it because of the snow. we had a tree cut down, it went down at 10:00 at night. it trick off our units. we were able to reroute the power for a couple of hours. making sure that none of the trees fall back into the yard again. it happened in the middle of the night. what happens down in the bay area, it did rain quite a bit. we had about an inch and a half or 2 inches. i wanted to show you the new system that we have, something that we call storm watch.

the green dots are calls we have received, and we have no information on the ground. somebody has called and said there is flooding. the orange dots are things we have assigned another priority to. we also sort of have the traffic disruptions. that was interesting. what we're really concerned is the red triangles. they have some other class's, one notably that the crew has responded to. the of the thing about the

system is that if you come today, we don't have any green dots. we can clear the base, we can secure the site, we have a crew going to the store because it is collapsed. we are able to respond and keep track. this is called a storm watch. we have it in place any time a storm is on the horizon. we work with the department of public works to be able to respond to citizens' request. now we have the outlook for next weekend. the crew will be on standby. hopefully, we won't run into as many instances as we did over the last storm. this is pretty typical of what

we see. -did you say that this dtw shares the same system? >> we have the inner city command structure. they're the one calling for resources until it enters private property. and we take over on that particular site. we have the bureau of street and sewer repair. >> i received some calls regarding vernal heights.

>> we were working there? we might have had a main site. it is not showing up based on storm watch. we actually have those -- >> it looks like muddy water. >> we have those as well. >> the water is under pressure, so water is just flowing. i wanted to give you an update on the local hire ordinance. this introduces legislation

related to this. the local hire ordinance that was adopted by the board of supervisors goes into effect for any project after march 25. we're working on the rules and regulations that will accompany that. if it happens after march 25, we will see the awards for several months later. you should be starting with the goal of 20%, and that should grow about 5% a year until about 50%. the first way you comply with that is by having every trade have 20% of the people working that many hours. about half of those should be disadvantaged. there are other ways that you

can meet this goal. one is by working with work- force development so that next time, it is more than you can have. another way is a specialty trade. it really is almost impossible to get local people to be employees that can work on some of those traits. you can get credit in some instances for hiring people on the non-city jobs. you can get some credit for that. we haven't quite worked that out yet in terms of how that works for them. incentives and penalties that are called for, those are asked to be looked at. one of the things that is lost on many people, in working with

the board of supervisors, there were a number of instances where we thought that something could cause a problem. the work with us to really try to make sure that it is x -- as successful as possible. one is that any project, [unintelligible] for the water system improvement program, they have accepted it. there was conversation about whether this would apply to projects that are part of a water system improvement project. it does not apply to projects where there is federal and state money. you can apply it to the local side, but not the federal and state. it also only applies to the share that we pay for.

again, that was put in their for the work with the wholesale customers. about 2/3 of the water, 1/3 is paid for. we would only apply this to the ones that we pay for. if there was a project next month, we would get about one employee for every 15. it would be 20% to our 1/3 of the project. when it gets fully loaded, it will be about one in six. i don't think it was intended to cause problems for our customers, but we wanted to make sure that you were aware that it

only applies to a certain part of it. another area says if there is a project more than 70 miles from the city, the definition of local is expanded to meet either local to san francisco or a person that lives or works in the region where the project will take place. that means it would be open to people living and working in that area. it is the same 20% growing to 50%. this means the single biggest part is the source system. so much is paid for by the people of san francisco. that is pretty much all of the source system improvement projects. over the next 10 years, looking

at the city capital program, they assumed about 40% of the funds will be puc projects. that is why we are working on it right now. we are working to make sure that we have the legislation, the rules, and the procedures in place to take care of it. we also have people working on the working groups. we're also trying to make sure that it doesn't add an additional cost. we already have some fairly onerous types of positions in working with the human rights commissions. they're working with our department to give us that information. this simply gets incorporated into that.

everybody in the city will share that as opposed to adding to that. we are trying to use this as a way to streamline the contract as opposed to add more. we want to continue [unintelligible] but also getting into the goal of having local people for the project. we want to make sure they are aware of this. we have people here that are expert in this. we will answer any questions that you have. >> will this be achievable? >> the problem has been when we

say that you must use locals. it is hard to get companies in san francisco to do a project. the whole of larger area makes it much easier. that is one of the issues we will have to come across. sometimes it will be easier for others to meet these requirements. it has been a fairly good local source of higher. -- hire. >> they have indicated with this legislation that he wants to limit any implementation of projects here in the city if they have state funds. what is our response going to be with that? >> we have exempted the federal

under his legislation? >> very little would be affected in the legislation because we are not doing the things he believes we are doing. >> have we communicated with jerry? >> yes, and we communicated with staff before he introduced the legislation. >> did not do any good? >> no. in fairness, there are some projects that would be different. the demolition of the old jail would fall under this. again, if that happened in the next year, it would be asking san franciscans to have one out of every 15 jobs. that does not seem to be owners. most of the jobs of funded by the federal government and most are covered by a profit labor agreement, so they would be exempted, but some would be covered by this. the coverage is important, but it is not overwhelming.

>> is our position going to be neutral? it does not have an impact as much on us, but maybe of the departments? >> part of it, too, is that other places in the state have local hire ordinances, and we generally do not think you should be trying to apply this one size fits all blanket prohibition. that concludes the report. >> any public comment? >> my name is espanola jackson again. there is a lot of confusion concerning local hiring. i would like the state -- the reason this came about is because of the fact that my husband -- he was an electrician, and he worked for hetch hetchy. this was in the 1960's, but he was unable to join the union

because the books were closed to minorities at that time. we have been following what has been going on in san francisco since redevelopment came in as good faith effort. we have had the faith in san francisco, but there has not been an effort to hire people that live here in san francisco. a statement has been made -- this is the reason why i say it is very important that you have your representatives at that meeting tomorrow because the statement that was made about federal contracts -- it has been on the books since 1958 to deal with local hiring, and guess what? nobody seems to know anything about it. this is the reason why -- and the name that wanted to say that said they were not coming is a city built -- is citybuild.

i not see anywhere where you city agencies are talking about including in this the cbo's in the community where the people go to those agencies for jobs. why should people, all the way from other communities to work at city hall when they can do that in the community what they have been doing. i am tired of the duplication. we are paying hundreds of thousands of dollars for people to sit up here at city hall, but we are only giving a little bit to the community. this has to stop. dpw -- i was at a meeting and human rights the other night, and they said the contracts they did before the 25th comes to not apply. yes, it does apply. that is the reason why you need to have people at that meeting tomorrow to get the information. because the federal government

has on its books section 3, and i think it might be in the package you have got there. that is the section about local hiring. but, you know, people turn their heads. i have problems with these compliance officers that are supposed to be doing a job for the people in san francisco, and they are not doing it. i want to know -- are they certified? if not come get them certified. get them to do the job they're supposed to be doing, the money they are making. the shares they are sitting on are the ones i have paid for here at city hall. thank you. >> to clarify -- one reason the federal government was exempted from this is because it has its own set of requirements that have been in existence. >> thank you. any other comments? if not, please call the next item. >> next item would be the report of the general manager.

>> thank you, mr. vice- president. brief report today. first of all, we are going through our budgeting process for the coming fiscal year, trying to address in our own small way the financial stresses that our city has been under and the the others have been under as well. that is probably not news to you, but i want you to know that none of us are alone in this. the are all suffering together. we continue to pursue water supply of projects and water conservation programs we have initiated. that includes one we have just will -- we had just rolled out, paying people to remove their lawns and the landscape with something else. the landscaping community supports it. they get to do more work, which is a good thing, so we have had broad support, and a number of agencies already participating in it. beyond that, i think i will

conclude my remarks. i did take with interest your comments on a local hiring program. we did receive the letter theed harrington -- a letter from ed harrington. where are so looking at some of the issues to make sure we are well informed as well and can confirm the things that are in the letter. thank you. >> thank you. >> mr. president, we have no speaker cards on this item. >> thank you. next item. >> next item would be the san francisco public utilities commission citizens advisory committee that date. mr. kane and midwest will present in mr. landsbergis absence. -- mr. kane and ms. west will present. >> i expected someone else to

join me to give this report. i was just going to not accordingly. i do not know how much some of you members are acquainted with the cac. we generally try to make a contribution that has some substance to the commission. frankly, we could not do it without the support of the very able puc staff. but over the last few years, we have come up with a number of resolutions, which have filtered over to the commission, and i know it has been of some interest to the commission, the kind of work that we have done. i will try to be concise. the cac is made up of citizens chosen by a variety of ways. the mayor, the president of the board of supervisors, and

supervisors in their districts. they come from all walks of life, but there is a general professional expertise on the cac, and when they come up with a resolution, it is fairly well thought out, and with some degree of professional competence in behind it, so i would hope that in the future, when these kinds of resolutions come from the cac that you would consider them as having some substance. thank you very much for your time. i'm certainly available for any questions. >> thank you for doing what you do. >> indeed. i believe there is a reception this evening for the cac, and i would see you there. ok, mr. secretary, could you call the consent calendar? >> the next item would be the consent calendar. if you would allow me to briefly read the items, and if any commissioner wishes to remove an

item, they can do so. all matters listed hereunder constitute a consent calendar considered to be retained by the sentences the public utilities commission and will be acted upon by a single vote of the commission. b, accept work performed by cmc construction for water fund racked -- replacement contract. approve modification #1, or reconciling the final contract amount for materials is increasing the contract amount by $90 and of the rise final payment. >> does any commissioner was to

remove any item from the consent calendar? >> move it. >> second. >> all those in favor? >> opposed? >ok, the item passes. i do have to say that is probably the record for the lowest cost of contract amendment that we have ever process. >> [inaudible] >> but you have to do something to close it out anyway. thank you. >> the next item is to provide feedback during the presentation and discussion of some system improvement program proposed 10- year capital request and associated rate impacts. >> commissioners, if you recall, last meeting, we continued the item to adopt the 10-year sewer system master plan part of the 10-year capital program.

we wanted to have this discussion that was a more robust discussion today, and karen is here to have that discussion. >> good afternoon, commissioners. today, we will be discussing the sewer system improvement program. i have some replacement slides. i've been struggling with going paperless. i'm sorry. we were able to make the single digit street impact slides come together. history is such that the last major capitals programs for the waste water system started back in the 1970's, and that involves building our oceanside treatment plants and completing the transport boxes. since that program, we really have not had major upgrade programs to improve our existing facilities. originally, it was supposed to be part of towsip, but it was sacrificed -- part of wsip, but

it had to be sacrificed so the water program could move forward, and has been in limbo for some time now. today, i will be talking about the sewer system improvement program background and we will go over the 10-year capital improvement program that has been proposed for waste water. we will not be talking about are not today because that was talked about quite a bit during budget hearings, but the outcome we're seeking is to cover program for waste water so we can move forward, and to get your agreement that we can move forward with a program management contract for a 15- year duration, $150 million to support us as we develop the sewer system improvement program, validate the program, optimize, and have the expertise from around the world to support us in this program that really only comes around about every 40 or 50 years. with that, i'm going to go over some of the background on the

system, review a little bit about how the wastewater system works, and later on, we will be going over some of the programs we have analyzed to be responsive to the commission's request that we look at the cost of financing and project the rates into the future. we would like to get your input in terms of the size, rate impacts, and how we want to take this program as we move forward. the first slide -- just some background. this map shows the location of our treatment plants, and the major transport boxes that ring the city. we treat dry and wet weather flows at our ocean treatment plants, down on the west, and it is going to show up, and on the east side, the central east side, we have our southeast plants, where we also treat what weather and dry weather flows. to the north, we have the north point plant, and we treat exclusively wet weather flows

there. additionally, we are responsible for treatment and management of our treatment plants on washington island. in total, our system can treat 575 million gallons when we have a wet weather event. transport boxes provide additional storage for 200 million gallons worth of combined sewer and storm water so we can hold flows and convey them so they can be treated then at our waste water treatment plants. when we do treat waste water, it is treated at our treatment plants and discharged from no. 1 plant and southeast, it goes 800 feet out to the bay. on the west side, we discharge four miles offshore to the pacific ocean. the transport box is designed so that it also provides a basic level of treatment, so if the system is overwhelmed, we have permitted discharge. top of a lot about our struggles

and challenges, and we wanted to make sure that we stay on course today to really express the priority issues for the sewer system improvement program, and they are numerous. seismic reliability, eating infrastructure, maintaining permit compliance is a big one -- eating infrastructure. we have to make sure all our facilities can run at maximum during a wet weather even. -- e. jane -- aging infrastructure. we're already having issues with climate change. we are seeing salt water entering into our system now. there was some storm surge about five days ago, i guess that was. we had waves breaking over the embarcaderos sea wall. embarcaderos sea wall. it is going to get more