just as we do every year, assuming it is a very first year of an eight and a half year design drought. 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 obligation to

continue these negotiations in good faith and wanted to focus on those principles. we are trying to move the ball forward. i understand those comments. i'd be fine if we didn't open that door. >> it may be open by testimony at the public hearing. >> that should be the order. we are adjourned.