we expect to start the discussion given the decisions relative to our drought conditions that will be our highest priority but look forward to public meetings and putting together a draft road map and that's for the future and having a couple of updates with the commission and hopefully by the middle of next year having a staff recommendation and developing a program division and any additional sequa analysis. a lot of the work there aren't that many new projects out there. there was one wore the eir program but we'll be looking at things those are the things that need to be added to the mix. that concludes my presentation

if you have any questions, i'll be happy to answer them >> commissioner caen. i have a question on slide - is that - self-inflect junior 2014 - 2015 the general served how does that get so high >> i'll ask todd to speak to that. >> thank you for asking that question. in the case of the water enterprise their prices those go up in the mortgage payment on line. you'll see that in particular we have the 4 bhoildz but that's the migration to paying for the project you'll see that in the

sewer program as well >> thank you. >> steven if i might first of all, thank you four putting the map stuff in there. i think that's the same issue basically as the, you know, the capital funding. and you have correctly states the questions that are raised in the water supply agreement we have with the with stwhoel customers i want to make sure as we precede that we precede on the assumption that we're trying to figure out what we can do to say yes to all the questions not keeping the uncertainly out there but to see what it takes to say yes later on be we may rethink that.

but we need to proceed with the precipitation we're coming up with a plan to deliver a yes to all the questions. question and it doesn't show up in the budget necessarily but one thing i know we've talked about is taking a hard look at the retail and sxhoel structures. how we make sure our rates are geared to cover fixed costs even when with the drought or conservatism is that part of the work plan we just do not see >> we've not made it there i'll ask todd to comment on that. >> we will be redoubling our efforts with the new general manager and i look forward to

working with nicole on that we don't need additional staffing and mr. jensen and harrington had conversations that's a chance to revisit this and we'll be working on that over the next 24 months. >> we had talked about that and given the events like the bond that bossing could was issuing we put it off a year i want to make sure this is the year and we don't forget that. >> thank you. >> wastewater? >> yeah. just a format thing willow tommy is getting ready. you have the details on the mruz

it's not uniform it would help in each case i have individually the plus and minutes counts for the position when i went through and counted that's a lot of work. the other is to have the dollar value and if we're trading out clerks to get engineers that's important to know but if we could do that for all the enterprises that would be good >> francisco. >> mr. chair, i would say after each section i know you're going to say - >> no call for any public comment? >> i think it's relevant for

the community it's too much. >> if there's no objection from my colleagues the budget hearing today is broken down into 4 categories abc and d and wastewater and a experimental affairs. if no or yes o there's no objection i'll call for any public comment? after each measure. i understand that item a is concluded. any public comment on 5 a? i have a speaker card. okay francisco go ahead >> thank you very much for accommodating the suggestion. commissioner the way i looked at it on water waste we need to take a holistic approach. i know one of the commissioners spoke about conservation and that's going to the right place.

some years ago i was the first speaker we're here we have 80 give them recognize when we dammed hetch hetchy and they're bringing the water all the way here and it's wrong in 2014 we use freshwater to flush our toilets but we're not doing anything about it. but we want to do something about it it's going to be 5 or 10 years and i think that's wrong. number 2 when we look at the freshwater some of you have studied the legislation which mandate us to conserve 20 percent of your water. so we've got deliberations i've noting got nothing against the gentlemen but they should incorporate that.

if we have 38 huge developments they need water where is it going to come from. i want to somehow that your universities participated in this deliberations. i'm speaking outside the box the universities need to take part in those deliberations to get credit. now the community cannot come here like i come here bus, you know, i've retired and so i have sometime but there are a lot of people out there that used to come here at one time like steve lawrence and so on and so forth and they don't come here anymore. we can't allow those experienced people to wither away we need to a reach out to them.

today, you've heard about cac representatives come here. they should participate and go out to the community and find out what the community feels about water and sewer or whatever. i thank you, very much. role for breaking into smaller segments so this can be a meaningful workshop. >> i have a card that is sporadic for 5 a that's nicole. nicole please pronounce your name >> yes. >> it will never happen again. >> thank you for being here. >> thank you for asking me. i want to comment specifically

on this item. as i was going through the materials over the weekend and the action plan it certainly intriguing to us. it's the first i've seen it i'm interested in the details and how he and his team is undergo the examination tale of two cities this is an appropriate way to look at that. and how you frame the question when you start this type of effort defines it what the scope is and what you expect to get at the end if that's a question that needs to be answered it's important at the get go i've seen the scope and interested in seeing what kind of resources

internal resources only and also the schedule is certainly critical. i look forward to working with mr. richie and his staff we're interested in the long term water supplies it's one of our issues so we look forward to the answer to which or that. one other thing there's a new category in the c i p called the otherwise listed projects in the overruns. while i understand the need and how the finance team and general manager has put this together we continue to be concerned about this creek in project budget. to my knowledge it doesn't reflect the upcoming concerns that are not reflected and what that means for costs.

it's an area that in some ways might be easy to point to oh, that budget is being covered by the c i p and monomove on not a worry. while the projects are critical i want to see them getting them done on budget so we'll continue to focus on that >> thank you very much. so i have two other cards i hope that everybody understands while we broke down the conversations and divide parts i don't think that everybody feels we're going to have 12 minutes of communication. i do have a card from peter if i want to speak on item a or if it's for a different item. dr. jackson >> i really don't know one of

the things when i heard the young commissioner that francisco. >> hose young. >> this is one of the reasons you all needs an education about the sewage. that's at bayview hunters point. alex didn't start the puc and two of those persons are dead and gone. and where we used to meet and i used to attend those meetings that was that young man's on fifth street. it died off it died down and alex came to me and a asked me about the cac and i agreed. but i don't want you all trying to change the history that happened in my community and that's a lot that's going on. when i heard about the budget i

know it bothers me you all have been sitting here for a long time and when you came together what were you supposed to do n if so nothing happened about the issues no one said anything about the leaks that's going on in my community. it just said that nothing is happened you've wasted seven years and ms. mccain about tell you. you've wasted seven years and not doing the job and i believe you're going to waste 7 more years and we're not going to have the that is my understanding. when i told the director i was not going to support the pipes

you all have been lying to us at hunters point. we're going to have a mess. i said okay. and i agreed the second time and it passed. so i went to all the neighborhood meetings and said support it. so all the work i've done for you all i'm still left out. bayview hunters point. i haven't heard anyone say anything about bayview hunters point >> peter you want to speak on 5 a. okay. thank you. >> good morning peter. the two 65 m g d cap is driving those for more source of water. there are opportunities to decrease the demands is not net. i applaud the efforts of the puc

to get the water it's expensive and there's not as much potential. in palo alto where i live we have a real resource our waste are water plant dumps $20 million o million gallons in the bay everyday. we tried to pull together the elected officials stanford university and others from san mateo county and the water district and we brought in a number of experts to know about the ground water basin. we tubed the drivers for pursing more ground water use and there's a lot of interest in the ground water because of the population growth and, of

course, the drought and climate change. east part of the city is continuing pushing up against their i s g so they're looking at drilling a new well. there's a lot of interest in continuing this conversation. it motive both go to using those brown water basin and the west water treatment plant we don't have any resources allocated it's a challenge and palo alto a very weighing community both financially and with water we're allocated 17 million gallons per displaying day there's no incentive to look at that.

i would encourage the puc to look to buy back some of the water allocation and with the purchase of the funding going to projects like taking place into the ground water sustainability and there's another way to look at this with partnering with the community with the mid peninsula to bring on a project by dropping the needs for the region. and, you know, it's a long process. we're getting started and i look forward to get together and chat >> commissioner vietor. >> you know thank you for that. and i do feel recycle at some point i don't know when it fauldz falls we need to have a conversation about diversification and the drought and to prioritize those new

projects and what makes sense how to pay for it from con jufb to recycle water and how to make decisions found decisions on you know what should go and what shouldn't. there's been not a moment too soon we've got to bring those projects on line. i don't know if there's a time you could come back, you know, as part of the budget if need be in not pretty shortly after those hearings to understand your options here >> yeah, we can do that i'm not sure the budget place is a place for it but we can come back and describe the short term and long-term and how we get to the decisions that's doable but keep

in mind those are are not easy decisions the low hanging fruit left a long time ago. >> it's consistent with the plan we talked about where we answered the questions that we have in the presentation that's part of the plan. >> it's all connected the 265 and the capital questions it's all connected. we're not doing it judicious especially with the water shortages and meeting our supply needs. >> we'll move on to 5 b. >> good afternoon, commissioners i'm telephone call i didn't assistant general manager for the wastewater enterprise.

so what you see in this picture there's a title slide it's the youngest plant we're moving it to do some work there right now. it's 21 years old. system overview this is what you basically have seen before. you're familiar with this slide. so this is what it looks like. i brought this slide so you can see which ones to blame and tony please stand up this is the guy who has no violations and my boss john is here he's responsible for the maintenance

manager for all our facilities and lewis harrison is the guy who tries to fix all the floods and is in charge for the wastewater enterprises. and the gentleman is for renewal permits and also hiring and firing for the wastewater and finally, i have karen here a critical person who works with the crews and infrastructure she'll deliver the neighborhood information and the upgrades we've been talking about. one more person which is the piece had that was covered is the workforce development and that's katherine i guess she left. in any event brian henderson is here in charge of the

engineering and he got hunger so we'll move on. >> the slides back. so those are the authorized positions. you'll see the positions we're asking for 4 positions in 2014 - 2015. operating budget are similar to the water slide if you changes the most significant changed in the operating budget is the debt service. for the capital program just highlighting >> where's the debt service? >> page 5. >> it's on the slide there first line. >> okay. >> how much are we

participating for the debt servic service? >> this is todd's cup of tea. >> so the debt service is going to be behind tab two but for the wastewater department it's 65 million we were agriculture to continuing of the debt service. >> it says 8 million ton 2014 - 2015 thank you. we scored and we were able to recapture. >> i'm so tired of thanking you. so total debt service for the

entire entity? for the puc >> the total debt service is going to be going from $272 million up to $326 million but the portion in waste waters budget is going down because of the refunding. >> why is it from accountability departments and it's the timing. >> i mean with the bonds were issued. >> that's right. >> thank you todd. >> so this is a higher level of looking at the our capital expenditures for the next couple of years. as you see and todd will be going over those slides. what we plan to finish with the

next couple of years is the conceptual is the digest facility and the cbs i p the improvement project. also begin to cabin the review project and complete construction of all the e i ps that karen has presented and complete our upgrade side with the water assessment we've been talking about. so those are the sources of fund as you see the majority of increases are in the backs of our rates and we're conscious of that. very little bit coming from other sources. >> mr. president. commissioner torres >> going back to the f y the

conceptual bio solids digestive some people think that's to the moving along. >> we awarded the contract to a partnership with the brown and caldwell and - >> so the concern is it's not moving fast enough. >> well, it's difficult to see the conceptual design from the neighborhood but i can physically see it. >> we should have been further along there were delays. >> we were having some but we've been here for a year and . >> i think there's also a - there's on time and there's on time and there's on time and the

project is scheduled at the moment. that's fine we're on time i think what dr. jackson talks about we've been messing with that for a long time. so from that standpoint imprisoning the exceptions we couldn't be on time enough. we'll also be late >> obviously before you or i arrived this project was in the works. >> i'm the general manager for infrastructure. we came to the commission for permission to award to brown and cold case wall the planning it was approved and issued and we're on schedule. our counter schedule is for the analysis to be golden gate done at the end of the year and into the environmental phase and move

the project on schedule. there was a lot of work done over the last decade planning this promise but through your direction set, of course, hired a consultant and working on a final project that will be into construction by the 2017. all i'm saying is we could have move forward faster. >> i think dr. jackson is talking about this goes back to the late 18 (laughter) don't quote me on that. truly unfortunately, we can't change >> i applaud where we're move now and said the challenges. i want to make sure we're sensitive to the concerns i know you are about your general manager concerns so we're moving

ahead thank you >> i believe commissioner caen it's her first meeting on the commission from 17 years ago i believe we were presenting to the digesters. but we're happy to be where we're at and we look forward to the next few years with all the projects. so those are the uses of if you happened for the counter year and the next two years. as you see the orange bar is the debt service and also putting money into the federal reserve. and this is 2014 - 2015 budget requests it's