to the capital plan. this again is the money slide. i won't spend a lot of time here other than to say that the rate changes, this plan is balanced, it abides by all of our financial policies and the rate changes beginning in 19 is what have been updated and those are reflected here similar to the water. the water slide, again what's in yellow is what's already been approved, we aren't proposing to reopen any current rates at this time, but beginning in 19 you will see that those rates have gone up by 2 to 3 percent each year. here is the average bill, the pronouncement again is much smaller again because water consumption assumption has gone down. interesting again just the components of the sewer bill.

you have your 24/7 operations, your revenue funded service. the commission has only taken action on phase i, but we have included in all of our projections here if there were an approval on phase ii and phase iii just so you know phase ii and phase iii are included in our cost projection. here's the combined story. the combined story again is water and sewer together, the rate changes once you look at both of them combined are going from what we had told you last year of right around 10 percent to between 10 and 12 percent a year. again we will bring these rate changes back to you in the next 2 to 3 years once we have our retail cost of service study and in the interim period between now and then we will work on bringing these rate changes down as much as we possibly can.

that was the rate side this is the bill side. again, the average bill is projected to be slightly lower in 19 and 20 because of that reduced usage. we do show 20 years, we've gotten some questions over time about what happens in year 11 and year 12 in our 10 year 12 so we show 20 years of future horizon on this chart. >> can i -- i have a question on that. you know we've been talking a little bit about storm water fees, potentially. has that been factored in at all as a projection? >> right now we haven't made any bifurcation of our waste water rate between what's storm and what's dry weather flows. we are working on that off-line in terms of an internal analysis and that it will be part of our work package that we bring forward when rates

come back. we talked about a variable rate setting, we can give you an update on the question of storm flow. >> and i guess the other question we were talking about earlier is this kind of fixed versus the volume metric, that will be provided too as an option in the rate structure conversation, right? >> that translates to about 15 percent of the bill. (inaudible) we have definitely more expense than 1 would consider being fixed, a lot of our debt service and what not, we can make that a larger part of the fixed rate charge. >> those numbers, so those numbers that you put on that previous slide include some of those conversations or is that kind of business as usual? >> business as usual, yes. affordability i know is a big

important thing. as we talk about fixed numbers and going forward, this commission has created a level of service of 2 1/2 percent of median household income and the san francisco water power bill, combined bill, we are able to keep underneath that 2 1/2 percent again as a factor of folks using less water. that's how we're able to keep below the 2 1/2 percent. so we are able to maintain that level of service goal. >> and i will make my constant observation that that's based on a median household income of $78,000. there are a whole lot of folks that don't make that. for most of us it may be pretty affordable, for a whole lot of folks it's not. i think as we look at rate structures that's something we have to keep our eyes open to as well. >> okay. i'm going to skip forward, if you don't mind to hetch hetchy. hetch hetchy is in

balance, not a lot to talk about here, which is great. we have one cent rate increase that's already been approved that will bring them to 1.78 cents per kilowatt hour. full funding, et cetera, is already included in our budget., has been included. again this plan is balanced, it conforms with our financial policies and i'm happy to take your questions. >> commissioners, questions? this is a public hearing. will this come to us next meeting for a vote? >> actually this is a public hearing for you to take action, so you would close the public

hearing and take possible action. >> why don't i have a resolution in here? >> no, not taking action? we were. >> there should be a resolution in the agenda item. >> i don't have one. >> it's on the back of the agenda item, just a short resolution, item 9. >> on the back? >> oh, it's the next item item 10. >> no, item 9 is actually the public hearing on the 10 year financial plan. >> right. >> and item 10 is the 10 year capital plan. both of these are public hearings to hear the financial plan and the capital plan and close the public hearing and take a vote to adopt them as required by the charter. >> oh, i see. >> can i ask a question? i have a question. so i know that we are moving

forward, i guess, with some version of clean power sf and that that's connected with the business plan that may or may not have an effect on the rate structure, potentially, and some of the things that are currently being funded and the assets that we have may become part of that program. how -- i mean once we've heard from the supervisors and lafco the urgency of moving that forward. how does that fit into the adopting of this financial plan. >> the financial plan is assuming the last cost of service done for the power enterprise back in 2010. we're issuing a rfp for the next cost of service study. as required by the charter we have to do that for each utility at least once every 5 years. we're planning to do that work over the summer so when we come back

in the fall we will have rate fairness hearing boards and that kind of thing and bring back to you folks the rate fairness board's thoughts on the next two year cycle when we go into the budget conversation, so we will have cost of service study and the power as relates to that. as relates to cca we will build into that cost of service assumption some general assumption of what those revenues would be, but the cost of service work that we would do for the power enterprise wouldn't be to per se set rates for cca, we would be doing that throughout the rest of this year as a separate track. >> so just to understand the context of these two items, they are required by the charter. you can always revisit your financial plan, your capital plan, at any time you want and adopt it, but this is required by the charter for us to submit actually adopted and for the capital plan is goes into the capital planning

process for the city overall. so while it doesn't have all the nuts and bolts and things you are thinking about or contemplating or business plan there, you can always come back to it. but we have to adopt it each and every year and this is the time of year that we actually adopt it. >> i have another question on something that's not in there but i didn't see anyway, this mountain tunnel issue. >> the mountain tunnel is in the capital plan, which is the next item. this is the financial plan. they are actually tied together. what we're presenting first is what are the financial projections, it includes all the capital projects in the next 10 years in the financial plan. so year 11 comes in year 1 becomes year 0, mountain tunnel is in there, they feed into the financial plan and then we start doing projections out into the future. >> okay, thank you. >> good. thank you, mr. perl

is there any public comment on this item? may i have a motion? >> i have move to close the public hearing. >> all those in favor. i already asked for public comment thank you. >> the next item is the 10 year financial plan -- i'm sorry, go ahead. >> item 10, public hearing to consider and possible action to adopt the san francisco public utilities commission 10 year capital plan for fiscal year 2015-16 through fiscal year 2024-25. >> good afternoon, my name is francis lee. i am here to present the fiscal year 2015-16 through 2024 and 2510 year capital plan summary. this table highlights the two plan years capital plan by enterprise. between the two 10 year capital plans, which is

one from fiscal year 15 through 2024 and the other one is 2016 through 2025, the change is $157 million, which is primarily explained by the rolling 10 year changes from year to year with programs coming on in the 11th year or the new fiscal year and programs dropping off in fiscal year 2015. i apologize for this slide looking very distracting with all the arrows going in different directions, but to summarize water's 10 year capital plan assumes 120 million of programs added to the new 10 year plan and offset by the wsip one-time funding in 2015. the auxiliary water supply system, 86 million comes

off in the 10 year plan as it is fully funded in the current fiscal year. waste water differential of 16 million is the planned rollout of the sf sip program and hetch hetchy's change is 43 million dollars. this slide illustrates the various changes and the water enterprise and again the changes are really between the two 10 year capital plans due to primarily the passage of time. the awss is fully funded by the general obligation bonds. and waste water fiscal year 2016 through 2025 capital plan changes by $166 million primarily again because of the

planned rollout of ssip this slide shows the changes of the capital plan and hetch hetchy power and hetch hetchy up country. next slide shows the movement of programs within hetchy power from the last 10 year capital plan to the next. and hetchy water up country and hetch hetchy capital plans are down as projects rolled off in the 10th year of the last capital plan. the commissioners requested to adopt the charter mandated capital plan for fiscal year 2016 through 2025, and the plan will be submitted to the capital planning committee on february 23rd and further submitted to the mayor's office and the board of supervisors

before march 1st. at this time i'd be happy to answer any questions. >> commissioners, any questions? seeing none, may i have a motion? >> i will move it. >> second. >> any public comment on item 10? seeing none, i will call for the vote. all those in favor? opposed? the motion carries. prrp. >> item 11, approve budgetary adjustments to sf public utilities commission's adopted fiscal year 2015-16 annual operating budget for the enterprises under the jurisdiction of the san francisco public utilities commission. >> just so you know before we start, we are requesting some additions to the 2 year budget which will have to go to the board of supervisors for approval but miss lee will explain what those are and they're very focused in request.

>> thank you. yeah i will introduce the budgetary adjustments to the sfpuc's adopted fiscal year 2016 annual operating budget and this mid-cycle review. so the commission approved a budget for fiscal years 2015 and 2016. the adopted budget for the 3 enterprises is 988.98 million dollars. the first adjustment to this budget is the mou adjustment made by the controller's office to reflect reduced retirement rates and fringes. after evaluating and rejecting many budgetary adjusting requests, there is only one proposed adjustment presented to you now and this request is half a million dollars for new services installation and the water enterprise to purchase two vocs

along with 5 project-funded (inaudible) this half million increase is offset by the mou adjustments and leaves the total annual budget amount unchanged. the next slide shows the breakdown of the fte count and to authorized funded positions, salary savings, and the total positions funded in the operating budget. associated with the new request for these services installation is an additional project funded fte's to reduce overtime, increasing the authorized positions from $749 to $754 in the water, regional and end city, and the total has increased from 2,402 to 24407.

the proposed budget dollars remain unchanged and unaffected by these budget counts. a little explanation to support the increase of the new service installation program. the new services installation budget request will allow the water enterprise to reduce backlog in two places, water pipeline main connections and for new service requests. currently the backlog for new service requests is 4 months and we are hoping to reduce the backlog to one or two months at the most. and the projected revenue to be realized from the backlog is about a million dollars and then the other purpose is to accommodate work arounds for new developments. at this time we are requesting the commission's approval of

the budgetary adjustments to the adopted fiscal year 16 annual operating budget so that submission to the controller by february 23rd is possible. are there any questions that i can answer? >> what's a work around? >> plumbing modifications may need to be made to accommodate major development projects. >> sometimes we have to go out and do something to get the development hooked up and just we put something in place temporarily then we have to go back in and put something in permanently. one frt things you have to recall is development is happening in the city quite rapidly and what tends to happen with developers or their contractors is they wait until the last minute to come in and say we need you to hook us up and they say can you do it tomorrow because they have to pay us a fee to do

that. we try to schedule our crews as was stated a couple weeks out. we're behind, we're looking at other ways we can maybe speed up service, but we think this is the most efficient way to do it. we want to hook up these customers and they want to be connected. >> these are all funded? >> they will be 3 year positions. they are not tenured positions. >> if we get past the boom of those positions they will have to be reconsidered. >> those positions will have a time limit on them, they will have a sunset provision. >> any further questions? any public comment on this item? may i have a motion? >> move it. >> second. >> all those in favor? opposed? the motion carries. item 12.

>> item 12, resolution to calendar a public hearing on may 12, 2015 to consider the adoption of wholesale water rates for fiscal year 2015-16, effective july 1, 2015. >> this item is fairly self-explanatory. we need you to pass a resolution so we can set a date to send our wholesale customers when we can have a hearing on that wholesale rates. >> outrageous. >> i didn't ask for comment. >> i'd like to move the item. >> i'll second it. >> any public comment on this? seeing none, all those in favor? opposed? the motion carries. >> item 13, adopt rules and regulations for administering interruptable water service. >> mr. ritchie.

>> steve ritchie, general manager for water. (inaudible) step wise fashion the original version that we asked the commission to adopt had a very steep curve, almost immediately putting them out of water. so we made it a little bit more gradual, we think that's more reasonable but still is faster than what the residential conservation would have to be so we recommend approval as it is. >> any questions? may i have a motion? >> move it. >> second. >> public comment on this item? all those in favor? opposed? the motion carries. >> item 14, adopt a resolution authorizing the general manager, together with the executive director of the treasure island development authority, to jointly enter into a long-term

interconnection agreement with the port of oakland. >> barbara hale, assistant general manager for power. what you have is a continuation of a agreement we have had with the port of oakland. as you know we are the power provider for treasure island. we have perform that function in a caretaker role for tida and this provides for the renegotiation and extension of our arrangement for conveying wapa power through the port of oakland substation located on the port property. this agreement would allow us to continue to provide that service, it's been approved already by the tida board and with your support tida will take it to the board of supervisors. and i'm happy to answer any questions you may have. thank you. >> questions? >> i will move the item.

>> second. >> calling for public comment on this item. seeing none i will take the vote. all those in favor. opposed? the motion carries. at this juncture i'd like to announce that items 15 and 16 are being removed from the calendar and they will be heard at a later date. >> madam secretary, can you read the matters that will be discussed in closed session. >> item 19 --. >> if i can interrupt, i don't think we need a closed session today. so if you would like to finish the meeting --. >> all right, jumping ahead, is there any other new business? seeing none, this meeting is adjourned at 3.01.

(meeting adjourned).. >> the first mayor of chinese-american sesent mayor ed lee as long been a supporter of stylists 3 support diverse and cultural hernlz of asian-american in fact mayor ed lee has tenant many ceremonies in the past and participated in last year's near the horse dedication we're happy the mayor is here today so, please join me

in welcoming mayor ed lee (clapping.) good morning, everyone it is a pleasure to join you all again, i know that anita and i are excited to public school be here on the launch of the 8th sample which license number our calendar of the year of the ram we're exciting to join our organization of chinese-americans our family associations through the consolidated benefit haven't associations and president is here and eddy from the chinese chamber and, of course, our united states panama canal's who has been the wondrous celebration to this designed stamps that honor our cultural and honor the license number in charge new year not only the

chinese but the korean and vietnamese and all the cultures that celebrate the license number in charge year i also want to welcome our nuttiest members of the board of supervisors our sprilg who represents district 3 (clapping) and i know she shares the same fascination of anita and i and others here of the expended design that make making and several other artists have put together to kind of view the latest intertwines with the levitated stamps i want to thank and congratulate the united states postal service those are times they ask the public's assistants because the great organizations but they also do the things we are proud of i want to congratulate her, she

has to be routine by the planning commission, and may be acted upon by a single roll call vote international female postal stamp it's important to commissioner christensen and anita's the mother of two daughters and important to me as a father of 3 women and poor to leonardo she's not here but is our first african-american board of supervisors president this is, of course, the year of the ram and it means artistry and a let's shyness i society with and it certainly means wichl and respect i think those traits will be with us throughout the celebration we just kicked off with commissioner christensen the stockton street merchants and the widening of the sidewalks and that displaying and showing

you showing of the new year's items that the families want to come to see i just got notified across the street over one hundred people that are going through citizenship classes we want to be part of our society i can't what a ii hopefully see them raise right hand that their citizens of the suits it is great for our city college to be hostedors classes this is happening was because we share the stories of immigrants and certainly the oc a working with our u.s. postal service recognized those things when immigrants came to the industry e country and has this story for decades of the citizens here in san francisco i'm extremely proud of the history but want to

celebrate way beyond the asian communities and the latino brothers and sisters and our gay and lesbian brothers and sisters be part of the celebration you'll literally see that diversity in the evening prayed that has an entire country we look forward to the weeks but in between i've got currently fairs and community fairs and we've got paper baggy he wanted be and wonderful celebrations in between all of those all the families will have their kids come back if whatever their attending city college and reutility to share in all of the neighborhoods across the city and across the region and everyone will find american people excuse to come to 80 to san francisco and if anything to make sure they get the forever stamp it's my pleasure to

welcome everyone here on this occasion of the unveiling of the stamp buy as many as you can and in the celebration but at the same time recognize it that that is part of our history of the history of the itself not only for the asian-american but part of the united states history so thank you, again, for joining us>> (speaking foreign language.) (clapping) thank you very much for being here. (clapping.) >> thank you so much and i didn't pay him to talk about buying the stamps so such we appreciate that mayor ed lee before i introduce our dedicating official i want to mention we have a few honored gifts not that you're not honored gift but honor gift i want to introduce