Transcripts For SFGTV Public Utilities Commission 22817 20170303

That, and, secondly, for those for those of you who dont know harry lanes mother pass on last friday and present with his family as he should be and wanted to start with the meeting with a brief moment of silence obviously our thoughts with harlan kelly and his family commissioners you have the minutes before you do you have my additions, deletions, or changes or comments any Public Comment on the minutes seeing none, motion . There is a motion that has been seconded. All in favor, say i. Opposed . That motion carries next item is general Public Comment this is a chance for people to talk about things under our jurisdiction but not on the agenda i have two cards dave warner. Welcome thank you thank you. Ill jump right in an honor to be speaking im dave a palo alto resident for two million plus years and lived in San Francisco im here to ask you to start the process for creating a water be introverts reduction goal 85 percent of our water is enforced i want to mention 3 jurisdictions the first i had trouble mentioning this i dont know if youve read the Los Angeles Department of water and power the plan if you read that i was astonished los angeles will reduce waters imports from 80 to 50 percent by two million 40 with the conservatism Second District ill move one county south so Orange County their recycling one hundred million goggles growing to one and thirty million gallons i think the one and thirty million gallons a day is relocating annual use two million percent and all the more remarkable a given Orange County is convert a showstopper santa monica plans to eliminate water introverts by 20203 years from now theyre on track to do that the average rainfall is 013 inches a year half of the average rainfall so those guys are going a cobra los angeles and Orange County and are not we pleased that is great so if you look at our 2015 urban water plan we dont have an import reduction goal goal and stormwater plays in the benefits of the reducing ill ignore the environmental benefits for now but think what that means if we count on two million percent of the water coming from recycling by my thuj nail math we can eliminate a year worth of reservoirs of water reservoirs we have a huge reduction so ill quit and ask to say if you guys will work on the water import reduction in 2020 urban Management Plan we can have it in place thanks mr. Da costa. Commissioners on behalf of of all the citizens of San Francisco and more importantly the bayview Hunters Point id like to offer my condolences to our general manager harlan kelly and his family having said that, i would like to bring to your attention that the constituents of San Francisco are somewhat concerned that recycled water is going to be introduced into our drinking system and i know that some people look at recycle water in the way they should but let me remind everyone that the hetch hetchy water of the confluence is considered scald water pristine water and we in our ignorance should have used recycled water a lesson ago to flush toilets we continue to use hetch hetchy water to flush our toilets but what i want to say is that what i want to say is that we talked about cycled water in San Francisco were not paying attention to the contamination of the water shed like to talk about krooirgd water but not talk about how contaminated is that in Golden Gate Park or Hunters Point be it on Treasure Island and many of times radioactive impersonates marketrate change and the soils have moved from place to place to commissioners i know that people come up with all those models of youre going recycled water when recycled water is given to us mixed with Drinking Water and more chemicals are added to treat it then our children are our infants and young adults are impacted and many a time you want to know that in the short time you learn about it in the long term commissioners we this city and San Francisco are San Francisco does not have a toxicologist on board we need to use the intoxication cost to give us feedback but also have to use samples from the water so the public can get realtime results on the backside thank you very much. Thank you mr. Carl theres been some coverages lastly about what the impact it will be to the water supply by the ground water and i know that a great deal of work has gone into understanding did chemistry of that water and a what the constituents are and what the impacts likely will be and probably it be it valuable to have something that basically restates that that make available for the public that what the chemistry and the constituents and the frequency is what the back and forth chemistry of the water supply to have a firm factual basis yes, we can make the sheet available i want to be clear were using it on the west side of the San Francisco by daily city and San Francisco and san bruno for decades and were blending it into our supply at the Sunset Reservoir we have actually, the chemical nature the reality how the water we do have in the reservoir and also it is not just pure prosecuted to the full extent of the law hetch hetchy but the Crystal Springs and over in the east bay and our soil system a mixer of all 3 waters from that perspective that gets it together. Part of what i was responding to the sense maybe weve not figured i think we have we need to share with the folks what the information is thank you any other Public Comment. Moving on to communications madam secretary an update. Yes. On the correspondence log i wanted to note the addition of some formal emails he received on the is a to those names have been at to a sheet and provided did to the commissioner and copies to the public of all the names of individuals that submitted that letter. Thank you and on that the communications any comments and questions for the commission any Public Comment . Seeing none, moving on to other Commission Business commissioners . Seeing none, any Public Comment on the lack of commissioners business laughter pr next item a report Citizens Advisory Committee is ms. Argon here. Youre hiding in the back. Good afternoon, commissioners pleased to provide the quarreling report for the San Francisco public works the quarreling report provides the evaluation and the survey and the special the cac look forward to have the general manager harlan kelly at the next meeting at the end of the fiscal year for the prior setting the cac recent survey preparedness on the resiliency study in 2015 we very much welcome to talk about the priorities during the inaugural cac leadership held in july of 2016 cac leadership reaffirmed that as the administrative code and the deserved income for 20162017 the progress on the outcomes were used for framework for the cac survey respondents are 14 members and two million staff of the cac including the presenters and support staff and communication staff and executive leadership to fill the cacs mission to provide recommendations to the San Francisco public works to include long term financial finance and the surveys result is 88 percent of puc staff believes the cac adds benefits to the prodigal progress and the second outcome that the cac is representative the shareholders the cac members are recorded they are represents 77 key organizations weve learned the facts to the city and in regards to the jeff sheehy and education primary language and disability and present status the third desired outcome for the cac to be supported to philosophical our motion universal agreement we are you support by other cac leadership and staff and officers as well as sfpuc leadership and commissioners order to philosophical the capacity of the members have identified topics thanking theyll take the lead on to organ or organ are for the communication and appointing officials and constructive dialogue we look forward to using this empowerment to achieve those goals since the last chair report the commission in september of 2016 the cac welcomes the supporting members to the group and pleased to fill the vacancies for representatives for the constituency and the puc Capital Improvement plan in our district 9 seat marilyns from the Mission Economic Development Agency and district 10 seat founder of the social group for the board of supervisors president from the ecology and for the mayors statewide seat ms. Mark farrell the cac thanks the long term members for the contributions for the cac kelly from be district 7 and to mark harlan from sfusd for the seat im currently working with jeff sheehy and the Mayors Office to produce the vacant seats and introduce a couple of my cac members here for the first time our secretary and chair please get up okay. And owen that served as the Small Business seat we gave you a copy of the survey and timed to go over a couple of items we wanted to talk about the cac members on how they feel about the cac member as as far as prepared and empowered 79 percent of the cac members feel empowered to hold people account and 14 person newly and 7 disagree one of the quotes of the members when i first came to the cac i didnt feel like im in my comfort zone but the cac people feel welcome and immediately have a place staff also gave feedback and they 76 percent of staff believes that cac members are fully prepared on the issues ive seen the capacity of the cac for the cac priorities while at the same time having given an empowered way to the community and with that, thank you, again ill take any questions about the survey or anything such seen let me know. Thank you very much and welcome to the members. We look forward to having you at the meeting and enjoy seeing the commissioners. I have a remark or mr. Mcdisposal. I understand youre one of the founders my granddaughter goes there laughter and amy and youre welcome to come up for Public Comment if you like. Okay. If there is any doubt we were a small town laughter thank you revenue Bond Oversight Committee report. Im sorry Public Comment. Oh, Public Comment. Okay. Thank you seeing none, well move on and my name is kevin chair the revenue Bond Oversight Committee as you may know prop p created the old Site Committee and weve presented as a committee 11 annual reports this is our lastly an annual report to the commission some of the highlights of the work this year to go into depth and talk about Calaveras Dam one the most intensely reviewed it relates to have firsthand knowledge of dam and will be able to report back in the next few coming years about status of that project cac with the project we also started as you may know that project program for a number of us wastewater projects throughout relocates the city has just begun work and so our review of the Capital Spending and management report will start this coming year but we thank the coordination of staff for making that possible we also started reviewing mountain tunnel as a keyboard interest to the commission as well as the city about status of repair rehabilitation of thatville resource had our first update last month we anticipate that project being staffed to what is needed to be able to have the Capital Resource we will be able to report as well as expanding the management to the commission this year been one of transition for the revenue Bond Oversight Committee theres been about 60 or 70 entrepreneurial work were for the first time fully staffed from that stand point as we gave me in more intensify investigation well be able to report back under the coming year we thank this opportunity for the annual report. Thank you thank you very much and for you and both the Citizens Advisory Committee we have a huge shop that weve undertaken weve come to the conclusion on and the System Program is still ahead of us huge public works project a limit to the time and attention the 5 members of the knick commission can commission pend on items we depend upon the work of our two committees and the efforts our people put in to make sure that all the bases are covered that our operations are fully transparent and that they meet the highest standard i appreciate your participation for the Citizens Advisory Committee thank you, commissioners thank you any Public Comment mr. Da costa. Commissioners as chair rightly stated you commissioners can do only so much but you can also delegate to get factual reports when i made a statement and in the 3 minutes i would require half an hour to explain the changes and all the other things that are going on at it Southern California its from which the water is captured you cant do it in 3 minutes but on the two reports or the report that was just presented to you, we the public especially it comes to rate increases need to get a line items how they were generated to put on the side so this is accountability and transparency now we all know that we can talk about mountain tunnel in a very general way i dont want to go into the details but we know that recently before the board of supervisors and going to be spending 21 million over a period of years and they is no guarantee that everything will go well, if it didnt then well be spending oath 651 million to build Something Else we have to be up front we have supple and astute citizens following the midtown the same with calaveras and covington tunnel today when we go before the board of supervisors theyll talk about the 30 million grant for the lower cherry conduit i think that is called technically called let me get my glasses maybe the first time ill using my glasses at city hall yeah 300 million for the lower cherry aqueduct we have the commission projects and so we talk about a lot of projects but we need the public to get some factual information factual information how things are done i call the imperial data i collected the data going back years from the 17 and if you do have it i can produce it thank you very much. Thank you any other Public Comment . Thank you seeing none, weve move on to the report of general manager first up will the drought update 345ig9d into the flood update in but future mr. Richie steve richie assistant general manager for water. And he, he building this will be the last drought update that i will give if you want to update it call it Something Else but shades will show were not suffering from a drought at this time heres the reservoir the charts shows our toll system is 91 percent full the reason not 100 percent there is plenty of San Francisco that will be melting our water picture is good as ive produced calaveras is higher than it should be were working hard to get the water down there above the restrictions so were working hard on moving water out of the reservoir our cumulative perspiration chart the blue dash line is 1983 the wettest year the red line represents 2017 above that and for the last two months almost so were looking at a lot of precipitation that has come down as the next slide shows a good chunk of that is snow now this will probably looks different during the dry years we had used a different scale we didnt have to show big years theyre so low but to be in 1983 the purple line we expanded double the size of scale on the graph and yet the red line for 2017 to the left of purple line that means given were ahead of 1983 but with the snowpack to put on numbers the up country either precipitation as far is 53 plus inches more than one hundred and 50 percent of yearlong perspiration had a lot of water in the up countrys as well as in the bay area were running a measly 25 percent of average for the year so they got a catch up to do we dont need to were trying to get water out of calaveras like i said and last but not least our total delivery slides from the chart the green line is tracking right on top of the blue line so 2017 is oil and certainly well below the reduction i think the black dash line is the voluntary reduction line is going away as we get into the wholesale customers with the availability of water im available to answer any questions. Commissioners any Public Comment . Okay. Thank you mr. Carolyn and moving on with mr. Richies and talk about demand management and safety the awareness of this issue where were going not discharging water we wanted to make sure you understand our camp yes there is also a memo in your packet and commissioner caen asked about that where were at and prepared the slides to present on the memo it covers all the bay area outside of San Francisco reservoirs we have dams within San Francisco as well so i next slide, please this shows by the blue stars that regulated dams exist and up country and San Mateo County and San Francisco county and this is a chart that shows what the state division of jurisdiction is dam heights on the left Storage Capacity along the bottom those are small numbers so basically the dam is bigger than with 25 feet and has more than 15 feet of water arcs of water a regulated dam and this has 58 feet of water and 5 feet it is a regulated dam we use this chart to look at the stock so were not building a regulated dam in a water shed it is a small dam regulated, of course, and many of the large dams one thing to note there are federal hazardous in the chronicle a large article about the dam safety and about the dams there are 3 clarifications for hazardous circulations one is low a hundred no loss of life is expected if if the dam fails and no life is lost and no loss of human life by significant other effects and high hazard dam is lots of human life is probable and could have other lose but the lose of human life and one of the things that i think shows statewide if you have a dam no where near a population will be a high hazard dam a lot of the dams that are regulated are high hazard dams because there people that live here in San Francisco and alameda and San Mateo County. Those have my relationship to the condition of dam. No has nothing to do with with the conditions of the dams only where the damage are located it is it is miss operated or mother maintained those are the possibility result we laid out details we do a lot of work to inspector the dams. Would why 0 Cherry Valley and lake eleanor be high. Actually cherry valencia there is a camp ground down stream that represents the habitation i believe that hetch hetchy are high but that is a distinction that the safety dams use for Something Like that. A lot of cases we are looking hard and got to be able to get water out of the dam in a safe way this is a table that maybe a little bit hard to read we have 17 jurisdictional dams owning and operating the upper 11 are in the Regional Water system and the lower 6 are the ones in San Francisco and so they all this is information on how big the capacity and the hazard potential their raised high they all have Emergency Action plans in place a number of projects or Capital Improvement plan projects the last inspection date shown for the city dams the last inspection date was this morning this will be updated say now february 2017 note the calaveras is knowing the folks have been out on the project all the time so we inspect our dams and we measure barometers to tell you how much water that is in there and have time to do that routinely and take pride in managing our dams well to provide a safe tool to use and build a great business. This shows eleanor not having an Emergency Action plan in place. I know thats the early intact. Oh, the early intact. It is why it only impound one and 50 feet and down stream so that was example that was called low risk the only dam is called low risk because the lack of human vegetation. And then i wanted to note on friday the governor made a significant announcement about what the controlling dam safety walled on the lufshs that requires the Emergency Action plans to be updated infrequent that map right now are basically, the simple itself as possible and assuming there are ways that this occur and give realistic go scenarios if something happens they want to include the scenarios other than dam failures and the big thing was rigging 380 million to be appropriated to be at the time, for the next two years for flowed controls and directed and provided emergency flowed responses we will be looking at that im not sure it will be for San Francisco for the regulatory requirements and ill be happy to answer any questions you may have. Thank you, commissioners. Any Public Comment . Okay. Thank you mr. Carolyn cleanpowersf Michael Hines will be giving us the update. Good afternoon, commissioners michael im available to answer any questions you may have director of cleanpowersf i have a short update featuring the enforcement statistics and information on pg e rechange to take effect in march with respect to program impersonate as you may know we completed the phase one and serving approximately 95 thousand actually Customer Service points in the city 25 percent of the currently eligible customers citywide our opt out rate is 3 percent he expect the first phase one opt out rate will stabilize around this level since the last update on february 14th an additional 34 supergreen updates with 2. 9 perished percent we have 6 hundred and 29 customers that are executed up for the next enrollment 80 percent of customers have signed up for supergreen service when we enroll those our supergreen perhaps will be 3 that is 5 percent and as explained were preparing to conduct the next enrollment in may that includes the cud up customers along with net metering customers about 2000 to 250 hundred customers in the city our team is working hard on the growth plan and were aiming to deliver the next presentation at the meeting in april moving on to the pg e rates as you may know an article in the San Francisco chronicle suggesting a change in pg e electricity rates structure goes into effect in march the chronicle reported that means higher bills for san franciscans as the article subscribed it is effecting the pg e on teetered rates not affect the customers on other rates this change implements the California Public speaker with the residential tiers under the change the rates foyer tier whereon and tier two are going up and the allowance for tier 2 is enabling and for customers that consume the baseline allowance and thats up from 200 percent today so effecting doubling tier two allowance and finally a high usage surcharge for the largest of users that consume more than 40 percent the average san franciscan use about 200 and 80 kilowatt hours a month of electricity that puts them on the lower side of tier two this means theyll is e see an increase of a few dollars a month on solace the other customers will see a decreasing because of the lower rated tier 2 this change is not effecting the san franciscans than the pg e bundled customers the reason being that the tiering applies to the distribution does the generation rates are flat across the tiers pr with that, ill be happy to answer any questions you may have. Thank you you answered my question already commissioners. Any Public Comment . Im im sorry so the growth plan can you gives us what is in store. Yeah. So what we focusing on right now is a lot of the Financial Analysis and some additional work on probation readiness dpw a plan the next presentation will be a preview of the draft plan and proposals so and the proposals will take the effect of staff recommendations on the rate of growth, the schedule for growth and also recommendations on staffing as well and yucca general project timeline what we need to do next to put us in a position to grow as responsibly quick as we can. Will you present your charts of those. We will include a functional staffing plan if youre asking about that. Will you be able to show how the chart works. Sure. A roster. Yeah. Sure. Good report thank you. Any other commissioners questions or comments. Mr. Fried. Jason fried, executive director. Want to thank the gentleman that continues to do good work and seeing pg e placing a play with the rate structure if youre on next door other things youll sometimes see people having concerns it is cleanpowersf trying to blame the cac their community not just in San Francisco it is concurring it is important to get correct information your staff is working hard to make sure that people understand the big impacts on the bill are not the cca but the rate and structures the cpuc has lout pg e to make that is important to point out i also want to give you update of lafco as you may know we had all the board of supervisors commissioners get termed out of office at the end of last year and well be getting the newest members on board and planning the meeting on march 10 at 10 00 a. M. Youre welcome and supervisor fewer and supervisor ronen will be joining the board of supervisors and have the chair over of the public speaker cynthia will be on the commission on march 22 that is fun and exciting and encourage to attend and finally i noticed a large audience so anyone that wants to be part of cleanpowersf go inform cleanpowersf. Org and sign up for this this is the cheapest way to improve the vital needs and helps with the Climate Change go to cleanpowersf. Org. Any other Public Comment. I have a comment that is just a general Public Comment i dont have my solution but it mainstreams me how you people know about that program ill talk about it in a group and theyve never heard of it and love to join up i dont know what to do but it would be nice in the people somehow were aware of it from they want to join. Well go into the public outcome maybe not targeted some of the people youre talking to but we can look at our communicated plan and see if we can broadened it. Yeah. Why not. Sure. Okay is it like a set find postcards or things we can bring to the place of work people staff p there maybe that will help. We can provide you with the outreach materials and glad to make you ambassadors there we go laughter come on now i adopted one. laughter and its very clean. Okay laughter back to business mr. Carolyn quarterly budget update mr. Sandler. Eric sandler cfo here to present the Second Quarter budget status report that reflects the results through december 31st so halfway through the fiscal year 2017 in terms of an overview im happy to report unlike last year, i was talking about thirty and 50 million revenue divisions this year were on target and wastewater are higher power revenues lower but all in all were bringing in all the enterprises pretty much on track where we thought wed be. And ill pout a complete report in your packet an overview on the water enterprise were seeing increase in water Sales Revenue as in the cost savings for about 4. 2 percent higher thats driven by a budget revenues we have modest revenues on the retail side but the wholesale side i point out not because of wholesale customers are wasting water but were developing the budget we had to plan for potentially more serious drought confirming communication for the wholesale so then on the usage side with the debt service i remember we funded one quarter of outstanding debt with the water enterprise and puc debt that is definitely to the benefit of water enterprise this year in terms of the wastewater enterprise we are seeing a modest increase in the Service Revenues for the vacuum on the usage side where we thought wed be so were in line with the budget with the wastewater enterprise on the power enterprise we are seeing a slithered reduction in revenues that is preliminarily due to the bells changing selling less power to the district and more on the wholesale market and the prides are lower than fast forward but an expense reduction slightly lower and were coming in where we thought well be on the power enterprise and in clean power lower thats the 600,000 lower in the power Sales Revenue but a 1. 6 million savings in purchased and in line where we thought well be with the clean power as well and for all alcohol, tobacco firearms water power enterprise we need the fund policy articulate well actually have a presentation later in the presentation about the reserve policy but meeting the reserve and the coverage target and ill be happy to answer any questions you may have. Thank you commissioners. Any Public Comment . Mr. Da costa commissioners we have a very serious issue when we look at the Sewage Treatment improvement fragment and a task force that set aside 300 million half of it for workforce and half of it for outreach but at the inception we have one of the assistant general managers use the money incorrectly putting it nicely 200,000 and recently it has come to my attention after further inquires it the donations were given to some of the supervisors those funds i think that is not right and what happens is you commissioners come to know about it from after a long time and some of you are just dont paid attention we have to Pay Attention to this one similar thing because it is taxpayers money and remember once one of you commissioners were saying oh, you know that is just money no, no it is in the money it is taxpayers money so oftentimes if you really want to have a accountability i have to know about real accounting real accounting provide line by line items for example, during the summer when the mr. Mayor said the San Francisco public works paid for 2000 summer jobs if so it coming from the Sewage Program than those taxpayers members and those communities members im one of the last remaining you know, i know that commissioner anomaly letter said after a long period of time she fidgets for the community we love her for that i dont come here and watch that is happening at the commissions meetings it is business as usual nonnobody is asking the right type of questions no one is educated on issues with the impermissible data not use the freedom of information act to inspire up whatever but im off to the supervisors thank you very much. Mr. Carolina. Mr. Sandler one one time for the status update. Commissioner president Moran Eric Sandler here to may i the slides please that is our mid cycle update i want to talk about review the budget that was adopted by the commission about a juror that is a bioannual budget were talking about where we need the prior presentation we give you a pretty good idea and identify and any recommended changes for the upcoming 2018 budget so about a year ago you adopted a bioannual budget for 20172018 we are in fiscal year 2015 will half to three quarters you adopted an operating budget for the general as well as a twoyear budget the priorities we addressed when we had the meetings were drought management, cleanpowersf and completing the wsip and implementing the sewer system and increasing the pace of replacement and reconstruction of assets so im going to first review provide an overview of the budget you adopted and the assessment at the new year so here we go the 28 operating budget breakdown by 17 in fiscal year 18 and cigarette mended by the enterprise and the 2017 was there 1 billion and fiscal year 2018 operating budget over one billion dollars now the position authorizations that of contained were identified here for the fiscal year 2017 and the positions will will be authorized in the next fiscal year and breakdown by enterprise as you may know there are approximately 18 new positions in the next years budget in addition for 2017 a total of 31 positions over the two years and how theyre allocated this slide recaps the twoyear budget capital for fiscal year 2017, fiscal year 18 appropriations and the total that is broke down by wastewater hetch hetchy we had 550 million in this fiscal year appropriated the lions share or the biggest piece for the wastewater enterprise the Sewer System Improvement Program the same is true for 20172018 with just over one billion dollars appropriated so for the two year one . 6 billion appropriated for Capital Expenditures 0 now. Can you ask a quick question so does that its the ssi t for reserving. Yeah. Uhhuh all of the capital projects. Uhhuh. May i the slide please if we take a mid cycle assessment this is our Budget Priority we have successful draft planning and balanced the budget around the wastewater we came in so we really moved the ship with respect to draft planning thats been successful be were coming into as i mentioned the key projections we thought wed be and launched cleanpowersf and heard from mr. Hyperglycemim hime the Capital Improvement plan are moving forward with the w s i p. So when we think about whether or not we ought to have the changes with respect to 18 the resources you provide us with the bioannual budget we meet our objectives in terms of operating budget for the operating positions and the Capital Budget one of the total is in line where the budget no surprise so were not currently recommending any changes for the bioannual budget as the city moves through the Budget Development process for fiscal year 18 thats my report and ill be happy to answer any questions you may have. Like the twoyear budget is supposed to be whats the commission to do. I have lots of questions. Any Public Comment . Okay. Thank you that concludes my report. Okay. Thank you next item. Is the bay delta Water Quality control plan update. Good afternoon, commissioners commissioner president moran ceo thank you for having three and four two things i want to talk about first responsive to commissioner caens about the dams in the inthoerl customers provide you an update an informational for the California Service company they operate a dam called the dam and reservoir that serves the district for a total side in San Mateo County so i got information from them an urban dam it has a capacity of one and 49 million gallons certainly 0 small but one of the larger resources dam and 9 youre percent capacity it has a spillway that goes as a pipeline conduit at the bottom of the dam and it is close to the channel and essentially and thats the evasion water out of dam no known issues that the dam is inspected annually and cal water staff on a weekly a basis was a reads the barometers so the work theyre doing with the outside technical experts and everything appears normal it is an off stream dam it is not feed by a creek so cal water is managing this this has turned off it in take on the reservoir during this period to manage the level and operating a Treatment Plant as well so maintain the level and keep control of it so like i said no known issues at this time and as far as i know correct me if i am wrong that is the only dam that is permanently operated by the agency secondly, i wanted to speak about mountain tunnel because it is i think good news today, i think that is a good time to express my appreciation he look at my dates january 8, 2014, when i was notified by general manager keeling that portions of the mountain tunnel lynn were subject to at that time, catastrophic collapse by the empire and hetch hetchy to our customers and the customers in the city for many months until it got repaired i spoke to you on this particular issue at the end find january 2014 about a critical issue at the time i asked for your assistance and for the resolution of the issue ive spoken no doubt and also to the bosca braid the pays the goal of my comments to work cooperating with the staff to meet the serious challenge urgently and expressed my sincere predecessor and the customers 40 thousand businesses and constitution for leadership that mr. 0 kelly has shown and mr. Richie and his staff in addressing this issue and taking a hard task in a hard book what we need to do and thank water enterprise and hetch hetchy staff theyve done a phenomenal job with the critical planning and execution of this project and all the while for some of the worst rain weve had theyve been able to manage the reservoir successfully in a way that was very expressive from someone on the outside inform to have some bad experiences happen we believe this project represents the best of how puc and bosca Work Together identifying and addressing it and found out the best solution prepared to pay fire marshall and do the work for the Clinical Results and have an opportunity to do that the final results are not in the early indications the tunnel is in going shape good news and the repairs were done efficiently and Ferry Building giving an indication the access to the tunnel has been improving the puc weve taken the steps to increase the reliability it has reduced the risk of the supply splenic to the customer for that i thank you for your leadership much, much appreciated that concludes my remarks. Thank you and as you may know your expressions of concern are appreciated here and valued and probably more valuable than our expressions of thanks but we love those, too. I always wanted to extend appreciation when i can otherwise none likes to talk to to me thank you. laughter . Thank you okay any Public Comment . Okay. Seeing none we move on to the bay delta Water Quality control plan update mr. Richie thank you commissioner president moran and commissioners, i have a number of slides to cover this important issue the bay delta Water Quality control plan and its effect on the system and the things we recommend be done an alternative to a the state water board if i can have the slides please. As a quick overview ill give a brief summary of our conversations with folks in the last several weeks and focus on real primary issues what is the management how we manage our water supply and the second the impacts on the supply and the eco system and the alternatives to that. As far as the outreach the key thing on february 10th we had a meeting with the bay area water steward and cost the San Francisco Water Management and for wholesale customers and the fourths or fourth with the irrigation and the water control act and alternatives and alternatives economic analyze there were 13 people representing 11 groups lots of information was shared and discussions was very emphatic and lively with the trust they present the management model in management functions that are drawing conclusions in followup 0 that meeting we have shared Additional Data that was requested by the trust we reviewing the models they had prepared with our staff model doing the work and Pretty Simple and straightforward we are converging seeing the same thing the key point that models are only tools that provide answers in a policy context and what tom is doing proposing the challenging challenges changes that is clear for the commission to understand and weigh in on we want to focus on the policy choices focusing on the model is disdirected we need to focus on the policies just a quick refresher this is a diagram with the stream flow it shows many times that the district the irrigation district get the water below the dash line in the gray and San Francisco has the ability to divert the water above that you see in figures like 2011 was a big year and 2017 is there youll notice behind the box there were going off the chart in 2016 is a big year but basically have to store water in wet periods to survive the driveway period we have 0 capture water when it is available. And just one comment on that in california anyone that runs a water system and has a fan has to store when it is dry most people can do that on an annual kindly we have to store water in wet years yet for use in dry years. Exactly. Well cycle that it is much longer. Exactly were in the municipal thats a prim example their year to year perspiration and can have trouble that that as well. So our water supply plan is driven by Drought Conditions plenty of water in normal years but multiple year drought are a challenge for us one of the key things this commission did in 2008, we adopted the level of service for the water to survive the drought planning scenarios in 87 and 88 no more than two million percent for 200 and 55 million gallons per day we operated that way it was a conscious policy decision and the commission does understand those choices were not taken lighting that was well considered and bans my experiences and dug through did archives to find a photograph of the 87 to 92 i couldnt find it is in january of 1991 of Hetch Hetchy Reservoir and as you can see the islands with visible ive not seen personally i hope to not see. This was when i was managing the system. laughter . This is what you did laughter this is a joke when he turns the system over to me those numbers were full. The biggest challenge we have is not knowing when did extend drought will occur we need to plan for every year the beginning of or a continuation of the drought scenario that id like to refer we have a pessimistic view this is prudent in terms of water system under the existing conditions we 3rek9 a shortage in one in every 10 years this is over the last 20 years has worked well, for us. Is that true about 10 years. About one to 10 years when you look at the longer average i like to say that year to year that matters but about one in every 10 years what we see the flow requirement we have to meet that number increases to two or three times every 10 years with the long term average. But the potential impacts of 2016 state proposal. Im sorry steve in that conversation when you say shortage do you mean rationing. Yes. The states proposal for 40 percent flows on the 12 and february and june is significant because 52 percent potential obligations in the agreement we will be facing increased rationing dry years first, you see at the normal or contract level demands 50 percent rationing infrequent and the contract level is 200 and 65 million gallons a day we owe to the wholesale customers and for San Francisco but a 200 and 33 million gallons her or per day the last drought period for normal demands that was 200 and 23 we see 50 percent rationing in extreme cases there at the current level of demand one and 75 million gallons a day that two million to thirty percent rationing is on top of what the by itself confirming people cut the demand by two million per and will have to ration if he and the dry years of shortages in words the next 3 slides show graphically how neck this works there is a lot of demolition bow the two key lines the blue lines that run intentionally across the chart and the grayish line that run below that the bars represent releases for stream flows and Climate Change and in flow roifrdz and water visible i available to San Francisco and cumulatively add up to blue line the upper blue line it is how it performs in the drought added to two hundred and 65 billion gallons what is built into that the rationing that we need to survive the long term drought into the baseline somewhere you notice on the right hand the total storage the measure the dead pool will halfway down it is the water at the bottom we cant get to 98 acre feet we call that the dead pool not available for use that is in fact, operationally zero for us in the drought planning you take the system to the very end. And a point that maybe lost on the screen or monitor is the right below the dead pool is store. Absolutely zero. The bottom off the chart is not zero but very negative. The bottom of the chart is plus a million acre in the gray dash line how the system storage will change the total storage if we had to contribute our share to the 40 percent below standards the differences between the solid blue line and dash line is 98 acres that is as far as the additional storage well have to obtain if were going to remain whole in the scenario this is radically in effect. I dont understand this years there the bottom line. Those are the years of our designed contract so starts in 86, 87 and runs through 92 and 76, 78 the following two years. Okay. So what about more recently. Well, that is what we call the design drought the worst drought weve ever experienced we use this for the operationally we do this is not how the system performs in the last 4 years the system performed well got water banks got to a lower 50 thousand acre feet and had another year of drought it would have been begun well not be able to take water out because of the districts. A so this is our policy. Yes. This is our policy not the system operation. How we look at the system as far as the drought and the designed drought in the the Environmental Impact report this is what with the the analysis to justify the program and the project awhile maintaining the water supply and protecting the environment at the same time. That policy has two comments one is that it is one of the two foundational policies for water supply and water supply reliability so that level of portions and something i think that others have questioned i think probably one of the two issues that are the largest policy issues that come up in the discussion obviously that can be discussed and can be examined but cant be assumed away if we look at the changes that the policy shortage but we cant assume it didnt exist we have to recognition it is there for a reason and that unless we change our thinking about those reasons we need to assume that thats why it is in the analysis we have that we present. Again, the other piece of that is the 200 and 65 levels of demand that fulfills the contract obligations it can be changed but certainly not changed right now we have to live with that and make sure we examine that. And thats the second foundational policy. The second graph shows the same information except it is for the 200 and 23 million globulins a day for demand in this case we dont get to the dead pool a face between the lines the dead pool and the blue line above that a little bit more water at the 2 housing unit and 23 million gallons a day if you look at the lower line that is the 40 percent unimpaired flow and seven Hundred Acres between what the escape is and what we need to survive if we have an unimpaired flow at 40 percent. Sorry it is so complicated what will that weigh into as part of m g d. Ive not calculated it over the year we have been naval what it calculates as a shortage that we have fill. Based on the reality and get on understanding. Uhhuh, uhhuh. And then the third graph shows the same information for one hundred and 75 million gallons a day for demand in the base case with no inu unimpaired flows we get to the subsequence a half a million gallons so with no additional contribution to the river our system storage looks pretty good good we dont think that will stay there but with no additional requirements i can be pessimistic about the future but again, if you get to the 40 percent unimpaired fee requirements the decrease in storage so the gap here is the delta is three hundred and 80 thousand to again an impact at the level of the demand going from significant to the significance to the if we stay at current levels of demand want to make sure folks understand this is how it works and figuring out how well operate going forward. And what Major Investments could help on those ill call them uncertain Water Supplies and achieving the objectives will require new storage, however, ground water or surface water luke purified water projects and other projects purified for the Drinking Water ultimately there outcome on certainly direct uses are not permissible and talked about the great job that Orange County is doing they have a large ground water facility that is a great place to do it we have a unique but small you cant get the residents to do portable but another investment in the diesel vacation that is roughly one hundred gallons a year and the contribution of that those are the kinds of things were trying to put more information and emphasis those are not significant projects either in cost or feasibility. And lastly i think weve talked about that a little bit the San Francisco chronicle has anecdotal on january 22nd certainly more needs to be done but nature is likely to reduce the flows so better to plan for a drier future the bottom line their i do not like ill remember that for a long time what we have to do. Steve before you gone the slide prior. Uhhuh the Major Investments. That goes to the point of saying if we are faced with Significant Impact quantity and reliability well not let that stand that will cost money this approaches that issue. Yes. Yes. In several ways maybe you can get more storage good luck with that but 3 things you could tissue dollar values and nothing small. There are plans to raise hetch hetchy 50 feet that was not a difficult to surmount challenge and certainly costly. That is on half thats right. They asked me to look at that i wont speculate. Im being a smart i want to turn what about the environment that is important to all of us and looking at the affect on the reservoir the state will basically says i dont care the flow immediately has benefits for the devil is in the details not for the river but made that can say for the delta that was what we were asked to do i say legislation in 2010 what is the concerned the unimpaired flows are believe me a heavily modified environment for the rectifies and specifically 40 percent on the river february through june we dont believe will change the benefits on the river weve invested with the irrigation it is 25 million and trying to understand what we can to improve the river so we really support a portfolio of activities to improve the river and increase the population in the transcribe towards first is better managing the hat trees on the foundational flows theyre a way to use the Scientific Study to understand among the years to achieve the desired outcome the 40 percent flow is a gross measure but the our environments is sensitive we need to be smart and given the balance water use a amongst the environment it is a much more thoughtful way to approach the flows and certain pulse flows and backing out to allow areas it is important things we can do and actually plenty of support in the size e survives field their hard work it is going to be hard work Habitat Restoration is important thing to do weve lost a lot of gravel and so well look to periodic augmentation of those great deals of that will cost serious money to move in the grateful and the addition of boulders and reaching the river near the dam will expand the habitat for the critical finish in question one the large things and somewhat controversial is reducing predation 95 percent get that way and ways to cut that back by finishing more base misunderstood but a big deal and the next couple of slides mildly relative been on the left that was caused and who was pulled out of spectrum were 8 juvenile finishes similarly in that that bases are liking to eat and studies that should a lot of finish get con 1u78d by base we have to have control over degradation and predation in part that is other finish and managing the leads is another boys and girls club for those folks not experienced the water finish theyre in need they can obstruct the migration so it takes a lot of work to remove them interest is so many flow the height have been washed out it may be a good year this is what you see interest this is i believe thats the slals river but totally branch that is a similar feet along one of the rivers that again those weeds are invasive and represent a problem we have to look at we cant ignore the problem and hope that goes away and choopg tree practices there are a hatchery on merced river having finish that supergreen breeds with the natural finish so they dont return to the hatcheries this is a situations what hatchery situations is going on so we need to look at hard how those hatcheries are being operated a review project that we charged them and they have followed up on the repgdz they should do that and also, they dont mark and tag the marketing finish it is hard to tell the difference so theyre not actively accurately counting where the finish are going to we recommend the state needs to do as part of the package a the state has to be a partner in all three of those the department of finish and wildlife hesitate not been helpful on the preinundation they think that is an adverse affectionate certain times thats not helpful we talk about setting a serious goal and trying to accomplish it as weve mentioned before voluntary agreements with much better path to follow were trying to make progress on that front and it is challenging because parties dont trust each other that much and hard to make progress in a difficult world i hope one of the things that is clear to me the state board proposal dont worry it is flexible i dont believe that the case the objectives live regardless the choices around them that is an important consideration and also i think the settlement will not be easy well have to give up water and money to make it work there that is a matter of doing it in a smart way we dont want to be all losers well all be that if we dont move forward. So in summary those are impacts for the reservoir we believe that are better ways for fundamental goals and other measures to make improvement and negotiate the settlements to have a solution im available to answer any questions ill be happy to answer any questions you may have. Id like to point out that the package that went out with the agenda with the memorandum goes through with a point by point discussion of issues that were raised by the folks memo not commission that is something that was requested and point by point discussions i think what youve done Ferry Building so pull out of that the key issues and the other information for those who are curious questions. Yes. I have. So you talk about the foundational flows in the restoration i know that overtime with certain rivers naturally they get flushed and clean that stuff the rectifies between our foundational flows and the habitat will achieve that kind of natural cycle. It will achieve a better cycle natural is a word i do go with were effecting the leaks it is so hard to call things natural certainly we think that is will make a significant improvement one of the things that was said and net spent a lot of time on the dam well have steady releases under the old standard and trying to introduce functional flows so were exterminating but with he can, do with the hydro graph so it is a success in terms of a great deal of funding and mobile listing the environment and pumping up the dry areas alongside the rivers we have a body of work we can point to you can do this if you work at it. I want to respond to that knowing and getting a better understanding of what is going on here with the what is at stake we could regardless of where the land with the state proposal the advancing gratefully of the other benefits for reversing the habitat and youll see things and present as an alternative. Yes. But i hope well advance those regardless of it as you know, good stewards of the environment thats one piece and the other is the unnegotiated settlement im hoping we go are need to move quickly in the memo that says in 2013 we didnt have time to come up with a new analysis we used 2009 it is four years since the 2013 presentation that was a draft update by the same environment when we respond to the quickly had a number of points it didnt properly properly Analysis Community response to rationing and in the memo it says that tsf the residential sector that absorbed the rationing that explains the economic the lack of Economic Impact well, yeah thats what we do is Irrigation Water we water lawns stopped it and reduced it thirty percent brow below the water baseline in 2009 it was important for San Francisco public works to acknowledge not only a lot of facts and figures were inflated but all the different people that think that 49 million 89 thousand jobs will be lost the 8 year drought is congesting and thats a policy decision we dont want to run out of water but get updated fingers figures from staff and updated the populated the big differences were adequate for the water availability and for system lose and evaporation so our model is very simple it is basically looking at what we will happen in a 6 year drought and designed drought started next year and we rebound up to two hundred plus million gallons a day certain the dense storage of 96 acre feet would be accessed but we can survive the 6 year drought of record that means at 40 percent ration. 6 year drought of record 87 to 92 way not the 8 year design but essentially if the hydrologic record repeated itself it could happen in the 40 percent february to june well survive it in years 7 and 8 there is trouble and after year 8 well have a 4 hundred and 60 foot arbitration shortage with an additional water supply or conservatism and again that is two million percent rationing we looked at zero percent rationing in the first two years and 10 percent in the 3 and 4 year and two million percent from that point on quickly our recommendations will be important for the San Francisco public works to correct the record on the information that we dont feel is accurate no where and work towards a plan to feel comfortable with the 8 year design drought and the delta plan and currently you to more ground water banking for the irrigation in the central valencia and pleat there and to support dispatch management for the goals and objectives and implement them all the measures that mr. Richie pointed out to we can reduce the amount of water that is going into the river thats fine for us all about the salmon and eco system the great thing about the wasteful fall it has to 50 percent meeting the objectives sorry i went accountant over. At the last meeting he got not reiterate for trashing the analysis but theres a difference in the economic analyze their tools useful for different purposes i feel comfortable with the financial analyze it is more concrete and easier to quantify and a level of provision what is wrong with the financial analyze it didnt count for a lot of things so a Financial Analysis will tell an owner of a redwood effort in their best interests in the financial best interests to harvest those trees and sell the timber create jobs and create income and be the right thing to do and Economic Analysis will take into account that yeah, but you lost something and hard to put a number on it but it is important so i think that has its use and important when we look at it from an Economic Analysis i feel not to expect too high level of provision i think that is just really hard to get on things as the Economic Analysis but i think they indicate things we should be paying attention to things lost maybe dont have a price tag associated with them thats where the value of those asks be for an Economic Analysis 49 billion estimate the second one is the unpublished update my recognition 24 or 25 still a big number i dont know what the update is balance will come up with my guess another big number and frankly that is most of what i need to know it is a really big number and it makes it worth spending what you have to spend to make sure that that have had the opportunity outl eventuality never i think i left the impression that the Economic Analysis is privy too but an important benchmark and looking at what the value may not have a price tag on in your policy discussions. Thank you our next speaker martin. Well and hell be followed by jerry listen. Thank you commissioner president moran and commissioners sorry i have a voice issue today ill keep my remarks brief im in support of the trust and gave up another day of vacation instead of going to work it is for the eco system i look to have is extremely important to me i also though left hand carefully to steve richie presentation and like michael i took a course from him 22 years with usf the best course of the two year program laughter if you can read. You can have an extra minute laughter or heres the thing i understand how important i havent heard much about that success looks like what the numbers are there is a lot of room for that and i think we all want the same thing whether it is reduce the flows that can be achieved with the measures or based on the measures by steve richie i think anyway you can get there from a holistic way and a very, very positive way the minute we start to think this is something we cant do it enacts our thinking of staff they fight and didnt serve money we can do this weve got brilliant people leadership is absolutely important from this organization given for all we have i promise to be brief ill leave it at that thank you very much. Thank you, jerry land and shell be off the top of my head by marty. Good afternoon thank you for having me. Im here before you representing actually, the Unitarian Church of palo alto im a member there and i visited with you and shared my personal thoughts of in january, i offer the reading of a letter from the church if i can have your attention unity church of palo alto want to thank you for grappling with the water update with the amendment youve been tasked with a tough set of discussions regarding the freshWater Management under our jurisdiction and extending the department of emergency for public input on this until march 17 of this year is welcome we acknowledge this is a an emotional time for shareholders as is community you use the q and a thats an acronym for the church asks you to stand for the lennar flow from january to june the river to give back to Mother Nature to save what is the damaged eco system this is a moral issue as it is an economic or human health issue the irrational eco system has been degraded by us and you must be returned to height by us your Commission Decisions are critical the Water Quality control plan amendment to have the last can change to right the wrong we owe it to say future the q and a impolars you to apply the Data Available to your thought process that data shows that people in our jurisdiction are replaced their water by thirty percent just to confirming measures our communities are on the trajectory to continue this program consider this safe water directly applicable to the water in the river flow in closing we offer you the unitarian 7 principle quote replace for the interdid not have all existence were a part we appreciate all that youre doing. Thank you. Is that part of our record have you sent it to us. Ill be happy to provide it. Would you please. Marty and off the top of my head by bill martin. He had to leave. Oh, he had to leave then calling names in my comments directed to a bullet point in mr. Richies presentation on page 8 printed materials in the believability point the flows are not a useful mechanism in a heavily modified environment please take a look at the copy of the chart that is being passed around right now that comes from page 3 dash 21 of the appendix c of delta plan please not the tight corealization between the highflow years and high salmon escapes as exterminated and knowledgeable people about water flows during the mid 2000 in the middle 1980s the early 19 psychos the early psychos and the mid 50s were periods of high flows those wet periods all produced higher salmon escape time and quoting of the bay delta Water Quality control plan cd numerous studies recorded point primary fork of tributary of the salmon are reduced spring flow and that populations on the with the tributary deflt flows with the san juan end of quote please note that sentence is followed by 89 signifies published from 1989 to 2009 remind you that that scientific under the circumstances more water equals for fish and ininfrared flows are what is needed did that chart shows it thats why we should support the unimpaired flows not reduce that that is working with nature not against it thank you very much. Thank you tom and tell me if i got that anywhere near right. Thank you for having me. I wanted to my name is tom im a Sierra Club Member and Drinking Waterside of the problem i have a red 3 Water Quality analysis and certificate and water plant treater certificate i want to point out there is a lot of concern about you know the ebbs and flows will increase the flows you know produce for salmon and there is a flip side to that if you reduce the flows and industry the habitat what so proudly we hailed at the twilights last gleaming . That the 100 percent will crash and i agreed with the engineer radically the duration a group that works for the california state of california that is called the bio Assessment Group half a put together data for the last 27 years on the problems and they can be a be helpful to the functional flows that will be good i think that we can do this and wouldnt that be a lovely legacy for your commission we provided the Drinking Water and helped the salmon like i said working at a water Treatment Plant there, there is so much pressure to provide the Drinking Water 365 days a year and takes away from the other details so im hoping that we can have those increaseds thank you. Thank you nicole youre next and peter will be following nicole. Ceo for bosca you dont i want to respond to with the conversation today first on the two functional positions commissioner president moran those are for the first being the commitment to the level of goals for trout irresponsibility and the second the pucs obligations to contractual and other obligations for the wholesale customers both of those are the foundation for all the planning that is in the Regional Service area for every single one of the customers and as we look to the future one of the things that were seeing and planning for and trying to figure out how it was it mooepd means we have a low per capita average 60 throughout the areas the intent to maintain that and to put into practice new activities to continue to keep the per capita use down but it is rightfully or wrongly depending on how you feel it is the area targeted for Significant Growth by abag by the state and not by the planned growth that is already in the books and on the books but abags new planning is coming out planning to put more businesses and more residential customers on the wellbeing corridor because of growth benefits of that and i say that just because when we talk about what but future holds and meeting that one and towing million gallons a day not your customer will double the use between now and then but the service area about get denser an area where the recognition is that water use is so efficient to put people there thats what were seeing going on and the serious issue that your wholesale customers are facing in their relying on the one that and 84 million gallons a day that much more difficult to ration when our looking at that i want to make sure it is how important it is on the issue of puc being a leader i think were working hard in the conversation saying we understand the settlement and maintain and willing to do that it needs to be the right package that is a leadership position in the group of people that that is involved were continuing to offer the efforts to support that as well thank you. Peter, calling names . Engage my name is peter im spanking on behalf of the trout unlimited the goal of trout unlimited the protection of the cold Water Fisheries and water sheds with the san juan water shed we prefer an agreed upon slow articulates why is water so important water is the finish like air is to humans what kind of habitat what you be without air water is key to aquatic but water alone is not the only answer the water so needed to refresh the fisheries one thing for the flow target noshthd settlements and the sfpuc staff has indicated support for this approach we ask for the settlements that be achieving specific bio lateral points like the sustainable populations but we naturally want assurances that there be a douchd implementation to achieve those inputs and that do you have an opinion management decisions will be on sound survives we want recognized experts in fisheries boil for the design implementations of monitoring effort and two in the do you have an opinion Decision Making processes thank you. Thank you thank you. Im speaking for the bay chapter of sierra club i have over three hundred and 50 letters of members for the commission. Thank you. Do we already have those. We have the emails. This is the hardcopy i wanted to show you the mass. I get it. Speak to one point one of the mr. Richs slides 33 he pointed out we need to make progress quickly but all need more time to reach the fully negotiated settlements the last time point bay delta Water Quality control plan was updated in 1995 should happen every 3 years tlns theres been plenty of time were two million years behind taking these next steps i think with the president that we have in washington now and both houses of the congress that we are already seeing on a daily basis just on sloth of environment protections and on slot of the environmental protections it important for us to stand up for our california institutions like the state water board that have been intended to protect our environment so what i want to say on on behalf of our members is urge you commissioners to decorate our staff youre smart and knowledgeable staff to build a plan for how we can comply with and in fact, speed what the state water board is asking us to do and then lowest the water board know that we support them in their efforts to protect our states environment thank you. Thank you charlene calling names . Thank you. Im here in support of Economic Analysis as you described it a little bit ago it seems pretty clear the health of the delta depends on flow of water through flow to the bay of at least 40 or 50 or 60 percent in the analysis it is essential to support the bay delta plan to protect 9 eco system and the salesman damaged it in rural areas where people make theyre living on salmon finishing and those areas that dont get take into consideration often big policies but we all love our salmon and value the salmon eco system i think we can require greater conservatism and irrigation especially when i drive down 5 and see water separated i cant believe that and i think there is a great deal great deal to be done to practice augural in ways that benefit the water needs i think that is will be interesting to investigate the percentage of crops and produce with irrigating for export that should be an issue that is a part of mix of your consideration and i think that we should not says our rich deltas and farms for profits and to someone who is on the outside that certainly is what that seems happens over and over thank you. Thank you calling names hi julie i came up from palo alto to support the river trust ideas although sitting here and listening we want to say i support the trout folks i think we californians have shown have not voting and action we care greatly for our environment and care about the riverside the wild finish in the rivers and personally dont believe well have a very good life here if we dont continue to attempt to care for the amount of environments we have left not that weve yet spoiled of the struck that what mr. Richie said when he showed the river and mentioned much of that has been cleared by the strong flows it seems to me flow is very important in our rivers to keep a healthy eco system for the sanctioned of wild critters he commend the idea for restoration but sounds like flow is very important and i think that there are smart ways we can store water i like the recharging idea out in the valencia and the cycle idea so basically like i said, im here to support the trust and those folks and the environment. Thank you, thank you very much. calling names well, i feel nervous standing here and tangling to ive never done this before and im not sure my commentary will be coherent so accuse that a couple of points this report and often how we think about things are separate constituency groups so this address the city and agricultural and Environmental Needs we think about those mutually executive of executive selfwe give the city this of water oh, yeah that is agricultural and meeting their needs i appreciate the jobs that you have trying to juggle all those saying we want that much water for this and that but the point id like to move to say i guess it is francisco you used the word should read i think steward the condemnation is just for the environment but i have i think you are in a position of being steward for all the constituency groups trying to manage and balance all the needs one of the problems i think with reports that came out is it is hard to appreciate and it is hard to imagine all the changes that could be take place over the next few years i live in 0 Mountain View we reduced our water so much i wound up having to pay more for water its true that is what happened and there wasnt my paying it was just being more mindful and educated and informed i didnt say have to hook up a gray water system there is a lot more that i can do as as individual this report mr. Richieed report covered some of the things it can be done on the river i noticed they didnt include things in the agricultural and in the city that is what youre probably having to deal with right all the support but that is is what youll have to envision youre not sitting here and listening to the reports you have to try to imagine how things could be and could be so much better with the usage oh, is my time up oh, thank you. Thank you calling names im sorry. Id like to give my time. We dont john can speak you can speak but not combine them. Go ahead. Good afternoon thanks for holding this working group and taking inputs from the public im john the lead scientist for the bay conservatism advocacy nonprofit based in San Francisco and weve done a lot of work on the san juan water shed obviously in the bay im a little bit disturbed by staffs presentation it is misrepresented the state water board proposal likely will impact the the probability of the impacts coming to fruition it marketplaces a survives with the value of threshold delta flows and it misrepresented the efficacy of other measures without flow the one thing that could agree with that proposal is that 40 perris of unimpaired flow is not likely to achieve the requirement for the federal, state, and local is nice to do something for the finish but restore the finish levels and the question is whether the proposal will accomplish that so to address those skrirpdz id like to request it the n g r team meets with staff and comes down to a common understanding of what is in the proposal and likely to work on but moving on from that the with respect to agenda items, please direct your questions to the commission as a whole tolame river that 5 year drought day lights the problem in 2010 the state control boards held hearings and produced a report that recommended 60 percent of unimpaired flow needed for the protection of flow 60 percent of the san i cant think river that was from uc davis and others and recommends were based on a fungal flow approach thats actually, the state water board that turned that into 60 percent approach the current proposal for hocking to 50 unxrard and thats just from the tributaries in the from the san juan but a piece of pie is less than 60 percent of pie we believe that with the habitat you can satisfy the states legally requirement to restore the benefits with the 50 to 60 percent of unimpaired flow but will allow the state legal requirement not the same as no benefits from the 40 percent unimpaired but in order to meet the standards for clean water and restore the salmon populations california federal requirements need to be more flows and than the state water board is proposing and large investments in habitats. Thank you very much yep. calling names . Good afternoon thank you for your time im will an sfpuc customer and want to present one additional consideration which is the water shed enterprise Environmental Stewardship policy as sfpuc saying if so a fundamental component of the responsibility and further states were commented to Natural Resources that protects and reverses the visible populations of species and maintenance the eco system for that for future jarthsdz though im supportive of Management Practices that were introduced by no means consider those are substitute i agree for the intumentsz. The puc is not meanwhile meeting the goals the low river flows have impediment and raised the water temperatures and eliminates oxygen the plan presents an opportunity for the sfp sfpuc calling names and i also became aware of the enterprise Environmental Stewardship policy very inspiring and im here to speak on behalf of the most of focus on salmon and structuurgeon so should care about them if theyre not paying attention to us they can be if we take care of them since the last water board has been a significant drshs in the population with the regulated flows with the amount of flows down the either through is a lot of research what a happens how come those fish are not reproducing theyre only reproducing with adequate growth because sturgeon eggs require oxygen sturgeon so intaerld flows and pulse will not do that but need the cold water for the eggs to hatch and really the last speaker in order to meet the policy intention with the nice environment document ill encourage you to support the increase flows recommended by itself water board for 50 or 60 percent we human beings what adapt and accommodate to whatever the water situation i i dont think all the Economic Analysis are able to tell us what is coming to us i teach people how to do the gray water and see the motivation to protect the environment by you use of water and suggest that you know, i think that most californians would like to see Living Rivers and that might be the decision it come down to that we really have to choose well support a Living Environment because i believe this has has to do with with the Mental Health and our Public Health what were doing to the world around us i think those amazing species deserve to survive thank you. The set of cards is that the last one you didnt hand it in come on up. Im teresa and im here as an avid water enough of the with the merced once youve been on a river you always want to go back and appreciate that river im mostly here a retired Elementary School teacher im here for the future generations and what were doing cia was a woman with two other women in the early psychos who were married to berkley professors and their husbands wishful educators they looked at when we met for tea and look at the bay and see the amount of sewage that was dumped. What was being kumgd in the bay and decided that something had to be done so the 3 of them with the pessimistic input they were given they couldnt do anything worked and organized and able to create the organization they which is still as strong in existence and working to continue to improve the bay we say as stewards the farms and the delta especially you to look at what are we are doing need to listen to the environments and we need to look at the future generations president kennedy said ask what youre country can do for you but what you can do for your country with the Political Climate we all need to be looking at what can we do and how can we make this Work Together and heard some really good speakers with good ideas moving forward and i think you need to look at your commission and what can you do to support did growth and what can we do to preserve the environment for the future generations we you need to think of the faces of young people not just the aged of all the people in the room because we need to do that thank you. Thank you any Public Comment yes, sir. Conferencing and commissioners i have a background if hydrology and one thing i realized that the public theyre not aware of is the time lack between recharging because because you get a few wet years didnt mean the aqueduct will recharge you have percolation and certain types of rock that takes water to penetrate and sometimes, it takes at least 10 to 15 years of water into the place it it takes time and a lot of times water that we get from the rectifies most of this from surface run off and substitutes that gets into the layers and so i just thought that the public could be better aware of those things thank you pursue any other Public Comment. Sure. I was afraid you were going to go to 4 im chris on the Sierra Club Water board it seems to me this is strong as 0 jonathan said and contrary to your staff i urge you look at that further i think that is a mindset it causes people to see the facts they want thats a known psychiatry a in the voluntary agreement is a red herring it is not voluntarily is the state and the federal requirement restoring salmon and the eco system it is like kick the can down the road there is no timeline as to when the volunteery agreement needs to be done seems like there is a motivation to stall all parties dont want the agreement they want i will be awarey of what is called the volunteery agreement i want to hold up the drought update the last page that talks about totals i noticed in the summer water delivery is increased by 50 percent why is that it is lawns irrigation that tells me that summary water is not required you know what is required is the winter water everyone lives and goes to work i dont feel like that is something lacking in the winter as far as water so right there it makes a point i think we have a mindset to keep things as status quo the idea of growth from the west corridor maybe how much growth can we have with the resources we cant assume growth forever i urge you to look at things to accept as given and question them. Thank you any other Public Comment. Okay. Thank you all for coming thank you for your time and sharing our points of view with us let me just as a prerogative as the chair the discussion that was had over the past month or so has been preview i look at the work today and this is a gross simplification but do it anyway, thats if we were to do nothing except 40 percent flows as the state board has suggested that will be a huge change to our system and huge impact on the system i think that is clear in order to deal with that challenge there are limited options we can try to revisit or rice rise those core functional policies we have, we can try to find additional water someplace or try to figure out a better way and i think those are our options and that would be helpful to narrow the discussions from whos model crunch numbers better to focus on the underlying issues that we are dealing with that i those are at least i take out the basic issues in front of us so lets see if we can find a better way and thats part of what we get out of the negotiations. Commissioners any other comments. Just the process and timeline what is it from here. Comments are due to the water board an march 17 the public process that is concurring were engaged in voluntary discussions some are represented in the room and ongoing at this point. Yeah. Ill add one thing the state board always in addition it is due may 17th they expect consideration for adoption march 17. You said may. Said may. March march. I know that is options september. Thats what theyre telling me. And so well, there be a point where it comes back to the commission with a proposed settlement will look like . Arrest, yes. Absolutely. In the next sometime between march and september . I cant give you a distinctive timeline right now. I think that state board has established a timeline finding etc. That will happen unless there is a negotiated settlement and it is correct that that is not entirely volunteer but in response to that will happen and will come back to the commission for adoption or wont and the state board will precede with their actions so something will happen the stakes frankly for coming up with a negotiated settlement are very high their high for us their high for the entire state and theres i think if this doesnt have peoples attention nothing will i agree. Thank you all im going to call the consent calendar and then well go into closed session. Madam secretary call the content. Calendar, are considered to be routine and may be acted upon by a single roll call vote of the commission. There will be no separate discussion of these items a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. Okay. Thank you commissioners any items taken off of the consent calendar. Okay any requests from the public to remove items from the consent calendar seeing none, can i have a motion . The calendar is moved. During closed session we discussed items 22 but no action taken no discussion on the other items on the closed session agenda can i have a motion . Whether or not to disclose. Second. There is a motion that has been seconded and any comments or questions any public all in favor, say i. I. Opposed . That motion carries now lets go back to the past regular business with the consent calendar madam secretary when did we lose the room. We can be in here until 515 okay so lets be expeditious and if there is might want to be looking at the calendar to see if there are things to be sacrifices items 13 and 14 item 13. Call together public hearings discussion and possible action to adopt the puc 10 year capital plan 20172018 to 26 and 27 discussion and possible action for the Financial Plan for fiscal year 20172018 through sorry two 26, 27. Sir. Commissioner president moran and commissioners cfo and the last couple of items before you sanitation you remember a bio annual budget for operating budget and Capital Budget which you adopted for the fiscal year and next fiscal year the city chart requires an annual adoption of a 10 year capital and Financial Plan in the off years like this year the Financial Plans are less expensive pan the bioannual budget we have updated and changing the shifting of the 10 year horizon we took autopsy fiscal year 17 and added fiscal year two million 27 and uses the b point schedules for the capital programs and thats essentially the 10 year capital plan and make any necessary adjustment to the Financial Plan indicating this im trying to keep the comments brief we updated the Financial Plan and made modest adjustment to the sales volume to reflect being out of a drought scenario question updated did expenditures question counted when we need to fund the wastewater and power Capital Improvement plan so thats was the 10 year Capital Improvement and the Financial Plan rebuttal now i pointed out a couple of things the 10 year Financial Plan and Capital Improvement didnt reflect the information related to cleanpowersf that will be contained in the growth plan that barbara and my clients have been talking about and not what the scope of that 10 year capital plan is requiring and then the updates to the Financial Plan basically the results in the presentation are you know modified improvements offer what i saw a year ago so that water and wastewater increases that were the aborted bill increases are in several Percentage Points lower than last year were in the low double digit and high digit range for the wastewater increases i think that the next update that well be doing with the Capital Improvement and the financial and bioannual budget we will be go seeing significant update on the capital side a new baseline for the System Improvement Program a better look at what the end of the plan will look like and integrated the plans with the tunnel so the capital plans will be significantly baseline and so i think that will be you know the next version of 10 year version capital plan will be helpful. You mean in 10 years. Next year next year a high quality information. How but how does that work. Every year a capital plan in the charter well come back next year and with another capital plan. Announce with the bioannual budget and the rate package for the next 4 years. But well have better information on mountain tunnel we, voices rise the capital plan and working on a more rigorous plan internally to have better information as we go forward. I have a couple of questions the cleanpowersf is not in the plan. Not within the scope of that 10 year or 10 year Financial Plan. Whats the suggestions that come out of growth plan have capital impact. Will be incorporated in the next 10 year capital plan. Next year. Uhhuh. Were not going to make Capital Investment. Clean power a separate enterprise. If there were any Capital Investment out of grow platoon can addressed through a supplemental appropriation. Without knowing what is in the growth plan i believe that cleanpowersf to build the local build out there will be presentations and the assumptions this next year they wont happen at that pays but hate for there not to be an opportunity neither as a supplemental or integrate it this will not be a missed opportunity that there is speaking that requires a goal appropriation so one thing to remember cleanpowersf is here the rest of puc is here whatever happens will include the projects and the Capital Planning will come back to you but a separate from our charter requirement and adopted 10 year capital plan every year and of him plan. Okay. Does the cca have a Financial Plan. It reflects the program as it exists with the 60 megawatts program so i think the growth plan really what is going to be the Financial Plan and you know theres a Capital Improvement. My finding the growth plan includes the financial objections i dont know what the time is as yes. Yes. Will include u include all that have. Each the documents is one separation. Uhhuh. Water wastewater, power each have yes so there will be a fourth. Thats my understanding will reflect the plan for that. Right thats why it seems hike we are adopting this without the fourth piece and not presented until next month. Right but i come back to the charter the fourth piece will come only with a role out and now the longterm projections and what the revenue will look like and look at the Capital Improvement plan and benchmark what we are doing today is meeting our requirement to produce a 10 year Capital Improvement plan as part of the Charter Amendments and with cca will not change. Thats correct. And then i have one other question around my hope again to you know be driving that as taking part of s example it were having a presentation the next meeting but would those reflected in the capital plan. The ssip is currently scoped and scheduled and costs will continue in the Capital Budget. In the 10 year plan. In the 10 year capital plan. It is in the 10 year capital plan. It is oh, if we could review that as part of infrastructure presentation in addition to what we have to get an understanding of what those numbers are and powered that would be great thank you. We will. Great, thank you. Any other questions or comments . Any Public Comment . Are we taking 13 and 14 together yes. You waited patiently it is your turn. Fair enough jeb from hope sf i want to quickly thank you to the commissioner, i saw last night and your staff for graciously making myself and other longer advocates part of team for the recognition last night that was very a very touching and wanted to thank you guys pubically this item we were heard you know obviously here because cleanpowersf is not in the plan so thank you to commissioner vietor for raising that while a financially independent program part of sfpuc or wont have a long standing up relationship with you individual and part of the power enterprise not work with micro and barbara on those things that is substantively different good afternoon. Or governance from the clean energy i raise that with you and certainly there is some governance menus from our side to have this run by the puc but nevertheless, run by the puc it cant be a separate entity it as has the same good afternoon structure and really the puc needs to be building projects for cleanpowersf to use themselves which there increase the resiliencycy isnt community that is on a tentatively i didnt peninsula ultimately a 5 year plan or a 10 year plan for cleanpowersf is intended to be separate from what is built as the entire sfpuc 10 year capital plan that is doesnt pains makes sense i think that needs to be referenced specifically document the differences why they are different for the public necessary need to reference specifically when the information and similar data forthcoming for cleanpowersf the growth plan that was going to be coming 90 in april we originally told jeb would be here by december and now this is april and then the Silicon Valley clean power that improperly their territory in the minded weve waited for the plan theyve enrolled their whole territory and left my seat unfortunately read an article how the Peninsula Energy entered into the kind of thing weve been talking about we wanted to do for a longer withhold this to be rectified thank you im sensitive we have talked about the local boiled so i want to go on record im interested in some of the finer points made by the speaker and to be able to determine you know if this is outside of the scope one the relationships what are the relationships and the impacts and artists the impacts but we also kind of anticipated and real substantial investment in the boiled. Well get more information. I thought we were getting the chart next week rather in april. Yeah. I thought that was in march in march or april i dont think that was april. Im hoping that staff will drill down im kind of lost now on this piece so im glad you shed light on it. As a clarification the capital plans and the 10 year Financial Plans are not a single thing for the whole puc am i right 3 of them one for each enterprise. One for water and power and one for hetch hetchy one of the concerns not lumped into everything nothing it 3 for the enterprises so will be a Fourth Enterprise and a questions are we in compliance with the charter without having that for cca . I understand that cca is a separate entrepreneurs and a requirement was goat only spoke about the enterprises that were under your jurisdictions youve created a new line of business and the enterprise technically no, not required to adopt those every year but i also hear what youre saying you, you have other enterprises and can prunlt do the requirements but not on the same schedule i think im understanding autopsy once we get this done the first time we should be able to get on the schedule thats correct. Were not there yet were getting there but not a 10 year capital and Financial Plan. Thank you so sorry next year we dont have this conversation. Thats correct. Well be back before then with how it is put together. With the growth plan will be the first step. Thats correct. Mr. Freed ifd and efd commissioner vietor you asked good questions and the staff talked about this is technically not in the charter but getting into an annual basis of hope sf but the staff i sdooug disagree are with on the boiled one thing youll have a keep in mind if you take the report we look at the items build on puck property or the puc has control if it is decided when it gets built to the cleanpowersf and you have two different projects have to figure out how does that construction who does it go to how is it divided occupy one project that is cheap and another a medium did the cleanpowersf or the enterprise get the cheap one youll have omega theyre separate and should be treated as separate this is when you look at the new construction how are you handling the development hvnl the new project some will put money into a pool and that pool you know if one side puts in 60 and another side 40 so this is implicit youll not make the tough decision who gets the cheaper and who gets the more expensive we clearly will have to say hetch hetchy as part of water delivery im assuming that will be power enterprise and not cleanpowersf because of the nature of the imp is set up but participation close attention to the two projects their independent but have to a bearing to be fair to both sides i speak as hetch hetchy power customer and advocate for cca i can be debating with myself who gets the cheaper one i want cheaper rates anothers home but for public works customers a serious discussion need to be had well and youll have all four of of them together at one time thank you. The result of that decision will be reflected in the capital plan they reflects who will pay not different than the facilities that serve power and water those costs all are allocated two the entries this is the kind of problem we deal with in those cases any other Public Comment. I have a question. Sure. Please. Eric. Im looking at the water enterprise projections as well as the wastewater projects yes. So i see in 2019 when our debt goes up we result in a negative revenue. Yes. So how are we going to deal with that. Thats from the lettereser thats a good question. On items 13 and 14 can i have a motion . So moved. Second there is a motion that has been seconded. All in favor, say i. Opposed . That motion carries we suggest item 15 for last madam secretary call item 16. 16 approve the water supply so for the proposed van ness project. Commissioners any questions this is you straightforward we put them on the regular calendar because of state actions but currently the answer is you really dont care the water supply is there were saying the answer a yes for that to occur. There is actually some interesting language about you know if things are not according to plans so i think it is just one indicator of how you know our car situations is limiting the plants important to the liemths and if we dont get there this is our business. Thank you any 09 questions or comments any Public Comment . Seeing none, may i have a motion there is a motion that has been seconded. All in favor, say i. Opposed . That motion carries item 17 please. Approve the amendment to the authorization for this duration by 11 months. Id like to move this item. There is a motion that has been seconded any other comments any Public Comment. All in favor, say i. Opposed . That motion carries. Item 18 approve the number 5 to amend and authors increasing agreement for 200 and 50 thousand subject to the board of supervisors of time extension of one year. Okay commissioners. Id like to move the item. Second there is a motion that has been seconded any other questions or comments any Public Comment seeing none. All in favor, say i. Opposed . That motion carries item 18. Item 19 adopt a migrate negative declaration migration and finding required by ceqa for the southeast Water Pollution plant for the living project approve the project and authorize the general manager to precede implementations for the construction phase good afternoon, commissioners commissioner president moran i did want to bring to your attention this item two issues with this so youre aware one were asking you to approve the project and authors the general manager to precede with project implementation and construction were actually planning to Start Construction probably end of summer beginning of fall t timeframe so well be coming back and having sections for handling the c m g c there the construction we are asking to modified the contract to there by 11 million plus in order to facilitate the coordination and sufficientycy with the other projects so funding for this additional lovingly Million Dollars plus will come from the other projects but are within the ssip with the exception of scope c to replace the bar screens. Thank you and as far the kroom contractor has qualified be skaushths to bid. Have they made determination about the selfwork theyre not planning over selfperforming but we anticipate that the contractor for bio solids will not be saying the same thing. So commissioners any questions or comments . Any Public Comment . May i have a motion ill there is a motion that has been seconded. All in favor, say i. Opposed . That motion carries and going back back to item 17. Adopt the provisions to the reserve policy of the sfpuc. Sir. Commissioner president moran and commissioners be eric cfo may i the slides please in our package item 15 relates to updating the fund reserve policy for the commission and as part of the effort were going throw in the off year to update all of the Commission Financial policies heres the calendar today, were talking about the Fund Reserve Balance policy and march 28 talking about a couple of new policies capital and recovery and in april and may talking about the update of policies for Debt Management and repair thats the calendar for the next few months. So it is a Fund Balance Reserve it discussed you know how much in funds that are unappointed and unallocated should be kept on hand by each enterprise for unbutted chances for example, in the last 4 years dealing with changes in water Sales Revenues because of the drought you could discharges that impact your revenue and unanticipated expenses in reserves to mitigate the charges as pointed out reserves are used to balance the revenues and expenses rather than having volatile expenses and have the Credit Rating and make sure that we have low interest in capital and produces for longer planning and spending we have an existing balboa reserve policy established in 2010 establishes the minimal balances with 3 matrixes it is complex we have 3 different metrics percentage of annual revenue, 15 percent annual and 15 expenses for then we mix in the concept of Debt Recovery because of way it is structured so we worked with our Financial Advisor you see the reports attached to the united item to look at the financial policies are opportunities for the financial policies and a compare them to Industry Standards and exception and other agencies and they produced a fair comprehensive report and review the recommendations with respect to the fund reserve policy what staff is recommending to the commission to simplify the policy and standard device the metrics so the first one to have a Debt Recovery and take the Debt Recovery out of the discussion second recommendation one metric for the percentage of operating expenditures to 24 days operating expenditures will be you know 90 days of operating expenditures so you want to have fund to handle the 90 days operating expenditures thats the way of thinking the utilities of the metrics so were proposing a minimum level and maximum level the minimum level is Industry Standard 90 days of operating expenditures on hand it is widely used and a moment that is identified as 68 percent of 200 and 50 dies operating expenditures there are you know seattle