continue to review that and then show those to policy makers. we have some historical context here we've been reviewing with policy makers as well showing that enterprise rates are auto adjusted but the general fund low cost for over 10 years now and financial plans as well as capital plans were balanced with hundreds of millions of dollars of capital cuts you reviewed with us so the scenario here with an additional $179 million of capital costs comes with risks and we want to make sure we identify that both with you and the mayor's office and others. the reason for the shortfall we now have a hundred year old

credible system but it's a hundred years old we have to do work on tunnels here and in in the past there happen a lot of flexibility with this system and pay dividends and transfer money from hetch hetchy when the system was newer and had excess capacity so that now is not the case any longer we're now older significantly older while we haven't been transferring money to the general fund since 2001 we have never the less been providing service below cost so now it's a difficult policy choice to figure out how to fund a hundred year old system incredibly efficient but needs upgrades. assistant general

manager ritchie and updates from the 6-month discussion are that that we're $10 million worse off than what i told you on the 6-month report so on slide 6 shows about $50 million by the end of june 30th and given the drought that we're having lower power sales revenue that we'd be projected to be just about $40 million and if if we continue to have the cca reserves un spent and appropriated the useable portion would be only about $20 million. bridging the shortfalls looking at every possible solution. deputy hail are making progress on interconnection and looking at the tunnel costs further so work is being done that's progressing but we do not have

specifics to provide at this time we're also discussing increased revenue opposites continue to do that but some of them presented here provide you 3 choices all above zero all solve the drastic shortfall but come with higher rate increases which we're still reviewing. when we did a rate increase on the general fund that was more difficult choices here's more difficult choices of 179 million but never the less gets us back into the black and solves the shortfall. we need these capital cuts as well as other savings in order to be above zero and also satisfy the commission's 15 percent reserve policy so this is another example of how your policies matter and how that puts us to task so make sure we come to you with a final proposal that

is ofs your policies as well as affordability. going forward slide here staying balanced. we're in a dynamic industry here. the agreement doesn't expire so there's several unknowns so we're going to commit to come back to you quarterly revisiting where we are on this path and to meet your objectives and stay balanced and have reserves so we've put together a draft timeline on how to do that and in the event rate increases on the general fund don't happen we'll have to look at further

cuts as well as hiring freezes and other difficult choices but the options we have are not that many unless we have customers paying for their cost of service. and then come back to you with a final proposed financial plan capital plan as well as well as the 2-year supplemental and we'll look to to do that at the may 13th meeting immediately following the mayor's proposed budget for all the enterprised departments. i'm happy to answer any questions. >> so just to get the timing right here you guys are going to sort through all this figure out where the cuts could happen where the revenue could be generated and come back to the commission before -- >> no this is just a transition

plan the mayor is going to propose his budget on may 1st and we will come back to you explaining how that's going to fit into our budget at that time. >> okay so that will be may 13th. >> correct. >> is when we'll have to make some hard decisions. >> yes. >> we put those capital projects into the absolutely required buck ets and important to have but potentially deferrable and that third bucket an expansion of service nice to have but whether or not it's required so the materials you have before you show 3 options that can get us into a positive zone one can actually satisfy your 15 percent reserve policy but they are going to have to come with a combination

of capital cuts as well as additional revenues in order to solve a half a billion dollars shortfall as we discussed in january. >> i would just like to comment that when we adopted the budget, we had some discussion about the clip chart and that it didn't represent a plan it was a description of a problem as opposed to a plan and we asked you to work on that and come back which you are doing and i think there's a tremendous amount of progress here and key to a viable plan is city hall's willingness to increase general fund rates so i think we are waiting until city hall figures that out is

an appropriate thing we need their commitment before we can adopt a plan that really means anything thank you for the progress that you have made and god speed with the city hall folks. >> thank you. >> so this is one of those items if there's no public comment we want to continue to the may 13th meeting as well. >> i don't have any speaker cards is there any public comment on this item? joan? >> i would like to ask to the chair -- do we still have the charter provision that required that while we depreciate our assets that money be set aside each year in anticipation to repair or replace something. >> it's a good question i'll go ahead and refer to counsel if

counsel can answer it on the fly without too much trouble i'd suggest you do so otherwise she will give us a response. >> the charter provision service saying when they were amended by the voters in 2002 they called for these actions to the capital plan and in chapter 16 also requires that funds be set out for the replacement and repair of the facilities on a regular basis so none of that changed the question is how are they going to manage the money and the capital repairs not whether or not. >> well the question i have is how much money is in that set aside reserve to defray the costs, the capital costs here. we're going to depreciate assets so where's that money that was my question.

>> that's an accounting question. >> the question that i heard was about the charter. >> yes. >> and if there's still the existence of the language that required such and such so we've answered that question now the next question is about the money i'm going to go ahead and say i'd like to answer before the 13th if that's possible todd unless you would prefer to answer it now if you don't have a dollar figure. >> so the portion that's actually available in cash is that projected $20 million at the end of june 30th of this fiscal year and the reason it's not more is because we've been investing hundreds of millions of dollars of cash reserves into the refurbishments but the future needs are not projected

to be even greater. >> okay thank you i think we've answered both of joan's questions and please come back on the 13th because i anticipate pretty robust conversation on the 13th right? is there any other public comment on this item. seeing none -- public comment is now closed there is no action here so go on to the next item. madam secretary please. >> next item items 23, 24 and 25 will not be heard and have been removed from the calendar item 26 anticipated litigation as plaintiff item 27 conference with property negotiation reservoir tract in san francisco

, san francisco recreation and park department terms of payment and price and item 28 will not be heard and is removed from the calendar. >> thank you very much donna. >> so i'd like to call for public comment is there any? seeing none public comment is now closed we'll begin moving in. >> actually we need a motion on item 22. >> item 22 whether or not to assert the attorney client privilege. >> i guess i'm not fast enough on my feet. >> that's on me you were there on time. >> just want to say that i hope the puc negotiates item 27 the parcel and i hope you get the

best price possible. >> i'm required to. >> you are required to. >> thank you thank you very many for coming. public comment is closed. >> did we get a second? then seconded. all

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♪ ♪ ♪ i think we have more companies anywhere in the united states it's at the amazing statement we're not trying to be flashy or shocking just trying to create something new and original were >> one of the things about the conduct our you enter and turn your your back and just so the orchestra. the most contrary composer of this time if you accountability his music you would think he's a camera come important he become ill and it was crazy he at the end of his life and pushed the boundary to think we're not acceptable at this point for

sure it had a great influence he was a great influence on the harmonic language on the contemporary up to now. i thought it would be interesting because they have e he was contemporary we use him on this and his life was you kill our wife you get poisons all those things are great stories for on opera. i was leaving behind a little bit which those collaborative dancers i was really trying to focus on opera. a friend of mine said well, what would you really want to do i said opera what is it not opera parallel. why isn't it are that i have the

support now we can do that. i realized that was something that wasn't being done in san francisco no other organization was doing this as opposed to contemporary we are very blessed in san francisco to have organizations well, i thought that was going to be our speciality >> you create a conceptual idea for setting the opera and you spear ahead and work with the other sdierndz to create an overview vision that's the final product felt opera. ♪ ♪ ♪ ♪ >> i was very inspired to work with him because the way he looked at the key is the way i

looked at sports looking at the daily. >> so much our mandate is to try to enter disis particular work there's great dancers and theatre actresses and choirs we've worked with and great video artists is a great place to collect and collaborate. i had a model they have a professionally music yes, ma'am assemble and as a student i benefited from being around this professional on and on soccer ball and as a conductor i'd be able to work with them and it's helped my growth i had a dream of having a professional residential on and on soccer ball to be an imperial

>> it operates as a laboratory we germ a national the ideas technically and work with activity artists and designers and video all over the on any given project to further the way we tell stories to improve our ability to tell stories on stage. that's part of the opera lab >> i was to investigate that aspect of renaissance and new work so that's why this piece it is important it was a renaissance composer. >> there were young people that are not interested in seeing traditional opera and like the quality and it's different it

has a story telling quality every little detail is integrated and helps to capture the imagination and that's part of the opera how we can use those colors into the language of today. >> so one of the great things of the stories of opera and story combined with opera music it allows people to let go and be entertained and enjoy the music instead of putting on headphones. >> that's what is great about art sometimes everyone loves it because you have to, you know, really great you have to have both some people don't like it and some people do we're concerned about that. >> it's about thirty something out there that's risky.

you know, disliked by someone torn apart and that's the whole point of what we're drying to do >> you never take this for granted you make sure it is the best if you can. >> ♪ ♪ ♪ ♪ ♪ >> on december 28, 1912. san francisco mayor, sonny jim rolph stared into the crowds of

those who have gathered. a moment in history. the birth of a publicly own transit system. san francisco municipal railway. muni as it would become to be known. happy birthday, muni, here is to the next 100 years. the birth of muni had been a long-time coming. over the years the city was disjointed privately owned companies. horses and steam and electric-powered vehicles. creating a hodgepodge of transit options. none of them particularly satisfying to city residents. the city transit system like the city itself would have changes during the san francisco

earthquake. the transition that will pursue from this aftermath would change san francisco's transportation system once again. facilitated by city boss, abe ruth, ushering in the electric city car. the writing was on the wall. the clammer had begun for the experiment including public transit people. owned by the people and for the people. the idea of a consolidated city-owned transit system had begun traction. and in 1909, voters went to the polls and created a bond measure to create the people's railway. would become a reality three years later.

on december 28, 1912, mayor sonny rolph introduced the new geary electric streetcar line and the new san francisco railway. that he said would be the nucleus that would host the city. and san francisco gave further incentive to expand the city's network. a project by way of tunnel leading into chinatown by way of north beach. in december the first streetcar was driven into the tunnel. just two years after its berth, muni had added two lines. and k, l and m lines that span out from westportal.

in 1928, the j line opened heading west to the beach. in 1944 san francisco voters finally approved muni take-over of the market street railway. by then motor bus and trolley bus improvement had given them the ability to conquer san francisco's hills. after the war most of the street-car lines would be replaced with motor or trolley bus service. in 1947, the mayor recommended replacing two lines with motor coaches. and it appeared that san francisco's iconic cable cars had seen their final days. entered mrs. cluskin, the leader to save the cable cars. arguing that the cable cars were a symbol of the city, and she

entered a charter placed on the november ballot. it passed overwhelmly. the california street cable railway was purchased by the city in 1952. there were cut backs on the cable car system and in 1957 only three lines would remain. the three lines that exist today. in 1964 the cable car's future as part of california's transit system was sealed when it was proclaimed a national historic landmark. in february, 1980, muni metro were officially inaugurated.

in that same year, muni received its first fleet of buses equipped with wheelchair lifts. in 1982 when the cable car had a shut-down, they added an alternative attraction to the cars. the festival was a huge hit and would continue for the next four summers in a permanent f-line that would extend all the way to fisherman's wharf, by 2000 the f-line was in place. and in 2007 muni extended the third line to the southeast corner and returning to third street. for the first time in 60 years. in the course of last 100 years, muni's diverse workforce forged by men and women of innovation

have reflected the many cultures that flock to the city. muni's ground-breaking antidiscrimination has guaranteed equal opportunity for all. the city's policy mandates the course for the future, as they work diligently to increase options and increase multialternatives, and deduce -- reduce the carbon footprint. it continues to improve the systems. during this sen -- centennial year we reflect on the transit system. driven not