Transcripts For SFGTV Public Utilities Commission 31417 20170319

[gavel] good afternoon. I would like to call the march 14 meeting of the Public Utilities commission to water. Mdm. Sec. These call roll call caen here kwon here vietor and courtney are expected to arrive shortly and we have a quorum thank you. Commissioners we have the minutes from the february 28 meeting any additions or corrections would like to is there a motion . Moved and seconded. Any Public Comment . Seeing none, all those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Next item general Public Comment. I have one. If i think most of the people here are staffed and if theres any reader interested in the [inaudible] plan and Water Quality control plan this would be the time to talk. Because theres nothing on counter specifically relating to that. Mr. Martin. Thank you done much good im here im concerned that that esf views he is going to summit comments through march 17 to the state water board opposing debate dr. Plan draft. At the last meeting i pointed out the Scientific Evidence presented in the plan contradicted mr. Ritchie said. That was the board point on slide eight of his presentation that starts with unimpaired flows. Last meeting, mr. Ritchie criticize the california fish and Wildlife Service and decision to [inaudible] limits as unhelpful. Mr. Ritchie ignored the signs upon which the Commission Based their decision. I was present at the Commission Hearing in 2011 with the issue of iraq limits was discussed. Proponents showed the same photos to mr. Ritchie showed. Photos which focus on striped bass in contradiction to the studies provided to me by mr. Ritchie for both 2006 and 2012. The photos the strong impression that striped bass are the problem. His own studies do not say that. But voters are not signs. Fisheries biologist resented. To the fish and Game Commission from their studies regarding striped bass predation on [inaudible]. Their conclusions were best summarized by doctors. Well and William Bennett of the Uc Davis Center for watershed sciences. Their conclusions, one, the delta infrastructure and. Ways the waters exported from the delta is the by far the primary reason for salmon smoke survival or lack there of. Two, predation by all predators is highest during periods of reverse flow and low flow. Three, removal of nonnative predators often have unintended and surprising consequences for the ecosystem in which they have adapted. Therefore, changing bag limits first like thats what little effect on salmon smoke survival. The commission then voted to leave the bag limits alone. Thats what really happened. In responses to the [inaudible] trust dated february 23, 2017, we meet at the sf puc we pride ourselves in relying on the best available science. In these two instances, that is clearly not true. In my review and with all due respect, this ritchies presentation was thoroughly biased. I supported by peerreviewed Scientific Evidence in actual Public Events that took place in 2011 and please, exercise due skepticism in using his materials regarding your official response to the state water boards a dr. Plan. Thank you and much. Thank you. Is there any other general Public Comment . Welcome. Yes david about making seeing none, and its been a while. Just a couple of points. I want to appreciate the commissions action at the last meeting to advance the new headworks at the southeast plants that we will hear more about ss id and appointed a project to the Larger Program but i did want to note that action he took last time including the network of [inaudible] and the rest of staff on that. Furthermore since i have not been by in a while, i just want to also express my appreciation to the employees of the puc. Generally, as i think ive said before at this commission, work every day to operate and maintain and support the plan and construct the vital infrastructure that we need for our waterpower and sewer systems. I certainly appreciated even though im not getting a full built anymore now getting a fractional builtin thats a big implement thanks for all the good work. Thats done that. I also want to note a couple of things relative to the general manager. I dont believe is general manager, Ed Harrington served about 4. 5 years and i think harlan is just about at that 4. 5 your market so things are just about to surpass ed. Im not sure [inaudible] we will have a competition at some point but the other sad news as im sure youre aware, very sorry for harlan sloss and his family and extend my condolences there. Was my general Public Comments. Page very much. Thank you david always a pleasure welcome back. Any other general Public Comment . Moving on then, commissioners, you have medications included in the packet. Any items on that you would like to discuss . Any comments or questions . Seeing none, any Public Comments . Thank you. Moving onto other comMission Business, commissioners . Its a quite group today. May we go back tohe was yes, you may. Commissioner caen under fivee, sewer inspection. I was wondering so few were cleaned and inspected this last year . It was one of our goals to keep that program moving. Nobody knows . People leaping to the floor. Ms. Howell spewed good afternoon commissioners. Im here for tommy moral good ill try and answer that question but i know this past year thereve been a lot of cleaning of catch basins and in preparation for the storms they have been inspection but more focused on the capital projects. Not so much on the rnr. Okay. Because i was one of our objectives that you keep that up an increase in which we have been doing they have had some personal we source issues so we have been trying to oh, there as well. To get him the resources that he needs to continue the inspection. I would like to point out your 1415 we did 203 and year 1516 we did 91. I mean, thats quite a bit less. Okay so i guess i will just ask tommy whites going on yes we will get back to you. I know that we received a lot of information from pg e because they did the cross boards and we got a lot of tape of our sewers so they did a lot of the inspection for us. When they did the cross borders where theyd board into our sewer pipes. So they did a lot of inspection footage as well. But we will get back to you on whats behind our inspection numbers but i just want to point out we did not include the inspection that was done by others like pg e. Okay. Thank you any other Mission Business . Okay moving on to the report of the general manager. Mr. Kelly welcome back thank you good afternoon commissioners. First i would like to thank everyone for supporting me. Most of you probably know my mom passed away and i just want to thank everyone for helping me through this could i really appreciate that. So with that, i want to give an update on clean power sf. Barbara hill. Good afternoon commission. Tar heel assistant general manager for power. Just two items to go over today our enrollment and rate plan. We are now serving about 80,000 customers. Our opt out percentage is 3 just a little over 3 . We received more upgrades to super grain. Thatll bring our total to 2156 customers who signed up for super grain and receiving super green service. Thats 2. 9 of our overall customers. We will be getting enrolling new customers who signed up and said let me in inmate. As we said at our last report we are focusing on customers who ask to be included and customers who are Net Energy Metering customers within district 5 and eight. That will add just over 1000 additional customers. This is just going to be part of our routine process where we dont want folks in the waiting room too long. Right . We want to bring him on board in routine methodical way. So we be doing that inmate. The notices the mailers that notify them, of this enrollment are going to begin be mailed next week. So heads up on that. With respect to rates, you will recall that were scheduled to bring you a rates proposal annually in april as we have been reporting pg e rate components increased in january. The solar choice premium for pg e customers decreased good on friday the clean power sf team in our finance folks teamed up to brief the rate fairness board of our annual clean power rate consideration. We discussed three options at the rate fairness board. First would be no change in rates. Just go rate action at this commission. The second option would be change the rates to achieve bill parity with pg e. So that the average customers bill would on average be the same as it would have been where they stayed, were they to have stated pg e customer. Default customer. Then the third option is to reset the rates to achieve the same discount that the commission had adopted before. Thats that 0. 25 discount off of the pg e generation rate. The Commission Secretary has begun the publication process that is required for noticing discussion of rate changes and we will be returning to you in april with a recommended action on clean power sf rates. With that happy to take any questions you may have. Thank you. Commissioners . Thank you very much. Mr. Kelly im sorry. Any Public Comment . Mr. Kelly next item is corley audit and Performance Review. Good afternoon president commissioners by nancy nancy director of insurance and director andrew im here to present the quarterly audit and Performance Review port ending 2007 and the courtly report highlights overall recycle the s of qc i enter on external parties and details audit and assessment activities. The information is key motive that provided by a fiscal year to date along with the sixmonth calendar of all projects. As highlighted in the executive summary or agency finished the quarter with 40 projects in various stages of progress. Of this number 15 were completed and 13 work in progress. The geordie of the audits and assessments at this time are merely finance related and related to the fiscal year ending 2016 fiscal year and cycled that you motive numbers again will increase as we move through the current fiscal year. The executive summary we note we finished the Second Quarter im sorry excuse me 11 audits completed in the Second Quarter are listed here by report issuance date. Present were reported with the audited Financial Statements for last fiscal year issued in october and subsequent followed by the comments of annual Financial Report and popular and no Financial Reports in november. Completed projects to include California Independent systems operator scheduling coordinators self audit. A Community Benefits phase 2 commitment in contracts. Then followed again by apaches preaudit for specific gas and electric at this audit was performed by the City Services auditor and they found the pc properly administered guidelines and transactions for the franchise that pg e probably paired franchise surcharge fees of 11. 9 to the city for the twoyear period ending december 2012 based on 1. 7 billion in reported gross receipts. Qc also requested the city auditor to perform eight internal controls audit on internal cache receipts audit that management has implemented. They also completed another franchisee audit of the Energy Center of San Francisco llc. They found that energy probably paid 327,000 in Franchise Fees to the city unreported 31. 7 million in gross receipts and as accusing properly complied with administering and monitoring the franchise agreement. Lastly, sales and use tax audit was conducted in completed in december by the california state board of equalization with no findings. Looking ahead to the Current Quarter three and beyond, we expect completion of the following audits. Rebate and incentive audit of go solar San Francisco. Citywide Construction Management safety audit. The wholesale revenue requirement payment of changes the balance and account for prior fiscal year ending 2016. The similar audit for federal grants. Notable items currently in progress include the 2017 western Electricity Coordinating Council compliance monitoring audit. As was the Community Benefits for phase 1 expansion of the Southeast Community investment framework focusing on our culture and stakeholder engagement. As part of our ongoing reporting of open your prioryear daughter recommendations on pleased to report continued progress in this area. Key to the number of closed audit recommendations meantime and 90. 5 . The ratio represents the number recommendations for all audits the remained open with outstanding audit recommendations in the current fiscal year. With that that concludes my report. Thank you. Thank you good commissioners, any questions or comments . Okay. Thank you very much. Any Public Comment . Seeing none, mr. Kelly okay. The next update is the adjusting water and power and rise Capital Improvement Program Quarterly report. Good afternoon pres. And commissioners. Dan wade, director of water and Structural Capital programs and am pleased to report the results of the quarter to of the hetch hetchy capital implement projects. I want to highlight a few things that kept us busy this last quarter. Number one, the mountain tunnel bypass project this is the large project thats a placeholder for a project to be implemented for this critical asset. We did complete the alternatives analysis report and we establish the methodology of Condition Assessment and probability of failure that was submitted to our Technical Advisory Panel who endorsed that methodology in preparation for inspection and so you know that we started some tunnel added an access work last fall and that work has continued and was the critical component to the work had been completed and ill show you some pictures of that in a moment. One contractor was working on annex 56 and eight, nine to expand the access to weaken the equipment into the tunnel on a short basis on a [inaudible] basis in order to make emergency repairs if necessary. So in this last quarter, fabrication and testing of new doors were completed. Then, the inspection and repairs of the tunnel there was a lot of prep work that went into this accommodated at the end of the year and the we started the implementation of that work in january we since completed that also your couple of photos in a moment. Then we have a number of other projects, the largest of which is in construction is the facilities upgrade and we continued excavation of Foundation Work there in the moccasin yard which will improve a number the facilities. So the mountain tunnel inspection and repairs started right after the new year in january this is a photo of the pope had been removed. The inspection since this time the bulkhead has been put back an inspection is now complete. Its been a tremendous success before i go any further i just wanted knowledge the efforts of the team. They were extremely large number of people involved in the planning and execution of this work but i want to point out one person in particular thats joanna want the project manager who courted native nature menace number of details with operation folks as well as the construction teams all the engineering teams that were involved in billy making this logic come together and we have a lot of work to do but john has been instrumental in getting us launched to where we are now in completion of this phase 1 work. Once we did remove this bulkhead, we were able to makewe went to inspect the tunnel, number one and really gets a thorough visual inspection. We also were able to make repairs to over 7600 feet of lining and we added some components after the initial contract was initiated as we found some additional places where some critical areas that needed to be fixed. But overall, we found that the tunnel liner appears to be in very Good Condition. In fact, in better condition than many people expected and so were going to finish the work of documenting the inspection, documenting the repairs. The be a lot of scrutiny of that work and will bring that altogether in a few months. Then, that will lead us towards the process of making decisions in the months following. Question on that absolutely. Does that mean or you have not decided yet the liners is in good enough shape not to have to replace . So i say its very likely were not going to be building a new bypass tunnel but the particular method of repairing the existing tunnel has not been determined and we havent made a final decision on whether a new bypass tunnel would be constructed or not but i did check in with Steve Ritchie and he is comfortable saying now that its unlikely that we would build a bypass tunnel. But it still a significant project. One of the things that gave additional confidence regarding the title lining we had to actually physical course and test some and outlining and so this is a photo of corning taken place in the wall of the concrete liner. What we found is that that country is actually an extremely Good Condition where was placed properly that we did discover some construction defects that are revealing themselves over time as the tunnel continues to flow. Theres defects show themselves as we point in the liner. We repaired many of those. Theres many more to repair but the good news is this concrete appears to be in very good shape. We dont have all the tasks that are back yet. This a lot of work to do but the observations to date look promising. Then, you know we did as well as repair the liner inside the tunnel, we improved as i mentioned, the added an access to the tunnel including roads as well as the Access Points themselves and this photo shows the excavation that was made, the larger it was made into one of the points in the tunnel and the contractor is sprained shotcreek on those walls in preparation for this new bulkhead that was installed and this bulkhead is 8 x 8. It is now closed and the tunnel is back in service on time at the end of february. So the team did a great job getting us to this point. As i said, we have some decisions to make and so we have these three projects. The added access improvements for the towns action and repairs, and the bypass project and they are all pursuing in parallel and the continuing on all three but at some point, likely late summer or early fall, will make a decision on the alternative to pursue. Just like to briefly update you on a few other projects. The same looking pipeline via bill tatian projects have been delayed somewhat because billy getting a lot of the work complete and we have completed some of the inspections recently at this project is essentially has the goal of life extension of these critical pipelines across the valley. So we have some shortterm expectations to do some notably minor projects but also to do some more Major Projects to get access to some portions of the pipeline. So we are looking at how to do that well and we will be reporting back to you on that as time goes on. We do ran to replace certain portions of these pipelines as needed over time and of course, there are some funding in the existing 10 the year capital plan we continue to evaluate as we go forward. [inaudible] another critical facility. This of you looking down slow. Theres four pin stocks there. These date back to 1924. Old riveted pipe. Its been recognized for some time that the state to be up graded and replaced it at least certain portions due to limited funding are focusing our efforts on in stock number one that were focused on areas of corrosion. Would replace him pipe repair some large concrete anchors that are badly cracked due to aggregate reaction in the concrete. We are going to be cold the pipeline. Within a the ability some valves that this will be going out to bid in april. We consider this an interim measure to extend the life of this critical asset. We also other pin stocks that are on very steep slopes and not surprisingly sometimes slopes move back to back in 2007 at the coke would then stop to a significant slope movement observed and so theres been a plan thats been developed over time to look at ways to rehabilitate that movement to arrest that movement, but in the interim, we are actually installing instrumentation and namely so the monuments and other monuments to monitor this. Over time. We are also doing some repairs to damaged saddles and support there were damaged as the movement took place. This is advertised for bid and we expect bids to come in in march. As time goes on, and as additional contention assessments are made, we discovered additional things that need to be done with some of these old facilities. In particular motor couple of bridges that need either significant repair a placement that a judge he added bridge on the damn bridge. We have issues with concrete ceiling on the pier putting is rod. [inaudible] cracks and so forth. So theyre not insignificant problems and theyre going to need to be included on our 10 year cip going for. One additional project was somewhat unique thats new, due to regulatory mandate is a security full height security fence around moccasin reservoir. This is to prevent access by humans. With a couple of swimmers unsolicited in the reservoir that which is very dangerous. Its not good for Water Quality and so were looking at a 7 foot high fence and adobe some signs and lighting and gates considered as well. So with these new projects that are coming to fruition, that we need to incorporate in the 10 year capital plan, we we look at how to reprioritize some things and the decision amount and tunnel we anticipate we would want to read baseline this set of projects either late summer or sometime this fall. Without ill be happy to take any questions. I have some questions on your performance summary. Yes. Could you go over the red dot squeak yes absolutely. San joaquin pipeline of new abilities and there were some additional scope items that were needed to that resulted in increasing the budget for the project. The primary thing to see there is a 19. 9 month schedule delay which is due to meet need and complete the whistle projects and i wanted to take those facilities out of service for inspections that were needed to continue these other projects. So theres a delay to that work. At the aqueduct that i mailed the rightofway issue. We cannot complete the project until we get to await corrections with the federal government on the facility there. So there are feeling that request and expect to be able to go back to that project next year. With respect to the other powerhouse projects, we have had some scope additions that were needed and so we have some additional budget needed for both home and powerhouse projects. When of those substations we have a delay because there were some questions regarding the scope of the project and so we have been able to attend we will be replace on in the project this fall. Thank you very pleased about the funds. Okay. Very good. He was something other than wanting for a long time. Beautiful funds. He was not awol. [laughing] thank you. Any of the comment . Mr. Kelly the next two items is wastewater enterprise cip Quarterly Report and sewer system Improvement Program update. Good afternoon commissioners. President , karen cubic director of the wastewater capital program. Ive two brief reports today the first is to highlight the red dots in the wastewater capital program. Then ill follow up with the regular Quarterly Report. Starting with a red dots, at southeast the gas handling project was delayed six months and i was due to be packaging to get the pla requirements into that big package northpoint outfall needed because offers bidding was had some unresponsive bids and then we be bid and good skin and 13 higher than engineers estimates that the first were nice. The second bids were to bring 5 million higher. So thats why that has a red dot, due to cost good. [inaudible] storm troopers we have added a year to secure the rightofway to private entity were working with. The central subway silver replacement is seven months delayed and that is due to the mta project delays we are part of the overall mta project. Lastly, on the [inaudible] Asphalt Plants delayed six months because originally we were going to relocate the sewer ops of folks to 5050 evidence. We need him to relocate so the folks at Asphalt Plant can move to where they were. We are now working at a new project on griffith yard so we can relocate the sewer crew. With that, to bring up the slides, i will go into the quarterly update. We have our 75 projects going. Presenting phase 1 to 2. 9 billion thats been authorized as part of the baseline. You will see on this design portion of the pipe is the biggest. The big projects are in design in this phase. We do have 11 projects in construction and ill be highlighting some of those for you as i get into the presentation. From a higher level this is the time im looking down at the sewer in system Improvement Program to the red line shows us where we are current time. The blue is designed. Yellow is the preconstruction phase and thats for projects alternative delivery by design build were cmg see. We bring the contractor on earlier they work with the design team and his activities regarding determines and other. Green represents construction and import walk through some of the projects that are in the construction phase now. These are some projects going on at the Treatment Plants. The first is the southeast primary and secondary clarifier upgrades and we tend to name everything upgrades. This is installation of new mechanisms, lining the [inaudible] 45 . The second in the middle is infamous to our system 521, 522 and with concrete work underway. We demolition and excavation, shoring, at 42 phase there. The last one on the right is the west side pump station over by the zoo. This is enough to Construction Contracts and contract one is 96 complete and this is what there is to the manifold installation of up night skate bout going on there. Contract two, will be completed by november 2020 and thats upsizing the pumps changes to the wet well or screen improvements, redundancy, improvement for reliability. If we go out to Green Infrastructure, these are three of the projects that are under construction currently. The first one on the left is mission valencia. We have rain gardens, pauses and traffic signals. All that has been completed. He completed the painting last weekend the substantial completion was yesterday. So final completion will be next month and a believe that there will be a ribboncutting which will be very nice. The hallways is in the middle and their staff is all very excited because the installed permeable concrete last month so it is still the hard stuff the grace of being put in the printing will begin in the summer but that is something that everyone has been talking about is that cool permeable concrete. Sunset is another one. We just did finish the pilot blocks on sunset between the sunday and [inaudible] we finished phase 1 which is an additional block between [inaudible] and that were going to keep working our way north. From there. We also do of chinatown and [inaudible] in construction. Now from our two largest marquee projects had works and bio fowlkes. Happy to report that Construction Management team has got the same contract out in respect to be back at the commission on the 28th toward work that. That is for had works. We will be starting construction late summer and biosolids, theyre not far behind were working to be awarding their cmg seco contract in april. The two bids so will be reviewing those and conducting the procurement process. As you know we hadnt be advertised to be able to get others to bid. We met with vendors and ensure we would get more participation to get good pricing. Next, other achievements. While staff on projects are working very hard twit schedules and deliver projects, we still have a lot of programmatic activities that are korean, two. Were implementing the Architectural Design guidelines that is in all the southeast plan projects that we have consistency, look and feel the were having everything fit into the neighborhood. Campus type feel. During wet weather, weve been sampling the beatty and ocean omega what weather occurrence. We do a Water Quality sampling so that we can better calibrate our model Water Quality model. We just completed the seasons modeling. Its quite a deal because we have to oppose out there during the wet weather even cured and grabbing samples. We awarded the dcf contact distributed control system contract that will upgrade all the hardware and Software Control systems throughout Treatment Plants a major pump station. That is a wonderful thing. We had a groundbreaking with mta for van ness Improvement Project that will bring infrastructure right to the outside of city hall in walking distance from our headquarters as well as replacing critical aging sewers on van ness. Another one i just want to highlight is the completed value engineering site for website and station. That is the contract to project i was mentioning. The net resulted in some time savings and design modifications that will reduce the project costs by about 125,000. This project also did secure its phase 2 civic design review. While projects go to the our commission and go through that rigor. Now i want to highlight workforce a little bit. We are judiciously working with the workforce and economic Programs Group led by [inaudible] and this is so that we provide your Small Business and Job Opportunities to San Francisco residence good especially, those are from the southeast sector where the majority of the phase 1 projects will be occurring. Right now, we right not 19 active prime contracts and of those contracts San Francisco residence at work 36 of the hours and that exceeds the requirements of 30 . That 36 of the San Francisco residence article combined 5. 5 million in wages and benefits and district can review and district 3 chinatown received most of the contract value. We are doing even better in regards to entrylevel opportunities that provide a pathway to careers the building and construction trades this is commonly known as apprenticeships. We work with contractors countries, unions, to me service providers, to place apprentices on projects contributed to the ssi peak good so far 72 of the hours on the premise hours have it work right beef and residence. As compared to the 50 requirement and that is 50 apprentices working over 26,000 and apprentices are primarily given in district 1042 of those are from district 10. I know you are happy to see the jobs contacting report that were included electronically. This is a snapshot of the report could the students working basically tracked tremendous spectrum of data for us. A lot of metrics. What we want to do was have this biannual newsletter back in highlight a few of the great things that are occurring specific to sf ip. If something there will bring along with us when we go to public meetings. Something we will able to share with contractors. It shows our Small Business and local workers and it gives information about how they can actively participate. And hold us accountable for the contribution we are making. This is just the inside of it. Of the report. Then back to stakeholder outreach. To date, we are continuing our community meetings. You can see, we a lot of metrics here. We are causally doing neighborhood catches so people will be informed to know what is coming. Were doing meetings in the bayview and on the west side working with residences, businesses, stakeholders have all sorts serving of the project schedules and they know when construction will be starting. We have break from rain the sunday streets will be back. So staff will be out there. We do have a workshop an open house type thing, planned for march 18 at southeast actually the bayview opera house. Which is coming up. Theyll been open out for different project managers are talked about the projects that we try to have it so people want to come since as of saturday. Then looking ahead at times when we will be back in a couple things just checked off which is marvelous to see on this list. Its nice to check things off. So today of course is the Quarterly Report. Following myself and the regular calendar we will give you a presentation on the central bayside system proven project could panel sizing. Ill be coming forward on the 28th to discuss Flood Resiliency and then contract design modification also, that date, followed by Green Infrastructure citywide strategy the end of april and then the Collection System plan using urban watershed Assessment Approach will be the first meeting in july. That concludes my report. It is any questions . Thank you commissioners . Could you give us a hint about the modification to the biosolids [inaudible] yes. Can i do that . Yes. We have been working with kathy howe and with harlan and to complete the designs and provide Construction Engineering services during construction complete all the public affairs, we are looking about 73. 5 million modification that will bring us up to 153. 5 million. So that was always the plan that we would be doing some type of one application to complete the work. The title refers advertise the contract were not certain which nobody wouldve delivered the wood of the design build . With bc mdc would we design bid build but Lessons Learned from talking to other agencies that have implement a very similar projects we think this is going to deliver the best project, have the project phases and technology right time so that we have our energy, our steam are biosolids system all being built concurrently under one contract. Also i would add, weve had some challenges and one was central shop and so what we decided to do instead of waiting for design build so that move forward design build we decided to just continue to design. So they we would not lose any time try to minimize the loss of time. So now we feel by having a thorough design we have a better control what the outcome of the final design would be. Whereas, if you do some hybrid you would not really accomplish that in a design build. So we really try to make this project goes fast as possible that in the constraints we have. Did you mention the two bidders for the project we i dont think i can say that yet. Foreshadowing of great news bs two bidders. You only have one but now we have two. We thought would have to the first time but one dropped out. Now those are back in. Kassie submitted a bid. Very good. Okay does that cover both ivan im sorry commissioner courtney i think its appropriate to acknowledge all the staff is doing. I see massoud is zero and is tommy here . Other work thats being done, the local higher ordinance that was a landmark legislation picking at a time when unemployment was really really high. So now when were able to come up with these kinds of numbers especially for the local premises, which thats really the target group that were looking to get onto the Career Pathway is really challenging you know what im talking about because the unemployment is now below 3 . So while some agencies will throw these numbers that you try to dazzle you with data i think we know the inside baseball its like far more challenging this year in the coming years under this Improvement Program that had been five years ago. So i plot all the staff thats working on this and seen it up close and personal myself. Im looking forward to continuing to get those reports. We really appreciate that. Its been massoud and all the members have this team because theyve done so many different outreach events and made such an effort and he and the staff who work personally with our project managers when they need to be able to boost numbers in fact, highlighted on the cover of the jobs report is an individual who brought in to work on the 521522 project so thank you and we will ship it back at the office. Thank you. That concludes this report. Im transitioning the slides for the next. Okay. I think that the end of the next one. You completed the [inaudible] spears i think shes preparing for aids. Is what shes talking about. Of the comments . I want to trust my continued support for the ss ip is broken. The individual projects and other components end of the critical nature of all of these efforts especially project delivery and completion as commissioner caen right past week about which i very much agree needs to happen and appreciate your aggressive support for an aggressive timetable theres what actually happens i gets filled and completed. In future reports it would be great if there was little more emphasis on the challenges and obstacles and opportunities for the commission or others to help mitigate those challenges and obstacles so that these ss ip projects ashley stay on schedule and that theres less schedule slippage but i think this is conference of report return enter folks again are doing good work to make these important things happen. Thanks. Thank you. Of course the commission will recall i certain just for 3. 5 years on the cac for 10 years on the wastewater subcommittee some very, with all the stock. Been through it many times. Thanks. Well, thank you thank you for your continued interest. Any other Public Comment . That concludes my report that concludes the report and we move on to item 8. Thank you karentoday were going to be giving you a presentation regarding the central bayside Improvement Project. Opposed connell. This is our sizing recommendation. We been discussing this with you since the validation way back in 2012 and also when we did the program baselining so today im good be introducing dan donahue. He is our Program Management Technical Advisor so he is the keeper of schedules, and ishas been with us since the beginning of the program. I join basically the wastewater side of the capital arm and dan was one of the first employees through the Program Management advisory when they started with this. So, dan went on you, and i will help you get the slide started. The thank you, karen. Think you commissioners. Its a pleasure to be here this afternoon to give you everything on our efforts to optimize the sizing of the channel part of the central bayside project. As we move forward with the ss ip in accordance with the baseline that you approved last march, it will become g with a series of briefings related to the Collection System. Today we will talk what the channel town. At the end of march will talk about flood resilience. Then Green Infrastructure at the end of april and beginning of july the Collection System plan that brings all of these projects together and it is interesting to note that in the baseline for all three phases of ss ip the almost 2. 7 billion dollars worth of work for projects to move us towards meeting the lls goals and objectives that you sent in march as well. So today will prayer provide an update on the recordation for the 24 foot diameter tunnel. In overview in the project look at the objectives of the cbi sp that we wonder similar welterweight drivers. Not only will we need to do to comply with todays requirements but because of tunnel last long we also need to look to the future to make sure were being wise and were adaptable to future requirements. We want to touch on the vast array of alternatives we looked at and also review with you how we analyze green into the decision process. San francisco has an excellent Collection System. Transport boxes conceptualized in the late 70s were built by the end of the round 1997 actually been in operation for almost 20 years. During that time, the system functions about when it rains we capture 95 of the rain water and sewage in our system and send it to Treatment Facility for only 5 is discharge. Source system its objectives are to convey [inaudible] we are also trying to minimize combined sewer discharges and to manage storm water. So when we look at the project were central bayside, we are doing with the channel force main. This pipeline conveys 70 of the dry river flow to the southeast plan. 66 inches were screened about 2 miles long and its over 40 years old. Unfortunately, its a very vulnerable asset. It was damaged in the earthquake and its failed twice since then as well. His condition is unknown because we can take it offline to inspect it in this alternative way of conveying float to the southeast plan. It is also in a liquefaction zone and not on file so its extremely vulnerable to seismic activity. So as the central bayside plant was envisioned, the objective was to provide a high level of seismic protection. I will talk about more about obligatory issues, but we also want to make sure that you were able to achieve the current requirement of 10 discharges per year in the Central Basin could also provide Operational Flexibility in terms of how the operators can utilize the system during rain events and increase system storage. Recognize that if we build a tunnel it has an asset life of over 150 years. We also needed to look to the future to make sure we could be cognizant of the ramifications of Sea Level Rise, and any future reduction that we might see in the number of discharges that were allowed to provide into the receiving waters. Speaking of the reiko tori drivers, when we look at our Collection System is hydraulic models to assess them. Our present modeling indicates that we exceed the discharge criteria of 10. We presently discharge about 12 times a year and looking forward most likely at some point in the future the regulars will ask us to reduce below the time. The current criteria this week based on historical and industrial uses. The land use is now denser residential and commercial and Recreational Activities are increasing in this area and this unfortunately is iteration of impact is very long and as opposed to other parts of the city. We also have a permit on the bayside that was issued in 2013 is due to expire next year. As part of this permit, in march of next year we are required to submit a report on a long term control plan synthesis and assessment of performance of our combined sewer discharges. That will be going to the as i mentioned to the regional board in march. So we need to be forwardlooking in terms of how we move forward. The criteria that we work with today were established in the late 70s. When this creek was of maritime use. At that time, the same situation existed in Mission Creek in the channel area, we had maritime uses that were anticipated to continue into the future. So when negotiations with the regional board took place they initially wanted one discharge in the bayside. The city proposed eight discharges with an option to say, we will go with the one discharge in the southeast. We are at that time there were shellfish beds and 10 in the rest of the central bayside and that was what was codified in the regional Water Quality control board order. Thats a 10 we are doing with today. So back in the 70s, that was fine. We had commercial uses and we were protecting the use of the receiving waters with the town. However, today we see that mission and this was creek look very different than they did in the 70s. What we are seeing now more and more is an abundance of recreation one uses in other words, water contact Recreational Activities. Future reduction is put forth it would be to protect these types of uses that we are seeing today that do not exist before and most likely that protection would be in the zeroto range in terms of discharges per year. So in context, we can say whatever tunnel we built last 150 years but are our existing discharge criteria most likely will not. So as we were developing plan one of the things we realized we could benefit from receiving water model. So we have developed that. Karen mention the word whether sampling the weve done to get information to calibrate and verify that model. The model shows us some really interesting results. That is good for our system presented challenges. Only look here the results of this is be a storm that might occur 45 times during a typical web you can adjust an average rainfall events. During which we have discharges cured on the oceanside, you see the discharge is dissipated within 68 hours. The same thing on the north shore in the very southeast. However we see in mission and is this creek takes 12 days for the discharge to dissipate in the reason for that is to [inaudible] overreliance on Title Exchange to flesh out anything that discharges into them. So thats the important part, is those basins hold that water when the wreck use is back in action after a storm. We look at a whole series of alternatives and as we work through it became clear that some type of pipeline because of construction activities those can be a tunnel would be the recommended plan for the channel area. As we look through that, that resulted in looking at tunnels range from 12 feet in diameter of 230 foot in diameter. As you can see her, once we hit 17 feet, all those tunnels get us to a discharges a year which is great for today. However, if we want to look at providing further reduction in the future, to have that flexibility, and we look at the target that is most likely in the zeroto range, what we see is we need to get to the 24 foot tunnel door to accomplish that. So when we look at that, that is where we saw our ability to both provide for our needs today but also in the future, add on what we call treatment which is a means of getting eight down to the two that we would have that flexibility going forward. As we were working to this with management eric sandler or cfo asked us some questions. He said, what if the only built a 17 foot tunnel and saved about 120 million and weighted for that reiko tori requirement to come into play. Could we balance something that weight we so we look at a series of alternatives to address that. One of them was could we actually pipe that flow out of mission and is less creek. Unfortunately, thats about 18 foot diameter pipes and several hundred mg deal pump stations at a cost of over 2 billion. So that was not cost effective. We also looked at the crosstown tunnel to take flows over to the southwest out fault and discharge it 4. 5 miles offshore. That increase frostbite 900 million. It does get us to the zeroone discharge we would want but it creates implementation challenges and purgatory challenges in moving that flow out near the century. So that was deemed to be not feasible as well. The last alternative was one where if we were providing 300,000,000 gallons of high weight treatment with that 74 tunnel wouldve we provided more like 350, 400, 500,000,000 gallons of treatment. Could we get down to the two weeks it turned out that we are only go to get to about four or five by increasing all the way to 400,000,000 gallons. So we did not, as well we could not beat the performance. Say final analysis, we looked at taking that 17 foot tunnel and converting the delta of the 120 million in savings and converting that into Green Infrastructure and seeing what would wehow could we get the comparison to the 24 foot tunnel with that. What we see here is that with a 17 foot tunnel, we get to the age which we show before and when we add in about 200 acres of Green Infrastructure we stay at the eight counts could we get some more volume reduction we dont reduce the counts. And the 24 foot tunnel as i show before also gets us to the eight. Now when we look at that by adding the highway treatment in the future, do we see improvements here and you can see with the 17 foot tunnel, we only get to six additional change from that with the tunnel and greening could we get to the to with a 24 foot tunnel. So by going with 17 entering, were not meeting the future reiko tori performance. One other aspect that were asked to look at is what if we didnt build a tunnel but we just implemented clean on the bayside queens where we look at here was public parcels and streetscapes projects on the bayside and when we looked at the maximum number of parcels there was about 700 acres were possible on the bayside. As shown here, that only god us to the discharge of 10. When we look at in terms of cost, with the green we would go from the 12 discharges to date to the time. A slight decrease in volume at a cost of about 640 million in todays dollars. The 24 foot tunnel would get us to the eight. Further reduce this esd volume and have a cost of 699 and it would give us the opportunity in the future if the regulators required us to go lower, two at highway treatment at a cost of about 660 million and provided that future the department that may be upon us. So in summary, the tunnel is when to operate for a long time. It needs to address the vulnerabilities of the channel for spring which the tunnel adequately does good the 24 foot tunnel to exhaustive analyses is been identified as the optimal size to meet todays needs and to be flexible to prepare for future regulatory requirements associate with cst reduction. The 24 foot tunnel also provides additional Operational Flexibility and Sea Level Rise protection to provides an additional 40,000,000 gallons storage for the bayside which is about a 30 increase over the existing storage capacity. At present the cbs ip team is proceeding with the 35 design based on the 24 foot diameter tunnel that is expected to be completed in the fall of this year at which point we would come back to you for subsequent presentation. As i mentioned at the start, this is the first of a series of briefings on Collection System plan almonds. We will back of the end of this month, april and july. Thank you very much. Commissioner rath so other question but the Green Infrastructure because one time we talked about this before so i appreciate going to read it again. When i heard this time that we had not discussed was the analysis of the Green Infrastructure was just public parcel and rightofway. I know weve been talking about some storm water fees and private properties and we are looking at that over but further out. As far as weight structure and whatnot. I just try to understand it was an analysis done command fact important have been included as well . When we get back to in april with a briefing you include all of that. Some of those were allocated to krantz activities but they are all part of the analysis, the opportunities on the private parcels as well okay. , great. Your results your conclusions doesnt change no. Okay. Speed thank you commissioners . Public comment . Cannot point out one thing . I just want make sure on thing that we understand central bayside up to 35 is in phase 1 of the 2. 9 billion so we need to come back and make a commitment for going to fund the rest of the project. So i just want to put that out there that this whole project is not included in the 2. 9 that we put in the baseline. Only that is on first portion just up to 35 of design . Yes. Thats where we are going to. We know we need to redo that force main because its essential link in the flows to the treatment plant. So thats why the decisions are going to become harder because its already on top of the 2. 9 anything that we add as part of phase 2 and thats why we didnt want to come to all of phase 2. We want to come strategically on when teams are ready and we field are absolutely necessary. The other thing we probably ringing for it is the flooding portion which is going to be on top of the tunnel and everything. So it becomes affordability issue, timing issue. So decisions are going to be out with a little more challenging looking for because its a price tag of people willing to pay. Thank you. Mr. Pocock davidi would happy to see on attempted general management no. This is a main reason i came down today. This is also a critical project within the ss ip. Every much support the 24 foot tunnel as staff explained that i think in their great detail job on this, the regional board currently counts the number of discharges but when this was presented to the wastewater subcommittee i asked not just about the number the volume and i think it really should look at not just a number but the volume in the volume of the cst event i think also affects how long it takes to flush and to recharge the base area. As much as theyre looking at the count reduction, the volume reduction is important as well. I think some of those slides talked about that. I have always believed that green is important that i believe very much with commissioner vietor. Green is not enough in this program was always great and green to get to clean. So this really this particular project i think really requires the 24 foot tunnel that kind of investment for all the benefits that were talked about. Which for me also includes flooding in the 17th and shotwell area in the Greater Mission are. With staff did not talk about today and i presume will be back within a future commodity alignment options and i think depending on where that goes it starts from and i forget what it is, jackson playgroundis that the playground at 17th and connecticutanyway, if it starts from about that area and head south probably with an event structure near cesar chavez, that may be able to fix a number of problems, not just the channel force main problem but the flooding from the mission, better relationship to the channel pump station the mariposa facility. Theres a lot that converges at that point and depending on how the alignment works in construction techniques and the timing and pacing blah blah blah theres a real potential benefits, multiple benefits of this project. So thats where i am. I appreciate theres only 35 assigned commitment in phase 1. So either changing the phase 1 scope or really including this is the highest priority project in phase 2 of the ss ip is important to make this happen as a followon to the Major Projects in phase 1, the new headworks and the biosolids facility replacement project. Thank you very much thank you. Just look at the room i think this room is about 24 feet high. Its a big tunnel. Any other Public Comment . Seeing none, onto the consent calendar. Mdm. Sec. Item number nine consent calendar. All matters listed hereunder constitute a consent calendar considered to be redeemed by the San Francisco Public Utilities commission will be acted upon by a single vote of the commission. The be no separate discussion with these items unless a matter of the commission or the public so requests in which event the matter will be removed from the calendar and considered as a separate item. Okay. I would like to remove item c. Any other request to move iraq item from the consent calendar . Or from the public . Seeing none, can have a motion on the consent calendar, minus item c so moved. Second. Any further discussion . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Item c i want to separate because it was a nice positive example of the power of competitive bidding. And we sometimes see it go the other way could this is one where we were able to bring in quite a few bidders and by not going to just the inhouse bidder, if you will, and put it out to bid weve save a lot of money. So i didnt want to let that go by unnoticed. With that, its my pleasure to move the item. Second. Any further discussion . Any Public Comment . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Thank you. Item 10 item 10 approve the water supply assessment for the proposed biosolids digester facilities project. Thank you mr. Richie this is actually a routine water supply assessment. Its unique in that this is not a development project. This is our project. So because of the size the project we required to prepare for the Planning Department a water supply assessment of which is not very much Potable Water use because as much water as possible is recycled through the plan. Again its a routine water supply assessment. Also interesting content is not allowed to use that amount of water. That is correct. Okay. Any questions were comments . Any Public Comment . David had in my last comment for the day. Yes, as steve indicated this a pretty routine and a hope we will use this additional need but just another step in making the biosolids facility happened. Very much looking forward to it. Can we schedule the Ground Breaking already 2022 or something . Anyway, thank you was nice to see while the septum. Thank you great to see you i like to move the item second. Any further discussion . Any further Public Comment . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Item 11 please item 11 authorized the general manager to execute a memorandum of understanding with the Solano County what her agency not to exceed 24 months mr. Richie this is a continuation of program weve been participating in for many years that have been courting for the salt county water agency for the granting of highefficiency washing machine grant funds. I recommend you approve it. Okay. Commissioners . Any comment . Any Public Comment . May i have a is there a motion . So moved. Second. All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Item 12 item 12 approve the plans and visitations and award contract number pw006 are in the amount of two milk 2. 49 that responsible bidder [inaudible] ms. Hale gotten barbara hale assistant general manager for power. If you were this conduct will be working with bay area light works to install pedestrian improve Street Lighting in the tenderloin area. The award would be for 2. 4 million that is below the engineers estimate and with that, summary id like to get your support. Thank you good thank you. Letters any questions . Any Public Comment . There have a is there a motion . So moved. Second. All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries good item 13 item 13 award as need power operation support agreements to Siemens Industry for bureau0018 [inaudible] for pr 0001 ap to perform professional Service Agreements each not to exceed the amount of 4 million not to exceed five years these two professional Service Contracts would allow us to get some additional technical [inaudible] for power operations both three hetch hetchy program and the clean power sf program. Scope of the work is quite specialized and we are pleased to have two bidders each awarded under this proposal 4 million and with that summary be happy to take any questions. Thank you. Thank you commissioners . What is this scope will work in a little more detail . Sure. The scope has reviewing power supply management supporting us on our risk management. Risk management work. Settlement and scheduling responsibilities to the independent system operator thats great liability responsibility in the state. Ways to improve our overall system operations and are electric billing processing improvements for example we are pursuing automated meter infrastructure for electric billing good we are pursuing my account Like Services our website. These are activities that require Additional Professional Services support them and for Community Choice Aggregation Program its more for our power procurement planning and staffing sort of commercial pays issues we talked about in our business plans. Where the employee representatives you communicate with respect tois the reason to do that . I mean, is this consulting or is it staffing . Its professional services consulting. Some from time to time, we can use and potentially will, use these contacts to augment staffing when we have a need that can be filled with at the pace we need to fill in. Or if we dont have the vacancies were temporary salaries, to allow us to fill a Resource Staffing need at the pace we need to. Our expectation though, is not use these contracts exclusively for that at all. And our expectation is to fill all vacancies as they are proved through the hr and their process. Are the services eventually you intend to bring inhouse, or are the services that are best obtained . So all the services listed we are performing inhouse. This is professional support to make sure we are implementing best practices in the industry. So the way i would maybe put it is that in the engineering side, kathy shut, she has millions of dollars of Design Support Services because we dont design everything. We have to make sure that we are staff is nimble and because we have budget issue so we can have so what we are doing here it is identifying what is a course path that we need and then we supplement it with consulting services. So the services that we would like to support our time limited in duration so that they come in, they help they come out because if its something we are doing and were going to do it for long period of time, thats when you like to bring them on staff, higher a person to perform that. So that is where the balance were looking at. Remember were also operating the performing all the services as a routine part of our business and meanwhile, the iso, cpc, California Energy commission they are changing the rules we need support to make sure we change our system apace with that. So you guys understand what of getting at because its not my industry and i dont see anybody here from local 21 so im not going to overstate the case. I think the general manager shed some light. I understand the difference between budgeting positions and hiring ftes and as needed and provisionals and get all that stuff and i feeli dont feel caught between a rock and a hard place necessarily moving this forward but im going to be cautious about it as we move forward just because im kind of looking for the meat on the bone that think everybody is with respect to the expansion of our power enterprise but on this matter i think harlan, you kind of made you should some light on a little better. Its onetime money and its there. Its not like we are using typing using this contract instead of hiring all bunch of people good i think i needed to just hear that. Thank you. Yes commissioner im in a build bit of a similar spot but from a different perspective and maybe because i dont have London Center and overall budget in my mind but i do know he made some pretty hard cuts in the past especially related to things like Energy Efficiency. I know commissioner and courtney is coming from a labour and staffing perspective i know from an environmental perspective i know some of those cuts were painful in that space so when i see in a milliondollar contract even though it spread out as needed and i understand the conversation it tugs at my heartstrings of it because i know we made those hard cuts to round things like Energy Efficiency that does ultimately put money back into the pocket and provided additional benefit to climate and jobs and create jobs. So that was some of my pause as well. In seeing this. I guess if i had a better understanding in the context of budget and the cuts that we do make an seeing this big knot in prioritizing it would make me feel more comfortable. Well, i would say in the water power hetch hetchy water and power, it was very difficult because there is need of country for a lot of work but we need to invest in getting customers and so it was a really tough balance and so what we did was that given the spirit and all that requirement we did what we could and i know margaret was very bothered by thebecause she would need more support of country we try to balance it in so to try to compensate for the areas we felt that having a contract that we can bring folks into help supplement areas where we get that we need some more assistance, this is a better way to go because we just do not have enough resources to fill the gap fulltime and just have someone on staff that could just do these things because we have so many challenges. So we felt this is probably the most efficient way to go about it. I think my concern is that the power enterprise is still not out of the woods. So you just can have. Thing just have them beyou have to rely on some consultants where there are experts in the field, they work in the industry they work for other customers or clients and then when you call the men are already up to speed. So that is what we are trying to rely on. Try to help us through this good i get it. We would prefer to have staffing,. Thing have the capabilities and working in the industry and to all the work but we just cant afford that as of right now. As we approach full rollout of cca that we can expectat least i would expect the Staffing Levels would start to stabilize and become known but were kind of in a point of inflection now were part of managing the risk of expansion we need to make sure the power supply that were buying is met by command thats out there. So i would hope that as we go for the end of that process, as we look at the future budget, that we can bring as much about inhouse as is appropriate. Any other comments . Any questions . Any Public Comments . Seeing none, can i have a motion so moved. Second. All those in favor say, aye. [chorus of ayes. ] opposed, say nay. Item 3 carries. We are about to go go into closed session. Mdm. Sec. Beatty items for closed session. Item 16 anticipated litigation as plaintiffs. Item 17 anticipated litigation of defendant. Id. 18 the store hetch hetchy versus [inaudible] of San Francisco. Item 19 and existing claim recommended partial final settlement with [inaudible] item 20 existing litigation pacific gas electric, 21 existing litigation pacific gas electric, 22, existing litigation pacific gas electric, 23, existing litigation pacific gas electric, 24, existing litigation pacific gas and electric, and we will not hear item 25 today. Okay. Think that any Public Comment . On items to be heard in closed session . Seeing none, can have a motion whether to assert attorneyclient privilege moved to assert second. Moved and seconded any Public Comment . . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. Item 15he was we are back in open session. Item 19 was no action taken. Can i have a motion on whether to disclose discussions during closed session . Motion not to disclose second. Any discussion . Any Public Comment . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. We have one other item for open session item 28 item 20 adopt a resolution authorizing the general manager requesting the mayor and board of supervisors to approve a supplemental appropriation name out of 1 million for the wastewater enterprise. So moved mr. Chairman second. Any discussion . Any Public Comment . All those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Any other new business . Seeing none, we are adjourned. [gavel] [adjournment]