>> it is detailed in this sequel memo that goes into it in the context of ceqa. >> with this impact -- with this -- would this impact the drought? >> it could occur in other years. it is something we're taking seriously as to how we can best address the potential loss of water supply. >> we have to take care of our customers. >> our fish, too. [laughter] commissioner crowley: and do it on time and on budget. [laughter] we will not walk on water, but we will do a lot. colleagues?

we will now open it to public comment. >> i believe the first speaker cards submitted was mr. jensen. >> before i offer comments, i submit a letter noting some problems with the proposed resolution. ñ entertain a revised resolution based on our comments or anything else, it would be helpful for us to know what you are going to vote on before i make comments. i might like it. i might not. i would like to know what you are going to vote on first. commissioner crowley: before we doi that, i am going to entertain anyone else would like to make public comments. seeing and hearing none --

>> i am josh cooperman. i live downstream from the doam of the creek. i am the ratepayer to the commission. kery!móan account supervisor ine hillsborough district and serve on the advisory committee. i am a resident and and protected by the dam. i am here generally today not to alert you to some of the issues i have been dealing with since january of 2007 regarding new seismic studies of the dam, before spending up to $4 billion into the system. it is kind of like getting a second doctor's opinion. the initial eir submitted only had one sentence in several thousand pages on seismic

safety. it shirk that responsibility to the california division of safety. in my discussions with them, their staff indicated that dam safety is the responsibility of the owner and not merely the regulators. without budgets, they could not handle further studies. as you are probably aware, the last corigns were down in 1977. i believe a more comprehensive process is essential. because of the dire consequences of the dam failure to my property and my neighbors, the town of hillsborough, the downtown business corporation of san mateo, and the flat lands, the hillsborough city school district has 250 elementary school students that straddle the creek. there is a limited 30-day water supply in the event of a dam

failure. there would be consequential adverse impacts to water and sewer bonds on the peninsula and this agency. i respectfully request that steve ritchie's commitments made in a letter to the town of hillsborough be solidified and made part of your motion on this matter and be made a commitment of this body as well-wishers death. i do want to thank steve ritchie -- be made a commitment of his body as well as your staff. i do want to thank steve ritchie and others for their efforts in educating me on this essential effort, specifically to steve ritchie for his commitment to the town of hillsborough and the well-being of both the city and county of san francisco and the neighboring peninsula cities.

thank you very much for your time. [tone!] >> good morning. i am the town engineer for hillsborough. i would also like to thank the staff for meeting with the town and starting the process through which we will update the seismic analysis of the dam and also deal with a number of issues of coordination with the hillsborough school district, office of emergency services, and update some of the information in case of the dam failure. there is a letter from mr. steve ritchie and also a letter from the town to the commission that is referenced in the records of

the meeting. i am also handing out an additional copy of this bid request costing -- i am also handing out an additional copy. we are requesting that you include these. we are supporting the improvements outlined. we look forward to working with your staff to make this project happen. that is essentially my presentation. if you have any questions, i would be happy to answer them. commissioner crowley: thank you. any other public comments? [unintelligible] i was only now going to give you

one opportunity. [laughter] but the amendment to the resolution? commissioner crowley: we did have a discussion today with respect to the amendment and long negotiations with our organization. do you want it read into the record or would you like to respond first? >> if you could read into the record, then i could respond. >> these are staff-initiated proposed changes in the resolution. there should be copies out there. they are over on the table. if anyone wants to read along, there is an amendment to the whereas clause.

it begins, as a result of implementing a minimum release schedule to the creek in combination with the proposed greeks, the sfp may not be able to meet the water supply objectives between 2013 and 2018 without a reduction in demand, increased rationing, and for a supplemental water supply. the proposal is to add the following sentence. adopted with the deferred decision regarding long-term water supply after 2018 and 32030 until the sfpuc undertook further planning and analysis. it would be adopted -- if adopted, it is assumed this

commission would visit water supply again in 2018. the minimum release schedule on water supply issues are discussed in the memorandum dated august of 2010 and are included in the files for this project. effects of the possible change on water supply are also discussed in the variants chapter of the final eir. the second change would be in the causes of the proposed commission resolution. this is the resolved clause. it is further resolved that this commission directs staff to continue monitoring water supply and demand to determine whether the commission should consider other strategies to meet demand up to 2018. it adds the following language, to provide to this commission for consideration the interim supply allocation in december

of 2010 in accordance with the existing contractual obligations and provide information to the commission and the public by march 31, i sfpuc has the capability to attain the water supply levels of service and contractual obligations. there is an additional amendment that reads -- the commission does not authorize the general manager to deviate from water supply levels of service adopted, an sfpuc staff shall confer with the commission on adding language regarding additional water supply reliability strategies if conditions necessitate such strategies prior to 2018. i will not@3 read the part we ae deleting.

we can take public comment on this language if you decide to move these proposed staff amendments. commissioner crowley: i will entertain a motion. >> >> thank you. art jensen. there are a number of city and water agencies present this morning. the vice chair from lead with city wanted to be here but have a conflict as did the council member from east palo alto. the chair would want to be here, but he is out of town unfortunately. we did receive the documents before the commission for consideration. we did submit a letter expressing strong opposition. we have worked with your general

manager and staff to see if the issues to be resolved. i think there has been some success there. the proposed changes to the resolution deal with the most critical problems. if the commission were to adopt a new revised resolution, that would be an action that we would support. on remaining issues, we would work with your staff separately together the additional information we think is important for us to have. beyond that, i wanted to note and read for the record a sentence from our ledger. we recognize the help of fisheries is an important public policy concern. the concern is not about the releases themselves with the impact on water supplies and whether those will be mitigated. i think the revisions to your resolution set forth the timeframe that help address the issue. if you have any questions, i would be happy to answer them. commissioner crowley: thank you

so much for working so hard on this. any further public comments? counsel, we do have an amendment addressing the hillsborough issue. is it best to do that at this point in time? >> as i understood the request from the speaker, it was to incorporate the offers that steve ritchie made in the letter. the only concern i would have is that this not be considered as a condition of approval of the project. commissioner crowley: we could read the proposed amendment. >> the proposed amendment would read that the san francisco puc urges the general manager and

staff to proceed with due haste on the items outlined in steve ritchie's october 12 letter and report back to the commission on the implementation of those agreements made with the city of hillsborough. commissioner crowley: is that acceptable as a friendly amendment to incorporate? >> i think so. commissioner crowley: anything? >> can we add that in? >> it would be of further resolved. commissioner crowley: it can be done without further objection. i move to adopt item 12. the ayes have it. >> item 13 is discussion of possible action to improve -- approve the water project on the

tracy water treatment plant long-term improvements project, adopt the california water act findings, including the mitigation monitoring and reporting program and authorize the general manager to implement the project in compliance with the charter and applicable law and subject to board of supervisors approval where required. obtain from the california department of transportation san mateo county and city of san bruno permits. exercise any right under any easement,]umñ necessary tordúi negotiate and execute with owners of property or facilities adjacent to or in the vicinity of the right away this would include other

project-related agreements as necessary. this authorization includes the authority to execute -- exercise any rights under lease agreement from the city or county of san francisco and skyline stables corporation, including but not limited to the rights reserved to the city with respect to leased premisesjr to use, opera, maintain, expand, replace facilities as necessary to implement the project. the general manager may also in compliance with code undertake the process. the general manager is also authorized to negotiate and execute agreements with skyline, shareholders, and tenants as necessary to secure possession of property to expedite implementation of the project subject to board of supervisors approval is required.

any agreements must be consistent with puc policies and applicable laws. enter into agreements with state ó but not limited to u.s. army and wildlife service, national marine fisheries service, california fish and game, and bay area quality management district. they can enter into agreements with third parties as necessary. notwithstanding the authority granted to the general manager by the resolution, the general manager is not authorized to dispose of any real property in of the puc pursuant to the implementation will includei.ar

advertisements for contracts. >> the third project is the harry tracy water treatment plant. area of san mateo county near interstate 280. small portions of the site are within the city of millbrae. =-m the regional system. it provides treatment of the water stored in the peninsula reservoir. the plant was built in 1972. it was expanded later in 1987 and in 1992. the improvements will allow us ñbñe capacity of hundred 40 million gallons per day, even after a major seurq9 major components include upgrades throughout the entire plant. we will add five filters,

include handling system, and replace the components of the ozonation system. after following extensive seismic assessment, we made the decision to replace the two existing reservoirs with aú#:z w 11 million gallon reservoir. this ise it is one of our largest. if you approve it today, we will issue an mtp? in april of 2011. it will take four years to construct all of the improvements. it will be slated to be completed inl] 2015. implementation will require a termination of the lease with the skyline stables before it expires in 2014. the project eir did not find the

removal of the stable to be a significant impact because of to the watershed and within 35 miles of the existing site. to minimize the inconvenience to skyline stables and facilitate the timely transfer -- transition, staff has engaged in lease termination discussions with skyline stables over the last several months. upper management has also been involved closely negotiations oq agreement. qi am pleased to report that yesterday, puc and skyline reached an agreement in negotiate in good faith towards the finalizationéwx of the settlement agreement. that is all i have.

commissioner crowley: thank you very much. i invite any members of the public that wish to comment. >> we have one speaker card representing skyline stables. commissioner crowley: if you have your phone on, please turn it off. >> good morning. i am christine hanson, i am on the board of the nonprofit skyline located for over 60 years at the site of the now harry tracy water treatment plant. we have entered into good-faith negotiations with staff. p'we are hopeful that this will eventually lead to a new for the stables. this will require us to take a big leap of faith and clear the way for the water department's

well before our new home is ready. we have many hurdles but are willing to face the challenges as a group inwzwñ order to conte to provide low-cost cooperative stabling and our area, something that is unique. someday soon, you may be asked to consider issues that directly affect our future. at that time, we would like to remember our willingness to work towards a win-win solution for our group and the water needs of the community. i would like to thank you for 60 years full of wonderful memories. thank@3 you. speaker, please. >> i am going to comment on the last two items. i am going to focus on the areas where we contained our water and treat our water.

i want to link this with the u.s. geological service. i would prefer tojr see a review by experts from the agency. nihaving reviewed those comments in whatever way they give it to us, you have the heart and you have the wings. the heart. then you get a first opinion, a second opinion, a third opinion. when we have amendments of the last moment, it is processed. this is the city and county of san francisco. we have certain laws for transparency incorporate -- and

incorporating these amendments to those who will participate so second, they can check. thirdly, the to give qualified input -- they can give qualified input. not everybody has the ability to give qualified input at the last commissioners, you are fully aware that a lot of the deliberations on the bonds and how we spend our money are taken to certain bodies. i have known mr. jensen for a long time. he brings some qualified information here. he not only represents ha as general manager. he also worked diligently for us.

-- for the water apartment. this is the city and county of san francisco. it is not just the city of san francisco like the city of hillsborough. this is the city and county of san francisco. we need to get qualified input from the citizens. deliberations should not be done at the last moment. i know the matter will be revisited. i hope the commissioners here will be here for that so they do not have to reinvent the wheel and new commissioners be educated on this very vital issue. thank you very much. u=t[tone!] >>. jensart jensen. it is an important project.

i realize there have been tremendous challenges for staff and the community. i applaud the way your staff has applied itself to both of those. nvóit is a good project. i hope it moves forward. >> commissioners, now that we are towards the end of these three items, i wanted to make a couple of general statements. most agencies would be working hard to get one or two of these through in the year. !tntto think that we're running three eir's for the commission in one day is pretty stunning for most agencies to be able to do that. it does not just&2(t() magic. i want to thank the folks we have been working closely with that skyline stables and hillsborough. they have helped us out. they've come together to make sure this works. i appreciate that. i also want to thank the staff

and all the people who worked on thissc to put these projects together. that includes the city planning staff and the consultants. they made sure we have been burma to impact statements and reports that were appropriate, detailed, and complete to make this work. -- the environmental impact app. last but not least, steve ritchie, davewxgiñi briggs folko are operating the system and have done such a good job the believe they can still operate the system and make it work for all of our customers. oa!7?rwsóñiii want.

thank you for your consideration. it is a big day for the puc. we should not let that go by. thank you all. ifáe should give a round of applause to everyone on this day. [applause] >> there are some attorneys. no offense taken, but there have been in number of attorneys who have worked long hours with your these issues and bring the link the resolutions -- link --

hopefully, we will not be asked to do three of these in a row again. public comments? hearing and seeing none, i will the long- term improvements project. >> so moved. commissioner crowley:2" all thoe in favor, please signify. the ayes have it. so ordered. [applause] >> the only other item on calendar is if any commissioner has any new business item they may wish to bring up at this1:ki >> i do. i think we should all say "go, giants!" [applause] [laughter] commissioner crowley: that has been moved and seconded.