commissioner moran: here we go. good afternoon. i like to call the june 12 meeting of the public utilities commission to order. secretary, if we could call the roll. >> [roll call] commissioners caen and vietor are on their way. commissioner moran: you have the minutes for the may 22 meeting. any additions or comments? moved and seconded. all those in favor? opposed? the measure carries. this is the time for public comment for any item that is not on the agenda today. any member of the public who wish to address the commission about any item over which we have jurisdiction, this would be an appropriate time. do we have any public comment?

ok, seeing none, moving on to communications. public commission, on the advanced calendar, one thing that is on there that i just wanted to -- it is a change and i wanted to make sure the commissioners were aware of it. the july 10 meeting is scheduled as a workshop. that is roughly 10:00 a.m. until 3:00 in the afternoon. that will be outside city hall. on the hetch hetchy and wastewater capital programs, just a comment -- first of all, i appreciate the effort folks have put into getting all of the capital programs in a format that is familiar to the commission and the public and has proven itself in terms of providing a degree of

accountability and transparency. it is currently a work in process. i would encourage you to continue with that. a couple of brief comments -- one is that the cover memos are still not calling out the items that deserve specific attention by the commission or members of the public, and i think that would be helpful. the second is that it is clear there is some difficulty in trying to take a reporting system design for a very neat and confine package of projects and applying that to a different and not as neat package of projects. i think that is going to require some different kinds of reporting, and i would encourage you to think that through in terms of what creates meaning in the reporting and also not hold slavishly to what the wsip

reporting is doing. thank you for that effort, and i encourage you to keep that up. that is all of my comments, commissioners. anything on the items included in the communications? we do have for public comment victoria -- and i'm not even going to try. i am going to get it wrong. that is you? ok, if you want to come forward. my apologies for not getting your name. you have a comment on the urban watershed framework report. >> jennifer is ve be here todayi

want to draw your attention to a letter to the commission in response to the development of the urban watershed framework. it includes several recommendations by several organizations, and i have several copies here with me today if you would like to look at it, and if you have questions or comments, i would be happy to convey this to jennifer. commissioner moran: thank you your letter and appreciate it very much. commissioners, any official comment on the communications? is there any other public comment on the communications? ok, moving on to other commission business. for the information of the commission, the announcement for the general manager's job has been officially posted. the application period is now officially open. it will close on the 29th of

this month. applications are already coming in. there is a good deal of interest. i think we will have a rich pool of applicants to look at. any other commission business? ok, thank you. the report of the general manager. >> thank you, mr. president, members of the commission. we have a couple of items for you today. the first is a certificate of appreciation. we would like to honor estella for her exemplary service on the small firm advisory committee. she is president of the area contract on-line officers association and as well known to the community for her vision, her activism, and her commitment to equality. she brought a skillful diplomacy and expertise to the small firm advisory committee, effectively increasing local enterprise participation on our water system improvement projects.

i want to thank her for her ground-breaking work and send her regards and best wishes as she goes forward. [applause] >> commissioners, if you would join me. thank you. and one more. >> thank you so much. >> congratulations. >> thank you very much.

and you get 10 points for the tarano. >> that's right. good pronunciation. >> my next item is the legislative update. >> good afternoon, commissioners. i am monica fox, legislative affairs director for the puc. as part of your package, the assistant general manager and i provided you a briefing on some of the key legislative items we have been advancing on the local level. i wanted to take a few minutes

to highlight a few of those things and answer any questions that you might have. first, after local level, a broad area of work that the legislative team focuses on is insuring the successful package of sfpuc items before the board of supervisors. since january 2012, we have seen successful package of about 20 items, sfpuc-sponsored items before the board with another 12 pending. these are many operations with an effect on the related issues. a second broad area of work we are focused on at the local level is focusing on scaling some of the innovative practices that the sfpuc is advancing into

city-wide policy. one example is the non-potable ordinance. as you all may know, as part of our new headquarters at 525 golden gate, we will be capturing, treating, and reusing water on site. if you think about large commercial developments, about 40% of water used in the building is for toilet flushing, so water conservation impacts that can accrue when you capture and treat water in these large developments is quite powerful. there are a number of developments across the city that are starting to do this. the california academy of sciences, the mosconi center, so our water enterprise and wastewater enterprise have been working collectively with the building department, the department building inspection, and department of public health to establish a regulatory and policy framework that would allow for this type of practice to flourish across the city. we are pleased that this week the board president will be

introducing this ordinance and will hopefully continue to further the practice across the city. later in this meeting, the general manager will talk about and ask for your consideration of a financial incentive program that will hopefully again continue to grow and scale this practice. another example of how we are working to scale the innovative practices of the sfpuc into city-wide policy is the drink tap or events. earlier this year, you as a commission approved an mou with the san francisco unified school district so we could provide bottled water be filling stations in schools to allow children across the city to be able to access our high quality hetch hetchy tap water. the board has been so pleased with the pilot they are now moving forward with a tap ordinance that would require these filling stations in all

new commercial development. that is something we are also expected to happen later this summer. at the state and federal level, we are working on a number of bills that are outlined in the memo, ranging from encouraging and creating a state policy framework for rainwater capture and reuse -- we have been tracking the discussion very carefully. we want to make sure that our interests are preserved in advance in a variety of legislative bills that are moving. at the federal level, there have been a number of issues are brown water rights that have come up that we have been working very hard to educate our members about core priorities of the sfpuc. with that, i will pause and see if you have any questions. commissioner torres: on the legislative initiatives, you have -- how many bills are we

following now? >> we are probably falling over 100 bills and actively working on about a dozen. commissioner torres: what would you consider the highest priority at this point? >> i would say that the highest priority for us right now is a.b. 2157, which is a bill we have been partnering very closely with bawsca on, and it clarifies some of their bonding authority so they can repay some of their remaining debt to the city of san francisco. they project it could potentially save them $35 million. also, the additional infusion of revenue to sfpuc would help us in our rates. i would say that is the highest priority bill. it was successfully passed out of the assembly and will be

heard in the assembly later this -- and will be heard in the senate later this week. commissioner torres: and the second priority? >> i would say there are a number of high-priority bills -- commissioner torres: how was the reaction to the rain water legislation? who was the author of that? >> the author of that was solario. for the core priorities of the sfpuc, our core party is to have it be held harmless. we want to make sure that some of the provisions of around captured do not stymie anything, particularly our wastewater enterprises, but also in trying

to be a good and responsible public agency, we want to make sure what we do at the local level was also translated into that bill. commissioner torres: jose is a friend of mine, and i am interested to know. what are they doing in orange county? >> i do not know what they are doing. commissioner torres: is it because of his interest in the issue? and it is before the senate? what committee? >> natural resources. we want to talk about some of the issues around interpersonal transfer of water. thank you. commissioner moran: any other questions? >> i have a question as well if that will have any impact on the non-potable ordinance and a

local ordinance. >> at this point, we think not, but i of the bill continues to be amended -- if the bill continues to be amended, which it is likely to be several times over before it concludes passing for the legislature, and at the same time, there is a parallel pact is happening with the building standards commission revising their code, so another thing that water and wastewater enterprise have our focus on is insuring what happens in the rainwater captured bill is aligned with that. >> and with our non-portable, too. ok, great. thank you. it is exciting. >> my last item is on 525 golden gate. i just want to answer commissioner caen's question -- yes, there will be a plot --

plaque. [laughter] we have our employees coming over and looking at the building and seeing how installation is taking place right now, how furniture is going in. it is a very exciting time. the building is coming together quite rapidly. we will have a stakeholders open house on june 17. the grand opening is on june 20. our i.t. department is actually moving this weekend into the building. they have installed the servers and such, so the building is starting to function. over the next several weeks, we will start transitioning the majority of our employees from 1155 and 1145, so by the end of july, we will be operating out of that building. the building is very exciting for innovation. you can see the sort of living machine in the lobby. the video wall is quite

stunning. those things are being run right now and will be fully up and running on june 20. it would like to see the building before june 20, that would be great. commissioner moran toured it already and can provide impressions. we will be meeting here for regular commission meetings, but if we have special meetings that need an off site location, they would be in the new building. commissioner courtney: i would not take up too much time, but i would say that as someone who represents the work force -- workforce, it is quite an extraordinary place to call your daytime home. i think the building is suited to generate the maximum productivity, and i think it is

fascinating that over the course of 100 years, the building will pay dividends to the citizens of the city and county of san francisco -- i think the number was $500 million, which is extraordinary. commissioner moran: i would echo that. i think it is a fabulous building. it is an extraordinary public space that we are creating. we have been able to use the public arts money very creatively, and it is also a building that expresses our values in a very, very significant way. i think it is an exciting prospect. i just look forward to the ribbon cutting and being able to call at home. >> that concludes my report. commissioner moran: thank you. any comments on the general managers' report?

any public comment? what time is the grand opening? >> 5:00 p.m. 5:00 to 7:00 p.m. >> and then there is an open house the next day? commissioner moran: right, yes. >> and on the weekend as well. commissioner moran: the next day is to be during business hours? >> i believe so, yes. commissioner moran: and the next day? >> i believe it is 8:00 to 4:00, something like that. we will be posting that as well. commissioner moran: madam secretary, please call the consent calendar. >> consent calendar. a -- accept work performed by d'arcy and harty construction inc. for a total contract amount of $1,760,638 and with a

contractor ration of 100 consecutive -- 170 consecutive calendar days and authorize final payment to the contractor. b -- approve the plans and specifications in the amount of $1,954,976, of which $1,371,595 is funded by wastewater enterprise, and with a contractor ration of 210 consecutive calendar days, to the lowest, qualified, responsible, and responsive bidders. c -- approve the plans and specifications and award a contract with a duration of 330 consecutive calendar days in the amount of $1,290,865 to the lowest, qualified, responsible, and responsive bidders. d -- approved amendment two to

cs-102 and authorize the general manager to execute this amendment increasing the agreement by $175,000 with no time extension. e -- approved the assignment and novation agreement as needed and authorize the general manager to execute an assignment and novation of the existing contract. f -- authorize the general manager execute on behalf of the city and county of seven cisco error vocable permit with the city and county of san francisco to use approximately 5 acres of sfgtv -- sfpuc plant near south

spruce street and huntington avenue and the torque -- victory avenue in south san francisco for a public bicycle path and linear park. g -- approve the terms and conditions and authorize the general manager to execute a permit with the indian community center for use of sfpuc right of the property located in santa clara county for outdoor recreational area for children attending the camp. h -- authorized the general manager to execute ever vocable permit with the neighborhood council as fiscal sponsor of the garden for environment on sfpuc property. i -- authorize the general manager to approve a lease between the city and county of san francisco through the sfpuc and acre gourmet inc. for use of

a portion of the lobby and portions of the basement of 525 golden gate avenue as a cafe and kitchen and storage space. commissioner moran: any items requested to be removed? them up requesting to remove -- >> requesting to remove f, g, and h. commissioner moran: thank you, and i would like to pull i. any other items? ok, then on items a through e, i have a motion and a second. all those in favor? opposed? the motion carries. commissioner quarter, what is your pleasure with those three items -- commissioner courtney. commissioner courtney: there are components related to jurisdictional work -- landscaping, gardening, etc.

i've had conversations with staff already today. i do not see anything on its face right now that is a great cause for concern, but there is a need to gather more information and do more outreach. staff is not prepared at this time to answer the questions we have, as the winner of those items to the next agenda. commissioner moran: without objection, they will be continued to the next meeting. i would like clarification on item i. my understanding is that this work would be awarded subject to competitive process. if you could clarify that. >> it was a competitive process. we did have five proposals. the winner was the highest- scoring. we had four panelists. it is not in the agenda item, but the resolution does talk about how they were the highest- rated proposal out of the five. commissioner moran: ok, thank

you. any other questions? >> i have a question. is the $33,000 sort of the going rate? >> it is for the size of space we are renting to them. once we get into the building -- i think it is the going rate at this point, and that was part of the package that we looked at. commissioner moran: any other questions or comments? >> i have a question on the items commissioner courtney continued. just to make sure it will not be a problem, that we will be able to continue operating under the current permit. >> that is correct. some of these are to replace the current permits, but it does not affect operations. commissioner moran: thank you

for that clarification. on item i, there's no additional questions. is there any public comment? seeing none, could i have a motion? moved and seconded. those in favor? opposed? the motion carries. if you would call item 9. >> approve revisions to the schedule and cost of three projects being delivered as part of the water system improvement program -- new irvington tunnel project, the bay division pipeline reliability of great pipeline project, and modification of the existing d chlorination facility project -- existing dechloramination facility project. the total cost impact of these changes is $7,487,700, and the

overall program schedule and cost remains the same. >> you should all have a copy of my power point slide. if i could be connected to the system, great. my apologies for not having these in your packet. i just decided this morning that it would help put things in perspective to have a presentation for you. i also wanted to point out that included in your packet is a letter from bawsca in response to our proposed changes. before i get into these proposed revisions, i wanted to highlight once again for you where the program stands as of today. the program as a whole is 50% complete, based on expenditure. you can see on this slide a breakdown of where each of the 81 wsip projects is at. at this point, we have completed construction once again on 2/3

of our projects, and we have 19 currently active in construction. we will be seeking approval today for a new construction contracts, so that will bring our number of projects in construction to 20. we only have four projects remaining in planning and design. so why is it that we need to approve these revisions to the program? whenever a project encounters significant issues in the field that have an impact on cost and/or schedule and that' -- tht we can at mickey d's impact, that is when we need to consider revision to what has been approved to these projects -- that is -- that we cannot mitigate impact, that is when

we need to consider revision to what has been approved for this project. it allows us to have a more realistic base line against the measure performance. if we try to measure performance and give unrealistic baselines, then the measure of these performance indicators is pretty much meaningless. finally, the california water code requires will identify any project behind schedule and that we provide either a plan or timeline for making up the delay or for revising the schedule. the last time this commission approved official changes to the program was in july 2011, and at that point, these changes involved only very minor project levels. the most significan