took a lot of work to organize. and i think if we had been a little bit more prepared, we could have done so much more. and, so, that's what today has been about, is starting a conversation with air b & b and the other members of the sharing economy about how can we do some proactive thinking about leveraging the greater community to help come together and be organized in a time of need. for air b & b, we've taken that functionally it that we developed for hurricane sandy and we made it such we can deploy it next time within 30 minutes, whether it be here in san francisco or anywhere else around the world, to rally, to rally support and provide services. and, so, in closing i just want to thank our city leaders, mayor lee, president chiu, the department of emergency management, the bay share and the sharing economy companies

for getting this dialogue started so that we're ready when it's needed. thank you. (applause) >> thank you, nate. and thank you all for coming. this has been a great day today. we are going to get -- go back into our meeting and continue our dialogue, but mayor lee and president chiu and i believe nate and milicent also will be here to answer a few questions if you would like to. so, thank you all for coming. (applause)

>> i believe i indicated her as arriving late, but i will double check. >> okay. >> all right. public comments? miss clark, welcome. >> thank you very much, i am anne clark and volunteer leader coordinator and i'm here to tell you next saturday is the beginning of the fifth week at the camp and if you haven't come up yet, come up. we'll have 11 weeks and if you come up week 11, i am the volunteer leader that week and if you come before that, be sure to say hello to the volunteer leaders and naturalists is there. friends of camp mathier was formed ten years ago and really

started 30 years ago with a group of people who were just interested in the camp. and i hate to tell you this, but -- i mean i hate to admit it, but i was around 30 years ago when all the things that were happening good and exciting at camp mathier as they are now. i know you love camp mathier, as much as we do and i'm going to give you an "us" sheet because we're celebrating our anniversary officially as camp mathier and on the back are the donations that we have made in terms of what you will find and the things that we have invested in most is mattresss and bunk bed frames and practical bed frames, as well as a dining room. so we want you to sleep well and eat well while you are at camp mathier, so we hope to see you soon. we hope you will be up this year and if not this year, put it on your calendar for next year and look for us, the volunteer leaders and your naturalists, who will be up

there at camp mathier. so i will give you a copy of this and thank you for all of your support and assistance and we really appreciate the staff of the puc who have been so wonderful in helping us do this work. they have been just terrific. thank you very much. >> thank you for your volunteerism and all of those who assist you. any other public comment? >> this is what i want to say

when we have a particular type of rain in a

what we need to do as we know in the area where cesar chavez is, we can have containers much like they have catchment containers in las vegas, huge boxes that commissioner anson moran can speak to. that is how we need to address thein in and the yang.

so one of the commissioners is not here, but she is always into, like you know gray water and there is a place for gray water. i just wanted to speak on that during public comment, because i know that we have some very astute, experienced people on the commission, who can take note of it. thank you very much. >> thank you very much. any other public comments? moving to item 5, "communications." any public

comments on communication? being none we'll move to item 6, adopt a resolution of a resolution supporting the nomination of anson b. moran of the ac waawaa. we appreciate your willingness to continue to do that. is there a motion >> so moved >> motion is carried. congratulations commissioner. report of the general manager. >> julie labonte has been named 2013 government civil engineer of the year by the american society of civil engineers. it's a great privilege to win such an honor and i wanted to personally thank her. she is going to go to charlotte, october 11th, where you will receive the award. it's an amazing accomplishment for julie and represents the department well. julie why don't you come up and say a few words and then you

can do your presentation. [ applause ] >> >> thank you. the award certainly did come as a surprise, but i was obviously very pleased. as part of my update today i wanted to first go over some key milestones that were reached in the last month or so and two of those milestones relates to two agenda items on your consent calendar today. it's the closeout of the crystal springs pipeline no. 2 and pipeline no. 3 and 4 crossover and i'm pleased to report in both cases those were completed on schedule and one was completed with change orders adding up to 4.9% and the other 4.4% and so well below the 10% allocated for a project contingency. so we're very pleased with that. also, in recent weeks, we

reached substantial completion on two key projects the water treatment plant and san joaquin western segment and many both cases we have beneficial use of those facilities, increasing overall reliability of our system. briefly i will give you a very brief update on the 6 mega projects ongoing. on calaveras we're making good progress taking down observation hill and as i discussed in the past in the dam construction projects there are two major risk areas, you know? some risks associated with what i call "site preparation." that includes excavation and the quality of material to build the dam. as you know under the first risk category some of those risks did materialize in our case and we had significant changes to the projects

associated with these geological unforeseen conditions on observation hill. we now have a signed change order, so that is behind us. now we're starting to experience some challenges associated with the second category of risks. we have had some of the rock fill material that is being generated on-site to build the dam is of lesser quality than first anticipated. so we need to be more selective in the excavation and placement of that material in and around the dam, which makes us a little less efficient and now we are proceeding with activities. so right now we are carrying $1.5 million trend for the additional costs associated with those challenges. no major schedule impacts at this point associated with those conditions. new irvington tunnel, we're now less than 1500' from holing through. however, we have been experiencing very significant challenges over the last two

months with high groundwater pressure and we have had to do an extensive probing and grouting to minimize inflows. so our whole crew is anticipated for september and i would like to point out that the groundwater management challenges will continue even after hole-through of the pipeline and installation and grouting of granular space. so we're not out of woods there. bay tunnel we installed 800' of pipes, but we had some challenges with equipment failure. i'm being told that these equipment problems will be solved by next week. so no schedule impacts due to those challenges. seismic upgrade of bbl3 and 4 at the hayward crossing. we are proceeding with pile installation at the crossing. we are also proceeding with the design and fabrication of

one-of-a-kind slip joint on the critical path of the project and so we're following those activities very closely. what is critical for us on this project is a major shutdown facilitates the tie-in of those improvements. that shutdown will take place in late 2013/early 2014. so we're working really hard to make sure we're ready for the shutdown. harry tracy long-term improvements we're peaking on construction activitis there and currently tracking to be complete as scheduled. we just recently completed our third major shutdown for accommodating construction on that project. the plant is now back online. this was one of our most challenging shuts down and we're sure glad to have it behind us, and i'm sure operations is as well. because of course, whenever we lose one of our source of supply, the risks on operation go up significantly.

progress there is very good approaching 50%. crystal springs, they there is good progress being made. it hasn't officially been transferred to operations yet, but could be used, if needed and i'm being told all improvements except for one outlet structure in san andres are expected to depleted by the end of the year. still lots of underwater challenges there that come up almost on a weekly basis, but we are addressing them diligently as they come up. so that is my update. >> questions? yes commissioner moller caen. >> i just wanted to stay congratulations on your award. >> thank you. >> and also add that if you were in charge of the bay bridge, we would not -- [ laughter ] thank you. [ applause ] >> commissioner moran. >> i would like to echo that

as well and while the award may be a surprise, it's certainly no shock and it's well-deserved. >> thank you. >> any other comments? any public comments? you are done? >> yes. >> thank you very much. item no. 8, a joint report. >> did you want to start first or steve. >> public comment. >> yes. >> i would like to join you on congratulating julie on her award and very well-deserved and i agree if the bridge was in her hands we would all be better off. >> we'll pass it on to the governor. >> mr. ritchie, you will start? >> yes. steve ritchie earnings assistant general manager for water and bawsca on water supply on our system and if we could have the slides up,

please? there we go. okay. first i want to review our water supply levels of service. these are obligations to our customers. on the goals and objectives front it's meet customer and water needs in non-drought and drought periods and there are various parts of that. meeting average demand of 265 million gallons per day from the sfpuc watersheds from non-drought water years and the second is meet delivery needs while limiting rationing to maximum of 20%, which translated to a significant number and most of the burden for that shortage under our current arrangement falls to the wholesale customers and that is a significant figure that we need to make sure our eyes are wide open on. the goals and objectives, diversify our water supply options and improve use of new

water sources. the second piece was some of the specific details in the wsip approval in 2008; which called for full implementation of all wsip improvement projects, water supply delivery to the regional system customers, 265 mgd, but at this point the commission added that the expectation was that san francisco would produce an additional 10 million gallons per day of conservation recycled water and groundwater, and that our wholesale customers would provide an additional 10 million gallons per day of conservation water and recycled water and groundwater, the transfer of 2 million gallons per day and grandstrand without storage and recovery project, which i talked about at the last meeting in relation to lake merced, the acqueer storage project we're doing

conjunctively and shift to the groundwater in dried periods when the basin would have recovered. that is an important project making sure that we have dry-year water available. even with the projects there is a 20% shortage that i talked in the first slide. so if we did not akoch accomplishment these projects there is a shortage allocation plan among the customers and the 20% is systemwide. so that applies very little to some people. mr. jensen can talk about that.

i'm not surprised there are. certainly in agricultural districts there is a much greater hit going on a regular basis it seems in the central valley. >> i don't want to move ahead of your presentation, but i will get to the conclusions. >> okay. the other things that i wanted to make sure that we were aware of in obligations are in the water supply agreement. where we agreed to deliver to the wholesale customers up to the amount of supply assurances, 184 million gallons per day. that is what we guarantee our customers. so when we talk about 265 mgd, being delivered by the system, 184 of that is our wholesale customers. that is our obligation to them and the residue of whatever is left of what we have available is san francisco's portion of that. so that is a very important consideration going forward and that 184 million gallons per day under the agreement is in perpetuity and

is an obligation going on forever with our customers and the last piece, talking about san francisco completes construction of the wsip by 2015. we wrote that into the agreement and the contract with our customers obviously we're not going to make that now and we're all aware of that, but it's in the contract and is an issue hanging out there in relation to our wholesale customers. i want to talk about where our supply shortfall is. first on the regulatory front and i made this presentation a little bit before. we have flow obligations when we complete projects on san mateo and alameda creeks of combining 12.8 million gallons per day. those are instream flows that we're required to put down on an average glare year and that is a shortfall on an average year that comes basically off the top. the recapture project that we're retooling right now may offset a portion of that at 5.4

million gallons per day and that means regulatory commitments we have a shortfall of water that will go to the streams, but not be available for our customers. and then there are policy shortfalls, which are the ones that are decisions that the commission needs to make by 2018, which is what happens after 2018? will we make san jose and santa clara permanent customers, not interruptible customers? and that guarantee would be 9 million gallons per day. also will the commission decide to meet future wholesale customer demands, which are currently projected at 4.3 million gallons per day in 2035? so combine there had is a decision of is there a willingness to provide an additional 13 plus million gallons per day to our customers? so if you have those two together you end up way total potential shortfall that

potentially constrains your decision-making up to 26.2 million gallons per day. that is the largest shortfall that is currently foreseeable, but the regulatory one is one that is upon us now and there is no escaping that one. we also have future supply risks and demand uncertainty on the supply risk front we have talked about some of these. the pedro process is going through the ferc process and that is expected to come to completion in 2016 and obligations on the tulle river from san francisco. we have to deal with that issue in the future and we don't know what the answer to that is yet, but it's a risk out there. the state board water quality control plan for the bay delta, specifically on the san joaquin river is out in draft and 35% of unimpaired flow during january to june and that could impose a large obligation on

san francisco. the way its written it's unclear, but it's a hit to the water supply that we would have to deal with and there is also the flow criteria for the delta ecosystem that the state board adopted as the result of the reform act of 2009 that calls for higher levels of unimpaired flows going down the riff. all of these regulatory items represent risk to us and that is something that we have to deal with and at some point some decisions may get made that will result in an impact to us. there is demand uncertainty. we're starting to see rebounding demand with the improving economy and the san francisco skyline that i will talk about later current population and demand projections there, increasing significantly is for san francisco. those are part of the smart growth proposals that have come out of abag. so the whole point of this is that try as we might to make projections of both supply and demand, there

is a lot of uncertainty that we have to deal with out there. the same time we're dealing with various water supply projects. these are the up withs that are part of the water system improvement program. first in the regional water system supply, again the alameda creek recapture project. that is a plan to try to recover some of the water that were putting in for instream flow at appropriate times of the year. on the regional system dry-year supply the two projects that i talked about earlier, a transfer potentially at this point with the oakdale irrigation district is a possibility for that 2 mgd of dry-year water. thereto a corrective number for the storage recovery of .2 million gallons per day in dry-years of those dry-years are really important. the retail supply front for the san francisco project, we talked about last meeting we'll be generating 4 mgd of potable groundwater that is net

increase of 2.8 mgd because we're going to be replacing golden gate park igation with the groundwater with recycled water and that makes it available for potable uses. in the west side we're talking about that for the golden gate park and the eastside there is a projection as well to produce a cowl couple of mcd for recycled water for san francisco. that is our current focus to make sure these projects happen. replacing pipelines are really easy, but additional supply represents complexity that makes these very challenging projects. additional water supply options we're always looking at more conservation and you think i made a presentation about a year-ago about changing out fixtures and working with daly city to increase their plant capacity of maybe 1.3 mgd. south san francisco for recycled water we had an mou

with them last year, but their level of interest has diminished and it's not that important in their capital improvement project. there is a small project for menlo country club and a big one we're working on and will bring to you later this year is the regional desalination project. that could produce up to million gallons per day. but that will be a challenging project to move through the approval process. we talk with the oak dale district about the transfers, but that is going slight slow at this point. we want to make sure that we don't run into my bumps out there. we have the non-potable supply program that you will have a report on next meeting, how we use alternative supplies, grey water, black water recycling and lots of things going on there. it's not a lot of water, but it's important. ultimately, one of the things that we talked about before was

san francisco has more water then its demand in the future. san francisco will forego some of that and provide some of that as the guarantee to our wholesale customers and when we first talked about this t look like 10 million gallons per day, but now it looks like 5 million gallons per day because of new projections shown by the yellow dots. this is the water availability picture in multiple dry-years with increased demands. and each one of those colored bars represents a different type of project. the most significant thing is in the last year out there, again, there is only about 5 mgd of extra water that we would have available. and that represents the future for us and so we need to think hard about what we want to do with that capacity. so that is again -- those have been new projections that we have been using this year and you will see next meeting a water supply assessment for some of the big

projects out there, that talks about supply. that is going to be available there. on a timeline basis, this is how the project decisions line up. the upper three are the regional groundwater projects and the local groundwater projects. those will be coming to you for project approval late this year, potentially early next year to move that forward and get those supplis in place. the recycled project is going to take a little bit more time. we're just starting the ceqa process on that this year. we do have the eastside recycled project and various recycled water projects there. not a lot the water, but every little bit counts. and then in the last of the blue bars is the regional desalination project and that is probably the biggest decision we'll make in addition to transfers because that is the way to generate water to make that shortfall go away.

those are the big things that are necessary to actually resolve that level. again, we don't have anything on the transfer line because discussions are going so slow on this front. so the bottom line out of all of this, really comes down to these four things: we have a water supply shortfall with regard to our contractual commitments and that is a problem we need to remedy. secondly, we'll close that gap, but it won't eliminate it because of the regulatory shortfall we have out there. the only way to close that gap that is apparent right now is through the desalination project or a significant transfer or some combination. these opportunities are available, but bringing them to fruition is challenging. this continues to be a challenging road to get down, but we have the obligation to do it and we need to fulfill that obligation. so tha