maurine and a host of other people that are involved in this, and i want to thank the commission, and because we take our kind of tone from what you guys set and the consistent tone of we expect you to do the public engagement and out reach and we expect you to engage with the people before coming to us with whatever your projector program is. we take that to heart and we want to be sure that whatever we propose or presented to you by the project teams has that incourted. to the best of our ability. and we are sometimes our own worst critic. i would say, when it comes to things. every time that i am able to go out and talk about the work that we do, at the puc, i was just in denver the other week talking about all of our out reach over the past ten years when you add up everything from the water improvement program and everything in the sewer system improvement program and where we are with the rates now to where we were ten years ago. and there is a trend during this and it is a positive trend and other people, look up to us

as far as being a leader there and our goal is to remain a leader. so i want to thank you for the opportunity to speak today. >> thank you very much. commissioners? >> i do feel that this effort is really important. when i attend you know, the national conferences, one of the things that they recognize is our out reach, because i think that the importance of making our invisible infrastructure visible, because when you think about water and waste water you never see it, you turn it on and you flush it and it goes away and so these efforts really give us opportunities to educate everyone, about our system, and the aging infrastructure and the investments that we need to invest in our infrastructure and so it is not only on a national level, state level, but, this is how you reach the

actual consumers, and users of our system. and i just think that we can't do more of this in any opportunity to engage the different communities and different customers where we are looking to try to maximize that engagement. >> i think that... >> first of all i think that tyrone and the mv and we should all be very, very proud of how the staff engages all of these technologies. you know, i know, i know that they are doing an incredible job and we get a lot of that in the feedback and i actually think that it is well worth our while to set aside sufficient time, routinely at these meetings to just continue like i saw a card, that was held up a moment ago and i immediately thought, the department of environment, was there collaborativation on that? and i just think that you guys are just doing incredible work and you make us all really

proud. commissioners >> is that it for this item? >> madam secretary, item seven? >> 8. >> 8. ... >> okay. >> and so we have already moved through on general manager, we moved this, >> we have 8 b. >> i am sorry, mr. president. would you like to hold the public comment on item 7? >> yes, i would like to call public comment on item 7, i don't have any speaker cards. >> is this the item? >> yes. >> let me say a few things. there was a time when the new commissioners made a decision with the intent with the

proposition favored both addressing the clean water and the base water, and you all made a decision just to go ahead with the waste water and with the clean water, and that the later date, address the waste water which now i will call the sewer system improvement project. as part of these deliberations, the tax and others were participating,. and so what happens to it and whether sfpuc got this and they put, seven constituents on a fafk force. they do the deliberation and they decided that 5 percent of your 7 billion, which is now 7 billion, and on a bail on it is 50 million and so if it is times 6, it is 300 million, if it is times 7, 350 million, it is never clear what it is and then you all create, some sort of a system which i will call

community benefits. and now this is the point. always. ye may going and i am using media techniques so that you all can tell the whole world about statistics or flowery pictures where when you look at the pictures they show diversity, you are trying to show that. what kind of a legacy are you all going to leave? >> now, we need, if it is community benefit and if we have that amount of money, we need to leave a legacy. and we need to address laser beam focused on those communities that have suffered. and so, why, you know, when you go to other states or other nations, and all, and they may think, whatever they want to

think, about ours, when we bring them in close proximity about, the sewer treatment plant and that is going to be hickry's reality. and so every single day, to day we fix the digesters and still we got..., and that is what, we should be addressing. when the people are remote control they are following from the nuisances. and there are other things that we need to address and then when it comes to the other fluff, we can address it in whatever way we want to. you all can address it in whatever way that you want to but they should be standards and evaluated and so i will be writing an article on this and fair, and thank you very much. >> thanks for your comments. and along those lines, i think one of the things that we have seen in the news is that the mcclarin location on the south

east sector we just authorized a transaction a week or two ago for the reservoir, the old ves invoicers there on bay treat and i figured that it was 9.9 million tlars and i think that one of the things that we are going to begin discussing is that there is a need to leave a legacy and to make sure that we don't lose the opportunities, down in the mcclarin park location in the south east is under utilized and under maintains and it be under%backer under dms dm are perfectly posed to get the opportunities for the kids to get introduced and agronomy tree work, and we had a long conversation about the forest, but that does not mean that we cannot engage those activity and it does not mean that everybody out there who cares about the resource that we have

to weigh in on these things and so i will encourage you to look at the golf course out there and take a long hard look at that and take a look at the other golf courses in the city of county and san francisco and ask yourself, why they look so much different? and i think that we have and we are responsible for making sure that we shed some light on that and then we ad least have the deliberate discussions. and thanks for being here. >> is there any other public comment on this item? >> seeing none, closed. >> item 8 b. >> continuation, of item 8. general manager kelley? >> so, the next item is the water supply out look and as part of that steve ritchie will talk about on july 15, the state water resource control board adopted new emergency regulation to prevent excess and unnecessary waterous and,

promote water conservations, our staff is already developing a strategy to implement these regulations and have them working closely with our city attorneys and the mayor's office to strike the right balance for san francisco. and so that is one of the challenges that steve will talk about as well as he will give a report on our water supply out look. >> assistant general manager to water. our water supplies conditions are 62 percent for the maximum with the total reservoir, 476,000 acre feet available for the supply and emphasized more than once, the whole water bank set up with the turlock is working for us this year. and also, on top of that the demand response by all of the customers has been good for the last eight weeks and i will

have a slide on that as well. and here is the standard slide on the reservoir storage levels and you can see that hetch, hetchy is 93 percent and the water bank is 35 percent full if you are keeping track of the numbers, that means that it is starting to come down slowly and the water bank is starting to come up as the readings from chili to refill the water banks and so that it can do the job fekt year that it has done for us this year. take a look and the precipitation slides and well the things keep happening on sunday, there was a thunderstorm in the sierra and so the water shed we got, almost a inch in a half of precipitation. and both of those took place in about an hour and a half. and for these were very severe thunderstorm s, in the room fire area near cherry, there was in effective of that and there was work that we had been doing in advance, paid off for

us and so the system is working out fairly well. and it is an interesting year all the way around. >> that is the 207. >> we are at the level of the year, 2007. that is that blue line there, and that was, what was, a relatively dry year, but we have caught up with that now, so that you know, the trail up not to be the worst year on record but it is, actually you know, who knows we could catch up to the green line if something strange happens out there. no snowpack. total delivery and this is another good chart and you see following the green line, that up through the end of may, we were tracking about with last year's consumption, and ever since the end of may coming forward to now, about the last eight weeks, the demand has dropped significantly and stayed down, well below, the

2013, levels and below that line, which is the goal, and and in san francisco, and responding very well, and this is another chart showing the cumulative savings and the goal of reaching ten percent and that the green curves are starting to get steeper and steeper as the savings have occurred at a rapid rate over the last few weeks, and again, the savings fill up and we need to rich, 5.7 billion saved by labor day and we should achieve that if we stay at the levels that we are at now. >> some of the actions and requested the ten percent water use reduction and as you are well aware, we have rolled out the campaign here in san francisco and we are also working with the customers on out reach in the wholesale service area as well. and so that we could, work with

them on using some of our material, that can send the same to all of the customers that there is as well. and i talked last time about our emergency projects to bring the military aqua duct back into service and have the ability to filter the supplies to add to the system. and it was hard to mention, and a big action took place last week with the state water resources control board adopting the emergency regulations and held a workshop on june 17th and adopted the regulations on july 15th last week and the regulations include four water waste prohibitions and the most important one is making sure that watering outdoor landscapes and water, and does not run off or cause any additional over spray and things of that nature. and that is something that we actually prohibit, via our water efficient irrigation in the city and the others are

that you have to, know, have the nozzle and the hose on washing the car and the sidewalks and the water is pro-hib it ited and there is an exception for that we actually requested to be in there because frankly it seems like ours and you have to deal with the human and animal waste on the streets and so you want to make sure that it was clear that we will use the recycled water when it is available and if not, we will use the portable water from the department of public works to help to clean the areas that truly in need of cleaning and that water and fountains and water features are part of the recirculation system and so that is%backer those are the basics and the emergency regulation and those regulations should go into effect august first after they are approved by the office of administrative law and they have a life of 270 days or 9 months and then by have to be

removed after that. the state water board adopt a provision that these were enforcable by a penalty of up to 500 dollars per violation, and so that is getting a lot of coverage in the press now and talking about water cops and things like that and we actually have in the city ordinance, there is that section about water efficient irrigation that i mentioned previously, and there is a companion in the city ordinance that allows the agency to actually issue the citations for that, and we have not used that provision so far and it is not one that we will go into and we are much more interested in educating people and make sure that you talk to them and pds what they do and this is the last resort measure for us to take into effect. the other part of the regulations is that in the

water supplies, the supplies will i am pri mriment all of the water in the plan, that imposes mandatory restrictions on the outdoor restriction and with the turf and potable water. and what that says is that we and the other water agencies that have the water shortage plans and we have those as part of the urban water management plan need to make sure that we are in closing, that level of restriction and so we will be bringing a recommendation forward at the august 12th meeting for compliance with this requirement and the water shortage plan is written, it is actually very general, to give this commission and other future commissions a lot of latitude in deciding what is the relevant thing to do. and so we will be focusing on mandatory restrictions on the outdoor irrigation on that item that we bring forward . we are working closely with nicole and the staff on the water reducing by all customers and doing a lot of work

analyzing the data by the individual customers outside of san francisco and ve aassisted the county water district to allow for the sale of banked water from the tropic water district to go to other irrigation districts in the valley, and the money that normally would go to the water district, to pay for that water actually they will be using to pay us as part of the water bills and no one will actually come from the irrigation district to us and if and when those transfers take place and we are doing a lot of work with the office of emergency services and the similar customer to provide the drought and relief to all of the xhupt communities and these are people that are not hooked up to any of the big guys and they are the ones who are suffering the most because they usually survive on the local precipitation and lastly we are working on the arrangements for the water district, to arrange for treated water delivery to the laboratory if we have to

use the lower cherry aqua duct. and by contract, we need to deliver portable water to livermore and we will have to built a plant for them and we are trying to work out an arrangement that we will with td coal water district and they will go and pick up the state water project water and pick that water up and then zone seven if we use the cherry, then we will deliver the water to livermore and it is just an example of the planning systems that are fairly complicated but we can work together to solve people's real problems, and with that i am happy to answer any questions. >> commissioners? >> thank you, mr. ritchie. >> so that concludes my report. >> i thought that we were going

to hear from mr. riston. >> that is right, okay. that he asked, for me to give you an update on the budget. >> yes. >> and thank you very much, general manager, todd, assistant general manager cfo and we have the line item stay but as a courtesy we want to notify you that we have the fiscal year end under way and the budget close is going just as schedule and we worked with the mayor's office to do an administrative item that is being introduced to the board today regarding the rearrangement of some of the salary dollars for over time and we are achieving more than that in savings and 70 million dollars of the achieved savings but we needed to move around, $300,000 for the over time and the net impact is zero dollars. >> thank you. >> thank you for all of your great work.

>> that concludes my report. >> thank you, general manager kelley. >> are there any public comments on the general manager's report? >> seeing none, public comment is now closed. >> madam secretary? >> item 9, bawsca report? >> good afternoon. good afternoon, president, and commissioners thank you for having me here today. and if i could have the slide pulled up. >> feel free to use both of them whoever you want. >> go back and forth. >> i am not as tall as steve and so i can't quite do it. >> i have planned to walk you through an update on a project that i think will find of interest, some updated water demand projections that i just presented to our board this last week but before i do that, i did also want to give you an update on our pie late water

transfer and a search for move forward with examining that and as i mentioned to you in the past we have had been having the discussions with the city, and the east bay mud and with your staff to look at moving water through your system, using the existing time, and hayward and at this time, we are schedule approximating the work for the of board to consider the action on that in the winter and so it will be january, of 2015, at this time, and that is kind of recognizing the schedule that is going on and what we anticipate might be occurring in the fall as well and so that will be moved into the winter. and in addition, just to give you the latest news, we have entered into an agreement with the santa clara water district as well to examine a similar kind of arrangement and a possible transfer arrangement to look at those. and with our system and i am pleased to report that we are moving forward on that at this time. so we will give your staff informed. but you know these projects

trying to identify when *f where there are opportunities to bring in the water supply to meet the needs of your customers who you don't want to meet at this time, that is where the pro-projects are going. demands projection project, this was initiated spring of 2013 as part of our long term planning work. and we recognized that our demand projections were old, and to be honest we are requesting how effective and accurate they were for the future picture. and also updating the demand projections and conservation projection to 2040 and now the next step this just gives the total the bapd and the next step is the crilt cal component and how do they plan to meet that have demand and many of your wholesale customers super supplies and bought the water and have ground water and recycled water. and so that is a critical piece

of the component that i can competitive back in a month and tell you how much you are purchasing from you in the future and so we will be using those ruments and i assume that your staff will be using those results as well. >> so what is the study show us? to do the demand projections you start with what is the projected employment, and what is the projected population and the service area and so this graph right now shows the historic population and employee and in your wholesale services and 75 million people. the population is projected to grow to 2.2 million people in 2040, that represented to 27 percent population increase and a 31 percent employment increase based on the department of finance members for the region.

>> so, then you take that and we determine what that means for water demands and, so this graph shows on the left, in the solid line, this historical total water demand, of the wholesale customers starts back in 1986. so before the last multiple year drought, and you see the dips in the valleys from the droughts in the different recessions. and the projected and the dotted line is the initial projection, that is the projection before any conservation and so it is kind of your base scenario. and we layer on top of that, how many savings do you get, from existing law in like the state wide plumbing codes that require the fixtures and the agencies have sufficient landscaping aoe sishcies and in door ordinances and those will all generate the specialists that will occur without anyone doing anything more that is an important component and we call it passive conservation. and then we will lay on the

next step which is active conservation. what do we think and each of the agencies went through this piece by piece, what programs and what savings would they implement and the get and the customers between now and 2040 and that gets us to a total demand of 268 mgd in 2040. that adds up to 36 mgd in 2040. so the reason that we did this was i had real questions about the validity at that time, of our last numbers from 2008. and the question really was because we had seen the significant changes in the service area, we had a long recession and with the changes in the water use patterns and we had ai wholesale price of water that was sky rocketing through the roof as it should be, but what kind of an effect was it having on demand and

water use? and so this shows that the 2008 study of the demands by the dotted line and the green line at the bottom is the new demands after the savings and they are trending about 20 percent lower throughout the period. and so that is me was a significant take away of this and certainly, solidifies the importance of doing this effort. >> to kind of show what this means with water and population and it seems to be a lot of focus these days on per capita and what is going on with water use, and so again on your left is your average number the solid blue line is the actual demand and the red dotted line is population and to the right you see the projected top you lacing that lighter ras perry color and the blue, green, line as the projected demand. and this is 27 percent copulation increase between now

and 2040. with 19 percent demand increase, and again a reminder that was a 31 employment increase over that same period so there a quite a bit going on in the employment that is involved in these demand projects. >> i got the box because it did highlight something that i think that certainly mr. ritchie and i have talked about what to do with the draut and the customer base and a customer. and there has been a 60 percent increase in population, and so that is from 2040 and through that whole period, 8 percent increase in demand. and which means that a 32 percent decrease in per capita water use. so just highlights the fact that in 2040, it is not going to be that easy to achieve the test and reductions that we are talking about because we are going to be starving from a demand that is much harder than it is today.

>> so, a couple of take aways. the demand trends are trending significantly. and again, these are the total water demands. in the service area for these 268 mgd, and 46 mgd as additional conservation savings. so moving forward, the report will be out this month, and we have got the number of agencies started on the analysis of how do you plan to meet both demands, that is certainly a critical component and we will be sharing that with my boys and my policy body and with you as soon as it is available f, and we will be using that for our own planning purposes and also the conservation analysis is something ha we will be using for planning for our own programs as well. so it becomes a critical come known nent for how we. and that concludes my comments and i will answer any questions that you might have.

>> commissioner morasn,? >> thank you. the total demand numbers that you have there are the total demand from, or on the regional system and other sources that you are are members have available to them. >> you are talking 268 total and our supply to you was 184. >> correct. >> and the gap is met by other resources. >> exactly. >> so one of the issues that we have going forward as to how it that balance? ed and what we will play in balancing that as opposed to what you think is the helpful programs that would balance it yourself? >> exactly. that is the reason for our strategy in what you are looking at what role that you want to play. and through our strategy effort we are looking at that, and what is that number and will the agencies want you to play? >> great, thank you.

>> are there any public comments on the bawsca report? >> seeing none, public comment is closed >> item ten is the consent calendar. and item ten a, through, constitute a consent calendar, are considered to be routine by the san francisco public utilities commission, and will be acted upon by a single vote of the commission. there will be no separate discussion of these items unless a member of the commission or the public so requests, in which event the matter will be removed from the calendar and considered as a separate item. ethere are any requests from my colleagues or any member of public to remove an item. seeing none, i will entertain a motion. >> so moved. >> seconded. >> and it has been seconded. any public comment on items, 10, a, b, c, d, seeing none, public comment is closed. all of those in favor, signify by saying aye.