community building and day care center for retarded children. >> president torres: excuse me doctor jackson. i want to make sure the camera is on you not on me. can they hear my voice? someone speaking in a want them to think i am being a ventriloquist for you. we made a phone call to toya moses, he was supposed to be involved in getting the building lease, i don't know to whom. i want to make sure you all understand that we are not going to - i am talking about we in bayview johannes point, will not allow anyone to take away what we have fought for.

when this commission took over the southeast facility your responsibility, 100 -- circle, as well as the facility day care center. those belong to the community. for community use, not for other agencies to take over out buildings. if there are programs for our community, let us make the decision of what we want.

-- i want to make sure you put that in your budget. come and get this honey. >> what would you like for us to order? >> i don't have taste or smell, since i had my operation. what i bring to you is not for doctor jackson; it is for the community. i want to thank you all. i wanted to take everything i said under consideration and give me my building -- leave my buildings alone, thank you. >> what is the building being used for? >> i have no idea. >> doctor jackson, what changes happened in the building? >> as you know, there has been construction at

i was at a facility meeting last week. there was discussion about 100 whitney young circle; whoever is involved in that, i don't know what staff it is, they even wanted the community room. they wanted the office space that we have their for the southeast facility commission. i'm tired of people coming in and taking away. it is unfair. we have to fight to even have that commission set up because as i told you before, roger boyce wanted us to be a committee. even the jobs -- i am getting complaints. my community is not getting the jobs. it is too much. if we have a budget for outreach we have these --

four separate languages in our community that don't speak english and we need interpreters, winged staff to go knock on the doors and talk to the people and let them know what is going on in zip code 94124. i'm not concerned with you going to the head of district in because you don't know anything about district ten. the only ones who know are you two and three. you know me. >> president torres: any other public comments? welcome to the young people who are here representing the working men and women of san francisco. we welcome you to this hearing and you are always welcome to come by. >> good afternoon my name is robert woods. i am the chairman of the black human rights human leadership and also a ged instructor in

abu, third street, where we have the process and have six kids out in the committee approved and they have gotten their ged. what i am talking about, why i'm here today, i on one of the consulting teams back in 1978, when the southeast facility was being brought to the community, and i was with a consultant team that won the contract that we canvassed the community and got the community involved in terms of what the city was going to give them for accepting the southeast facility out there. and we find that it's a tough sale.

i don't like to face my community at -- after telling they were getting something for accepting the waste coming into the community. that is the only thing we have out there. you take that away from us and we don't have nothing else out there. we need dollars to train, to go out into the community and make sure that the community gets involved and nobody is doing that. so i say that, we have spent a lot of time out there, and we convinced a lot of people during the westbrook

days; we got the committee involved to accept the waste coming into the community and that was what put those facilities out there, what they were getting for accepting the waste. we find the city is now doubling back on their promising coming in and taking back what the community had accepted. to provide something for the community. we do not have that anymore we have been threatened with taking that away. i say to you you can't do that. sure you can but i am saying to you you can't do that. i spent time out there convincing the people that they were getting something for accepting this facility and here we are, looking at nothing. thank you. >> president >>

>> >> as far as my understanding of 100 whitney young circle, we will look at the ownership, what we received preliminary from the city attorney is the puc does not own it. we will confer with the city attorney and maybe kind of do the history of that as well. as far as the southeast community facility, we are committed. in revitalizing that area. we do plan to work with the community and ms. jackson and others to do what we need to do to improve that for the community. >> (off mic)

>> president torres: let the record show that mr. moran was pointed out by doctor jackson. >> most of my knowledge of those agreements was handed down from jim jefferson. unfortunately he is not here to refresh my memory. >> ofm (off mic)( laughter) >> it occurs to me that the other person who was around at the time was don gehrer (sounds like) and we can check on his recollection as well. >> president torres: and we miss jim jefferson. he was a good man. communications, item number five. any public comments on communications? yes? >> is the indication we most

recently received is included in item number five or included in a subsequent agenda? >> president torres: good point. we should amend the two included since it was passed last evening, we have all seen it but it should be included in the minutes. good point, thank you vice president courtney. >> i continue to be very please with the audit program in place; it is as comprehensive and transparent as any program program i have seen anywhere. i want to continue to support staff to make sure that the audit program is rigorous and copper has a as it is.

it tells us things. some of the project we have for local water supply are lagging , difficult projects to bring in on the original schedule. that is not to point fingers and blame, but it is something that we need to know. the can of information is important to us, as commissioners, and important to the public. the amount of information we make available about the inner workings of this organization is very good. i think it is probably a record or a model in public agency disclosure. >> president torres: all right we will move on, without objection of the commission business, item number six. anybody want to raise an issue? item number seven, report by the general manager. >> first item is quarterly budget report.

>> okay, good afternoon, todd rydstrom, cfo assistant general manager. we are here to go through the third quarter budget results to highlight the key variances both positive and negative. water sales and use have been up; we had a very dry january february and march, we had higher retail and wholesale sales about 4 and 2 % respectively; also the fruition of the early repayment for capital, that is reflected now in the report just as you previously authorized. we also have significant savings in pcular u will see bosco financing flows through the budget in two ways,

both as a revenue, and 109 million of the 356 million dollar early repayment was used to early payoff bonds. i wanted you to make sure you recognize that. in addition with your approval it allowed us to refund what was a 2.5 million dollar debt service reserve on a very old, 1991 bond issuance. thanks to your approval that is going to save us money on every future bond sale because it allows us to issue new bonds, at a lower cost because we are able to resize our debt service reserve and this ties up to approvals that you gave us when we re-wrote an updated our indenture a couple of years ago. it is savings that is projected in by way of comparison over

the next three to five years when i next come before you to ask you for future authorizations for the remainder of the recip bonds, it will save about 35 million dollars in today's dollars just by allowing us to resize those reserves so thank you for that. that is the most significant stuff for water. >> president torres: we've been told that we have only a 17% snowpack. i have also read that many water agencies are suggesting that they will only be able to provide 35 percent of what needs are out there. how does that affect our budget? >> it affects our budget and how we plan to do water releases and plant runoff. for this years budget, it is largely assumed to be nearly complete and projections are not expected to significantly change. for next year, our water system will be run just as we do every year, assuming it is a very first

year of an eight and a half year design ou the water managers are doing water releases and power generation along those water releases, assuming that we need to carefully plan those releases for what ip a potential dry weather, multi-year dry weather affect. these numbers are as good as it gets. we will next know visitation come october, november when we have some of the early rainfall but every town in california every single year what really matters the most is typically our november through march snowfall and how much of that precipitation specifically comes in snow versus rain. >> what are the projections for next year? >> for that i will respectfully defer to our water master here.

>> president torres: and both of you understand there is always this year out there that is the snowpack is that 70 percent, it is going to be a long-term drought? i know you can't predict for them but you can account for them. >> yes. this year we will fill our reservoirs; there is sufficient snow for that. we will not anticipate putting in place any rationing acquirements. the fact that it is dry, this is an essence of nature, people tend to water the yard to little more in the first year of the dry season tends to see an increase in water use but our projections have taken that into account so looking at an eight and a half year drought, we anticipate that as we see a second dry year we probably should consider going into rationing there is no good way to predict.

anybody who says they can is fibbing big time. >> the other key changes are on the power enterprise. revenues are slightly below because power sales are slightly lower to is a foul in the districts. even though we have less power revenue we have less power purchase cost as of the time in need of purchasing and slightly lower pg&e interconnection agreements. we will keep you apprised of those updates. we have a checking account balances so to speak. our projected -- you will see that it is just as you plan, large balances in our water enterprise, nearly 300,000,000 dollars with the bosco repayment, used exactly as you approved.

this is the very first time in history that we have actually had every single checkmark boxed in the scorecard and the report card of how reserves are satisfying all the key reserve ratios, resolutions on that. i'm happy to answer any questions. >> president torres: any questions? >> i would like to congratulate you on that. those important data that you have given us. that is quite remarkable. >> president torres: well done. >> thank you. >> my next item is julie labonte, -- update. >> good afternoon commissioners, my remarks will be brief. i think your packet includes a copy of our latest quarterly report and i wanted to point out the fact that that report includes the latest budget and schedule, revised, did you approved in late april.

also the report includes some format changes at the front to address in particular one of the recommendations by bosco related to project contingencies. we now have a more detailed accounting of the contingency remaining in our program. finally, i also wanted you to know that we are currently working on two documents, a change notice report to the state that will be completed by the end of june; the report will highlight the impacts on -- goals that the project delays will have. i want to reiterate that those los goals have been changed, achieving full reliability according to those goals has been delayed because of our project delay and that will be documented. there is also a memo forthcoming to the commission that will address some of the

recommendations that bosco have put forth earlier this year when you proved some revisions to the -- project. those documents are in progress and should be completed by the end of the fiscal year. that is all i have. >> president torres: any questions? thank you very much. >> that concludes our report. any public comments? seeing none we will proceed to item 8. >> consent agenda, there will be no separate discussion of these items was a member of the commission so requests in which case the matter will be removed from the calendar considered separately. >> president torres: anybody wishes to remove an item?

any motions? second? any public comments? all those in favor? alop opposed?motion carries. item 9. >> authorizing the general manager the authority to execute an amendment . (reading from the agenda) >> president torres: welcome mr. cruz. >> good morning mr. president, members of the commission. it has been the policy of your commission and the puc's practice to extend opportunities to the communities in which we work in which we serve. in addition to our efforts at the mayors office of economic development we have partnered with a -- organization to

assist with grassroots efforts and to work with local, organized labor. a week ago in fact friday i was related to be at the breakfast of champions down and san mateo county, were job trained recognizes seven cisco public utilities commission as the employer of the year because we threw our contractors hired 96 graduate, full-time, blue-collar working wage jobs working on such projects as harry tracy. through our contractors work we have been able to extend his opportunities to the communities in which we work. through our partnership we have hired 300 people who were previously unemployed, underemployed are making the transition from a correctional institution to full-time employment

. we have representatives from three of our partner organizations, job-training, youth build and cypress mandela. those organizations cover san mateo, san joaquin, alameda and san francisco county. >> is there a motion? >> i will move it. i think is also appropriate for the people in those organizations to stand and be recognized. >> president torres: thank you commissioner moran. (applause) >> it has been moved in seconded. we are going to vote on it. all those in favor?

alop opposed?you have helped the motion carried. thank you. item 10. >> approve amendment number 1 to amend cs 946 increasing the agreement by 500,000 dollars. >> steve ritchie, assistant city manager for water. this is for continuation of our work on the upper -- river they can share our flow releases of providing the best habitat value downstream from our dams. >> president torres: is there a motion? >> so moved. >> seconded. >> president torres: seconded by commissioner vietor. public comments on item 10? there being none, alif all those in favor?alop opposed?motion carries. item 11.

>> approving construction contract, bioregional habitat restoration. >> mr. cruz. > emilio cruz. during construction we had a major storm. as part of the storm there was damage done to the construction site and some of the environmental components of our project. he item before you simply to make a change order with the existing contractor repair the damages that happened during this natural storm in order to have the project when it is completed meet all of our goals. >> president torres: any discussion? >> so moved. >> moved by commissioner vietor, seconded by commissioner moran. any public comments? all those in favor?

alop opposed?motion is carried. item 12. >> consider and adopt the proposed wholesale revenue requirement for fiscal year 2013-14. >> mr. rydstrom. >> the item before you is a material you reviewed the last meeting and requires adoption by this body reflecting what is a 16 percent decrease in the rates as well as the updated rate for late charges and a discount for untreated water as we do each year. happy to answer any questions. >> president torres: any questions? motion? moved by commissioner caen, seconded by commissioner moran. any public comments? there being none all of those in favor seemed five by saying aye. opposed? motion carries. move to item 13. motion to approve --

i'm sorry. public comment on matters to be discussed in close session. alright, i need a motion to assert the attorney-client privilege. >> motion. >> second. all those in favor? >> item 18 anticipated litigation as, find this item 19, item 20, consultation with agen >> we're back. motion to reveal? >> motion not to disclose. >> president torres: all those

in favor? >> we are announcing action was taken on items 16 and 17. any other business? >> we referenced the communication received from the san francisco labor council, item cca hearing on the agenda. i wanted to make a reference because i am an elected member of the san francisco labor council. i was not in attendance at the executive meeting nor at the meetin glast night where the item was authorized by the elected body.

there have been a lot of changes, i've myself clear about the changes. there has been a lot of support form the advocates, the kids here today, evaporating. it would go a long way to gettting us to where we need to be by staffing picking up these 3 short items.

>> president torres: without objection that should be the oder. >> i have a quesiton. it doesn't say here, they are asking us to reject the contract with shell. i don't know the origin of that. i don't know if the staff could uncover what some of the reasons are for the labor council taking that position. is there some issue they have with shell? >> that should be the order. >> i intentionally avoided asking any conversation because we have the