doris day. >> thank you.

i did not see the news on the agenda that solar power in san francisco is on hold indefinitely. we are not doing more solar projects because as the commissioners might be aware, a decision that the city made in a labor dispute led to the community organizing and shutting down the reservoir solar project last week. after that happened, you would be happy to know that your staff moved swiftly to work with the san francisco examiner to try to get not only the hunters point community folks back on the job, but they went back to work on thursday and the final five community hires went back to work. the bad news is that because of the office of labor enforcement

taking sides in the labor dispute, something that the community groups have not done and we have asked the city cannot do, it has had major repercussions. as of friday i think that the crew members have said that they will not have these issues again with community. workers are at odds with who is working on solar. community of -- obviously has a hand. high-paying, union jobs is what we want. there are no solar panels coming to a city hall. dozens of community members are in front of the mayor's office right now, asking him to exercise his ability and have the city remove itself from being in the middle of a serious dispute about the future of solar power. we all want to work, we all want

to work together. we feel that there are issues between the labor union and electricians' union. it seems that there is a role to play but the city has precluded the ability for it to work because we have had great difficulty working through the union's. as i said, you should know this. great guidance and assistance has been received from the general manager in this process. we think he has an important hand to play. we would like you to explore all of the facets of this information. this is very serious. dozens of folks are camped out in front of the mayor's office right now, saying that every day that this decision is out there and is not rescinded by the mayor or the general manager, there is a sense that they feel

threatened that this could happen again for the next few months on the job. thank you. >> any further public comment? seeing no one, we will go back. >> as i have said before, commissioners have received electronic copies of all communications sent to them. >> all right. seeing no one. >> does the advance calendar commissioner have any questions? >> i have some notations. however, as i was absent at the last meeting, prior to that i was hoping to get on the agenda after the meeting.

i will add that at the end of this meeting so as not to take the time of my colleagues. >> regarding staff reports, alternate water supplies are being drafted with new information. that report, listed as having gone out, the commissioners have received copies. >> all right. alex? anything? >> are these going to be reported upon? >> what we have been trying to do, since the commissioner calendars keep getting more crowded we are trying to write reports with impressions on the commission followed up in writing. if you have concerns about that we can go ahead and do an oral report. we realize we were going along.

we can talk about them now, but if you would like a further discussion of many of them they can be put on a future calendar. >> i wanted to walk through the quarterly audit. i am not terribly clear on every item. >> all right. >> maybe we should start at the top. and if that does not work, we will try something else. >> i think that it does focus the question and gets right down to it. >> i had two of particular questions. had we received anything yet on

the guidance from allocation of supplies? the other question was we have an obligation to come up with a schedule for the surcharge. i was wondering what the process is and what the thinking is in the developing of that. is that an item that we just need to come back to talk about later? >> on the two questions, the first wondering if we have received anything from moscow, we have not. you can ask directly but i understand that we will be receiving some information. not necessarily a recommendation, but something that will assist the commission in making that decision.

on the surcharge, that is something that is supposed to be established in the next week, setting up a process that will be in the spring of next year and towards the end of this calendar year with information relative to how the environment will have a surcharge established. >> i was actually a bit confused by that. the agreement comes earlier, does it not? we were supposed to do something by the end of the year? >> i have not got it in front of me, but that would definitely be, if not discussed, put up before the end of the calendar year. there is a table attached to the memo that has a number of the

upcoming activities. reference by section 004, submitting legislation to the board to create a reserve funds as happened earlier. we will check the exact details in the agreement. >> my guess is that that is something that might engender discussion that the commission. before we get hot and heavy with it. >> we can do that. >> that section says we would be bringing it back? questions?

next. >> if you recall, several times the commissioner ran consolidated views. this was our first attempt to show that. i can attempt to answer any questions. is a general or specific >> i just wanted to walk through it. >> as you can see on the front side, we are very busy with our auditing. we try to make it clear based on the performance and oversight through the revenue bond committee. on the front side you can see

the completed audits we have gotten through. down below that you will see the ones that are currently under way. again, quite a few in the cities service section. >> is the performance internal? >> they are mostly internal, but not necessarily within the puc. on the backside you will see the upcoming audits, which are two of the single outstanding audits we are gearing up for. >> this gives you the broad view of the credit and who is doing the audits. essentially as we start to plan in the future we start to plan and see these topics recovering

and even see topics that are concerned that we are in a covering. >> i think of the feedback that we would like from you folks is that this is giving a sense of the audits that are out there. are we seeing what you would like to see in terms of the completed audit? is it sufficient for explanation? >> on the page with the memo, you speak of office. it is a busy time. and that you will be doing internal controls at that time? >> we will begin a fan -- financial audit by the end of june. we do have several internal control audits. those are run through the assurance and control group, which is not located within financial services directly.

there are outside resources that can be dedicated to those. >> the other reason for mentioning that, if you look at the progress in the scope you will notice that the first one goes through june of 2010. the next one is 2010. the next one is july, 2010, august and september. those are all coming due in the next few months. >> all right. thank you for clarifying. >> i had a couple of questions on that. csa, who are they? >> from the comptroller's office, the city service auditor. there is a portion of the budget set aside every year mostly for internal audits. >> when it says that it is being

by -- being done by them, are they what outfit? >> they are a division of the comptroller's office. >> i knew that we did that and i was trying to reroute to csa was. this is an inventory of what is in place? i was wondering what the process was. is this something that was created where someone sits down to see what it needs to be? >> one of the new groups that we created about one year ago was a compliance and assurance group. they were taking care of all of the auditors coming in. also, we pay the cities service auditor 2/10 of 1% of our budget every year. frankly, they were backed up. many of the audits that we

wanted to do were not being done. so, one of the jobs of that group is to stress the schedule out. cuas they start to get scheduled to make sure they are having a we need. we made sure that they had a process in place, the process being wastewater in place being consistent with other parts of the organization. highlights on the side show where they have recommendations. for example, green color coding is very benign. that is what you have there, to give us an idea of which ones are problematic. but it is to give you the idea of which ones are being spent well.

so, it was really set up to say what is out there that we are spending money on? what needs to be audited? if the cities service auditor could not do, it would go to another agency. for example, occurred came in to look of the contracts. he used to be the state auditor general. he had his own firm 10 years ago. this is one of the confirmed firms that we can contract for. we are trying different ways to make sure that it's done. >> in identifying the holes that might exist, is that a part of the auditing section that does that kind of review? >> . -- >> yes. that is the job of nancy and todd. they say that if that is all done, what are the potential

issues coming up? what kinds of things are still issues and how do we address them? >> we have a lot of ongoing physical inventory audits going on right now. literally counting cars and supplies. matching that against the inventory, noting where there are potential deficiencies. >> i look through that. that was very helpful and organized in terms of what is coming up. it looked as though there was an awful lot of stuff that you would expect to be there in terms of auditing areas that are interesting. that kind of thing. along with the water supply agreements, compliance audits and all of that, which we should

expect. h r c issues things that i would think of as targets of opportunity, wanting to assure yourself they were going on. it did look as though a good deal of that housing was focused on specific projects and how they worked out. some of the auditing directed towards the underlying systems. one thing that i notice was not on the list but is planned, the reconvening of a character group on a periodic basis to look at some of those larger issues. i think it would be a complete picture of it were folded in. >> is under review. >> right.

this sense as far as the monetizing, is the sense that you got it pretty much right? that it is appropriate to that? or is or is it a work in process? >> we started out doing audits of the planning effort. now we are doing audits of individual contracts to make sure they are being managed well. the assumption is that if we are not, it has to be a fee that needs to be changed to manage the others. you find out not just by looking at procedures, you look at something that worked on a certain project and expanding. one of the ones you will see upcoming this contractor performance. beverly is looking at the larger view of a contractor working and if we have enough measures to evaluate if they did a good job or not. are all of the things in place?

we are trying a mixed reviews to see if they work. >> there is the developing of the metric. >> right. >> additional audits are coming out of the bottom in terms of spending in the finance and county perspective. >> the committee is now starting to have real money after getting these large revenue bonds. and >> not a including the latest sale they had half a billion dollars. but it looked like they were over some of the initial startup that they had to go through. >> i think so.

they also tend to hire outside firms to do it so that there is no entanglement. twisting not because we control any of that but to make sure that we are not overlapping unintentionally. >> thank you. that is helpful. >> when we pulled this summary together we wanted to make sure they work together as well. >> thank you. >> but [unintelligible] >> the administrative code requires that we audit all the contracts that are not over a certain dollar value every couple of years. those are code requirements by

and large required by preparing principles and wholesale trade agreements. compliance audits for certain things and written requirements of contracts with performance ones that tend to be judgmental. initiated by s, what we do is we sit down with the cities service auditing group to go through what we would like to see, they go through what they would like to see. coming out in other parts of the city they see issues with inventories and reports, they think that we do a better and i would like to audit hours if it is a good model for others. >> that was my second question with information and how it is disseminated. >> once completed and we have the auditing findings and

actions taken care of. i believe that you all get a copies of the audits as they are written. in some cases they suggest that we do better training. typically they go with the audits themselves. they are sent to the comptroller's office, the library, the board of supervisors, and others, unless there is an issue that talks about additional staff training and development. >> for the financial service related audits we do man -- we to make sure that they land on someone's plate. >> particularly with regards as to how it informs other agencies. >> city services auditor comes back every seven months for one year -- every six months for one

year to make sure they do what you say you're going to do. >> the commission, at the time we are spending money at this phenomenal rate, one of our obligations is to provide some form of oversight. there is only so much of that that people can do each month. given our particular skills that, there is something that we can do better than others. the only way that we can assure ourselves that there is an objective party view of things is to discharge the oversight responsibilities and make sure that there is a program like this in place. while it seems like there are a lot of people looking over the shoulders of others, that is a good thing. just on the stuff where we need to make sure that the procedures have complete oversight. i appreciate your doing that in

it is an aggressive sentiment with people getting the feeling that they are living in a fishbowl, given the amount of money. >> i think that what impressed me was that this was a lot. when you look at them one off you get engrossed in what to looking at. it is a lot of bottoming going on. >> charles, i would like to echo my colleagues, this was a helpful tool. we can all improve on what we do every day, this has been a real firsthand look from the man that came from the comptroller's office. and how important it is for transparency. >> again, if there is more

information that this summary does not provide, please give us at feedback. if we can help to make things easier in terms of follow-up on all of those issues you raised, we would be happy to address that in another way. ->> thinking about the community benefits program, thinking about performance monitoring and measuring successful programs, it would be great to be able to tap into that accessibility. >> have we inc. from the independent study that was made? >> we have been doing that without focusing -- on the bond based group in this parts of the world.

this review