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tv   Public Utilitites Commission 81115  SFGTV  August 28, 2015 9:00am-11:01am PDT

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tacall to order the regular meeting of san francisco public utilities commission. today is tuesday august 11, 2015. roll call, please >> president cane, here. commissioner courtney, here.
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commissioner kwon, here. commissioner moran, here. commissioner [inaudible] . >> before you you have the minutes of july 28, 2015. any corrections? any public comment on the minutes? seeing none i'll call fl vote. all in favor? opposed? the motion carries. at this time i'm going to call for the public comments of any item not on todays agenda. have any speakers today? okay, moving on to the next item >> item 5 is communications. >> commissioners any comments? i do have one speaker on item 5 d. christine hanson. could you come forward, please?
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>> i have 2. good afternoon commissioners. my name is christine hanson and i'm speaking to you today as a member of the save ccsf coalition. i would thrike address the real estate service report of the attempt of [inaudible] along where the mayors office to [inaudible] housing development at the bal bola reservoir. it is claimed on one end by the sfpuc and on the onet end city college is in deed still one parcel. the u.s. and history has been intertwined between ccsf and the water department for decades rchlt i document written by joans and stokes entitled common sequa mistakes [inaudible] to declare a
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parking lot full of car suhr plus is to [inaudible] with the common sequa mistake. when trying to assess the needs of the nearest neighbor, ccsf, you're dealing now with the changing state imposed administration that sspuc is resting on the word of public officials who guven the school when no public input was allowed. the current board of trustee meet rgz not video taped or broadcats to the community. how can you know the impacts of housing will be on the school. another common sequa mistake noted by jones and stokes is failure to account for past, present and for seeable projects. this is a perfect discrepgz of performing arts center slate frd the riz vore that the school has spent 22 million dollars in preparation to
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brildbuild. no mention of the project exists in the planning dwuments thus far. that project replaces the school odd torium raised in 195 saechb to build the current reservoir. as i said, city college and sfpuc are instwineed on the rez ver. the history is entwined and now the state of city college is grim and to base your development on the word of public officials that are not necessarily a part of the college community is messy. thank you. >> thank you, very much. any other comments from general public? seeing none, the next item is other commission business. >> other commission business. adoption of resolution and
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supportf nominationf kathleen tiegs as president of association of california water agency for the 2016, 17 term >> acwa is the industry association for public water agencies in california. in the last couple decades it started out as a aggregate district agency over the last several decades it has done a good job i think och representing the state more evenly. it has also done a good job of trying to address californias major issues in a thoughtful and methodical and balanced way. it is the tradition to have the president of the board alter nailt between northern and southern california. the current term the president is
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john colman from east bay mud and in the next term it would naturally fall to southern california. kathleen has been active in aqua since 2008. she is from cock monga water agency and my experience of her is she is thoughtful and approachable and very effective. she has spent the last term as vice president and will be the nominee for president of the coming year, so i think her presidency would be very positive and it would be my pleasure to move our support of her for that position. >> i'll second that motion. um, any other discussion, comments? any public comments? all those in favor of the
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resolution? >> aye. >> all those opposed? the motion carries. any other commission business? moving on to the next item, please. >> item 7 is report of the general manager >> good afternoon commissioners. first would like to start off with the drought update. steve, ritchie >> steve ritchie general manager for water. if we can have the slides. we'll look at where we are in the drought. some are familiar, the first is level of storage in the reservoirs and hetch hetchy is 88 percent full but that is dropping now. water bank is above 100 thousand feed at 18 percent full so we are going through a relatively normal cycle now, hetch hetchy going
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down. we can't fill water bank as much in the past because there isn't enough water in cherry lake to do that so will look forward to hopefully a well winter. i have-this is state department of water resources puts out all the states reservoirs and major reservoirs and this continues to show. they are quite low, particularly [inaudible] is at 14 percent of capacity and there is controversy about how much water should be retained behind it versus released during the summer. [inaudible] which is merced irrigation is down 10 percent of capacity so it is extremely low now and don pedrois a third ow capacity. precipitation, oddly nch in the last several weeks we continue to have more precipitation than normally. the month of june we
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had 4 times more than we usually get in the month of july. that number continues to creep up on the water year. as far as demand, our customers continue to do well. of the 15 lowest percapita users in the bay area are [inaudible] all doing a great job and think you hear more from that when [inaudible] speaks on behalf of baus cu. total demand picture, again we are below the level last year and well below the level we need to achieve to comply with state water boards requirements. it bumped up because we had heat and started to drop in the last week so we continue to do well on overall system demand. i would like to talk about state water board cur patement action and focus
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on june 30 is when we received a notice to [inaudible] points of diverse including [inaudible] july 6 we responded in the point of diversion not subject to state board notice and haven't herd more from the state board after that correspondence. by the end of the week [inaudible] don pedro[inaudible] should exceed the natural flow of the [inaudible] river which is what the state board is measure success is maintaining the flow. i included a diagram which is different than what we have seen before. it shows the flow in cubic feet per second on the left acsss and the month along the bottom thmpt blue line is the full natural flow of the river if it weent diverted by us or the irrigation districts, so you see as the year has progress ed
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and run off flows, that lines coming down, the blue line. during the month of july it jumped around. it is moving-what we typically do is go down close to zero below the yellow line. because we had the precipitation it stretched out longer than usual. the red line is our release into the river. you see them coming down towards july and there is a bump in july as we start to generate more at home and put water in the water bank. we are releasing a fair amount of water in the water bank. the yellow line at the bottom is what is coming out of don pedroand that is about 100 cubic feet per second, 50 we volen tearly we wut in the river. the difference between the yellow and red line is what is going in the water bank so
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that is where that is important at this time of year that we are generating and the water we release is for our purmshsism we have a bump up with the ecpectation it will dry out and the blue line will dip into the yellow line so the release out of don pedrow will go into the system more than what the river puts there itself. at that point the question is a mute question because there is more water in the river than would already be there. the key thing to note is [inaudible] the water bank, that water the district holds so whatever we were told to do by the state water board is irrelevant because it is under control of the irrigation district. you can see the dealter. there is a lot in there but the basic message is the river is above
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the full natural flow level in 3 or 4 days and unless we get storms [inaudible] >> whautd are the next steps if the state water board comes back and they assert the opposite that is within their rights to restrict, what is our next step? >> it is a legal matter but the message is there is more water in the river so it doesn't matter. legally we disagree with you and if we state that that is apologist choice to make. >> can we continue our operations and await legal action? >> we continue operations because there is more water in the river than would normally be there so they have no basis to tell us to do anything. >> thank you. >> thank you.
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>> so the next update is cca. barbara hale. >> good afternoon commissioners. barbara hale. i have a number of items to update you on. lots of activity over the last couple weeks. august 3, mayor lee and some visor breed z mar introduced a resolution reaforming approval of the updateed implementation plan. that is the plan you adopted on july 14 and staff submit today the california public utilities commission for certification so it is now before the government audit and oversight committee. we have also been spending time on the 2 measures, ballot measures scheduled to peer on san francisco november ballot.
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july 31, the supervisors held a special meeting of the board and at that meeting they modified the measure that supervisor breed had initiated in a manner that won over the support of the international brotherhood of electrical workers. they will campaign for the supervisors measure and against the measure they had submit frd the ballot. the ballot simplification committee convenes to draft the ballot digist and we staff activety participated in that effort and we are confident there will be a clear z accurate description of the measures cument composed for the voters. today we published the anticipated request for offer to sploi
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energy to clean power sf program. we asked suppliers to submit bids to sploi the prac with 30 mega watts of electricity at launch with the opportunity to increase to 50 mega watts over the 6 month period. we asked them to provide firmed and shaped energy, so renewable and conventional power. we asked them to provide california renewable portfolio standard eligible bundled renewable energy. that is what is common referred to the bucket one energy, the more premium renewable lickticity product. we asked them to commit to pricing and deliveries starting marf 1 and continuing for 3 to 5 year. we told the sploiers we have a preference for projects in california and even stronger preference in the 9
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bay area counties. that is our effort to get california project squz projects within the san francisco region. we anticipate the program will serve residential and commercial customers ranging from 20 thousand to 70 thousand accounts. are there questions on this item? >> the change of heart from ivw, was there an agreement? >> [inaudible] measure expressed-at the root was kench that the san francisco clean power sf program would rely on unbundled renewable energy credits and not have much of a economic incentive to develop and build projects, right? so, that was sort of at the root of their concern about the
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program. the board sponsored measure expressed concern about too heavy reliance on non renewable power on pg & e's sides oof the house and would require the department of environment to notify customers of the content of the power that pg & e was supplying and making mention of the nuclear conitant. i understand that emphasis on disclose thg nuclear content was what was troubleicing. what the modifications did that brought
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all the parties together is eliminate the nuclear description requirements in the supervisors measure, requires the program that we implement at launch to rely on-to not rely on unbundled renewable energy credits to a degree greater than allowed by state law. it met the ibew interest with the positive statement and by dropping the requirements to disclose the nuclear content in pg & e's power supply got them comfortable and support the measure >> no conversation about jobs or prevailing wages or nothing like that? only on description? >> those items do not appear in the ballot measure, no. that's not to say there wasn't
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conversations about it, but-that is part of the interest ibw is bringing to the table is interest in jobs but neither measure spoke to jobs as they were initially drafted >> thank you >> today we have a action item on the agenda- >> you mentioned that the anticipateation is cca goes out to residential and commercial custers and the business plan last meeting, we talked about the need to serve full serve commercial customers. is one part of hetchy going to be in competition with cca or how does that relationship work? >> you know, i think there is potential for that competition. i think for the municipal.
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the public owned utility power, the bundleed power we supply, not all customers are cost effective to serve because of the distribution system investments that need to be made. we are hoping we will be able to identify customers interested in receiving service from the city and identify those where it is most cost effective for them to be a cca customer or a publicly owned utility customer. we hope in the dialogue with the customer we will be able to best place them within the options of service from san francisco. >> thank you. >> okay, so the next item i want to report on is the fact that we are going to be asking you today to act on a contract for the selection of the back office services provider for the cca program. we're asking
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you to award ongrument to noble amare cs to provide the administrative and customer services for the clean power sf program. nobodyal amare cs would provide the meter data management, billing and customer care services. they will manage our customer enrollment process, tracking the customers who are opting out and establishing procedures and exchanging information about customer requests for pg & e. noble mare cs is a qualified provider and are providing to amu ren and sonoma and their cca programs. the action would amount to a contract not to exceed 5.6 million dollars over the 3 year term and end in october of
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2018. under the contract noble will recover all costs by charging a per active meter fee for each month and in that way we won't incur any cost under the contract until we have customers. so you'll have a opportunity to vote on that today as a regular agenda item. and then i wanted to put up our usual milestones slide. i have it on the overhead projector if we can get that up. thank you. i'm going to kind of try to focus it on the items that have changed. so you see we have listed today august 11, as the issue date for the request for offer, that is the first red item. we had target august 3, it is august 11 and we are a little late but
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none of the other schedule items are effected by that. i mentioned that today we have before you on the regular agenda are equest to execute the back office and customer care contract. i don't know how we missed this after presenting this so many times but listing sept29 where we precent the analysis. i'm showing the next meeting date there-we will have that reflected properly in the future milestone charts. that concludes the update. we are still on track and moving ahead. thank you. >> thank you. is there a couple comments? i know you
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would be here. >> jason freed. i want to thank staff for doing a excellent job. i have in my hands the rfo for power pure cure want released today. thank you fl hard work. i know this was more difficult than anticipated in getting done and they are able to figure how to get the calendar to work in a way that it is going out a few days later, they get back on track through the rest of the process so think that goes a lot to stay the staff and dissever congratuless on that. the timelinel just presented is the moving september 29 to october 13, i get why that occurs. we have started discussion about a joint meeting so if we get the meeting scheduled you could potentially move that item to the joint meeting and have approval of the risk analysis of whatever you are going to
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approve on that date . you can approve during the joint meeting and keep things on track. october 13 isn't the wirs thing in the world but that is a idea to through out and think about. we already traded a little time back and forth between myself and your commission staff about the date. i understand staff submitted our potential suggestion which is the end of september we have our meetic on the 25 so if you are available that day we can make that day work for us. i know not all are here today so need to determine how many of you can be there and how many of our people can be there. the other item i want to fwring up is the discussion about the ballot measure. i want to thank you for your staff. comment your staff and [inaudible] submitted, we were able to get
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good ballot digest discussions occurring so there sadis tinction between the 2 ballot measures and that was going to be very helpful for those purposes. as government we can't campaign for or against anything but can make sure what is pren today the voters is factual and accurate. we did a good job of making sure a accurate story is presented. we are not clear roof top solar in the city [inaudible] would not necessarily be considered clean green renewable energy under prop g and they would be counted under the boards measure, prop h. we are going to-while we are above the minimum compliance, we are going to be aloud to count roof tops that go solar sf
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[inaudible] all those roof tops could be counted against us for category 3 so it will give the ability to count those similar to category 1 and not count against us so we can get as many roof tops in the city. thank you >> thank you. any other public comment? >> all right, the next item is a quarterly audit and performance review report. nancy hom. >> can i have the slides, please? good afternoon president and commissioners. as you are aware the
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performance [inaudible] sfpuc for the past fiscal year. provides a 12 month historical forward calendar of all praunlect squz highlights, the breath and depth of oversight [inaudible] takes into consideration our recommendation made by auditors and agencies. we fenshed 2014/15 with 65 individual assurance projects. 22 audits and projects completed by [inaudible] with 29 pregress and 17 scheduled. the majority are performance related [inaudible] compriced of 51 percent of the portfolio. the next largest audit type is financial related and conducted by external [inaudible] in 4th
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quarter 2 projects were completed, the first is phase one of south east [inaudible] framework. the first phase provided program project models data collection and reporting programs and internal and external audiences. the framework serves to support the program planning and management such as improvement, [inaudible] and also increased transparency, accountability, public awareness and funding support in the southeast community. the second project completed last quarter is the follow up audit of the job order contract program. the original 2012 audit was determine whether [inaudible] administered and monitored the program of the original 19 audit recommendations 4 remained outstanding and 3 were partially implemented from that 4. as we begin q 1 we have 22
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projects over the next 12 months in addition to 22 in progress. not all are listed here but the significant highlighted here [inaudible] followed by the annual financial report and the audit of statement of changes balancing adprount the whole sale revenue requirements for fiscal year 14-15. we have loyaltyies revenue for [inaudible] cash receipts and receive new and sf reviews and interdepartment invoicing and cost. the current fiscal years annual audit plan is finalized between csa and [inaudible] for fy 15 and 16. the projects scheduled in the next upcoming month. in collaboration [inaudible] continued focus is
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obtain values for planned projects thatkeepture cost efficiency [inaudible] policies and procedures and facilitate continuous monitoring. as a result the managements planning audits in prior years added value enthe agency in the follow ways. include the franchise fee audit that led to a 1.5 million [inaudible] 35 fuv thousand dollars of ineligible discounts and provided [inaudible] collection of late fees security deposit and internal controls in property lease management and strengthen internal controls in areas of the organization including information technology, [inaudible] pure curement. as we continue through the year the staff will keep the commission updateed.
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if you have questions i'll be glad to answer them now. thank you >> commissioners, any questions? >> yes, thank you. first of all, let me repeat a comment i make every time we do this. i think the commission staff should be proud of the audit program. i'm not aware of a publication anywhere that subjects to such a thorough and transapparent program. it is part of keeping trust with the people who gave us a lot of money to do their work and think it is very important, but for all that importance no less impressive. one overall comment i would like to make is that there are several audit find wrgz the solution identified is to implement a computer system and a computers by their nature take time to develop and implement. it is also true that financial and inventory controls were not invented after the computer
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age. they existed for a long time before that and the controls are established by management and not machines. my comment is that we need to not take excessive comfort in the fact that somebody is developing a computer system and need to make sure the culture and management speak tooz the need for managers to protect our assets in whatever form their exist. there are several that have to do with inventory control that have been on the list for several years and hope we can make some real progress in getting those systems up and running and make sure that with or without those systems our inventories are being properly managed and protected. >> thank you. >> good point. any other questions? >> thank you >> thank you. >> so the next update is a water enterprise capital
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improvement program. quarterly report. >> good afternoon president and commissioners. cathy how, agm for infrastructure. the written report is self explanatory but wanted to highlight we are finally moving into design for the peninsula pipeline seismic upgrade that was originally part of the-we discovered we needed to strengthen these pipes when we worked on the harry tracey projects under the water system improvement program so the last piece, phase 3 will allow us to meet the seismic reliability level of service goal under the water system improvement program. i can take any questions. >> commissioners, questions? >> thank you >> next item is dan wade will
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give a update of the water system improvement program quarterly update. >> good afternoon commissioners, dan wade. [inaudible] director and please today give a update on fy 2014 and 15. may we go to the slides please? in terms of overall status, the regional program is now 88.7 percent complete. the local program is 99.3 percent complete and the overall is very close to 90 percent complete at 89.6 percent complete. pleased to report that the last construction project in the local program, that is the program within san francisco just completed this last month at [inaudible] reservoir. we
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now have 100 percent completion of construction with the one small exception of outstounding electrical issues at lake merced pump station. we are in the close out phase. that is a very significant accomplishment for the program and commend those working hard on the projects to get us to this point. in terms of overall program status, we continue to have the majority of activity in construction in the regional program at 2.6 billion dollars of project value in that phase, but the great news is there is 65 projects totally complete in construction or closeout and we have one project, only one project in preconstruction and that is the alameda creak
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project. the overall program is on schedule to complete in 2019 as has been the baseline for had last couple years and it is also on budget at 4.765 billion dollars. that being said, you may have noticed a few red flags that i just want to acknowledge and point out. on individual projects, these won't effect the overall completion of the program, but if you look that report you'll see the san joaquin pipeline we have close out issues with litigation that was recently resolve so the date fl project is extended and have issues with drainage and solar panels we are fixing. division 5
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pipeline, the bay division project pipeline, we had ongoing litigation with mountain cascade but we are hopeful that will be resolved soon and there is a closed session item today. we have the [inaudible] hap tat restoration program. this geing well and over 100 million dollars to offset the nob nab of the seismic project squz the habitat values are reviewed by the resource agencies and they found the program to be going well, however, the extreme drought has impacted the timing of some of the projects and have to continue watering many plants and had to replace a number of plants as well as experiencing pathogen issues that effected the plants so we are eradicating the athgens to insure we don't have a long
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term issue. that has effected the schedule of that program as well. and then on the local side, i mentioned the electrical issues at lake merced pump station but those are the red flag jz commissioner caen, i want to be sure we address those with you up front. in terms of recent accomplishments, i'm not going to read all these, but we have accomplishments every quarter especially as we get to this phase in the program. many of these regional projects are closing out and that is exciting. 36 of the 44 projects have now met the level of suvs goal squz that will continue to happen over the next year until such time we only have 4 remaining major projects in the program that go to 2018. the safety record is excellent but did have a issue
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this past muchckt so doubling down on the safety to make sure people go home safe at night. the program attracts media attention and were able to celebrate that last project in the local region by having a reporter from the chronicle come out. we continue to earn industry awards and that is a great accomplishment for the project teams that have worked so hard for many years on these projects. in terms of preconstruction, i mentioned we only have one project that is still in preconstruction which is alameda creak recapture and the design phase is in process and the environmental impact report is also in progress. we finish thd notice of preparation and had a public meeting and so we are moving forward on those aspects. we also have the admeada fix
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passage facilities which is a subproject. it is significant project and finishing 100 percent design this month and put that out to bid in october and proceed next spring and have a prequalification in progress. pausing to look at some of the major projects that are ongoing in construction, i would like to start off with a little project called cal varus dam. construction is 70 percent complete, which is ahead of schedule. we had significant risk reduction on this project recently because we were able to resolve issues that were of concern. steve ritchie tells me he doesn't want to hear about the geologic feature and were able to solve [inaudible] they were crossing the new outlot cond uit and
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have desire to address those issues. we are getting close to the bottom of the excavation. we excavated [inaudible] have about 500 thousand lelft to go and that won't be removed until next year but have a good understanding what is beneath the material and so a risk we will find something new will go down. that being said, there is still significant risk remaining on the project because we still have to build a dam. some of those risks include the source material for the hard rock insureing that we have the quality and quantity of materials necessary to construct the dam without quality issues as we go forward. deal wg nesting birds, we had some minor delays
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due to birds being aggressive building nest so that is a risk continuing forwards with construction. we have-any time we do a excavation at the site there is concern with slope stability so that is risk. we do expect it to rain so there are whether delays but the risk has come way down, i just don't want to leave you with the impression we don't have risk going forward. this photo shows a recent construction photo of the spill way. we are in the [inaudible] looking upstream. 40 thousand cubic yards of concrete is placed. by the time we are finished we will place 60 thousand cubic yards of concrete to provide
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45 thousand cubic per second of pill capacity. this photo shows the tower and architectural components. if you go on site today you see this taking place and this is really a nod to the history of the system that was built here in the bay area by spring valley water company that sfpuc took over and this is a reflection of the architectural team at the [inaudible] water temple designed by wills polk around the turn of the sentry. there is a blue man on the right doing his best to prevent nesting birds on the tower so we don't have delay in construction. if you look at the urban [inaudible] project what you see is some work taking place on the existing tunnel. you recall the new tunnel went into service
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february and took the existing tunnel out of service. we did find [inaudible] repair work taking place and expect to be able to put the existing tunnel back into service in september and do the final testing on the project. on this project you see restoration work going on. this is the photo of the sound wall being removed to insulate the neighbors from the construction and we are also focusing efforts on resolving 2 outstanding claimwise the contract, one is for excessive hard rock discover said during mining of the tunnel and also the 2 buckling repairs that we did based on the incidence that happened last fall. the peninsula pipeline upgrade is our last major pipeline program
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and that is going very well. there are no major issues during the construction of the project. this is 5 site on the peninsula to replace critical portionoffs pipeline that go through fault crossings. this photo shows a couple locations where we have trenches thatd cross the seismically vulnerable areas and the one of the right is near the site of [inaudible] this is in a fault crossing zone where we have a special trench detail with bedding that is allowed to deform in the event of a major earthquake. the regional ground water storage and recoverry project started construction in april and the project is off to a good start. it is about 6 percent complete. this continues to 2018. thes is 16 ground water to help the aquifer to help in
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the event of drought thmpt goal is provide 7.5 million gallons of water per day in lieu of construction project when we experience a drought. we have drilled several wells that are up to 720 feet deep and also cart started construction of the pump station structures you see in the photo. the last construction project i would like to talk about that i haven't talked about much in the past is a biregional habitat restoration program. the program is going well. it is a very large program. it is 100 million dollars of mitigation sites mostly on sfpuc water shed and the folks working the program are proud of the work they have accomplished by restoring the pristine watershed lands and working with the natural resources folks in puc to do that. this project has
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experienced some delays due to 430 million dollars in wages that represents 12 thousand
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workers3 4 f1, 48 percent of th howererize [inaudible] 72 percent of apprentice hours are from the same tear toze. we work with 4 regional based [inaudible] for sfpuc territory residence placed on projects in partnership with trades and contractors. i also just want to mention a couple dynamic partnerships and initiatives under the leadership of general manager harlan kelly [inaudible] in partnership with labor. the small business contracting tips work shops was held in hayward which was a success. we updateed folks on
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changes to local business enterprise ordinance and so that was one thing done recently. there are several job specific training programs that benefited the water system improvement program and benefit the sfpuc as we do projects in the future and include the operating engineers heavy equipment training held at cal varus dam replacement project. it include the [inaudible] training. and also the labor biregional hap tit restoration training held. i want to end with a photo of the folks that participated in the training. this was a tremendous success. sfpuc in collaboration with the training center in san rumoan and mission training center in san francisco launched the biregional habitat training program and the training addresses the need for skilled
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workers to support the construction and maintenance of the projects for the water system improvement program. happy to report that several of these people have gotten great jobs immediately after the training on projects and their position to really enhance their careers and families and provides benefit to the city as well and there is a fantastic video that our folks in mu [inaudible] put together that highlights the testimonys of the individuals that experienced the training and encourage you to visit our website to view that video. with that, happy to take any questions. >> i want to appreciate your comments about the biohabitat training and that you mentioned to masud and all the heavy lifting. i can't sit here and not recognize the great work of general manager kelly because the laborers, we like to take
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credit for stuff that we do, right? maybe a little stuff that we don't do we'll take credit for, but harlan does deserve all the credit and husband staff because it wasn't easy to get that done and we wouldn't be talking about how we were able to place people and wouldn't talk about success and longevity if it wasn't for your vision so i was glad we were able toget that done. i'm compelled to say that >> i agree and glad you took the cue to commend or general manager. >> curious on the video you have, is there [inaudible] involved in that? >> the sewer system improvement program really took that. we are not as cool but they did a great job with that. >> one serious question, i was having a hard time keeping
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track of pluses and minuses going through the risk and trends discussion and there were several projects where it was clear it would take more money but it was vaivl in the directors rover reserve. for the program as a whole, is there enough money currently identified to deal with risks and trends >> i think we have a fighting chance to finish the program in the budget. that being said, there are significant trends that we know about, but there is also risk. the risk we run a monty carlo analysis and we can fund the 80 percent confident level of risk with the directors reserve and con tingency in the program. i believe we have a strong
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likelihood of finishing the program within thbudget, that being said there is igsug couldn't risk ahead. >> from reading the report it looked like we are in a different phase of the projects. as the projects come to completion, close out issues and claimerize in the forfront >> they are very much in the forfront and it is a lot of hard work that people are doing behind the scenes to address those issues, but just as a important as the start up phase or middle phase of the program to finish well and that is what we talk about all the time is finishing well. >> thank you >> thank you. >> congrats on the 100 percent completion, that is a accomplishment. question about the cal varus dam replacement. for the record, the california academy of sciences could not handle the whale fossil because of confrict of interest.
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>> we are in discussion with another entity and hope to have a contract in the future to pure cure the fossil squz displace them >> thank you for you and your staff for [inaudible] >> the whale? >> they found how many whale fossils? significant importance in the project itself and the academy of science is in dialogue for about a year or so in terms of helping cureate and handle these but prevented us from getting involved after i joined the commission. >> any other comments? thank you slnt excellent report. we have public comment? >> okay, for my last update, would like to have a budget status report. have a [inaudible] eric sandler give you a update.
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>> president caen, commissioners eric sandler, assistant general manager of business services and chief financial officer of pu crnchlths happy to be before you after a 10 year highates and here with a brief presentation that is a your relural quarterly budget report. the budget report that i'm about to present is a summary of fiscal year 15, recently completed june 30 that needs preodd audit numbers so they haven't been to audit for external audit [inaudible] and the way thais is organized, i have a presentation and there is a memo that provides narrative context on the year and detailed schedules in your package. before i get into the play by play for each
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enterprise, i thought there were helpful observations that aplayed to all. all thee enterprises experienced reduced revenue as a result of the drought our drought response. we have been able to fully or partially mitigate the revenue reductions through a number of measures that are pretty much one time in nature either one time revenue or one time expense reductions. the good news is that all of your policy guideline frz debt service cov rrj and reserves are met but we have question about the implications for the financial planning for short, medium and long term. in the short term the question is what do we do for fy 16 and you took measures to adjust to reduce revenues when you adopted the 16 budget. we'll come to you in september to talk about the budget for fy
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17 and 18. weal r what if the drought stops or continues or worse, those are the kinds of things to consider and in the long term the question is how to rebalance the long term plan against potentially down shift in water sales volumes and sewer service volume. now i'll dive into what is going on with each enterprise. let's start with water enterprise. we saw a 41 million dollar reduction in revenue and that is just under 10 percent of the water sales revenues. 13.4 million of that was related to sales within san francisco and 27.7 is related to whole sale customers. one thing to keep in mind is the water supply agreement has a mechanism of balancing account so that the under collection in this year
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can be recovered in the following year. the issue with whole sale customer reduced volume and revenue is timing issue than a absolute dollar issue. on the plus side, we had a number of one time positive event in the revenue picture. we had a 11 million dollar settlement with a contractor over some water main replacement and we also had a 8.1 million dollar sale of suhr plus property in mountain view. on the wrus side, wie also have-as a result of therefundings, the reserve requirement is lower and therefore we were able to take a certain amount of money off the debtd service reserve and
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dollars, but we didn't use the 20 million in planned reserves so the waste water enterprise came out positive. 3 4 f1 with respect to hetch hetchy, we saw
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a decrease in sources and this was not really as a result of reduced of billed volumes but there was less water so we produced less energy and we had lower sales of energy. we sold now power on the whole sale market this year and significant reduction in electric sale tooz the irrigation districts. on the e use side we did chbt have to punchs as much power as intended and saw the other enterprises 11.6 million dollars savings from not using planned reserves. as i mentioned earlier, all 3 enterprises meet the commissions policy targets for reserves and for debt service coverage and i'm happy to answer any questions. >> any questions? um, do you have any thoughts about what we
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are going to do if we have no rain next year? >> that is a good question. i thipg that what me and my team are doing and what the exectev team is doing is looking at scenario planning. what if things get worse, what if they stay the same and what if they get better. there is no-what i can say is there no silver bullet but it will take a lot of everything to manage through this. >> i think the plan is september we'll come back with scenarios that if the drought persists that what are some of the things we will do to put us in a better position so we'll come back and talk about options. it is not only effecting water but waste water and power so we are going to do that as well. >> it isn't just a matter if
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the brout persists, if conservation persists which is a good thing that presents challenges that we have to deal with. >> the last thing before we close, i don't know if we actually officially welcomeed the commission. eric, i know we talked individually and i was ought the last meeting but he stepped in and did a great job. it took the efforts of annhering [inaudible] and tod rr [inaudible] and michael [inaudible] to recruit eric to come back and apply for the position under probably a lot of pressure, but it is great to get someone in the industry because he came from east bay mud and was here previously and he has come in and fit right in like a old shoe. comfortable
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shoe. >> need a shine. >> we just wanted to thank you and welcome you and he is a great addition. >> thank you. >> with that i conclude my report. >> very good. any public comment on the general managers report? okay, next item, please. >> item 8 is bawsca update. >> good afternoon commissioners. nick col sandkulla. if i could have the slides. i want to talk about 2 things today. first, i want to give a flavor for how the service area is doing in response to the call for water
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use reduction and i'll land and end on [inaudible] first, good news. the bawsca agency are leading the state in achieve thg reductions requested by there governor. as a whole, if we wait their targets, they have to achieve a 15 percent reduction target and in fact, compare today the state wide reduction of 25 percent, in june the agency achieved 33 percent which is a pretty incredible number. state wide the state agencies as a whole barely exceeded the governors target and in fact, among the bawsca agencies all but one exceeded the target and that individual agency just found out what the reason for, it is was [inaudible] their major shopping center in town was
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close said june of 2013, demolished, 1.3 million gallons is a normal use in the month that didn't exist and not on the books and now fully rebuilt and they were in demand of june 2015 that couldn't figure what happened to west burryo that is the answer. if you look that rest of the state, the state as a whole, 61 percent of reporting agencies are achieving the target. there are many agencies in the state that are 15 percent away from the target. for me the take away is that they are doing a very good job but need to continue to do more. this is the breakdown. this is something that my board had asked for and so each of the agencies, this is the june data and 33 percent overall savings is the solid dark line across the top and the 15 percent is
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the average. the conservation standard sin yellow and percent reduction they achieved is in blue. so, what you really see is the fa nominal experience with each of the agencies. this is the same data but tr had residential per capita use. just some people like to look at that a little differently. what you see here is the broad difference among the region where you have low residential per cap taw agencies like dally city and east pally alto and high ones hills burrow being the highest in 2013 in june, but doing a very good job achieving the target and they are very serious about doing everything they can to reduce their water use. what we know is that that number is great
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for june, we must achieve the bulk of savings in the summer when you have the majority of agencies using 5 oor 60 gallons per capita today you won't get reduction from those in december. you have to get the savings in the summer, so that is a very important message and one we have talked about through the suvs area that now is the time to achieve those savings and need to do more so we make sure overall throughout the year we save everything that we need. so this is our push. these are 2 of the billboards that are down on 101. one is going north and the other south in the vuscenity of red wood city. the push is really about outdoor irrigation and it is about going native, planting drought tolerant species and
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allowing the grass to go gold as mine has and looking at either givling it up or replanting with natives after the drought is over. that is a big push and i think we are seeing the results with these numbers and hope that will continue. now, on to my second topic. mountain tunnel. i do feel it is important to speak to that today. it was my understanding you were going to be present would a schedule today and anyhow that is put off until your next meeting in september which your next meeting. houv, it felt like this challenge is so important and the need for progress is urgent and to protect the water users who are dependent on the water system that delay of weeks or days do matter and want to say a few things since i have your time today. the tunnel according to staff and consultants is at risk of a failure which can could reduce
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water deliveries to agencies and customers for a extended and undetermined length of time. i believe the situation requires the same attention that is given to a lot water system improvement program which is successful [inaudible] and really that was where back in 2005 we felt mountain tunnel should have stayed at the time. last week i met with your staff and we areiveed the schedules to do the work necessary to improve access to the tunnel, the work to inspect sw repair and build the by-pass tunnel if required. we are working with your staff and together to determine how to protect our water users and assure reliable water supply. each of the 3 projects require a lot of time to complete, 2-12 years. amazing to think about. that doesn't include contingencies or thij things we
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can't anticipate today. mean while, 24 threat of extended outage continues to exist until the project is complete. as you know, may 26 i asked the commission for a plan to determine how to meet water needs fl customers in the event of a outage where a certify actry water supply can be found and how can it be delivered and our biggest priority now is the protection of those water customers. 1.seven residence squz 30 thousand businesses and thousands of community agencies i represent. given the schedules we received and the 3 mans i focused on 2 issues. the prompt identification of the water supply plan in case of tunnel collapse and urgent approval of the best plan to fix the tunt, the efforts are connected and equally important. they are both
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critical to protect the interest. continue to ask the commission and staff to give priority to these challenges and urgent implementation of plans that will hopefully be approved. [inaudible] thank you. with that, i'll take any comnlt you may have. any comments? >> >> thank you >> thank you commissioner. >> next item, please. >> item 9 is the consent calendar. all matters here listed counsitute are considered rutune by san francisco public utilities commission and [inaudible] vote of the commission. there is no separate discussion of the items unless a member of the commission or public requests in which case the matter is removed from the calendar. 9 a, approve kubra [inaudible]
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award agreement cs 310 and offer profession agreement for an amount not to exceed 1 million for 5 years. [inaudible] for total contract amount of 876, 177 and authorize final payment to the contractor. c, accept contract number, w rks with 526 approve modification 3 decreasing amount of contract by additional 257, 353 and authorize final payment to the contractor. d, award contract number ww 569 in the amount of 746, 492 to the lowest qualified responsible and responsive bidder lc engineer and construction >> any request to remove any of the items? to the public, same question? seeing none may i have a motion?
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>> i make a motion >> second >> all those in favor? opposed? the motion carries >> item 10 approve the selection of noble americas energy solution award agreement cs 247 r and authorize professional service agreement for amount not toexceed 5 [inaudible] >> did you want to present this again? no. i should ask are there any questions on this? jrk jason freed. this isn't on the critical path this is a item that should have been put on the critical path so encourage you to pass it today. i think a contract is important in get thg program or the agreement is important to get the program up and running since the only way to collect
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funds is if we have back office support system. i encourage you to pass out the staff recommendation today. >> good, thank you. any further questions from the commission? may and a motion, please? >> move >> second. >> all those in favor? opposed? the motion carries. let's see, where are we? madam secretary could you read the items for closed session? >> 13 is unlitigated clam [inaudible] versus city and county of san francisco. 14, existing litigation, ccsf versus pg & e. item 15 existing litigation mountain cascade contract litigation. item 16, existing litigation restore hetch hetchy versus city and county of san francisco. item 17, unlitigated claim, ccsf versus
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ae com. item 18, litigation city county of san francisco versus [inaudible] golf and recreation. item 19, conference with real property negotiator water shed lands known as parcel 61 and 65 containing 218 hole golf courses located at [inaudible] under negotiation is price and terms of payment. items 20-26 will not be heard today. >> um, first of all, i need a motion to recuse commissioner courtney from closed session for item 13. >> i'll move. >> i second >> all in favor? opposed? motion carries. any public comment on the items in closed session? seeing none, we will
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now go into closed session after a 8 minute rec >> >> the commission has now reconvened to open session. in closed session, the following was done: item 13, 14, 15 were settled. item 16, 17, 18, 19, no action. i have a motion regarding whether to disclose? >> move to disclose. >> second. >> all in favor? opposed? the motion carries. other new business? the only thing i can think of is i don'ts think that commissioners should wear cubs >> i conver, thank you.
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>> be aware. >> would you like to announce the august 25 meeting is canceled? and august 25 meeting has been canceled, so the next meeting will be the second tuesday in september. >> i can't promise to wear these until the next series. >> the meeting is adjourned at 4: 32. >> and i know again john was
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president of the senate he didn't like name any type highway or road or bridge after anyone that was alive so after he termed out i'm glad he termed ousted bob and bob 82 me my staff said we need to name the freeway after john is caused could motion the senate didn't want to do it because of they're standing rule but decided to speed up the rule and name if after the senator john burton we're here he's been my mentor and my boss and for me has been the current modern day sfanls person the wonderful john burton
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i'm happy you're here today so without further ado we have a fabulous speaker nancy pelosi the two of them are like partners in crime nothing happens at the state or federal level when if comes to the city and county of san francisco without our nancy and john so nancy pelosi. (clapping.) >> thank you, very much. 41 no may i talk to know bringing us together this history was shared by many people here as john oriented them to his greatness in terms of values and john would say request getting the job done getting the job done fiona sent out the word as anyone puts out the word that john is going to be honored when
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that the crowd turn out for john burton some which of us were to object in sacramento unbelievable to john a complete surprise was named for him here we are today that was a political home for him here we are right close to where we grew up he used to say the campaign has not begun unless the sign is on the house to when the sign is up the campaign begins christine reminder me i hope that is a source of great pride to his grandchildren that office space so many people hold john in such a high esteem he's brilliant and take full and strategic both we
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know that and is from time to time humerus (laughter) and intellectual or not (laughter) he is always right on point witnessly or unwitnessly sdriefz it right home i want to say a few weeks ago a reunion of the watergate babies in washington, d.c. there was a few years ago sworn into congress a new generation of leaders they came in with the chairmanship of shall we say people that didn't agree with they're moving generation or orientation in vietnam and the big star of the show is john burton everyone was it thrilled he turned out the reason we have a story skwubd is about truth so he's the former
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speaker that served with john knows that fiona said that was a challenge to get a naming done it but it was name 38 to none in the state senate no surprise there this is a special person his values run deep, his knowledge is so broad, his judgements are some reason and when you think mr. mayor that sometimes he wonder why we haven't come to that conclusion why do you ask he quotes filling when he says you'll understand when you understand (laughter) and that sounds like him it's a job to be with the mayor and
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fiona and the elected optimisms proud to be here with jackie spear one block into her district so we all love to claim some part of john burton it is a racket that a highway is named for him, i thought we remember coming out with a street name that is the housed a highway that important john took the high road a highway is important we always showed us the path forward a highway of streets a road i always showed us the path forward with great clarity so actually a personal privilege for mia family affair my daughter christen and others will be here they all send they're moving love as does that act of love for john burton speak for the people of not only this district not only our city
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not only the state of california but for his many friends on the national level what a busy j it is so many people come back here and say hey john burton i know him, i knew of him for generations to come it will be a name that simultaneously brings to people's minds greatness and brilliant and getting the job done congratulations john burton (clapping.) >> thank you and the sign is right over across the street with the bow another sign all the way on 39 avenue right before the zoo so everyone that is going to the zoo will be reminded how great john burton is our next speaker is congresswoman jackie spear we're in her district on the san mateo
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county board of supervisors and served in the assembly and the senate with john burton so is jackie is here (clapping.) thank you fiona and your vision and that of your staff to recognize the importance of leaving an indelible mark on the city it instructions john burton so as i see from 19 to 39 the new john burton highway that is a green spiritual place as spirit grove and ends as fiona says as r at the zoo if you think about john's life it is app to he had a lot of legislated i didn't things in his past and smoked a lot of it and have a witness his leadership in the assembly and the senate i, tell you from time to time it was a zoo i see that
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was mike and craig is here and form speaker and the other side of the aisle president kelly this is a family of san francisco who is here to celebrate a try legend he's a lend in our time we have a good opportunity to recognize him today, i want to spend a couple of minutes talking about which what he the in sacramento was a bulldozer he subtle could move anything through the process and one of the examples that really sticks in any mind is when the that he had fell took fronted stage in so many communities he's passionate about girlfriend i've gifrg the victims an opportunity in court
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and he the really the impossible by creating out of a whole thing the statute of limitations that would stand for a elder of one or two years his challenge in the court would super been held unconstitutional but john did it and people have been victimized have got relieve so when it was a was trying to make sure we got a particular benefit about from hoirl money or whether it was making sure the poor were not forgotten john burton was also the conscious of the state senate and we had great times together and tough times together during the energy crisis when we have govern leadership that wasn't shall we see as amenable as john's way of doing business he was challenged
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from time to time john it is indeed fitting you're a hero to us you've got to do the right thing when it is the wrong time so your leadership will be remembered through this friday by people see that location and have the zoo at the other end congratulations (clapping.) >> so i wouldn't be here without john burton and i know another woman was also benefited if the mentorship and love of john burton our state controller betty yee (clapping.) >> thank you fiona good morning, everyone i can't tell how special to be back to the old neighborhood i'm thrilled there are so many naturalist san franciscans to honor our senator john burton i want to say a couple of things there is a
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fitting tribute grouping in the same neighborhood most of you know my personal story my family had a laundry it was a time when just the whole value of community is so treasured the fact they were able to just put 6 itself i kids through college was unanimously but the values of the time i attribute that to john burton who brother filling f this was about community if anyone was hurting in the community it was for the whole community i hope we cherish this moment of honoring john and travel the freeway and see the signs of john that is fitting for the city to view with the great diversity i know the mayor has the great leadership we all reflect and think about not forgetting the lows future among
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us that is what john is about and frankly we listened in sacramento today, i know as we go forward i hope we can each time commit ourselves to value of communities and the community will be defined to john thank you very much for just one accepting this honor. >> two celebrating you for what you've meant to us not only the families but the people of the city and county of san francisco thank you, john (clapping.) >> so as anyone knows highway one and 35 they're all state how's highway and trying to deal with the state and the highways is not always easy i've had high battles as filling knows but we're effort we have a former john burton staffer someone who works with john burton in the senate who now it the secretary
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of transportation bryan kelly who really helped to make that happen today bryan (clapping.) >> thank you i'm not sure if i should say thank you e.r. apologize i'm happy to be here i say before the took the appointed from josh and should that the executive branch i spent 17 years working that in the state senate in sacramento and worked with skwubd in the state senate most people that that when you become a veteran staffer you are to get cynical and birth but i found it was opposite the more i stuck around the more good, i wanted to do and all the staffers want they want to work for someone they're proud of and respect so much i
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can tell you john without expensed every person who worked with we're proud for you thin and now we're proud to work with you and proud to say we worked with john burton john congratulations this is so well deserved (clapping.) >> we're happy that his daughter and john burton grandkids are here today they just literally got off a pa plane yesterday theirs a little bit jet lagged so wanted to make sure they are here for the presentation so here we go. >> (clapping) you. >> this is just what with my dad liked on open mike so for everyone here i haven't worked for him but i'm here as a family representative and the as we were driving down here this
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morning i was smoked we could see the ocean it really is a racket day and drive down the brfld more minded than i cardiac arrest to see the ocean as and come down and as nancy said the whole time i was groundbreaking there was a burton sign in the gram mass window 365 days a year that's who she was my dad as not here this afternoon we get elected to do stuff but i'm proud of everything that he's done and so glad that my kids are here and that they will have the legacy of everything that my dad has done and it is so nice to see all those people and i have to tell you my dad a is not guy i'm east side it's
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cold i went everyday to school left my house in a splitter and be cold they would say it's cold out there how do you not know that anyway, thank you for being here john burton freeway is a wonderful honor not only for myself and my children thanks for coming (clapping.) >> and the other gentleman who made in day happy without him we wouldn't be able to be here bryan kelly runs the state highways asia mayor ed lee runs everything else our great mayor, mayor ed lee (clapping.) thank you fiona actively that was mohammed nuru and ed reiskin
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they the a lot of the work as well listen this is my person player to join all of you leader pelosi and jackie and betty and fiona and burr at an family and all the friends to have this special occasion of people who have no time they're moving lives have been touch but can testify that john is a personalities never to be forgotten but also one that i think all of us celebrate for so many reasons i see present members of the board of supervisors that are here thank you fire chief and the department heads that have been touched with his great work and past members of the board of supervisors the community leaders for years have had the privilege of his leadership, but his council i for one wanted to say more strongly that i don't
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think i would have every gotten without the specialized counseling john you quietly dispersed to those you loved the most i have to remember that. >> but you know beyond the you know the very colorful language of this often associated with his speeches i do believe that i've sought out for many years the council of the people that have the experience of touching leave people's hearts and minds and made sure that those in public office never, never abuse that privilege that very, very special privilege of representing the people who don't have representation this is what johnny burton and the entire burton family
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represent is that touch that touch that is very special to san francisco and one i seek out kind of like this intersection there are many distracts many things that will throw you off, turn your head and keep i unfocused i know through the council that john has offered to me and so many others he's kept us fudges on the right things when people come down this highway they'll see drought tolerant you know vegetation, cleanliness all the way but they'll see a sign that keeps them focused focused on the right things with the city and the people in that this is what john meant to me and whether or not it is affordable housing, whether it is affordable transportation,
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whether it is just holding yourselves accountability to people that don't have a voice and most recently more and more whether paying attention to all of the youth that don't have the voice but want to grow up in the city we all pay attention to that and get very focused this is what john has represented not only his life and work and well beyond the rhetoric that has to be espoused with the state and federal and the local level his example to all of us so when we come down this highway whether we walk, ride a bike, in our cars or on the public transportation we should spend that very moment not being distracted by see the sign of john burton freeway and focus on the things we should do for others this is what john means
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to me on behalf of you'll have you friends and acquaintances and staffers that continue to really support his work and vision i present to you john burton freeway the city and county of san francisco (clapping.) >> i hear you guys; right? eyes right here hold thank you.
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>> no way first, i want to thank all of you thank you fiona i thought this was one of her dumber ideas it is kind of can embarrassing but i want to thank mayor ed lee i call eddy. >> thank you to jackie and nancy and - mrs. bryan kelly worked for me this is wonderful i do want to introduce also one form staff person who is floeft around here wendy where is she linda put up with me for 18
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years in sacramento if you think that is easy and, of course, my colleague form speaker now bobby hertz beggar who came up here and my arm buddy how about that one jerry we served together in peacetime but anyway, i'm really touched by this that corner when i was a kid from the 7th grade through high school i would hitchhike from her a to go to lincoln and bob sinclair the hall of fame tackle would be hick himself i hitchhiking with me he's got a hall of fame jacket and i've got
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this i think i caught the best but i probably the - well, no vicky claims she reminds when either that was a newery the haul here and the church the lutheran church used to have mass at the empire theatre before it was built i remembered we lived on a block with 4 hours arnold's the milk man that actually went from milk to being a president of the more and more run dell and had grass like a putting green he used to get up early being the milk map and catch me at foufksz in the morning i said don't tell my mother i would be working late
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nights and it was hour hours the folks that had a cleaner and a guy at the end of the street ever knew his name with a sign in front of his house was d.c. the doctor of whichever my dad was a whichever doctor so the neighbor said oh, docking whatever the hell his name was my father saw the sign d.c. and i don't think they ever shock hands but it was at that moment i realized the difference between it mid block and does that answer your question but it was a garage thing growing up in this neighborhood there was where my folks would go out of town many, many party at the boulevard i mean, i was the guy
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with a phoney id could buy all the beer there was a liquor store on 16 and carville that sold gotten blob beer i clerked $0.50 for everybody so i could pocket 4 bucks it worked good but again two cold to keep this up i want to thank everybody for coming so it is a nice thing and eddy lee and i go back god knows how many years how many years? >> when we met you were doing the the dream the poster lawyer stuff long time fighting for the right type of thing
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betty met her when she was a staffer in sacramento and jackie met with the late great congress and nancy pelosi met her and george ma governor and shock her hand she thought it was because - i thought it was because the bureau tons were on the odds of the fight and nancy worked for my brother filling inform so many years and, of course, the great daughter of the nancy worked so again, thank you all of you very much i really appreciate it. >> and, of course, ed e ed reiskin will be talking about the so-called bottom of castro hill i want to thank all of you
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guys very much (clapping.) and. >> okay. we're going to do the unveiling and i'll make a couple of closing remarks please stick around drum roll (clapping.) (drum rolling) here we go. (clapping.) >> take that willie brown
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(laughter (clapping.) >> i did invite is willie brown i think he is out of town i called him and his office also
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district for tuesday, august 25, 2015, is now called to order. >> ms. casco madam clerk, please call the roll. >> commissioner fewer matt haney ms. norton mr. walton ms. wynns dr. murase ms. chin and mrs. tan to the. >> please join me in the pledge of allegiance

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