gut feeling is always a million percent right. >>president vince courtney: thank you, we'll have a discussion on that item. is there anymore public comment on item no. 12 as amended. seeing none, public comment is closed. all in favor say, "aye". >> aye. >> opposed the highest -- ayes have it. madam clerk, next item. item 13: approve an increase in the construction contract cost contingency for contract no. wd-2685, with cal state contractors inc., for reservoir and tanks improvement 20133, in the amount of $682,000; and authorize the general manager to approve future modifications to the contract for a total revised contract amount up to $9,997,900. the requested increase is due to new water conservation work requested for twin peaks reservoir. the work includes preparing and installing new water barriers along all submerged concrete slab joints to inhibit water leakage from the reservoir to its underdrains. there will be no change in contract duration due to this joint sealing work1234 >> thank you, jasmine. commissioners? >> so move. >> second. >> it's been moved and second. is there any public comment on item no. 13.

seeing none, public comment is closed. all in favor say, "aye". >> aye. >> the ayes have it. next item 14. city clerk: item 14: 14. approve modification no. 2 to the agreement between the united states forest service and the city and county of san francisco regarding acquisition of 25.2 acres of land at camp mather, tuolumne county; and authorize the general manager to execute an amendment extending the duration of the agreement up to one year, for a total duration of three-years and six months. the time extension reflects the re-evaluation of the original timber appraisal as a result of the rim fire.1 year, for a total duration of three-years and six months. the time extension reflects the re-evaluation of the original timber appraisal as a result of the rim fire.1234 >>president vince courtney: 6 months. the time extension reflects the re-evaluation of the original timber appraisal as a result of the rim fire.1234 >>president vince courtney: thank you, jasmine, commissioners. >> so moved. >> second. >> public comment? >> all in favor say, "aye". >> aye. >> opposed? the ayes have it. >>commissioner francesca vietor: i have a question on this because i have been tracking this but i did lose the thread a little bit. i want to move the item because i think a land acquisition portion, but

i would love briefly for you to talk about what's happening with the timber appraisal. >> it's on the 25 acres we are trying to acquire at camp maetsdz mather. we are doing another praisal because the timber is no longer there which would lower the price, one would think so. >> eventually it will come back to you as a property. it's kind af swap, a purchase another swapping with the forest service and will come back for commission action. it is an action that you will have to take in the future. >> the value of the timber part of the sale price will include the chamber? >> right, because the belongs to the u.s. forest service. >> okay, great, thank you. >>president vince courtney: if there

is no objection we'll move on to item no. 15. madam secretary. city clerk: item 15: 15. authorize the general manager to increase the wastewater enterprise commercial paper notes program from $300,000,000 to $500,000,000; direct the general manager gmm to request approval from the board of supervisors for such increase and, further, direct the gm to enter into agreements to provide bank credit facilities authorized under 2002 proposition e with barclays bank plc and state street bank and trust company, the lowest cost, responsive and responsible bidders. the agreements provide an additional $200,000,000 in available credit with annual costs not-to-exceed $750,000 and for a total contract duration, including possible extensions, not to exceed five years. the gm is further authorized to select the next lowest-cost, responsive and responsible bidder should either of the selected banks be unable to meet city contracting requirements or if negotiations are otherwise 5 years. the gm is further authorized to select the next lowest-cost, responsive and responsible bidder should either of the selected banks be unable to meet city contracting requirements or if negotiations are otherwise not successful.1234 >> thank you, commissioners? >> cfo is here to answer questions. >> thank you we have a few slides to share or i can answer questions. sorry it got to the bank -- back of your package. >>president vince courtney: we can see the slides or i will entertain a motion. >> i will move it. i thought the item was well drafted and put it to savings

of that kind of read the instrument. >> i will move it. >> it's been moved and seconded. any further discussion. any public comment on this item? >> yes. thank you yolanda. >> yes, just real quick, this is a bank that is going to make money off the community and they have federal regulations off the investment. this is an opportunity to tie in the investment to this community. when they are making their community investment to their credit they can get money from this up grade to do the financing. it's not going to hurt them. they are still getting the money and that is to who? so you can redirect it to the non-profit communities and this is one of the many things that could be put into place. >>president vince courtney: thank you yolanda, the general manager will have on going and those comments are on point. any further public comment? seeing none, public comment is closed. all in favor say, "aye".

>> aye. >> opposed? the item carries. next item. item 16: 16. public hearing, discussion, and possible action to adopt excess water use charges and regulations for administering excess use charges and the retail water shortage allocation plan requirements applicable to use of potable water on ornamental landscaping or turf by the approximately 1,600 retail potable water irrigation accounts.1234 >> mr. ritchie. this places irrigation and to done water use charges and implement regulations for the 1600 potable water regulations that we have. the excess use charges will be applied to water use over the 10 percent mandatory reduction in use. this is all consistent with and responsive to the regulation adopted by the state water board in july. of the 1600 accounts are municipal accounts largely the parks and recreation department and dpw and parks, mission bay and san

francisco state and commercial properties. collectively they use about 3 1/2 percent of the total retail water supply in san francisco. we do have one proposed correction to the resolution as noted on the one page should it in front of you. it's to delete a phrase in that first resovereignty. the -- resolve of that phrase we made accounts in the fiscal year when they exceeded the 90 percent reduction. i will be happy to answer any questions on the item. >>president vince courtney: do my colleagues, are you comfortable with the resolution, the amended version? do you have it? then i will go ahead and call -- >> vice-president? >> i would like you to address the section called exceptions. how is that going to work?

>> exceptions would have to be approved by application to the water enterprise. we would basically look at the basis for the exception. there are various alternatives, vice bases here that are allowable and we would judge those on a case by case bases. we would go out and see the property in question and recognize that it is or is not compliant with the acception here such as something that is necessary for sanitation or safety alternative restrictions that was achieved at the same level of demand reduction some about the property or business and edible plantings that might be there and might be a mixture of things and you have to deal with that fact because it has to do with ornamental issues. frankly i'm pretty confident people will be able to achieve the 10 percent. we've already asked for it voluntarily and this makes it manned

datory and backs it up. it's very doable, i believe. >> well, anything involved with the city, i think is doable. when i read through these exceptions, i thought, well, some hour how or other probably most accounts could somehow take one of these exception and work with it. maybe >> maybe i'm making too much of it.

>> it will be the result of that audit which is another qualification to get the exception. they might get the exception for purposes of achieving the 10 percent. >>president vince courtney: there is reference for item 15 before us, we are actually on item no. 16. if that's not right i will stand corrected. this is conversation item no. 16. any other questions for mr. ritchie? yes, commissioner vietor? >>commissioner francesca vietor: will there be more outreach on these, will these users get special mailing? >> yes, they will get special mailing that explains this to them. since these are rates they have to be sent to the board of supervisors for a month. this will go into effect october 1st. we'll be informing everyone, all the account holders with a letter

and it will be on their monthly bill as well. >> okay. i was hoping it would be adequate because people with mail these days, so they know this is coming and they don't get hit. i agree, i don't think it's going to be onerous but there might be people who for whatever reason might be tracking and this might motivate them. >> yeah, we will definitely make sure. we've actually corresponded from the group from time to time and these are typically not individual homeowners, they are typically managed properties as opposed to another thing in your life to deal with. >> when you think about like park merced, san francisco state, they have multiple accounts. when you talk about 1600 accounts, it's these larger users

we are reaching out to, the ; the managers and others it's a way to outreach to them as well. >> thank you. >> thank you, commissioner veet or. any other discussion, on the amendment are we prepared to move it. >> so moved. >> second. >> it's been seconded, is there any public comment on the amendment by itself. yes, yolanda. i have an item for you, do you want to speak on the item or the amendment? >> item. >> all in favor say, "aye". >> aye. >> opposed. the ayes have it. the item as amended so moved. >> second. may i ask one question? >> commissioner vietor? >>commissioner francesca

vietor: maybe i missed this. is this going to last forever, this excessive charge issue or is this time bound? >> no. i don't recall there is an expiration in here but we would definitely bring this back for rescindance if there is an end to the drought. >> we have to bring this to the board if there is a mandatory restriction. >> this is in response to them. we have to take an action to remove it. >> okay. that's not going to be an issue because there is no reason that they would, if one of these big users expands their property or they get an expanded use permit, what would happen with something like this if they start to use additional water? >> actually what i truly expect to have happen is if as you implement conservation, it generally takes and

it takes, unless you are going to the point of distressing plants, if you are making changes to respond to us and practices that respond to pressures of conservation, that's what we've seen historically through the whole area that capital use goes down. >> for practical purposes there wouldn't be a reason to rescind because you would start conserving more ideal lau ly in a perfect world. >> you mentioned new development, we are programs. so we are hoping the new developments are smarter and put in more water wise type of landscaping and capturing the water that maybe they can reuse. >> thank you. >> any other questions for mr. ritchie. i have a comment card, yolanda louis. no. 16.

>> as another opportunity if what we see is writing on the wall, not only for the businesses but eventually if we don't get a grip on the droughts where it's going to hit is the consumers, the homeowners. let's have a reciprocal, let's recharge our water ground water 10 percent, what i see from the federal level they see things but they are not taking the action. they are going to say let's get it from the people and do a rate increase. the people will hurt. i'm going to ask for the businesses, let's set some goals that we can do from the other side. conservation, the only way we can get around this, we can't make it rain so that means we have to conserve what we have which means i never hear recycling come up in any conversations whether it's at the city or state level and we need to look at that more seriously the technology i'm speaking

of would decentralize like these new developments going up, not use the same drinking water that i use to flush the toilets let's set it up so in these developments like in i ohio if we have contamination, niece individual units are up and running. we build as smarter and don't continue to build the way we did in the past and some of those issues that some of you brought up and i'm glad that you are paying to what's happening because we can look at examples such as japan where we see the worst of the worst. they are on an island. they have to look at solutions that work. what i'm seeing is band aids. in california they don't look outside. they go to the big guys who have been doing this for a hundred years and they look at the technology they had a hundred years fwoo, let's

look at the places that are desperate and don't have other options. if you look at japan, how were they able to get away with this react or. there are things that they are doing but nobody is paying attention. look at the small guys and i can link you to some of these technologies. look at the examples in the world where they have the worst case scenario, we are not going to be able to make it with 100-year-old technology. if we can look at technology to decentralize system, let's put some meat on the other side with those that are making the relations to putting 10 percent back. >>president vince courtney: thank you ms. lewis. any other comments on item 16 as amended, seeing none, i will close public comment. >> all in favor say, "aye". >> aye. >> any opposed? the ayes have it. the motion carries.

>> jasmine? >> closed session item 19, 20, 21 off calendar, item 22 city and golf course and item 23 is off calendar. >> we'll hear one item in closed session, that's 22? >> correct. >> are there any comments to items discussed in closed session. the public comment is closed. it's been moved to assert and second. all in favor say, "aye". eye aye. >> >>president vince courtney: we are back on the error. we disrespect rourd. record. we have no announcements. it's been moved not to

disclose information on the closed session. all in favor say, "aye". eye aye. >> the ayes have it. we will not be disclosing. september 9th meeting is canceled. >> any other commission business? this meeting is adjourned. [ meeting is adjourned ]. the next one is the 23rd? correct. [ meeting is adjourned ] >> >>

(clapping.)

sociogood morning, everyone. good morning. good morning. my name is harlan kelly the director of the public utilities commission i'm excited to welcome you here today, it's a diverse group we're going to talk about the issues we're looking and facing the drought. the puc you're in headquarters of the puc it's a if you don't know about the puc we're responsible for water wastewater and power our water system is a vast water system we provide water to 2.6 million yourselves in the bay area not only in the retail but wholesale swill as the a regional issue we talk about the water not only our drinking water see but our wastewater we have a unique opportunity to look for opportunities to expand our water supply and a lot of is it

reconstrict we're looking at ways to take advantage of that. this headquarters represents what the puc is about later today, you'll take a hour of the building and so we treat our wastewater on city i site we recircle it through the urinalysis and the toilets it's a amazing building and you'll look at all the great features we have today so i wanted to first start off with introducing the mayor of san francisco he's an infrastructure mayor he's been promoting investor in san francisco infrastructure and one the great things we're able to do t is fix a lot of our that is my understanding that bring water here we had a lot of leaking that is my understanding our system is over one hundred years old and with the ability to reinvest in infrastructure that's the 4r5rg9 saving of

water are we've experienced at the puc donates my great pleasure to introduce the mayor of san francisco (clapping) >> thank you harlan letting express my appreciation for hosting this beautiful building. i also want to say thank you to you all of you. those are important and serious times. in our state and i suggest to you that this is an emergency that we're in that's why we are could i convening xhvnlt with our great governors request we hold those he meetings on the basis of the state of california we've got to manage this impending disaster we're experts in disaster preparedness and management i want to thank the

governor mark for hosting this recreational meeting >> thank you all how are stakeholders in this to be working and sharing information with each other as an entire region. san francisco while we will do our best we have to work in concert with the north bay arresting and all regions this is not going to go away we've not be lucky like maybe in the world series or something where we can count on someone else's failure to be our success we have to make our own success we're doing our best in san francisco. since 2007 our san francisco government agencies have reduced water by 20 percent but still

that's not enough i've called for on ailed 10 percent because if we are going to have some serious conversations with our businesses before i do that before i indicate to them what we need from them and they are the biggest water yourselves in our city we have to demonstrate our own commitment per diem and having the puc and our compliment department of working together to reduce an additional 10 percent is important so we have the moral foundation but the practicality to begin those discussions with our businesses. not only is water reduction important i think we're at a cutoff we have to signal behavior real life changes have to happen in order to manage

this pending disaster so i'm about making sure our kids grouping just as they've done with education to emphasis the demands for education we want to get all our - our city represent the effort to conserve and collect as much ground water and recycled water where a appropriate to keep the freshwater this is what we have to do an aggressive agenda thanks to the governor's office for leading this effort those conversations have to go more than a regional approach we've got to have actions that we'll promise the public we're manage

a crisis in the making not only do we lead by example and cut waste and water i imagine has much as possible we have to talk to the public about behavorial changes that's the most difficult thing but as a leader in this great city anita and i my wife has talked i talked about how to demonstrate at the home we can say to our kids we're leading by example and be the behavorial change this is a calling of us as government right now those are the challenges of our time this is a very serious thing we're not going to go through a simple agricultural thing that's a strong, strong part of our economy it's going to challenge our hospitality our hotels one of the greatest parts of our city and get