the reductions totalled about 179 $179 million and then there were a couple of policy decisions in the mayor's office as well to increase so the first one mentioned by the general manager was the go solar moving that to $5 million in each of the next 2 years as well as hearing the call to drought preparedness and aqueduct rehabilitation project. so that deserves a special call out. power reductions of 134 $134 million and water reductions primarily related to updates as well as the delays for joint projects like the facilities and you will see large cuts there in the facilities and we wanted to do more work in the moccasin

facilities but it was chosen to cut about $31 million there and that leaves $26 million still in the plan but never the less it's not as high as it was. >> i have a question. looking over the list, i see that most everything is up country. are we just putting that on hold for another time or -- because that was our conversation when we were doing the budging in terms of of what has to be done up country. >> it depends on the item for example the san joaquin pipeline yes we're deciding not to do that over the next couple years and in the case of the moccasin generator rewind only doing one of the units as opposed to both of them that we had planned to do those are

examples where we're deferring them at some point they don't last more than 40 or 45 years and will be passed their useful life but life. so there was a trade-off there. >> so one thing i wanted to point out on on the 10-year capital plan is that we look at all our assets and then we identify when would be a timing to actually address their deficiencies. the one thing that makes me comfortable is that every year we look at at the 10-year capital plan so if we identify something that we did not see like mountain tunnel, we then bring it forward and have to shuffle the deck and so we, you know, we're trying to make smart decisions, but the comfort level is that if something were to happen we

have the ability to bring it back up closer in in the 10-year capital plan. >> in many cases there's money remaining the far right hand column shows you where it's not cut to zero where there's money remaining and in some cases it's cut to zero in the case of the hatch ery because it's deemed not needed and part of that decision is that there was prior year appropriation still existing of about a million dollars in that case and lastly the light consolidation this was an idea that we discussed believed it was a good idea but to the degree doesn't have a funding source so until we identify a funding source, it's been cut. >> those are the key changes on

the capital programs. on the next slide, slide 6, is the operating budget, and you will see here that the mayor's proposed budget largely leaves nearly as you last saw it the operating budget most of the changes were made on the capital budget in particular and updated where there are key differences are on the revenue side so it shows additional revenue being at a penny versus a half a penny over the next 2 years and with the additional power revenues we have to spend less reserves so spending of less reserves out of the operating budget which means the budget is actually slightly lower than what would have been the last time you saw it in february and that's because we were able then to fund more of the capital using bonds over the next 10 years so a

combination of solutions and penny versus a half a penny and those additional pennies add up and allow us to have more of a debt service program and pay the mortgage or bond service and cuts and all of those together plus the reprogramming of the 19 and a half million of cca reserves allowed us to go from what was a half a billion dollars to a projected shortfall to go above zero and the possibilities of achieving a 15 percent reserve target if we get that $8 million of further savings over the next 10 years so those are the key changes. on the position side, i've also included this slide for you. the mayor's office did reduce further one position from what the commission had last seen and that was due to attrition or salary savings.

i'm happy to answer any questions i should also mention later in your packet today you will see the updated hetch hetchy capital budget and hetch hetchy financial plan and it will then go into further detail on what we did on this item. >> thank you. >> commissioner vietor i have . >> i have a couple of questions. and i'm sorry that i missed the presentation on thursday but i think you heard it, right? you were there at the geo meeting. >> i heard it i was not personally there but hale was. >> their program when they first invested in that program,

mar inenergy authority. >> i don't know that off the top of my head. >> just looking at return on investment. >> barbara hail they had a modest financial outlay in the hundreds of thousands of dollars they are now financially stable functioning program 2 years in they have doubled in size. >> what kind of revenue are they generating. >> i believe i can double check that figure for you, but i believe mar inenergy is now setting aside 3 to 3 to 5 $500,000 a year towards renewable programming because that's in excess of their needs for admin istering the program. >> i was curious about that and

richard recently joined marin, cca am i right? >> yes they paid a $40,000 fee to determine whether it would be neutral to their existing customer base to add the richmond customers to the program they determined it would be neutral or beneficial to their existing customer base and went forward with the richmond governing board saying you are welcome to join if you wish and they said yes and now they are members of the joint power authority. >> so seems like times have changed and this reserve we put aside might not be as necessary as it was to either launch or join the cca, correct? >> i think that's a fair statement. we've had nearly 2 years pass and the parking the

market is getting more comfortable with the experience of cca's and one thing that's also unique when we last visited this program 2 years ago on the shell negotiations, that was for a product that was a 4 and a half to 5-year negotiation known priced product whereas to the degree you are not having known rates over the next 5 years, that's, that's gives you less certainty it would really depend upon, you know, what all the particulars are of the program and the program design how long the rates are guaranteed or knowable or known, and so when we were negotiating with shell north america it was a price

certain amount of power that came with reserve requirements that were included in that 19 and a half. >> and i have a couple of questions on the go solar program i understand now the proposal -- some of this might be for miss hale and some of it might be for you -- how much have we invested so far in go solar since the launch of the program. >> $24 million and i believe the actual spending has $20 million out the door but i know miss hail has done a lot of allocations of the money some of it has been allocated but not yet spent since 2008. >> 20 million spent since 2008. >> so some still available and allocated but not yet --

>> how many jobs have been created short-term and then career jobs from the go solar program from inception 2008. >> i want to make sure we verify the numbers but i think it's appropriate. >> i don't know the job numbers off the top of my head but -- >> can you fill in here? >> i have a slide we have 21 currently employed. >> 21 total people. >> yes as is shown here by zip code those are the disadvantaged san francisco san francisco

san franciscans. >> how many total with the installers. >> i don't have the total. >> so for our $20 million ininvestment how many jobs have been created in the in the last 6 years. >> i don't have that figure. >> if we're going to have this kind of line of questioning we need to have verified numbers we need to call a hearing this is about the mayor's budget right? if we have the numbers available we should put it on the table if we don't -- go ahead and continue. >> i'm just trying to figure out so $6 million so then my next question on the go solar program is ghd reductions that we've seen because this was the purpose of this money, so in

the in the last 6 years for a $20 million ininvestment because the go solar's intent was for those two goals was my understanding. >> i'm checking my presentation from the hearing you referenced to see if i covered that. when the program was established it was established to increase the number of solar installations in san francisco because studies had been done and that san francisco county had a lower uptake than other bay area counties and to incorporate a workforce element in the program and we were also in the policy documents anticipating that it would lower the cost overall of developing solar in

san francisco which would provide benefit to our municipal program as well so those were the founding principals of the go solar san francisco program. >> so we don't know if it's meeting any of those goals or whether we've -- do you know how many solar installs has increased. >> it has indeed increased. that's an uptake substantial in comparison to the trend line it was on prior to the program. i'll bring back answers that i don't have readily available to you. >> if we could at some point.

>> and so if we could by that time at least have answers to these questions and somewhat embarrassed that we're going to deliberate on this budget without this information so. >> i'm happy to bring the information back to the 27th. >> thank you. >> commissioner, are you wanting to know how much energy was saved -- do we have that information available? >> the 8.1 mega watts but i i don't know how that translates. >> the dollar savings i think

that's important data to compare especially to those that advocated that we have this clean energy project and well let's compare the numbers not just apples and oranges. >> yeah i appreciate that and you know with the jobs and the reduction. >> so by all means continue but if we're going to have a hearing then i think we have to properly notice a hearing. but go ahead commissioner vietor. >> if possible to come back. so i'd like to make a statement about the 19.5 to the chair. >> absolutely. >> last week i'm not sure if everybody was able to see that there was another very alarming climate change report released called the national climate assessment just in time for the record setting heat that we're

now experiencing in the bay area which is already parched. so as we learned from our colleagues at the department of the environment clean power would have been the fastest way and accelerated our transition to the clean energy economy to which president obama recently renewed his vowed and redoubled his efforts and i understand that 6 million of the 19.5 million would be used to fund more solar projects for the record i love solar projects and renewable energy but i only which there were more career jobs being realized but we're not going to get where we need to go with just going solar we

need more. we need to realize the goals that the board of supervisors originally laid out to fight climate change we need a comprehensive plan and program to get us there i guess i was overly optimistic with sonoma county coming online that san francisco would step up to ensure a livable city for future generations i'm still hopeful that we'll join mar inand richmond and sonoma to. so it is with great re-luctance

that i'll vote to approve the revised budget but redouble or efforts to create a plan for the crisis we have ahead. >> i don't see any agreement i certainly don't see any among my colleagues that is one of the reasons why for me personally i'm enthusiastic about opening the dialogue with the department of environment beginning to have a routine partnership with them related to these issues because i think often times we seem like the only opportunity for the public and the advocates to come have that conversation. you know, i'm an advocate of solar and an advocate of moving forward and an advocate in creating opportunities if they be one or 21 at a time so i think that probably we can do it all. i'm

interested still in getting a report on marin if the numbers have changed and i'm interested in getting a full report on go solar and the actual impacts and savings and we'll continue to have both conversations. commissioners is there anything else to add? commissioner moran. >> thank you. on your statement on the budget as a whole, i think the budget protection that we looked at when we passed the budget was dire indeed and we had some discussion about what that represented and the challenge it represented and i think where we are today in the decisions that have been made by the mayor's office i think it was a tremendous step in the right direction. it is a partial step. and i think

clearly, these lines fall off in the out years and we can't allow that to happen. i think the reason it is the way it is, is the recognition that there's some big things in play. the general manager mentioned several of them and within the next year or within a year from now the five underlying contracts will expire and need to be renewed okay so it is very difficult at the moment to say with the precision what the out years of the plan look like so the fact that there's still some challenge remaining in the out years is not especially disturbing it's especially note worthy and we need to approach this as a work in in progress and frankly there's a whole lot in play that will determine how this plays out we don't

actually have this in front of us, do we? this is not an item for approval? >> we have the budget later in the agenda. >> oh okay. because we don't really need to do that do we? the mayor has authority to modify the budget? >> your technical adoption is resolved to direct the general manager to request the supplemental appropriation to the board of supervisor's. >> so those were the two items that were added? >> specifically that item in your legislation the other two items related to hetch hetchy is the financial plan and capital plan those 10-year looks so the charter does require to adopt the financial

and capital plan and i know the city attorney -- but those two require the adoption those help us and are instrumental as we t up the bond sale and the capital supplemental directs the general manager to request the supplemental. >> and the staff is coming up with a plan to address the uncertainties that are out there and your request on a plan that deals with the cca as well and i think that's extremely important and i know the staff is working very hard on it. the only other comment i'll make is i like the go solar program i don't like funding it from our budget the people that get the grants are not our customers and i think that's, it puts an additional burden on us that isn't

appropriate i think pg and e should step up to that and make investments themselves. >> that's going to happen real soon. . >> of course. >> it is a real dilemma and it's not something that's just us, it's statewide there's insufficient attention to funds being put into that and it should be addressed at the statewide level as well. >> if i can make a comment -- so as you can tell there's a lot of hard choices that the mayor's office had to make and i just wanted to point out that we've been deferring infrastructure for a long time and as we talk about the program benefits that the program offered us over the years, if we don't pay attention

to hetch hetchy none of this would be possible so i wanted to make sure everyone is grounded we need to take care of hetch hetchy because it produces 97 percent of our greenhouse gas free portfolio that we have i think we need to invest in what we have so i think we need to look at that and the other thing in doing this business plan will really inform us in the direction we want to go and as it relates to cca we're looking at ways where we can make cca work for us in the past cca -- how can we make it a lower cost and use hetchy power and now looking at going after customers and getting more customers using heech

hetch hetchy so as far as go solar is concerned we recognize that there is a benefit for go solar and when we were planning to look for other ways to look for funding other than coming to hetchy since we have a financial situation so they can be self-sufficient so i talked to david hofstraw so you can't do a property tax so maybe you can look at transfer tax as a vehicle for funding i mean there's other i think thises that we can do to help move the needle instead of fighting over what program is best. so i think that the dialogue that we have will have at the department of the environment will hopefully be very fruitful and informative

but we as a power enterprise our work is not done we plan to meet to meet quarterly there's a lot of challenges and demands put on that agency so we'll come to you with hopefully more information on how we're doing. >> thank you general manager kelly so in light of those comments i think that meeting on may 27th is pretty critical for me you know i envision my vision is that we're going to have a pretty detailed but brief conversation about the many many things that the public utilities commission and staff are doing to benefit the environment and benefit the community workforce and then we'll have an opportunity in all likely hood to discuss the things that aren't being done i think the solar panel installation is a step in the

right direction but i think the opportunity is also there to have the conversation about mar inand changes in numbers and everything else that's why we moved to meet in february and that's why i think the conversation will continue over there at least initially on may 27th so thank you for your report. >> so that concludes my comments, public comments. >> on the general manager's report is there any public comment? francisco? >> the general manager's report there are too many things that were discussed today and it's very difficult within 3 minutes

to give some pertinent comments on the many issues that were discussed today and many of them in a in in a convoluted manner. i have a letter and maybe i'll bring it the next time so you can read it specifying those issues that i have to deal with infrastructure energy water so on and so forth on behalf of the tribe. you have heard the general manager say today again and again about hetch hetchy and also the olone and other tribes. the whole thing is that

ever since the white man came to california, destroyed the red wood forest polluted our waters did a lot of destruction now at the 11th hour some of us have awoke enand you talk about climate change this that and the other. well, you know, i like to tell you all having pondered over this -- i'm a director of the environmental justice advocacy and put over 45 years addressing environmental issues not just talking and writing about it and as your attorney here knows from the days when you were on the port commission -- really addressing issues so i write ab