yosemite national park is closed in the valley right now because of the storms that occurred over the weekend. there is a lot happening up country and a lot of water that has come through and a lot of snow pack there. the beneficiary for us as we have been able to generate a lot of extra hydropower. additionally, at the local reservoirs, we will be getting a lot of releases from both lower crystal springs and calaveras. they are getting above the levels they should be at for this time of year. we have plenty of water to deal with. as i reminded staff, on july 1st, it starts all over again. having a good year is one thing but it does not save you in the long term. president vietor: are their financial implications? >> we don't have any use for the

water in terms of the system. generic hydropower, it's just going down the river. the last number i saw was a couple of weeks ago with an excess of 11 million. president vietor: that's good news. thank you. >> other items of interest we thought we would list on the calendar. first, solar installation work update. there have been questions about the different projects on hold or not. >> thank you. as you know, we have had one project that was a bit and not awarded which has been in a bed of limbo. that is the project to put solar on the roof at city hall and solar on the roof at davies symphony hall. we put that out as one big item. the work in wages is subject to regulation and oversight by the california department of

industrial relations and subdivisions within that department. specifically, division of apprenticeship standards and the division of labor statistics and research. the division of apprenticeship standards recently released new apprenticeships guidelines that recognize a new occupation fatah vo-tech installer as a craft and new apprenticeships opportunity. that was announced last week and we have been trying to collect information and better understand how it affects our projects. what i can report to you so far is that it is generally a positive good first-that will help the city help californians build a future work force for the photovoltaic industry, but it's just a first that. we sat down with members of the division of apprenticeship standards. just this morning, to understand what the going forward steps

are. they indicated to us that they have received from unions and trade associations applications for apprenticeships programs. seven distinct applications have been submitted and they are anticipating one more. it will take between six months to one and half years to approve these programs for this new classification. between the six months to one- and-a-half years before there would be anyone to employ at a job site under this new occupation. out of the seven applications to establish this new program, three applicants would be establishing apprenticeship programs here in northern california. electrical workers, abc golden gate chapter, a non-union association, and the northern california glaciers have all submitted applications. they are anticipating an eighth

application, overall a fourth that would be able to do work in northern california from the roofers. that means that until these apprenticeship programs are improved by it -- are approved by the states, the local contractors and unions cannot use this photovoltaic installer for the city's near term solar projects. the recognition of the new craft, this new occupation, does not include the setting of rates for wages and benefits for that occupation. that is a separate staff that a different part of industrial relations is responsible for -- that's the division of labor statistics and research. we understand that group may or may not issue separate prevailing wage setting actions. if they do, it will happen all along that same basic time frame. up to two years, they indicated.

for our projects, that means the existing wage guidelines provided by the division of labor statistics and research will continue until this new craft is approved and any new wages are set. we were hoping that that action would presents an opportunity to renew the dialogue on city hall and the davies solar project. we would like to go forward with say rebid to capture the hiring ordnance those projects could present to us. there are relatively small from the work hours perspective. the total projected hours are about 2485. the projected total cost for that labor is about 133,000.

for those two projects, we had said not to exceed a bid price of $4 million. the one bid we did receive but did not act on was in the $2.7 million range. that gives a sense of how much labor is associated with that total contract. but we do think it is a good opportunity to try to capture some of the higher ordnance requirements on a solar project. as i mentioned, we talked with some stakeholders' about what the meaning of this new finding from the state agencies is. we have talked with the state agencies itself -- themselves. it would also be constructive to talk to the labor folks involved. we have not had that opportunity yet. but it is time for us to issue the new bid. it won't present an opportunity

to bring photovoltaic on to the job site, but that will take some time, perhaps up to one and a half years. with that, i'm happy to take any questions. >> the discussion was we put these contracts on hold -- we were hoping there would be more clarification that would involve some of that jurisdiction issues but that does not seem to be forthcoming. the choice is simply to put things on hold forever or to go ahead with a local hire ordnance and at least have that part in place. to see how people could work out who does the work within san francisco. but it does not seem like us waiting longer would make that particularly clear in the near future. but i would love to hear any thoughts you have. president vietor: i'm still a little confused.

a local hire ordnance, if we took that route, would work be able to begin or would we need to wait for the state to clarify the job issue? >> the clarification we got, this new apprenticeships opportunity indicates there will be a higher opportunity down the road at some point. it does not clarify or change any of the existing prevailing wage ruling from the division of labor standards and statistics. we would have the opportunity to capture the local hire requirement, but that does not mean all of the other issues that were raised in concern within the community are gone. that is part of the reason why we are recommending further dialogue with community members and we will continue to speak with committee members. we met as a city family, if you will, with the state folks and

we would like to sit down with the labor folks to salike it's e forward, putting this in the context of the other works the puc is doing. president vietor: best case scenario, when it we get moving? >> we could issue a bid package this month and it would go to the standard bid package process. because our solar projects are done as design build, the first stretch of months for these projects will be designed and you won't see any construction occur. because davies has unique acoustic concerns, there's a very narrow window for performing construction and we would probably have to wait until the next october, not this coming, but the following october to do the construction work at that site at the earliest.

commissioner courtney: with respect to davies and what was the other location? >> city hall. commissioner courtney: when the design phase is completed and workers are arriving at the job site, do you have any estimation about not what classification, but how many workers, how many jobs for each site? >> i can give you a general sense of what we thought after we talked with the most attractive better out of the process that resulted in no award. when we sat down and looked at the tasks, look-alike -- that's the question you are asking? commissioner courtney: the total

number of people. >> yes. it looks like it would be around 30. commissioner courtney: and any time from a few weeks to a month and a half? >> the total number was -- commissioner courtney: if there are 60 of them on the two sides, that's less than 40 hours per person. vice president moran: i just wanted general understanding of what you consider -- let's say the work goes out to bid a immediately. what different process these would you be going through in your this time verses the last time or would it be the exact same process?

>> we issued the bid. we take questions from the bid community. we usually do a job site visit. we go to all the same steps we typically do when we issue a contract. we produce written questions and answers from the pre-bid conference from the job site visit and we receive the bid from a pool of qualified bidders. those are evaluated based on the performance criteria and the contract. then we come to the commission with a recommendation on who should be awarded the contract. >> in that process, we would work with the office of economic workforce development tool put together with hiring plan would be and they would help and assist us in that generation of local jobs since we have a local hire ordinance, but also, who

would be working in those different jobs and in which classifications. we would be using their good graces and their office to try to put together with the plan would be for the workers. president vietor: so do we have a decision to make? >> let's just say we would start the process again because there is nothing on the horizon that seems to be worth waiting for because nothing would clarify this in a near future. we would either leave this on hold or start down the path again and try to work through those issues again in terms of who does what kind of work. this is somewhat different from the sun set solar discussion because it's smaller and it's also on rooftops, so there are other unions involved like rivers that were not involved last time. president vietor: and it would

not be a power purchase set up? >> it would not, but there would be issues between different unions that believe they have jurisdiction over the work and that we have to work out differently and better before. president vietor: when would we hear more about those issues? up points a week to be ready to respond? >> as soon as we are hearing if there are concerns being expressed, we will share them. when we typically hear those sorts of things is with a pre- bid conference when contractors ask questions and union reps have expressed some views as well. it is a good opportunity because it is a cost-free opportunity for us. we did not award this contract. it has expired and we can reissue this contract -- sort of a no harm, no foul situation. we have the design phase complete for the chinatown

public health center and the muni would coach facility. we will come back to you with information on the project -- and the progress with those projects because they will be under construction soon. president vietor: have there been issues in relation to those projects? >> the same sorts of labor concerns have been expressed. we have the awarded contractor, they have expressed in writing and interest to comply with our local hire ordinance on their own with no enforcement ability on our part to step up and make every effort. they are working with the two units -- the two unions their signatories with and -- the electrical and labor unions.

>> is there any advantage at all to delaying? >> on the city hall and davies? we are delaying a so far and could continue to do that. we are delaying hoping there would be some answer forthcoming on jurisdictional issues. since they have not been forthcoming, there have been a variety of folks -- should be trying to get those jobs out there and organize the discussion, don't just stop everything waiting for a decision. that's why we were suggesting going forward. if we are going to delay, the only other thing would be is to take the money out of the budget for that and use it for something else. we could use of for something to create jobs now because she don't just want it sitting there. there is no specific date of this month or next month that makes a difference. even if we started now, the work on davy's probably would not

happen for a year-and-a-half. so there's no harm in making a decision now, but there's also nothing we are waiting for that will make it clearer. president vietor: it's like if there is no objection, we should proceed, but if you could make sure to communicate with us on a regular basis as to any community concerns that arise, particularly as it relates to the labor issues, we would very much appreciate that. >> at a minimum, it will come back to you before we award it. nothing will come back to you until then. commissioner caen: 2 what union do the solar labor folks along? >> and received applications from numerous unions. that particular occupation could be affiliated with electrical,

roofing, different crafts. the graduation prospect for those apprentices would be to then mature into the journey level positions within the program they affiliate themselves with. if you aspire to be an electrical worker and began this apprenticeship program under the installer occupation, you would be setting yourself up to become an electrician within that union. if you chose to affiliate with the roofers version of this apprenticeship program, you would be graduating in to a union referred job. >> the symbolic importance of that is it does not seem any one union owns photovoltaic work. >> certainly for the smaller

projects, that is what the state staff told us. president vietor: it seems like there's an opportunity to emerging, and i don't know lot about this, but there might be a new union formed around pv in dollars because of the rapid growth in this field. is that right? >> what state staff told us today is that for larger projects, they don't see the apprentice maturing into a solar-specific trade or craft. it -- you sort of mature into getting more specific on a ground-mounted solar project in the desert. they expect all the different trades to be represented on those job sites, all performing their traditional scopes of work. just because the projects are so large. they said that they see this pv

installing occupation to be more on a rooftop, 250 kilowatts or smaller. it would not of its own become a full separate trade. president vietor: anything else? >> we will issue it, come back to the commission and if we hear anything, we will come back before we award it. the next item -- we had a legislative update scheduled for today. originally, because of what is happening in washington d.c., we are rearranging that, but i want to give you a brief update. >> i'm the assistant general manager for assistant affairs. since i will be coming back to you next month, i will be broad strokes about what we are hearing about what's happening in washington d.c. because there are questions about how much we're tracking and what is

happening. the bad news is there are no earmarks and it looks like significantly reduced programmatic spending. i have been having conversations with our federal lobbyist and he has been able to frame things in a positive light, saying thepuc does not go after a lot of earmarked or programmatic support at the federal levels. so the overall implications are minimal because we don't accept that type of money. the fiscal year for 2011 began some timber first, 2010. since that time, none of the 12 annual appropriations bills have been able to be passed through congress. instead, the government has been operating on a series of continuing resolutions. there have been four to date. typically, the continuing resolutions continue spending at

the prior year levels. this year has been different in that two of the for continuing resolutions included significant budget cuts. 14 $6 billion and another for $4 billion. what we are hearing is that the senate will shortly pass the continuing resolution to keep the government funded through april. at some point, the house and senate will be able to pass a resolution on a spending bill that would run through september 30th. conversations are already happening at the house level with regard to advancing the proposed budget for 2012. our lobbyist expects further cuts in spending and that could include cuts to defense spending and changes to the tax code as well as changes to entitlement programs. but again, as far as implications they're seeing for the puc, they think we should be watching -- some of them will be

going to that d.c. area to meet with our bay area folks as well as the department's we interface with most like epa and others. when we come back at the end of april, we will have a better sense of what we're hearing directly from the departments in d.c. and our legislative allies and be able to report back what we're seeing at the state level because that will be progressing quicker at that point as well as with some of our -- as well as what some of our priorities are at the local level as well as policies to partner with the board of supervisors to move to. president vietor: i have one request for next month's update and that would be on the redevelopment agency situation, specifically as it relates to the puc's projects and what that might mean. >> in line with that, we are

scheduling a discussion of treasure island of this commission meeting and we are asked to postpone that because of the uncertainty with redevelopment. >> we could have available frank blackwell who heads of the redevelopment agency because he is tracking what the implications would be. >> are you referencing the redevelopment legislation? >> yes. >> specifically for san francisco and puc plans. >> i don't think we're going to see a compromise soon. i anticipate as having a special election in june.

governor has been working so hard to get more republicans on board and has been unsuccessful. this weekend's republican convention was like a salem witch trial for anyone who seeks to even have the people vote on a tax, a potential tax increase. the governor is not even proposing a tax increase, he is committing to his promise to put the issue before the people and let the people decide. the republicans will even let him do that. we're going to be a tremendous impasse and i don't know if the city's are going to be a to compromise on this issue soon. >> from a strictly puc perspective, we're not affected directly but we have customers at the shipyard and customers that treasure island who are greatly impacted by it. how we grow or don't grow in those areas and items that would

have to come to this commission that lead to those things are of great interest to us. >> have we provided a series of memorandums on the completed abolition and what our responsibilities are? >> we have not. we can look at that. >> we have been in consistent contact with the redevelopment agency's about tracking them irregularly. commissioner torres: if none of this occurs and the legislature moves forward with the governor -- >> there are a few scenarios we would love to brief you on. we don't know of the mayor's office is ready to announce. president vietor: it we biggest -- it would be good to calendar this. i do think it's very important to figure out what the implications are going to be with the abolition.

if there is and abolishment and what we do want to produce a series of memos and what that look-alike. not only other relates to treasure island and hunters point, but with other land parcels. that might have implications as well call what's going to happen to the land that the development of an -- is there a possibility that puc or other departments might be asked to step up? there might be other implications we don't know about. thank you. >> the next item, commissioners, if you recall, when we were talking about management, we were putting a variety of things in place if there were problems on the construction sites. commissioner moran asked if we could make a case study and how we respond if you could get a sense for how the process works.

>> good afternoon, commissioners. before i get into the presentation, i wanted to give you an advanced notice that i will be seeking your approval in april for changes that will exceed 10% on four of our contracts. we are required to do so whenever cumulative changes on a construction contract exceed 10% of the original contract value or duration. three of those contracts are in the san joaquin valley and those make it challenging to make it -- to make it stay within those 10% limits. the total changes on all four contracts will be in the range of 3 million dollars to $3.5 million, so in the scheme of things, not incredibly large. there'll be schedule delays i

will be seeking your approval for. the one good news is three of these four contracts are more than 95% complete. that should be the end of it. the fourth contract is to the% complete. to be followed up in april. with that, mr. secretary, if you would not mind turning on the computer. as the general manager indicated, this is in response to a request where we were to share with you an example of a situation where various elements of our program are to be used to resolve a challenging issue in the field. this is a case study associated with the alameda site and number four project. here with us today is eric, the construction manager on this project, and he has been doing a remarkable job