Transcripts For SFGTV Public Utlities Commission 9815 20150925

Today. Thank you. Third item is the approval of the minutes of august 11, 2015, are there any corrects or additions to the minutes . Roll call second. Any Public Comment on the minutes of august 11th . Seeing none, ill call for the vote all in favor, say i. I. Opposed the motion carries item 4. Which is general Public Comment from the public and i have mr. Decostco first to speak. Id like to talk about a number of issues in general during the general Public Comment im very interested in really what is going to happen to mountain tunnel especially in light of el nino and how that is going to an impact so i really dont know any experts that know too much about el 99 having said that, we need to have some deliberations meaningful deliberations on mountain tunnel i read somewhere that now youre ready to expand over 200 million 212 million i read it somewhere so ill start with the marginal amount and then you know any way you look at it it is the money that has to be accounted for the full transparency before the constituents of San Francisco the second issue i have is about the covington tunnel we have to revisit it that so that we get a meaningful update im glad you know they have a project manager or maybe hes a higher title in wealthy i call him wade but im glad we have Small Business like him on calaveres im very interested to know whos our comboeft there how many studies linked to ohio dramatical have you done over in calaveres i know. A ill talk about the arching loft and found skeletons you must remember weve found human remains along our area the sfpuc and i represent the first people some point under the free speech of information act i have to go to a few meetings ill ask for the reports because it is important we remember that hetch hetchy the real area of hetch hetchy was stolen from the first people the folks we cant take it for granted we know in the 2015 it is still flush our toilets with clean Drinking Water thats a no no thank you very much. Thank you the next speaker is ann clark. Good afternoon, everyone im ann clark Vice President of the friends of camp mather im here to invite you to our september family tent it is going to be on september 22nd saturday thats a saturday at lake merced boathouse from one to 5 activities free a climbing wall and bouncing house and kayak in the lake theres lots of activities we really appreciate all the help and for the support from the commission and staff weve had to later than a lot about the events and truthfully youve been wonderful guidance for us we really appreciate theyre listening to us and helping us so dont forget us come on september 26th try to be there well look forward to seeing you on a personal note harlan kelly was a volunteer others camp mather and he and his family was there it was wonderful i i have to tell you truthfully when you know the boss is in town we have to behave my family said i by a preponderance of the evidence the best that week so harlan kelly you thank you and looking at to seeing. And my appreciation for the board for all youve done for us. Thank you very much. I want to extend our appreciation to you and the friends of camp mather now that harlan is a big fan were arguing who the bigger fan is of camp mather it wouldnt there without our help and support thank you pub. Thank you. Do we have any other speakers for Public Comment . Seeing none, next item, please item 5 communications. Commissioners any comments . I do have one buried under the annual electrical Resource Plan i see that under recollection number ten that our units are now qualified as green power im sure you want to Say Something ive been so anxious about this for years is this really true barb hale we of the through a process that certified the 3 kicker wood power hours for the eligible resources and the meeting will come to order. Is an unit those units are regarded by the sfavks as clean and green if any, that doesnt make all of mucosin. So mucosin is a low unit that janitors when were in a high water time of year. Oh, okay. So, yes, the kirkwood are the big units that qualify okay. So what percentage of our units now qualify. It is about thirty percent the power we janitor in an average water year as california compliant about 4 hundred and 50 thousand megawatt hours a year. So what did he say whats the possibility for the other 70 percent. Under californias current rules they dont qualify if we improve their performance theyre out put it is possible to have any incremental improvement qualify but not the units themselves. Okay. Okay. Thank you. How do you improve the out put for more water or efficiency. With changes to the turbine improvements to the efficiency of the units it is not the amount of water but rather the amount of power they are generate. Have we done any kind of cost benefit analysis of that. We havent done it strictly from an rp s on my team i everything it is a factor that is included in the Capital Improvement Program Assessments on an credentialal basis worth 15 a meg hour to be qualified as a california compliance renewable so you get about a 15, 12 to 15 megawatt when you take that killing water and have it california compliant. Weve been putting together our Business Plan for hetch hetchy it would be interesting to include this as a component and see if there is some savings or some cost benefit. Yeah. I think well definitely do that the challenge if we continue to have a dry year and investing the money and benefiting we need to be careful this is something well take into consideration the cost of rewidening versus the cost of additional output and the cost of receiving the hour. Well, i also think as we move into next years budget to look at all of those i imagine there is issues related to the water issues and the Business Plan as well maybe a few scenarios to look at it and this is a case of one of them. One of the things i mean the Business Plan calls for selling less and less energy on the market to whatever benefit will that diminish over time it has focused the language we use so we dont talk about the rp s power like 9 Green House Gas free that is a physical fact of it so we can do claim credit for it as we market a green product it qualifies as green not just qualifying as rp s under the subtly. Or the benefits. Except that and which is the key. Right. Okay commissioner any other comments i do have a call i think you wanted to speak to 5 c. Good afternoon commissioner Courtney Nicole cu for bosco i want to speak on the annual report a significant document 3 deserves pause for comment i applaud puck to complete the overall wissop on 88. 7 that is expressive ive watched it number slowly creep up over time and now for the time schedule is on schedule may 2018 for the budget 65 billion and i hope that that continues to be the case as we move through the last couple of years we certainly have challenged with the calaveres damn it is not yet through the construction phases but my hope is that we will make solid progress and courage the commission to focus on that is certainly helpful to your staff and help to the overall progress of the project thank you very much. We appreciate that thank you. The next item is other commission business. No . Okay next item, please. Item 7 is the bio annual Budget Development. Okay. Theres a little well role with that commissioner courtney and commissioners eric sandler assistant general manager and cfo i have a brief presentation here foyer you to kickoff the bio annual budget process so i have the agenda here the first 3 items to provide context for understanding how our venue budget fits in the planning activity and next item relatives to the considerations that are important for this particular bio annual budget period when i have here is the puc has a very integrated framework driven by Commission Policy the first to items as a capital doesnt even agency cpa Capital Planning is sdament involved with the planning so we have the first two items are Planning Efforts that are long term in nature the 10 year capital plan and Financial Plan they provide the long term visibility for the Capital Investment rates and charges trends so those plans to look into the long term future the next two items the operating budget and Capital Budget those really based on the Long Term Plan they set the stage for the next two years are that finally a number of rates and charts activities we have we those occur at different frequency i siding so we have rates and charges for Sewer Service that are on a multi year basis this last resetting process was a 4 years were in year 2 we have 3 more years of fixed ralth rates and charges the whole rates are set annually set by contract we have wholesale customers that represent the sales and revenue are responsible for the tracking of the amount of the costs to the stent that in any year actual collections different it is mixed up this is the nature the wholesale and prigs and retailed electrical rates are set annually so this next slide highlights the Budget Development calendar and what i pointed out were here in september kicking off the presentation of the commission the general manager are issue the instructions well vet the proposals to present to the commission during this time as well from now through december were going to be continuing the process that we started earlier in the year to review with you the Key Commission policies and receive from you any input changes you want to make to the policies the one is the Debt Management policy and the assurance policy and the communities benefits and the Environmental Justice we have a few more policies to cover and ear getting this on the forward agenda between now and december and then finally once the budget has been presented considered and individual through you it goes into the greater city process that is presented to the board for consideration and action so we have a budget policy framework this is what is used in discussing and communicating about the two year budget previously and on the left in blue are the focus areas the strategy sustainability plan on top of it is not in blue okay on and on on top of we have the various policy initiatives twentyfour hour utilities and Asset Management and Capital Investment and redevelopment one of the more specific to the Current Investments dealing with the city and the Workforce Development and perhaps in the section youll let me know when consider the budget to make any changes youd like. I wasnt following redevelopment it wasnt. How we develop with the development within the city. You can actually so like Treasure Island Development Authority board and hypocritical. Hunters point and i guess i dont understand maybe now is not the right time of the policy definition then. I think this is and thats a good question im trying to get our arms around what this indicates. I have the same question in my recollection when i came on the commission there already been a fair amount of work the commission did to begin those areas and whatever the logic was was lost to me i dont know what it was i wasnt here contaminate. We had a spreadsheet. Thats something we can work on to try to come up and explain that a little bit and get our input. The purpose is to give this more time going over each policy as it relates to the budget framework so maybe if we put that in the parking lot and come back and talk about each one of them to see if their relevant. There is actually, one of the items well be talking about is the Mission Driven budget thats one the Commission Policies that would be an opportune time to talk about the framework. Can we have the slides please. So the next slide relates to the considerations for the upcoming budget were inteven capital driven organization Capital Investments the way we finance it one of the largest components of the future expenditures and rates and charges so consideration of the Capital Budget is vital to frngd open understanding our long term and Short Term Financial picture some go that more topic is understanding what are the continued Drought Conditions mean for us as we manage in the short term and long term and medium term this is not a unique situation to the puc every Water District in california and the west is facing this on the plus side were well positions on the plus side unlike other agencies not to purchase extremely expensive supplies that components the challenges were facing reduced demand and potentially hard end demand in addition, we have retail water rates and harasses that you are set for 3 more years including that year and set on average demand a normal year demand what were seeing a level significantly blow that rates and charges the Commission Adopted for the 4 years work period so this next slide relates to Capital Investment and it is fairly busy ill try to unpack it what we have and this data is from the most relevance adopted capital plan on the excess the 10 year period if fiscal ye2025 Capital Spending relates to the colored bar the green bar is the Wastewater Capital Program the blue the Water Program and the yellow is the hetch hetchy Power Program so were talking about if you add those bars together as you can see if p that represents 8. 70 percent of the lawyers relates to the watermelon investment about 5. 7 billion and the remaining bid is split between water and hetch hetchy so this is the bars now if you look at the right act excess that relates to the red line that represents debt service 85 percent of the capital is for Long Term Debt that debt the way we finance it and manage interest during construction that debt service on that debt lags because of the boring and the Capital Investments as you can see the growth in the debt service over the 10 year period will grow from 312 million a year on the right action excess to 250 million to 2025 thats a large increase so the expenses in the future relates to Debt Services with the Capital Investment a comprehensive review and vetting and the capital plan is key to the managing the long term rates and charges. Is that ssi p and capital thats everything. Yes. Thats all Capital Investments of the puc. That weve currently budgeted for not mountain tunnel. It dont include 50 million from the capital that was approved in february this is all in one place we have a very Big Organization and investing a lot. And one of the interesting things can we have the virtual again . Is that right now the debt serviced are heal i didnt relate to the water but in 2025, 2026 equal between water and wastewater all right. Sorry all those questions. I do im trying to understand understand the math the finances but the bar didnt show the same kind of you know the blue bar is relating small and the debt service would be about equal. The Debt Services because of debt issue associated with the water system that debt goes on for thirty years it is a changing net as this number gets larger we we suspend 4. 4 billion that fell off the bar if you look at the previous 10 years the blue will be much hearier than the green now moving forward youll see the green. The green is smaller. I guess i should have classified i was talking about the mix in the red line which you dont thats what you dont see. Right. So weve talked about how important to manage Capital Expenditures how do we incorporate the impacts associated with this drought and the hydrologic long term and the next few slides focus on that one thing we know we dont know how this is going to progress so we we attempted to develop a number of scenarios to provide a boundary level of understanding what is happening over the next several years and constructed scenarios with the drought worsens and we looked at the demand profile that correspond and evaluated the reduced can understand of water and Power Production and taken inadvertent in a shortterm and medium to mitigate or do you want to this impact. So the first scenario here we have here is the drought end scenario ill orient us around the slide the access we have historical and projected fiscal years from 2003 to 2019 and on the y access the retailer water saddles expressed in millions of gallons day on the chart the first one is the blue line which starts at 74 m g d in 2003 and goes to 62 to 2015 as you can see that there has been a steady decrease in demand for essentially over the period of one percent compound annually so over that 12 year period demand has disinterested about one percent impounded annually so the ground floor line represents the level of demand or sales weve used with we set rates and charges for last year, this year, the subsequent year and 2018 so weve set rates based on sales at 67 m g d and as you can see that in network 2015 we sold 62 m g d the drought end somewhere essentially assumes that 2016 will look 2015 and 2015 but will return to the predemand this is probably if you want to vault this scenario optimistic weve seen some demand hardening the demand will be slower than that but again trying to create a boundary is this space past history from when we were coming out of the drought. It is consistent ill say it is consistent what weve experienced in the past but the degree depended on the degree this has been a statewide effort to reduce demand behaviors may not return quite so quickly. And what you notice here there is about an 8 percent reductions in fiscal year 2015 sales versus what rates and charges were set based on and any questions any more questions about drought end . May i have the slides . So the next scenario is drought continues what this is essentially largely the same as the prior slides as you can see those that this scenario seems there is an additional 3 percent reduction versus fiscal year 2013 so a total difference of the levels rates and charges set on and 11 percent if drought worsens an additional 3 percent reduction and at this point we think this is a pretty good boundary at this point, were nearing minimum health and safety levels set by the United Nations we think the drought worsens is a lower bound. So, now weve reviewed the demand profiles of the different scenarios i said to quantifiably about the Financial Impacts and qualifyly lets look at the water the reduction in water demand the reduction in sales and revenue again 2 3rds of the sales from wholesale customers to our wholesale customers their rates are volume and talking about the recovery of a certain 340u78 in one year not the case recovered in the Northern California year or if weve over recovered take them back in the following year if so a selfbalancing contract and this is for the prospective of the puck so your real exposure with sales within our service area retail water retails and charges are 15 percent of the revenues recovered through a fixed Service Charge and the remaining 85 is volume metric those are the portions of the revenue that will decrease versus what we expect in rates and charges. Lets turn to the wastewater enterprise and weve got for Wastewater Services based on the water volume around 90 percent and all out of wastewater charges are volume metric so it is a one for one reduction and no volume so more exposed to the water sales than our water enterprise then we have the power enterprise the impacts the power entrepreneurs are different no changes in the electricity demands but the wastewater to generate the electrical whether it is less precipitation we produce less electric and have lower sales on the market and have to purchase power to mockup for the time of time match theres a reduction in the hydro power and increase in power purposes unlike the wastewater and water enterprise we expect to see some stickyness in terms of demand when it starts the rain the power recoveries well generate electricity and it will be reversible so any questions about those kind of quality active impact okay. Ill move to the next slide that tries to summarize the Financial Impacts in an transient way weve ran a lot of scenarios for over a 10 year period what we tried to do was to characterize the Financial Impact let me back up as or as i mentioned rates and charges for Retail Services are set there 20183 more years of set rates and recharges the impact is smaller in the first year and larger in the last because rates and charges are going up we chose fiscal year 2015 in the middle the period representative active of an average rather than showing a huge matrix so we have a have here by the 3 enterprises drought continues and drought worsens and in the first line for each enterprise lets look at Water Drought ends the Financial Impact is negative 16 million and thats in line a and line b is that number expressed as a percentage of total Retail Revenue so one way of thinking of that if you wanted to that were a permanent reduction in demand and follow it through the rate increases that is what it would be on the wastewater enterprise as you can see that the retailed revenue impact is 19 million about 7 percent of total retail wastewater revenue as you can see the drought end scenario so for the drought recoveries quite rapidly and no Financial Impact and easily read the drought continues and drought wolgz and see what those more serious conditions so in reviewing eric those are disembodied numbers put those in total budget this is what you know graphic attempts to do looks at the 2015 projected budget of 976 million the operating budget not the Capital Budget so the revenue impact when combined with the drought end scenario for the 4 percent of total uses drought continues another 4 percent and then the drought worsens another 2 percent a range from the 4 to 10 percent of total uses so it is significant but not the end of the world. So lets now we have a sense of the challenges what are the tools to mitigate those challenges well when our talking about Financial Impact 3 options cut costs, revenues or increase revenues this is the response is a balancing act all of those strategies have inventions 0 short term and longterm if youre looking at cutting the operation and maintenance which is the twentyfour hour operations of the business and Debt Services one is unhave been able use it and restructure it in a different situation but repay and the kip investment a trade off is in all of those reduce the expenses but quakes to Service Level if you get into a chronic cycle youll have to deliver on the 24 so the cost cutting make sure your striking the right balance similarly you can utility resources draw Resources Commission has healthy resource levels the watermelon power enterprise but again an extend spend down to a structural problem is not will fuvent ruin our Credit Rating given the size of our capital plan Going Forward not something youll really want to kind of push the envelope on and finally theres the option of increasing revenues this is what were thinking about what happens in 2019 when we reset the retail rates and charges again are were going to have to make up for you know permanently hard demand so what did this mean for us in the short term this fiscal year were putting in pursuant manufacture or measures to preservers similarly how we managed last year in the meantime we have an opportunity to develop the budgets weve think updating the Financial Plan through a comprehensive review the operating Capital Budget and in the long term it really what are the strategies around one rebalancing against potential long term hardening of demand but mitigating the rates some of the exposure to volume metric charges particularly the wastewater system so i know weve spoke to you when we presented the last could have of services about the opportunities to change the revenue mix of the wastewater enterprise and increase the level of fixed charges that is something were working on currently and be part of any like part of the proposal for the f 19 and 20 budget so the next step in our process well be continuing our scenario planning and monitoring the Drought Conditions well be issuing budget reductions instructions to the organizations that focus on containing costs and dealing with potential you know ongoing decreases in revenue and striking a billion, of course, between you know costefficientcy and Service Level impacts well be implicating as part of the process a comprehensive review the capital and operating budget and continue to look look for one Time Opportunities well continue the use of resources there maybe opportunities for land sales to take advantage of the market and take advantage of the attractive Interest Rate market and reduce the debt well continue to look for those opportunities throughout the year. That concludes my presentation. And ill be happy to answer any questions or take input, feedback . Stormwater that wouldnt be constitute without our next rate infrastructure; right . Right. You cant do a restructuring of the rates or anything like that if drought gets bad thats the chart; is that right. If things got bad the process we go through working with the rate Service Board have a policy for prop 218 way and have to officially dairy a drought that triggers the agreement so it has its own life of its own it is a possibility. Right. Sort of trying to understand the universe of options and you know theres all this talk about el nino in winter we dont know what that means reminded us but is there any opportunity in there may be a question for steve richie around the el nino an opportunity it capture more water i know weve talked about this and brings to mind the strment fee and its a shame we dont have that if we have t rainfall to think about the options if we possibly could get into a rainy season and use it to our vantage. The most important thing about a water system to have the ability to store it; right . And we pretty much our system is surviving because of storage how do we get more storage that helps the waterside on the wastewater does it based on you know collecting the stroerm so how do we capture the stormwater in a way to use that is a longer discussion were trying to recycle treatment anothers oceanside and utility that that is something were going to the process i think the drought worsens that he has us to move projects faster and have us evaluate other options but those things take time and weve been looking at the diverse water supply for some time now. I mean one last question on the financial piece you talk about that as an operational shortfall but it looks we have capital shortfall issues as well; correct . And you cant mix those it together. Their segregated so the reduction in revenues that impact all of your spend. Uhhuh. In that year. We need to think about two revenue strategies, if you will; correct . In terms of that is if we increase the revenue on the capital side like cost cutting for example, of ssi that that goes through the capital side; is that right. All the money comes from rates and charges whether it goes to cash fund capital or Pay Debt Service or pay operating expenses it comes in the same revenue source. So what the plan is that we want to identify what had we can cut operational and what the impacts of those cuts will be and then on top of we will look at you know short term capital maybe dir certainly projects or reevaluate projects we have to do i think that is more of a shortterm and when we go into the new rates well look at the long term because i dont know that we want to be in a position where our systems is in a sate of disrepair we start dir a lot of the maintenance that causes us problems it more of a shortTerm Solution so we can live within the rate structure but if we get into a situation where we need to evaluate and well come back and look maybe the rates but what were trying to do is stay within our means right now and the most prudent thing to everybody to rice reduce the amount of expenditures right now so were looking operating and capital and looking at all those different options right now. Yeah. Im trying to get a handle as we move into january pretty well quickly our options as far as the cost cutting for the next 2 year budget cycle and help us prioritize those hard decisions but on both sides or the on the expense side. Yes. Couple of comments first is on the fixed cost versus variable cost this is primarily on the wastewater see of things it does strike me that the difficulty that presents is selfi think inflicted wound and it makes no sense to have a hundred percent of the wastewater revenues based on water consumption it is the least consumption related cost we have so if we come up with other ways of addressing that you can count on my support for doing that that make sense to balance that more appropriately. There are other water agencies you how does that work so the agency i was at has 60 percent of the charges are fixed for wastewater. I mean in some agencies the department the agency that runs the water system is a different system that runs the sewer system some sewer systems are on the general fund and you know were obviously different by the practice around the industry is all over the board. Another thing key were unique in not only you know having water and sewer but part of the sewer we have a combined sewer not only stormwater so were by and large that on the amount of water people use assuming their flushing 90 percent of it down the sewer. Right second comment on the strategy of reducing costs and managing the Capital Program to balance the budget i think make sense in the short term with some caveats but as a shortterm matter being under fiscal year pressure from time to time is a good thing it forces you to make decisions you should probably make anyway will that are hard to make as a short term strategy this is not bad a key caveat is that for projects that are fund through our wholesale rates because essentially those revenues are fixed but no reason financially to cut back on this at all even though you have to debt finance the cash flow you you know youre going to get the money not a reason to spend that. Soy think you know looking a 2019 decision intersection for the middle eastern restructuring make sense for the austerity is a good thing my third comment i think the most important one that is i mean, if we stand eric and steve up to each other they have different scenarios one is success and problem a water strategy supply success i think that i would like to see this as an opportunity to try to institutionalize some of the sxhefrment games weve achieved through the drought not a hundred percent some or are liability hardship but to plan on that being did new normal and working hard to make sure it is the normal and not happen by accident that will take a little bit of money as we do our longterm planing and water supply planning i think we should be firmly to establish the drought savings as permanent and that has financing issues associated with that it the kind of thing to looked forward to in 2019 id like to dovetail on that i was going to make a remark about your slide 16 which is the of him planning complmgz we which we look at medium term and longterm as you mentioned are were going to look at that with drought in mind continuing drought or back to a normal water supply. I think what were going to be one the keep going things were looking at in developing the updated Financial Plans what will demand look like and probably provide i havent talked about with my colleagues but adding to the productivity. Will we see one document or continuing scenarios. I think that will probably be in the context of the long term Financial Plan well look at sensitivities with the long term impacts if sales were going to be shifted down 5 percent or you know show you grow i think that will be what were looking at more the the long term impact question than a next two year question. So the first thing i guess we are recognizing that in the future were not going to sell as much water so revenue will not come in given the fact the budget is based on selling more water what do we need to had to live within the revenue weve look at the 10 year capital plan and our operating and when the actual opportunity to look at rates well look at that and come back to you and you know talk about what the rate increases will be based on all three of those. Yeah. I would hope that conversation is pretty much hand in hand with the budget rates even though theyve not be looked for alisa miller three or four years to understand we could be seeing significant rate increases and those will have budget implications. Yeah. The first thing were looking at the short term which is doing what we can to reduce our expenditures and maybe using some of the reserve and then look at the 10 year capital plan as we mentioned here weve been planning and looking at different rate structures for the wastewater weve been you know involved in that on the waterside on the retail opportunity and in 3 more years to address that but also look at the projects and given to our point reevaluate whats in our 10 year capital plan assuming we may have to diversity our project supply and i think about moving up projects faster. My two takeaways number one conservatism costs money and you have the same costs the rate has to go up so i think we need to know that and tell people that and as we go through the future selling less water be prepared to do it thats nonand two needs to be that we cant succumb to financial nervingness that led us to cut back on the Capital Program in important ways i say room to finetune and maybe things that are less important and could be delayed without impact but we need not to go back to the battle if we spend a lot of time in get to this point the system was better maintained we need to stay there weve already sold bonds well be spend that for key infrastructure like the amount we should be preying in an aggressive way and not let the financial tail wag that dog. I agree. Any other comments ive mentioned on the phone i found this i really thank you and your staff for putting this together it is very, very important and were living in this and have to look at this so thank you for that thank you. I know we have some Public Comment nicole or okay. Id like to make some very practical suggestion commissioners ive said it many, many times and im going to say it for the final time you all need to make an assessments on our clean water pipes and sewer pipe that are leaking to find out right off the what the how much clean Drinking Water and how much of the surge is seeping and containment our ground water having said that, weve not made a single assessment if it rains if we get one inch of rain how much of it is run off . There are experts that have captured the figure and say we can save such as 80 million gallons of water you need to ask our experts to call other agencies or if they can 1st district to bring this report to us now, when we have presentations like this having worked in the military those have conceptual console plan is like a dream you wake up and it could be a worse nightmare now lets be realistic in todays economic world whats happening with some all of a sudden super powers we really have to be prudent with our monies i heard a figure outside 600 million has been satisfied for mountain tunnel and we think like were going to spend e. R. Keep aside of a hundred Million Dollars taxpayers money and think nothing of it i dont know what type of prudencecy or for the record or fortitude that is so commissioners, i think you have to look at it in a total different way when it comes to conservatism and everybody agrees why water water were told not to waste water im in a habit of not waiting water and from the presentation i saw you dont need to be a rocket scientists and that debt shouldnt fall on the taxpayer thank you very much thank you nicole. Good afternoon, commissioners nicole ceo i had 3 comments i wanted to make on this particular item first, i have found that budget to be the most helpful in present the independence differences your struggling with i applaud the cfo this is helpful youre not alone certainly my agencies are struggling with that as well and this is to my second point ive talked with them about handling Financial Difficulties they especially\say go to the puc and ask them to stop spends they wanted the projects you supported commissioner president caen and a strong continuance to maintain with the progress and reiterating weve making sure that you dont go to that corvettes cutting measure if you need to will be something of concern and lastly in the budget of what happens from the drought continues ill add to the things i think you need to consider is where did that next increment of water come from go not only the Financial Sales but the Financial Investment and other alternative supplies to be thinking about ive been having conversations with richie and your wholesale customers supports this this is a system they rely on and look for the investments can we make mississippi if any and this should be thought of in the bucket as well. Thank you are there any other public speakers. Sierra club the next item, please. Item 8 the climatic change workshop. So as part of the drought and the situation that were in really falls under climatic and frankies can wants us to talk about how it relates to climatic change i asked david to come up and talk about all the efforts were involved in and as an agency were facing but also have each one the enterprises to talk about how climatic change is impacting their enterprises so thank you harlan david the Climate Program director good to be back the commission knows that catalytic is real and happen today and continue to accelerate in the future more quickly or slowly depends upon on the Green House Gas emissions over the decades so while theres no real dispute about whether climatic change is happening the nature of climatic change is uncertain therefore as we embark on the adaptation and other enterprises we need to think carefully how to do that and the pace the best approach is the adaptation were involved in studying and being part of organizations nationwide that the members have been providing flexibility a sense of adapt adoptive management and the ability to stay current as harlan said while summarize about the conditions related to complifks are true and were going to have representatives from each enterprise come up and talk about what is happening in each enterprise to deal with those issues most of my slides are labeled observations or projections with the actual daylight information in hand and projections from climatic science tools that tells you something about the future temperature gets a lot of press there are a number of factors that are important to our operations ill highlight some of them temperature and precipitation and snow impact, compliment extremes and sea level those are the phenomena ill focus on it is called Global Warming and this is observations of global temperature over the last hundred and 65 years as you can see a fairly instead upward trend in recent decades it is gotten warmer by a degree centigrade fahrenheit 2015 was the hottest year we saw a number of record warm that didnt come out but labor record growth and much warmer and warmer in average more locally at hetch hetchy we have this years temperature data observations since 1975 the best qualify this is the daily the trend warmed up it is not sharp by definitely there and then on minimum temperatures that are extremely important for dem the pace of snow metal a trend up at helpfully it is warmer at night as well and that is an Important Role in telling what is going to happen with snow pack one the key storages place. Looking at the future on temperature Global Warming theres projection Federal Reserve the entering good morning challenges on 20132014 roughly similar upward based on the scenario the red line in both graphs the highest levels the managers and basically bus as usual if we continue with Green House Gas emissions in intuitively the icc report the range between 5 d. C. That is wupdz of 9 decrees e degrees that is called the business as usual we only go get warmer with r. C. That stands for representative pathways that is basically a measure in a volume of air that results from Global Warming and if we get to the 2. 6 the temperatures level out this is by far the most optimistic scenario and not one that people hope in right now the temperature has a great impact on snow and on the far left the historic snow pack on april one and then the middle graphic shows what happens under a moderate to snow pack on the rights is what will happen to snow pack on april one in florida a business as usual scenario under moderate 48 percent of reduction in by the end of the last 3 decades of the high emissions down 65 percent as you can see in the circles that appeared our watershed up at hetch hetchy centered in the hetch hetchy positive we have some of the best snow impact and on the negative what the projections are showing towards the end of the century on precipitation the picture is laboratory indicative of our area california observations here basically no real trends with the precipitation on the screen the orange resign up and down an 1111 year basically no real trend in the last hundred years and precipitation is not changing statewide as a total measure and that is being seen thats the data thats whats happening in terms of the projections this is a busy table but shows a few things the observations on the left hand in green with a trendline in black same result as the previous slide no real change in precipitation on the righthand side a number of blue and red lines each of those are a global compliment looking at the year 200 hundred and again, the trendline for total precipitation in Northern California is go basically flat so were not seeing a big signal in our area in terms of the precipitation Global Warming precipitation goes up because the water cycle spends up but depending on where you are in your unique climate. However, looking at extremes precipitation extremes in this case that is one the things in the Climate Community that is something will be increase over the future extreme events and precipitation and climate on the lefthand side you have a table showing climatic change tables out through this is actually through the period 2016 and days without rain b will go up and heavy rain will go up . Extremes will get more extreme this is the kind of thing that as implementation for the water entry in hetch hetchy and the Stormwater Management system in the city and county of San Francisco. Another extreme we care of is drought it is data it is observations on sand yawning river this is the extreme flows for the san quantum and this is over the last number of years up thoroughgoing back to 1901 the blue Straight Line the trend as you can see the stream flows are going down in this trend in the data it is important to remember that stream flows are not only precipitation but of e evaporation and soil moisture and temperature and highlights the focus precipitation trends are not evidence in the projections are we still seeing an impact on drought this we may be seeing this even more in the future. Those are on air flows. Im sorry. Those are unpaired airflows the river that combines for the transcribe try forces the van adjoin i dont want to say. I was looking for changes that regrets the reservoirs coming online i did not see anything there. It is probably unpaired because of that but ill get the answer we got this data from the College Office and this is what they calculate whether or not were in a drought but dont want to say. Were seeing the same thing on the sacramento side as well this is a plot of the temperature and precipitation records from 1895 to 2014 the temperature on the yshgsz axis each dot represents a 3 year running from 2014 whats the 3 year combination of precipitation that were seeing in california as a whole and of course the most interesting thing about this graphic there recent 2014 inadequate adequately 2012 and 2014 this is is the hottest and driest in the records going back to the beginning of this table when is 1895 but a lot by a lot what isnt clear whether we contribute this fact to clooifk or not what is also not clear the degree to which we should see those super dry and hot years under climatic change we know that will get hotter whether it gets drierer and hotter is this an anomaly. So if you have a super wet year because of the extremes wouldnt that throw off the draft. A super hot if you have super hot and wet that dot would be on the upper right hand. Each dot is 3 years so one is silth less. I dont understand the question so 77 was the drive it year but not a drought the i guess im trying to think this up with this notion were going to be seeing some extremes that we havent seep should change the composition the graph. Thats exactly one the questions droughtness is a measure not precisely didnt understand we know how to refine it what will we see in terms of of the drought in the future and that asks the question what are the sequences of the years different from the sequences weve seen in the past. So turning now to Sea Level Rise a manifestation that matters to the environment weve down a deep dive and come up with those projections for actionable information for planning we did this in conjunction with a year of mergers that occurred with the city and county committee that was organized at the direction of mayor ed lee and chaired by you, yourself truly with significant participation from a number of city departments and had a tremendous amateur the participation from the waters enterprise from the consultants and staff and youll hear more about this from bryan when we say up here talking about the programs for the sewer improvements programs that contribute to creating the Sea Level Rise and helped to which is a document weve worked on that was adopted by the Capital Committee september of last year and this document will governs the way we think about the 10 year capital plan citywide for the vulnerability of any Capital Program to sea level it is one the first guidance of its kind in the implementation right now that concludes my comments im available to answer any questions or hand to mr. Richie. One short question i heard that jim hanson has come out with a new project from sea levels that not been used. Hanson is in a very special role ill say in public significance hes reassigned at nasa in order to create advocacy climatic change issues were should be grateful his science work is sea levels by the end of the the century were constantly looking at the science there is alarming about the ann can the hanson article was not reviewed i think from our research on it was intent to provoke thought it is pretty much higher by a significant margin than the consensus that what is physically possible if everything going wrong if a land ice metal or another thing that contribute to sea level and because it is much worse the worse Case Scenario i dont think that for used by decisionmakers. For our planning purposes go back do the slide. 11 inches no. Yeah. This article was talking about 21 hundred 3 feet we consider likely 66 inches 5 and a half feet is unlikely but possible for planning purchase 46 inches what were using right now internally. Well both theres no one number to assign to a particular year youre over simplifying it were providing a range and then in the guidance a lot of detail how to deal with the range the uncertainty like 85 years the way you deal that that think there the option to do you want to the year 21 hundred or do you want what is likely in 21 hundred and 2060 or 70 when you know more about what is happening the worse Case Scenarios and where we stand in 21 hundred and get another bite of alisa miller and Hunters Point shipyard think about what we know best and plan for that and be prepared to plan for worse Case Scenarios if it looks in a few decades like theyll come true. Thank you. Any other comments okay. Mr. Richie thank you very much. Thank you steve assistant jerold for water ill be brief a number of effects on the water enterprise but ill put this think the single slide here shows what is most likely to be effected the utilization of hetch hetchy 81 percent of our supply is important what the biggest question the snow pack and run offices the potential for more rain with greater extreme periods on the extremes i was thinking about the 3 year period if we had one wet year out of 3 the water Enterprise Well be happy this is 3 years weve not seen the chart for the 4 year im by the time there 2015 will be the hot i did drive it 4 year period that would be a problem and that is limited change through 2025 not enough chapping to make a difference were experiencing the drought were looking at the impacts on the regional waters system and take the climate model and down scale those to the water shed and plug that go the operation system and our exceptions like on sea level is that well end up with a range of not one answer to provide it just possibility and have to basically hope for the best but plan for the worst so it is a factor we expect to develop a protocol of no investments maybe conservatism programs well continue on doing and to diversity our Water Supplies as weve talked about previously and youre doing right now were diversifying our supplies we dont know if well have anything available given the climatic change weve recycled the water this is something well Telegraph Hill enclosure and implement were starting on the grand theft and in construction and others ground water projects and the brandish ground water or surface water brackish causes less energy to get salt out of well looking using those and copyrighted to replace the loss of snowpack the calaveres damn a new calaveres dam i had to include one with a hole in the ground constructing that with a larger baso increase the size of calaveres dam if we get more precipitation as rain than snow the possibility of additional transport from helpfully to store water down here im sure going to say helpfully is something well get into those are the kinds of things to look at Going Forward where we store our rainwater thats a quick summary how we looked this ill be happy to answer any questions. Questions. I only have a comment as we get more into the recycled water another item on well need to keep our eyes on what we use. Absolutely. Thats where a lot of folks are moving and in the future as well. Yeah. Has there been anything for the eco System Health projections i dont know when the states and feds had been looking at this and climate related im looking at the eco system as it relates to water and supplies. Certainly on the eco system on the climatic change side theres been a lot of work done that that the temperatures rising and they have to mitigate higher than and higher they may congratulate but in terms of drought were losing a lot of trees well have a lot of dead trees that increases the fire danger were seeing this because of the drought not a lot we can do about it on ride it out to get to the odds other side. Well have to track that and the loss of forest land and more problems on the keep because of the vicious cycle and also the finish supply ill be curious to here peters thoughts and tracking the impacts of the catalytic in our water sheds and what we can do and well indefinite as part of the dam calaveres and low springs for the first time were having under flow requirements that is something were move forward with regardless. Okay. Thank you. Im going to turn it over to barb hale. I have to Say Something first back in the year i think 2000 with when we were planning calaveres i said lets go high so im glad to see it is come back. Coming back. And thank you. Thank you, ann. laughter . Ca as i recall you insisted the foundations be high not no to have to redo that thank you for youre good deed is being regarded. So leading on to what publish described power enterprise follows the studies that the water enterprise engages if looking at the modeling of hetch hetchy system at the hetch hetchy water shed from the modeling will have a better sense of the Generation Profile is as you may know depending on the water year take into account the slides well have generation in a dryerer year not to much if we see the kinds of changes in density of the storms and changes in the speed of thaw we can expect to see steeper peaks the megawatt hours produces over a years steeper peaks and lower valleys well be behind the enterprise when we complete hair modeling work that describes the water and turn that into Generation Profiles and so that looks like for us in the meantime in the years weve been spend dollars to mitigate the impacts of climatic change we talked about earlier today the fact were a g h g free producer were not contributing to the amount of Green House Gas in the environmentalist but just the same mitigating the impacts our customer usage can have on the communities the Overall Community 72 point millions over the past f 10 to 15 over the past 5 years have been spent on reconfigure active Energy Efficient program for example, as a result of that seeing quite a bit of reduction in tons of carbon being omitted 35 meow thousand cars taken off the road the equivalent is a great positive impact our revenue investments repair investments have produced as we look forward well only be spending under our 10 year capital plan about 31 million for climatic change mitigations, 10 miles millions for energy and 12 and renewable and the go solar rooftop installations and here as you can see what we project to see as the impacts of our growth in our customer based through the communities sf clean power there the gross in our sales to customer here in San Francisco we bring more of our hetch hetchy power to retail customers and make less sales on the wholesale market for the tying this together with the Business Plan predictions over the last couple of commission egg meetings bring more Green House Gas emissions generation into San Francisco could what do we see as the totals emission for those tilts 77, hundred and 93 carbon reductions are associated with those investment with the full royal out of the sf clean Power Program that super sized it 2 hundred thousand ton reduction per year in Green House Gas emissions and 5 hundred and 40 house plus Passenger Vehicles off the road a quiet a positive impact ill be happy to answer any questions or im going to turn it over to bryan from wastewater. So i have a couple of questions one you know im the money that were spends on mitigation is go down i understand the decisions with their thats our decision but one thing that happens more and more were purchase as we dont generate waters were got more o more dirty power now is not the time i really want to have that conversation if and when we look at those policies we have on the books and if we could start you know counting that if were going to pay less with the infrastructure what have you have purchasing renewables and create some at least you know bottom line baseline around the kind of power were purchasing not just the cheapest low bid power i dont know the best times for that meeting but through the trade offs i know it didnt fit well, to go to h3 were going purchasing around the market. So what you know, i think it is a longer conversation by the way, everything thinks that you know having renewable your hundred percent but a theme if you have solar sometimes during the day your buying system power but averaging the solar is all good a longer than conversation were putting more into the system and when we take it back out were assuming were taking out what we put if we have to have a longer conversation not as simple. And maybe offline but trying to be straechg and then the other question around which came up around the rim fire the question of power redundancy and lost kirk wood had to buy you know bad power and just you know what the thinking is especially from the compliment prospective to build more redundancy in our system as we see more wildfires and losses service. One the things we were able to address parts ever our powerful is to are redundancy with the ability were purchasing power for cac and so were looking at different ways of diversitying which we outlined in our plan. So part of it is communications too like what are we doing as a city and as a utility to build in climate residentscy to be a great pieces of work. Part of what we need to do as a staff is look at an integrated Resource Planning where were able to take the issues take into consideration definition or different indication and the resiliency another but looked at the in a more integrated resource modeling where we look at the energy and as well as generation together and make those horror holistic decisions and more decisions. Definitely look at introduce a climate lens what were seeing and being able to say we need to be ahead of the game will be great, thank you. Thank you. Mr. Apprehend son. Thank you brandishing bryan the wastewater manager id like to actually take this moment to introduce our wastewaters climatic change manager who will be leading the way for wastewater enterprise regarding climatic change yeah, the effects of climatic change have already effecting our system preliminary through rain intensity and rain and drought in addition the e revision is effecting the key infrastructure along the beach trends and precipitation indicates that with the warming climate well continue to experience for tremendous wleefrp with more intense storms those are photos you may have seen from the storm in february of 2004. When i starred with the city a while back high tides never entered our system last year, we had 78 different high tide events that come into our system that significantly impacted the read circle this problem will only get worse as sea level continues youve seen this slides before. This is the creek out fall at low tide and high tide on a clear day we have flow come into the system were also concerned the effects of drought drought and corresponding water conservatism we rely on water to flush materials through the sewers continuing drought coupled with a rapidly growing population will diversity this a shot of the e revision with the sea level storm sunday morning and wave patterns that threaten the infrastructure along the ocean beach this photo was taken across from the treatment plan during the 2014 illustrates the effects of e revision and my colleague will present that information in this area. Coming up so what have we done to prepare for catalytic weve added dedicated staff collaborated with other city departments which will become very important as the city develops comprehensive climatic change strategies weve hired containments to help us develop the adaptation lane plan and implementing the prongs weve developed policies and programs to help us have a more resilient system and talking about the climatic change at meetings and educating the public essentially what we see here as part of our comprehensive the complifks Adaptation Plan underdevelopment through the ssi p it computed steps to complete before we determine appropriate adaptation strategies we are assessing the risk and beginning the development of the adaptation extreme e streaming that is expected in 2016 a living document that requires periodic updates as we learn more about the project. For the mapping was those are the integral ssi p guidance that was mentioned earlier as a result of that work all the city departments are using the maps for the planning purposes that particular map illustrates the 66 inches at 21 hundred well be underwater. Can i ask you a question on this map was there also some mapping on the backflow issues occur as part of the Sea Level Rise maybe youre getting to that. Thats the issues. The Flooding Issues the sewer system incidence. We have maps unfortunately not in the presentation right now but glad to you know it is important to have an understanding weve dealt with a lot of Flooding Issues not squarely related to sea levels or climatic change and if there is someway before casting and looking at those neighborhoods and issues and we definitely already seen many of this and have sensitive mapping. Theres two different thanks one a Sea Level Rise indicted and the density of rain and we have maps that show if we have increased density of rain over the short term what areas will be impacted and so we model a lot of that so we plan to give a presentation about the flooding and about the impacts of concern neighborhoods. Yeah. There is just to be sure to integrate those maps to look at the hot spots and seeing what strategizing we can do. Sure thing well should where we have problems not a gravity solution to flooding problems during those high tide events. There we go as i mentioned earlier were experiencing the effects of sea levels this is one of the years weve piloted a backflow devices this was installed in may of 2014 and it has proven effective great storms sin e shins then weve not put those on all the systems lastly to present you with an overview on the efforts to address the e revision on the beach climatic change reflects the ocean beach from sea level storm sunday morning and wave patterns as you can see the e revision has been chronic the goal to develop and Long Term Strategy to both protect wastewater Center Structure and promotes the shipyard the long terms strategy is underdevelopment were working with the coastal go commission to implement short term measures they include sandbags and the long terms strategy will be ready to construct in late 2019 and heres a picture those photos show the measures with the sandbags and sand nutrient those measures should be sufficient nelsie nonetheless we experience extreme large storms. Again, this is kind of where we are now and this is a rendering of the final concept for that the management retreat to protect the lavished tunnel under the highway this project will protect an estimated 2 billion of wastewater entries infrastructure in addition to the San Francisco zoo. Isnt our out flow pipe threatened as well. Thats the south west ocean out fall youre referring to. Uhhuh. The pumping is effected the force makes sense from west side to oceanside are effected. I thought that was an exposure issue. Were not having an exposure issue that is endangering your right there are portions of the structural members that are visible. Oh. That concludes my presentation. Im available to answer any questions. How much of the anticipated sea levels rise work is currently in the capital plan . Every project within the capital plan take into consideration sea levels so whether or not effected it is considered im thinking more particularly of the doing something about the ware valuation of the boxes whether this is a pump solution or physically. You saw the black hoe preventiveer the more immediate but when we have those high tides in storm emission the only solution is the pump solution but have sorj storage to the extent we have the central tunnel that has storage there will be events that beat our system. Are there elements in the 10 year plan or those a projects beyond the 10 year horizon. Thorough Planning Efforts within the 10 in central bayer side no solutions to the pumps. The way were going about it one were looking at what we feel are prongs that bring our systems in a state of good rape and make sure we really looked at climatic change and see how to impacts there are projects that addresses catalytic for example, were now looking at flooding and so this is something were going to address how we can deal with flooding and i think you know were looking at projects maybe adding more scope to the project to address or take advantage of the opportunity to address certain impacts that climatic change will have and think from a city stand point the city as pretty much adopted a lot of the science the maps and stuff and so the city as part of their Capital Improvement we go to the Capital Committee you have to make sure you take catalytic take into consideration so the ports for example, has a lot of issues the airport has a lot of issues when you talk about their challenges theyre very a lot of challenges abused you you know theyre talking about building a wall but for the airport it going comes from the backside from the south and so youve got to build a wall all the way around with the communities to build the wall it is challenging were all looking at how we can look at projects to try to help address climatic change. One other thing i was open of was the in hetch hetchy one of the ways we brought the 10 year Capital Program into balance we moved long term transmission projects its important to know that one way of asking the question if there are things like that in the wasteWater Program that are large and beyond our normal planning horizon we should identify those to know theyre out there. And knowing their change and the planning will change what that looks like but if we know there is Something Big thats important to know. I would like to be looking at what were talking about what are the projects that would be impacted by whatever sea levels or changing climate. What will it cost to really build in re since in the next 10 years. Building and operating those facilities becomes a significant effort especially with the revenue impacts; right . Yeah. I mean for example, the wastewater we talked about high treatments or what is it . Rapid treatment high rate treatment. High rate treatment more the flow treat is it more of intense rains we have those options and weve identified those could be out 20 years so we can bring that forward some of the thoughts weve been looking at. The possibility of capturing and reusing the stormwater thank you. Thank you. Ill call for Public Comment now nicole did you good afternoon, commissioners bill of health can i appreciate the update on this time low topic especially in the Advisory Committee of wear were experiencing two things i want to comment on and looking at the idea that mr. Richie was talking about how the water enterprise might respond to reduced water supply availability through climatic change certainly your wholesale customers have an interest every single is relying on that perpetuity hundred g d in the contract with you like you theyre looking to diverse their local supplies but doing that to meet the needs youve indicated youve not provide any more water to do so so your supply is only thing they have available theyre concerned about that im also interested in the idea of raising calaveres dam the new dam it is interesting to show up on the list and we were a supporters of that as well in 2000, 20091 and 2 so thank you. Hello yield for bosco first of all, it was an interesting prediction i was listening to what was ignoring im glad the sf clean power is a part of that one part it missg i get did were looking at doing the renewables and thats not port part of 10 year plan i get did we know know how much were go to spending and the knowledge how much it will cost well get more updates the public will know and keep in mind as commissioner moran theres those projects that are further out this is kind of in the same educate it is something in the near term more access to help to do the climatic change initiatives you need to do and cac can help to get that down i dont want to lose that in the escape lets not forget where we live have the money coming up next year to launch to do things not in the capital plan but added to it in the not two distant future thank you. Thank you. Good afternoon peter first of all, i want to dwrags the puc and bosco for a tremendous efforts around sxhefrment youll recall in 2008, when did phased was approved a cap on water sales and even before the drought we were way below the cap available this summer the hot most with the low eir domination we didnt exceed that were in much better shape than most places and helps us as we prepare for adoption im glad that commissioner moran brought up the reuse that is happening in a lot of places as you may know in Orange County their producing hundred Million Dollars e millions gallons and filtering down and recharging one set of pipes to debt to all uses and the waters district came online with their production ever 8 mc d and having treated water to use it for irrigation but educating the exultant trying to overcome the yuck factor and hopefully putting it into the pipes i think that the west side basin is a good use of injections and a lot of opportunities and wanted to take a moment to respond to temperatures and finish theres a very, very direct correlation the most important the puc did a great things a few years ago on pedro a concern we were seeing dead field head and the puc approached missouri deft and convinced them to go in on a 50 50 split of more water so summary flows up to 90 and its all based on how hot that day is projected to be so keep the temperatures low enough the fish wont die and the kirk agreement puc has embarked on an eco System Program for six or seven years great process bringing together the stakeholders of the hetch hetchy stretch between hetch hetchy and the early intact and last april of 2014 erased a draft Management Plan for them and focusing on nature species and releasing water in a way that mimics the ohio graph and the proposal to shifts blocks of water for the sum in part for brown trout a nonnative to the springtime and theres its about temperature not releasing too much water in the winter it might have a Rainbow Trout available we need to continue that how is climatic change going to effect that and have an dog patch Management Plan for that. Thank you fascinating. Any more speakers. Seeing none, next item, please. Item 9 a report of general manager. First topic is cac update hill. Good afternoon barbara hale assistant manager for since august 11th our revised prelims plan submitted to the public works was certified so weve achieved that milling and issued on that data request for over to provide supply to the sf clean Power Program and on september 3rd received responses we have multiple responses and the two primary bid 0 offers that we had published the first being if i remembered and shaped energy and the second being Renewable Energy products weve gotten multiply bids and also offers for the resource capacity we need to procure for the program were busy evaluating those bids were hoping to be able to short list and innovative the bid option one biefrdz of our interest in interviewing them on september 14th and then cosponsored to you with the proposed counter parties and terms first of all, went to our schedule on august 1, 30 so o so when you look at the screens youll see the schedule the highlighted in reds the activities that have occurred since our last conversation on august 11th with the target activities now being evaluation of those for the offices of development for the agendas for the september 25th joint meeting with lass could ill be working with executive director freed and the Commission Secretaries to publish that were hoping to bring to you the enrollment and Community Outreach plans we did present our i preliminaries thoughts on the citizens Advisory Committee last week and as i say hope to presents that to the joint body that week september 22nd for the not only our meeting but the joint meeting on the 25 weve been engaged with the legislative session enlarge weve seen some major piece of legislation that effect both our Community Aggregation and puc program theres a lot of activities open those fronts with that, ill be happy to answer any questions you may have thank you. Thank you very much. Would you like to speak jason. You havent called for Public Comment. Jason fried executive director for bosco she didnt give the staff enough credit theres a lot of work for the b r a large project ive been trying to limit might have to the questions for the staff to focus on that because it is so important for the program i look forward to the september 25th meeting were working on to or the joint meeting between the two commissions to get. Full discussion of the outreach plan and thats the next thing generally speaking prereviews one or two small things to have discussions but overall the staff putdown everything together for the planning market and the state legislation big items that are come up your staff and as well as other in the cac world working to make sure the cac programs dont get negatively impacted how to deal with Green House Gas emissions or climatic change look forward to talking about with you on september 25th thank you. So well help me remember what was on the screen. I have the same question. Whats scheduled for the meeting of the 25 on cac . So the meeting the 25 a joint meeting with lafco two primary tops with Enrollment Plan and our outreach plan. Education and outreach plan. So describing the plans for how were going to market the program both geographically and visually full describe to the customers the offersing and targeting our initial efforts and moderating with the up to 60 megawatts of customer load. Okay my concern is that because it is not a standard time im not going to be here for the 25 i go to a fair amount of work go but less likely to be in town the other times so when we shift a meeting like that it as consequences as far as availability i dont know about the other commissioners two tops that are pretty important im sorry to be missing them. Can you be conference called. No, that is not legal. One of the things we could do is near the meeting we can give you you know productive pretuff u view so any comments well reflect your comments were as we give the presentation. Lets plan on some version of that. Im with having a hard time to so the selection of the r f o contact will be in time for the lafco meeting. No. Well be interviewing the bid option one for the short lifted parties on the 21st we wont the process wont have matured by the 25th to talk about the outcomes i mean, im just anticipating that some of the lafco members might time to know the results of that i suppose we can schedule another meeting in response to commissioner moran implementing i dont know there might be questions and issues over those years of many r f o and rfp a lot of questions from the other commissioners. What i would say looking it looks pro tem so we have to due our Due Diligence and so difficult to schedule a joint meeting if we push it out future you know it is so at any up to this time well give an update of where we are hes been involved along the way. Perhaps a preview. I hear you well see what we can do. To commissioner moran those meetings are really difficult to schedule. I know. Were sorry about that. Okay we need the drought. The next update the drought. Steve the general manager for water ill try to make that brief the slides please again, the reservoir storage is performing as expected and hetch hetchy is dropping down full at 83 percent and the increased storage of 24 percent the storage will peak at hundred and 70 or hundred and 73 feet the precipitation remains unchanged flattened and some cliefrz i hate to disappoint the director weve creeped above the yellow a little bit and still youll see this is quite low demand compared to the prior times and lower than the other target actually, if you look at the rate of achievement were at 95 percent of the achievement it is clear that San Francisco customers continue to do an outstanding job of sxhefrment well well steady that target i did mention a while back we launched a Pilot Program send out notifications to customers we see those tungsz consumption youve got a leak we sent out 15 hundred and good response the leaks went away and contacted 40 percent and gotten the on the long telephone number but simple fixes like toilet flapers and the climatic change presentation that matters what climatic change is doing how the driest period in california i wanted to get to those two slides those are the ones that hopefully answer a little bit of the questions b what about el nino what this shows a measure the density of el nino the higher the reds spike the stronger the density of el nino and the blue spikes passenger seat downwards are the nonel nino so enrichment of variability and the gray area is normal i guess the best way to describe it so you see the important thing the next slide it precipitation at hetch hetchy overlayed on that and what you see is not much of a correlation for us in our water shed with el nino 1983 when we lucked out it came out exactly the same but 1997 was astrology el nino we have good all of a sudden at the beginning of the year it tarpd off and see wet jars that are el ninos and dry years that are el ninos we dont know what to expect we need to hopefully for the best but plan for the worst. And lastly on the states water board they have gotten pentsz for the irrigation district we actually have filed to testify in that matter and decide whether were going to go provide the testimony that raise a number of issues such pre1914 water rights and how they circulate the water availability in the system those issues well follow closely whether or not we ultimate testify in that are matter ill be happy to answer any questions. I have a question on your slide 9. Uhhuh. Your spike up is that anticipation or for 2015. Oh, that was thats a good question i did not prepare that chris one of our huhuh drafts that might be what occurred that was a weak el nino that was this past year not problg forwards into the coming year. Is there a forward year slide. We dont have a projection obtain here. On here. No. It disappeared. Those are observations this is the past water year. Okay. Any other questions. I think i have a question about el nino still wasnt quite following it is is the rains going to be as severe as projected are we prepared i am not i think i know the answer it is like weve got our reservoirs that are ready but beyond that we could are be facing on the one side of things pretty serious flood issues were not prepared to capture the way we could. You want to address the issues. The first issue. Water bank is entry any water we can put in water bank that would be great if we get a great one this year that would be fabulous weeping well end up with a full overflowing water bank in don pedro. An el nino they happen at Higher Elevation as well. Its an ocean events it has to do with with the temperature of the ocean water the effects overland they tend to be more printed out in Southern California and oregon in the Central Coast a lack of correlation. I thought it was at lower elevations. They can be dry. They can be dry. Okay. That was the point they can be dry or wet like i said, we have to assume the worst from a water supply prospective and doing the hard work on flooding. So we could a have clear projections. No way. So our great modeling. It depends on who you ask it is all about you know the whoever a High Pressure you can warm front and the north and what that could do is move a lot of the precipitations more south so ive heard about that in Northern California we probably have above normal year but in Southern California a major you know its been different depended on who you ask but were hoping for more rain just not all at the same time. I do remember we invested in that high tech rain modeling thing for the wasteWater Program. Yeah. Thats a project that the city underway and realtime factoring forecasting it is not like weeks in advance but give us time to move our water around the systems and be better present thank you. Okay. So you want to stay there and do the mountain tunnel. I can do that. Okay give us a quick update on mountain tunnel as it relates to our ability to supply water during the hetch hetchy shut down periods i think this slide pretty much the events of any hetch hetchy description whether prandz or not we shift the local Water Resources to basically our local reservoirs through the valencia Treatment Plant to supply water throughout the system and have the santa contractor that santa clara were trying to research the number theyve used for an extend period of time when they have a treatment problem those are important functionss we have and also the possibility of our Customers Using alternative supplies and rationing and agreement with other agencies to provide water we elevated our ability to have the shut down these planned and unplanned and shut down are scheduled in january and only last 60 days its not a completely analyzed number but that was a good rule of thumb through the period we didnt want to stretch the system too much but have lots of shut downs going this is using the criteria of having 90 days of supply at the end of the shut down and hundred 80 days in supply available locally by the following june 1st to make sure we have the size available for the future we dont want to run ourselves out of water but have some to go forward weve elevated the range of demands from 6 millions gallons to 20 million gallons and average demand as the analytical number that assumes a little bit of rebound from drought not a lot but some utility our spices we can accomplish the hetch hetchy up to hundred and 20 days from october to early november that gives us twice the length of the shut down that weve had before and that is something that i think is very, very important to us weve also elevated the ability to 90 and hundred and 80 and hundred and this is the storage conditions at the time of the shut down you dont know where youll be but taking the worst percent we see the 90 day shut down or 3 months as an emergency shutsd is manageable with our resources we can handle that any time of the year hundred and 80 days of months requires achievable demand management or use of interties not doing anything extreme to survivor 90 days but do thing different for 2 hundred and 70 days that requires significant effort going to a degree of arbitrarying or alternative Water Supplies or hope for the ties for an extended period of time so, so me that is that pretty good newspapers well manages up to those six that applies to mountain tunnel and hetch hetchy other things could go broken this is the first time weve analyzed the possibilities. So the next steps on this were meeting with bosco staff technique to review the results from the analysis weve done you know what they think and feel about that how to communicate this to our customers and want to extend our analyze particle the shuts down in following years what if we did this 3 years in a row the results about show we can do that but we have to do our homework to be sure and well need to rely on the two flirtation plants for the local supplies to be available weve looked at this but make sure that those filtration plans are ill be asked to pass the proposals the support went out in june we expect it have a consultant to inspection that on board in early 2016 i didnt include it on the slide but it should be going out to bid and for the long Term Solution the reelevation yourselves in early 2015 after the major schedule so the schedule youll be asked to adapt if include a hundred and 80 day shut down this is hot off the press 0 alternate the schedule to take into account the possibility on a technical front to halfhour make sure that the right thing to do we want to be sure and ill be happy to answer any questions. Is something wrong with the there somebodys phone near the microphone . Well. That did that whatever it was. Okay. Thats done laughter pursue just like the tunnel right. Do i do have nick you wanted to Say Something it this. Commissioners nicole with bosco i appreciate gridlock the analysis done by st. Josephs and his team it was a significant task and but i believe that document hopeful information about the state of the system and can provide in the event of the planned and unplanted outage and look forward to reviewing that as you may know bosco looks at this with the reliability they expect and plan to expect into the future and to me the question comes down to if it were to fail tomorrow before the action for the interviews that was taken for the repair work into the tunnel will 3 months be enough six months enough . I dont have the answer but steve and its team i appreciate that very much. Thank you. Okay. The last item in your report. Kathy how given an update on the hefts pour quarterly review. Kathy for infrastructure you know the report is selfexplanatory i wanted to point out that the last two projects for the emergency rock fall mitigation due to the rim fire is those projects are complete so pretty much most of the projects for in response to the rim fire are at completion and so were starting to close out a lot of the projects. Good i wanted to say that the highlights that was in the very front of report were very helpful i appreciate the way it was done. Are interest any questions. Yucca comment youve permitted daily on the multi projects i appreciate you do that that helps what they did in the r and r later on in the report it got less narrative and specific to the sub projects but. Were trying to put a little bit more explanation that is consistent with the reporting and the ss mp reporting. What was good about the r and r this project has citizen sub projects and the general codes and got into the level that you could form judgment it was helpful thank you. Thank you very much calling for Public Comment. Sorry once again i was pleased to see the process as defined report certainly the 95 percent for the motherinlaw and the and improvement and commissioner moran the r and r information i think i know thats been a struggle to try to find things that is coming a long way and looking forward to working with our staff the clarification of one the projects in the document awe duck is the subject of a dispute between puc and bosco this project is a historic joint with the waters as shown in the report i thought that was important to comment to you thank you that concludes my report. Okay were going to take an 8 minute recess. As i say recess is over. Okay we are now at the calendars. Item 10 the consent 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 unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar paragraph modification to contract increasing the amount by 6 hundred plus of 9 and b accept the contracts number prove the modification decreases is memorandum by 7 hundred and of 8 thousand plus with a time of 60 consecutive days. Would anybody want any of the items remove. To the public any items changed i have a motion. So i. Opposed . That motion carries next item, please. The 11 for the helpfully proposed psychologically and schedule for reduce the for fiscal year 2030, 2024, 2020 a ill ask a question i was trying to figure out what this was about and it was really hard until i got deep both it were only changing 3 projects of the appropriation level just a minute you dont have a microphone. Were trying to match it up with the 10 year capital plan in terms of funding as well on the projects so some of the projects have not received full funding so weve shown projects as their opportunity up to a particular phase up to planning phase or funded up to planning and design phase so this is what were trying to show to go back and clean it up and match that with the 10 year capital plan and also show and have you approve the schedule for mountain tunnel and the interim projects. The motherinlaw is the big part the rest well normally do that as part of project. Yes. Okay. The other thing i want to point out steve talked about mounting but ill touch open is to sub projections one the added assess improvements and we do plan on going out to bid this month for the addressed assess improvements and we are also looking at to hire an component with an existing contract with the inspection and repairs this will be happening this month as well one other project i want to point out it is called tesla valves replacement it is looking at surge analysis within the ability to some reason automatic shut to we may not have considered all the scenarios when the project criteria were for the test la review facilities were looking at the potential operating scenarios if there were a threat to the facility and the valves would automatically shut so were looking at the kind of surge to go to the valves out of the test la facility and into the san juan system. Thats more stakeholder ill move approval. Second. Ladies first. Future all in favor, say i. I. Opposed . That motion carries. Next item, please. Item 11 adapt the resolution for the xejs the Oversight Committee inform january one, 2019. Commissioners do you have any questions on this . Take a members of congress ill make a motion. Discussion on this. All in favor, say i. I. Public comment. I called for Public Comment a little bit late any any Public Comment on this item . Okay. Seeing none ill call for the all in favor, say i. I. Opposed . That motion carries well didnt call for Public Comment on 11. Nicole sorry. Nicole bosco i want to express my supports for the action and looking forward to doing that it is proven that having an adapted schedule that staff what follow and everyone tracks is an effective tool for this staff to get a project done i appreciate our efforts to do that so thank you. Thank you. Item 13. Item 13 authorize the establishment of a new commercial notes program not to exceed 90 million approval the credits in the principle unanimous not to exceed 90 millions and separate waekts with bank of america and saks fifth avenue and market for the agreements. Okay. Again ill ask do we need a presentation on this. I dont. No. Id like to move the item and second. Public comment on this all in favor, say i. I. Opposed . That motion carries. Next item, please. Item 14 authorize equipment lease Purchase Agreement with bank of america leasing not to exceed 4 million plus in new clean Renewable Energy bonds. Commissioners. Id like to move this item. Id like to second it. Do i have any Public Comment on item 14 all in favor, say i. I. Opposed . That motion carries next item, please. Item 15 authorize the memorandum of understanding with the north san mateo sanction district not to exceed 4 hundred thousand plus with a duration of 4 months with an additional amount not to exceed 200,000. Id like to move the item. Ill second. laughter . Somebody is laughing okay. Now we have Public Comment on this item. Very brief. Nicole with the bosco it clearly brings office the potential for the water to the system so for that i appreciate that. Good. Okay. Any further discussion ill call vote. All in favor, say i. I. Opposed . That motion carries next item, please. The contracts number increasing the contract by one Million Dollars plus with the time extension of 365 consecutive calendar days. Whos making the presentation. Do i have Public Comment on this item. If you stand up again laughter . Oh, okay. All in favor, say i. I. Opposed . That motion carries and the last item 17. Item 17 approve project infrastructure west side recycling project adapt the California Environmental quality act including a statement of overriding and mitigation and reporting program. I would like to good afternoon, commissioners kathy how i would like to add we probably want to slightly amend the second finding to follow what city plan as done theyve amend to include language on page thirty of the finding that basically says the wissop needs the customer supply a needs by providing retail and wholesale purposes from the sfpuc water shed and need to offset the remaining 20 m g d interest the recycle and ground water and the wholesale Service Areas through 2018 and thats the added language through 2018 and thats because the wissop Program Program had talked about the water supply planning through 2018 and so this would be in line with that. Yeah. It is consistent with their prior action. Yes. Okay. Furthers discussion . May i have a motion ill enthusiastically make a motion im good to see this moderating moving forward. Do i have on this item . All in favor, say i. I. Opposed . That motion carries so mr. Secretary if you could read the items for closed session for me. Yes item 20 will not be heard today and 21 is existing litigation city and county of San Francisco versus a son on and item 22 existing utilization for the property caution it property and items 23, 24, 20th century, 26, 27 and 28 and 29 will not be heard today. Very good may i have a motion whether or not to assert. Move t were going on we have returned from closed session and this is the name following closed session item 20 and items 23 there 29 were off the calendar item 21 no action and item 22 has been settle may i have a motion regarding whether or not to disclosure and move not to all in favor, say i. I. Opposed . That motion carries other new business . Seeing none, this meeting is adjourned at