Contracting to make sure all of our interests are protected. Can i make one suggestion to the information that you asked for you asked for the high and low bids and you also want the winning bid, which may not necessarily be the low bid okay. Taking that into consideration there are other issues, too. The initial bid is different from the final bid. Its probably what i am trying to get at is our history with engineering estimates. How they comport with the market . Because people bid what they bid for all different kinds of reasons. In some cases they just know that they have a strong position and can charge more and in other cases they really need the work and will bid less or the cost of materials goes down or they have a good supplier or whatever it is. So there are a lot of reasons for variation in there and i want to test of the proposition that an engineering estimate can be an effective costcontrol mechanism. Understand. Thank you. That concludes my comments. Any other comments on communications . Our next item oh, any Public Comments . Next item please. Item 6 is other commission business. Commissioners . Yes . I did want to raise a couple of issues before we go to the screen, over the course of the past several years we have recognized employees and vendors at this commission with certificates and photos and everything. And that has been wellreceived. Internally we have had a Recognition Program called the oshaughnessy Recognition Program and i had an opportunity to have conversations with the general manager about potentially involving our commission in that awards program, expanding it and promoting it. Because i think sometimes when you go through these economic expansions, you start to lose sight of the fact that the real asset and the real resource are the workers, whether they be our City Employees or they be working with our contractors or other service providers. And i know that there are some finetuning that we can do, but i want this commission to be prepared and donna, if you would put the image up on the overhead . To be prepared the same way that the recreation and parks commission, for example, via the resolution process and the mayors office, is celebrating its 7th annual recognition event for rec and park employees. And we have some elected officials who are participating and enthusiastically in these events and it goes a long, long way to give back to the employees in the city departments. I want the commission, obviously through you president caen to consider engaging me in a conversation, a dialogue about putting together a resolution that meets general manager kellys need and potentially kind of blowing out for lack of a better term, our own internal awards, reaching out not just to the public employees, but the private sector employees. And on a personal note, its enjoyable. Its appropriate for us to do, but its always fun that we look forward to it. The commissioners look forward to it. And the mayors have always participated, but i just kind of want to give a heads up, that im going come at you guys with some kind of proposal. Good. And everyone is invited to the event at the golden gate yacht club. Thank you very much. Well have one at our facilities. Thank you very much. Its a very good idea. Thank you, president caen. Any other business . Seeing none, next item, please. Item 7 is report of the general manager. The first update i have four is for you is the drought update by mr. Ritchie. Thank you, Steve Ritchie assistant general manager for water. If we could have the slides please. To provide the latest information that we have regarding the drought. In terms of some of the routinely our levels of storage and hetch hetchy continues to be high at 93 capacity and water bank is starting to increase. Were releasing water that we are generating hydroelectricity at home powerhouse, providing drafting flows from the tuolumne river, but ends up in the water bank. So its threefer at this time. I dont always include this slide. This slide is the status of other california reservoirs. Particularly of note, new molonas Don Pedro Reservoir at 36 capacity and quite low, anybody have gone upcountry, and you see how low it really is and those reservoirs are extremely low at this point. So were fortunate to have one that is much fuller. Precipitation, i have included this chart because we do continue to get some storms upcountry. So the red line is current year, 2015. And we have gotten to the level we were at least year in terms of precipitation. Not a great year, by well above 1977, which good news. I looked it up the snow pack, there is no snow. That is your answer. Upcountry precipitation, you see in july we have actually done well, above median,. 5. Which is above normal for this time of year and we still have time left in the month with potential thundershowers out there. And locally, we continue to have no precipitation really at this time. Some of the really good news is our customers performance on conservation. This slide shows total system deliveries and the green line continues to be essentially flat and wellbelow the reduction target, which is what the black dashed line is. That blacked dashed line represents a 14 reduction, systemwide. Below 2013 demandlevels, and were wellbelow that. So people are performing quite well throughout the system in terms of their behavior. In particular, within the city, is this is a new chart here showing the reduction in demand as a percent by month from the beginning of the year. The 8 requirement that came into effect june 1st, but you can see in april, may, and june, we have exceeded that 8 , and in june, we actually saved in San Francisco 19. 4 below 2013 demands. So conservation is really taken hold quite well. So people are going a really great job in terms of conserving. Can i ask a question about that . The implications for our revenue, because we havent really talked much about that, and were so glad that everybody is conserving. But i do know that it does have an effect on our revenue . Yes, it does. We talk about it every week and it has an effect not only on our water enterprise, but wastewater enterprise because the two are linked together as well as the power enterprise, because there is less water for hydrogeneration in the springtime and going into the summer. So yes, we have experienced a drop in revenues and were using some of our reserves, and were looking very oclosely at our budget and making sure that we stay within our budget means. As we prepare for the next twoyear cycle, we are going to take into consideration how if the drought continues, what its going to mean for our budget process as we go forward . At our next meeting get an update on had a . The budget projection numbers yes, we can get those numbers for you. Thank you. Back to the slides and i will change topic to one that is great interest interest of us the curtailment notices that state water board has been senting out. I included this slide as a general description of what their curtailment notices are. From the state water board that water is unavailable for diversion and the stated purpose of that is so that would water can be provided downstream for senior appropriators and senior riparian water right holders. The most senior in the system feel the pain last and obviously were quite senior, but there are other people who are definitely more senior than us. The notices require that diverters file a culturalment certification form, indicating that they have seized diverting water, which we call the full natural flow at the point of diversion. The notices do not require release of previously stored water and anything already put into storage is not curtialed and that water is all available for our use and no concern that somehow that water would be taken away. The first notices were sent to the San Joaquin River basin in april. More recently there has been a number of actions of interest to us, on june 12th, curtialment notices were sent to post1914 water right holders. Several partis to started to litigate, making various arguments. One of the key arguments there was no due process before the curtialment notices were sent out, because they seemeds very much like orders as opposed to notices. The curtial diversion including that for camp mather. We responded on july 6th and both of these items of correspondence are in your packets for you to see. July 10th, last friday, Sacramento Superior Court issued a temporary restraining order. So the situation has been one we have been keeping real close track of. That Court Decision last friday, i think puts the state water board in a position of having to reevaluate how they are giving notices out and its something that well watch very closely as things progress. So in summary actuallies, actually on the operations side, practically it may not make much of a difference because july 12th diversion into the system were about 230 cubic feet per second, but releases were about three times that much. So really water is coming in a little bit of water is coming in, but more than that is flowing out of the system. So, in fact, were releasing about 500 cubic feet per second above our full natural flow. So more water is coming out of our system than the river tully actually would provide at this time of year. So if we receive a curtialment notice of effect the flow is already going down the river. So in summary, again, dry year, but hetchy has been doing good. Water bank has worked well for us. As i reported last time, if we have a really dry year, we could run out. Conservation is still [stkropbg ] and systemwide demand hasnt been this low since 197677. Happy to answer any questions . I have one question about the water bank. What is the general plan about the water bank . Do we have certain dates or certain amounts that have to be in the water bank . How does that work well, the two are 570 acre feet is the full capacity and we cant go below zero in the water bank. We got down to about 55,000 acre feet this year, the lowpoint of storage, but we feed water bank with the water we release from oshaughnessy and release instream flows 500ique feet per second, as well as release from cherry, home powerhouse and we generate there. This time of year we start to feed water bank and bringing it back up again. We expect water bank, if its a bad year, we expect it still to get up to about 160,000 acres feet. If its a better year, the more the better. If it only gets to 160,000 acre feet as we take advantage of it next year, at some point it will get to zero next year, depending on exactly what demand is. So its basically done its job for four years running and that is really good. We are going to try to stretch it as along as we can, but that depends partly on nature and partly on culture customer demand. And partly on water management. Well, all on water management. Nature and our customers have big hands in this. Thank you. Any Public Comment on the drought report . Certainly the next item i have is actually recognizing cheryl davis, who has decided to retire. And cheryl has been with the puc, if you didnt notice for 32 years. So she is one of those employees that actually knows a lot that has gone on and seen a lot over time. She has been with the city for about 34 years. But one of the things that cheryl did early on in her career here at the puc is actually she managed the Customer Service bureau through the last big drought and i remember that drought even though i wasnt working here. It was a tough time and she did an admirable job doing that. She has led our water supply and Treatment Division for a number of years. She has served you as assistanted general manager for operations and served you as the acting general manager for a period of time and finally what cheryl has beening is workforce development. Not only just here in the puc, but across the bay area. She has been recognized by her colleagues at other utilities as being one that has brought them together in, i think, in a very significant way to bring this whole issue up to where it should be and the attention being paid to it. Cheryl really has been the driving force behind it. So im very sorry to see her go, because its truly a success. She ran an open house here last year and literally hundreds and hundreds of people attends those open houses. She has been recognized across our industry by different associations. She was actually a Founding Member of the Water Reuse Association of Northern California and president of that association for a number of years and very interested in diversifying our water supply as well and as been recognized by her colleagues as well for that. Its very sad to see cheryl retiring because of her wealth of knowledge and she is always one to be open and free with information to all of us who are working here today. So that i say congratulations cheryl, on your retirement and hopefully if you would like to come up and say a few words, we would like to hear from you. [ applause ] someone i wont name, but asked me how i endured it . And the answer about how i have endured it is that its such an honor and privilege to work in an area that is so essential. Both for people, and for the environment, and for the planet. So i have considered that an honor and a privilege. I particularly want to thank Senior Management of the puc for supporting the work that i have done in workforce reliability. Because at this point, mr. Harlan was referring to bay work that is 27 different agencies that are collaborating together. And the took a huge lead role in this and Ed Harrington called the first Strategic Planning meeting. His support as a senior manager of a major utility really set a tone for success for that and its progressively grown. Steve ritchie, who has been supervisoring my work has been very supportive and Harlan Kelley and one outcome of this is that the bay work model, there actually isnt anything else in california like it. There is nothing else in the nation like it. I havent been able to find anything like it internationally, and i am very involved with International Water associations. So the kind of tone that the Commission Takes about openness to innovation has really showed up here and paid dividends for you that i hope will benefit you for many years to come. Thank you. Thank you very much. [ applause ] cheryl is probably one of the people around here who has been with the organization longer than i have, and now that you know, that you are leaving, i think the rest of us are safe. [laughter ]. Cheryl is always about people. She managed the peopleoriented part of the business, the Customer Service section for a while. One of the things about her involvement with water reuse is that she started getting very interested in the ethical implication of water supply decisions that were being made. And really did some pioneering work, if you google her, you will find publication references all over of the place of the work she did in that and very much a precursor to the triple bottom line kind of thinking that were looking at today. There were some of us way back then, who thought ethics in water . What is the nexus here . Is it contracting . No, that is not what it was about. She moved the needle on that significantly. So i have said it before and i will say it again, thank you very much for that contribution to the puc. Thank you we do have something to present, do we not . We do have something to present, but before we present it, i just wanted to add that cheryl and i worked very closely together for many years. And i just cant believe this day has come that she is leaving us, but its been a wonderful working relationship and i have really appreciated everything that you have done for us, and everything that you did for me. Cheryl was acting general manager for a spell there, and that is not an easy job. And so we do have a recognition for you, that the secretary will read. Certificate of honor presented to cheryl davis in thanks, appreciation and commendation for her 32years to promote Environmental Stewardship and contributions that have benefited the San FranciscoPublic Utilities commission and the city and county of San Francisco. Thank you. Do we have somebody with a camera . I mean everybody has a camera. [laughter ] so cheryl, why dont you come up and well have a picture . [ applause ] that concludes my report. Any Public Comment on the general managers report . Next item please. Item 8 is the consent calendar. All matters listed here constitute a consent calendar, are considered to be routine by the San FranciscoPublic Utilities commission and will be acted upon by a single vote of commission. There will be no separate discussion of these items unless a member of commission or public so requests and if so the matter will be removed from the calendar and considered a separate item. 8a, authorize agreement pro. 0008 not to exceed 4 million and duration of five years. B, accept contract 2673r, approve modification no. 3, decreasing the contract by 478,716 and authorize final payment to the contractor. C, approve plan and accept cations and award contractor no. Wd2746 in amount of 4,316,950 to the lowest qualified responsible and responsive bidder azulworks, inc. Any items to be removed . Item no. 10. 8a. I would like to remove 8c. So may i have a motion on 8b on the calendar. Move approval. Second. All of those in favor . Aye. Opposed . The motion carries. Now well discuss item 8a. 8a, i really just have a comment on it. And that is that this is a procurement, whereby virtue of there only be one bidder that we would work with, they were able to dictate terms to us that were in excess of what we indicated our maximum would be. And because of the fact that they are the only people we can do business with at the moment, that that is we dont have much of a choice on that. What i would just like to ask our contracting and management folks is that we desperately need to get somebody find somebody else in the market that can provide these services. Its just an example of where market control like that works very much to our detriment. With that, i would begrudgingly move the item. Well continue to work and see if we can find others to provide those services as well. Thank you. Do i have a second . I will second. All those in favor . Aye. Opposed . Motion carries. Item 8c. I want to understand all our cisterns are in the Northeast Quadrant of the city. So the new ones are all proposed for the west. Now how about the southeast southwest . So there are actually located in different locations throughout the city. So this is just a new one that were putting in. Well, that isnt what the item says when i read it. It says that most of them are in the northeastern and the new ones that are listed are all in well the avenues, around you golden gate park, south golden gate park. So how about the other areas of the city . I dont see where any of them are located . We can provide you information on that, but they are located mostly on the eastside of the city, not just in the northeast side of the city. And they are located also on west side of the city and were just expanding them out to the avenues where the auxiliary water supply system does not exist, the High Pressure firefighting system. In northeast we tend to get good afternoon, president caen, in the northeast we tend to have pipelines and the south and west part of the city, we dont have that Pipeline System. That is why were putting more cisterns in the west arnold ends of the city. How about the southwest and southeast what do we have there . I think in the southwest we have put in some cisterns and in the southeast . We have Pipeline Systems there. So effectively, its been developed more on the Pipeline System on the eastside, than on the west side it sort of stopped around 19th avenue and never expanded out to the beach. And that is why the cisterns are going in out there. Its more costeffective for us to do that than expand the Pipeline System. Okay. May i suggest this was not really a thorough report in terms of the overall situation. We can provide an update on the entire program, to show you, its not just the cisterns, but pipeline expansion. I would like an update and more thorough report, because i had questions related to how the locations are selected . And we dont have to answer now, but i think it would be good to have a more comprehensive. We can definitely provide that, because we had an consultant who does quite an extensive analysis of the entire city and the awss system and we provide that to you in a summery summary form. We did that in con junction with the Fire Department as our partner at the table. And were actually putting in some of the new systems. Okay. Good. That would be great. Thank you. With that i will move the item. I will second it. All those in favor . Aye. Opposed . The motion carries. Is there any additional Public Comment on the calendar . Next all right, please. Item 9, approve and recommend that the board of supervisors approve the conveyance of an easement over approximately 3627 square foot portion of property owned by the city and county of San Francisco on sfpuc parcel 656 for the city of modesto and conveying the easement to modesto and execute an agreement conveying the easement to modesto and agreement with jw Gibson Mcelhaney henry, llc. I would like to move the item. Second. Further discussion . All those in favor . Aye. Opposed . The motion carries. Thank you. Item 10 approve the consent agreement for switching contract no. Cs169 approve modification no. 1 and authorize the general manager to negotiate and executive a consent to assignment to the existing agreement from mwh urs joint venture to mwh americas, et cetera. Through the chair, im going to have a number of questions and my primary concern is that my questions are going to lead to other questions. Its more procedural than anything. Im not comfortable moving forward today. Im also not comfortable with the situation that may end