00:00:07 . >> GOOD MORNING THE MEETING
00:00:11 WILL COME TO ORDER. WELCOME TO THE APRIL 15TH, 2026
00:00:14 MEETING OF THE BUDGET AND FINANCE COMMITTEE.
00:00:16 I'M SUPERVISOR CONNIE CHAN, CHAIR OF THE COMMITTEE.
00:00:19 I'M JOINED BY VICE CHAIR SUPERVISOR MATT DORSEY.
00:00:22 I AM AMBER. SUPERVISOR DANNY SOUDER.
00:00:26 OUR CLERK IS BRIAN HALPER. I WOULD LIKE TO THANK JEANETTE
00:00:29 EKEH EAGERNESS FROM COURT TV FOR BROADCASTING THIS MEETING.
00:00:35 MR. CLERK, DO YOU HAVE ANY ANNOUNCEMENTS?
00:00:39 >> THANK YOU, MADAM CHAIR. JUST A FRIENDLY REMINDER TO
00:00:40 THOSE IN ATTENDANCE TO PLEASE MAKE SURE TO SILENCE ALL CELL
00:00:43 PHONES AND ELECTRONIC DEVICES TO PREVENT INTERRUPTIONS TO OUR
00:00:46 PROCEEDINGS TO HAVE ANY DOCUMENTS TO BE INCLUDED AS
00:00:50 PART OF THE FILING SHOULD BE SUBMITTED TO MYSELF.
00:00:51 THE CLERK PUBLIC COMMENT WILL BE TAKEN ON EACH ITEM ON THE
00:00:54 AGENDA. WHEN YOUR ITEM OF INTEREST
00:00:55 COMES UP IN PUBLIC COMMENT IS CALLED PLEASE LINE UP TO SPEAK
00:00:58 ON THE WEST SIDE OF THE CHAMBER TO YOUR RIGHT MY LEFT ALONG
00:01:01 THOSE CURTAINS. AND WHILE NOT REQUIRED TO
00:01:04 PROVIDE PUBLIC COMMENT WE DO INVITE YOU TO FILL OUT A
00:01:06 COMMENT CARD AND LEAVE THEM ON THE TRAY BY THE TELEVISION TO
00:01:09 YOUR LEFT BY THE DOORS IF YOU WISH FOR YOUR NAME TO BE
00:01:12 ACCURATELY RECORDED FOR THE MINUTES.
00:01:14 ALTERNATIVELY YOU MAY SUBMIT PUBLIC COMMENT IN WRITING
00:01:17 IN EITHER OF THE FOLLOWING WAYS EMAIL THEM TO MYSELF THE BUDGET
00:01:20 AND FINANCE COMMITTEE CLERK HAT B R AND T DOT J L IPA HAT S.F.
00:01:25 JAIL V.ORG IF YOU SUBMIT PUBLIC COMMENT VIA EMAIL IT WILL BE
00:01:29 FORWARDED TO THE SUPERVISORS AND ALSO INCLUDED AS PART OF
00:01:32 THE OFFICIAL FILE. YOU MAY ALSO SEND YOUR WRITTEN
00:01:36 COMMENTS BY A U.S. POSTAL SERVICE TO OUR OFFICE IN CITY
00:01:40 HALL AT ONE DR. CARLTON BECAUSE IT PLACE ROOM 244 SAN
00:01:44 FRANCISCO, CALIFORNIA NINE FOR 1 OR 2.
00:01:46 AND FINALLY ITEMS ACTED UPON TODAY ARE EXPECTED TO APPEAR ON
00:01:50 THE BOARD OF SUPERVISORS AGENDA OF APRIL 21ST UNLESS OTHERWISE
00:01:53 STATED. >> MADAM CHAIR, THANK YOU SO
00:01:56 MUCH, MR. CLERK, PLEASE. >> ITEM NUMBER ONE YES.
00:01:59 >> ITEM NUMBER ONE IS A RESOLUTION RETROACTIVELY
00:02:05 AUTHORIZING THE DEPARTMENT OF ELECTIONS TO ACCEPT AND EXPEND
00:02:09 FUNDS ALLOCATED BY THE CALIFORNIA SECRETARY OF STATE
00:02:12 IN AN AMOUNT NOT TO EXCEED APPROXIMATELY 416,000 TO FUND
00:02:16 VOTING SYSTEM AND ELECTION MANAGEMENT SYSTEM REPLACEMENT
00:02:19 FOR THE PERIOD OF JULY 1ST 2025 THROUGH AUGUST 31ST 2026.
00:02:23 >> MADAM CHAIR, THANK YOU. >> AND TODAY WE HAVE DEPARTMENT
00:02:27 PARLIAMENTARY HERE. THANK YOU.
00:02:29 GOOD WORK SUPERVISORS GENERAL DIRECTOR OF ELECTIONS.
00:02:31 SO THIS MORNING THE DEPARTMENT ELECTIONS IS REQUESTING THE
00:02:34 COMMITTEES REVIEW AND APPROVAL OF AN EXCEPT EXPAND RESOLUTION
00:02:37 AUTHORIZING THE DEPARTMENT TO OBTAIN FUNDS FROM THE STATE OF
00:02:39 CALIFORNIA TOTALING $416,431.10 FOR THE REIMBURSEMENT OF COSTS
00:02:47 ASSOCIATED WITH VOTING SYSTEM REPLACEMENT.
00:02:49 THESE FUNDS ARE THE CITY'S ALLOTMENT OF A LARGER TOTAL
00:02:53 THAT THE STATE LEGISLATURE HAS PROVIDED FOR ALL COUNTIES
00:02:56 IN CALIFORNIA. THE DEPARTMENT WILL APPLY THE
00:02:57 FUNDS TO REIMBURSE COSTS INCURRED WHEN MAKING LEASE
00:03:00 PAYMENTS TO THE VOTING SYSTEM VENDOR AS REQUIRED UNDER AN
00:03:04 EXISTING CONTRACT. THE CITY MUST ALSO SHOW THAT IT
00:03:08 PROVIDED MATCHING FUNDS OF $138,810.37 TO RECEIVE THE
00:03:13 STATE FUNDS. >> SINCE THE LEASE PAYMENT
00:03:16 UNDER THE CONTRACT EXCEEDS THE TOTAL OF STATE FUNDS BY MORE
00:03:20 THAN THE $138,810.35, THE CITY MEETS THE REQUIREMENT REGARDING
00:03:24 THE MATCHING FUNDS WITHOUT HAVING TO MAKE ANY ADDITIONAL
00:03:28 EXPENDITURES. AND WITH THAT I'LL BE GLAD TO
00:03:31 ANSWER ANY QUESTIONS REGARDING THIS RESOLUTION.
00:03:32 >> THANK YOU. I DON'T ACTUALLY HAVE
00:03:35 ADDITIONAL QUESTIONS REGARDING SPECIFICALLY THE ITEM BEFORE US
00:03:38 TODAY. I DO HAVE QUESTIONS IF I MAY
00:03:39 ABOUT THE UPCOMING ELECTIONS BOTH IN THE PRIMARY AND AGAIN
00:03:43 IN GENERAL ELECTION IN NOVEMBER.
00:03:46 GIVEN THE FACT THAT IF I UNDERSTAND CORRECTLY AND MAYBE
00:03:50 I'M I'M NOT AND THEREFORE I WILL LOVE CLARIFICATION
00:03:53 AND THAT DO WE HAVE ANY CONCERN ABOUT ELECTION SECURITY OR
00:03:57 INVOLVEMENT WITH THE FEDERAL GOVERNMENT AND HOW HOW WILL WE
00:04:01 PREPARE FOR THAT? >> SO RIGHT NOW NO, I DON'T
00:04:05 HAVE CONCERNS ABOUT ANY ABOUT ELECTION SECURITY AND ABOUT ANY
00:04:08 IMPAIRMENT OF THE ELECTION PROCESS BY THE FEDERAL
00:04:12 GOVERNMENT FOR FOR JUNE. NATURALLY THE ELECTION THAT
00:04:13 WE'RE FOCUSED ON RIGHT NOW WE'RE NOT REALLY WE ARE
00:04:16 PLANNING FOR NOVEMBER. RIGHT NOW OUR FOCUS IS ON THE
00:04:20 JUNE ELECTION. WE DO HAVE MEETINGS WITH THE
00:04:23 DEPARTMENT OF EMERGENCY MANAGEMENT THAT IS A
00:04:27 COLLABORATIVE OF ALL THE SECURITY RELATED AGENCIES
00:04:31 AND ALSO SUPPORT SERVICES LIKE DPW WILL BE PART OF THAT.
00:04:35 REGARDING SUPPORTING THE DEPARTMENT THROUGH THE ELECTION
00:04:39 CYCLE ON ELECTION DAY AND THOSE CONVERSATIONS WILL INCLUDE
00:04:43 ELECTION SECURITY OF COURSE INCLUDING ANY SORT OF POTENTIAL
00:04:47 IMPINGEMENT OF THE ELECTIONS PROCESS BY ANY FEDERAL AGENCY
00:04:49 OR AUTHORITIES. AT THIS TIME I DON'T EXPECT
00:04:55 THERE TO BE ANY SORT OF SECURITY ISSUES ARISING IN JUNE
00:04:59 . AND I JUST AND I MY EXPERIENCE
00:05:00 THE FEDERAL GOVERNMENT HAS NOT INTERFERED WITH ELECTIONS
00:05:03 PROCESSES IN SAN FRANCISCO DURING MY TIME AS DIRECTOR
00:05:07 AND WE DO WORK WITH THE FBI BEFORE EVERY ELECTION IN THE
00:05:11 DOJ SO WE HAVE CONNECTIONS IN THOSE OFFICES.
00:05:15 SO I UNDERSTAND THE FEARS. I UNDERSTAND THE CONCERNS BUT
00:05:19 AT THE SAME TIME I DO EXPECT THE ELECTION TO BE WELL
00:05:23 ADMINISTERED AND FOR PEOPLE TO VOTE SAFELY AND SECURELY
00:05:27 IN JUNE. >> AND IF I RECALL CORRECTLY
00:05:29 THAT THE CITY DOES AND DEPARTMENT OF ELECTION IS
00:05:33 PART OF HAS BEEN THROUGH THE CITY'S SURVEILLANCE POLICY
00:05:38 CHAPTER 19 AND THAT IF I UNDERSTAND CORRECTLY THAT FOR
00:05:40 THE DEPARTMENT ELECTIONS YOU DO HAVE CAMERAS.
00:05:46 CORRECT. COULD YOU ELABORATE A LITTLE
00:05:47 BIT? CERTAINLY.
00:05:49 SO AND WE'RE ALSO ACTUALLY WE'LL BE BRINGING AN AMENDED
00:05:51 REQUEST FOR AN AMENDED POLICY TO THE RULES COMMITTEE AFTER
00:05:57 THE THREE DAY RULES OVER IN A FEW WEEKS.
00:05:58 SO IN OUR OFFICE WE ACTUALLY DO LIVE STREAM AND ALSO WHERE ELSE
00:06:03 WE LIVESTREAM ELECTION RELATED ACTIVITY SO ANY BALLHANDLING
00:06:06 PROCESSES THAT WE UNDERTAKE ARE ACTUALLY LIVESTREAMED ON OUR
00:06:10 WEBSITE AND THEN WE ALSO HAVE SOME SORT OF INTERNAL LIVE
00:06:13 STREAMING WHERE WE CAN MONITOR WHAT'S HAPPENING LIKE IN THE
00:06:17 VOTING CENTER WHICH WHICH IS IN THE GROUND FLOOR OF CITY
00:06:20 HALL AND THEN WE ALSO PUT CAMERAS ON THE SERVERS THAT WE
00:06:24 HAVE THAT WOULD RECORD AND ADMINISTER THE ELECTION
00:06:28 EQUIPMENT AND AND WE RECORD THAT.
00:06:32 SO IF THERE WERE ANY ENTRANCE ANY ENTRANCE INTO THE AREA
00:06:35 WHERE THE SERVERS ARE, WE WOULD RECORD THAT INTERNALLY BOTH
00:06:37 IN THE OFFICE AT THE WAREHOUSE. WE LIVESTREAM OUR ELECTIONS
00:06:41 PROCESSES WHERE THERE'S THERE'S BALLOT HANDLING AND IN
00:06:44 PROCESSING AND THEN WE ALSO LIVESTREAM BUT NOT RECORD
00:06:48 ACTIVITIES SUCH AS THE OPENING OF THE BALLOTS THE THE
00:06:54 DISTRIBUTION OF BALLOTS TO THE POLL WORKERS THAT THE
00:06:56 INSPECTORS HAD TO TAKE TO THE POLLS ON ELECTION DAY.
00:07:00 THE PROVISIONAL BALLOT PROCESSING THAT WE DO AND WE
00:07:03 HAVE A RATHER ROBUST SCHEDULE AND AND REGIME ON OUR WEBSITE
00:07:10 THAT PEOPLE CAN CLICK INTO AND WATCH.
00:07:14 SO AND ALSO WE HAVE A PRETTY ROBUST OBSERVATION PRACTICE
00:07:22 THAT WE HAVE IN THE DEPARTMENTS.
00:07:23 I THINK IT'S FAR MORE ROBUST THAN OTHER COUNTIES IN THE
00:07:26 STATE. SO WE ACTUALLY ALLOW PEOPLE TO
00:07:27 COME AND VISIT THE DEPARTMENT AND ACTUALLY BE NEXT IN WITH
00:07:31 OUR PERSONNEL AS WE PROCESS THE BALLOTS THEY CAN SEE WHAT WE'RE
00:07:34 DOING. NOTHING'S BEING HIDDEN.
00:07:37 THERE'S THERE'S NO WALLS OR ANYTHING IN BETWEEN PEOPLE
00:07:41 OTHER THAN THE BALLOT PROCESSING.
00:07:42 WE DON'T LET PEOPLE IN THE TABULATION ROOM.
00:07:45 SO YEAH, WITH THE CAMERAS WE RECORD ANY SENSITIVE AREAS
00:07:49 AND THEN ALSO WE HAVE THE IN-PERSON OBSERVATION THAT WE
00:07:50 PROMOTE AND WE SUPPORT THROUGH THE ELECTION CYCLE.
00:07:53 SO IF PEOPLE HAVE CONCERNS THEY'RE WELCOME TO BE THERE TO
00:07:56 WATCH US REMOTELY OR TO VISIT US IN PERSON AND TAKE PART.
00:08:00 >> THANK YOU AND DIRECTOR ARGS I JUST WANT TO BE ON THE RECORD
00:08:02 TOO ABOUT HOW I PERSONALLY AM VERY GRATEFUL FOR THE WORK THAT
00:08:07 YOU'VE BEEN DOING FOR YOU KNOW DECADES NOW THAT HAVE BEEN
00:08:11 DECADES. >> IT'S BEEN A FEW.
00:08:12 YEAH. AND SO I JUST WANT TO EXPRESS
00:08:15 MY GRATITUDE. THANK YOU.
00:08:16 YOU REALLY BEEN MAKING SURE THAT SIMON CISCO HAS BEEN A
00:08:19 LEADING CITY IN INTEGRITY INTEGRITY AROUND THE U.S. FOR
00:08:23 ELECTION. IT IS AMAZING.
00:08:24 LIKE WHEN I FIRST LEARNED ABOUT THE SURVEILLANCE POLICY THAT
00:08:27 YOU BROUGHT FORTH I DIDN'T RECOGNIZE AND THOUGHT ABOUT THE
00:08:30 FACT THAT WHEN THE DEPARTMENT ELECTION AND HAVING THESE LIVE
00:08:34 CAMERA AND LIVESTREAMING AND WHAT IT ACTUALLY MEANS FOR
00:08:38 NOT JUST A CITY BUT AN EXAMPLE FOR THE ENTIRE NATION TO SEE
00:08:39 THAT YOU CAN HAVE LIKE INTEGRITY IN YOUR ELECTION
00:08:43 AND SECURITY IN ELECTION AND AND THIS YOU'RE DOING THIS
00:08:49 THE MOST BIPARTISAN WAY AND THERE'S NO ANY TYPE OF
00:08:53 POLITICAL INVOLVEMENTS WITH THAT.
00:08:54 SO AGAIN I AND IT'S REALLY GREAT TO HEAR THAT YOU ALREADY
00:08:57 HAVE THE LEADERSHIP AND THE FORESIGHT.
00:09:01 OF COURSE WE DO KNOW THAT. BUT JUST HEARING FROM YOU AGAIN
00:09:04 ON THE RECORD PUBLICLY TALKING ABOUT YOUR ANTICIPATION
00:09:07 AND COLLABORATION WITH THAT OTHER CITY AGENCY ANTICIPATING
00:09:12 POTENTIAL YOU KNOW, NOT NOT THAT WE THINK THAT THERE WILL
00:09:15 BE BUT FOR THIS NOVEMBER. BUT I JUST THINK THAT I REALLY
00:09:19 APPRECIATE THE LEADERSHIP AND THE PREPAREDNESS.
00:09:20 THANK YOU. THANK YOU.
00:09:23 >> VICE CHAIR DORSEY THANK YOU CHAIR CHAN I WANT TO ASSOCIATE
00:09:25 MYSELF WITH THE CHAIR'S REMARKS.
00:09:27 I HAVE BEEN AROUND CITY GOVERNMENT LONG ENOUGH TO
00:09:30 REMEMBER WHEN THE DEPARTMENT OF ELECTIONS I WASN'T ALWAYS
00:09:34 WELL-RUN AND THEN THERE WERE SOME ISSUES AND QUESTIONS AND I
00:09:35 THINK YOUR DEPARTMENT AND YOUR LEADERSHIP HAVE BEEN REALLY
00:09:39 GREAT AND I THANK YOU. YOU KNOW, WE TRANSITIONED TO
00:09:42 RANKED CHOICE VOTING AND THERE'S THERE'S A LOT OF
00:09:46 INNOVATIONS THAT SAN FRANCISCO HAS DONE THAT YOU HAVE BEEN
00:09:47 RESPONSIBLE FOR. AND I ALSO JUST APPRECIATE
00:09:51 DURING THIS TIME WHERE THE TRUMP ADMINISTRATION IS REALLY
00:09:54 ELEVATING THESE SORT OF ACCUSATION SIDES OF BALLOT
00:09:59 FRAUD. THE CONCERN IS THAT THIS IS
00:10:00 SOMETHING THAT DELEGITIMIZES DEMOCRACY ITSELF AND I REALLY I
00:10:02 THINK IS IMPORTANT THAT YOU'RE BEING PROACTIVE IN ADDRESSING
00:10:06 THOSE KINDS OF THINGS WITH TRANSPARENCY IN THE WAY THAT
00:10:10 YOU'RE DOING IT. SO I JUST WANTED TO ADD THAT NO
00:10:13 QUESTIONS JUST WANTED TO EXPRESS MY APPRECIATION FOR YOU
00:10:17 AS WELL. >> THANK YOU.
00:10:17 THANK YOU. AND WITH THAT WE'LL GO TO
00:10:18 PUBLIC COMMENT ON THIS ITEM. >> YES, WE'RE NOW OPENING
00:10:21 PUBLIC COMMENT FOR THIS ITEM NUMBER ONE, IF WE HAVE ANY
00:10:24 MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:10:28 >> MADAM CHAIR, WE HAVE NO SPEAKERS SEEING NO PUBLIC
00:10:32 COMMENTS. PUBLIC COMMENT IS NOW CLOSED.
00:10:33 COLLEAGUES, I WOULD LIKE TO SEND THIS ITEM TO FULL BORE
00:10:36 WITH RECOMMENDATION AND A ROLL CALL PLEASE AND ON THAT MOTION
00:10:40 TO REFER THIS RESOLUTION TO THE FULL BOARD WITH THE
00:10:41 RECOMMENDATION VICE CHAIR DORSEY DORSEY I'M AMBASSADOR
00:10:44 SAUTER I CHURCH CAN I CAN I WE HAVE THREE EYES THE MOTION
00:10:49 PASSES. >> THANK YOU AND MR. CLERK
00:10:52 PLEASE CALL ITEM TWO AND THREE TOGETHER AS ITEM NUMBERS TWO
00:10:57 AND THREE ARE RESOLUTIONS ESTABLISHING THE APPROPRIATIONS
00:10:58 LIMITS FOR FISCAL YEAR 2025 TO 2026 PURSUANT TO THE CALIFORNIA
00:11:04 CONSTITUTION. ITEM NUMBER TWO ESTABLISHED
00:11:07 THAT AT APPROXIMATELY 14.6 BILLION DUE TO THE ADDITION OF
00:11:10 LOCAL NONRESIDENTIAL NEW CONSTRUCTION AND THE PERCENT
00:11:14 CHANGE IN POPULATION WITHIN THE SAN FRANCISCO METROPOLITAN AREA
00:11:18 FROM THE PREVIOUS YEAR FOR THE PURPOSE OF COMPUTATION OF ITS
00:11:19 APPROPRIATIONS LIMIT. ITEM NUMBER THREE IS FOR THE
00:11:23 SPECIAL TAX DISTRICTS AND INFRASTRUCTURE REVITALIZE
00:11:26 ATION AND FINANCING DISTRICTS AND DETERMINING OTHER MATTERS
00:11:27 IN CONNECTION THERE WITH AS DEFINED.
00:11:30 >> MADAM CHAIR, THANK YOU. AND TODAY WE HAVE OFFICE OF
00:11:34 PUBLIC FINANCE HERE. OFFICE PUBLIC FINANCE WILL BE
00:11:39 NEXT BUT I'M ALSO FROM THE COMPTROLLER'S OFFICE.
00:11:42 MICHAEL MITTEN THIS IS MY 10TH YEAR PRESENTING THE GANG LIMIT
00:11:45 EIGHT TELLS ME IT'S MY ALUMINUM ANNIVERSARY SO GIFTS ARE
00:11:49 WELCOME UNDER $25 SO THE GANG LIMIT IN SHORT IS A LIMIT ON
00:11:55 TAXES. IT'S A COMPANION TO PROP 13
00:11:58 WHICH LIMITED PROPERTY TAX. THE GANG LIMIT LIMITS ALL TAXES
00:12:01 . IF WE COLLECT TOO MUCH THEN
00:12:02 OVER A TWO YEAR PERIOD WE HAVE TO REFUND THE TAXES.
00:12:06 UM AND THE LIMIT THROUGH WE WE'RE ALLOWED TO DO WE'RE
00:12:10 ALLOWED TO COLLECT INCREASES EACH YEAR BY A INCOME FACTOR OR
00:12:17 THE GROWTH OF COMMERCIAL REAL ESTATE IN THE CITY AS WELL AS
00:12:22 POPULATION GROWTH AND THIS YEAR THE CITY'S ACTUALLY SHRUNK BY
00:12:28 4/10 OF A PERCENT BUT THE 99 BAY AREA COUNTIES HAS INCREASED
00:12:31 AND OUR COMMERCIAL VALUE HAS ALSO INCREASED.
00:12:36 SO THE TOTAL INCREASE IN OUR LIMIT IS MORE THAN 10%.
00:12:43 WE CAN ALSO TAKE AWAY SOME WE CAN ALSO INCREASE THE LIMIT BY
00:12:47 VOTER APPROVAL AND OUR PROP M WHICH WAS PASSED IN 2020 FOR
00:12:50 EXEMPTS ALL OF OUR BUSINESS TAXES FROM THIS LIMIT FOR THE
00:12:55 NEXT FOUR YEARS AND THAT INCREASES OUR LIMIT BY 1.6
00:12:58 BILLION THAT TAKES OUR BASE LIMIT TO 11.7 BILLION AND AFTER
00:13:04 WE DO THE INCREASES FOR THE COST OF LIVING AND THE VOTER
00:13:08 APPROVED INCREASES WE GET TO 14.6 BILLION IS THE LIMIT
00:13:14 AND OUR TAX PROCEEDS THAT ARE SUBJECT TO THE LIMIT HERE ARE
00:13:19 6.3 BILLION WE CAN DO WE CAN REMOVE SOME CAPITAL OUTLAY
00:13:22 AND SOME OTHER FEDERAL REQUIREMENTS AND THAT MAKES OUR
00:13:24 NET TAX PROCEEDS 5.5 BILLION AND THAT LEAVES US 9 BILLION
00:13:28 UNDERNEATH THE LIMIT AND I WILL PASS IT OFF TO MY COLLEAGUE
00:13:46 AND GOOD MORNING CHAIR CHAN AND SUPERVISORS.
00:13:47 >> I'M BRIDGET KATZ WITH THE OFFICE OF PUBLIC FINANCE AND I
00:13:50 WILL BE PRESENTING ON THE RESOLUTION ESTABLISHING THE
00:13:53 APPROPRIATIONS LIMIT FOR FISCAL 2526 FOR SPECIAL TAX DISTRICTS
00:14:00 AND INFRASTRUCTURE AND REVITALIZATION FINANCING
00:14:02 DISTRICTS COMMUNITY FACILITIES DISTRICTS SPECIAL TAX DISTRICTS
00:14:12 AND INFRASTRUCTURE AND REVITALIZATION FINANCING
00:14:16 DISTRICTS ARE GOVERNMENT ENTITIES WHOSE APPROPRIATIONS
00:14:17 LIMITS WERE ESTABLISHED AT THE TIME THAT THESE DISTRICTS WERE
00:14:21 FORMED. THE LAWS GOVERNING THESE
00:14:24 DISTRICTS PROVIDE FOR AN ADJUSTMENT OF THE APPROPRIATION
00:14:28 LIMIT BASED ON TWO FACTORS POPULATION AND THE COST OF
00:14:32 LIVING. POPULATION GROWTH IS DETERMINED
00:14:35 USING THE YEAR OVER YEAR CHANGE IN SAN FRANCISCO CITY
00:14:39 AND COUNTY POPULATION. SO AS MICHAEL JUST MENTIONED
00:14:43 PER THE STATE DEPARTMENT OF FINANCE THIS WAS A DECLINE
00:14:47 IN.39 PERCENT OVER THE LAST YEAR.
00:14:50 >> THE COST OF LIVING IS DETERMINED USING THE CHANGING
00:14:55 CALIFORNIA PER CAPITA PERSONAL INCOME PER THE STATE DEPARTMENT
00:14:59 OF FINANCE. THIS WAS 6.44% FOR A COMBINED
00:15:02 ADJUSTMENT FACTOR OF 6.02% FOR FISCAL 2526 FOR THESE DISTRICTS
00:15:12 . THIS TABLE SHOWS THE FISCAL
00:15:15 2526 APPROPRIATIONS LIMIT BY DISTRICT WHEN APPLYING THAT
00:15:21 6.02% ADJUSTMENT TO LAST YEAR'S APPROPRIATIONS LIMIT.
00:15:25 AND JUST AS AS I MENTIONED THE ORIGINAL APPROPRIATIONS LIMIT
00:15:29 WAS SET AT THE TIME OF FORMATION OF THESE DISTRICTS
00:15:34 AND THAT CONCLUDES MY PRESENTATION AND I'D BE HAPPY
00:15:38 TO ANSWER ANY QUESTIONS FROM COMMITTEE MEMBERS.
00:15:44 >> GOOD MORNING SUPERVISORS NICK REINHARD FROM THE BUDGET
00:15:48 LEGISLATIVE ANALYST'S OFFICE. ITEMS TWO AND THREE ARE TWO
00:15:51 RESOLUTIONS SET IN THE APPROPRIATION LIMITS FOR TAX
00:15:54 PROCEEDS BOTH FOR THE CITY AND THEN FOR SPECIAL TAXES
00:15:58 TRICKS WE SHOWN ON PAGES FOUR AND FIVE OF OUR REPORT THE CITY
00:16:01 APPROPRIATION IS SUBJECT TO THE LIMIT OF $5.5 BILLION WHICH IS
00:16:08 BELOW THE $14.6 BILLION LIMIT THAT WOULD ITEM TWO WOULD
00:16:12 ESTABLISH. AND THEN ON PAGE SIX WE SHOW
00:16:13 THE CHANGES IN APPROPRIATION LIMITS FOR THE SPECIAL TAX
00:16:16 DISTRICTS VERY LITTLE SPEND IN QUALIFIES OR IS SUBJECT TO
00:16:22 THE LIMIT WITHIN THOSE SPECIAL TAX DISTRICTS.
00:16:25 SO WE'RE ALSO NOT ANYWHERE NEAR THE LIMIT ON ANY OF THOSE
00:16:29 DISTRICTS. WE RECOMMENDED APPROVAL OF
00:16:32 ITEMS TWO AND THREE. >> THANK YOU.
00:16:35 I DON'T SEE ANY ANY NAME ROSTER ON THE ROSTER.
00:16:39 >> I DON'T HAVE ADDITIONAL QUESTIONS.
00:16:40 THANK YOU SO MUCH FOR YOUR WORK AND WITH THAT LET'S GO TO
00:16:43 PUBLIC COMMENT ON THESE TWO ITEMS.
00:16:46 >> YES WE'RE NOW OPENING PUBLIC COMMENT FOR BOTH THESE ITEMS
00:16:49 TWO AND THREE IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH
00:16:51 TO ADDRESS THIS COMMITTEE. >> MADAM CHAIR, WE HAVE NO
00:16:54 SPEAKERS SEEING NO PAPA COMMENTED PUBLIC COMMENT IS NOW
00:17:00 CLOSE COLLEAGUES I DO WANT TO FLAG FOR YOU THAT WE HAVE
00:17:08 REQUESTED FOR THE BUDGET AND LEGISLATIVE ANALYST TO
00:17:09 PROVIDE FURTHER ANALYSIS INCLUDES YOU KNOW THAT WE WILL
00:17:16 HAVE HEARING THIS COMING AND END OF THIS MONTH AS WELL
00:17:19 AS EARLY MAY FOR US TO DIVE DEEPER INTO THE CITY'S DEBT
00:17:24 POLICIES, MANAGEMENT'S FEE WAIVER AND RELATED ISSUE SO WE
00:17:31 WILL HAVE MORE CONVERSATION THEN POTENTIALLY INVOLVING THE
00:17:32 COMPTROLLER OR FOR OUR HEARING. SO I JUST WANT TO PUT THAT ON
00:17:39 THE RECORD AS WE ANTICIPATE AS WE INCHING CLOSER TO THE BUDGET
00:17:43 PROCESS. SO WITH THAT I WOULD LIKE TO
00:17:47 SEND THESE TWO ITEMS TO A FULL BOARD WITH RECOMMENDATION AND A
00:17:51 ROLL CALL PLEASE. >> AND ON THAT MOTION OR FOR
00:17:52 BOTH RESOLUTIONS TO THE FULL BOARD WITH THE RECOMMENDATION
00:17:55 VICE CHAIR DORSEY AND DORSEY MEMBER SAUTER SAUTER I CHURCH
00:18:02 AND I CHENNAI WE HAVE THREE EYES THE MOTION PASSES AND WITH
00:18:06 THAT MR. CLERK PLEASE CALL ITEM NUMBER FOUR.
00:18:09 >> ITEM NUMBER FOUR IS AN ORDINANCE EXTENDING FOR AN
00:18:12 ADDITIONAL FIVE YEARS THROUGH JULY 1ST 2031.
00:18:13 THE DELEGATION OF AUTHORITY UNDER THE CHARTER TO THE
00:18:17 GENERAL MANAGER THE PUBLIC UTILITIES COMMISSION PREVIOUSLY
00:18:21 AUTHORIZED AND EXTENDED BY FOUR PASSED ORDINANCES PERTAINING TO
00:18:24 ENTER INTO GRANT AGREEMENTS UNDER THE SFP USES GREEN
00:18:28 INFRASTRUCTURE GRANT PROGRAM WITH TERMS OF UP TO 20 YEARS
00:18:31 AFTER THE PROJECT COMPLETION DATE HAS DEFINED BY THE GRANT
00:18:35 AGREEMENTS. >> MADAM CHAIR, THANK YOU.
00:18:39 >> AND TODAY WE HAVE SRP YOU SEE HERE.
00:18:42 THANK YOU. GOOD MORNING SUPERVISORS.
00:18:47 MY NAME IS WILLIS LOGSDON. I'M A SENIOR WATERSHED PLANNER
00:18:50 IN THE WASTEWATER ENTERPRISE AT THE SPC AND TODAY I'M
00:18:53 INTRODUCING AN ORDINANCE THAT EXTENDS THIS OFFICE'S AUTHORITY
00:18:54 TO ADMINISTER ITS GREEN INFRASTRUCTURE GRANT PROGRAM
00:18:58 THROUGH JUNE OF 2031. AND I'D LIKE TO THANK
00:19:00 SUPERVISOR MANAGEMENT FOR SPONSORING THIS LEGISLATION.
00:19:06 >> SO BEFORE WE DIVE IN, I JUST WANTED TO GIVE A LITTLE BIT OF
00:19:08 BACKGROUND. SAN FRANCISCO HAS A COMBINED
00:19:11 SEWER SYSTEM WHICH MEANS THAT BOTH STORMWATER AND WASTEWATER
00:19:14 FLOW THROUGH THE SAME PIPES. MANAGING STORMWATER IS
00:19:16 ESSENTIAL TO PROTECTING THE RELIABILITY AND THE PERFORMANCE
00:19:19 OF THAT SYSTEM. >> ONE WAY THAT WE MANAGE
00:19:22 STORMWATER IS THROUGH GREEN INFRASTRUCTURE WHICH IS A SET
00:19:25 OF ENGINEERED STORMWATER MANAGEMENT TOOLS THAT CAPTURE
00:19:29 SLOW DOWN AND CLEAN STORMWATER. THE GOAL IS TO REDUCE THE
00:19:30 VOLUME IN THE FLOW OF WATER ENTERING THE COMBINED SEWER
00:19:34 SYSTEM. >> SOME EXAMPLES INCLUDE RAIN
00:19:37 GARDENS, GREEN ROOFS, RAINWATER HARVESTING AND PERMEABLE
00:19:38 PAVEMENT. IN ADDITION TO REDUCING
00:19:41 PRESSURE ON THE SEWER SYSTEM, THESE PROJECTS ALSO DELIVER
00:19:45 PUBLIC BENEFITS LIKE NEIGHBORHOOD GREENING, CLIMATE
00:19:46 RESILIENCE AND IMPROVED PUBLIC SPACES.
00:19:52 GREEN INFRASTRUCTURE WORKS BY CAPTURING STORMWATER RUNOFF AS
00:19:56 IT FLOWS OFF OF CONCRETE AND OTHER IMPERVIOUS SURFACES
00:19:58 IN OUR CITY. THE AREA THAT CONTRIBUTES
00:20:01 STORMWATER TO THE GREEN INFRASTRUCTURE IS CALLED THE
00:20:04 DRAINAGE MANAGEMENT AREA. AND THIS CONCEPT OF THE
00:20:05 DRAINAGE MANAGEMENT AREA IS IMPORTANT FOR THIS PARTICULAR
00:20:09 PROGRAM BECAUSE IT IS HOW WE SET OUR MAXIMUM GRANT FUNDING
00:20:12 PER PROJECT. IN THE EXAMPLE SHOWN HERE THE
00:20:16 SPORTS COURT COMPRISES AN AREA OF ABOUT HALF AN ACRE WHICH
00:20:19 FLOWS TOWARDS AN ENGINEERED PLANTER THAT IS SIZED
00:20:23 AND DESIGNED TO COLLECT AND STORE THAT WATER.
00:20:26 >> IN THE GREEN INFRASTRUCTURE GRANT PROGRAM IS JUST ONE
00:20:30 COMPONENT OF THE S A FEW C'S CITYWIDE STRATEGY FOR BUILDING
00:20:33 GREEN INFRASTRUCTURE. OUR AGENCY'S LONG TERM VISION
00:20:34 IS TO MANAGE 1 BILLION GALLONS OF STORMWATER EACH YEAR USING
00:20:40 GREEN INFRASTRUCTURE BY THE YEAR 2050.
00:20:41 THAT'S EQUIVALENT TO CAPTURING ABOUT 10% OF THE RAIN THAT
00:20:45 FALLS ON SAN FRANCISCO IN AN AVERAGE YEAR.
00:20:48 AND IN ORDER TO REACH THAT GOAL WE HAVE THREE APPROACHES THAT
00:20:49 WE UTILIZE. THE FIRST IS THE STORMWATER
00:20:52 MANAGEMENT ORDINANCE WHICH REGULATES NEW AND REDEVELOPMENT
00:20:55 PROJECTS IN THE CITY WHICH WAS IMPLEMENTED IN 2010.
00:20:58 >> WE HAVE CAPITAL PROJECTS THAT SIPC BUILDS AND OPERATES
00:21:02 OURSELVES AND WE HAVE GRANT PROGRAMS THAT OFFER INCENTIVES
00:21:05 TO PROPERTY OWNERS AND COMMUNITY GROUPS TO BUILD
00:21:06 GREEN INFRASTRUCTURE INCLUDING THE GI GRANT PROGRAM.
00:21:10 AND WE'RE CURRENTLY ABOUT ONE THIRD OF THE WAY TO OUR BILLION
00:21:13 GALLON GOAL AND ON TRACK TO MEET THAT GOAL BY 2050.
00:21:19 >> THE GREEN INFRASTRUCTURE GRANT WAS LAUNCHED IN 2019 TO
00:21:22 PROVIDE FUNDING FOR LARGE PROPERTIES IN SAN FRANCISCO TO
00:21:25 BUILD GREEN INFRASTRUCTURE THAT REDUCES THE AMOUNT OF
00:21:26 STORMWATER ENTERING THE SEWER SYSTEM.
00:21:29 THE PROGRAM PROVIDES FUNDING FOR BOTH DESIGN
00:21:30 AND CONSTRUCTION ON FACILITIES IN BOTH PUBLIC AND PRIVATE
00:21:33 PROPERTIES. THE PROGRAM TARGETS LARGE
00:21:37 HIGHLY IMPERVIOUS AREAS FOR EXAMPLE ASPHALT SCHOOLYARDS
00:21:41 AND LARGE PARKING LOTS WHICH ARE THE MAIN CONTRIBUTORS OF
00:21:44 STORMWATER TO OUR SYSTEM. >> AWARDED PROJECTS ENTER INTO
00:21:46 A GRANT AGREEMENT WITH SFP U.S. AND THE PROPERTY OWNER IS
00:21:49 RESPONSIBLE FOR MAINTAINING THE PROJECT FOR THE DURATION OF THE
00:21:53 20 YEAR AGREEMENT. >> THE 20 YEAR MAINTENANCE
00:22:00 REQUIREMENT IS INTENDED TO ALIGN WITH THE TYPICAL USEFUL
00:22:03 LIFE OF A GREEN INFRASTRUCTURE ASSET.
00:22:04 THIS ALSO ALIGNS WITH THE EXPECTED PERFORMANCE OF
00:22:07 PROJECTS DELIVERED THROUGH OUR WASTEWATER CAPITAL PROGRAM.
00:22:11 BY INVESTING AS A RATEPAYER DOLLARS IN THESE PROJECTS WE
00:22:15 BELIEVE THEY SHOULD HAVE THE EQUIVALENT LEVEL OF PERFORMANCE
00:22:16 OVER THEIR LIFECYCLE AS IF WE'RE BUILDING THE PROJECTS
00:22:19 OURSELVES. AND LASTLY, THE 20 YEARS OF
00:22:20 MAINTENANCE ALSO HELPS ENSURE THAT THESE PROJECTS CAN
00:22:23 MEANINGFULLY CONTRIBUTE TO OUR CITYWIDE 1 BILLION GALLON GOAL
00:22:29 . >> THE PROGRAM HAS FIVE
00:22:30 ELIGIBILITY CRITERIA FIRSTLY BEING LOCATED ON A PARTIAL OR
00:22:34 PUBLIC RIGHT OF WAY THAT CONNECTS TO AN SFP U.S. SEWER
00:22:35 SYSTEM. WE ALSO HAVE A MINIMUM PROJECT
00:22:39 SIZE REQUIREMENT OF THAT HALF AN ACRE DRAINAGE MANAGEMENT
00:22:42 AREA THAT I MENTIONED EARLIER. >> THERE IS ALSO A PERFORMANCE
00:22:45 REQUIREMENT RELATED TO THE DESIGN OF THE FACILITIES TO
00:22:47 ENSURE THAT EACH PROJECT CAPTURES AN APPROPRIATE VOLUME
00:22:50 OF STORMWATER. AND THE GRANT TEAM OF THE
00:22:53 APPLICATION TEAM MUST HAVE EXPERIENCE DESIGNING OR
00:22:54 CONSTRUCTING PROJECTS OF A SIMILAR SIZE AND BE IN GOOD
00:22:58 STANDING WITH OUR PROGRAM. AND THEN LASTLY EACH PROJECT
00:23:01 MUST ACHIEVE AT LEAST TWO ADDITIONAL CO-BENEFITS BEYOND
00:23:04 JUST STORMWATER MANAGEMENT INCLUDING COMMUNITY ENGAGEMENT
00:23:07 ,CLIMATE RESILIENCE AND EDUCATION.
00:23:11 TO DATE WE HAVE AWARDED ABOUT $30 MILLION IN GRANTS TO 29
00:23:15 PROJECTS INCLUDING 11 PUBLIC SCHOOLS, FIVE PUBLIC PARKS,
00:23:18 NINE PRIVATE SCHOOLS, ONE HOUSING DEVELOPMENT AND ONE
00:23:22 ARTIST COOPERATIVE. NINE PROJECTS HAVE BEEN
00:23:24 COMPLETED TO DATE AND THERE ARE CURRENTLY NINE MORE PROJECTS
00:23:26 IN CONSTRUCTION THAT WILL BE COMPLETE LATER THIS YEAR.
00:23:29 >> WHEN COMPLETE THESE PROJECTS WILL MANAGE ABOUT 18 MILLION
00:23:32 GALLONS OF STORMWATER EACH YEAR.
00:23:33 >> OVERALL WE'RE REALLY HAPPY WITH THE OUTCOMES WE'VE SEEN
00:23:36 FROM THIS PROGRAM SO FAR AND THE LEVEL OF PARTICIPATION
00:23:39 TO DATE. OUR TEAM'S GONE OUT TO ABOUT 68
00:23:42 DIFFERENT PROPERTIES TO ASSESS THEM FOR OPPORTUNITIES FOR
00:23:44 GREEN INFRASTRUCTURE AND THE RESULT HAS BEEN A PRETTY
00:23:47 CONSISTENT RATE OF APPLICATIONS EACH YEAR OVER THE LAST SEVEN
00:23:50 YEARS WITH AN AVERAGE OF FOUR NEW PROJECTS AWARDED EACH YEAR
00:23:56 . >> THE PROGRAM IS FUNDED
00:23:57 THROUGH THE WASTEWATER CAPITAL PLAN WHICH INCLUDES BOTH GRANT
00:24:01 FUNDING AND FUNDS FOR THE PROGRAM.
00:24:01 >> ADMINISTRATION. >> TO DATE WE HAVE AWARDED
00:24:05 ABOUT HALF OF THE 61.3 MILLION ALLOCATED IN THE CAPITAL PLAN.
00:24:07 APPLICATIONS ARE REVIEWED AND AWARDED ON AN ANNUAL BASIS
00:24:11 WITH THE NEXT APPLICATION CYCLE EXPECTED TO BE THIS FALL.
00:24:14 GRANT AWARDS ARE BASED ON THE SIZE OF THE PROJECT IN THE
00:24:18 PROPOSED BUDGET. >> FOR THAT WE USE A COST PER
00:24:19 ACRE MANAGED METRIC TO CALCULATE THE MAXIMUM GRANT
00:24:22 AWARD FOR EACH PROJECT AND THAT'S BASED ON THE
00:24:26 DRAINAGE MANAGEMENT AREA. SO IN SUMMARY PROJECTS WITH
00:24:29 LARGER DRAINAGE MANAGEMENT AREAS THAT CAPTURE MORE
00:24:31 STORMWATER ARE ELIGIBLE FOR MORE FUNDING.
00:24:34 IN ADDITION TO THAT COSTS PER ACRE METRIC WE ALSO HAVE A PER
00:24:37 PROJECT CAP OF 2.5 MILLION IN FUNDING PER PROJECT.
00:24:43 SINCE THE LAUNCH OF THE PROGRAM IN 2019 AS A PIECE HE HAS COME
00:24:45 BEFORE THE BOARD OF SUPERVISORS ROUGHLY EVERY TWO YEARS TO
00:24:48 EXTEND THE GENERAL MANAGERS DELEGATED AUTHORITY TO ENTER
00:24:51 INTO AGREEMENTS BEYOND TEN YEARS BEFORE COMING TO THE
00:24:54 BOARD. WE ALSO UPDATE THE PROGRAM
00:24:55 RULES AT OUR COMMISSION. >> THAT'S A PARK COMMISSION
00:24:59 RECENTLY APPROVED A RESOLUTION ADOPTING SEVERAL UPDATES TO THE
00:25:02 PROGRAM. THE MAXIMUM COST PER ACRE WAS
00:25:06 INCREASED FROM 1,035,000 PER IMPERVIOUS ACRE MANAGED TO
00:25:11 1,120,000 PER ACRE MANAGED TO ACCOUNT FOR INFLATION AND TO
00:25:16 CONTINUE TO BE ABLE TO COVER THE FULL COST OF DESIGN
00:25:17 AND CONSTRUCTION OF THESE PROJECTS AND THE PER PROJECT
00:25:20 MAXIMUM GRANT AWARD OF 2.5 MILLION REMAINED IN PLACE
00:25:24 AND IN THE SPIRIT OF CONTINUOUS IMPROVEMENT WE MADE REVISIONS
00:25:28 TO THE PROGRAM ELIGIBILITY CRITERIA AND REQUIREMENTS WHICH
00:25:31 ARE AIMED AT CLARIFYING PROGRAM RULES AND MAXIMIZING THE
00:25:32 BENEFITS OF THE PROGRAM. IN THE PAST THE DELEGATED
00:25:36 AUTHORITY TO THE SIPC GENERAL MANAGER SUNSET EVERY TWO YEARS.
00:25:39 HOWEVER, BECAUSE TODAY WE ARE REQUESTING A FIVE YEAR
00:25:43 EXTENSION TO THE GENERAL MANAGER'S DELEGATED AUTHORITY,
00:25:47 OUR COMMISSION ALSO AUTHORIZED THE SFP GENERAL MANAGER TO
00:25:51 INCREASE THE MAXIMUM GRANT AWARD ON AN ANNUAL BASIS TO
00:25:55 ACCOUNT FOR CONSTRUCTION COST INFLATION.
00:25:58 AND THIS WILL ALLOW THE PROGRAM TO UPDATE THE COST PER ACRE AS
00:26:01 NEEDED FOR EACH ANNUAL APPLICATION CYCLE.
00:26:02 AND FOR THAT WE WILL USE THE SAN FRANCISCO ANNUAL
00:26:06 INFRASTRUCTURE COST CONSTRUCTION COST INFLATION
00:26:10 ESTIMATE WHICH IS A STANDARD ESCALATION INDEX USED FOR
00:26:14 INFRASTRUCTURE PLANNING IN THE CITY.
00:26:15 AND THEN LASTLY THE COMMISSION AUTHORIZED AS A PUC'S GENERAL
00:26:17 MANAGER TO APPROVE FUTURE NON-MATERIAL CHANGES TO THE
00:26:21 PROGRAM GUIDELINES SUCH AS PROCESS IMPROVEMENTS
00:26:24 AND CLARIFYING EDITS TO THE GUIDELINES.
00:26:28 >> SO IN SUMMARY TODAY WE ARE SEEKING AN EXTENSION OF THE
00:26:33 BOARD'S DELEGATED AUTHORITY TO ALLOW THE SPC GENERAL MANAGER
00:26:36 TO ENTER INTO AGREEMENTS WITH TERMS OF UP TO 20 YEARS AFTER
00:26:40 PROJECT COMPLETION. >> THAT WILL ENSURE THAT THE
00:26:44 GRANT FUNDED ASSETS ARE MAINTAINED FOR THEIR USEFUL
00:26:45 LIFE AND EXTENDING THIS AUTHORITY WILL ALLOW SPC TO
00:26:48 CONTINUE PARTNERING WITH PROPERTY OWNERS AND COMMUNITY
00:26:51 ORGANIZATIONS TO IMPLEMENT GREEN INFRASTRUCTURE THAT
00:26:55 BENEFITS BOTH OUR SEWER SYSTEM AND OUR NEIGHBORHOODS.
00:26:56 >> WITH THAT I WANT TO THANK YOU FOR YOUR TIME.
00:27:00 >> I'M HAPPY TO ANSWER ANY QUESTIONS ON THIS LEGISLATION
00:27:03 AND MY COLLEAGUE JEREMY SPITZ ALSO HAS A COUPLE OF AMENDMENTS
00:27:07 TO INTRODUCE TO THE BOARD AS WELL.
00:27:08 >> GREAT. >> COULD WE GO OVER THE
00:27:12 AMENDMENTS RIGHT NOW? YES.
00:27:13 THANK YOU. >> THANK YOU, WILL.
00:27:15 HELLO, CHAIR CHINS. MEMBERS OF THE BUDGET FINANCE
00:27:20 COMMITTEE MINUS JEREMY SPITZ. THESE AMENDMENTS HAVE BEEN
00:27:24 DISTRIBUTED TO YOU. THEY ARE JUST CLERICAL
00:27:27 AMENDMENTS THAT WERE OFFERED TO US BY THE CITY ATTORNEY AFTER
00:27:28 WE HAD ALREADY INTRODUCED THE ORDINANCE.
00:27:30 SO I CAN READ THEM INTO THE RECORD VERY QUICKLY.
00:27:32 PLEASE BEAR WITH ME THERE ARE A FEW.
00:27:35 SO ON PAGE ONE IN THE LONG TITLE ADDING AN S TO ORDINANCE
00:27:39 NUMBERS AND THEN STRIKING ORDINANCE NUMBER AFTER ALL OF
00:27:43 THE DIFFERENT ORDINANCE NUMBERS ON PAGE TWO AND 16 STRIKING
00:27:46 CITY BEFORE ADMINISTRATIVE CODE ON PAGE TWO AND 24 ADDING THE
00:27:51 WORD OF AFTER MODIFICATIONS ON PAGE THREE LINE SEVEN ADDING
00:27:55 JULY 31ST OF EACH OF EACH YEAR ON PAGE THREE LINE 12 ADDING OR
00:28:03 THAT BEFORE MUNICIPAL A COMBINED SEWER SYSTEM AREA OR
00:28:07 THE MUNICIPAL OR ON PAGE THREE LINE 18 ADDING A DASH BETWEEN
00:28:13 THREE AND QUARTERS ON PAGE FOUR LINE NINE.
00:28:14 STRIKING THE WORD IS AND HEADING THE WORD ARE ON
00:28:18 PAGE FOUR LINE 14 AGAIN SPECIFYING JULY 31ST AND THEN
00:28:23 ADDING THE WORD COST BEFORE ESCALATION ON PAGE FOUR LINE 18
00:28:26 AND 19. STRIKING THE WORD UPDATED
00:28:30 AND ADDING THE WORD CURRENT. PAGE FIVE LINE 14 THROUGH 23
00:28:33 STRIKING ALL OF THE FILE NUMBERS AND JUST KEEPING THE
00:28:38 ORDINANCE NUMBERS ON PAGE SIX LINE 18 AND 19 STRIKING TO
00:28:44 AFTER AMENDMENTS AND ADDING THE WORD TO AFTER MODIFICATIONS
00:28:48 AND THEN AFTER GRANT AGREEMENTS ADDING THAT DO NOT EXTEND THE
00:28:52 TERMS OF THE AGREEMENTS BEYOND 20 YEARS.
00:28:55 ON PAGE SEVEN, LINE 22 AND 23 AGAIN ADDING ORDINANCE NUMBERS
00:28:58 AND THEN STRIKING THE INDIVIDUAL ORDINANCE NUMBER
00:29:01 BEFORE ALL THE ORDINANCE NUMBERS AND PAGE EIGHT LINE TO
00:29:05 SPECIFYING THAT THE ORDINANCE SHALL BECOME EFFECTIVE AT 12
00:29:09 A.M. ON THE 31ST DAY AFTER ENACTMENT.
00:29:12 >> THANK YOU. THANK YOU.
00:29:13 AND CONFIRMING WITH OUR DEPUTY CITY ATTORNEY THAT NONE OF
00:29:17 THESE AMENDMENTS ARE SUBSTANTIVE.
00:29:20 HE'S NODDING SO THANK YOU AND I JUST DEFINITELY WANT TO THANK
00:29:24 AS A P YOU SEE FOR THE GREAT INFRASTRUCTURE PROGRAM HAS
00:29:28 BENEFITED THE RICHMOND GREATLY BOTH FOR OUR LAFAYETTE
00:29:31 ELEMENTARY SCHOOL AND AS WELL AS OUR ALAMO ELEMENTARY SCHOOL.
00:29:35 THE KIDS LOVE IT. I KNOW PARTICULARLY FOR
00:29:39 LAFAYETTE ELEMENTARY THEY EVEN HAVE LIKE BLUEBERRIES GROWN
00:29:42 IN THEIR LITTLE TINY GREEN GARDEN NOW AND BUT OVERALL ALSO
00:29:49 HAVE OTHER INFRASTRUCTURE THAT SUPPLEMENT IT OVERALL.
00:29:54 SO IT IT IS ACTUALLY WHAT HAPPENED WHEN AND I'M HAPPENING
00:29:58 IS WITH THE GREEN INFRASTRUCTURE IT ADDS ALLOW
00:29:59 THE SCHOOL TO HAVE THE OPPORTUNITY TO ADD MANY OTHER
00:30:02 FEATURES TO THEIR OUTDOOR SPACE INSTEAD OF ASPHALT CONCRETE
00:30:10 OUTSIDE. SO THANK YOU FOR THAT WORK
00:30:11 AND SUPERVISOR SOUDER THANK YOU CHAIR AND THANK YOU FOR THE
00:30:15 PRESENTATION AND FOR THE THE PROGRAM.
00:30:18 I THINK IT'S A WONDERFUL PROGRAM AND I HAVE NO CONCERNS
00:30:20 ABOUT THIS EXTENSION. ONE QUESTION JUST WHEN WE
00:30:23 LOOKING AT THE MAP, YOU KNOW, I RECOGNIZE THAT WITH THE
00:30:27 CRITERIA I THINK WE'RE GOING TO WE ARE SEEING MORE FUNDING
00:30:30 AND MORE PROJECTS ON THE WEST SIDE ON THE SOUTH SIDE AND I
00:30:34 ANTICIPATE THAT WILL CONTINUE JUST GIVEN THE THAT THAT
00:30:38 MINIMUM ACREAGE BUT THEN YOU HAD EARLY IN THE PRESENTATION
00:30:42 YOU HAD A MAP THAT SHOWED ALL OF THE POTENTIAL GREEN SITES
00:30:45 THROUGHOUT THE CITY AND I GUESS I'M TRYING TO TO SQUARE SQUARE
00:30:49 THOSE UP, RIGHT? IF WE'RE NOT SEEING MANY
00:30:52 IN DISTRICT THREE DISTRICT TWO OF THESE PROJECTS FUNDED, HOW
00:30:55 DO WE GET THAT GREEN INFRASTRUCTURE?
00:30:59 WHAT ARE THE OPPORTUNITIES IN OTHER FUNDING WAYS TO TO GET
00:31:03 THAT? >> YEAH, THAT'S A GREAT
00:31:04 QUESTION. SO YEAH I THINK THE YOU KNOW
00:31:06 THE HALF ACRE MINIMUM SIZE REQUIREMENT COULD HAVE
00:31:08 SOMETHING TO DO WITH THAT THAT HAS, YOU KNOW, SOME LIMITS ON
00:31:10 THE TYPE OF PROPERTIES THAT THAT COULD BE ELIGIBLE FOR THIS
00:31:15 PROGRAM. SO I THINK IN THE FUTURE IF WE
00:31:17 START TO, YOU KNOW, RUN OUT OF OPPORTUNITIES FOR LARGE SITES,
00:31:19 WE WOULD CONSIDER, YOU KNOW, ADJUSTING THAT THAT THRESHOLD
00:31:22 TO A SMALLER MINIMUM SIZE THAT COULD, YOU KNOW, CREATE
00:31:26 OPPORTUNITIES FOR SMALLER PROPERTIES TO PARTICIPATE
00:31:29 IN THIS PROGRAM. AND THEN WE ALSO DO HAVE OTHER
00:31:30 GRANT PROGRAMS OUTSIDE OF THE GREEN INFRASTRUCTURE GRANT.
00:31:34 WE ALSO OFFER WHAT'S CALLED THE URBAN WATERSHED STEWARDSHIP
00:31:38 GRANT THAT WILL BE COMING BACK ONLINE IN THE NEXT YOU KNOW,
00:31:41 NEXT YEAR OR SO THAT PROVIDES OPPORTUNITIES FOR GRANT FUNDING
00:31:45 FOR SMALLER SCALE PROJECTS. AND SO WE ARE TRYING TO, YOU
00:31:47 KNOW, PROVIDE OPPORTUNITIES FOR YOU KNOW, DIFFERENT LAND USES
00:31:50 TO BE ABLE TO, YOU KNOW, CAPTURE STORMWATER LIKE
00:31:54 THROUGHOUT THE CITY WHEREVER IT'S FEASIBLE.
00:31:55 AND SO IF A PROJECT OR A PROPERTY ISN'T ELIGIBLE FOR
00:31:58 THIS PROGRAM THERE MIGHT BE OTHER YOU KNOW, OTHER AVENUES
00:32:01 FOR FOR FUNDING THAT THAT WE COULD OFFER.
00:32:04 GOOD. THANK YOU.
00:32:05 AND I ENCOURAGE THAT. I KNOW THIS WEEKEND
00:32:06 IN CHINATOWN WE'RE DOING THE RAIN GUARDIANS IN SPOFFORD
00:32:09 ALLEY SO I LOOK FORWARD TO THAT AND AND THANK YOU FOR ALL YOUR
00:32:12 WORK ON THIS. THANK YOU.
00:32:15 >> THANK YOU. AND SO WITH THAT LET'S GO TO
00:32:17 POPLAR COMMON ON THIS ITEM. >> THIS WAS AN OPENING PUBLIC
00:32:23 COMMENT FOR THIS ITEM NUMBER FOUR IF WE HAVE ANY MEMBERS OF
00:32:25 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE MADAM CHAIR, WE
00:32:28 HAVE NO SPEAKERS SO YOU KNOW PUBLIC COMMENT PUBLIC COMMENT
00:32:32 IS NOW CLOSED. >> COLLEAGUES, I WOULD LIKE TO
00:32:33 MAKE THE MOTION TO ACCEPT THE AMENDMENT CLERICAL AMENDMENT
00:32:38 PROPOSED BY AS OPPOSE SEE AND MOVE THE AMENDED
00:32:43 LEGISLATION TO A FULL BOARD WITH RECOMMENDATION AND A ROLL
00:32:47 CALL. PLEASE.
00:32:49 >> AND ON THAT MOTION THAT WE AMEND THIS ORDINANCE AS ARE
00:32:53 READ INTO THE RECORD BY THE DEPARTMENT AND TO REFER THE
00:32:55 ORDINANCE TO THE FULL BOARD WITH THE RECOMMENDATION AS
00:32:58 AMENDED. VICE CHAIR DORSEY DORSEY I
00:33:01 REMEMBER SUTTER SUTTER I CHURCH MAN I CHENNAI WE HAVE THREE
00:33:05 EYES. >> THE MOTION PASSES THANK YOU
00:33:08 AND MR. CLERK PLEASE CALL ITEM NUMBER FIVE.
00:33:12 >> YES. ITEM NUMBER FIVE IS A
00:33:13 RESOLUTION APPROVING AND AUTHORIZING THE GENERAL
00:33:14 MANAGER OF THE SAN FRANCISCO PUBLIC UTILITIES COMMISSION TO
00:33:17 EXECUTE A CONTRACT FOR THE HETCH HETCHY WATER AND POWER
00:33:21 NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION
00:33:24 COMPLIANCE AND AUDIT SUPPORT TO ARCHER ENERGY SOLUTIONS L C TO
00:33:28 PROVIDE AS NEEDED PROFESSIONAL SERVICES TO HATCH YOU WATER
00:33:32 AND POWER TO MEET NORTH AMERICAN ELECTRIC RELIABILITY
00:33:36 CORPORATION WESTERN ELECTRICITY COORDINATING COUNCIL CALIFORNIA
00:33:40 INDEPENDENT SYSTEM OPERATOR AND THE CALIFORNIA PUBLIC
00:33:44 UTILITIES COMMISSION REGULATORY REQUIREMENTS FOR AN AMOUNT NOT
00:33:48 TO EXCEED 11.6 MILLION FOR THE DURATION OF FIVE YEARS WITH AN
00:33:51 ANTICIPATED TIMEFRAME FROM MAY 2026 THROUGH MAY 2031 PURSUANT
00:33:55 TO THE CHARTER VENTURE. >> THANK YOU.
00:33:59 AND AGAIN WE HAVE YOU SEE HERE. GOOD MORNING.
00:34:03 MY NAME IS ADAM MOSER QUIT I'M THE DIVISION MANAGER FOR HATCH
00:34:08 HATCH YOU WATER AND POWER OF THE SAN FRANCISCO PUBLIC
00:34:10 UTILITY COMMISSION BASED ON A MOCCASIN HERE TO REQUEST
00:34:14 APPROVAL FOR A PROFESSIONAL SERVICES THREE 27IN WP NEAR
00:34:17 COMPLIANCE AUDIT AND SUPPORT HATCH ACT YOU WATER AND POWER
00:34:25 OWNS AND OPERATES COMPONENTS OF THE BULK ELECTRICAL POWER
00:34:28 SYSTEM. THIS IS THE NETWORK OF POWER
00:34:29 GENERATION AND TRANSMISSION NETWORKS THAT BRING ENERGY TO
00:34:32 THE CUSTOMERS. HETCH HETCHY OPERATES FOUR
00:34:36 ELECTRICAL POWERHOUSES NUMEROUS MILES OF HIGH VOLTAGE
00:34:40 TRANSMISSION LINES, TWO SUBSTATIONS AND TWO SWITCH CARS
00:34:43 THAT ARE INTERCONNECTED TO OTHER UTILITIES INCLUDING PGE
00:34:46 ANY TURLOCK IRRIGATION DISTRICT AND MODESTO IRRIGATION
00:34:51 DISTRICT. >> THE BULK ELECTRICAL SYSTEM
00:34:54 IS OVERSEEN BY NURK, THE NORTH AMERICAN ELECTRIC RELIABILITY
00:34:59 CORPORATION AND ITS SUBSIDIARIES WESTERN THE WEC
00:35:03 WESTERN ELECTRICITY COORDINATING COUNCIL AS WELL AS
00:35:07 THE CALIFORNIA PUBLIC UTILITY COMMISSION.
00:35:10 THIS REGULATORY OVERSIGHT BY NURK SERVES TO PROVIDE A
00:35:14 RELIABLE ELECTRICAL SYSTEM FOR ALL OF THE POWER CUSTOMERS
00:35:15 IN THE U.S. THAT REGULATORY OVERSIGHT OVERSEES OPERATIONAL
00:35:21 AND PLANNING COMPONENTS OF THE POWER GENERATION
00:35:23 AND TRANSMISSION SYSTEM AS WELL AS SECURITY OVERSIGHT INCLUDING
00:35:26 CYBERSECURITY OF COMPONENTS OF THE BULK ELECTRICAL SYSTEM.
00:35:30 THESE STANDARDS REQUIRE THE BULK ELECTRICAL, SOME ASSET
00:35:34 OWNERS AND OPERATORS TO MEET ALL OF THESE COMPLIANCE
00:35:37 STANDARDS. NURK HAS THE AUTHORITY FOR
00:35:38 FINANCIAL FINES FOR VIOLATIONS OTHER REGULATORY REGULATIONS,
00:35:45 OPERATIONAL RESTRICTIONS AND CAN RESULT IN MITIGATION
00:35:49 COSTS AS WELL AS REPUTATIONAL HARM.
00:35:53 THE PROFESSIONAL SERVICES CONTRACT 327 PROVIDES SUPPORT
00:35:56 FOR MEETING THESE RELIABILITY STANDARDS 56 RELIABILITY
00:36:03 STANDARDS THAT AFFECT ROUGHLY OVER 1800 DEVICES WITHIN THE
00:36:07 SRP YOU SEE COMPONENTS OF THE BULK ELECTRICAL SYSTEM ALL OF
00:36:11 THESE STANDARDS REQUIRE PROCEDURAL DOCUMENTATION
00:36:14 DEVELOPMENT, IMPLEMENTATION OF OPERATIONAL PROCEDURES, STAFF
00:36:18 TRAINING AND ALL OF THESE STANDARDS AND COMPONENTS ARE
00:36:21 SUBJECT TO AUDITS AND UPDATES. >> SO THE CONTRACT PROVIDES
00:36:28 MAINTENANCE SUPPORT OF THE COMPLIANCE PROGRAM OVERALL
00:36:31 TRAINING FOR STAFF DOCUMENT DEVELOPMENT SUBJECT MATTER
00:36:36 EXPERTISE FOR NURK COMPLIANCE AS WELL AS NURK IMPLEMENTATION
00:36:39 AND THEN PREPAREDNESS FOR AUDITS WHETHER IT'S A NURK
00:36:44 AUDIT OR A SELF AUDIT AS DIRECTED BY NURK AND THEN
00:36:47 SUPPORT FOR REVISING OR CREATING PROCEDURES FOR NEW
00:36:51 STANDARDS THAT MAY COME TO LIGHT.
00:36:52 >> SO WITH THAT I'LL TAKE ANY QUESTIONS AND ASK FOR THE
00:36:56 SUPPORT FOR THE PROFESSIONAL SERVICES 327 CONTRACT.
00:37:01 >> THANK YOU. ITEM FIVE IS A RESOLUTION THAT
00:37:08 APPROVES THE NEW AGREEMENT BETWEEN THE PARKS POWER
00:37:11 DIVISION AND ARCHER ENERGY SOLUTIONS.
00:37:15 THE CONTRACT HAS A FIVE YEAR TERM AND A VALUE OF $11.6
00:37:17 MILLION FOR THOSE FIVE YEARS. THERE IS ALSO AN OPTION TO
00:37:22 EXTEND THE AGREEMENT BY FOUR ADDITIONAL YEARS.
00:37:23 AND THIS AGREEMENT WOULD ALLOW ARCHER TO CONTINUE TO PROVIDE
00:37:26 SAFETY AND OPERATIONAL COMPLIANCE REVIEWS TO ENSURE
00:37:29 THAT THE POWER DIVISION COMPLIES WITH THE REGULATORY
00:37:32 REGULATORY STANDARDS. WE SHOW THE BUDGET FOR THE
00:37:36 CONTRACT ON PAGE 12 OF OUR REPORT.
00:37:37 YOU CAN SEE THIS IS ABOUT A $2.3 MILLION A YEAR CONTRACT
00:37:41 FUNDED BY POWER CUSTOMER REVENUES THAT IS SIMILAR TO
00:37:47 WHAT THEY'VE BEEN SPENDING OVER THE PAST COUPLE OF YEARS.
00:37:49 SO I THINK IT'S A REASONABLE BUDGET.
00:37:51 THERE IS A CURRENT CONTRACT THAT HAS ABOUT $750,000 OF
00:37:54 REMAINING SPENDING ON IT AND A TERM THAT EXTENDS THROUGH MARCH
00:38:01 2027. THIS CONTRACT I THINK MAY BE
00:38:02 UNDER SIZED RELATIVE TO HISTORICAL SPENDING AND THE
00:38:06 FACT THAT THEY'RE BILLING RATES CPI EVERY YEAR SO THAT
00:38:12 REMAINING POOL OF FUNDS COULD BE USED TO TOP UP THIS
00:38:14 CONTRACT. WE RECOMMEND APPROVAL OF ITEM
00:38:16 FIVE. >> UNDERSTOOD.
00:38:17 I THINK I JUST WANT TO CLARIFICATION ON WHAT YOU JUST
00:38:21 SAID FOR THE BOE FOR MR. MINOT LIKE WHAT YOU INDICATED IS THAT
00:38:27 WE BELIEVE THEY THAT AS A PUC BY PROJECTION PROBABLY WILL
00:38:35 COME BACK AT LEAST FOR THE CPI INCREASE FOR THE REMAINING OF
00:38:39 THE CONTRACT OR THE DURATION OF THE CONTRACT.
00:38:40 >> I THINK IF THEY'RE GOING TO CONTINUE TO SPEND AT THE RATE
00:38:44 THAT THEY'VE BEEN SPENDING, THIS $11.6 MILLION IS NOT
00:38:47 SUFFICIENT THERE BUT BECAUSE THEY HAVE $750,000 LEFT OVER ON
00:38:53 AN EXISTING CONTRACT THAT DOESN'T EXPIRE FOR A YEAR.
00:38:56 I THINK IT'S POSSIBLE THEY COULD USE THAT TO FUND THAT TO
00:39:00 TO BUILD SOME OF THE WORK GOING FORWARD AND THAT THIS $11.6
00:39:04 MILLION COULD GET THEM THROUGH THE REMAINING FOUR YEARS.
00:39:08 >> UNDERSTOOD. SO WITH THE SAVING THAT THEY
00:39:12 HAD OR I SHOULDN'T SAY SAVING WITH WITH THE UNSPENT FUNDING
00:39:15 PLUS WHAT WE ARE APPROVING TODAY OR INTEND TO APPROVE
00:39:20 TODAY TOGETHER THAT THEY ARE LIKELY TO BE WOULD HAVE AT WHAT
00:39:25 ESSENTIALLY THE UNSPENT FUND BECOMES AND CONTINGENCY FUNDING
00:39:32 FOR THEM THAT THEY COULD PROBABLY NOT HAVE TO COME BACK
00:39:36 FOR ADDITIONAL FUNDING PROBABLY WON'T HAVE TO COME BACK UNTIL
00:39:40 PROBABLY LIKE THE LAST YEAR OF THE CONTRACT.
00:39:41 I THINK THAT WHAT I'M THINKING ABOUT TOO IS LIKE WE'RE IN A
00:39:43 HIGH INFLATIONARY ENVIRONMENT. WE'RE AT 3%, IT'S GOING TO GO
00:39:47 HIGHER GIVEN THE ENERGY CRISIS AND OTHER INFLATIONARY LIKE
00:39:51 FEDERAL POLICY. AND THIS CONTRACT BUDGET
00:39:54 ESSENTIALLY DOESN'T CONSUME ANY INFLATION AND THEY'VE BEEN
00:39:58 SPENDING $2.3 MILLION A YEAR ON THE EXISTING CONTRACT.
00:40:02 SO I DO THINK IT'S A LITTLE UNDERSIZED AND THEY'LL PROBABLY
00:40:05 HAVE TO COME BACK BEFORE THIS FIVE YEARS IS UP.
00:40:08 >> THANK YOU. IS THIS AS A PIECE OF A
00:40:09 RESPONSE TO THAT? SO YEAH, WE DO WE DO REALIZE
00:40:15 THAT CONCERN. >> A COUPLE OF THINGS HAVE
00:40:18 SHIFTED OVER THE PAST DURATION OF THIS CONTRACT.
00:40:19 WE'RE ABLE TO BRING SOME STAFF ON BOARD SUBJECT MATTER EXPERTS
00:40:23 THAT SHOULD ALLEVIATE SOME OF THAT SPENDING AND POTENTIALLY
00:40:26 LOWER THE USE RATE OF THE CONTRACT CAPACITY.
00:40:30 HOWEVER, THAT WOULD BE SUBJECT TO THOSE STAFF REMAINING ON
00:40:34 BOARD AND WE DON'T HAVE ANY ATTRITION.
00:40:35 SO WE DO REALIZE THAT WE'RE WE'RE REALLY CLOSE ON WHAT THE
00:40:39 CAPACITY OF THE CONTRACT IS AND WHAT WE EXPECT TO SPEND.
00:40:42 >> OKAY. GOOD TO KNOW.
00:40:43 THANK YOU. JUST WANT TO BE ON THE RECORD
00:40:44 ABOUT THAT. SORRY, I HAVE ONE MORE
00:40:49 QUESTION. I THINK THIS IS FOR SPC.
00:40:50 SO IN THAT EVENT JUST REALLY ABOUT STAFFING, WHAT IS THE
00:40:55 PROJECTION OF DOLLAR AMOUNT THAT WE THINK IT'S GOING TO
00:40:57 POTENTIALLY BE ADDITIONAL TO WHAT WE ARE APPROVING TODAY?
00:41:01 >> THE THE ADDITIONAL CONTRACT CAPACITY OVER THE DURATION OF
00:41:04 THE CONTRACT? >> I DON'T HAVE THAT PROJECTION
00:41:08 ON HAND. HOWEVER, IF WE LOOK AT THE
00:41:12 CURRENT SPEND RATE WHICH IS THE 2.3 MILLION PER YEAR, I THINK
00:41:15 WHAT THAT THAT'S WHAT YOU CURRENTLY CALCULATED CORRECT.
00:41:19 >> SO THAT WOULD THAT WOULD PUT US OUT OVER THE FIVE YEAR
00:41:22 CONTRACT ONLY ABOUT A MILLION OVER WHAT WE'RE CURRENTLY
00:41:27 REQUESTING. >> UNDERSTOOD.
00:41:30 THANK YOU. AND WITH THAT, LET'S GO TO
00:41:33 PUBLIC COMMENT ON THIS ITEM. >> YES.
00:41:34 IF YOU HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS
00:41:37 COMMITTEE REGARDING THIS ITEM NUMBER FIVE, NOW'S YOUR
00:41:40 OPPORTUNITY. >> MADAM CHAIR, WE HAVE NO
00:41:44 SPEAKERS SEEING NO PUBLIC COMMENTS.
00:41:47 PUBLIC COMMENT IS NOW CLOSED. COLLEAGUES, I WOULD LIKE TO
00:41:48 MOVE THIS ITEM TO FULL BOARD WITH RECOMMENDATION AND A ROLL
00:41:51 CALL PLEASE. >> NOW THAT MOTION TO REFER
00:41:54 THIS RESOLUTION TO THE FULL BOARD WITH A RECOMMENDATION
00:41:56 VICE CHAIR DORSEY AND DORSEY II MEMBER SAUTER SAUTER I CHURCH
00:42:02 CAN I CAN I HAVE THREE EYES? >> THE MOTION PASSES.
00:42:06 >> AND MR. CLERK PLEASE CALL ITEM NUMBER SIX.
00:42:10 ITEM NUMBER SIX IS A RESOLUTION APPROVING THE AGREEMENT BETWEEN
00:42:12 THE PENINSULA CORRIDOR JOINT POWERS BOARD MEMBERS, A BOARD'S
00:42:15 MEMBER AGENCIES COMPRISED OF THE CITY AND COUNTY OF SAN
00:42:19 FRANCISCO, SAN MATEO COUNTY TRANSIT DISTRICT AND THE SANTA
00:42:23 CLARA VALLEY TRANSPORTATION AUTHORITY REGARDING THE
00:42:27 PENINSULA CORRIDOR JOINT POWERS BOARD'S FISCAL OBLIGATIONS TO
00:42:30 CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM EFFECTIVE
00:42:34 UPON EXECUTION OF THE AGREEMENT BY ALL MEMBER AGENCIES
00:42:38 AND AUTHORIZING THE MTA AGENCY DIRECTOR OF TRANSPORTATION TO
00:42:43 EXECUTE THE AGREEMENT. >> MADAM CHAIR, THANK YOU
00:42:46 AND IT IS GOOD TO HAVE OUR VERY OWN COUNTY TRANSPORTATION
00:42:50 AUTHORITY HERE. >> GREAT.
00:42:51 GOOD MORNING COMMITTEE MEMBERS JESSE KAYLOR, DIRECTOR OF
00:42:55 STRATEGY AT THE SAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY
00:42:57 ,THE TRANSPORTATION AUTHORITY PARTNERS WITH S.F. MTA TO
00:42:59 PROVIDE STAFF SUPPORT TO SAN FRANCISCO'S THREE APPOINTEES TO
00:43:03 THE CALTRANS JOINT POWERS BOARD.
00:43:06 THIS DOES INCLUDE SUPERVISOR SHERMAN WALTON.
00:43:07 WE HAVE BEEN IN COORDINATION WITH HIS OFFICE ON THIS ITEM.
00:43:10 THE ITEM BEFORE YOU IS TO CONSIDER RECOMMENDING THAT THE
00:43:13 BOARD APPROVE AN AGREEMENT WITH THE TWO OTHER MEMBER AGENCIES
00:43:16 OF CALTRAIN, THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
00:43:20 AND THE SAN MATEO COUNTY TRANSIT DISTRICT ALSO KNOWN AS
00:43:22 THE I'M TRANS. UNDER THE PROPOSED AGREEMENT
00:43:25 THE THREE CALTRANS MEMBER AGENCIES WOULD AGREE TO SHARE
00:43:28 FINANCIAL RESPONSIBILITY WITH RESPECT TO CALTRANS PENSION
00:43:31 FUNDING OBLIGATIONS WITH THE CALIFORNIA PUBLIC EMPLOYEE
00:43:33 RETIREMENT SYSTEM CALPERS. IN THE EVENT THAT CALTRANS WERE
00:43:36 TO BE DISSOLVED OR IF CALPERS WERE TO TERMINATE ITS CONTRACT
00:43:40 WITH CALTRAIN AND ONLY IN THE VERY UNLIKELY EVENT THAT
00:43:44 CALTRANS WERE TO BE UNABLE TO FULFILL THESE OBLIGATIONS,
00:43:47 CALTRANS IS IN THE PROCESS OF NEGOTIATING WHAT IS KNOWN AS A
00:43:51 SUCCESSOR AGENCY DESIGNATION AND CONTRACT WITH CALPERS AS
00:43:54 ONE PART OF A SET OF STEPS UNDERWAY TO GIVE THE CALTRAIN
00:43:59 BOARD AND EXECUTIVE DIRECTOR GREATER OVERSIGHT OF
00:44:02 AND AUTHORITY FOR THE AGENCY'S DEDICATED EMPLOYEES.
00:44:03 SINCE THE THREE MEMBER AGENCIES FORMED CALTRANS IN THE EARLY
00:44:07 1990S, SAM TRANS HAS SERVED AS MANAGING AGENCY FOR THE
00:44:10 RAILROAD INCLUDING TO DATE SAM TRANSIT'S ROLE TO EMPLOY ALL
00:44:14 PUBLIC AGENCY STAFF SERVING CALTRAIN.
00:44:17 IN 2022 THE THREE MEMBER AGENCIES AND CALTRAIN ENTERED
00:44:20 INTO A FOUR PARTY MEMORANDUM OF UNDERSTANDING CONCERNING THE
00:44:22 GOVERNANCE OF THE RAILROAD INCLUDING TO ESTABLISH A
00:44:25 DEDICATED EXECUTIVE DIRECTOR AND TO CODIFY PROVISIONS FOR
00:44:28 THE MANAGEMENT AND OVERSIGHT OF RAIL EMPLOYEES AS PART OF THE
00:44:32 WORK STEMMING FROM THAT MOU. COUNSEL FOR CALTRAIN
00:44:34 AND COUNSEL FOR THE THREE MEMBER AGENCIES HAVE DETERMINED
00:44:37 THAT CALTRANS SHOULD HAVE ITS OWN SEPARATE CONTRACT WITH
00:44:40 CALPERS FOR THE RAILROAD'S EMPLOYEES AS A PRECONDITION OF
00:44:44 ENTERING INTO A CONTRACT WITH CALPERS.
00:44:45 STATE LAW REQUIRES THAT THE MEMBER AGENCIES OF THE JOINT
00:44:48 POWERS BOARD AGREE TO ACCEPT FINANCIAL RESPONSIBILITY FOR
00:44:52 THE JPB PENSION OBLIGATIONS IN THE EVENT THAT CALTRAIN WERE
00:44:56 TO BE DISSOLVED OR IF THE CONTRACT WERE TERMINATED
00:44:57 AND AGAIN ONLY IF IF CALTRAIN WOULD NOT HAVE AND WOULD HAVE
00:45:02 INSUFFICIENT ASSETS TO COVER THOSE OBLIGATIONS.
00:45:04 GIVEN THESE PARAMETERS, IT IS EXTREMELY UNLIKELY THAT THIS
00:45:07 CLAUSE WOULD EVER BE TRIGGERED AS CALTRANS ASSETS ARE VALUED
00:45:11 AT APPROXIMATELY $4.2 BILLION AND THE ESTIMATE OF PENSION
00:45:14 LIABILITY FOR RAIL EMPLOYEES HAS BEEN ESTIMATED AT
00:45:17 APPROXIMATELY $16 MILLION. STILL A FORMAL AGREEMENT AMONG
00:45:21 THE MEMBER AGENCIES TO PROVIDE A BACKSTOP FOR THESE
00:45:23 OBLIGATIONS IS NECESSARY TO FULFILL CALPERS REQUIREMENTS.
00:45:27 GIVEN THE LOW LIKELIHOOD THAT THE MEMBER AGENCY BACKSTOP
00:45:30 WOULD EVER NEED TO BE CALLED UPON THE RECOMMENDED AGREEMENT
00:45:33 DOES NOT APPORTION RELATIVE RESPONSIBILITY AMONG THE MEMBER
00:45:37 AGENCIES IF AND WHEN SUCH A PORTION MEANT WERE NEEDED WERE
00:45:39 TO BE NEEDED. THE PROPOSED AGREED AGREEMENT
00:45:41 CALLS FOR THIS TO BE ESTABLISHED THROUGH A FUTURE
00:45:43 AGREEMENT AMONG THE PARTIES. THE VALLEY TRANSPORTATION
00:45:46 AUTHORITY BOARD APPROVED THE AGREEMENT LAST MONTH AND THE
00:45:49 SAME TRANSPORT APPROVED THE AGREEMENT EARLIER THIS MONTH
00:45:50 WITH THESE APPROVAL IS GENERALLY CONDITIONED ON BOARD
00:45:53 APPROVAL BY ALL THREE MEMBER AGENCIES.
00:45:56 THE MTA BOARD ALSO RECOMMENDED APPROVAL LAST MONTH.
00:46:00 >> THAT CONCLUDES MY REMARKS. WE ARE HAPPY TO ADDRESS ANY
00:46:01 QUESTIONS. THANKS.
00:46:02 THANK YOU. ITEM SIX IS A RESOLUTION THAT
00:46:10 WOULD APPROVE AN AGREEMENT BETWEEN MTA SAM TRANS AND VTA
00:46:13 TO ACCEPT CALTRANS FINANCIAL OBLIGATIONS TO CALPERS.
00:46:17 IF CALTRAIN IS UNABLE TO MEET THEM GOING FORWARD.
00:46:20 THIS IS RELATED TO CALTRAIN BEING ABLE TO ENTER INTO AN
00:46:22 AGREEMENT WITH CALPERS AND REQUIRING BECAUSE IT'S A
00:46:25 JPA THE MEMBER AGENCIES TO BASICALLY BACKSTOP THOSE
00:46:29 LIABILITIES. WE DISCUSSED ON PAGE SIX OF OUR
00:46:33 REPORT THE UNFUNDED PENSION LIABILITIES OF CALTRAIN OUR
00:46:38 $15.7 MILLION. CALTRAIN HAS $4.36 BILLION
00:46:44 IN ASSETS, 10% OF WHICH ARE LIQUID AND ONLY $400 MILLION OF
00:46:48 TOTAL LIABILITIES. SO IF IT WERE TO LIQUIDATE
00:46:49 TOMORROW, WE BELIEVE THAT CALTRAIN WAS VERY WELL POISED
00:46:55 TO MEET THIS UNFUNDED PENSION LIABILITY WITHOUT CONTRIBUTION
00:46:56 FROM THE CITY THOUGH THE ACTUAL SHARE OF THE CITY'S
00:47:00 RESPONSIBILITIES WOULD BE DETERMINED IN A FUTURE
00:47:03 AGREEMENT. I DON'T THINK IT'S COMPLETELY
00:47:06 WITHOUT RISK THAT CALTRAIN DOES GO UNDER.
00:47:09 WE SHOW ON PAGE 18 OF OUR REPORT THE KIND OF FINANCIAL
00:47:13 CONDITION OF THE OF THE MEMBER AGENCIES IN CALTRAIN BOTH
00:47:17 IN TERMS OF RIDERSHIP AND THEN THEIR PRE-COVID FINANCIAL
00:47:21 CONDITION RELATIVE TO AS IT IS IN 2425.
00:47:25 AND YOU CAN SEE CALTRAIN RIDERSHIP IS DOWN 38% AND THEY
00:47:29 AND THEIR NET INCOME IS, YOU KNOW, -$200 MILLION WHEN IT WAS
00:47:35 ONLY -$775 MILLION PRE-COVID. THE GOOD NEWS IS THAT THE
00:47:40 REGIONAL SALES TAX THAT'S PENDING BEFORE BEFORE VOTERS
00:47:43 WOULD COVER ALL CALTRAIN EXPENSES FOR THE NEXT 14 YEARS.
00:47:47 SO IN THAT IF THAT IF THAT DOES PASS THAT WILL ALSO FURTHER
00:47:51 REDUCE RISK TO THE CITY. THE FINAL THING I'LL SAY IS
00:47:56 THAT THIS $15.7 MILLION UNFUNDED LIABILITY IS A POINT
00:48:01 IN TIME. IT'S FROM 2023.
00:48:01 IT'S SUBJECT TO CHANGE BASED ON THE CONTRIBUTIONS THAT CALTRANS
00:48:05 MAKES TO CALPERS AND THEN THE PERFORMANCE OF THE CALPERS
00:48:10 INVESTMENT ASSETS. AND SO THAT NUMBER COULD GO UP
00:48:14 OR DOWN DEPENDING ON THE NUMBER OF STAFF THAT ARE YOU KNOW, AT
00:48:17 CALTRAIN. THE AGENCY'S CONTRIBUTION TO
00:48:21 CALPERS AND PERFORMANCE OF FINANCIAL MARKETS.
00:48:22 >> BUT ULTIMATELY I DO THINK THIS IS A LOW RISK AGREEMENT
00:48:26 FOR THE CITY AND WE RECOMMEND APPROVAL OF ITEM SIX.
00:48:28 >> THANK YOU. YOU FEEL LIKE THIS MEANS A LONG
00:48:35 TIME COMING THAT SUPERVISOR WALTON AND EVEN WHEN SUPERVISOR
00:48:39 AARON PESKIN WAS ON THE BOARD THAT THERE WAS REALLY A LONG
00:48:42 TIME DISCUSSION THAT PARTICULARLY THAT WHEN AND HE
00:48:48 STILL IS SUPERVISOR WALTON THAT BEING ENTRENCHED JOINT TRANSBAY
00:48:52 AUTHORITY THAT JUST BEEN QUITE QUITE AN ONGOING DISCUSSION
00:48:56 ABOUT GOVERNING AND STAFFING AND AND THIS IS ALMOST THE MOST
00:49:04 NEUTRAL WAY TO ENSURE THAT THE STAFF CAN STAY ON BOARD
00:49:08 AND ACTUALLY BE PROTECTED WITH THEIR PENSION WHILE I THINK NOT
00:49:12 JUST SAN FRANCISCO BUT CLEARLY SHOWN IN THE BUDGET
00:49:16 AND LEGISLATIVE ANALYST REPORT THAT THE ENTIRE BAY AREA AS A
00:49:19 TRANSIT SYSTEM HAS TO TACKLE DEFICITS IN L CROSS.
00:49:23 SO I AM SUPPORTIVE OF THIS AGREEMENT TODAY.
00:49:27 I THINK IT'S ACTUALLY MUCH NEEDED.
00:49:31 WHILE IT DOES HAVE A RISK I THINK IT'S A REGIONAL LIKE A
00:49:35 SHARED REGIONAL RISK THAT WE ALREADY HAVE AND I ANTICIPATE
00:49:42 NOT AS AN ENTIRE REGION COLLECTIVELY WE WILL ALSO
00:49:46 PROBLEM SOLVE SHOULD THIS REALLY HIT US.
00:49:47 >> IT'S BETTER THAT WE'RE ALL IN THIS TOGETHER.
00:49:51 AND SO WITH THAT I DON'T HAVE ANY OTHER QUESTION OR COMMENT.
00:49:54 I DON'T SEE NAMES ON ROSTERS SO LET'S GO TO PUBLIC COMMENT ON
00:49:58 THIS ITEM. >> YES, WE'RE OPENING PUBLIC
00:49:59 COMMENT FOR THIS ITEM NUMBER NINE IF WE HAVE ANY MEMBERS OF
00:50:02 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:50:05 >> MADAM CHAIR, WE HAVE NO SPEAKERS SEEING NO PUBLIC
00:50:09 COMMENTS. >> PUBLIC COMMENT IS NOW CLOSE
00:50:12 . AND WITH THAT COLLEAGUES I
00:50:13 WOULD LIKE TO MOVE THIS ITEM TO A FULL BOARD WITH
00:50:17 RECOMMENDATION AND A ROLL CALL PLEASE.
00:50:18 >> AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH
00:50:21 RECOMMENDATION IF I STARTED DORSEY DORSEY I REMEMBER SUTTER
00:50:25 SUTTER I CHAIR CAN I CAN I HAVE THREE EYES THE MOTION PASSES
00:50:32 WITH THAT. >> ARE THERE ANY OTHER BUSINESS
00:50:33 BEFORE US TODAY MR. CLERK? >> MADAM CHAIR, THAT CONCLUDES
00:50:37 OUR BUSINESS. THE MEETINGS ADJOURN