had to truck it in and this plant does it in the treatment process. and finally the two grit studies and 5.5 million gallons and 7.5 million gallons will run in wet weather to show how well we can remove grit from the system. on the stakeholder engagement side you have been briefed on the southeast working group. we had four meetings with them. much of the investment of time is focused on projects but the one in august focused on community benefits. the september meeting focused on programming for the southeast community facility. 15 of the 19 members have worked with us and gone on a walking tour of seltise plant which is a wonderful eye opening time. we have been spending more time with wastewater citizens'

advisory committee and we presented a project -- basically the same that came to the commission and continued outreach all summer long and tough to do, tough to get the public involved in the summer. on the work force development side actually put on each of your places our year book for the improvement program student interns. this was a part of the overall -- a thousand interns that were influenced by the public utilities commission. this is our third year of having the kids and basically assigned a mentor -- either a person downtown or at the plant or one of the consultant firms working with us and a true partnership and learn all about wastewater and present their projects to the large audience and good to see the kids mature and we had

some returnees. we are working with the -- >> excuse me. >> yes? >> one of the issues that has been important to me is with any of these programs is how many of these young people are being given jobs for future enhancement? it's wonderful to have the internship programs but the real value is what percentage, what success rate have you had in bringing those young people into the system so they follow a trajectory toward potential management or potential other jobs? >> that's a really good question, so it's been three years. some are in high school, some are in college and at this time i know two that have been placed with jobs and i will look over my shoulder to see if it's more than two. >> two. >> i was right. >> that's it, two? >> they're high school -- they're going back to college every year -- >> juliet ellis, manager for

external affairs. we're going to miss you, so with the summer youth program we have been tracking the number of kids that come back every summer so there are several of them that come back every summer and again because they're high school students starting in ninth grade and not gone into full employment but come back every year and some have come back after college and have employment so they're not full time job ready with that program in particular. >> maybe i should have asked how long it's been going on? >> this is the third year. >> okay. that makes sense hen. >> when we did the update a couple meetings ago and talking about the people we invested in over the summer again the investments really are focused on high school students and having them have exposure to possible careers and concepts

and doing projects related to this. >> how are they recruited? >> they're recruited in a bunch of different ways. we recruit them through san francisco unified school district. we partner with community based organizations so we provided grants to about 25 organizations this past summer that helped us reach young people that we don't typically have access to so whether it's gay and lesbian youths and others. we did a pilot program trying to increase the number of african-americans in the internship program because we weren't meeting the targets but your conversation about the pipeline we have been in conversation with commissioner moran and met with him last week to start about what the concrete pipeline tas

people can move into different career. >> thank you. >> part of the program and what we were able to do is have the minor tinder program where we work with the contractor and get employment after the training which is in arizona so we're looking at opportunities. i think for the most part it gives the exposure to everyone, but also give them the qualifications to pursue a career, and try to connect hem. i think -- them. i think we need to temper the expectations that everyone that goes through here will get a job and bay cats is another way we are working with other utilities -- >> bay works. >> bay works, yeah. how they actually can work with other utilities in the bay area so if they get the training they not only work for us they can look for employment outside with

other agencies as well, so we're working on many different avenues. >> that's great. we are giving them skills that can be applied to other utilities companies in the bay area region or where they want to go and there might not be vacancies here. >> absolutely and we met with the superintendent last week and how to partner with them around stem and making sure they have the core work around engineering and science so it's a multiple strategy approach. >> well, it's a very important formula because we use it with the stem cell institute where we try to bring in young people that are not necessarily engaged in the sciences and all of a sudden they become engaged as we give them a job and a lab and right now we placed over 250 young people that are in good paying jobs that working in the

stem cell science field and were introduced by accident in terms of the program and the bridges program for state university people, and we also have a creativity program for high school students and you would be amazed -- at least i was with the tremendous brain power that these young people in high school have. science projects that they presented to us. oh my god i was embarrassed. i couldn't believe the brain power of young people from every ethnic and racial group in california that was represented there so i am glad you're concentrating with high school students because many times organizations think they're not ready or prepared. know me more prepared than i ever was in high school. >> and we're moving in that direction to really focus on service learning projects so have them produce something we can use and allows us to tap into

their creativity that we couldn't do on our own. >> thank you for that. >> there was a stat that you mentioned about the work force and how it's aging and a high number -- >> [inaudible] >> wishes. and it was a high percentage so i think it's a thing to be tracking bringing on the next generation of workers. >> that's something that multiple utilities throughout the country are dealing with and the succession numbers. in san francisco the numbers are approximately 40% of our work force will be eligible for retirement in the next five years so there is a concrete need to prepare for that and a huge opportunity and our general manager talks about all over the country. it's not just a challenge but opportunity to look at all different people

coming into the utilities as looking to the future and i know you're planning an up date on that work at the next commission meeting. >> all right. thank you. >> just to conclude and we also held green infrastructure training for contractors and inspectors and had two classes through the assistance center and that's it. thank you very much. >> questions? yes? >> i have a question. that $88 million number seems like a big number. i don't know it all feels like big numbers. i don't know now if the time but at some point in the not too distant future i would like a better understanding of that number and what it's gone towards to date and if we're on budget as far as the 2.7 and some of the allocation, a deeper dive into the numbers? >> so one of the things we produce is a quarterly update

that tells you progress, schedule and budget so you can look at the project and how much is spent during design. construction -- very few. >> very few projects in construction and on calendar too. >> keep in mind that 30% of the cost of a project is in soft costs where you're doing design. 70% is in construction. that's why you want to go through the triple bottom line and all of the analysis before construction. that's where the big dollars are spent. also 2 billion is for the southeast treatment plant. >> yeah, it seemed like if 2 billion is for that and 88 million has been spent are we still hitting all of the targets on the other projects and a lot going on besides the treatment center rebuild. >> there's a lot going on, yeah, and the program report

should help and i am happy to go deeper on the next one. thank you. >> how many digesters are in service now? >> two additional ones are being -- will have the roofs repaired. i believe two are out of service at this time and have two final digesters to repair the roofs from. >> >> so right now they're four out of service now. >> two out now and two out shortly. >> thank you. >> i have one more question. i know that the central bay tunnel conversation is on going and i would like a sense of what that conversation is and the options and related to that and i don't know if it's the next meeting or at some point because i know that is emerging as a need. >> great. thank you. >> any other comments

commissioners? i would like to call for public comment now. >> commissioners, i want to bring to your attention that some of the us in the community did a very important role in creating that contractor's center. now i do not what the city thinks about it or what the general manager thinks about it, but the concept initially of the contractor's center was to be progressive, so first and foremost when they created a task force and asked for them to be in charge of the task force they thought -- they asked for 10% community benefits, 10% of

7 billion. they settled for 5% which comes to about 50 million -- billion -- times seven. 350 million. now, we know that 2.6 billion dollars or 2.7 billion dollars is given for the planning and designing of the digesters and we haven't had one focused meeting at the contractor's center to know what is happening with that. it's past 18 months so we can come here and give some general presentation about this, that and the other, but again and again -- [inaudible] doesn't want to come anymore and she repeats it and there are people on the staff that doesn't get it. we need to know in this design and planning what is

happening because guess what? that task force is instrumental in choosing the site where the digesters would be, not your staff. your staff agreed to it. the other people -- the departments just agreed to it, so when it comes to getting the money for community benefits, when it comes to choosing the site you rely on the community, but when it comes to sitting down with the community, the focus group and listen this is what you're doing with sea level rise. this is what you're doing with the site you all choose or whenever it's going to happen and what is happening with the digesters. we want to how many are operational? two, four, six? . if it's two it's fantastic. if it's four smoots something. that's are what we want to do and we got the money

and other people are spending the money and the $200,000 that given to the east bay and returned. there are shenanigans and we want this done with the community and focus groups. thank you very much. >> thank you. >> . >> thank you for this opportunity gain. how many of you have a reel to reel player at home? not many and if we are talk about the digesters we're talking about the ruse using the same technology and we're talking about things that don't have to exist and there is technology we don't have to have biosolids and maybe a billion dollars that could be saved by doing that. i want to ask how many solutions are solved in the new design you are talking about

implementing and issue a challenge because every drop that we save today is available to use tomorrow and i don't see that happening on the projects i have been listening to see i want to offer a challenge today for the technology i of talking about. for the money we can save you we ask for 50% of the money we save or even 30%. i am calling this a challenge because i hear the same things over and over and francisco talked about the community not involved. i have ph.ds that can design the blueprint. we have a draft blueprint -- if not in the u.s. we're going to take it abroad because there seems innovation stipelling going o we have a company with technology here in the u.s. and brought to market by an individual born in san francisco yet we can't present it. i want to know if we can take a look at change because we want to create jobs. this

technology can be done in bay view and i have talked to them and have a manufacturing plant and sustainable jobs and build by san franciscans that will solve the problem with the water shortage. we opportunities to bring cleaner water to the people in the community and one of the things i am concerned about when we mix the groundwater with the hetch hetchy water who will be the five% that receive that water and those that receive it how we will protect them? because we talk about pipes leaking and they all leak but what is leaking in? we know it's tested at the point of distribution and not at the point of use. what are we getting in the water and especially the old pipes in san francisco. are we getting copper, lead? who knows and we will know when consumers test at home and we can protect them and there is technology that will

improve the safety but reduce the costs so we don't have to rate increases and conserve the water and recharge the groundwater with the water supply so think about those things reduce, recycle and recharge. there is technology here today. >> any more speakers? before we move on anything we can do about the air conditioning in this room? is there a control? >> i can call. >> okay. thank you very much. okay. item 10. >> item 10 is a bawsca update. >> good afternoon. >> greetings. thank you for having me here today. i appreciate this opportunity to

get this every month. can we bring up the slides please? i am pleased to be able to report today on stuff i have been talking about for a while. we have completed our demand projection frs the wholesale customer service area and i presented this -- a report was presented to my board last week and made public and i will walk through the findings today. we initiated our long-term reliable water strategy, our long-term water planning effort to do two things, do a regional assessment of the water supply needs for normal and dry years through 2040 and evaluate water management actions to meet those needs. we look at reliability assessment. it takes two pieces. you look at both the demand and the projections and the supplies projected to meet

the demand and our projections are the as a result of this project showing more than normal demands than before so lower demands and we're increasing projected development of the local agencies by other water supplies and i will walk through each of these for you. so first we did this updated water demand projections and came out of the recommendations of the phase two report two years ago because it was clear that our old numbers from 2008 were not a solid basis for regional planning. they were developed for different purposes and pulled together as a region but weren't a true regional effort so this effort was a uniform methodology used for all 26 member agencies run through my office and able to pull together and culminate in a single number and what it shows is that the projected 2035 total

normal year water demand for the customers after passive conservation is roughly 20% less than it was from the 2008 numbers. specifically 2008 we projected a total demand after passive conservation as listed and now projecting 275 so what changed? i have to say when the numbers came across my desk what in the world happened here but we knew there would be differences. a couple of key things. projected retail water rates. while we knew the rates were going to increase when we did the projections that rolled up to 2008 they were directly incorporated into the projections we have better capability of doing that and they're higher than at that time and population and job growth has been slowed. those projections from abag from 2008

have been reduced at this point through the 2013 projections and pushed off a little bit so we're seeing slower growth and stricter plumbing code standards, state requirements, things like the state wide reductions by 20% by 2020, those hinges that were not in place in 2008 have also impacted the demand, so the net result is the projected total 2040 water demands after the savings are estimated to be 284 million-gallons a day in the service area so let's look at that graphically, visibly. what does the number mean? this shows on the left the vertical a i guess is a million -- axis of a million gallons a day and this is from the earliest records projecting out to 2040 on the

right. the blue line is historical numbers so the total demands in your wholesale service area, and you will see the dips that we all anticipate. obviously the first reduction from the 87 -- 92 drought and the slow rebound and the start of the recession that dramatically decreased water use in the service area. this orange line are the projections from the 2008 study. they only went to 2035 so at this point that's as far as we were going but those were the projections at the time so here are the new projections. you will see the bend in the line. that's because we have a tool how fast we will bounce back from the economic recession and the drought but the net is 20% reduction in total demand. so now switching to supplies. you've got demands and how do you meet the demand? what's the

supply portfolio used to meet that? so again another graph. millions of gallons per day on the left same scale. on the left you have the planning year horizon in five year increments. the green line is the same total demand and in here are what are called water supply portfolios so the mix of supplies and meet those demands in future years. the biggest bar is the puc purchases. you will continue to be the largest single supply for the region and a backbone supply for many of the agencies but that projected amount to 2040 is 168 million-gallons per day. it's growing but at a slower pace. the hash bar are other supplies so the combination of groundwater, local surface

supplies purchased from the santa clara county water district, local desal recycled water and the gold bar is projected and agencies have to implement to get the savings and washing machines and rebates and those things so the agencies projections to meet those. so now focusing in on this a little bit to explain what we see going on we're really seeing an increase in local supply use as a percentage of total demand. as we go from a normal year case and this year i picked 2015 because this year isn't normal so you can't use this year to show that so we picked the first projected normal year so 2015 and again this pie is showing percentage of the whole. 64%

of the agency's water demands are met by the puc purchases and that is consistent. and the yellow is the groundwater and again what is important is the active conservation. not passive but active conservation at 2%. this is for demand of 232mgd so going to 2040 so at the end of the planning period total demand is grown as shown but the reliance on the different supplies has changed so the agencies total demands have grown but instead of buying 64% of the supply from you they're buying 59% and to meet the

projected customer needs. that is definitely a change and there's different factors that i am sure are playing into that but it's clear in the results that we have gotten from this. so kind of the take away when we look at this study is that new local supplies are coming online and increased use of local supplies so it's the combination of the two things and a slowing of demand increase is really changing the reliability outlook for the wholesale customers and anticipating to purchase this number and that includes nine for san jose and santa clara so it includes all of the permanent customers and the interruptible customers. just a point in case here the 2008 study showed them reaching this at that point and it's a significant difference

and that i want to call out one thing and i made this point clear at our meeting. as an organization and entity you have a perpetual obligation to the wholesale customers and we will continue to expect that from you moving into the future. the world doesn't end in 2040 and risks and concerns don't go away. these numbers are built upon agencies developing new supplies. there's always the possibility they can't get them developed so this is for planning and we fultly expect you to meet your contractual obligations but it's an important number and change what is we have been thinking about so the need for essential normal years supply has been eliminated for the most part through 2040, but there is still a need for additional drought year supplies. what these numbers show is the demand hardening.

we're doing more, we're serving more people. our per capita water use is going down over time. there is a strong desire by the wholesale customers to increase the reliability that they get. when this body -- some of you were on it, some of you were not, made the decision to adopt a service goal allowing for rakzing up to 20% we and other agencies came out strongly against that and it should be 10%. planning for rationing above 10% creates a burden on the whole area and there is a burden for the wholesale customers for that and that is part of the strategy and looking what investments do we need to make to essentially back fill that reliability that the puc has not planned for in your supply and we will look at what those alternatives are as we

complete the strategy. so our schedule is to complete the report by december of this year. we're going to be refining the reliability analysis on an individual agency basis. you have unique set of customers that you serve. they range from small to large, single source to multiple source. they have different needs because of the customer base and water sources so we will talk to them and understanding exactly what their needs are and on an individual agency basis. assessing the threats to the existing supplies because we want to understand this more because it plays into what are the no fail options or the things that you would do no matter what and then developing and evaluating some of the alternative supply poverty foli -- portfolios around that impact. >> >> and the report will meet