that concludes our press conference. the mayor is available for a few questions privately afterwards. so thank you. [applause]

>> good afternoon. i'd like to call the meeting of the public utilities commission to order. >would you call the role? -- roll? >> thank you. commissioners, we have minutes from the june 12 meeting. do i have any comments? >> i would like to move the minutes. >> moved and seconded. the motion carries. public comment, this is the point where members of the public can address the commission the not part of today's agenda.

>> commissioners, i want to congratulate you on doing a first-class job with 525 golden gate. that is what you call living legacy. thinking outside the box. doing all of san franciscans proud. i was not there for the entire event, but i was there to teach -- hear each one speak and to see who was in attendance. and listen to the comments of the engineers and all of the key people that played an important role in establishing that institution.

i did send an e-mail to some of the key people in writing because they did a lot. i am looking forward to some bright days in the future. i got to speak with the general manager a little bit. what happens with big infrastructure programs, at a happen in a vacuum.

we need leadership and we need continuity. we have people in this room who have been connected with sfpuc and with the water department for a long time. we have some institutions are right in this room. some of your commissioners and some in the audience. that is good for san francisco because we work together on the water system improvement project and now it is coming to an end. we are going to start with a sewer system improvement project. we can apply all of our experiences, all of the models that we use and had benefited san franciscans. we can apply them to the sewer system improvement project. i have been coming here from

time to time. we will also be talking benefits to the community. thank you very much. president moran: ms. jackson? >> good afternoon. i came today because i want to talk about the southeast community college. i note is not on your agenda, but i wish that you will put it on your next agenda. there was supposed to be a plan that we have not agreed upon, as of yet. i would like your staff to come to a meeting on this friday at 1:00 so that we can finalize the plan for what we, the community, want to see at the college. i also would like to say that there has been a lot of discussion about hospitals being

built in san francisco around bayview. we have mission bay. i am glad that he mentioned the sewage plant. i think it was two years ago, i came before you and said now we can start working on the building of this sewage plant. what i really want you to do is to set aside the funding that was stated to us in the community six months ago for the rebuilt of the southeast college. we're going to have class starting in september. we do not have much time. i would like to see the work started as quickly as possible so that way, we will not have a

lot of in and out movement at the community college. everything is going fine, and people are saying they do not think that puc is going to do x- y-z. the community has to support. when i read about you may be leaving in august, i got a little scared. a little frightened. i thought you were going to be here until december. the commission voted to keep you until december. i knew that he would make sure that everything over there at the southeast sector would be taken care of. we have been waiting 50 years for things to happen for the city, promises that have been made to us. i do not want to see this happen

and we have to wait for another 50 years. thank you very much. you'll have a blessed day. president moran: thank you, miss jackson. i would like to hear from staff at the earliest opportunity in response to ms. jackson's question. i would like to figure out how soon we can put something on the calendar. >> we would be happy to do that, commissioner. in terms of the discussion, at that will be part of the discussion on the tent. that is a big part of that day, set aside for the source systems improvement program. -- sewer system improvement program. >> i think we have to find out from city college. there is quite the turmoil going

on there. would this be one of the campus's they might be closing? am i not supposed to talk about that? >> they have difficulties, but they are committed to the southeast campus. >> we have us a dean. we have not had a dean and quite a while. he is the dean. we will not have two deans over there. we are working it, baby. southeast will be open, they are committed to the college. you do not have to worry about that. i am not all of the trustees' meetings to make sure business is being taken care of. >> knowing that you are around, there would be no doubt in my mind. president moran: any other

public comment? i do have their request to acknowledge that we have received two pieces of correspondence regarding watershed security. we have received those. commissioners? nothing else? moving on to communications. advanced calendar, any questions? comments? >> i have a comment on the advanced calendar. outstanding commission question response report. i have had this question on the books for quite some time, maybe even years. that is the fair market value of our property. could i have a more definite answer to this, as opposed to as soon as possible? >> yes, you can have an answer to that. at the next meeting, if that is

possible. we have been going through a change in staffing. we will have several new staffs in the next several weeks that will make a difference in our ability to respond. >> thank you. president moran: with respect to the program, i just wanted to make a comment that we have had a couple of things going on where there is a common theme. the watershed free-market report also included -- try to understand those technologies within the specific context of the city. that is a very healthy way to go forward. we do have a technology policy that is in the works that reflect that, but i just wanted to point that out.

any other comments from the commission on the rest of the communications? any public comment on communications? other commission business. commissioners? the report of the general manager. >> good afternoon, commissioners. i think we had a very successful opening of our new headquarters building. thank you for being there. the items we have before us today on the report of the general manager, the first item is an ocean beach update. >> we want to give you a very brief update on some activity at ocean beach. we had erosion on the south end of ocean beach. we have a very important piece of infrastructure there.

we have these sandbags out there now. on the north end of ocean beach, they have an abundance of scent. the national park service has had a bulldozer on the beach pushing the sand back into the ocean. we have been partnering with them to see if we can pick up that sand and dropped it down to the south end of the beach. -- truck it down to the south end of the beach. to create a buffer area to protect our infrastructure. the national park service has been working with us and we are going through the permitting process with our department of public works, as you can imagine, the sand is blowing on to the roadway. this is a win-win situation. we hope that it is successful

and that we can continue this in the coming years as well. if you have any questions, i am here to answer those. >> thank you. >> of the sewer system improvement program validation process, we have been talking about it for a long time. it is time to come to some conclusions. over the next several meetings, we will be updating information. the hope is that on july 10, at your workshops, and we will spend a substantial amount of time talking about the goals, what did they translate to, what are the major projects, it does this fit into something you would all be comfortable with? we will concentrate on not

overall idea and then specifically on the digesters and the work at the treatment plant. the next meeting is july 24 and we will be concentrating on the urban watershed framework. hopefully, in the month of august, we can bring all of your thoughts and ideas back together and come up with a program that you can adopt that will give us parameters on how to move forward. that is the plan. the last item is an update of the water system improvement program. >> good afternoon. i have a few slides i wanted to show you. if we could connect, and they

elect to two projects. the first one has to do with a new tunnel. while you were approving the revised budget and schedule for the new tunnel last tuesday, are construction crews were actually holdings through the first of two segments for the tunnel. this is the segment -- the smaller segment, nonetheless, this is a big milestone for us. you can see the ring. this happened at 420 feet underground. we are continuing excavation of the second segment. we are expecting to pull through in mid-2013. will be installing the lining in

the first segment starting this summer. this is going pretty well. this is another photo of last tuesday. that is on the good news front. i want to bring you up to date on a recent development, the news there is not quite as good. the contractor had been doing -- making very good progress in excavating in the order of 2000 cubic yards a day. what you see is a photo taken from the damage. -- from the dam. in order to construct the new dam, we need to excavate a good portion of that hillside. here is a schematic of what is happening. in mid-june, we received a

letter from a contractor indicating that the encountered unexpected geologic conditions of -- i not left abutment. you can see that, if you look at the right, this is where a the newdam will be built. if you move to the left, you can see a little indentation. you have an existing hillside that we need to cut back to make room for that spillway. eventually, they were going to go to what we call the final design caught. that is the black line that is furthest to the left. in order to remove all the materials, we would be excavating at over 2 million cubic yards of dirt. only 1.3 million cubic yards of that dirt is needed to build a new dam. with the contractor proposed to do is a false cut.

it would remove only the excess material. they would take that first cut, remove the material, it disposed it, and then only proceed with a fine cut when they're ready to be using that additional 1.3 million cubic yards of dirt and move directly to the side. what happened is while they were working, they found what believed -- what they believed to be -- it is yet to be confirmed. if we could go back to the schematic, please. they are shown in red and yellow. the orange landslide extend potentially past even though -- the permanent cut.

we will likely not be able to cut this hillside in a two-step process as we originally -- as the contractor had originally planned. some of the large quantity of dirt, the 1.3 million cubic yards will be -- will need to be disposed of temporarily in handled twice. which will result in certainly delay is. depending on whether we rule that those are, in fact, deferring the site condition could also result in significant cost as well. right now, the work on that hillside has been stopped for safety reasons. we have brought in april -- new geologists'. . we are doing all we can right

now to minimize the cost and schedule impacts. but there is no way around the fact that there will be impacts on this project. i wanted to give you advance notice. i am thinking we will have results on these additional testing in the next couple of weeks. i will have a better idea. this is by far our largest priority right now. the largest, you know, potential impact we have seen on the program so far. >> the ancient slides, does it make the land unstable? >> id does create some instability. because these landslides are above the dam, there is no apparent impact to the actual integrity of our design. what it impacts our construction

at sequencing in how we go about taking down the hillside and how we will need to do it in a much less efficient way. it will impact the construction of the cut above the dam. at this point, there are no indications that it shows that is the case. president moran: is primarily a safety issue? >> this is a very steep hillside. trying to cut it true, it is a safety issue, too. you want your final cuts to be in solid ground. two of the landslides are outside the final cut. if it is consort -- confirmed that the third landslide crosses are final cut, we will have to modify the final cut and make it

steeper. it is more of a safety issue. commissioner torres: how ancient? >> that has not been communicated to me. commissioner torres: what do you estimate the cost? >> i have not been informed of those numbers. we're still trying to figure out the impact. we are now trying to get expedited approval for additional disposal sites. we had nine to had planned -- we had not having to dispose of additional materials. we are engaging all the resources agencies into giving us that expedited approval to be able to move that dart temporarily. -- dirt temporarily. >> are any of the materials recyclable? >> we are recycling -- we are

building the vast majority of the materials comes from -- >> is there either norma or other recyclable materials? -- iron ore or other recyclable materials? >> we are trying to minimize the distance that we have to dispose of the material. >> we have a new supervisor for that area. i was there at the swearing-in. his district is right next to calaveras dam. as well as the other supervisors. we're talking to them. >> ok. president moran: commissioners? thank you very much.

>> that concludes the report. president moran: mr. jensen? >> thank you. i have four items to cover today. i did also attend the opening of the new building and that was a real treat. it was good to see all of you there. last meeting, you had some interest in a legislative report. it is the bill to change our [inaudible] authority. it is on the way to the floor with further amendments to help us get a better rating. i have discussed those amendments. he liked them and we're hoping for some of its passage. most important, the signature of

the governor. we will continue to work with your staff in achieving that goal. each year, we're required to send you our projections of water purchases through 2018. those were sent to your staff yesterday. at this time, we project -- less than 184 supply limitation that the commission imposed. that includes service to san jose. that should be welcomed the news. it may impact your discussions on the 10th. the stock -- the status of our long-term water supply it strategy, this is the work we began in 2010. next month, we are coming out with the face to report. we have completed phase one. in phase two a, projections are

for reduced over what they were a few years ago. we still need water by 2035. we're also looking at additional reliability. the level of service adopted by the commission in 2008 was 20% production system wide. we were advocating for not more than 10%. we are taking a look at the costs and how much of an investment would make sense for the people outside san francisco to make. in terms of conservation, in the interest of many of the speakers before the commission, we continue conservation. conservation continues to be far cheaper than buying water from san francisco. that is a great incentive. conservation programs, depending on the program, they range in cost.

compared to 1700 + or 1277 for your water today. we also compared to future cost. conservation is still viable, still something we are presuming -- pursuing. that is not just to save money. it is also to meet the future demands of those communities. that is why they are doing it. if further diversifies their supply portfolio. it is part of their demands. there is a vital message behind all this. some have suggested that if we just can serve more, you would not need to fill that deficit. without regard to where you get it, we are counting on new meeting your level of service goals.

as i have testified before, one of the things we crave is certainty. you have adopted those goals for the city and county of san francisco. you committed to meeting those goals in the water supply agreement. all of our planning is based upon those goals being met. we are not planning to conserve water to relieve you of your commitments. we're planning on doing those things and investing that money to take care of our future needs. i say that to -- as food for thought as you enter your workshop next month, and to let you know that we assume you'll be needing your commitments. to ensure that you understood that is part of those commitments. i enjoyed the opportunity to attend that workshop. president moran: