we do in the quarterly budget report and review. and i'm on slide 6 right now. we'll also give you updates as far as where we are on the pge negotiations and anything to do with debt service as we go into borrowing funds the first time in the fall and previously i should point out before the mayor's proposed budget now we only need to borrow about $45 million so a significant amount of progress has been made over the 10 years but also in the first 2 years. the specific items here, pardon me, will be the next step for us before the board of supervisors those come

next week on may 21st and and also may 28th and we'll have the board's budget hearings and review the budget now in detail with the board's budget budget analysts and the financial plan as a number of sheets included in it going through all the various scenarios and so that when we do we do go to the bond market, we go through all the key risks as well as all the key, flexibilities that we have in the enterprise. summarized on page 8 and also the solving of a very large fiscal imbalances and the key

assumptions are on page 8 and they do include one example of a revision that i'd like to make administratively if you so authorize in your amendment to update the capital plan increase to reflect the the $155 million worth of reductions and assume power revenue bonds over the 10 years as well as the one penny reductions and then level out towards about a half a penny and to the degree rate increases are more than half a penny that would allow us to add back some of the cut capital or reduced capital that we had to make those very difficult choices. >> slide 9 was the discussion as it stood in february. slide 10 is as it stands now before

with all solutions above zero and on this one i'll mention with the third quarter budget report we did pop above the 15 percent reserve line so congratulations again that was even in light of a very difficult drought year where our power revenues we were a a $13 million shorter because of the impact of the drought in the current year so the mayor's proposed budget took that into consideration as well as the funding for the capital plan. >> the tables are detailed here and there are the three scenarios without savings and with 4 million in savings and $8 million of savings and i'd like to draw your attention to one new slide new to us compared to prior years and that would be slide 14 since we now have 3 scenarios in our

plan shows you how much projected revenue funding and bond funding is under each of those 3 scenarios and i think it's an improvement and we look forward to doing it in future years as well. as you go to the go to the far right hand column you see here and past the 10-year financial plan we'd run out of additional bonding authority so this is one of those enterprises just like the water and sewer enterprise we're managing about a hundred year old utility and it does require now at this time and at our point on our watches to do a lot of significant rebuilds and efforts and provides you as policy makers the documentation to say this is not over this enterprise is going to need to have further

rate increases in the future and what you see before you still is a significant savings to the general fund the current rates provide a $50 million savings to the general fund about a a 53 percent discount compared to what pge and about 32 percent increase or at 32 percent savings and so still $50 million of savings in the current year and $45 million in savings to the general fund so still something to be very proud of hetch hetchy and the system that we have the pleasure to run and you oversee it is an incredibly efficient operation -- >> commissioner torres.

>> forgive me but i thought i saw a reference to cap and trade revenue and what is that amount? >> it's based upon -- >> i know what it's based on but what is it for us. >> with your prior action we use it for things to fund energy efficiency as well as city owned renewables. >> are there any other financial opportunities that we might have other than bond authority? >> we have also looked at california energy commission loans we've applied for thanks to you we've gotten approval for clean renewable energy bonds from the federal government when those did exist the krebs funding and also qualified for and applied for the energy energy conservation

and we're always looking for the lowest cost debt for the rate payers but now we need to go into revenue bonds. >> i just wanted to make sure we articulate that. >> looking at commercial paper we need to establish a credit first as as soon as we do that . >> that shouldn't be difficult, should it? >> it's unique because we have an environment where we had a very large fiscal cliff so if we were to go to market 4 months ago when we saw a half a billion dollars fiscal cliff -- >> i know that we rely upon

commercial paper to deal with that you are suggesting we're not ready there? >> we also have the authority under the charter through the controller's office and the treasurer -- in this case it's the local treasurer so we've reviewed that we have been very uniquely blessed with hetch hetchy to be able to cash fund everything for the last several decades and that's a unique thing so we're looking at it and always going after the lowest cost for the rate payers. >> thank you mr. president. >> so again projected saving -- however only about 32 percent or so increase or encounter in year 10 compared to 63 million and then the rest of them are technical tables and shows what the value of a penny is to the

various departments. >> yes commissioner moran. >> thank you todd the numbers you have circled that's the impact on the departments on the one penny increase? >> that would be if we included the mta before their baseline if. if we excluded the mta -- >> half of that was part of the prior planning? >> that's right. >> okay so the additional half cent is like 1.7 million? >> the additional half cent will be directly on the general

fund about 1 dot 4 or 1 dot 5 million for electricity and in addition the mayor's proposal full reimbursement -- >> then the additional cost to go solar? >> the additional cost to go solar would be to go solar would be $3 million a year over the next 2 years. >> okay so basically most of the half cent goes to go solar? >> that's the equivalent, yeah. >> thank you. >> so again shows the dramatic improvement compared to what we started with back in february and it was also with difficult choices so just to be able to

assume the one penny over the next 3 years and a half a penny a penny as well as to update it to reflect the third quarter strong reserve that's slightly more than 15 percent. >> sorry stuck on that question -- so you don't need to attribute a certain pot of money for a program like go go solar that doesn't go back and benefit the public dollar if you will? i know i'm not saying that right but aren't we subsidizing a residential program right? >> it is a residential program and it's a program that's not directly our customers currently but it's a policy prerogative and so it really is a policy choice. >> so it doesn't need to be a

direct transfer from a certain source of money? >> my reason for raising the point is that it is sometimes viewed that that hetchy funding a program like go solar is free money, it's not. so that you know the more that we do, the more pressure that puts in on general fund power rates and the more pressure that puts on the general fund -- >> right. >> we're at a point now where there's reserves where we used to have cash reserves they are projected to be significantly lowered to what are just what our 15 percent levels are the lowest levels given the volatility that we're in. so now that we have to go borrow money to bond fund our capital.

mr. general manager? >> i just wanted to highlight the fact any program especially after the 2 years of go solar or any other program like that, we pretty much maximized out so any additional capital un foreseen capital issues that will come up we would turn to the general fund rate to try to compensate or look for for new, customers and i think the mayor's office recognized that. >> we might want to talk to the department of the environment about that hetch hetchy money isn't free basically the equivalent of general fund money and how do we do what we

feel we need to do? >> so in light of those comments i did send a communication to the general manager and cc's commissioner vietor and the go solar conversation is absolutely appropriate. >> okay thank you and the next item is also the presentation in your packet under item 15 in the capital plan the slide there is a repeat from what the covered in the general manager reports and those updates to balance the capital program as well as the mayor's proposed increased. it reprograms cca to make us have to borrow less

money over the year in particular. only $45 million in the fall as opposed to $72 million that helps there and the hetch hetchy plan is now balanced over 10 years and we'll be back before you every single year so with that item 16 then is the first 2 years of this plan and a request of the general manager to request supplemental appropriation. happy to answer any questions. >> so with respect to the slight changes this typographical right? >> yeah they are headings so scenario 1, 2, and 3 -- cso is very detailed oriented so i'll provide those for the record to the secretary as well.

>> there's no objections from my colleagues very good. any questions? >> thank you todd. >> thank you. >> so with respective to items 14, 15 and 16 right donna? >> correct. >> i'll call for a motion unless the commissioner would prefer to do separately. >> so moved. >> it's been moved and seconded. >> i'll now call for public comment. seeing none public comment is now closed. all those in favor please signify by saying aye. >> madam secretary will you please read the next item? >> would you like for me -- >> closed session items which we'll hear public comment on item 19 will be anticipated litigation item 20 conference

with property negotiatorr. >> item 21. >> item 22. >> item 23. >> item 24. >> item 25. >> item 26. >> now we are onto item 17. >> thank you very much donna. >> with respect to item number 17 i have a number of speaker cards if you want to have a comment on item number 17 would

you please fill one out? i'd like to call tanya urofski. >> good afternoon tanya you have a special consideration i believe you also have a statement from the member of the public who couldn't be here today so you can have up to 6 minutes. >> thank . >> thank you. i won't take that long. thank you so much for allowing me to speak this afternoon. i'm tanya a group of over 200 concerned citizens that united together 6 years ago and welcome place for residents and visitors alike i walk allot and people stop us locals for questions and directions we love answering those questions. many visitors

to our neighborhood are san francisco residents come from other neighborhoods in the city specifically and more particular the mission district there's a lot of families that come and have recreation in our area they come for water use and -- this sunday for instance i ran into a family they came to the u.s. from elsalvador 2 years ago their little 2-year old played with my dog they told me how much they enjoyed being at this future park site i see families coming to our neighborhood to recreate at the

park. they are mostly large families with children and the families all want to come and this is going to be their park too this is regarding item 20 on your closed session and i'm just going to read an excerpt from chianlin who wanted me to say this land is an open space and acts as a hub between many diverse neighborhoods and clean area and beautiful views that concludes my comment thank you for your time. >> thank you very much for being here today. the next speaker card i have is from jeanie walker. >> my name is jean ye walker

and i'm happy to be here. i have been involved in many people -- representing russian hill we moved to san francisco over 39 years ago i'm a retired teacher after teaching 35 years. >> good for you. >> when we started having children i asked the neighbor mr. and mrs. wong where should we go take our kids to play baseball and they said there's 2 parks and well i took the kids up to the alice mar gold for basketball and tennis that's all and then went to bay street and the ball went into

the street i go after him before the traffic gets him that was the first and last time we were on bay street. we are fortunate to have this area. it is so beautiful and can be made so so -- san francisco is fortunate that families are moving here from all parts of the city and recently i know that from our street alone on francisco we have 7 more kids on on the block so these children need a place to play we are getting a significant fluks of people. >> this has been zoned for open space for sometime we've been working for a park for decades and sincerely i hope you will facility this for us.

>> thank you very much for being here today. helen race r and bruce king and frank dawkin so you can line up if you want. >> hello commissioners. >> hello ann. >> thank you so much for this opportunity to speak about a proposed park at hyde and francisco i think the real beneficiaries will be our visitors. many of them getting off the cable car at hyde and lombard to view the crooked street. >> herb caen 1972 when i

connect with those children sometimes they need a bathroom well i happen to have one so i often have a steady stream of children coming to the bathrooms. we will have bathrooms at francisco park which is really exciting thing. i care passionate ly about this park i've solicited pledges from people and i've certainly given myself i've made my pledge as have all our committee so i do thank you for this chance to speak to you about what i hope will be a park for all people thank you. >> thank you very muchfor being here thanks for all your hard work. bruce king please. >> good afternoon bruce king 28-year resident of russian

hill and during that time my choice if i wanted to kick a ball throw an frisbee was to to go to the busy district. i've worked with the improvement district for 8 years trying to get this property accessible to the public and for the last 3 years worked with north beach neighbors and russian hill neighbors and bi monthly meetings to reach a park project consensus and also had collaboration with the park department department and continue to receive additional support from additional neighborhood recreational open space groups throughout the city. there's broad public support there's broad political support for this project and no

opposition that we're aware of at this time. i feel this is a lifetime opportunity to add a beautiful new recreational facility for san francisco's future and for the benefit of all who live and visit here i thank you for your time and support. >> thank you for being here today. john lock rin. >> good afternoon. >> good afternoon general manager and commissioners. we also have a lot of supporters who have come to us or we've gone to them. obviously the neighborhood groups that are part of the committee and we have gallileo and golden gate auto bahn society san francisco beautiful and san francisco parks alliance and san francisco tomorrow and even the rowing club even though it's not on the water's edge and

many others that we're speaking to as well. it's an open space and to make it a park will make it a much more accessible open space as far as the accessibility over the the last 10 years -- i live on francisco and had some major operations and that path that is the francisco path as we call it to the hyde section was my therapy walk and the puc was nice enough to put in timber steps that ended up as a de facto seat that i could sit there so i could get the mental nourishment so i could cover so i thank the puc for the bench and i hope it's the leading edge for other people to sit

there and contemplate the beautiful view from the golden gate bridge to the richmond bridge and all that's between it thank you very much. >> thank you for being here. thanks for being here. good afternoon. >> good afternoon. you have heard from people from the neighborhood. i reside in be rna l heights but i had the opportunity to see the view and see the opportunity to make this into a park and transform that area. 3 reasons for change i see it's another opportunity for green space for kids, adults to rumpus and to kick balls without worrying about traffic. i see as i

stated, the view being able to see the golden gate bridge from there without having to deal with a lot of the people who are down at the on the waterfront itself and being able to be a part of the community and thirdly, the environment and city pride. to be able to have that green space to enlarge the opportunity to have more trees in san francisco, that's the reason i feel that this should be a park and to broaden the neighborhood. thank you. >> thank you very much for coming today. >> oh no problem. >> i'm going to call 3 more. i'm going to start with abraham simmons lynn jefferson and robert gerrard.

>> good afternoon. >> i come to you as a father who speaks in favor of this project. this park from the perspective of a father of 3 is truly a god sent i do not get out here enough and speak enough about the project i like and in opposition to the ones i don't but i'm almost always in favor of these projects for the families to have an easier time in san francisco and to stay in san francisco so i want to say this project is a god sent and i don't get a chance to thank all these people all the time to put in a word from the north beach neighbors and russian hill neighbors all the people we're hearing from today who have been in support of this project that make lives like mine