gentlemen, let me first a call this san francisco public utilities commission to order at the 2:00 p.m. mrrtd read the roll >> commissioner courtney. kwaen. commissioner torres. commissioner moran is expected in a moment and commissioner torres is excused >> thank you please call the roll. >> the next it the minutes for may 13, 2014. >> commissioners. >> i'd like to move the approval. >> it's been mofld and seconded my public comment relate to item 3 the approval of the minutes of may seeing none, public comment is closed. it's been moved and seconded

i'll call for a vote please certify by you and opposed the motion carries madam secretary next >> i have 3 speaker cards please submit a speaker cards the first is from francisco. good afternoon >> good afternoon, commissioners. i'd like to first take action (inaudible) >> advocates come over here to speak so there are some new assistant general manager's who have come on board that are other assistant general managers who have already about this on board and, of course, our general manager who knows

elsewhere that i'm going to be speaking about in the two minutes and 21 seconds that i have. so let me start with reminding everybody at one time a force main by third my marine was compromised the extractions in this area explicit do it good job on the main force and on the side that conduits that were dug compromising the main force you all need to get some explanation but that was a very, very serious situation it commodity the park and sit down that is in existence and destroyed number

it you, you know, commissioners at one time not a general manager and another assistant general manager wanted to put there three combustion con biennials we had a commissioner richard who worked for the community to stop that nuisance and none 3 for the last 4 years i've been writing about cal versus we know the situation the good thing is we have a project manager his name is dan his past experience will help him to address the situation at hand arrest number 4 my writings i mention about the mountain tunnel so somehow the spashgs wasn't done correct and now we

have to pay for it. number 5 we need to study go solar and 6 weighing the testimony we'll can you think some real injustice with the community choice we need to reflect we if we don't have community members speaking up some community members do what they want and we need a buffer >> thank you fanning kiss the next card. good afternoon >> good afternoon, commissioners. i'm a long time resident of san francisco. i've been a member of the armed forces over 18 years and if upper here 5 years ago me and my team won the i love sf water

competition we wanted to promote easy ways for people to conserve water i'm here as a grassroots and resident to promote for consumption of san francisco water. i know it sounds strange but we'll all agree on water is life. and it's a human right. people throughout the world live throughout cities like san francisco need save cleaning drinking you water but throughout countries the water has turned into a highly profitable business it's sold in the form of plastic bottled water. this consumption trend is accelerated from 20 and empty

that plastic water bottles file our water resources. we know it takes a huge amount of water and we all agree this consumption model it extremely wasteful and unsustainable if san francisco wants to continue to be a leader for our generation and future generations we have to phase out plastic water bottle we passed a law banding the plastic water sales from all public buildings how this alone will do little to go change consumers behavior people buy bottled water in plastic because it's little weight. with is we have a solution we used to use in the past called

drinking fountains the only long time solution is to invest like new york and boston and san jose have realized this and building more drinking fountains we can't do this with 10 or 20 drinking fountains by 0 one thousand might. ultimately drinking fountains should be prevalent and they know the water is safe and tastes good soon they won't think about buying bottled water i realize oh, done >> go ahead and finish. >> i realize it won't be easy there's high-up front costs and reoccurring maintenance costs by with sf leadership we can get

this done san francisco residents want and deserve this our grassroots organization will support you in that my way we can to make this happen. >> thank you, sir for coming. >> your services. next card is john m. kelly. good afternoon >> good afternoon, commissioners. my name is john kelly i'm a native san franciscan and democratic and a member of the sierra club, however, today, i speak four myself today thank you for your service. i have come to speak about your agrees ground water supply project you know because you approved the project it was an historic decision because for the first time after 80 almost 80 years ground water will be

mixture in to san francisco's high quality hetch hetchy water. this is decision t is going forward whether the drought conditions exist or not your spooilz our agency is not proud of this decision there's been have little publicity about it and very few san franciscans know it ground water is subterranean and a decision to insert ground water into our legendary hetch hetchy you high quality drinking water shouldn't, subterranean i ask the commission immediately send notice to all san francisco residents informing them of your historic decision to change the composition and quality of our drinking water let the sunshine

in commissioners. i have a letter i've written to the commission i will request that it be made part of our record >> it will thank you, very much. mr. kelly for being here today. any other speakers on general public comment. seeing none, general public comment is closed. . madam secretary next item >> item 5 communications. >> commissioners on the communications. commissioner moran >> thank you, my apologizes for being late. on the visual interject piloting program there was nothing in the item that mentioned the program and it's final come back for puc approval. it's my absorption and wish it will be required and my desire

to have it brought back >> commissioners. if there's no objection that will be the order. any other items on communications commissioners? seeing none, i'll call for public school public comment on existence my public comment madam secretary >> other commission business. >> commissioners. just one item at the attraction we'll have the commission think the environment madam secretary oh, call for public comment seeing none, madam secretary next item >> the report of the general

manager. >> first item i'm doing i'd like tooz give an update on the water supply steve ricky pursue. >> the general manager if i could have the slides this is a regular update on our water supply conditions here at the puc our total reservoir storage is 3 hundred and 6 of architects the water bank we talked about is working for us in terms of having the supply the precipitation at hetch hetchy is normal we don't expect any more water this junior year. the demand response is variable for the 10 percent reductions. this table shows the current reservoir storage the two are hetch hetchy is almost 91

percent at the capacity which is a again thing the reason it is so high we have served the needs of the turlock with the water banks you see 42 percent of maximum capacity it's working the way it should with hetch hetchy as normal we're not out of the drought, however. this is the precipitation chart i've shown you see the 2014 level is approaching the 2007 level closely and the snowpack is gone for the year it's running off into our reservoirs. the delivery slide the green diamonds that show the level of delivery continues to be variable it drops once again and pops back up with when the

weather warms up this is our delivery to the whole customers to reconsider my different message to the folks out there. the control board is considering issuing occur contaminate nos to the water right holders they are walking up to that if the water board issues the curtailing we'll have our pre2014 are modesto and turlock the state boards staff stayed they're trying to make sure that the legal water yourselves down stream are okay. and our staff t is working with the legal council to make sure that our rights are protected should anything go forward. heave given the indication i

they maybe considering emergency recollections in june. we are relieving the water from cherry to make sure we've got the maximum amount of water and ramping up to open missing our water bank. the cherry is one hundred and 50 thousand and hetch hetchy may fill this year. in terms of management actions there's a couple of things to highlight we've talked about our where for 10 percent volunteer reductions and we're looking at the data hard to see if my additional action a warrant and on may 7th we asked our wholesale customers to look at this and we're working hard on outreach campaigns win and without san francisco. we have a website we've just put

up open web call my account and that's something individual yourselves in san francisco people who have water meters can go online and see their daily usage and compare. we think that's a helpful tool to educate people and is if that effects consumption and the cherry act duct is happening and we're helping people to get funding for that and looking at snow valley improvements to treat the lower cherry supply if we need it in the future if you have any questions, i'll be happy to answer them >> vice president commissioner president caen. >> so we can deliver our allocated amazes of money wrong

topic water which is fun n fibula in a sense to our wholesale customers we don't have to cut back. >> no, but we've asked them to reduce by 10 percent if the coming winter is dry if we don't reduce our use next summer is going to be worse yes, we have water and if this winter is good but we have it to make that supply last 3 years into the future. >> but this time is volunteer. >> yes. 10 percent but we're not seeing results so we may have to do more we'll examine the data. >> thank you.

thank you, mr. richie. so the next item which is not on the agenda by you wanted to give an update on the budget we've submitted to the board of supervisors. we had a hearing on the may 21st we presented the mayors budget and in the mayors budget the mayor actually reprogrammed the cac 19 point plus million dollars for the go solar program and the 15 million he reprogrammed it to allow us to fund the capital projects so we won't have to borrow as much money important capital projects we've been working with the

mayor's office on scenarios we found out that late april that was a scenario that he lapped on we informed the budget finance committee on i think on april 30th that was something that the mayor was going to move forward in his budget so may 21st when we presented our budget the board of supervisors was very clear that they wanted a conversation to be had around the cac for whatever the plan is for cac. so we've been working with the supervisors to pretty much articulate that whatever the mayor budget that he presented it is probably the best financial solution for hetch

hetchy because we've articulated that by setting money aside and collecting no interest while we're borrowing money at a high interest rate make sense but they felt the money reprogramming it has issues. so we are and will be working with the mayor's office and board to try to actually they've tabled our budget that is more significant than continuing our budget. so we're not working with the mayor's office the budget office and the controller and the board for the next steps. do you want to add anything to that? so that's an update on the budget my questions

>> my questions. >> thank you mr. kelly commissioner torres. >> so when do we anticipate the budget to be ready. >> i am in the process of trying to determine if the mayor can reintroduce a budget prior to june is it june 1st? and if that were to happen the board mr. will have an opportunity to re-evaluate and look at the budget you right now the budget is not in front of them so that's one of the disadvantages of tabling our budget if they continued our budget they can bring it up at the next supervisor meeting >> what was the reason for adapting our budget a was it the energy or - >> ii think the major concern

based on the supervisors i've talked to was the lack of communication around is reprogramming of the cca funds. and i'm just concerned with so many shuksz i've heard in the press all i have which i expect in this commissioner are not accurate it's clear how i voted i'm an adult and made a decision based on my life experience not by someone else telling me how to vote i find this is insulting >> one of the things we've made

clear and every opportunity that when we had our budget when we presented to the commission we had after two years we'll be in a situation for our reservoirs been zero so there's a lot of challenges person addressing the mountain tunnel the i a the discussions with p&g and the requirement for nert and the general funds rates so the first stop with the mayor's office is to get a willingness to increase the rate so coming out of the mayor's office we were at the a 15 percent reserve we can borrow

money through we're funding solar we're in a better situation we have challenges go ahead of us the last thing in our presentation we made to the commission and we move forward we funded the money for cc organization but if unsuccessful we'll have to liquidate all the programs because we will have run you occupy u out of money in year two. so again, we're in a better situation like the power enterprise than going into the mayor's office but the existence should be between the board and mayor >> i want to offer my support to whatever negotiations are necessary we're all adults and mature and seasoned and come to

the best interests of the internal revenue service taxpayers. >> thank you commissioner torres. >> commissioners. that prts >> any public comments on the general manager. francisco >> commissioners, i have two brief comments one of the commissioners today asked about the amount of consumption from the big companies that use a lot of hetch hetchy water at a very fair rate. and in my humble opinion they should be noticed they should reduce it by whatever percentage 5 or 10 right off the bat and

the same for swimming pools and so forth. they have to revisit the regular act and see what it mission was and that tactic was right now we're accommodating to some very large companies that are you're going huge amazes even if drinking water for a cheap rate that's my substantive opinion and number 2 on our website we need a chosen local way to address solar and community choice vocation so one of the commissioners said in the newspapers they said this and that and we can point out to the newspapers to the editorial board go to the website and see what we've done this didn't

exist and that's the mistake of our assistant general manager's or manager who thinks that they know who too much they may have a degree in philosophy but if you don't have management and other specialities then let's go to the website and chronologically starting from 1999 or 2001 that was what we did those other amaze preoccupied or whatever. this is how we're going to go back and forth so thank you very much >> thank you francisco any other public comment on item no. 7 report of the general manager.

thank you. >> well, i'm not sure i have a comment or not mr. president. >> take a shot. >> thank you very much if his report relates to the agencies ground water supply project i do have a comment 0 so if the president buildings it relates i'd like to say something. the injuring nut called the ground water supply project needs to be delayed until san franciscans know about it because the mix of ground water into san francisco's legendary high quality hetch hetchy water will reduce the quality off our water and very few people know about the decision. i consider myself a well-informed people but until i read an article in the

commenter. i think just cop a coalition a the neighborhood and the employees of the law library and public library and persons working on the yes on b campaign. one person heard of the project and that person thought that the project was going to be limited to drought conditions but you know it's not true this project is going forward regardless of the drought conditions in normal years i urge you before you go forward with this project and have it backfire on you, please provide appropriate notice to all san franciscans you're changing the composition and quality of t