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tv   Mayors Press Availability  SFGTV  February 23, 2016 2:40am-3:16am PST

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need to do to deal with will mother-in-law and lake merced we've got a long way to go we were finally cleaning that up and working with r rec and park and making a decision on the new tenants in the spring the other major accomplishment is noah valley golf course we're in position of that golf course and looking at the best future use of site on the sewer system improvements we have a number of key milestones one that i must highlight is the bio pursuit maybe an hour ago we had the legislation passed by the board of supervisors to allow us to hire the contractor designer and developer that will build the value shops to take possession on a critical path to take
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possession to locate the digesters this is a judicial error accomplishment and several vip we've worked with they're currently underway on the power enterprise as you may know the big launching of cleanpowersf folks thought that wounded happen and next we'll do this press release and the on the power impressed we've developed a business plan to address the fiscal issues concerning the pour enterprise i'd like to take an opportunity to talk about all the communities benefit programs that we've been able to implement in different communities as well the next slide is a challenges as far as the agency as you may know we faced retirement risks one of the things we identified that you know within 50 percent of our staff within 5 years will
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be eligible for retirement so really trying to develop new talent and having the senior employees work with the newer employees something we're focused on and also aging and infrastructure a lot of our systems are working around the clock for centuries and within our water system as you may know cross 3 major faults with the seismic liability is a priority and the serve pipes are 70 years and under it is something we're focusing on and as the water consumption will remain flat or decrease we need the affordability to with the needs to invest in and maintain the water system at the same time, we are also expanding the number of new areas we'll really combaejdz in
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you know we kaubd cleanpowersf and in the advisory committee of the bike sharing but recycled water and grouft we have to monitor and green infrastructure and the power enterprise business plan those are programs we're excited about, about require additional effort and lastly would like to say what is critical to me have the strategy plan and have business plan that we're all in loyalty that is something we're work on at the it is timely as the depths to do a strategy plan i think that as great opportunities to actually do that the next slide is the agency priorities this is stuff we're going to focus on and the next two years and one is that draw management we received a lot of
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rain as steve identified the drought presentation but we're still not out of the drought need to continue to manage agencies assuming the drought will continue cleanpowersf we have the piece in place but the the need to build out the program we need to focus on we're working on a successful launch but recognize this has to be nimble we'll be making the changes to cooperated to the changes with the sewer improvement program we need to continue pushing that big program keep it on schedule and on budgeted so this is something we'll focus on in the next two years and hopefully we'd be be wrapping up the water system improvements with the calaveres and the recycled programs and to integrate those into a wider
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system is a challenge as well. the other thing you've heard throughout all of the our bureaus and enterprises planning so this is something i plan to come back to the commission to talk about how we manage it so you have a better idea how we're planning to implement that and then as we shift to implement our power enterprise business plan, which we will very much the enterprise to attract the consumers we're focusing on and in the next two years our rate package that is something when we talk about water wastewater and power to focus on this we talked about the flood resilience we're focusing on think but on a national level
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we're in activity communication with restoring pg&e and then within of the things we were recent to work in d.c. on the create pipelines and infrastructure funding those are issues we'll talk about to d.c. and low-cost financing the other thing we don't talk about is heath this is something i've put out there to make sure that the focus is on everyone's mind we have been conscious about health and safety for all the employees and customers which are on the forefront so this is a major focus and lastly to really complete and get the exclusive team to help us focus in implementing our puc 2020 strategy plan to set the priorities of agencies working with the commission as well
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and so ass as far as the total budget that michael indicated that this is really flat budget we're shifting the h.r. group under the gm other than that the public health will be flat which we're increasing 63 positions with that, that that concludes my presentation. of gm budget >> commissioner courtney can i ask a question the security manager is that an open position. >> it's an open position. >> so that will be as the budget gets approved as part of budget process and that position will be creates they repurposed the position we didn't have to add another position to the body. >> thank you. >> on your organization chart does the dotted line mean what does it mean.
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>> that's my spear of influence (laughter). >> i really don't understand one that i don't understand. >> it has to do with how you have to report to the general manager to be an exempt employee. >> so to give us the dotted line is sort of like agree matrix organization last week certain types of responsibilities everyone responds to what the needs are the lead takes direction from me, you point and everyone responds it is eventual to a project manager an engineer that reports but takes direction if the p m the circle a circle of influence (laughter) so juliette will never listen to him (laughter). >> to listen to me
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(laughter) off dwee. >> i have a g question about the straven plan is there an time an annual or two years. >> my understanding is that he wanted not only to bring to the commission and make sure the commission blessed it so we're trying to move quickly to get our staff to come here you can have a comment i believe that one of the things that the mayor wants to accomplish is that the departments to identify when our strategic goals so we can work together as other depends as well this week we want to make sure anything we have we shared with the department of investment or rec and park or dpw to look at ways planning and so we can look at ways to do something better the city and work together as a family so
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that's - i would imagine i'll say every two years. >> that's like a document we'll get. >> yeah. you'll get a strategic plan document my hope to have all each one of the strategy plans remember that this is the mayor's request you have an obligation to do a strategic plan every year. >> this is annual. >> kind of an update to one year ago commissioner caen was on the commission when was adopted long ago the past we'll show you the strategic plan on an annual basis. >> and when shall we anticipate
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3 months. >> like who am i i don't report to michael (laughter). >> so the correspondents will give you a at some point of what we're doing and the idea come back if the spring probably april with a draft and be able to give comments on but ideally before the meeting in march where jeff will give you more details that is what the process has been with the drafts outcomes are looking at in priority and the peak of that process. >> because you asked us at the last yuppie wanted to get you something in writing this is what we do with the timelines look like the packet. >> okay. thank you. >> do you have a chance to see one of the strategic plans from one of the other departments that was not voluminous it was a
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power point further out so i don't think we are expecting volumes of stuff; right? >> right in communication with the consultants they're pushing them but not want a power point but a slide document that we can present in a couple of months but ideal yeely not written not one hundred pages but 10 pages. >> okay. the other thing we don't want to produce a plan you looked at every year when it is time i think this is something we want to make sure that everyone buys in and this is part of performance approvals we do this is really integrated kind of roles up something that is useful. >> and maybe work plans attached and the department working with us will be checking in quarterly and the first one
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will look at the plan i'm speaking to the general manager hope that this is implemented. >> sounds great, thank you. >> commissioners so 11 we'll take those ohoh - way you doing (laughter). >> i have i'm the vaunt general manager i have a presentation that is an overview of the items those are 75 pages you've seen them i'll point out a substitute resolution for item 11 that rufktd two thing one from commissioner vice president moran at the last bucket meeting to the board of supervisors to sustain the priorities that the puc and the continuation of the city's budget process including the adjustment so municipal
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power rates in support of enterprise and the other one arrest, yes that is reflective in what you have the until the time you there was a correction for the roll up the revenue capital from the power enterprise from the capital and financial plan into the operational budget that's the other correction. >> you want to walk you through your presentation it looks like work went into this surprise me. >> may i have the slides please so in a nut shell are the two year by angle those are budget items and the mayors 10 years and financial plan that are schaert requirements provide where the agency is going towards capital investments
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the budget development is a long process we're about the admitted we've kicked off in september talking about external pressures we worked with the staff and general manager to develop a budget we've spent the last month to brent to you after the action today, we'll work with the mayor to submit the budget to the board of supervisors continue through the city's budget process so we are 5 hearings at regular january 12th meeting 3 special hearings we've spent 4 heirs on the 22 talking about the hetch hetchy and 2 hours 0 on the 29 talking about the and last friday the wastewater enterprise and today, we finished urban up
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with the general manager budget and you the item before you so there's been a lot of deliberation and discussion that went into the development of that budget. >> we talked about some of the external pressures the uncertainty with the precipitation and the expended drought how we are justin to historically low volumes with the pressure of the all areas of the inside and talked about the increasing operating costs like general inflation but unaccepted increases in employer pens costs. >> so general manager kelly listed the appropriates you'll see reflected in the operating and capital budgets they're listed in here i'll not go through them you're familiar
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with that slide but i will oh, well. >> launching cleanpowersf implementing the power enterprise that is completing wsip with the increasing the pace of reconstruction and replacement replacement of our asset based and meeting the demands of new development so this relates to item 11 here's the two slides the total sources and the total uses of funds as you can see from the sources slides the greatest share of revenue from come moment and fiscal year 2017-2018 you see reflectisee reflective
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bars for cleanpowersf we have a new source of commodity revenue and along with that a new expenses as you can see at the top of this list the total uses as you can see that cleanpowersf is now part of budget you'll note in the $26 million in the fiscal year $30 million in fiscal year 2018 one thing you'll notice in this use of funds by category the largest single debt services that represents 40 when combined with the revenue is 40 percent of budget. >> that highlights the changes you'll be seeing and i wanted to
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as you may know we went through a lot of measures to try to contain the increase the bibt budgeted when you look at the non-capital relthsd expenses it excludes cleanpowersf that will make a difficult comparison as you can see we're contained the increase the operating budget with the cleanpowersf to 46 percent in 2017 and fiscal year 2018 when you add cleanpowersf you'll add the capital relates expenditures to there it to 24 percent. >> here's how the changes breakdown you've seen those slides for the different enterprises here it is really out for the entire organization as you can see the 2 percent change in from fiscal year 2016-2017 and a large part of it
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is cleanpowersf then the change in 2017-2018 the latter increase is the debt service and capital related items here's a summary of the underwent authorized positions contained in this you've seen all of those individual for enterprises this is really up for the entire organization as you can see we're w we're talking about the lense one percent the positions for the first year and second year and in fiscal year 2017 and 20 position in 2018 it is helpful to look at the next slide if you can see we tried to break down these into several categories you can look at the
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positions funded by new revenue sources so in the case of the cleanpowersf the 7 positions are founded by a new enterprise and new revenue then we have a number of positions also funded through external sources the largest chunk relates to proton funded project funding and the largest piece relates to renewal and replacement of infrastructure for the distribution of transition pipes we're talking about annexing those and those reflect the priorities that the general manager talked about earlier so, now this slide recaps item 12 the two-year budget request we need to appropriate over the next two years to execute the capital plan it is breakdown
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here by enterprise and by fiscal year as you can see of the $1.5 billion ahf one $.5 billion or 70 percent is the wastewater enterprise the largest chunk of the two year appropriation and this slide relates to item 15 the 10 year capital plan that so forth is the 10 year capital improvement plan comparing enterprise and with the proposed 10 year plan and as you can see that overall this is 3.3 percent and of the $7.9 billion capital improvement plan as you can see with the two year plan a largest portion relates to the sewer and improvement program and the wastewater enterprise so as you
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can see $5.5 billion and the san francisco percent relates to the wastewater enterprise now i have slides highlighting the 10 year capital improvement plan for the projects you've seen those slides before essentially the water use that is increasing 5.9 percent primarily it relates to the big increases relate to the water investment and water transition and the water pipeline distribution system that includes the $80 million in new funding that dan wade talked about with respect to the plan the spending contained the 10 year capital improvement plan generates 12 thousand 8 hundred jobs
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and we're here to see this slide that captures the enterprise capital improvement plan and it decrease 3.6 percent but most importantly that reflected the update the schedule and costs of the sf i p so the entire ssi p a $6 million project over a 20-year period less money is occurring the first 10 year period so renewal and replacement sewer system pipeline increased one and $47 million and as you can see we there's revenue finland for the cpi and the projects spends creates almost 50 thousand jobs. >> here's the summary of hetch hetchy 10 year capital
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improvement plan it is decreases over $43 million but contains $606 million for the mountain tunnel project and $40 million for to invest in distribution this for retail customers within the city and enhancing the business plan as you recall you'll see driefshths e droifgs with the capital improvement plan to add $34 million in -
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related to appropriation not future spending we made adjustment to that. >> so these next slide related to the 10 year financial plan as you may know when we talked about quite a bit the budget and the furniture plan it bans on the historically low sale we don't assume that any kind of the increase the 10 year plan will stay flat for the water and wastewater enterprise here is the water enterprise 10 year financial plan that contains the beginning balances and sources and uses and net revenues and ending balances and shares how the financial plan will meet the commission policy metrics for the coverage and
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reserve similar to water and wastewater it covers a financial plan based on the historical logging sngz these identical slides for resources and ending balance and that we meet the metrics for reserves and coverage and identified the commission policy so, now when you look at the combined wastewater and water rates you can see where we are with the 10 year plan versus where we thought we'd be two years ago this chart has in red or yellow the actual rated increases that have considered through fiscal year 10 and the
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projects rates increases the 10 year financial plans as you can see the combined increase and what you see here is that versus we thought we'd be a year ago were about one percent higher so the combined bill for fiscal years 2019, 20 and 21 are one percent higher than last year that is even digesting 20 percent reduction in sales volumes versus when we set rates and charges you see that reflected when you look at the combined average monthly bill and in fact, the reduction in use more than out paced the increase in the at all rate the bills are actually lower or projected to be lower than the 19 through 33 time period than
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what we showed you a year ago and as well as lower than two years ago. >> here's the 10 year plan for hetch hetchy the same formulate a little bit more complicated things to note here as you can see little low to the cleanpowersf out of funds balance in 2016 and repaid over the next 5 years. >> and as well as i'll points out on the bottom you'll see the assumption of rate increase for general fund customers is half a percent over the - i'm sorry half kreptd over the period every year as you can see with those increases in the subsidize rates
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the rates and charges they pay are still lower than other customers so that's a quick summary hopefully, a quick summary of 4 items before you i'll be happy to answer any questions you may have. >> questions? commissioners? show we take a motion here for those 4 items there's a motion i think we'll ask for a vote separately but move them all together but individually to just - >> so is there a motion to move. >> move item 11 with the corrections. >> second. >> and i have a other comments or questions on item 11 from
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commissioners. >> just a comment the additional resolve he appreciate your putting in there it is in recognition of fact that one of the people that set up the bucket people messed with it, too hoof what happens after it leaves us is not terrible consequenceal but maybe a few positions usually not a big deal but things we care about i think it is useful to i want to put that out there a sense of what those key issues that is a good place to have i think the words is fine i'll ask that we also consider doing something more assessable the resolutions are boring but if we could consider between staff and the president
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of the commission pitting together and letter of trance mill and those are the things we're doing and acknowledge the rate increases and acknowledge that is difficult and on the other hand, all the key members to the presentation were the operating budget increase for next year's is less than one percent that the significant increases are because of other things happening things people wanted us to do to pay the bill for what folks asked us i think that would be a helpful addition and our public affairs and i'll encourage to put something together. >> i think that sister-in-law like a good idea. >> we'll work with the president of the commission to put together a letter. >> thank you. >> so motion is on the table
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there was a second for 11 any other comments. >> i have a public comment card from one lady i don't see her any other public comment on item number 11. >> all in favor, say i. >> i. >> opposed? that motion carries the next item item 11 is there a motion to approve item 12. >>. > all in favor, say i. > opposed? that item passes. >> next item item 13 is there a motion capital improvement plan. >> motion commissioner courtney second. >> second. >> second any public comment? >> all in favor, say i. >> i. >> that motion carries next item 14 open is 10 year financial plan. >> i'll make a motion. >> second any public comment on that item hearing none. >> all in favor, say i. >> i. >> opposed?
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that motion carries we will not be having closed session no items for closed session so is there any other new business hearing none, the meeting is adjourned. >> okay good morning, everyon
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today is thursday, february 4, 2016, this is the regular meeting of building inspection commission please silence all electronic devices. the first item on the agendas is roll call. >> commissioner president mccarthy commissioner gilman commissioner konstin commissioner lee commissioner melgar and commissioner walker commissioner clinch is expected we have quorum item 2

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