outdoor use with the customers correct. >> only for those who have dictated the irrigation account we generally have a pretty good idea for more folks particularly those who are apartment twerlz very few landscaping it is almost exclusively indoor. >> how much. >> we figure for most we have a factor about 10 percent of the water bill goes to irrigation so 90 percent is indoor use that's the basic rule for all residential use in san francisco confusing the irrigation. >> yes. vice president. >> have we ever considered not issuing additional water meters for a period of time? >> no

all of our projections indicate we have ample supplies to provide for san franciscans. >> more or for all projected growth and druth situation. >> yes. our current design dwrauth and we'll continue to make sure we can continue to do that you know we will be looking at the drought continues we'll look at other options that are extreme conservation. >> so cost wise with what do you mean. >> i mean i've point our storage is in good shape if the drought continues for 3 more years we'll get to dangersly low levels and the alternative supplies generally fall into the

direct and direct quotable wastewater. >> so the potential moratorium on wastewater meters. >> that's not something we in san francisco think it is is right kind of control measure. >> also when development comes from the planning process we evaluate the water use our allotment we have room we look at our normal allotment we'll have do that in the planning process i don't think it would be a good thing someone build a project and at the last minute we hold it up. >> it's time to explore the range of where we might end up if this mega drought continues.

>> beyond why additional water meters would alleviate the problem with additional water use for more hookups. >> we'll say no more hookups not enough water it doesn't sound like that's been on the table let's hope we don't get that. >> when we do certifications for development part of analysis says in drauthsd there be occur contaminates it's to the an unanticipated factor not what we use to decide whether someone can hook up or not so given the fact of life that's built into the process we have to withstand the curtail time after time and

it shouldn't be more than 20 percent i think that will be our right to justify the curtailment. >> any other questions or comments. >> thank you, mr. richie. >> those are quarterly updates. >> good afternoon, members of the commission i'm the general manager for infrastructure you have before you the quarterly report for the hetch hetchy system improvement program as well as for the watermelon enterprise cip i want to point out four projects for your information with respect to the hetch hetchy cip program

small hydro university mound project is in changes because of the cdcs request for the changes we're moma those changes and it's increased the costs so we're reevaluating t return open investment and making a decision whether that project will move forward with respect to the street lights project we have had some details in implementation of the street light project as well as cost increases by emergency work by the storms in december and need to divert crews to address street lights that were impacted as a result of storms but back on schedule and moving forward physical evidence with respect to the projects sorry i forgot

my glasses the low monitoring projects those are detailed as a result of the inter - yes. i will take those thank you, donna. >> she has to do everything (laughter). >> just give her your paper. >> the interconnection agreements we're dealing with the interconnection agreement is coming to an end to put the resources and as a result of those the metering and low monitoring as well as the assessment projects are detailed those are the 4 projects that have red dots in the hetch hetchy and with respect to the wastewater cip. >> can we stop and take

questions anybody questions for hetch hetchy yes. >> thank you one question i've asked sometime ago whether we're using the appropriate metrics for the projects hetch hetchy is one of the places we have one that caught my eye whether there's a lot of projects it's hard to tell whether or not we're on schedule cause we've put so many things together i don't know what the tournament metrics are but we talked about that before we gave thought and how are we persuading. >> as it relates to the hetch hetchy project we're in the process of developing and articulating the hetch hetchy program very similar to what we did with the water system and the sewer system to and from program it is true we have a collection of projects in hetch hetchy tradition move forward as

a collection of projects but we're doing this year in 2015 and hope to be done in april to bring is to the commission by november is that same delivered approach on the water and wastewater to develop the programs to identify specifically the levels of service goals the benefit that each project brings to the loaf and the scheduled and budgets so you see the return on investment and start to report on the problematically for the service calls it's a significant effort particularly because of the impacts with respect to the rim fire we have had details our goals in november coming with the comprehensive program that is outside of the r n r work we continue to have in hetch hetchy

and reported on separately. >> one the difficulties when i have that many little promotions it looks like everyone is on time and schedule but felix on the scope that ends up being something you can't see i'm looking for ways to make sure you know projects have if theirs issues with completion those are highlighted job i don't see it. >> we're not at that level that's our goal and the inverse if you simply have a list you may 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 close 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