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 their water after 80

years. you should and they deserve to get appropriate notification i'm going to do my best to inform them >> thank you again for that being here. any other public comments on the general manager's report >> my dr. >> good afternoon. >> i wasn't going to speak but when this young man spoke i'd like for you to make sure that all of the citizens of san francisco know but make sure that it is in the languages they understand such as know i've been coming here for the last 20 years talking about the latinos and the asians the filipinos, the asian pacific islanders and they don't understand english so, please put it in the

languages that we understand because we all you homeowners we all get water billions it could be in the languages they know we're not going to have good drinking water we shouldn't drink the water. >> thank you. any other comments seeing none. >> this is the bosco update. >> good afternoon commissioner courtney and commissioners. pleased to be here there's 3 things i want to address as part of my report two are related to items on your agenda and one on what the ygd was talking about the bay area relinquishment partnership i'm pleased to support our action this

represents a great sftv for the bay area water agencies to form a relationship in which to make projects go forward that are incredible to our reliability. for example, i have two ties that have served this system very well during the kissing up and making sure the liability you have other assess and the rim fire is one of the facilities we were looking to say if we need to go to alternative supplies this is the type of projects that we're looking to identify and propose and support and your action is excellent i'm pleased to support it. another item you had in your agenda item is the helpfully quarterly report. this is something that i'm pleased to see i think it needs

more work. it is taken 10 years to get the quarterly reports so what a format their incredibly helpful to your customers and the sub customers and to us and i'm hoping that reports only the hetch hetchy water enterprise will get to the same spot and serve us well, as you make investments and reinvestments into the infrastructure and my deserve is to also i'll tell mr. kelly to support your a's when you need the investment and part it having the input so our customers who pay two-thirds of the bill are supportive. last weeks san francisco

chronicle article about the energies program raised concerns with me and my office about the puc having the funds to cover the shares of costs to fix the mountain funnel. repairing the tunnel is a vital part of the san francisco system it should be completed without delaying other promotions within the puc. the dispute with the board of supervisors with you is not my business and but i want to be sure that nothing interiors this commissions ability to not repair the projects as soon as they need construction those are to deliver the water we rely on and my agrees in san jose and

santa clara counties that dependent upon that system for 2/3rd's of the water to meet the customers needs therefore i ask that your resolution contain a solution for the puc priority for water and power funds and nothing will stop this economy from the projects like the tunnel. with with that, i'll conclude my comments >> thank you commissioner moran. >> thank you with respect to the hetch hetchy capital report. i think it is important that that information be available on transparent one thing that mr. richie and i have had conversation it's important we highlight periodically efforts

to restore the yield of the system and specifically, we asked for a plan for how we could say yes to the 3 questions before depending upon how you look at the water supply agreement. that information will be forthcoming >> absolutely i've been looking forward to working with mr. ricky's staff and the products coming forward. >> would you care to develop a little bit more on your proposal that you made at the end of the year report. >> yes. so it's not clear to me how or if this commission when it takes an action on the clean power program cca you're going to have to take an action when

you do see one thing that's important implicit this is a choice you need to make within san francisco but the prioritization for a financially stable hetch hetchy water and power funds to benefit the system becomes clear the maintenance essentially of this fabulous water system that is not only the water reliability but the power to generate that's our priority and important for the commission to recognize that. >> would you go forward and reread the language. >> that it contain a provision it funding the rebuilding programs are the puc first priority for the water and power funds and nothing will prevent them from funding the projects. >> thank you very much for

being here. commissioners anything else? >> mr. president. >> commissioner moran. >> later in the agenda we have a city hetch hetchy rate resolution on the agenda and i'd like to ask the city attorney to consider adding a resolution a resolve clause to that that would indicate that municipal rates and other resources of hetch hetchy resources be sufficient to fund hetch hetchy capital program. i think that's that doesn't have my particular effect in law but sends a message to the board as we adapt those rates our intent is that's part of the revenue package and a funding package that's sufficient to do the job >> i'm sure we'll touch on it

when we get f to that item but for my own clarification does it have to be resolved or can it be a whereas and is there direct linkage to this report that we just heard. >> i'll leave the drafting of that to the city attorney the direct linkage we have proposed rates and discuss rates with the mayor and board of supervisors that are part of an overall funding package that overall package is put into something and i want to make sure that issue is revolved it our intent is clear. that the package as a whole provides the funds sufficient to fund the capital program as was said >> since we're still on this item on the agenda can i have

the bosco representative come up to the room and we'll move towards the appropriate item would you be kind enough to make comments on commissioner barnes proposal. >> i think that can go a long way in providing the steps our planning on taxing at this point. to me that remains to be seen and hurry actions are taken and you have success but it certainly clarifies what our intent is which is the important piece of it so it's quite clear and there's a change if it's the indication then that's the other piece of. i believe it goes a long way >> we'll go ahead and have this confusions at the line item.

>> thank you very much. >> commissioners anything else our on the bosco report a my public comment seeing none, public comment is closed. >> item 9 is the consent calendar 9 a 0 through e may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items a member of the commission, the public, or staff so requests removed from the consent calendar and considered as a separate item at this or a future hearing. >> commissioners. >> item 9 e. >> commissioner moran item 9 e will remove item 9 e commissioner with respect to items 9 a through d i'll entertain a motion. >> i'll second. >> second. >> it's been seconded my future

conversation i'll call for public comment on items 9 a, b, c, and d any public comment on that item? seeing none, public comment is closed i'll call for a vote all in favor, say i. >> and opposed the i's have it. next item madam secretary is e >> correct. >> thank you and with respect to item e i'll ask mr. richie to make a brief presentation i think that's the and a half of the agreement we're talking about is significant enough i didn't want to to slide through an content the time part is moving along so i ask a brief presentation. >> thank you, mr. ricky. >> i have one slide in the commissions package is a map

showing the collective bay area water agencies part of the reliability of the associations that's a simple set of principles that includes the san francisco at&t's and san jose and east bay and sclefkly we serve about half the bay area and have been referred to as a set of balancing confiscates we've not gotten along but turned a big corner we can help each other out in situations we have two ties so those principles will lay out is how we'll talk collectively and work together to improve our collective water times in times of drought and in routine times there are power in that organization coming together so the things in red s are various ties between us and additional

treatment facilities and for the decelebration project we see a lot of opportunity that includes bosco as a partner and that's a good thing. >> i would like to say that the ideas on the map is not earthshaking they've been around awhile but most remarkable within the water institutional barriers prevent us from doing things this is a historic barrier being lowered and agencies willing to talk to each other so it's a very significant step forward. thank you. >> thank you, mr. richie. commissioner moran are you moving the item >> so commissioner moran moved the item a second.

>> second. >> and it's been seconded. >> i'll go ahead and call for public comment on the item. the seendz will i'll call for a vote all in favor, say i. opposed. the i's have it madam secretary next >> item 10 improvement for the contract for the contract w w-483 r r with the kj woods construction in the amount of 12 million plus and the increased with the contestants with the calendar dates and approving the allocated balances and approve the cost of 23 million and authorize the general manager to approve the future resolution and for the appropriation for funds for the project. >> thank you.

>> i'll move the item. >> it's been moved forward and seconded. >> i'll call for public comment my any public comment on that item? seeing none, public comment is closed. all call for a vote all in favor i the i's have it madam secretary next >> to agreement for the urs corporation and ask the general manager to execute amendment number 4 increasing it up i to 4 million plus an extension up to 2 years and 9 months pursuant to the charter connection 118. >> commissioner moran moves the item is there a second.

>> i second it i have a question. >> my conversation. >> yes commissioner torres. >> the principle company of this is u s r corporation. >> correct u s. >> my subcontractors. >> there's a number of substances i can't name them all but there's 15 sub consultants. >> i'd like to see the list. >> the list it's there. let's - >> the subs we have the list and let's move to so commissioner moran commissioner torres has an opportunity let's move it. >> thank you commissioner president caen always on the spot. >> commissioner torres shall i

>> any public comment on that item? seeing none, public comment is closed. i'll call for a vote all in favor, say i. opposed? the i's have it madam secretary next item >> item 12 authorize the general manager to enter into separate agreements for authorized of facilities under proposition e for the agreements that expire agreements in 5 hundred million not not to exceed for $2 million plus up to 5 years. >> good afternoon. i'm with puc i'm happy to walk through the slices. is item before you today replies the existing bank agreement with the water are paper program at a cost about half of the current agreements. the reason for that is the bank

environment has improved since we've put the current agreements in place. there's no new authorization for the paper program so you're looking at new agreements to replace the are expiring once they have 3 to 5 year armies through wissop and we'll could be to the commission and ask for a reduction for the paper program in 3 to 5 years. we have one hundred and 86 thousands outstanding on our water program i'm happy to walk through the slices >> what's our pleasure commissioners. >> okay. so i'm going to call for a motion for those of who you who have received it there's

an intentivelyly line item. you have a copy it reads like this in the second to last resolved paragraph of the resolution please help me out and execute my effective of the resolution and b's it further be it resolved i amended this to include the unintentionally removed item it's been moved and seconded my future discussion on the amendment only that believe seeing none, public comment is closed. on the amendment i'll call for a vote all in favor, say i. opposed? the i's have it now on the resolution as amended. is there any public comment on

that item? seeing none, public comment is closed have we called for a motion let's call for a motion at the amended is there a motion? >> moved. >> second. moved and seconded my future conversation all in favor, say i. the motion carries >> mrtd next item. >> 1213 is public hearing to consider and possibly adapt a proposed schedule of fees for hetch hetchy electric facilities to the municipal to the city and county of san francisco and other public or golf o governmental agencies paying for the rates or fees of less than the cost of service to be admitted to water reading or an july 1st, 2014. >> good afternoon. charles deputy cfo the next item is to - to revise the proposal charged

to agencies for the next 2 years. as a general manager mentioned the mayor's office proposed an adjustment to our municipal fund rate recently and as i recall fwoorgz this commission passed a general fund municipal department fund we're in the second year of that and the proposal before you is to adjust the second for the next 2 years as part of the budget process. the agreement before you today is to increase those general fund rates one penny every year for the next 2 years 0 so it's a half cent increase for the next two years. again, i'm happy to walk through the slides in particular in this

if you want to see the impact slides of in our package today shows the impact over the next 2 years. >> will you please put up - >> it will show the counter years in the 2014-2015 columns and for 2015- 2016 and it is a one penny increases for the next 2 years. the rates for most general fund departments have had .5 percent kilowatt one penny increase and there are other depends that are charging other rates that were negotiated over the past few years. this slide it's hard to see on the overheads i can appreciate but the 3.4 millions in the cycle is the impact to the general fund and overall impact

for the power rates for next year is a little bit over 4 million if you include the gas >> if you have any questions, i'll be happy to answer them. >> commissioners. i'd like to request it general manager kelly make a comment on this item give us a little bit of background, please >> so as charles identified we was in a position to go back to the mayor's office to ask for increasing in the general fund rate because of the capital needs. i want to point out that, you know, within the power enterprise we do have capital projects our joined and projects

only power so i want to have a discussion as far as our rates and stuff by you recognize we operate the system first so we really need to look at that. the other thing i want to point out in the resolution we do make point to the fact that on the bottom of the second package where we have the whereas the commission hereby finds the adaptation of the resolution will find an increase inform the electric rates and charge one e.r. more the following purposes and the last one to obtain funding for the capital projects necessary to maintain the services within the existing services. although it's in there we could

add on page 4. on the resolve it is what state this commission hereby determines that proposed increasing to the electric rates and charges are required for those receiving the electrical services at a fixed rate established by the puc to meet the revenue requirements including revenue, recover to funds that to fund the hetch hetchy capital improvement program so we can add in the resolve paragraph so hopeful that will address the commissioners concerns.

commissioner moran >> yes. thank you commissioner president caen. >> i do there's at least one other place it talks about the purpose of the rates the only piece missing is these rates basically were adapted by commission within the budget as part of the revenue package. which taken as a whole was sufficient to meet our operating and capital needs that's the one thanking thing that's not included if we could quite frankly that's most appropriate but something we'll realize those rates along with, you know, others revenue provisions a budget adapted by commission whatever day we did that the

would deem sufficient to meet our operating capital needs. and so where do you think it's more efficient to put it or do you want us to put it in or add what we've stated and add an additional sentence or in the one of the whereas on page 2? >> city attorney's office. is the point you want to emphasize is that the budget you've submitted and approved was balanced based on the rate increasing and you want that

point to be understood when the - >> more specifically that they were a lot of revenue provisions within the budget and taken as a whole was sufficient to do the job job and my implementation if part of the balanced program is changed then that presented a problem it has to be rebalanced in some way. and obviously that doesn't need to be in there only the implementation >> marine city attorney's office there's a whereas clause from the third top of package 2 whereas the proposed revisions and the rates and fees are more