which they just built stairs, 2010, brand-new stairs, without a permit. their complaint is that it would be blocking that window. we are agreeing to push it in 3 feet to allow light and space, and also we are on the north side, so they would not be getting any sunlight from our side. commissioner fung: you're actually rebuilding the ground floor. >> pardon me? commissioner fung: your existing ground floor -- of, never mind. i understand what you are saying. >> we are pushing it out and pulling in the top level. commissioner fung: i understand. >> and the setback on his side, 3 feet on the upper level only. president goh: ok.

commissioner fung: is this the first time you've spoken today? >> second. if they are willing to offer 3 feet on the second of all, that is more than adequate to address the appellants concerns. i did discuss this with the design team, and they thought that the proposal is completely code compliance. no discretionary use filed by the appellant at this point to make changes. if the permit holder is willing to offer that, we would recommend they be that the board adopt the changes. -- that maybe the board adopt the changes. director goldstein: is there any public comment? ok, seeing none, commissioners, unless you have questions, the matter is submitted. commissioner fung: i attempted

to frame their ingratiation a little bit during our last discussion, and i noted that in order to compromise somewhat, it looks from the plan that the removal of the closet on that side which approximates a three- foot reduction was a starting point, at least in my opinion, recognizing that the appellant's building is much more extensively than other buildings in the area, and i am prepared to recommend that we have a setback of 3 feet on the second- floor, which would establish a development pattern for that

bombing and perhaps other buildings in the neighborhood that would be more sustainable. commissioner hwang: i agree with that. president goh: any further motions? commissioner fung: i am going to make a motion to grant the permit with a three-foot pop out on the second floor, and adjacent to the kwans' property, and is that we're to the department? is it clear to everyone else? >> it is clear. the last time. i am sorry. just guidance for us as to our next steps. do we have our architect to resubmit? >> -- commissioner fung:

resubmit, and it will go forward on that basis. >> ok. commissioner fung: you can also speak to senior inspector duffy. director goldstein: and you can also call the office. my name is john kwan, property. we see that there is the set back on both floors. why are we having only 3 feet? commissioner fung: we have already made our decision. president goh: it sounds like an

argument. commissioner fung: i am afraid we have already made our decision. >> i strongly disagree. commissioner fung: i understand that you disagree. secretary pacheco: your motion is to grant the permit with commodification and a three-foot setback for the extension be provided, which is adjacent to the appellants' property line. commissioner fung: that is correct. secretary pacheco: on that motion, vice president garcia, commissioner hwang -- commissioner hwang: i just want

to say that i would have voted for it without the modification. secretary pacheco: president goh. president goh: aye. item 12 was postponed. director

>> welcome to culture wire. we will look at the latest and greatest public art project. recently, the airport unveiled the new state of the art terminal. let's take a look. the new terminal service and american airlines and virgin america was designed by a world- renowned architecture's firm. originally built in 1954, the building underwent massive renovation to become the first registered terminal and one of the must modern and sustainable terminals and the united states.

the public art program continues its 30-year legacy of integrating art into the airport environment with the addition of five new commissions that are as bold and dynamic as the new building. >> this project was completed in record time, and we were able to integrate the artist's early enough in the process that they could work with the architect said that the work that is completed is the work that really helps complement and instill the space as opposed to being tucked away in a corner. >> be experience begins with the glass facades that was designed with over 120 laminated glass panels. it captures the experience of being under or over clouds when flying in a plane. depending on the distance or point of view, it can appear clear for more abstract and

atmospheric. the subtle colors change gradually depending on the light and the time of day. >> i wanted to create an art work that looks over time as well as working on in the first glance. the first time you come here, you may not see a. but you may be able to see one side over the other. it features a couple of suspended sculptures. each was created out of a series of flat plains run parallel to each other and constructed of steel tubing. >> it is made up of these strata. as the light starts to shift, there is a real sense that there is a dynamism. >> it gives the illusion that this cultures might be fragments

of a larger, mysterious mass. >> the environmental artwork livens it with color, light, and the movement. three large woven soldiers are suspended. these are activated by custom air flow program. >> i channeled air flow into each of these forms that makes it move ever so slightly. and it is beating like a heart. if-0 when as of the forces of nature moving around us every second. >> shadow patterns reflect the shapes of the hanging sculptures. the new terminal also features a children's play areas.

both of the market the exploratory n.y. -- exploratorium. the offer travelers of all ages a playful oasis. using high quality plywood, they created henches shaped like a bird wings that double as musical instruments. serving as a backdrop is a mural featuring images of local birds and san francisco's famous skyline. >> in the line between that is so natural, you can see birds and be in complete wilderness. i really like that about this. you could maybe get a little snapshot of what they are expecting. >> it is an interactive, keck

sculpture that is interacted with by the visitor. >> they are a lot about and they fall down the belt. it moves the belt up, and if you turn that faster, the butterflies fall in the move of words. >> the art reflect the commission's commitment to acquiring the best work from the bay area and beyond. in addition to the five new commissions, 20 artworks that were already in the airport collection were reinstalled. some of which were historically cited in the terminal. it includes major sculptures by the international artists. as a collection, these art works tell the story of the vibrant arts scene in the early 1960's through the mid-1980s's.

the illustrate san francisco's cultural center and a place of innovation that is recognized and the love throughout the world. one of the highlights is a series of three left tapestries. they are on view after being in storage for 20 years. these tapestries representing various gardens. from his years of living in san francisco. hydrangeas, chrysanthemums, and whilst dahlias in rich, deep shades as they make their way to the baggage area. they can access behind-the- scenes information and interviews with the artist through an audio to work. it features archival audio as well as interviews with living artists.

he can be accessed on site by dialing the telephone numbers located near the artwork or by visiting the commission's web site. the public art speaks volumes of san francisco as a world-class city with world-class art and culture. for more information, visit

>> public utilities commission, come to order. please call the roll. >> [calls roll] >> we have a quorum. >> we have the minutes of the december 13 meeting. are there any minutes or corrections? >> moved and seconded. those in favor? >> aye. >> the motion carries.

>> we have no speaker cards for this. >> just two items to called your attention. we have in your communications at get something from september 13 and the urban agriculture project. i wanted to encourage you to look at the letter as we look at valuation of those projects. the other item that was an opportunity to bid for a consultant worked. $1.5 million of a project that is going to civil service.

in any of it -- any event, there may be an opportunity to partner with the department of the environment folks. i do not know that what happened or if it is the best solution, but it is an opportunity for the departments to work something out and i hope that that might happen. i wanted to call that your attention. in terms of good news, there is some likelihood that i will be appointed to the full pucac and i will be able to serve you in that capacity as well. state to done that. >> more work. >> ok. >> you get more pay? >> it will double my salary from zero. more in a bit. [laughter] >> public comment.

>> there are no speaker cards. >> moving on to communications, does the commission have any comments or questions on the items distributed as part of the package? is there any public comment on communications? seeing none, the next item is other commission business. do we have other commission business? i see none. mr. harrington, the report of the general manager. >> we have two items on the counter -- on the calendar. before that, the first update, as you recall in december we adopted a new power rates for the departments of city -- departments of the city and county of san francisco. no one at the board has asked for a hearing or any other

action on those items. if nothing else surprising happens in the next couple of days, those will be accepted. second, you may have heard a variety of things about candlestick park in terms of power. to be clear, the outside of candlestick park is handled by pg&e. the inside is handled by the recreation and park department. since we had some problems with the last football game out there, barbara and her folks have been helpful in trying to work with everyone in the commission. the mayor asked the fire chief and me to put together a plan. we did that. pg&e has done a lot of reworking of the lines. we did a test between christmas and new year's. we did another test yesterday. everything is working well in up to speed. there should be no problems for

this saturday game. again, our involvement is helping to see that it works for everyone. >> bill a commissioner be allowed to go? -- will the commissioner be allowed to go? [laughter] >> we may have some people at the boxes outside of the park. to see if they do anything. but that is possibly the worst place to see the game. third issue, we have included a shutdown of the system. for the last couple of years we have been shutting it down in january for 30 to 45 days when usage is lower. the shutdown was supposed to be finished over the last couple of days, but when it came back up we had a gate problem. so, we have postponed the return until this saturday. it has taken a few days to get the gate up and running on a temporary basis. it is a gate valve that opens

and closes. water is now flowing in should get here by saturday and should be fine. other than that, the next item is the water system program update. >> good afternoon, commissioners. happy new year. i would like to start today's conversation with an update on the november 25 pipeline failure. this is the event was reported on at the last meeting. as you recall, we had independent commission review of the incident. it was performed by a reputable failure analysis firm. they've provided us with their findings on december 19. they concluded that the pipeline failure was due to insufficient

restraint in a bolted coupling that misused in a service connection to the city of south san francisco. it was essentially a design error that was performed by the puc engineers. the report also identified two other contributing factors that may have contributed to a lesser extent. we have been diligently following up in taking the necessary steps to ensure the quality of our internal designs. from this point on, all calculations will need to be reviewed by senior engineering staff.

we met with moscow last week to discuss the findings of the report and the steps being taken. we are going to give the city council of the city of south san francisco an update tomorrow evening. on the overall progress and trends for the program with construction activities picking up in the next few months, will soon reach the peak of construction. in general, i am really pleased with our progress. there are two projects in the region with cost trends indicating potential needs for additional funding. those will be the water treatment plant projects. unforeseen side conditions at of project sites, as well as scope changes at the treatment

plants are the main reasons for these additional costs. i will keep you updated on the costs of these projects in upcoming reports. we have some very good news to report. since i last presented to you in september, we have reached substantial completion on the construction of two projects. we are also on track to reach final completion on the eastern bay division pipeline in february. the reason why this is important to note is that this is the last local project to transition into risk -- construction. in my last update i mention significant challenges with the new irvington tunnel. there is no question that these

challenges remain, but things are looking up at the moment. we are currently achieving constant production rates using three, not for headings. we are also being -- we are also keeping up with intrusion. as i mentioned before, we are seeing is some of the most challenging round condition experts that the industry has seen. -- ground conditions that experts have seen in this industry. the bay tunnel boring machine is achieving production rates that are equal or exceed what was planned. we are working on a proposal with a contractor to reduce the size of the construction shack on the east side of the tunnel, -- shaft on the east side of the tunnel, which would result in

potentially lower costs and less of an impact on the environment. that concludes my presentation. >> commissioners, any questions? >> we apparently have three more weeks to go. it will be an important milestone. once we are under water, the risks will go up. >> i was trying to think of how to approach an issue and i appreciate your thinking on it now or later. this commission and staff spent a lot of time putting in place project management systems. this was in preparation for the program. we are now at the stage when

those systems are being exercised. when stuff goes bump in the night. for those that have not been involved in that process, and perhaps some commissioners with certain members of the public have as well, but now is the time when something happens when you scratch your head and say -- could that have been prevented? is the response of vigorous enough and thorough enough? i think that it might be worth a brief update, at some point, as to how staff deals with that kind of issue. perhaps using a case example of what happened, how does that react back to the original bid

documents. just to talk us through that so that we and the public can understand what the process is and the intention being paid to that. >> a case study. >> if you find a rich case, that could be a good way to do it. you may have to invent one. >> i can think of a few already. >> that certainly has the truth element to it. >> we will put it on the events calendar. thank you. >> mr. harrington? >> the second item, commissioner, you may want to introduce as part of the discussion about policy review to the budget. >> i will let todd make the presentation first. i will jump in and make comments after that.

>> good afternoon, todd. -- afternoon. my name is todd. as we get ready to move into the next budget season, and i know you have received your package, u.s. to meet to review and summarize the key policies that you already have in place and hold staff accountable for implementing. you also wanted to look at a couple of additional ones this year, including a race policy. the package before you is relatively thick, but there are only four slides that will be new materials to you. i will point those out quickly. the key policy areas that you already have as part of the puc budget are the environmental laws, community, and justice policies. we will point out some of the key areas that we put those policies in to practice