♪ i'm sorry mr. president they haven't gotten the slides yet. >> i'll do it again. i'd like

to call this meeting of the sfpuc commission to order at 1: 35. >> commissioner torres and commissioner ann moller caen is expected shortly. >> next item please. >> it's been moved and it's been seconded is there any public comment on approval of the meeting minutes all those in favor please signify by saying aye the item carries next item please. >> general public comment item 4. >> i have a speaker card for one other agenda item but not for this item is there any general public comment going once twice 3 times public comment is now closed madam next item please.

. >> commissioners. >> commissioner moran. >> i have a couple of things on communications. one is there is a letter from bawsca making 3 recommendations and i noticed we were just handed a statement from the gm with five recommendations on it. i haven't had a chance really to look at those and i know of the three that i had reviewed in the communications, there are a couple that had some twists to them but i think deserve some staff review what i'd like to request is the staff take these five recommendations under consideration and come back to the commission with a response to them at a future meeting.

>> from april 22nd. >> i haven't had a chance to cross check them but there's five within the letter and five within this sheet as well. >> rather than us react to these things un informed i'd like to have staff have a chance to look at. >> hearing no objections that will be the order. commissioner moran any others? >> yes, please. on the climate action plan a lot of things talked about there was a scorecard and report card on the environmental projects one thing i requested of staff sometime ago and has not been forthcoming i'd like to ask for a report card on the environmental programs that we

piloted at 525 golden gate for proof of concept some of them quite leading edge i think it's worth reporting back and say how are they working. i would be helped if we had a report from staff on how those are working. >> so you prefer to see that agendized? >> yes please. >> hearing no objections that shall be the order any others commissioner moran? >> yes. >> you are on a role. >> i'm on a role here. >> one of the things we received from staff was a report on the drought conditions and i wanted to call and i'm going to need help here -- i wanted to call the commission's attention to one of the charts that was included in that and does the staff have that in a form that can be put

on the over head. >> part of the presentation. >> oh it is part of the presentation i can hold my comments until then and the last one we were given copies of protest letters on rates and we received a couple more today -- interesting reading and i guess i would suggest that staff look at those for kind of messages that we haven't been successful in communicating so for example one of the common things that was raised is that we don't like rate increases because they are in excess of the rate of inflation and what we need to communicate more successfully is our operating costs have been contained within the rate of inflation it's the capital costs driving the rate increases and we need to be more successful in that

and we're increasing for a long time and i'm tired of it and i can't afford it i live on a fixed income we recognize it's a burden on some people but we have some programs for low income households. >> uh-huh. >> i think it's an opportunity to communicate that we do have some relief we can help you conserve so your bill goes down and help you with rate assistance if you qualify so within those letters there's some opportunities for more effective communication to address questions that people have that don't show up at community meetings and may not write letters but you know they are out there because they are so obvious and that concludes my -- >> thank you very much commissioner moran i'd like to echo that i'd like to have a

more robust discussion to continue that outreach to commissioner torres. >> is there any public comment on communications? >> seeing none public comment is now closed. >> other business. >> madam secretary next item please. >> item 7 is the report of the general manager. >> good afternoon. >> good afternoon how are you. >> i'm very well thank you. >> so one presentation we have today is the water supply outlook and we're going to present that. >> thank you steve ritchie assistant general manager for water on the water supply outlook this is a report we've been giving at each commission meeting for the last several meetings ever since we got into the drought situation we're in and can we get the slides up,

please? our total storage and reservoirs -- we've been holding our own there. that number is up from where it was earlier this year in march we had average precipitation for the month at hetch hetchy and so we've had a steadily increasing supply of precipitation and we routine ly provide this table for everyone's benefit as to our exact storage volumes in all of

our different reservoirs and hetch hetchy is 63 percent of maximum storage we're able to keep more in hetch hetchy partly due to the use of our water bank which we'll talk about in a little bit. back in january we were below the orange line the orange line represented 1977 water year which was just about the dryist year on record and even with no more precipitation we'll be better than 77 so the picture has improved we're talking about the lower end of the spectrum here this is still a drought condition make no mistake about that we can work through as long as we conserve and manage our resources wisely

the snow pack never really got very high only the maximum about 40 percent of the medium snow pack so the medium average level and it's as you can see tapering off melting and running off into the reservoirs this chart shows weekly deliveries through april 14th and starts on july and those are weekly numbers there the red is 5-year average and the green is this year and the dashed black line is what we're trying to get to in terms of reduction and so you can see it's been variable bouncing around that 10 percent reduction line so we're doing better now but we can do better particularly when we get into the dry summer months and we'll emphasize here in the city and

with our wholesale customers in the next couple of months. this is the graph that commissioner moran referred to the red line on that graph shows what the irrigation districts have as their maximum entitlements and rights so part of our obligation is to help make sure they get that amount if it's there. the blue line is the actual un impaired flow down the stream at don pedro when the blue line passes above the red line that's water we get when the blue line is below the red line that's the water that the irrigation districts get so the green line down near the bottom is the actual water that we take directly through our water rights off the

tuolumne river so what works for us is what we call the water bank which is where we let water go down into don pedro reservoir that the districts take in lieu of getting water off the river that allows us to store water there for them and so we'll probably draw our water bank down quite heavily this year to make sure we have the supplies we need so that's the picture of the river there and i don't know if commissioner moran would like to make any comments. >> yes thank you. it's a chart that we don't put up very often and it's a chart that defines how we get water from the river so that's why i wanted to spend just a few minutes look at it. the impact of that is that there's a couple important impacts one is we don't benefit

just from precipitation we get a little bit of benefit from that what we really do if we benefit from snow melt -- that happens later in the year so we don't really know how much water we're going to get to keep until fairly late in the year and that's a fact we have to live with and that explains -- earlier on we were pressing steve for how much water we have but the answer is we don't know until it goes through the snow melt process and if we get warm rains and comes in all at once we do really well but if it stays cold and just dribbles in we get nothing so that's a key element of how we have to plan for water and the other thing we don't take water from the system when the conditions are the dryist and this is an

environmental component in it and we don't do that in dry years we only take water from the river when the flows are high and that again is not appreciated very much but by virtue of our water rights we only take high flow into storage. so i think that's something as we're dealing with the state about dealing with dry year impacts we aren't depleting the river unless there's significant flow and when there is significant flow that's not so much of an issue those are the points i wanted to make seeing this chart was in front of us. >> can i get the slide back up, please? okay moving onto the next slide so the out comes we're looking at currently we're actually releasing water

from cherry reservoir now so spilling that water down cherry creak so we're beginning the process of refilling water bank now it's been depleted and will be depleted substantially it's very possible we'll continue those releases into the summer to make sure we don't get short on our water bank so we can't overdraw the water bank that's not acceptable so that way we actually get the ultimate water supply benefit our target level for cherry lake -- that's the water we'd expect to have as the emergency water supply that we're preparing to take advantage of if dry conditions

per sist into the future and we've gotten enough additional precipitation in a timely fashion it's going to be close so it's always comforting. one of the things that we're dealing with is that because of the dry conditions throughout the state the state water resources control board is consideration issuing curtailment notices and that would be an extreme measure for them. but if the water board does issue these pre14 curtailment notices our water rights are junior to the modesto irrigation districts but that's what we actually do because of the water bank so

our ability to divert water shouldn't be impacted. so we think we're in good shape there but helping people understand that is something that we need to do a lot of. as far as management actions going forward on april 15th we also put in our notice to continue to review customer demands weekly once we start to get into the summer and see where demands really go we may conclude to create a greater reduction we have several drought relief projects underway to make sure that we can bring supplies over from cherry to the hetchy system and we want to make sure it's

in good running condition so we'll be doing additional projects to improve all those facilities to help manage cherry water that we'd have to filter at s u.n. ol treatment plant and the board of supervisors just approved that project out for bid for us to begin construction and it wasn't designed as a drought relief project but the san francisco ground water project and the lower cherry aqueduct project are candidates to be submitted for proposals to the state. this is i hate to say

it's a very complex funding process because the state took a pot of money that is very elaborate and complex in the way it's admin istered it's going to be a little bit of a struggle but i'm pretty confidence that we'll get funding support for some projects here in the bay area with that i'll be available to answer any questions. >> thank you mr. ritchie. >> mr. president that concludes my report. >> thank you. >> are there any public comments on the general managers report? seeing none public comment is now closed. the next item on the agenda was there will be no report under the next item on the agenda but it was too late to have it removed that's item number 8

we'll move on -- madam secretary we'll move on please. >> there will be no separate discussion of these items unless a member of the commission or public request. >> move to approve. >> second. >> it's been moved to approve the list of items under the consent calendar. >> is there any public comment on any items on the consent calendar? >> seeing none. >> the ayes have it the motion carries. >> item 10 approve an increase in the construction contract cost contingent for contract hh 954 r 2 in the amount of 605 thousand and up to 77

consecutive calendar days and authorize future modifications to the contract. . >> commissioners mr. ritchie. >> to increase the contract amount due to design changes encountered there and also some effects of the rim fire on the facilities at the intake switchyard which accounted for increased costs as well so we'd recommend approval of the item. >> are there any questions for mr. ritchie. >> seeing none i'll entertain a motion. >> so moved. >> it's been moved and seconded. >> is there any public comment on item number 10. >> seeing none public comment is now closed all in favor please signify by saying aye the aye have it the motion carries. . >> next item please. >> improve the schedule and

budget of the march revised improvement program in compliance with california assembly bills and seek supervisor's approval for reappropriation of existing funds. >> we have to have a public hearing on this one mr. president. >> good afternoon. >> good afternoon sir. my name is -- and i manage the project management bureau. as you know, a month ago we did post and this is a prerequirement to report back to the state if we do have the schedule or the scope seeing it's in our program and we then took the exercise to do this thing and

the question is why we do it. well, many times the projects do have large variances the schedule the cost and scope which can't be mitigated we want to look at the realistic numbers are and how we can finance or mitigate it. then we also look at it all those projects which have been done if there is funding left in there can that be reallocated to use somewhere else? not only that i think our system on which we report is the management system and it has a good baseline in order to give you an accurate report so we wanted to make sure that we meaningfully revise this thing and give you an accurate picture and the california water board requires us that if

there are projects that are going to be delayed we're obligated to report them and that's why what we did is 2 months ago the program director and his team all project managers and everybody else started working on developing a real solid baseline all construction estimates were looked at all change orders and potential change orders pending change orders and the trends and we came up with a construction estimate and then we looked at a bottom to top analysis of the soft cast as you know the product is in a declining mode in a sense the resources got to be reallocated and whether then we came up

with the estimates. when you look at the key milestones we looked at the shut downs are and how can these schedules be mitigated and after doing that exercise this which was posted was created. this picture actually you might have seen earlier too it gives you a good feeling that what the progress has been made as you can see the local program is pretty much coming to conclusion there are 2 projects in construction one is completed essentially complete and the the last one the sutro reservoir project and you can see the projects are in construction and out of that

the transmission upgrade all projects are going to be completed substantially in the next 12 months so good progress has been made. 63 out of the 83 projects are done. we have now in construction if we look at it, 18 months back when we were at peak we were burning about 206,000 hours now we're at 98 less than half you can see that where we are going 3 projects are only left in preconstruction and one of them actually you already have awarded a concession and many are in the design or planning and the planning is the alameda

creek restoration project. then if you look at the scope, what changed? as you can see, the scope changes are put in five major projects and of course one of them is the calaveras dam and the second one -- the name changed i think 3 times. i remind you that this tunnel has not been inspected for sixty plus years so we'll be inspecting that and the upgrade of the tunnel has a little change and the bio regional restoration and we took out the long-term mitigation and put it in a different project. as a result looking at all these and how we can really do it, seemed like the bottom line is the program

will be one and a half month delayed and the total cost in the project on the program actually will be will be a $125 million so a 125 as you can see most of the 98 billion is contributed to the calaveras dam. in a nutshell -- >> excuse me commissioner torres. >> thank you mr. president on the issue of the tunnel why is there a delay on that. >> in the bay tunnel. >> yeah. >> actually it's on schedule the delay is because the original concept was when we tested the tunnel the water was going to be dumped into the bay now the concept has changed now as a result so that's the

logistics. >> what's the benefit to the rate pay er for that. >> we save the water. >> i want to make sure we got that answer on the record. >> exactly. exactly. >> thank you. >> good question. >> all right. >> these are the lists of the projects i think we've given you a package that gives you pretty good information about why things changed where they changed these are the summaries of the five projects we actually saved money and the five projects which actually required it and the savings are the water treatment plant has been completed it gave back 5.4 million and we look at the contingents and look at what

the risks are there and reduce the funding from $5 million and this is a really technically challenging project but on the other hand the project has made very good progress now i believe it's pretty much been handled and as a result we reduced $3.1 million out of the contingent and same with the pipeline which has been done which is also done and contributed a million plus. now, the newer tunnel is going to require besides calaveras dam is going to require $15 million. further more i think it is the access to the size we wanted and negotiations with san o