distribution lines and we have 300 to 400 that we need to replace. we have slip that will be looking at what we can do between now and winter and then once again in the spring. the damages assessments were 83 percent complete. looking at our facilities we've taken care of the immediate debris. there's still work that needs to be done. the and distribution polls are in process and we hope to have most of those done by the end of the month or some time next month. and we're starting to clean up the culvert in the event of fall snow and rain. i'm going to turn it over to mr. rydstrom. >> before you shift, what facilities were impacted in early intake.

>> well, we lost two houses. one house completely and one module home partially but it's gone. the distribution lines with an early intake. we might have issues with slope stabilization behind the switch yard that we need to look at but beyond that, there was some equipment that was a lay down area. the switch yard was lost but that was about it. >> so good afternoon, todd, i'm the cfo. i wanted to walk-through with you a few of the items as far as recovery. so as we migrate from the urgentcy and move toward the recovery, we're figuring out where to maximize recovery dollars either from insurance that we have or through state and federal sources so we're looking at boths. updates on where we are, some of the losses will be covered by the

property insurer. the adjusters have been out there for three or four days. they wrapped up that work last week and now they're in their waiting stage waiting for us to submit to them and what we believe the cost are. we need to do further work before we're at that stage being able to submit that claim and part of that including doing our assessments and wrapping up those assessments so we have all of our documentation in place to help justify the claim we will be making. a lot hard work is happening with the state attorney office. thank you to mrs. ambrose for that. the tracking of the cost have been put into case. we know where the dollars are going and what expenditure it's for and the time that it was spent either to address emergency work or potential permanent

recovery and repair work and that's required by fema to be eligible for reimbursement. to the state. the disaster act funding bucket. those major buckets of funding we still don't know if they'll be available because the state money is still subject to govern approval that it is available in additionally the public assistant funding is subject to a presidential declaration and that won't be made until a consolidation from all cost from our county and the city of berkeley ands so we're working on that and we'll be meeting with tawada county to further the claims activity. what is eligible for recovery already is the fire management assistant so the fire department and our order are

recovering those. those are buckets of recovery from state and federal funds. the urgency is still continuing even though it's not an act or not as much fire activity and that's because of fall rain and erosion and slope conditions as process, i'll be before you deputy carlin mentioned. the telling you how that's going because it could take up to a year and they come back after the fact and do audits to make sure the numbers tie if eligibility for reimbursement did occur. insurance reimbursement takes 30 days at best and that's after they are reported out to you and we get an early indication if it's an accepting claim. the damage to bring you up-to-date on the

most updated estimated damage cost, it's summarized here for you and it's broken down into the water enterprise and power enterprise. if summary it's $40 million of projected cost of which some of that will be he will yibl for insurance reimbursement. but it's a lot of work between now and what those final numbers are as we hammer through the line of the contract and get the final condition assessments. the major categories that you see there are power distribution. the home power house in particular the roof that dgm had previously spoken about as well as ropes, our roads, slopes and bridges, so about $40 million of cost. the commission updates that still needs to come before you is the

burn area emergency response team report and we expect that to be as early as today or tomorrow. agm crews is working with up country as well as agm richie to do the assessments, the condition assessment work, both visual as well as functional assessments. that report is expected in early october and we are targeting before your next commission meeting to have preparation of that report. that will also include looking at a consolidated plan that tells us exactly what we must spend, when we must spend it so we know before we ask you what funding alternatives to go to use that you'll know how much we need and when we need it. and then lastly that is the last item, the funding options because before we can ask you to give us an indication on what your preference is we really need to be able to share with you how much is needed and

when it's needed. happy to answer any questions as is the deputy manager. >> commissioner moran, do we have any idea of any economic value that may salvage? there is often -- for trees that haven't been consumed by have been killed, all right is some value for some period of time. >> we have planned an agreement with with the us forest, so we'll get an accounting of that at some point. >> i would suspect that the supply is high at the moment so the price may be high. but we should take it anyway. thank you. >> i have a couple of questions. commissioner king. >> assuming the $40 million and say that we would have to come up with that, say nothing the insurance -- nothing is covered, where would our

potential sources be? >> luckily we do have some insurance so luckily we will have that avenue first. after that we'll look at where we have existing reserves, where we have existing appropriation and where we can temporarily borrow that appropriation without unnecessarily delaying or adding cost he is ska clags -- to any other project. we're going to ask you to weigh in before we decide on that policy. >> my second question is probably to mr. carlin, i'm curious. what can be done to avoid erosion and problems with the, you know, the rain and the snow melt and everything? >> that's a great question.

and i mean part of it is we'll do some slope stabilization to serve our roads so we have access to our facilities but there's a lot of burned soils and that's what the federal assessment team has been looking at so they'll be areas where they do expect some erosion so maybe they're going to put in some control measures or damns to help the flow. the irrigation districts are concerned because the burn streams from our drinking water facilities and they were concerned about how much erosion might occur and flush into pedro. we're engaging them in a discussion as well. >> can something be built to hold back? >> they can. there are some measures that they can put into place, these types of bails and

things of that nature to keep it out the water waves, but we're talking about a huge area so they have to be strategic in a short period of time before it starts to rain and snow in the mountains. >> we don't have much time. >> no. >> thank you. >> so the next item is quarterly budget update. >> okay. talking about options and financial performance. this is your pre-audit experience and early peek at our budget terry results before the audit, the statements come out. i have some good news to report in these numbers. and we'll walk-through this very briefly. overall when we talk up a third quarter, we heard of

the increase water sales. we closed the year with higher water use and water sales, retail sales were up five percent and wholesale was up four percent compared to budget. we close the year with the bosca repayment for the contract elements related to capital and we experienced savings for debt service being lower than what we previously budgeted. as far as the water department and the waste water department we had higher sales in treatment as well as higher bio revenues and also savings from lower debt service cost. in the power enterprise we generated less electricity and sold less to the airport and the irrigation district. that was offset with additional savings from lower power purchases which more than

offset that lower revenue. so each of the three enterprises ended the year in good condition and you can see on this slide that reserves at the end of the year exceed $300,000,000. the water department excited $80 million. compared to your reserved policy which you adopted and had in some place for a responsible fiscal measure, we're satisfying every one of those criteria for every one of the enterprises so congratulations to you and i'm happy to answer any questions. >> commissioner, is there any questions? >> do you have the exact number for the debt service ratio? >> yes. >> i see that it exceeds but what is the --

>> for the water department it's approximately 3.9 times. for the waste water department it's 3.4 times. we have about 61 times on our power side because we have that very small amount of clean renewable energy conservation bonds outstanding. we haven't issued our first bonds yet bus we're slated to do that next summer, early fall of next year. >> thank you. >> that concludes my report. thank you general manager kelly. any comments. seeing none. public comment is closed. next item, madam secretary. >> adam eight is the bawsca update. >> there's an introduction. >> i have an introduction to

make. art with with bawsca. but before i make my introduction, i like to make a few comments of the commission. the context of out with the in and out with the new. take it in that order. first of all i feel very fortunate to have the opportunity to work with this commission. for all of the serious business we've conducted overtime we've done that with respect and gotten along well. i feel honored to count among all the commissioners i've worked with past and present as friends and i'm grateful for that. it has been a pleasure to work with harlem and countless managers before you. some of us keep count. >> how many? eight or nine? >> oh, you underestimate the

count. but it has been a pleasure to work with harlem and i'm enjoyed working with steve, and michael and today, sharon who is now retired and michelle in her place. many attorneys in the city attorney's office and countless. it has been a pleasure and with a number of other staff people, management levels, people with offices and people who work in the field, it has been a true honor and a treat. in thinking back about my career, the first time i met your staff career was in 1967. i was at fonsaca and in 1977 i got became a consultant and met more people and in 1984 gene

killager was a general manager and wooed me to work in general service. at the beginning of my career i never even thought of working in the public sector. and i never thought that my introduction to that would be the city and county of san francisco. it's kind of a trial by fire in some ways but it has been rewarding. extremely rewarding. for the last 18 years i've had the unique and also very rewarding experience of working where the 26th wholesale customers, your wholesale customers are member agencies for the last ten years working for those 26 agencies and the bawsca board and professional people. together our folks, you, the commission, your staff, a number of special interest groups, stakeholders, we've accomplished a great deal

and it's truly rewarding to have had even a little part of that. it's just an astonishing thing. i'm proud what bawsca has become. it's an example of what government should be. an organization that gets results to make a difference for the people that pay the bills and that's what we're all about. in june i gave a presentation of this commission. i gave the same presentation to my board in july and it had some sobering issues that will confront us or i should say you and our folks in the future. it was sobering for my board as we look forward and i think that's just to say that i'm not retiring because the easy exciting stuff is over. i think that some of the greatest challenges lie ahead for the

commission, for bawsca working together separately and i look forward to seeing what the commission does and what bawsca achieves in its next ten years so in closing and before i have nicole, thank you for that spot on your agenda and i hope you maintain that. thank you for your commitment to public service and thank you for your friendship. thank you. >> thanks very much. nicole, will you join me up here, please. nicole has been with with baswsca for 14 years so she's not a new comer to any of this. we've had a great working relationship since the day she walked in and took the interview. she has the wholesale can you have the measures negotiated two

shortage allocated usage. she became very engaged in your capital improvement program which then went into the wsip. incredibly involved through the pri process and she was involved through the legislation in san francisco. and she was involved in the water agreement and the water quality section. she has done virtually and been involved in everything of consequence that bawsca has done. but that's not all. prior to joining us she worked for east bay mud for nine years. worked in the -- that act of the federal act, whatever that was, central valley improving project act implementing that and a number of things. a tremendous career span. she's not a new comer.

she's already created quite a list of compliments on her own. she's now the board selected ceo and i could not be happier for her and for me in terms of leaving it in your hands. one other thing is that she knows how to manage her manager and that was an exappreciation i never really appreciated until she came on board. i feel completely managed. >> thanks to my success. >> look where it has gotten her. i present you with nicole. please keep her on your agenda in the future. >> welcome nicole. >> let's not end with the new, that's what i got from that. >> i am thrilled with this opportunity. i've been telling people, it's rare in your life that you get to have -- having

worked in a field for 25 years to take on an awesome and new challenge and that's how i view this and i feel lucky to do that. i've enjoyed working with the pc and your staff for the last 14 years and i look forward to using that knowledge and the relationships to the benefit of my member agencies but i think all of us together as well, because i think there's a lot to be had. art spoke about those challenges and they're real. they're significant. we've been talking to the bawsca board about it, the water supply and richie correspondence earlier today is one of the biggest ones to be tackled and i'm looking forward to our agencies figuring out how to do that where there's partnerships to have those but to take on this challenge. i appreciate the warm welcome. kelly has extended to me in this new role and all the pc staff and i look

forward to have a working relationship with all of you. i know that art has enjoyed that and it has meant a lot to him to the agent and to the pc as well. i hope we can continue that tradition. thank you very much. >> thank you. >> nicole, so just again congratulations as i mentioned before one gm to another. i definitely had to manage managers before so you're able to produce what you need to produce. i know art sometimes -- art is sometimes challenging to maintain but he's a great individual. when i came to the puc he basically embraced me and really wanted me to be successful. so what i would like to do is read a resolution from the puc commission. let me put on my glasses. i'm

getting old too. this is a resolution whereas the san francisco public utilities commission, they're pleased to recognize robert the chief executive officer and general manager of the bay area water supply and conservation bawsca on the occasion of his retirement. mr. jensen served as the general manager and his organization, the bay area water association for 18 years representing the water interest of 1.7 million resident, 30,000 businesses and thousands of community agencies in alemeda and santa clara counties who depend on our water supply. jensen provided leadership for the san francisco water

department between 1984 and 1990 and whereas mr. jensen vision and leadership has spured long term seismic operational improvements to the water system that will be -- that will help safeguard the public health and economic vitality of the san francisco bay area and whereas mr. jensen leadership through bawsca on water preservation has led to demand and wholesale service area and mr. jensen was instrumental in negotiating the 2009 water supply agreement between the pc and the wholesale customers to provide greater clarity and responsibilities and improved benefits to all parties and whereas mr. jensen through his leadership and his advocacy has

strong relationship between the public commission and the wholesale customers, but on the 24th day of september 2013 the san francisco public commission does here by commend arther jensen for his work. we hear by extend the best wishes on his retirement and future en defbers. thank you. endeavors. thank you.

>> you don't give these out to non employees very often. >> thank you. i've seen you take a lot of these. >> thank you very much. >> mr. president -- vice president. >> i just want to put a personal note on this. i met art 16 years ago and i say this

now, though commissioner moran was general manager at that time but i was told by my fellow commissioners that i wasn't allowed to like you, period. that's how we started our relationship and this is really true and i'll never forget our first meeting and art was there and i was there and i thought, what are these people talking about. i just couldn't follow anything. so over all these years, art and i became good friends and i admire you greatly. you'll be missed but i know we're in good hands. >> thank you very much. >> are you going to tell that joke again? >> no, i'm not going to tell the story. but thank you. i really appreciate the opportunity to get to know you and work with you. thank you very much. >> thank you. >> for the record i was told to

like you. >> commissioner moran. >> art and i go back a long time. we have been professional colleagues for a long time. that's a relationship that probably have made people nervous from time to time. we agreed some time ago, i forget when it was, but there was things we couldn't talk about and we haven't. that's something that is not always easy, but i think it's something that art and i both thought was important both for ourselves and for our institutions to maintain. so i'm looking forward to now being able to talk to you about all those things. >> same here. >> the other comment i like to make is that art has had a really unusual opportunity to create an organization and he has done that in a way that i think the organization reflects a great deal of your values in

your way of working. one of the things i have always appreciated about art is that he's about getting the job done. there's just not a whole lot of other stuff involved. not a lot of fuss and feathers and agendas that's lurking underneath and that has been the history of bawsca's work and your own and before that. that's pretty rare. there's a lot of ways you can represent your constituents and some of them are aimed at making noise and making things exciting for people as oppose to getting the job done. you and bawsca has never sir come to that. you're sometimes tough on us and i think if you didn't exist and if you weren't tough on us, we would have to reinvent us because it has been to our

benefit. thank you. look forward to the stories and thank you for creating an organization that reflects those values and something that nicole can work with great integrity and comfort. q. thank you very much each and every one of you. >> it's more than appropriate to entertain any public comment. i have no speaker cards. public comment is now closed. next item madam secretary please. >> item 9 is a consent calendar, all matters listed here under constitute a consent caller car are considered to be routine by the san francisco public utility commission and will be acted upon a single vote of the commission. there will