tv Government Access Programming SFGTV March 1, 2019 9:00am-10:01am PST
my sins away ♪ ♪ oh happy day ♪ oh, yes ♪ oh happy day >> and as the music keeps playing, just very lightly, we want to give an acknowledgment to a couple of people who are here with us today as special guests. the sheriff of the san francisco county sheriff's department, sheriff vickie hennessey is here, and shimon wanton from the san francisco school board, reverend arnold townsend, the reverend dr. james mccray, jr.
we have the members of the staff of the san francisco fire department, san francisco police department and also members of the san francisco sheriff's department. we also want to thank our friends here in the city and county of san francisco, the city administrator's office, and particularly partnership with the mayor's office and neighborhood services led by our own derek smith. this concludes the 50th year, the 50-year memorial commemoration of dr. martin luther king, jr. here in the city and county of san francisco. we thank you all for being here. we want you to spend this next week reflecting on dr. king, reflecting on his message of beloved community.
>> good afternoon. i'd like to call the order the regular meeting of the san francisco public utilities commission. today's date is tuesday, february 12, 2019. roll call, please. [roll call] >> clerk: president courtney's excused today. we have a quorum. >> vice president moller caen: thank you. the third item is the approval of the minutes of january 22. are there in additions or corrections -- any additions or
corrections? >> i'll move approval. >> second. >> vice president moller caen: any public comment on the minutes of january 22? hearing none, all those in favor? opposed? the motion carries. next item, please. >> clerk: item before is general public comment. members of the public may address the commission on matters that are within the commission's jurisdiction and are not on today's agenda. >> vice president moller caen: okay. i have two speaker cards. mr. decosta. >> i'm here to give you, just like you have the state of the union address and the other addresses given on -- here, there, and everywhere, you all need to get the state of what is happening in district ten mostly linked with the sewer
system improvement projects. so you have a number of your staff members over here who should be doing due diligence, but my deep concern is we need an intelligent person, a person who lives in the community, a person who has made sacrifices for the community to be involved with all the major projects worth billions of dollars. you all remember when you started with the sewer system project that said it was 6 billion? now, it's 10 billion. and we want to know of that 10 billion, how much of that 10 billion has been set aside for community benefits. if it was districts where the
majority were whites, there would be 500 people here screaming and shouting about community benefits. you know what happens in district ten? crooks get the money. crooks get the money, and you commissioners have full access to contact the controller's office and ask the controller what type of documents he has and what is happening in that headquarters 525 golden gate. so you'll be hearing, and i hope he gives you his resume. he's a good friend of mine, and he's from the community. de derek toller. he's studied at stanford. very well versed in all the
goings on in the community. participated in the hearings in the trenches with lennar and whatever. but i attended all the task force meetings before the community benefits were set aside. and commissioners, i'm not saying that you all are not doing your work, but you all have to call the staff and ask them, who's getting -- who is really profiting from the community benefits, and why don't we have a director who's cognizant of the facts, not somebody who's appointed a director infoto rubber stamp. thank you very much. >> vice president moller caen: thank you. the next speaker, mr. tolliver. >> good afternoon, commissioners.
name derek tolliver, and i have been involved in the position of applying for director. my application was thrown in the garbage can. i was not even interviewed. i happened to meet one of the persons who was interviewed, no experience, nothing. i have a degree from stanford university, property tax, homeowner, raised three children, public schools. i'm a product of san francisco unified school district. have a sixth sigma from villanova university. and my understanding was this was going to be a fair and open process in order to have the best talent available in that position. and out of 80 some-odd people that applied for that position,
they picked seven for the first interview. i was not part of that first seven. of that first seven, only five showed up. they did not go back and get two others. they went with five. they had a deidentifiable process with the supplemental questionnaire where anything that identified you was redacted. so when you evaluated the supplemental questionnaire, who evaluated it? the human resources at the city and county of san francisco and specifically the san francisco public utilities commission were subverted, and they turned everything on its head. and so i'm here, where i should be complimenting you, i'm here having a big question mark about what happened and how did
it happen. that supplemental questionnaire, i had an 11-page response. i teach project management, so my detailed response was fact, it wasn't hyperbole. so it upsets me that i have to be here under these circumstances, when i know harlan kelly, i know juliet ellis, and i know dwayne jones who wrote the community benefits package and is now the recipient of one of the biggest contracts in the community for community benefits, and he actually wrote the community benefits package. so again, i am very, very disappointed in the process in bayview-hunters point. and i can tell you a number of other things, but i don't have the time. thank you very much, commissioners, for listening. >> vice president moller caen: mr. kelly, could you arrange a conversation with the proper
person to discuss this. >> yes. as you may or may not know, the executive director of the southeast commission -- facility commission reports to the commission -- the executive director reports to the commission, and the commission has rights to just choose anybody they want to, but they wanted to go through a process, and we left it to the -- the southeast facility commission to determine their process. so i will reach out to the commission and let them know that derek was here and he had some concerns. >> vice president moller caen: thank you. so i hope that will facilitate your questions regarding the results. do we have any other speakers for this item four? seeing none, the next item,
please. >> clerk: item five is communications. >> vice president moller caen: commissioners, any comments on item five? i wanted to discuss the lake merced cleanup. would that be you, mr. ritchie? so there was a concern about the lake itself and lead still being there, and there's a report due soon, is that correct? >> yes, we did receive a report. i have some back ups -- steve ritchie, general assistant manager for water. so we cleaned up the land side of the site successfully a couple of years ago now, and there was a fair amount of lead shot and debris beneath the surface of the lake. the prior analysis by the
department of fish and game at that time back in the 90's was that lead and water life tended to stay inert, and so you are only concerned if there are ducks in the area that would ingest the pellets. so we had over the last two or three years, biological studies done to determine if there are any water fowl in the area that were ingesting the pellets, and no requests or concerns. we provided that to the water department, and i believe they'll be signing off on the current conditions. if the current conditions change at the lake in some way, we'll have to revisit the issue, but under the current issue, it appears no further action will be warranted. >> vice president moller caen: so i have another question. refresh my memory.
with the cleanup, initial cleanup, did their insurance cover the cost of that? >> i'm not sure, but off the top of my head, i believe it was $9 million for the cleanup. it was the limits of the policy, and they paid out all that they were on the hook for. we got more back than i thought we were going to. >> vice president moller caen: and what did we end up having to pay? what was the total? >> i think the total cost was something on the order of $18 million, so we got about half back. >> vice president moller caen: well, you said better than we expected. >> far more than i expected when we started out. >> vice president moller caen: okay. thank you. >> commissioner kwon: commissioner, can i ask a question. lake park, we have a contract
with them for the management of lake merced? >> that's correct, and we should be bringing a renewal of that for you soon. >> vice president moller caen: okay. is there any public comment? >> what i want to state here just for the record is those vario various constituents on lake merced prepared several documents. they took it upon themselves to prepare those documents, and when the commissioners met, and some of you all were there, and some of you all may not have been there, we saw the enthusiasm from those citizens who live in lake merced, and
they are concerned. and i also want to state that rec and park had a -- [inaudible] >> -- using that area, and some other entities that were using it as a firing range, and that's how the lead -- lead got into that -- this. but they were paying very little money to use it. and it was a time then, you know, people did what -- they just did things arbitrarily. so now, with all these figures that have been mentioned from the insurance company and what type of cleanup, my final
informational subject is the watershed that stretches from the presidio san francisco through the golden gate park to lake merced. the watershed is important, and in many ways, the contamination that was there and is less now has impacted the watershed -- this is for your information. this is the land of the ohlone, and i represent them. i don't say it too many times, but i say it sometimes. the ohlone have not been
respected. the commissioners and the general manager and a few others have allowed ohlone to remove remains at sunol. i don't know if you have been briefed. one of them found the skeletons of a very ancient bird by calaveras, and all of that is connected. thank you very much. >> vice president moller caen: thank you. any other public comment? next item, please. >> clerk: item six is other commission business. >> vice president moller caen: madam secretary, is it at this point we discuss the rules of order? >> clerk: no, that is item number 11. >> vice president moller caen: okay. commissioners, any business to speak of? okay. next item, please. >> clerk: item seven is the 2017-2018 annual financial
statement. >> good afternoon, commissioners, i'm the deputy chief financial officer, and i'm here to present the 2017-18 audited financial statements. i'm also joined today by nancy rose, kmg, llp, who will present the rest of the figures. may i have the slides, thank you. i'm pleased to report to the
commission that the p.u.c. issued its fiscal year 17-18 audited financial statements on january 25, 2019. this also marks the second year of the cleanpowersf's financial statements and these are presented within the hetch hetchy water and power's report. kpmg aan independent material auditor noted with no material misstatements in the financial statement. in summary, the audit objectives of the external auditor were to ensure the financial misstatements and to evaluate the policies used as well as the presentation of the financial statements themselves. notable highlights again include no material misstatements and no internal control deficiencies. this is the tenth consecutive year of clean financial statements and is an attestation of the p.u.c.'s
commitment to excellence in transparency and financial reporting. we thank all p.u.c. staff who contributed towards the completion of this audit by providing financial and operating information to the auditors in a timely matter especially the financial team within financial analysis services. we thank kpmg for timely completion of the audit. at this time, i'd like to introduce nancy rose, partner at kpmg, llp, who will deliver the presentation of the audit results. >> thank you for having me, commissioners. as nancy said, my name is nanny rose, and i am a partner at kpmg, and i was the signing partner on the three financials that nancy mentioned. as nancy mentioned, the three reports we provided were the opinion on hetch hetchy's water
power and clean power, water, and wastewater, and as nancy mentioned, these were all clean or unmodified or unmodified pnl. while we do not do an audit of controls, we do an understand you go of an twrernl controls and processes of the p.u.c. and at the relevant reporting entities, and as nancy mentioned, we had no material weaknesses no, sir significant deficiencies. nor did we have any internal control deficiencies identified. although our opinion was an unqualified clean opinion, there are one -- every year, we have a paragraph that's under the emphasis of matter paragraph that addresses the fact whether the p.u.c. and hetch hetchy water-wastewater are all departments of the city
and do not represent the city as a whole. the other paragraph that was added was the gatsby paragraph otherwise known as gatsby. we thought that since it was such a significant paragraph, that we do call it out in our opinion. here, we are talking about what the significant accounting policies are, and while we do identify a couple of them here that we spent significant amount of time, it is not the full list. you would be able to see that within the separate financial report in their note, too, but cash and cash equivalents, including investments, cash and capital assets, the pension plan which maybe a couple of years ago, we stood up here and had the addition of gatsby 68.
but on the pension, we do still spend considerable amount of time, we do look at workers comp. i also looked at the opposed employment benefits, and then we look at revenue recognition. some of these are significant estimates, and so they take a lot of management assumptions that are put into calculating what those estimates are, and we spend a lot of time going through, getting anderson understanding of those assumptions, comparing them to other benchmarks, making sure those assumptions appear reasonable. there were no audit findings related to it. the next two slides go into more detail about the gatsby 75, and i won't cover all the bullets, but i do want to point out a couple of things.
that because the city -- part of the standard is critical in determining a discount rate and determining what the actual liability would be, and there are some constraints around determining that. the city has gone through and assumed 7.5% as the discount rate, and they were looking through and determining that that is a reasonable rate, but there is a clause within the standard that says at any point they're not able to ensure, that they would have to change that discount rate. i only comment on that because if at some point, that discount rate does have to change from being something like 7.5 to maybe 3% or 4%, it could have a significant impact on the
financials, so it would be very important that the standards and the policy that the city has right now, that they maintain those. if they change anything, it would have an impact on the liability. but our audited procedures on -- auditing procedures on that, we did have no findings, no adjustments, etc. the other comment that i have is management override and control. so while we do not do a fraud audit, we are required to consider whether the financials have any fraudulent misstatements, things of that sort, and something like collusion, we would not be able to identify, but we do look at management's ability to override internal controls, and that exists at every entity. whatsoever sets -- whoever sets the internal controls can
change them. we scoped that into the audit, and we did not identify any issues in that rather. while the city is going through and contemplating what the pg&e bankruptcy -- the impact it could have, they did make a disclosure into the financials that this did occur, and that they are evaluating it and still at this point do not know what the impact would be. so -- so the rest of the slides are these, and i don't know if any of you have any questions. >> vice president moller caen: commissioners? >> commissioner moran: i don't
have any questions. you made more sense than i could. >> vice president moller caen: i was going to join in that. in fact, i would request that you elaborate even more about gatsby 75. >> okay. i can go on -- so the city has offered to retirees upon retirement that you will have a post employment retiree benefit. it says you have to have -- what would be the liability that needs to be reported today in today kazz dollars that something you're paying in the future and regarding that liability.
in order to get the time -- [please stand by] >> i appreciate the attention to it. it is one of those assumptions that you can make yourself look goodbye changing it just a little bit. so it makes sense to pay a lot of attention to it and make sure it's being done in a reasonable and correct way. so thank you. >> of course, it is based on what we see healthcare costs
today versus down the road. >> good luck with that. >> yeah. to the chair. >> i have a question that's a little bit off point from your presentation but i understood, maybe it's another opportunity for another presentation, but i understood that gas by was looking at the value of water as part of its accounting measurements and trying to create a value for water as an asset as a resource. do you know anything about that or -- >> well, from time to time there have been instances where they have tried to do that. i don't know recently whether there has been a lot of movement. i thought that was a pretty exciting project at one point. >> sandler, cfo. i think perhaps one of the things you're talking about is
-- relates to -- what are being called regulatory assets and they provided some clarity regarding existing guidance about the capitalization of that. so for example, i think some folks at the municipal water district were looking for direction about can you capitalize an fund with capital dollars conservation improvements, storm water management improvements, you know. >> watershed improvements. >> and the guidance is that you can. >> is that a change in the regulations or a clarification. >> it was a clarification. >> i will let accounting speak if you allow me to. but under the public investor-owned utilities have
had gasby is for government and fasby is for financial accounting. fasby has had the accounting for a number of years and eric said it is more clarification. >> okay, thank you. >> question? thank you so much. >> you're welcome. i would like to take a minute to thank, as nancy did, the staff who were absolutely wonderful. they got things to us in a timely manner, made it where we were able to get through the audit and were in the trenches with us and we very much appreciate that. >> after 10 years of audits. >> not anything in the notes of note. does that conclude that report?
>> yes. >> okay. next item, please. >> public comment. seeing none, the next item, please. >> item eight is report of the general manager. >> the first item that we have is clean power sf update. agm, barbara hill. >> assistant general manager for power. i have the usual update on customer enrollment and services. a little bit on clean power rates and pg&e's anticipated rates and clean power sf given pg&e's bankruptcy filing. on the service front things are going smoothly. we're serving about 111,000 customers right now. customer accounts, i should say is more actual customers but accounts. 111,000. about 4,200 of those are businesses and households in san francisco that have elected
to upgrade their service and receive 100% renewable electricity from clean power sf. we have the same opt out percentage, 3.2%. things are going pretty smooth and steady. meanwhile we're very busy preparing for our next auto enrollment. approximately 280,000 accounts. mostly residential customer accounts will be enrolled in april of this year. so that's 280,000. and this week we began mailing the first of our four clean power sf enrollment notices to customers. those are the enrollment notices required by state law. we'll be sending these notices out in batches. 70,000 notices for each of the four months. 70,000 notices per week and it will get us fully compliant with the state requirements.
we have other communications practices, social media, relying on the supervisors to include information in their district newsletters. various different techniques. buying ad space in community newspapers. making sure that we get the word out that we're continuing to enroll and through april. with respect to pg&e rates, at our last meeting on january 22nd i mentioned we would continue to update you on what's going on with pg&e's rate changes for 2019 and how it may impact clean power sf. so on the 22nd we were anticipating that the california public utilities commission would be approving pg&e's generation rates on january 31 for implementation in march.
shortly after that commission meeting an alternative proposal on pg&e raets for 2019 was issued by the california pc. the alternate proposal would include beneficial changes to how the pcia is calculated and how the exit fee is calculated for 2019. good news. with the all tern nat proposal the timeline has shift i had. we now expect is california pc to act on that proposal february 21st probably. and that would mean that pg&e's generation rates and the pci changes will go into effect in either april or may of this year. so meanwhile until pg&e's 2019 rates are changed and adopted and go into effect, clean power sf existing rates will continue to be charged and in effect. it's set to provide customers with a 2% savings against
pg&e's generation costs and that includes accounting for the exit fee pg&e charges. so we'll continue to keep an eye out for impacts there and report to you. that brings us to pg&e's bankruptcy filing and impact on clean power sf operations. you've probably seen all the coverage. it's been pretty extensive. pg&e filed for chapter 11 bankruptcy on january 29th. we indicated to you at our last meeting that a possible impact to clean power sf, if pg&e filed for bankruptcy, would be a delay in revenue remittances from pg&e to us. so remember that when you're a clean power sf customer under state law pg&e handles the billing which means the customer receives a bill from pg&e, they pay them and pg&e passes the portion of the payment that belongs to us on
to us. so pg&e did with bankruptcy interrupt the remittances, so we stopped receiving our share of the revenue from customers from pg&e when it filed for bankruptcy. however, as they had indicated and as we had worked with them prior to the bankruptcy filing, pg&e requested that the court authorize it to continue making its payments, remittance payments to ccas as part of its ongoing normal business practice. just a couple days later on january 31st, the court issued an order authorizing pg&e to continue its payments to ccas and on february 4th pg&e resumed normal payment remittances to clean power sf including all the remittances that they had held since january 29th. so we're all back and fully
paid. we received all of our remittances now. that's good news. we haven't experienced any other impacts related to the bankruptcy in the clean power sf program. they're doing the meerting, billing, credit collection for cca accounts as they did prior to filing consistent with their tariffs and their other legal obligations. so with that i'm happy to take any questions you may have. thank you. >> i have a question. are all ccas dependent on pg&e? >> yes, all ccas under state law are required to receive those services from pg&e. >> the ones in the south are sdg and e or whatever. >> from the investor-owned utility that otherwise serves their area. they have a similar relationship with the customers as does southern california
edison, liberty and pacific corp. >> any questions? >> i have a question about the interruption of remittance. is there the possibility they present a package to the bankruptcy court for a restructure that it might include not paying their remittance? >> no, it's my understanding that they have asked for authority to continue to pay our remittances throughout and that anything that they submit subsequently won't include our remittances. it is my understanding, however, that other creditors could contest that ruling by the judge and so we're not completely out of the woods yet because others may want to challenge the judge's initial determination. so we'll have to let that process play out. but our interests will be
represented at the bankruptcy case court in the event someone raises such an objection. >> thank you. >> any public comment on this report? the next item then. >> next item is water enterprise capital improvement program quarterly report, dan wade. >> good afternoon, commissioners, dan wade here to present two reports today, first the water enterprise capital improvement program as part of the 10-year water cip. so i just want the start out with some highlights of this particular reporting period. the long term improvements which actually includes both the yard and the future
watershed center, the yard portion is 94% complete and we plan -- we are nearly done with the design and bid documents for the watershed center so we expect to be able to advertise that in april. the powder activated carbon feed system to address taste and odor issues at snow valley water treatment plant was ready to be put into service as of the end of the year prior to the mountain tunnel shutdown which was a goal. they are still finishing some miscellaneous punch work items. we haven't had to use the system because we haven't had the taste and odor issues but it is there for us to use if needed. we did receive responsive and responsible bids for the san andreas pipeline number two replacement. we had to reject bids the first time around. this time it was successful. both bids were under the
engineer's estimate or close to the engineers' estimate. we awarded that and expect to start construction late spring. for the san francisco recycled water treatment plant, the construction of the buildings has continued. we've advertised the distribution pump station and reservoir for construction and we're working on the pipeline punch list. the pipeline is essentially complete. and then we've also to date in this current fiscal year installed 3.7 miles of local water pipeline here in san francisco. and so this is just a recent photo of -- fairly recent photo of one of the buildings at the yard and again we are nearing completion with this project in late february we expect to have substantial completion and final completion in april or may.
so there is some landscaping taking place, paving, electrical work, those kinds of things. the watershed center we are oef very excited to advertise here in a couple of months. for the west side enhanced water recycling project, aka san francisco west side recycled water project we're about 28% with the project overall. this project i'm sure you recall is to deliver up to two mtd on average of recycled water with peak deliveries up to four mgd during the summer. this project consists of four construction contracts, the treatment plant project is ongoing. the pump station and reservoir was recently advertised. the pipeline is nearly complete and then the future project of irrigation retrofit to be able to distribute the water is at 65% design. and so that project will still
go forward at a future date. that contract, i should say. >> the groundbreaking is anticipated to be when for the recycled west side plant? well, for -- there are four contracts. we're well into construction on the major work. the irrigation system, i can't tell you exactly when it is scheduled to be advertised but i could get the answer for you. we're about 65% done with design. >> we had the original groundbreaking. so these are contracts, right? >> that's right. four contracts, several ongoing. one is essentially complete and we have one in the future. >> you aren't supplying water yet, right? >> no. >> when will that be? >> let me look that up for you in a few minutes and i'll get
that answer for you. thank you. and then i just want to point out that this project is continuing to supply great job training opportunities for local residents here in san francisco and as you know, the purpose of the job training program is to provide opportunities for individuals within the sfpc's water system territory to get good job training and career development opportunities and so this is ms. robinson who agreed to be photographed and doing a great job providing needed skills for the project and getting some career development opportunities simultaneously. i can take questions on that and i think we need to take public comment. >> i have a question on appendix c. i was trying to figure out how
to interpret that. >> appendix c of the report? >> staffing plan. page 42. >> of the water enterprise report or the wesip. >> that will be next. >> okay. >> i have a question about the watershed center. i would love to hear how it's evolved since we met last offline because i think it's a very exciting opportunity and love commissioner kwon to possibly join because i think his experience with the cal academy could be valuable. i know you're issuing contract. want to make sure the experience down at the watershed center is every bit as much as it can be. >> our staff, the general manager for water, our staff has been working on that and we just provided a memo to mr. kelly a week ago documenting
the changes we've made. one of the key things is we have found a significant amount of remains and artifacts from the tribe there and that will play a much bigger role now, we think, in the interpretive facilities because of the degree of material that we've found and the rich history that goes with that. but again we just gave that memo to the general manager and i think we can schedule something and follow up in the very near future. >> does the rfp include the firm that is going to do the interpretive displays. >> the rfp has already been out. we've been working on that all along. this looks at the changes we'll be making based on some of the discussions we had and that new information. again, we can schedule that in the very near future. >> that would be great. i know it's sort of a special art to be able to do those interpretive so they're en gaininging -- engaging at all
age levels to get the place to be a destination point. >> we would love to weigh in and add value to that. thank you. >> thank you. >> answer your question when would recycled water be available. it's march of 2022. that's the scheduled completion date for that project. >> mr. wade, it's really nice to see all these stars on the report, the cost status, and the schedule status. very impressive. >> i'm glad you appreciate the green stars and we're not talking about red dots today. >> before you continue on, is there any public comment on the water side? seeing none please continue. >> okay, so commissioners now i
with like to talk about the water system improvement program quarterly update october 1 through december 31 of 2018 and as you know we are nearing completion of the 4.8 billion dollar program. we have a couple years to go but we're 97% complete overall. you can see the project count by phase here. the primary projects that are still active are, of course, the replacement project that is near completion, the regional groundwater sludge recovery projects and the close-out projects and the almeida creek recapture project going through a seqwa recirculation in the near future. so i'm happy to show this photo
of the downstream face of the dam. what you're looking at there is a 220 foot high embankment, four million cubic yards of earth and rock fill, and when this photo was taken, the reservoir hadn't start evidence -- started to rain yet. we're happy to report that the dam is retaining water at this moment. we're up to elevation 711, six feet over the restricted level set back in 2001. now, it was actually much lower than that when we started this rainy season. it was around elevation 608 so it's come up quite a bit in the course of the last couple of months and especially the last couple of weeks. the ongoing work is planting vegetation, paving roads,
installing instrumentation, getting the scata connected up and quite a bit of work ongoing but we're getting towards the end. this is a photo of the approach channel that leads up to the dam so we're looking from upstream to downstream in this photo. on the right side of this photo is kind of the shadow of the intake tower and this approach channel is essentially the cut through the old dam that's lined with riprap in preparation to receive the water. as i said, if you look at that today, this photo is taken a couple months ago. if you look at that today, you would see water in that space. so i'll look forward to showing you some photos of that next time. regional habitat restoration program is essentially complete with construction but we do have a long-term monitoring program that has been initiated
to monitor the special plantings that are going to replace the non-native vegetation that has been removed especially in the peninsula watershed. there is unique technology being used to our advantage including the use of drones to monitor the plantings. i just thought this was an interesting photo for you to see what's happening on the watershed. i'm also happy to report that the original bridge that was demolished prior to our modifications that were made to the spillway of lower crystal springs dam has now been replaced and completed. the bridge was a county project. they had to demolish the bridge about eight years ago so that we could do our project to modify the dam spillway and raise the parapet walls and they came back in after we were
done with our project and rebuilt the bridge. it is a beautiful structure and we're able to celebrate that on january 11th. so now the trail is reopened and people are enjoying that use. with that i'd be happy to take any questions. >> any questions? >> is this money appendix c time? >> yes, thank you. >> any public comment? >> i would just like an explanation of the graph that's in appendix c. >> the explanation of appendix c, okay. so when we -- any time that we baseline or rebaseline the program, we take another look at the staffing plan for the remaining work that needs to be done. and so what appendix c shows is -- are the equivalent --
full-time equivalents in terms of people on the y axis and time on the x axis and a forecast what we need in both city staff and consultant staff going forward to the end of the program. so the purpose of this chart is to chart our forecast against our actuals. we're running below what was forecast. now, a large part of this is due to the fact we've had some delay in starting up our groundwater storage and recovery wells. the seven-day testing has been delayed due to some changes on that project and so for that -- that's the primary reason that you're saying the dip in actuals versus forecast. we're running below plan. we do expect to catch up and so you'll see that peak that's near the beginning move towards
the right. primarily due to that project. >> okay. you hit upon the question which we're spending less labor than we thought we would. is that good or bad news and it reflects delay in the recovery project? >> yeah, primarily due to that project, yes. >> are we looking at page 42? >> we're looking at page 42, yes. >> does that also mean that the plan -- the plan has a fairly steep drop-off in june of 19. that means that will probably higher levels of employment will continue beyond that? >> yes, to some degree. although the steep drop-off is primarily due to the replacement project, completing construction and so you will see a steep drop-off.
but you will also see it not drop off quite as steeply because of the regional groundwater project is what i'm forecasting at this point. >> okay. thank you. >> good question. thank you. >> again i'll call for public comment on this item. does that conclude? >> that concludes my report. thank you. >> thank you, mr. kelly. next item, please. >> an update on the state water board's plan amendment and voluntary agreement negotiations. >> steve ritchie assistant general manager for water. if i can have the slides i'll update. first just a quick review of where things are at. on december 12 state water board adopted the plan as proposed but with important
amendments. at its december 12 meeting the california department of water resources and fish and wildlife presented updated information for the river as well as six others rivers to the delta. and those are depicted in this diagram here showing the sacramento river, feather, american mcel knee, san joaquin and other rivers were included in that presentation in summary form. so that the state water board's action was direct its staff to assist the california natural resources agency in completing a watershed wide agreement including potential flow and non-flow measures no later than march 1, a date coming soon upon us. incorporate those above agreement as an all tern -- the goal of the update presented for the state water board for consideration as early as possible after december 1 of
this year. at the last meeting i presented more details on the actual elements of the river proposed 15-year voluntary agreement so i just include them in this in summary form. a set of functional flows linked to non-flow actions depending on water year type. non-flow habitat improvement actions to be implemented with $76 million of capital expenditures. water development products, additional water for the river. early implementation of experimental flow and non-flow measures in the voluntary agreement with the irrigation districts and im-- the function of the elements of the agreement. a complete package to try to make sure we're moving forward in the best way we can for the resources on the river while
maintaining our water supply. the recent activities is where we are now so first as i pointed out at the last commission meeting in order to preserve our options to complete the negotiations, we joined the lawsuit january 10th with other members of the san joaquin challenging authority for the bay delta plan. we've continued to meet with state representatives to cabinet secretaries, other water agencies and ngos to further develop details fought voluntary agreement. the meetings are happening frequently now. you won't see much of michael in the next three weeks. he is spending a lot of time in sacramento in meetings and conference calls with other parties in the negotiations. we've been presented with high level results from the california department of fish and wildlife of the voluntary agreement which shows positive but really was just givin