our system at this point. we have a plant in the southeast that still has an odor problems. it is not a good neighbor all the time. we have other issues that we will need to cope with and deal with at some point in the future. what you have before you is the initial amounts. any big money and the real decisions about what we will have to do will have to come back to the board. on that note, the sewers system, you will notice, is aging. the average life of the types that we have is about 100 years. a lot of those were put in place after the 1906 earthquake. they're reaching the end of their life. if we do nothing, you will notice that the blue section shows a lot more failures in the streets of san francisco. when you have a feel your of your water main, it blows up. it is very noticeable. when you have a feel you're in

resources and, it tends to have potholes' and the ground starts to sink and you tend to have a lot more potholes and street failures around the city. we need to do something or around 2025 will have 20% of our waste water mains failing in san francisco. the other thing i want to touch on briefly is work force. and ms. simmons is here to talk about this. we had six projects that were related to local hire. the demand rate was 20%. our participation was over 30% on those projects. on our new headquarters building, which is not subjected to this, our average was over 45% in terms of local hires for that. chairperson chu: supervisor avalos? supervisor avalos: are we hitting that mark on all of our trades?

and what is the fluctuation of between the trades on that mandate? >> we are not hitting the mark on all of them. we tend to be doing better with laborers, operating engineers, and partners. we tend to do less well with -- and carpenters. we tend to do less well with specialized trade. or welding, it is hard to get into that. there are traits that we need to do better on. i would be happy to hear from rhonda specifically on something we could add to that. >> good morning, supervisors. we had 153 total hires for our first-year local hire. and as just a bid, 73 were on puc projects. the majority of those new hires went to labor this time. that has a lot to do with the

mix on the projects more than anything. as we move forward a your to and have more diversity of projects, the year two is where we have the largest dollar allocation for the project. he will see that branch out. the mix that is reported here is not out of the ordinary. the puc headquarters project, while it was not subject to local hire, it did actually meet the time line. we are very pleased with the amount of hires that we did. we that a number of our recent graduates be able to get in on that project and stay for a period of time. >> we are well above our mandates -- supervisor avalos: we are well above our mandates in a lot of trades. are they just not performing as

well in those that are lower? >> if you're talking about local projects, is a little bit too early, to be honest. i think that first year, we are pleased that we did the. we did not hit our goal by trade, regardless of the department. some of those projects are not still going on. that will get wrapped up and the data will be rolled in. it has more to do with the timing of these projects and how the data rolled out. but for the first year, remember, we had a late start up and all of that. i'm only cleaning up eight to nine months of hard data. some of these projects are still going on supervisor avalos: -- going on supervisor avalos: i just wanted an update on all of the traits that are still underperforming. >> i would not say that they are

way underperforming at all. they still know where we are. it when i come and do the full update on specific higher, then we will talk in more detail. but nobody has zero or anything that i'm concerned about, or anything where there is urgency to it at this point, no. supervisor avalos: thank you very much. >> do not just think of san francisco when we are working on things. it is regional. we have been doing a lot of work. a lot of work in alameda county and san mateo county, and san walking county. -- san -- san joaquin

county. one of the changes in the budget is 11 people used to be in the infrastructure group and they are now working over at the water department. they have traded a new habitats -- created a new habitat. we are doing specialized training to bring other people like that into that kind of work. we are bringing new people in that can do long-term maintenance of the infrastructure and the habitat that we are creating. the caltrans project has particular things for carpenters and laborers at substations and things that you're doing when you are building a new dam. we have specialized training there. and we have the tender program where we have taken five people from alameda, san francisco, san mateo county -- and there have been about three groups of 15 people each where we are doing special training in close quarters to work on a project that we have. i appreciate the work of the puc

because we did kraft the local ordinance to be regional in nature. supervisor avalos: thank you for reaching out. >> thank you, supervisor. at the public utilities commission, we expect about 200 to be employed by the puc this next year. part of that will be on the project for the water department, a high-school students and the crown -- conservation corps. these are students that are route graduating in the master's program in college very often. chairperson chu: in the employment area, how do people know about the positions that are available? >> they can go to our website at sfwater.org. if there is any information that you need from our offices, we would be happy to provide it to you also.

the project is a joint project spearheaded by the sfpuc and dpw in san francisco. the garden project is working with the sheriff's department. in each case, we are partnering with others, we can make sure that people are aware of it. supervisor kim: it would also be helpful to get the breakdown of the use intern's -- youth interns by zip code and by ethnicity as well. we had an issue where we had students that are dominating that did fairly well in public school. we realized we needed to reach out to students that are not taking the initiative themselves to take advantage of these opportunities. i'm curious how we can be more helpful for the puc in this type of outrage. >> -- out reached.

>> we tend to have great student engineers from all over the country because we want to bring in the best and brightest to work for us. on the other hand, on the garden project, we set aside a big chunk of that specifically for the bayview. we do it in different ways to make sure that we can include people. we haven't putting community benefit requirements in our -- we have been putting community benefit requirements in our sewer service projects. we have been talking about not just building a project and leaving, but how you build that into the educational system, offered jobs locally, buy locally. we really want to make a difference. we really do value public art, but we want to make sure that the money we have to put aside for that in our capital programs is community focussed and community-based, and that we are providing jobs for people in

the arts community, not just construction jobs. the air and agricultural i -- private program, we are working with the city administrator's office to coordinate that in terms of urban africa poulter. the southeast of energy facility was built as an expansion of the southeast water treatment plant. two years ago, most of all did not even know we had anything to do with it. we are trying to make that into a real resourced for the neighborhood. we have been working with the commission and the people in the southeast community to see what services they do what and how we can offer that collectively through the community college system and make that a revitalized community center. the contractors assistance program is a place for people that are particularly small contractors and they can come in and say, what are my

opportunities with the puc, and with the view -- the dpw. they can learn how to apply for city jobs and city programs to make sure that they have jobs that can go to smaller companies. they can find out what those jobs are and have access to it. drinking water taps stations in san francisco public schools, you now have to have clean water near where all of the students eat. there is a major effort going to the school's next year to have water taps at the level with clean water to all of the students. the components of the energy efficiency programs are working with green to make sure that as we spend this money, we spend it well. and that we have the benefit of spending it, not just that we have energy efficiency.

the last slide i have is slide 12. chairperson chu: before you go into that, supervisor avalos. supervisor avalos: redevelopment was founded around job readiness, about removing barriers to employment. i would like to explore the possibility of puc helping to cover some of those costs, especially as we are preparing work force members to enter puc projects to help, perhaps, not replace the loss of funding. we need to be sure we're moving forward on projects with local residents. >> we would be happy to work with you to make sure that all of the money is going to the right opportunities. supervisor avalos: thank you. >> on local access accomplishments, we are in compliance with local asset -- local assets -- local access ordnances. many come to the program right

now, some directly, but they also come to our people input -- in customer service. not a lot of response is this last year, so we are still reaching out to asking what we can do better for those who need his services. we have translated all are important birchers into -- brochures and signage into spanish and chinese. when we're talking about grease traps and wastewater, we need to make sure that all of our people say the same kind of words is so we do not confuse people when we're talking about the needs and services we have. we have developed a complaint form. i believe we have got one complaint, which was a translation of a brochure that we have, but that was all. we have transformed it into a workshop -- we have translated for workshops. we believe we can always do better in that area as well. >> there may be a lot of words for grease in spanish, too.

>> and some are good and some are not so good. we are here to answer questions. our leadership team from the puc is ready and willing to answer questions. chairperson chu: before we go to the budget analyst support -- budget analyst report, which is specific to your budget, one of the things we wanted to go through or the bonds that are being proposed. items four through 10, one of them is actually a release of reserved. i wanted the puc to go through that. perhaps, we can go to the budget analyst to talk through the budget as a whole and that we will talk to those items. primarily because i want to understand the relationship between the preparation and the sale.

i want to understand the potential impact on these items and what the plans are for spending. there's not a lot of detail in the report about it. supervisor cohen, did you have a question? supervisor cohen: i just want to publicly go on record to acknowledge the right -- the importance of the project to the south eastern neighborhoods. i have spent a large part of last year, as well as this year, getting better educated on the technologies available when it comes to waste water treatment plant and the management of plants of that nature, and what san francisco is in store for. it is very exciting. i also know you will be spending some time going to your commission and beginning to create a pathway for this project to move forward. i just want to encourage you to do this quickly and as

sufficiently as possible. it is very critical to the neighbors, particularly those in the surrounding area that have grown accustomed to smelling the output of the treatment plant. thank you. >> thank you, supervisor, for being understanding. we realize it is not the nicest thing for a neighbor to do. we will be having a lot of hearings in june and july so that people can check our web site. chairperson chu: on the summer youth programs, we heard from a number of departments yesterday about the opportunities they that -- they provide. and the different ways they partner with non-profit organizations and schools, etc. it is often confusing and not so centralized for residents to find out what the opportunities are. i think the mayor had announced for this summer a 5000 summer

youth employment job opportunity goal. i think that includes all of the department opportunities as well. are you putting your links and opportunities through that same portal so that people have a bird's-eye view of what opportunities are available to them rather than saying, let me go to the puc or to the airport to look for those opportunities? >> i believe they are. let me turn it over to the founder of project kolk. -- project pull. >> we have been partnering with the youth. we have been trying to coordinate with used works -- youth works with our program. the part of the problem is that we need more mentors to participate, so there's more

opportunity to have replacement. we have been working with the unified school district to identify resources of that we can replace them. chairperson chu: we are making sure that we are listing the opportunities of the puc said that people can access a share portal for all departments, correct? >> correct. chairperson chu: supervisor cohen? supervisor cohen: i wanted to recharge you a little bit and they know that we have a growing database of young people that have either come in or have seen in community office hours -- our paths have crossed and we are certainly working. if there is any other information like collateral or a brochure or other information that you have, i would appreciate you bring me by the

officer we can continue to you out reached on a weekly basis. >> we will definitely come by and give you the information so that if anyone comes by, you can't point them in the right direction. -- you can point them in the right direction. chairperson chu: thank you. supervisor wiener. supervisor weiner: week finally closed the city works work force position. we have worked to make this a one-stop so people can't find the information easier. -- can find the information easier. >> you mentioned the street lights.

i know we are doing the street by a hearing on june 4th. i do not want to do it now. but compared to the sewer system and a water system, the street lights are significant, but significantly smaller than the other capital needs. that is why it is a little bit perplexing sometimes that our street light system is in such bad shape. i know that pg&e controls a lot of it, so it is outside of puc's control a lot. busey a light at the end of the tunnel -- do you see a light at the end of the tunnel in getting the street lights didn't care so they are not falling apart, like some of our street lights -- getting taken care of so they

are not falling apart, like some of our streets might actually are? or will be focused on pedestrians rather than just exclusively writing -- like team that roadway for cars. -- like in the roadway for cars. -- lighting the roadway for cars. but the amount of money that we could spend be to upgrade all of the roads over two years. the other thing would be to walk in and have 1¢ rate increases. that is now allowing us to do binding and that will find it street lights. the ability to do it will be better generally over time. we have the ability to do upgrades on the l.e.d. street lighting. we also have miscellaneous street light repairs and the bus rapid transit on van ness.

those will go a long way to change the problem areas on street lights. about half of them are owned by just pg&e. the pedestrian lighting is a particular issue because the lights were often designed for street lighting. they were designed without as many trees there. they sometimes do not like the sidewalks -- light of the sidewalks as much as people would like. and in many cases, people do not want them shining in their windows. that will be the discussion for us in the future. one of the nice things about the l.e.d. lights is that you can remotely increase the capacity. you can work with people much easier than with the current lights that we have. they are not designed for low level pedestrian writing under

trees. >> i do want to reiterate this, and i know that we are on the same page, the need for long- term infrastructure. in one district there is literally? tape -- there is literally duct tape holding things together and it is very jarring and disheartening. and they are not puc lights. >> there are some lights that are like your old-fashioned christmas tree lights, when one goes out the although out. mize understanding is that pg&e is putting money aside to upgrade those. we have more money in the last two years budgeted for street lights that we have had in the last 30 years. we are paying attention to it. chairperson chu: now why do we go to mr. rose and report?

hold on, we have a lot of questions. mr. rose? >> madam chair and members of the committee, you mentioned the other items on the calendar. just for the record, we have reported on those items, 4, 5, 6, 7, 8, 9, 10 and are recommending approval. we are here to answer questions if you have any specific questions regarding those items. we are in agreement with what mr. harrington stated on the puc on the specific line items in the budget. if you look on page 10 of our report where we stated that we are recommending reductions, and these are shown on the pages 13-17 of our report, a total of $2 million. we have revised that down to

$two million two ordered $23,017. -- where we have previously recommended 2 million to a moderate $48,000, we are revising that down. -- $2,248,000, we are revising that down. on page 14, and the middle of the page, we are adding to that in government and public affairs manager. instead of that ad-john, we would recommend a manager --

add-on, we would recommend a manager to that. it would now become 20 four thousand dollars. and for 2013-14, where it says 28,000 two hundred $95, it would be $25,206. that is the first change. on page 16, toward the middle to the bottom of the page, on maintenance, services, buildings and structures, where we had been recommending a reduction of $220,000, our recommendation now is $100,000 for both fiscal years. the number in the second column will become $304394.

and on page 17 at the top of the page for maintenance, services, buildings and structures, we are now recommending a reduction of two hundred thousand dollars for that line item -- $200,000 for that item and that would be for both fiscal years. and finally on page 17, on professional and specialized services, we continue to make a reduction a $200,000. however , we are now making a recommendation that it be a continual reduction, not -- a onetime reduction, not an ongoing reduction. those are our changes. we will be happy to respond to questions. chairperson chu: could you repeat for fiscal year 2012-13

with the total recommended is now? >> it was $2,596,000 and is now $2,073,00. chairperson chu: what we go to the capital budget projects as well as the sales. the reason why these are more important for me to review more closely is that there are a few that are voter approval. there are some that are not sf voter approval. these are those that have to be approved or issued by a supermajority in order to change and fix the sewer system. we are simply fixing and repairing our existing

infrastructure. however, i think we do need to scrutinize its because we do need to understand these are not items that went before the board before. these are not large components of future bond issuances. they're having a significant impact. it looks like the rate repairs will double in current -- in terms of the current charges. that is not insignificant to households. that is why i want to not gloss over these items. they are huge. if you look at some of them, they are half a billion dollars worth of infrastructure work. this is not something that we should just skip. i wonder if the puc could address those items, four through nine in particular for the bond issuances, and then we can talk a little bit more separately about that. item four is connected to item 9, 6 is connected toi