on existing lines and having vehicles that are in good state of repair. and as a process terms and becomes into the board of supervisors slash mta arena i hope we'll keep in mind the importance of what imperative kim said because it hit the nail on the head. we'll have a real problem in the future if we are not ready for the infrastructure there will be needing a lot of funds for the repair of the system. i think it's incredibly important we resist that attempts and we keep up with the needs of all our residents because when we have problems on the waterfront or the subway

system with minnesota it ripples throughout the entire city to every reach to the ocean and i look forward to that conversation. >> thank you commissioner weaning. any member of the must be wish to commit seeing none, public comment is closed >> item 12 public comment. >> public comment is open for any member of the public to commit. seeing none, public comment is closed >> our next item and a next item is adjournment. >> we are adjourned.

>> let they call this meeting at the public utility commission at order at a quarter to 2:00. first adam. >> roll court. >> commissioner king.

>> here. >> commissioner moran. >> and torres and vietor is excused. >> we have approval of september 10, 2013. commissioners. >> i'm over approval. >> second. >> it's been moved and approved for the minutes of september 10, 2013. are there comments on the minutes. public comment is closed. call for a vote. >> say i. >> i. >> a pose. there's no opposition, the motion carries. >> next item is public comment on any item not appearing before the commission today. i have one speaker card but is there any general public comment? seeing none. public comment is closed. next item. madam secretary. >> public comment. >> oh, sorry about that. why don't you come up and say your name, please. >> thank you. i'll be very

past. madam clark and i have met with you before. i'm wearing three hats today, one for the 12 member trust where i'm an advisory and vice president of the board and i've talked to you before. the last time i talked to you was before we went to camp. and you were there and leaving late saturday not knowing the fire had started. so the two things i want to share with you is the trust is going to work and i'm taking them first because this thursday, they have already begun to fund raise to help with the river and i apologize to you. my printer ran out of ink at the last moment so i have some copies but if anyone would like to have a copy. that's wonderful program and it's going to happen in oakland. i want to also let you know that the friends of camp mather are working very hard to have a fundraiser and

do a major event probably in january. that's what we're aiming at again to help restore and bring two camps -- the things that need to happen even though the fire didn't make it to camp mather. there was quite damage. he flew over and commented on how devastated he was about seeing from the air how much damage had been done. i want you to know that you have two groups that thier owely that's going to help. with the party on thursday beginning. i want to thank all the staff at puc for all the work they've done. i know that for you and for the staff, this

has not been an easy, what, is it two months now or a month and a half. and if you're like me you feel a great deal of sadness about what happened in the mountains. my final thing is a very different hat. actually the chair for the environmental and natural resource form at the club. i'm going to share with you the programs we have with you this month because low and behold, these get planned. i plan these six months in advance so these were already planned. this month there's a lot including a very important program from the wreck center on the colorado river. if you didn't know as i didn't know until i heard from them that the delta, the colorado delta has gone bone dry. you need to let your friends know that we need to take a look at not only what's happening in california but the colorado and other rivers of the world. so i have a few of these and again i

apologize for not bringing you more. >> thank you very much ann for being here. i think we will get a fire update from carla. it's appropriate to appropriate what you said earlier about the san francisco firefighters. as much as there's a lot of sadness surrounding those events i would say that san francis cans are important and taking care of our precious resources. is there any other general public comment. hearing none. next item. madam secretary. >> item 5. commissioner. >> moran. >> the water strategy, i would ask that that be calendared at our next meeting at a discussion items. i've given comments to staff and i would

like to have a more in debt discussion. >> without objection, so ordered. commissioner king. >> nothing. >> okay. next item, is there any public comment on communications. seeing none, public comment is closed. next item. >> item six is other commission business. >> commissioners. seeing none. next item, madam secretary reported in general manager. >> good afternoon, the first item we would like to give you an update of the rim fire. we want to update you at every commission meeting as we indicated before our focus in recovery mode and michael carlin will go over the details but we're looking at opportunities to really work with the other agencies to coordinate our efforts and look for opportunities where if we

have to invest we want it to look for our partners who participated in the rebuild of our system to participate if there's any emergency work. so we're looking at providing local opportunities as we look at this disaster. so michael, can you talk more about it. >> certainly. good afternoon, michael carlin, manager. i'm going to give you a brief update activity since the last time we've talked and show you some pictures and i'm going to ask mr. rydstrom to talk about the cost associated with recovery and those discussions. just to recap the summary of the fire, as of yesterday 257,000 acres and containment is going to be done by november 1st. if you remember originally it was september 20th and that has changed. the fire has gone into two percent of the hatchy water, but it's

less than that. we have confirmation from our folks and from the federal teams that have been on the ground going in the burned areas. and part of the strategy that they have right now that is uncontained in the steeper areas in cherry water is smoldering out and we did have rain that fall. there was no significant run off and it did aid in the fire suppression efforts knocking it down. we still have a smoldering fire at this point in time. of course now it hasn't really affected our act to serve our customers high quality water. water quality continues to be high or to affect our power customers as well because we have been meeting the municipal power needs. the power houses are run this point. we're in the recovery phase as general

manager kelly mentioned. we're working with the emergency response team, bear team is what they're called. we have had our folks out there with them assisting them and working side by side with them. lastly we've actually engaged a consultant to conduct a natural resource assessment. this is on the cutting edge but the values that we are observing in the water shed, whether or not we can translate into a monetary damages and then submit that it's a claim under our insurance or through fema or the general government. we're taking advantage of what we've learned from other water companies that have experienced wild fires in the past couple of years. now the pre-pictures, it's always good to have a few. here's a picture from the september of

17th. you can't tell there really was a fire there. that's the north rim. you're looking toward the damn. i showed you the picture that's on the left on the screen from our last update, the ash isn't visible on the damn. the damn is clear. there's no smoke in the background. it's blue skies but we do have damages. these are not before and after shots but it gives you an idea that there's areas that have been burnt out where the trees have gone at this point in time and we've removed some of those hazardous trees and there's some vegetation left on the side of the road but you can see burned patches. this is looking down on the home power house. we talked to you about the roof being damaged, the home power house is being repaired right now. but you get a sense that coming up that canyon that we didn't lose anything around the home power house. it's safe and in tact.

these are the distribution lines that we talked about last time and you can see the coal repair -- actually it's underway right now, but these poles were damaged and taken down. as part of that you can see we got quite a few poles that we have to replace. just another shot of the cherry bridge line clearing. we've gone in there quite a bit dropping a lot of trees along the roads we we need to have access to get to our facilities. this activity have gone on for the past couple of weeks and we're about complete with that at this point in time. so what are the phases of the bear coordination? the first is just the basic on the ground repair of fire suppression from where they did build those lines and hand lines so those are being cleaned up and the bear team is going in and looking at what can they do in the immediate

wild fire threat to life property and other cultural resources. this is really where we're working with them, what can we do right now today on the ground to stabilize? what is the long term outcome? what is it going to look alike? it's going to be put together in a report that will come to us and we'll present it to you. our folks are integrated with these teams and working with them and spending time with them in the field so we'll have an understanding of what will occur in the areas that we're concerned about. so just to kind of summarize a little bit, both curriculum wood and home power houses are both up and running at this point in time. major damage appears to be the 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. same 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 deputy carlin mentioned. the process, i'll be before you 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