i'm really proud i tried to pick from board categories we have a lot of seniors and youths and from a board range of cuts from mental health to hiv and we've heard about homeless and i shelters and dropping programs. but i did look through all the cards i got a real good sense of who came out tonight. i hold office hours twice a month please continue to come over the next month. thank you. (clapping) >> okay we're not going to

close out the budget until we've read every single card. i'm going to make sure our staff look at every one of those for the time you gave us tonight. i want to thank the mayor's office to put this ail together and christen thank you very much. tonight you've seen the cameras so those of you who had the opportunity to speak thank you for behaving. we've got a lot of work to do we're going to work for you to make sure this budget and this very, very city becomes and stays successful for every one of you. appreciate our time.

happy new year, everybody. i love the fact that we are doing a tournament here at the center. when i was in eighth grade i played on a basketball teechl. team. i have to admit i wasn't

very good at it. i always aspired to be an nba player. regardless of playing in college or nba, i expect many of you have be leading us because of the leadership skills you are learning on ♪ >> our concern is they are going to be here for a couple of days and everybody is going

to have a great time. and we have three days of them and 362 days of everybody else using the park. ♪ ♪ >> this is the fifth year of our partnership with another planet entertainment, where another planet puts on probably the greatest music festival in america for three days here in golden gate park. >> we work with them a lot to prevent and not have any problems.

and what we have done with them is have roads built and have pieces under whatever equipment is parked. they do all of that. and then when it gets removed, they have very little damage. >> for me as a gardener and having to stay here and work after they leave, i am more than happy when i see their greening team come through and green everything up. >> we have given them pieces that they can use, and pieces that they can't use. so we are allowing them, again, because we have irrigation in the ground so they can use, and if they put up a tent they can stake a tent in some places, they can't stake a tent in other places. so we are protecting the golden gate park asset. >> so what is really special about the partnership is not just the incredible music, that about 70,000 of our closest friends are listening to right now, but for the respect that everybody has for this park and the work that we do with the outside land music promoters to make sure that in a few short weeks, what you see out here will again be a beautiful,

green, field filled with children playing soccer. >> everything pops back up, we are getting better and better as the years go by. bringing it back real quick, that is what we do. we bring the grass back and make sure that the plants are not destroyed. >> we work year round to plan for this event to make sure that all of the waste is picked up. 77 percent of all of the waste is diverted or recycling or composted. >> the gardeners work with another product operation staff to make sure that first and foremost we are protecting the incredible trees, meadows and the incredible open space that is golden gate park. >> making the crowd make a choice of which band have want to see. so we don't have everybody going to one stage like a stampede. that didn't work for the event producers and it didn't work for us. we worked together and found

solutions and it is working. >> you see a lot of people out here having a good time. you have no idea, how much work and planning has gone into this to make this sustain able and eco friendly park the greatest park in the united states. ♪ >> san francisco is one of those incredible cities in the world. i would rather be around , than like flat land, you know what i am saying? >> the fact that it is separate places it gives a lot of space for the amount of people that is here. i really appreciate that. ♪ >> san francisco, what is not to love? >> a blessing with the space and a blessing being here and everyone else being here on public land and sharing this music and vibration together and we are grateful for the city and the park and rec for making it happen. >> we are keeping it cleaned by picking up, everything that we

need help with, we can't do it without your help. >> it is amazing for san francisco and the music scene. this is a job creator and they hire over 3400 people. we bring in 50 to 60 restaurant and winerries. >> it is crazy. and it never stops. ♪ >> i only came to see stevie wonder. i just got a ticket. i am so excited. we are so blessed out right now. >> it is amazing, i came all the way from israel to meet the people and hang out and she was amazing. >> the environment, the people, everything. it is like everyone has so much energy. >> hey, you are beautiful. and i love you. >> why? because... it is definitely a lot more fun than being inside. >> so far we have had zero

problems. it is a long-step process, a lot of thinking and people involved. so we think that we got rid of all of the problems that could happen. they are doing it, and we are doing it and everybody is doing the best that they can. >> it is a wonderful out reach >> come. >> it is beautiful. ♪everyone.

all right. welcome to the show i'm sorry. government and oversight actually, we have a pretty exciting agenda today, i'm your chair t

before you to e >> i will be chairing this committee. i would like to thank sfgtv for covering this meeting. mr. young, do we have

announcements? >> yes. please close all electronic devices. items active today will appear on the may 14th, 2013. >> thank you very much. we have a long agenda here. please keep moving. please call item no. 1. we have mr. kelly head of puc. perhaps we can hold for questions at the end. >> that would be great. thank you for being here. so knowing that you have a long day ahead of you and you just finished yesterday's meeting this morning. what i would like to do is go over our presentation

and i would just want to thank you guys ferrel and members of the budget committee and manager for the puc and i want to let you know this is my first presentation as my new role and it is to deliver good news. it's always a great opportunity to be in that role. also this is our first time preparing a two year budget and this is a first midyear review. so i would like to spend time to walk through the presentation and just talk about all the changes that we have and mostly good because all increases that we have experienced we are able to offset it with savings and then the second major thing i want to talk about is two of our major infrastructure improvement programs which is a

water system improvement program and also the sewer system improvement program and really talk about how the rates are structured and keep that on track. and so one of the things also is that because we do a 10 year capital plan and 10 year financial plan, it pretty much helps set the vision to where we are headed to maximize opportunities. we want to go over that. so as part of the presentation, the focus today is to really talk about where we stand in mid cycle update an also i want to talk about the puc priorities and improvement to the infrastructure. and we'll talk about the budget adjustments. as we talk about

the presentation one of the things i want to illustrate and hopefully a key theme thank you walk away with is how the puc approach the physical balancing of three of our core priorities and our first priority is to really deliver high quality 24/hour for water and power and sewer. our second prior is to maintain our critical infrastructure to ensure our assets are in a state of good repair and also which is equally important is to preserve rate affordability. we think those are our guiding principles. in order to to accomplish that, we have certain levers that within our budget that we really try to control and so the first one is our operating budget and staffing and for the most part we keep that pretty much flat other than inflation as it

looks at chemicals and labor cost and so for example, in 2013, 2014, we had 2500 and last year we had 2440 people. we've been able to get low cost financing and we've been able to lock in some of the lowest bond financing rates since the 1960s and we are also taking advantage of refinancing some of the bonds to take advantage of these low rates and together we are saving over $500 million. so they have done a great job. the other lever is measure the capital improvements. we have done an

incredible job to make sure our infrastructure is we keep it in an a state of good repair. that's another important factor. so i want to move into the mid cycle budget updates and so as you know the puc is a large city department that has three enterprises, water, power and sewer. we've had a lot of successes over the past year an i want to highlight a few of them that has a few budgetary impact. on the water side you are very familiar with where we are. we are nearly 75 percent completed on the we sip. one of the big stories that happened last year is we worked with

bawsca. the other major component in the power side is we are moving to the cost services. our an operating budget is close to -- 50 percent of our operating

budgeted is associate to water in regional and city. then we have 17 percent is with the water enter price and about 29 percent is with waste water. what we have identified is water facility maintenance unanimous and able to offset that with some savings in capital projects. will is in our water we saved $3 million in savings to keep us in regulatory compliance and that was able to we realize the savings with capital projects and also we didn't do a water

transfer that allow us to use those funds to fund those projects. and so i think that was a great opportunity there. so as part of the 10 year capital plan we are proposed $7.5 billion. capital improvement plan over the ten years. i wanted to quickly go over what are some of the reasons for the increase. the water side of the $76 million we had regional water about $5 million with the regional water projects we have identified and system in monitoring enterprise which included about $13 million, water storage facilities and we had 9 other projects and that led for to us

increase that water $76 million on the awsf which is our auxiliary water supply system which is $130 million increase that we have. a lot of it as you remember 2 years ago the awsf was transferred to the puc and the earthquake safety and emergency response bond, as you know it's under way to upgrade systems and pump station. the plan is to go to the ballot in 2014 for a hundred million dollar bond which is included in that line item. as far as waste water, when you look at a capital plan. we have a one year capital planning and the ten year is rolling. every year one year drops off and another year comes oun on. the

different is the one that adds and the one that drops. it allows the case is we move the digester of the project of the improvement program we move it ahead in 18 months. that is the major reason on the water side. on the heche we have the mock sons. on the heche power side we wanted to changes are similar to the waste product side where one year one dropped off and we paid for a lot of the power because we are

providing the power as transbay and we had to buy a lot of equipment. the propose capital budget, the changes is about $42 million that we plan to spend less than we anticipated. we are actual reducing our budget and the two major factors is we did a validation for the program an we aligned and scheduled some projects where we were anticipating spending more this year which we were planning to spend a couple years out. so we experience some savings there and then the other big thing is that we reduce financing cost about $20 million because we had more cash because of the bawsca repayment. i have

several slides which go into detail, but i will skip over them in the interest of time but the bottom take away is for every increase we have to pay to cover it. i just want to highlight that. so, i just wanted to talk about our upcoming puc priorities just to give you an idea of what's coming. and, again, we want to kind of recap that, the news was good, we had our cost increases which we were able to cut in other places, but the main thing is we are living within our means and the two year budget cycle served as well. again, our core priorities, are delivering high quality 24 hour 7 day a week

essential services and also make sure our infrastructure is in great repair. we are now looking at our sewer system improvement program and those same principles apply to how we go about dealing with the challenges. and so as annoy we -- you know we have a very old system and we've been pretty much operating it limping along and it time to make a new investment. we have invested bring the water to the citizens of san francisco but we haven't invested in taking the water and treating it and putting it into the ocean safely. that is the mantra that we are focusing on. as you know that we have some old infrastructure