also on the operating side of the budget where and how we purchase power. so that's not funded through bonds. that's really funding through the currents rates and charges. >> also to tie into the bonds, these bonds we have to have revenue actually pay for the bonds. >> from the sales of the power? >> from power operations. so we probably getting some good rates for capital power assets to deal now but we have to pay, have the receive -- revenue to pay down on those bonds. in essence we can't get as many bonds as possible but we can get to afford to pay. >> hence the question about customers to generate the revenue, correct? >> we need to have paying

staying customers that credit agencies and bonds will look to those and say they are going pay their bills on time. >> right. that conversation will happen more in depth? >> the presentation, the ratings agencies is on slide 11 that it will be over june/july of midyear. we have a very good story to tell to the general departments that we are able to provide very low cost power to those departments. so we will have a very good story to tell for our $270 million of capacity. >> i guess i'm interested in bigger conversation around sort of the operational piece in conjunction with the bonds, in conjunction with the customers, the whole package that we've been sort of struggling with, if you will and if that's going to be part of our budget

deliberations or if there is an opportunity to unpack that conversation. >> yeah. so the plan is at the next commission meeting i'm working on a memo to really identify what the major challenges are at power enterprise and some recommendations and i think it would be probably best to maybe have a workshop to kind of address all of your issues in all the challenges that we are facing to make sure that we are all in alignment to make sure what direction to go as enterprise. >> that would be great even to have this bond question to see how this fits together . thank you. >> commissioner moran? >> thank you, todd. the slide on the rating challenges, we

are an unusual credit in some regards one of which our revenues in large part come from rates that we charge to city departments and that's not totally in our control, it's also something the board gets to weigh in on. in dealing with that i guess the statement would be if we need to take action at the commission or proposed ordinance at the board that the deals with the risk issue from the bond holders standpoint and can maybe work in conjunction with covenants that deal specifically with those issues, i would expect that you will bring those to us to act on. i think you have to expect that rating agencies in doing their

job are pretty coldhearted about it and pretty matter of fact and if they see something that compromises our ability to preserve our revenues or to fund our operations, that that will get translated into a rating decision. and to the extend that we constrain ourselves in the case of doing an emergency service of power, if we constrain ourselves so that we can from the market i will expect that will come out as a rating cost. that's not to say it is not a good idea but that is where we monetize the policy. we'll to have consider both sides. also if you may need to do that to make sure you set aside reserves to

increase the burden. unlike most of the debts, this has a bunch of policy questions em bed in that and i will expect to have some conversation from now and the action between the time we issue. >> this commission adopted and has been a credit strengths that the rating agencies has mentioned. you have covered all the prices and the fact that you review it quarterly as part of your budget update. that is seen and noted by the rating agencies. >> all right. next up is karen to give us an update on the sewer system improvement

program. >> karen kubick, director of the sewer system improvement program. we spent some time on the project as well as the engagement. at this time we have started all the phase one projects and primarily everything is in the planning

phase in the green colored bars. but we do have a few projects that are in construction, the digester that we talked about and the plan replacement. i want you to know that we have said set up a tier ed transparent system. the project team which reports to me when we hit milestones such as needs assessment for alternative analysis reports for conceptual engineering we go to the technical committee. this is by emilio cruz of infrastructure. and all of the direct reports are participating in that and meet with the project manager. we discuss the projects. where we have a policy type decision we go to executive management and that's called the management oversight committee and that will be for high level things

that may have problematic impacts. we are also in the process of initiating some of these external advisory review committees. these advisory groups, peer advisory group communities that we are looking for individuals that address agencies and combine agencies and can participate with us review documents and weigh in as we progress. we are already actively working with the revenue bond oversight committee and the southeast community facility as well as the waste water citizens advisory. you will see this go both ways and staff is actively giving presentations and taking information back and it's a nice way to give back and will be hopefully successful. briefly, i nerve want to have a

meeting where we don't talk about the project. the result is running on all cylinder and we are completing a report and as well as initiating and alternative analysis. we are moving lickety split to deliver this project. the water assessment work, we had a large that side at the southeast community facility. many people attended. it was on a saturday and it was pretty terrific. supervisor cohen introduced the event. it pretty unique because this was all of the bay side water sheds that we had done previously, with yosemite and sunny vale. this is about the project that we talked about. it was really

neat to have this many people get together on a saturday with every generation imaginable. great representation from the community. next year in the new year 2014 we'll start work on the west side and that will be a live meeting. we are doing a lot of touch with the community to get people to nome -- know and work with us and we are doing look of work on the westbound. what we are doing working with the community is talking about our levels of service, our needs that were established through the student program workshops. things like aging infrastructure, odors, redundancy and geographic maps and we can see the soil type with the sidewalks and we can do lay overs and concepts.

these are mixes of gray and green projects. so city sip, central bay side improvement project and the decisions are going to be reported back to you and we'll be able to make a decision if we can move with that project. right now that project is funded through conceptual engineering and then we'll be reporting back to the commission to try to get policy direction to see if we can move forward with the connector tunnels as well as the green structures associated with it. so relief implementation projects. i'm going to give you a brief status of where we are on the projects. today on the calendar we have an mou for the wiggle. it happened to be two projects. there is fell and oak

streets. they are starting construction in anticipate. -- april. today we have that mou before you. that's the rest of the regal pathway. we have had several public outreach meetings, we have done coffee in hand walk and talk. the elements included here are going to be a bulb out and rain garden. our partners are the mta folks. the things that get touchy with the public is when we talk about losing parking spaces in these neighborhoods. that is not something that people like. we have been getting a lot of attendance. most of our attendees an arrive

on bikes. they are very supportive of the structure. it was a deal. mission valencia, >> i'm sorry, before you move on from the will wigel. one thing that was hard to figure out is where the green elements that were a lot of talk about the parking and traffic and all that stuff buchlt, it wasn't clear where there would be pavements or what kind and where there will be infiltration opportunities. i'm assuming you are developing that. that is a flag for future presentations that if for our participation needs to have that kind of length to it. it would be good. >> we can have some more detailed plans to have a meeting that just focuses on

eip's. it tends to be along the same pathway to the wiggle, at sides, at corners and then we have additional challenges and we have to engage from the department as bulbing out areas we are not going to impact turning radius and not going to impact other safety hazards to improve pedestrian safety as well as bike safety. yeah, i got cut back a little on time this time. so maybe next time i can get a little more. >> the before and after images go a long way. >> i would like them to. next time. >> i'm trying to keep the report short. maybe we can do a work shop. but the challenge is that there is so much

information and we are trying to be respectful of time. so if we feel that we need more time, we'll just make it a workshop item. >> these are great and complicated projects. our participation is relatively now. so if you have nice bike paths but no opportunities for infiltration, that's nice, but i don't know if we care. so if the presentation would be perhaps a little less complete but as a whole tailored to what we are looking for is great. >> sure. we can get the managers to participate. if you can bring the slide up. mission valencia is the next one between cesar chavez and valencia. city started that. we have secured grant money for that project. $3.5 million. the

budget at this point is the total project cost we are looking at is $5.3 million. saint lubrication -- saint luke's hospital is also participating. we have a lot of feedback from the public. they love the greenery and the traffic calming. department of department of water and is a lead in this design. this is an exciting one. we had a joint meeting with the other agencies at supervisor campos office and it's overwhelmingly resounding with great participation and also open houses and door to door coffee talks. it's great way to learn about green structure and water management. you heard from the folks from yosemite creek area. they are learning about waste water and learning about the system. when

an individual attendance our open houses we are getting an education of who we are and everything. chinatown, we have two alleys. we have had four events. they have been multilingual events. we've had over 100 attendees. this is a joint project as well. the interest in potentially being able to close the alleys to traffic through planters and pavements and that type of technology. now through upper yosemite creek was the one that a lot of folks provided testimony on today which is the only project we are currently considering. it's in the analysis change. we have included in the budget we held $4.3 million for land acquisition. the woolsey

property was an alternative and at this time we wouldn't be in a position to be able to make an offer there or do anything. also it's already in contract. but we would have to complete ceqa. it's looking to be march 2015. so the process of the sales to property is an a little bit ahead of where we are currently. there was a pub meeting last saturday and the developer who is looking at doing the offer is interested in trying to work something out with us. also there is a lot of discussion to come, but we are not that far on the design, we are not that far in terms of the specifics and we'll definitely need to have environmental review to acquire property. the path of this creek day lighting goes from way land which is above woolsey, crosses university and

down woolsey and if you have seen the area where there is green houses there that are historic structures. it's definitely some challenges with those with the nature of the structures, issues with the demolition. this time the developer is in contract. we have to wait and see how that works out. back up plan for storming if -- storage if we are unable to get the woolsey property is to utilize the soccer fields and it needs definitely a face lift and we'll be able to build storage. there is a ways to go. recs park is a partner and as well as mta because of parking and sidewalks and drainage. this is an exciting one because the

water goes back into collection system and takes up capacity. if we are able to come up with a project that could work with 77 woolsey, we can't have a wet land and back to the ground as well as have a partnership to have some sort of urban act element. the neighbors are really excited about it. we've had great participation. it's an area where a lot of improvements can be made. maclaren park seems to be the park that has been forgotten and it seems to get all the attention we need to keep this park going. it seems like there is multiple interest and purpose around this project. i think it's exciting from an aip perspective because of daylight component bayview and it's

broad appeal and there is not a lot of this going on anywhere. it can serve hopefully the storm water around management. we heard from a lot of community members about this property for various interest whether it's simple beautiful or urban or historical preservation because of the garden district and what not. we heard there is annes escrow in the development. i guess i want to decouple those a little bit to see if there is lil value for us purchasing this and what that would look like and how that would reach that decision and how quickly we would make it. >> first and foremost it has to have some purpose and we have to look at alternatives. of course we would love to do the analysis on all the other

alternatives and do the triple bottom line. the problem is before we can make a decision we have to go through ceqa and the other problem is the timing. the actual owner is in negotiations with someone else. so it really limits us as far as moving quickly. i don't know any, are they in negotiation or are they in escrow? >> escrow. >> we can't do anything. we would be interfering with a contract. >> and we would have to do, say it fell out of escrow. we would have to do ceqa, some analysis? >> yes. >> okay. there is certainly a

lot of community support to have that many people come during the day with the petition. so the community has been pretty consistent. they would love to see this property stay open and see the urban, it would be better for us because the water we are capturing and removing ends up in this wet land and it's an educational perk. >> i want to add that i want to be very sensitive to the earlier speakers but what i would be really cautious about is that anybody that develops the perception that some how to puc is going to acquire land to stop development, that doesn't jive with the jobs things. i don't want to talk about views. you know what i mean? i do want to say that because i'm not sure what the plans are and frankly i don't know. i want to

be careful about the conversation. >> we can make the project work and we can build below the soccer field. we can look at both alternatives and then bring the matter back. >> the other challenge is i think currently they are in escrow and about $12 million for the property. the property is $12, we off ---erred $8. >> it was a super nice person and passed away. they were

offered $8. yeah. anyway. sunset blvd this is one all the way to golden gate park. this is both sides of sunset and big interest in the community, a lot of opportunity protect, it's a lot of blocks. lincoln way to -- so currently in our analysis supervisor tang has been assisting us with the public. we had a meeting with our public manager and katie tang gave a presentation. rain gardens and there is a water enterprise benefit as well because we are doing fixes to the irrigation system which the water enterprise is paying for.

holloway green streets. we have been meeting there with coffee talks and we'll be getting into construction of summer of 2015 of bulb outs. planters and pavements. it's what residents have been supportive. things like safety, lighting, some support from the bicycle coalition, our partner here is dpw as well as mta. we are looking at two separate areas. one is just adjacent to mcler

and park and one is a church and we are looking to getting this going by july 15th as well. this is rain gardens and ultimate irrigation. baker beach project is kind of a neat one too. this is talking about all camino del mar. that water runs fast from the golf course to the street and causes challenges in the system. we have an ex- cess of volumes. it goes to baker beach. we are looking to manage that storm water better and we'll be looking to establishing rain gardens along the golf course and looking at putting a green street permeable pavement at

the end of 25th and this is cul-de-sac area from baker beach. we are going to be having some very interesting and at the residents homes. residents are concerned that water when collected, the water can enter their homes. the residents have proposed supporting us and possibly taking some leadership to work with national parks.dgnra to work with rain gardens a little further back. we are starting discussions with dgnra to see if this is possible. this is retention, permeable paving, about $7 million. our public

awareness campaign, everybody has been on the bus, behind the bus and it's been in incredibly successful, multi-languages, different numbers. cool stuff and give way that people fight over and want. people are googling and twittering us. the biggest is the one that david has, everyone else responded. it is important because everyone is very very aware of water. i think a lot of people flush and walk away and don't really think about waste water. now they are. so that mission was definitely accomplished. the public awareness campaign, use of instagram, twitter, all of these things have made our jobs a little bit easier. we got recognition in eight magazines and positive shout

outs and been on the news where we are featured about the town and it's really doubling our list of friends which is a great thing wefrm getting great positive attention from really low investment and a lot of creativity from staff from the puc who came up with the campaign under the direction of tyrone. with that, that concludes my quarterly report. i'm happy to rho -- return to do a longer report. >> what i'm interested in the advertisement is to use that when we engage in a water shed approach. by doing this campaign we can see we are very successful in getting this in shape to help