pay attention to not good investments so i apologize we're not there yet again we were detailed as a result of rim fire but our goal to bring a patriarchs approach to the work on hetch hetchy. >> i'd like to add amends the r and r fill in work you say a bigger project is detailed i have a window you may be to fit in work our staff is funded on the project that the project is detailed you'll still get a check by having the fill in work r and r it will be hard to schedule so when you have time move it up so sometimes, the r and r work is public. >> that's why i'm not suggesting a solution i recognize that's required this project is a $30 million project

more than just a full in work there should be more inches on that. >> sure. >> right so have you address the lower aspect. >> no and i cannot because of conflict of interest. >> oh okay. >> (laughter). >> okay again answer. >> we've been training him. >> is that true off the coast range tunnel. >> unfortunate yes ma'am. >> okay. >> all right. so. >> i mean, i say what happened then with a historical and preservation prospective on lower cherry the flatiron contract is in place and phase one work has been implemented

aqueduct is serviceable and we're furthering last commission we authorized the flatiron contract if we are that not making broken this is moving forward and with respect to mountain tunnel the plan is to do an investigation with tunnel similar to the coast range tunnel in order to give us more information as we move forward and the environmental process is moving forward because what we have mapped out to t that's the critical path. >> okay. thank you any other questions or comments i do have a speaker on this topic so if i could excuse you for a moment. >> thank you members of the commission nicole chief financial officer my comment for

the coast range tunnel i was pleased when i heard the inspection was implemented and went well, no surprises in the inspection it's a always good news one thing that is helpful our quarterly report obviously had a data of december 31st and the projection hopefully have a much better question do we expect that to go over that budget i hope it will not as part of the inspection thank you very much. >> thank you mr. cruz. >> thank you, commissioners yes, ma'am medical cruz with the infrastructure with respect to the watermelon enterprise quarterly report the only item

i'd like to call out the objection nation plant that project has seen details and cost increases we're working through that put simply we're run into challenges that was a project that was put out as a design built project and led by dpw and we've learned the lessons if you're going to do design build you need to leave the design to the design builder we set schwarzenegger or some dimensions as a result, it is extremely loud and exceeding our noise requirements so the details are associated with trying to deal with the noise impacts of the project so we need to do some long term fix's

we're in conversation that the design builder in order to bring this project to you are. >> on the wastewater program another piece of business is the risk analysis for the proton program for the s i b program we're working and i'm wondering what the states is. >> i think i'll ask karen to address that as part of the update. >> okay. >> primarily again, because of my conflict of interest. >> mr. kelly. >> okay. we'll move on to the next item bond fill update. >> good afternoon members of

the commission rich the debt manager of the charles pearls is on vacation i'm here to provide a brief report on a bond sale that occurred it was a pricing that occurred about $402 million we sold a couple weeks ago we decided to take advantage of the low interest rate investment and funded bonds in 2006 and 2009 i'm pleased to state it we had very successful pricing relatives achieving in your opinion good rate paying savings in brief rate paying savings close to $29 million and on a percentage basis 10.3 percent

savings far exceeded the 3 percent threshold that's required under our debt management policies of 10.3 and surpassed the 3 percent i want to mention the last time was in 2012 so three years ago the rating agencies moody's and s&p 500 have firmed our bond rating for moody's i didn't see and double a from s&p 500 that is a testament to management over the last few years because of the drought as well as the recent vicarious ability to say not to affirm our strong bond ratings

in order to chief those results it took a lot of effort investor outreach with the local level by primarily to the constitutional investors those are the folks that buy the bond in big chunks there were a lot of people involved in the effort at the puc and water enterprise i want to give a shout out to steve richie it joined me in new york had one-on-one meetings are the bond experts and made a presentation to the bond spent as a result, the next day orders over one billion dollars that allowed us to go back to the underwriter with that kind of demand to jp morgan i mentioned

vanguard one of the largest mature bond funds in the country they were at the presentation with steve and i put in one hundred and $29 million of orders very, very effective outreach so again, it was a successful effort and we're pleased with the results if you have any questions, i'll be happy to answer them. >> wonderful. >> i'd like to say that you know to have the bond rating we do is just dprierld and for us to go back b there in the drought and convince them the water bonds are where they should be is a great feat. >> thank you obviously we're

not toy trying to undermine the drought but a lot of investors worse case scenario and the tabloid headline news steve objective did a interpretation job in awe on the same page their concerns and we're managing the drought and he mentioned we're in a better shape than other agencies so kudos to steve. >> yes. >> is there a pocket if the drought continues in the coming years it will effect our credit rating. >> absolutely absolutely so again continue with the effort when is managing around supply and managing around finances we have to pay our bills and debt service we're not alone in this situation we're amongst others and after the discussion with the agencies with the bond

investors we're able to effectively convince we're doing a good job keep us where we are they kept us where we are and bought a lot of bond. >> ho do we react to the drought you can't - we have urban reservoirs for the go math that may take tough decisions. >> also the willingness to increase the rates to cover our debts is important to note. >> that wasn't that an important consideration from an outreach moving forward it is one - >> one of the answers they asked us what if this continues and our sales are lower than projected our response we're in discussion with management and commission to take whatever

measures to keep our finances up to cut costs or whatever the difficult decisions we'll make those decision at that time we're not there yet they're asking the questions as well as ever water agency in california. >> and two other points one that the contractor we have with our stwhoerl customers guarantees the cost we pay there is a time delay but basically, not subject to the amount of water we sell a that's almost exactly true true and we made that clear to the agencies. >> the other part we keep getting presentations talking about the water rate is a percentage of meanwhile income to see how tolerant the community is with additional

water rate increases if they've been on the safe do of that issue. >> so far. >> we're projected to so for. >> thank you. >> thank you very much so before we go to cc ii want to make one comment i realize a lot has been happening. >> saw in the paper about emile cruz and wanted to where's el e emile i won't be here at the next commission meeting i want let everyone know that e mills last day is april 14th we have a conflict with the city attorney and everyone is trying to remove

the conflict it is difficult for him to perform his job we came to the decision to release him from his kraekt contract wanted to talk about it before the 14th i'll not be here i don't know emile if you want to say something or wait until the 14th to tell the truth why you really want to leave (laughter). >> all right. harland put me on the spot i was not presented to say anything but off-the-cuff what i can say i'm very disappointed that this has transpired i have had a wonderful two years almost to the date here at the san francisco public utilities commission it is an outstanding

organization both professionally as well as socially it does the right thing and been an honor to be part of it i want to thank harlan for his leadership and friendship and stewardship one of the challenges when i started the job you know harlan said i used to be in that job they maybe coming to my door from time to time are you okay that that i said sure if you let them in i'll have an easier job in my office you'll be doing both the jobs to his credit he let me run with the organization and i do think that people responded i tried to bring to the organization my values in print my work style i'd like to think that was well

received i do know that in agencies we've done a lot in the last two years has been focused on the best community services so it is first time i've ever lived through something like this the last 4 weeks have been the most difficult to work through possibilities and harlan was there trying to work out ways to make that work unfortunately were not able a heartfelt to you commissioners and staff for making the last two years what they were (clapping.) >> wow.

>> i called amelia and went on and on and on and on how much we're going to miss him and a void he's going to leave in our family here great greatly missed i'm so sorry we couldn't account something. >> i'd like to echo that and obviously your presence here and leadership is very much appreciated and evaluated by staff as well as the commission a case of a good law with difficult outcomes we have to live in that world i'm going to meet with the consolidation this was a merger that created the situation no fault of anyone at the puc it happened we had to

respond with a grateful integrity but that consolidation made it did the the first name is involved can't be involved in construction management that makes it difficult we have to keep a close eye on it and if it hazard rip illegal effects we have to take care of that your unfortunately, the first caution it my guess not the last. >> well said i don't know if we're going to have the opportunity i want to thank you for the opportunity to thank you emile for all you're good work for the san francisco public utilities commission staff and the departments you oversee and for the city and county of san francisco your talent your integrity, your

wisdom and your friendship has meant a lot both personally and professionally i want to acknowledge that privately and pub this will not be the last time we'll work together i look forward to that day thank you for everything emile. >> with that cca. >> good afternoon, commissioners barbara hale general manager for energy i have 3 things to report on personnel and legislation reforms and sneak peak on the next activities first off happy to announce we're placing michael in our position of acting director of

the program yeah. michael is here (clapping) >> michael has been with the cac program back when i first came to the puc he went off and learned more working in new york for the port authority and has come back to us been part of our regulatory and legislative team and directing it and stepping into the role of the actressing director thank you to him for joining us in that effort for leading us in that effort at the staff level the next item on prevention active reform we have i told you we need to have changes in the way we contract so we can perform our work exceedingly for

our overhead procurement program we're moving forward towards agreeing asking the board of supervisors and mayor for authority specifically to standardize contracts much like others participant in the electrical market the western contractor the edison and master agreement that folks in the industry r0u7b9 use what they're making tracks we have the power pool limited there's amount contract we are looking for the standard forms of contract to be able to be used for our power purchasing for dollars amazes greater than $10 million and duration up to 20 years those are changes to our current

authority we current i'm sure you're aware of have to come to the commission and the board of supervisors when any k345ush8g go obligation involves $10 million or 10 years or more with those changes we'll be able to go out to the marketplace make the procurement decisions that likewise allows us to make xhmdz commitments that have a positive effect on the overhead costs because we can negotiate agreements with a fixed portion of portfolio going forward and have the opportunity with the commitment see new generations constructed to provide services so for the program those contracts are rounlt used in the marketplace we're looking forward to that being a key part of demonstrating the increase

renewable energy that the folks look for out of this program i'll pause there to see if there's any perspective questions on that effort. >> i know that last time we approved the timeline that item is going to be trying to track that we're trying to accelerate that program that as well as the stakeholder engagement line item around program design was supposed to be completed today. >> the proposal was actually on the timeline presented to the board on march 31st we've been working internally within the puc and the city attorney to really nail down our ask and we've made good progress we need logic active language creation time and to make sure we have

the proposal that has the right delegations delineated in that. >> so back up just be a little bit we're trying to identify what we would need to move at a commercial speed so as the charter says over contracts $10 million or 10 years have to go to the board except the construction and contract we can't have the board or the mayor waiver that the voter amendment so we've been working with the city attorney and there's been 3 instances that we were having the board to delegate the autthe board to us so that's what we're actually working with the city attorney but they want to make sure that there's some terms around it because when we

go to the budget analyst and harvey they'll have issues of delegating authority to the board the other thing the mayor appointment as far as cca the contracts that deal with building a new returnable he wants to make sure it is in the bay area and so that's another caveat we have to put into the legislation to allow us to move forward so we're trying to accommodate the mayor and trying to accommodate you know the city attorney and everyone else is on board but to make sure that it goes through harvey and address a lot of the issues we're trying to follow the schedule such as a and trying to accelerate i want to make sure we want to make sure that you know we get it so we execute it we can do it right the other thing i know that

inquiring the long term debt we need to be committed we've had situations we've answered into long term debt and it explicit pan out right so before we go out with the rfp we have to meet with the commissioners to feel xhovenlt what type of long term debt we're talking about and what range because we had a situation that you know we entered in a it didn't turnout well, i want to throw that out there there's a lot of moving parts but i feel comfortable we have a place where we want to go so to hopefully, we'll meet the date of the 31st we're trying to accelerate it but if not shortly after at least we feel that's what it will be. >> now the timeline says the 24th i mean, i'm concerned

there's this is a tight timeline we approved the timeline at the last meeting there you are several other things that are coming up quick not to exceed the 24th you told me yesterday. >> yeah. i'll jump to the sneak peak. >> it sounds like we don't have a proposal on the perspective ask will look like; right? you've given us an outline but not the proposal will look like so i don't know if we need to readjust >> what we're going to do at every commission meeting an update if we find something that more difficult than anticipate we'll came back come back and tell you it is challenging we'll look at ways that's why you have

the ability to make up time i really want to do things right and have a program that we're not proud of so you know we're committed and moving the program as quickly as possible but want to make sure we have the ability to move forward so the schedule we're trying for work to meet it so we're doing everything we can to meet the schedule as well so that's what i can say about that. >> so that date we're looking at the 31st moved to the fourth. >> we're going to try to make the 31st but if not, we're going to try to get it hopefully, the next week so we're going to try to work with the mayor a accelerate the we can ask for

thirty days detail there's things in the schedule i want to marshall make sure that the nuances we're 6g9d out we have the ability to do that. >> i'd like to say that i think vice president is right on the schedule has to be met and there should be no espouse nor not having that met correct so we're going to have to fire up did you i think you have a comment as well. >> the only thing i'll add there's a portion of this you know, i appreciate the desire for speed and maintaining the schedule but the other part as items come to us to make sure we're doing the right job and if - so we're kind of working at different sides of the same issue we want to do it quickly

higher on your list than mine i want to make sure all the dot all the i's and cross the t's so that's a pressure i i know that harlan in the middle and that's going to be tough i heard from you where you know the schedule as a whole is the most important the individual line items may need flexibility and you need latitude to do that. >> i respectfully sdprau we had a timeline to be approved if there's a difference so i come to the meeting expecting a proposal on a certain date maybe some notification or you say you're not going to be in it for those reasons but of a sense all