the commission is require that all retail customers needs to reduce by 10 percent pea residential has achieved 8 percent and last year relative to 2000 to people need to keep doing what they're doing but that's not going to get the real results we expect to look at the irrigation consumers to reduce by a higher amount in the order of 25 percent with the expose uses of non-compliance we think we should bump of number up we expect to target a subset for the water use universities and other big users especially, if they that haven't take advantage of our reservoir and we can give

you or i can use the best practices for reduction we've started the identification for the pair program we're doing it in two ways from the ami data and another in the system we use devices to find leaks throughout our distribution system and targeted around june 1st we've talked about at the next meeting but the detection front if you have a meter and gotten one in the mail the information you may have a leak we suggest you read it carefully and look at the automatic data for 3 days the consumption does go to zero this is a leak it is a continuance consumption nobody leaves water running all the time so that is

probable a leak we've been sending them out to computers and you should do something on your side of the meter so in summary the snowpack is pathetic there's no snow up there and needless that is a dry year we anticipate hetch hetchy will be around 80 percent i saw maybe 78 percent we've been doing this and we'll issue the estimate to the wholesales customers but the system with the anticipated state requirements will be increasing the retail protection of public outreach efforts and the message is clear we all in this together even though we have individual systems to make sure we get

through this drought i'll be happy to answer any questions. >> i've two questions one you know you may have a leak postcard i'm thinking of all the junk mail and wonder if they got it and pit it in the garbage maybe another way to reach out to people. >> this is the simple i'd say way to do large numbers particularly if one persists we'll call them directly or we've thought about putting into place a reverse call system you'll be called to feel died you'll pick up the phone and the earlier versions you said the data might be wrongs this is the lease way but hopefully see our

logo and see this is real here but likes always we're trying to communicate to our customers in a way to get the message and we'll recheck that. >> even though you see something that has a leak maybe the follow-up will help you snail mail is hard you get so much i have one more question about what happens to our revenue stream for the conservation when we'll have a stunt to talk about that it is already an initial with the governors executive order and other actions we might take but with that ordinance. >> we send a letter to our customers every year we talked to them in february this is what you'll apply for next year we sent last thursday the official

notice for the hearing in may and that will be the 28 percent increase or something like that we looked at if the regulatory framework numbers went into effect the state water board that will be a 17 percent in demand that will amount to a revenue hit of about (1) 800-0000 we k4ruk9d that this is the action they've concluded that is something with the proven use of our reserves and the following year to overcome the deficit that was an acceptable risk that would occur to we'll e so we'll know we'd under collected there and not to bum up the numbers this year that will stretch it so we make

sure our customers have thought about that i don't know if a copy of that letter is in our packet but that hearing is coming up the first meeting in may. >> yeah. the public hearing. >> mr. richie is talking about the wholesale rates the wholesale rates for san francisco retail rates you adapted a 4-year in your package we'll live within the rate increases right now given the fact that we can draw down some of the reserves we're kind of projecting on the retail side and to let me know on the wholesale side is it depends on how much water our wholesale customers bought in the previous year and what their bowing so part of 28 percent they've

bought less water because of the suft program and the 24/7 system we have to make up the difference and we're able to do that it sounds like a lot this year only projected next year is 10 percent. >> it seems like from a communication prospective it will be important with the 20 or 28 percent rate increase and sort of the facade how to communicate those numbers and i mean the press has been on it but it is a complicated thing to explain to the public both residential and public and private commercial that in order to see the rate increases they relate to many may and continue to retail to the streamline i don't know how to describe it. >> on the retail side the commission adapted that sties in

effect exactly what they were told a i don't know we see no reason to change that. >> i have a question commissioner comment if residents is there a rate increase how do you smooth out those becomes we're not seeing a wild fluctuation. >> that is a more in depth question you'll have to ask finance to have a smooth transition whatever we're reaching. >> every year we do you want a 10 year financial plan we looked at adjusting the financial plan and the cash flow as quickly as possible given the operational needs part of the budget process we'll get in debiting depth this

fall when we are talking about water rates the thing on the wastewater side based on those water rates usage we're seeing the doctored revenue but currently using reserves for the operational costs mr. richie our 10 percent volunteer that we've been looking will be 10 percent mandate that's correct. >> the mandate requirement by the state is that we the puc reduce the amount of water by 10 percent so we have a mandate on us we'll be passing on to the customers. >> right so what's the base from what base are they going to take the 10 percent. >> the base year is 2013

what we accepting expect to do the best way to 0 communicate is take advantage of the my accountant for the water meter we've modify that to currently if you look at your data there there is a green barren above or below the green bar it the level we're to be at this of the the line for the 2013 communication and show a line 10 percent below this is is the 2014 level. >> that's in the statement. >> no, it is we're going to put it on the web portal and try to push as many people to the web portal so more than just statements. >> i see thank you. >> statement is not a aboard

idea either you confused me a little bit on the may or may not volunteer part of it we've mandatory programs a lot of bureaucracy and computer time on that are we we're so close for the retail customers are we improving something like that or is it a strong volunteer. >> we met on that last week one of the ways to approach this as you described we did in the 19987 through 2000 drought heavy bureaucracy and heavy burdensome. >> and lots of equities. >> so a lot of burden for people involved what we

identified we'll be informing people i recommend we are required to do this but no go into the details that is putting 90 percent of the effort into 10 percent of the solution the best way to spend our time on the irrigation users and the other users we're going to identify folks that haven't take advantage of the conservation program the irrigation numbers can be absolutely something we'll do that not only for the irrigation accounts but for the decreased flow factor accounts where folks if they show their irrigating they'll are lower sewer rates cut it by 25 percent and it will cost you if you go over that we think we'll have those in place obviously we have

to wait for the final version but it's the 35th we're going down. >> thanking that's correct. >> we are fortunate that beverly hills is not here. >> on that note. >> any other comments for mr. richie. >> i have a report on the insurance policy. >> good afternoon, president and commissioners nancy are the business serviced and the chief financial officer this is a commission policy that was requested and i'm sure you're aware of the puc management is by the adapted policies to insure the rate resources and rate go for a little bit the commission adopted this for the environmental justice and the community benefits and the land

use framework the beneficial projects are funded balanced reserves in january and february do you mean in october 2012 the rate insurance company policy was a further commitment to apply the practices to provide cost effective and other practices to maintain the trust of the repairs and increases our trust ability for the resources and lastly for the transparent through an independent performance report since this enhancement it is the combines that reflect on policy areas for management of admission, personnel, ass acid management and cost containment for example, personnel

management all equipment to insure hiring is appropriate for in addition personal resources are requested before new authorization and in the prior years the satisfaction for the employees for a acid management a person any acknowledge it is for business purposes only it has applied the a long time maintenance requirement and to minimize the costs as well as maximizing the dynamics and finally for the cost containment examples inquiry the justification for operation costs increases over the cost inflation and mid year for current and next fiscal year the

general manager will consider the costs associated with the recites and for support of admission assumption during the two years the commission is provided a summary check list for each policy and the next formal report will be provided in january 2016 control of city as many auditor managements the puc's policy through a accomplished scorecard from the sfpuc for the portfolio of over one hundred metrics and the metrics are selected from the utility model and organized the policy model scorecard highlights the areas of high performance and those requiring improvement and to date the scorecards has been

present to working groups and other meeting and published in the sfpuc website this scorecard valid dates the sfpuc management of financial anal resources this is exemplified through our awards and other acknowledgement as the rate policy insurance policy and card are new opportunity to refine the metrics to create a mess for the reader and audience future things revisiting the insurance company area to make sure their applicable to the current missions of the institutes and taking the opportunity to reflect the new prior and policy in advance of 2 year cycle the scorecard is from a cumulative

puc and controller's office to develop the annual scorecard oath option for the scorecard metric some considerations maybe whether the metrics are adequate and effective for future considerations offered for you today don't require your immediate consideration but we need to further work with you to define those policy thank you. >> yes. commissioner. >> thank you and thank you couple of comments the your verbal presentation i think hit a lot of the points that i think need to be covered i think i have issue with the scorecard and that it is a fine scorecard

but not relates to the ratepayer insurance policy or only thinly i want to give a little bit of background the ratepayer insurance company is something i wrote with the help of todd and 2, 3, 4 response to a specific concern i have that goes book to the last century (laughter) when the voters and their wi678 imposed a 6 year rate freeze on the water enterprise i was under the belief we were going to stop the extend i'm concerned that while the circumstances are different today and our relationship with the community is much different than today, i'm concerned at some point in the future as we condition to have substantial rate increases

that someone will choose to make police a on the fact that our rates have impound up and the accusation our spending is high so that policy was drafted specifically to he would e deal with that issue it starts there's a lot of stuff we don't control our spending we don't control wages those are determined by mous that are negotiated by the city on our above there's a whole lot of stuff we don't control accident policy focuses on those relatively few things we control specifically on the decision process that management has in place that effects cost structures and it has in there some specific statements of policy

that i think we should have a report on each one of those and one of those we will put the capital plan together you know using life cycle costing it is not simple that is the kind of thing that there are cases that are not appropriate we should have a discussion very specific language in there about how we fund our growth in terms of positions that we try to take advantage of productivity and swop out old positions for new positions i think it is going well but have a review and the statements how is it going and what the impedes are additional

specifically address the elements that are constituent in the commissions policy i, go on there are policies that in their nature is general this is specific and some of those things may be wrong maybe we have rides them but the report on the commissions policy your comments the score accord doesn't and i'd like to see paper and presentation come to the commission desk. >> can you ask you a question about that i mean, i was having a little bit of a hard time connecting the dots starting with the policies that were listed because many of them recommended to race and i was like i guess that kind of relates to rats and money. >> before the scorecard.

>> yeah. before the scorecard the commission management and personnel management and then to the scorecard that is really what's being scored on a miss match of not only the scorecards related to rates and money you you know like the environmental stewardship stuff i'd like to have a scorecard on the 127b9 plan but this is specific to the rate parades and this scorecard and maybe an update specific to issues that effect rates very gnarling. >> i don't know if the scorecard is the right mechanism the scorecard is designed to measure output measures and if you're policy is a set of output

measures that's fine this policy didn't have it this policy size you have a decision-making process within the bureaucracy and the decisions you make effects costs independent of 09 decisions that effect right side but specifically on costs so those policies relate to process not to outcomes >> right. >> i don't know if that presents itself very well for a scorecard approach i think scorecards are good for high-level output measures you that are recipient active enterprise the one that struck me was the discharges from the wastewater system uptick that's an important measure but it is not part of

decision process that effects costs so it has its place but not as a report on this particular policy if we have i think we have utilized the scorecard on documents i think there was the simplified engaged report we put out i think that is fine it is a nice way of presenting the data this is more specific to the data. >> we can definitely put something together i can work with the controller's office and the independent bodies to develop something that will address this possibly for future discussions. >> in this case i don't think we were asking the controller to develop anything the commission develops something i was hoping that the controller's office would be helping staff report on how it is going that's different

than what they appeared to be done how should we measure i that was not a fine question not one i asked a different question to a different answer we're going to have more of this reports on like the technology policy there's stuff in there that is good stuff to do i know we haven't done it i have a pretty good idea this is a good thing we should do and if there's something to get it moving what is it if it's a bad idea let's change our mind but there ought to be that kind of reporting and the commission hadn't done to the policy to invent something

new. >> we can work on this and your comments are helpful we're looking this information and we know zero in a little bit better on what you want to see so this is helpful because we're bringing all the policies to you over the year to have the discussion to rise them and strengthen them i think this is really important for staff we're trying to follow. >> good thank you. >> well, that was the idea visually when you 1ugd this it is work. >> president i have a question sort of a general question getting counsel into the scorecard is this done internally and k30ir8 for the residents the responsiveness what's the manufacture for this the question that cca has implemented let's see the rates

and the outreach is an important part of that does some of the customer serve capture that in terms of i need to make a decision or satisfied with my policy is that withincustomer service and i think we can get there can you follow-up and people want to the know what the customer service is and the last time i saw the scorecard the metric was the percentage of answers. >> that's correct. >> not a good measure. >> that's a call center measure. >> in fact, you can call and put them on hold the satisfaction was a much better

picture and okay. >> thank you. >> thank you. >> so the next item we have is recognize of emile cruz their outdoor drumming up a storm so we should get on with the before they come forward i have a resolution to read into the record it whereas the public utilities commission recognizes and mr. cruz as a management in cooperating the efforts of construction and engineering management and contract administration and whereas emphasis tenure under cruz has skillfully overseen the water and power and sewer some of the largest capital improvements in san francisco and whereas mr. cruz has the award-winning

system including the first tunnel under the san francisco bay area and this is the seismic water system and the overall successful program and whereas mr. yours sincerely has created a substantial w50ir78 structure that benefits us for days to come and whereas the san francisco public utilities commission mr. cruz as served as a mentor for engineers and labor interims and guided construction workers to full-time position in the san francisco public utilities commission and whereas mr. cruz is a good neighbor and collaborative helper in the capital improvement community and whereas, his challenges and exercise mr. cruz did a marshall arts with the puck and buying he