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. >> aye. >> the motion carries next item, please. >> item 11,authorize the general manager to execute on behalf of the city and county of san francisco, a memorandum of agreement with san francisco unified school district for an amount not to exceed $140,000, and with a duration of two years, which will authorize the use of sfpuc funding to support science, technology, engineering and math educational programming. >> commissioners, i have a question, juliet, we got a correspondence from the young man, senator torres, you may know him, commissioner matt haney and i don't know that we read it in the record and it was not long ago and it was for the water fountains for the kids at the schools, did we balance this and that, or because i am curious about how this comes but i didn't see the action on that or did i miss that day? >> so, i think that what you are referring to is the tap

stations. >> yes. >> and so this is different from that, and so this is the background for this item is it just authorized the general manager to sign the memo of agreement with the school district, specifically, around professional development, of teachers, and tied to sfpuc equal literacy goals in the different enterprises and so that is what this is for and it replaces, mla that we have, for the similar types of work with the school district that is expiring. the school board member is talking about these during tap station and so through the budget process, as part of the ad back process that the board of supervisors identifies resources, and then, the types of priorities that they think is important. and they are working on it to identify the add back process to support more going into the

schools. and so that, there are resources we have not come back to you with that. but just got finalized through the budget process in the last couple of weeks. >> that is what i was hoping to hear, could you give us that information, under i guess,... and in the agenda just so we have that information because i would like to be able to report back. >> sure. >> i will put that in a written update for you. >> commissioners we do not have a motion, on item 11 yet. >> i will move it. >> it has been moved and seconded. is there any further discussion, is there any public comment on item 11? >> good afternoon. >> conference call on hold. >> okay. >> good afternoon, commissioners, and thank you so much for having me, my name is hydra men des and i am a member of the board of education for san francisco unified school district and i just wanted to

run up to say thank you, thank you, so much for this opportunity. over the last several years, the school district has been really thinking about stem and what it is that we need to do to insure that our kids are coming into the 22nd century and we have actually gone as far as hiring a stem director to make sure that our stem curriculum is intact and that we are delivering the solid core curriculum as the changes to education, are coming forward, with the common core. and i cannot tell you what an opportunity it is to have a puer c, be part of building that infrastructure for cool district, this is such an experience that our kids will have to work more closely with the puc and to be part of the family in a very different way. and so i just wanted to extend my heartfelt thanks for the work that you have been doing and for opening up these great opportunities for our kids. and in addition to the 140,000,

you also invest in our assisting the building director at the school district and that too, has been a way for us to save energy and, to think about what our school district could be contributing to in terms of making our environment a better place and the puc has been an incredible lead on that. and in addition to that the mayor has been instrumental in bringing forward some additional dollars for our middle school leadership initiative and which is putting the tea part in stem. and so our technology has been upgraded and we have the infrastructure in place where the wifi is in all of the elementary schools and we have been delivering the devices to all of the schools and so part of what we want to be able to share with our kids is the opportunity early on is to bring forward the stem education and again this is yet, another step in the right direction and so, on behalf of the school district, and on behalf of the mayor's office we just want to thank you for this incredible partnership.

and we look forward to working closely with you in the coming years. >> thank you for your service. >> thank you. >> i think that commissioner torres was thinking what i was thinking that during one of the most challenging times that you have been confronted of, you stood strong. and you were kind of a becan over there and sometimes i don't think that people recognize all of the great work that you do. i know that we appreciate it and i don't even have children, because we have a lot of employees and a lot of people that rely on you and you take a lot of heat and you don't get a lot of credit for the great work that you do, i love seeing you. >> thank you, i cannot tell you how much i appreciate it but the random acts of kindness and support for those of us are that the trenches it and the cool district has become by

leaps and bonds. and there is a time when i can step back and feel like this is the twhaork we are going to be doing naturally and that it is not going to be forced. and so the relationships like this, helps to get constitutionalize the wo*rk that we need to do in order to get the children we had educated and help all of them, you know, grow and raise their family and so i look forward to the relationship and thank you for the kind words. >> it has been moved and it has been seconded is there any further public comment? seeing none, public comment is now closed. i will call for a vote. all of those in favor, signify by saying aye. >> aye. >> and the motion carries, madam secretary, the next sit item please? >> would you like me to read the closed session items before i call public comment? >> please do.

existing claim joan and peter cuddihy. 15existing litigation: city and county of san francisco v. pacific gas & electric company 16. existing litigation: city and county of san francisco v. pacific gas & electric company 17.existing litigation: pacific gas & electric company, v. city and county of san francisco. 18 will not be heard. >> i will get a motion for the attorney client privilege. >> please si >> okay, we are back from the closed session. and announcement following closed session that the commission has reached an agreement to