tim Colen, Jim Marks, SFPUC, Gary Otto, SFPUC
Emeric Kalman arrived at 6:40 p.m.

ORDER OF BUSINESS 

1. Call to order. Chair Lantsberg called the meeting to order 5:40 p.m.

2. Roll Call
Present: Hayward, Lawrence, Dawdy, Clary, Harris, Hansen, Varni, Lantsberg, West, Carlin, Mizany. Cleveland – arrived at 5:45 p.m., and left at 7:00 p.m.
Absent: Pascal, Jensen

3. Approval of the minutes of the July 2007 Regular Meeting.
    Jennifer Clary moved.  Winchell Hayward corrected the spelling of principal to principle on page one.    Jennifer Clary accepted, Winchell Hayward seconded. Minutes pass unanimously with the correction.

4. Public Comment – members of the public may address the Committee on matters that are within the Committee’s jurisdiction and are not on today’s agenda.
   None.

5. Action to accept the nomination of Tim Colen as a public member of the Water Subcommittee. 
Jennifer Clary moved for acceptance, Bob Varni Seconded. 

Discussion: Jennifer Clary said that the Water Subcommittee approved the nomination of Tim Colen.  Mr. Colen mentioned that he has a background in environmental issues. He is a founding member of the Lake Merced Task Force, although he is not here as its representative to the CAC.  He currently is the executive director of a small non-profit organization that promotes smart growth.  

No public comment.

The nomination passed unanimously. 

6. Report from the Chair

Chair Lantsberg introduced Lurilla Harris, the newest member of the CAC appointed by Tom Ammiano.  She mentioned that she has been involved with the City of San Francisco’s Sunshine Task Force and the Gray Panthers.  She is interested in environmental, human rights and animal protection issues.   She is from Bernal Heights

7. Action on proposed resolution from Power Subcommittee on urging the SFPUC Power Enterprise to charge all customers for electricity usage

Kimia Mizany stated that SFPUC has not been able to spend the $100 million as part of the Solar Bonds Initiative passed by voters in 2001 because the Power Enterprise’s lack of a good bond rating. The Power Enterprise does not have a steady stream of revenue because not all City Departments pay fair market value for electricity.  General fund agencies pay 3 ½ cents per kilowatt-hour.  The resolution proposes general fund departments pay 8 cents per kilowatt-hour to enable the Power Enterprise to procure authorized bond financing.

Kimia Mizany made the motion. Ken Cleaveland and Nick Carlin seconded.

Discussion:
· Nick Carlin mentioned that this is an accounting issue – one agency paying another. It will have no financial impact on the San Francisco government. 
· Lurilla Harris asked from what statute or law the arrangement came, since that is what the Committee would ask to be changed. She also suggested the monies go to all renewables not just solar. 
· It was agreed that the resolution would reflect the language in the Propositions A and E.

Public Comment:

Tim Colen: Stated that this was a terrific idea, and suggested that the CAC bring this directly to Supervisor Sean Elsbernd.

The resolution passed unanimously.

8. Action on proposed resolution urging greater public participation in the Water System Improvement Program - Program Environmental Impact Report.

Jennifer Clary stated that the 3,000-page Program Environmental Impact Report document is very complex.  The Planning Department will hold individual hearings throughout the service area, and will hold a hearing in San Francisco at the Planning Commission only.  This should have a stand-alone hearing, or at least a time-specific review to facilitate public input.  The hearing at the Planning Commission is already scheduled for September 20, 2007. 

Jennifer Clary made the motion to accept, David Dawdy Seconded. 

Discussion:
· Steve Lawrence and Ken Cleaveland expressed concern that this might delay the progress of the Water System Improvement Program.  
· Bob Varni submitted a draft resolution that is a friendly amendment to the proposed.  Jennifer Clary accepted Mr. Varni’s draft, which replaces the original draft.  The revised text is attached to these minutes.
· Winchell Hayward stated that it was presumptuous to dictate what the Planning Commission will consider at that meeting. 
· Others stated that they would rather see the Planning Commission do this the right way the first time.

Public Comment:

Tim Colen stated that it is not unfair to ask for a time specific hearing. 

There were 11 votes in favor, one against from Winchell Hayward. Motion passes.

9. Discussion and possible action on recommendations to change the enabling legislation of the CAC to fill CAC vacancies.

Establishing quorum is difficult – 9 for a committee of 17, and vacancies make it difficult to pass any resolutions because they usually require unanimity. Also there is very little representation by women and people of color. Therefore, the proposal is to decrease the number of seats from 17 to a more manageable 11, and make appointments city-wide, not from each supervisorial district.  

Alex Lantsberg put the motion to the floor. Jennifer Clary seconded for discussion purposes.

Discussion:
· There was disagreement among the members about whether or not to have individual Board of Supervisor Appointments or Board-wide appointments.
· Some members were in agreement that a reduction in number is advisable, but questioned whether that number be 11.
· Others disagreed with a reduction, but instead proposed an attendance policy that penalized those who do not attend meetings.
· Several members suggested changing quorum from half of the entire committee plus one, to half of the seats that are filled.
· Winchell Hayward moved to amend the proposed resolution. On line 23 page 1, to strike “Environmental justice and Environmental science.”  He also proposed re-inserting on page 2 line 1 – demonstrated knowledge of “engineering or financial management.”
· Alex Lantsberg and Jennifer Clary accepted the first comment regarding the deletion of environmental justice and environmental science, but did not accept the re-insertion of “engineering and financial management.”

Public comment:

Tim Colen: Having run an organization, not making quorum is bad for your credibility.  On the other hand, reduction from 17 to 11 is a major reconstitution of the CAC that might lose institutional memory. Minimum attendance records and unexcused absences that force members to lose their voting rights might help.  

The Chair withdrew the motion and will continue discussion at the next meeting when the City Attorney could be present.

10. Subcommittee Reports:  (20 minutes)

   a. Water – Jennifer Clary – PEIR hearings in September, putting together program for coming year
   b. Power – Kimia Mizany – Next meeting will discuss a 6-month look ahead of priorities of the Power Enterprise with Barbara Hall, AGM of Power Enterprise.  
   c. Environmental Justice – David Pascal received a letter back from Susan Leal, which stated that  Environmental justice will be part of the sustainability plan.  The committee will develop guidelines and indicators on an interim basis to put before the General Manager and the Commission. 
   d. Wastewater – Alex Lantsberg. Draft Master Plan for sewers moving forward and will go before the San Francisco Public Utilities Commission in October.

11. Discussion of potential future agenda items:
   The CAC will hold its next regular meeting on September 17, 2007, rather than September 24, since they will not be able to have quorum that day.

12. Announcement/Comments
None

13. Meeting adjourned at 7:28 p.m.

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SF PUC CAC Power Subcommittee
Resolution on Pay-for-Service Electricity Rates
Passed by the Citizens Advisory Committee on August 27, 2007

Whereas, the SFPUC and the City and County of San Francisco have a goal of deploying more renewable energy technologies in the City to achieve the goal of more sustainable power generation, and;

WHEREAS the Proposition E passed in 2002 restricted the practice of using SFPUC enterprise revenues to subsidize the general fund and directed the SFPUC to establish 'rates, fees and charges at levels sufficient to improve or maintain financial condition and bond ratings,' and;

Whereas, the Solar Bond Initiative, established by Propositions B and H that were passed overwhelmingly by San Francisco voters in 2001, allows for $100 million in bonding authority for solar, energy efficiency, and wind power projects in the City, and;

Whereas, the SFPUC Power Enterprise has been unable to access this bond money for its solar projects because the current credit-worthiness of the Power Enterprise is insufficient;

Whereas, the SFPUC Power Enterprise’s low credit rating derives from the fact that its revenue stream is not sustainable because the Enterprise has not been charging all of its electrical customers adequate rates to cover the cost of service;

Whereas, the SFPUC Power Enterprise would be able to restore its credit-worthiness and therefore be able to take advantage of the solar bond monies to fund significantly more solar projects if it were to stabilize its revenue stream by implementing a policy of charging pay-for-service electric rates to all of its customers without exception;

Therefore, be it resolved that the SFPUC Citizen’s Advisory Committee hereby strongly urges the SFPUC Power Enterprise to implement a firm policy of charging pay-for-service electric rates to all of its customers without exception at its next Commission Hearing.

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Resolution on Public Participation in the SFPUC Water System Improvement Program – Program Environmental Impact Report (PEIR)

Passed by the SFPUC Citizens’ Advisory Committee August 27, 2007

Whereas, the Citizens Advisory Committee to the San Francisco Public Utilities Commission was appointed to advise by the Mayor and the Board of Supervisors, and

Whereas, said Public Utilities Commission is currently engaged in a $5,000,000,000 (Five Billion Dollar) project to enhance the Hetch Hetchy Water Delivery System, and

Whereas an Environmental Impact Report has been prepared for review by the Citizens and taxpayers of the City and County of San Francisco on September 20, 2007.

Therefore, be it resolved that the Citizens’ Advisory Committee advise the Mayor and the Board of Supervisors to direct the Planning Commission to schedule the Citizen/Taxpayer review of said Environmental Impact Report as the first (or only) item on the Agenda at said Meeting.

Sent to the Mayor and Board of Supervisors of the City and County of San Francisco, with a cc to the President of the Planning Commission.