this activity is from today through march we'll prepare one more for year ends again, this is showing all the enterprises have blow budget for wastewater and the power enterprise we've done a good job of walling those for watering is almost zeroed out we have service and other funds we've taking a look at to lower the debt service this shows through the end of march a $29 million shortfall for the water enterprise we've gotten one good news through a legal settlement and salehe check box slide we're abiding by the fund balances requirements so we are expected to meet our fund balance revenue of 15 percentage

of the revenues as well as our debt coverage measurement and have sufficient fund balance to handle this current year variance i'll be happy to answer any questions. >> commissioners. >> any public comment questions? well, mr. general manager >> the next item is water enterprise quarterly update kathy how. >> good afternoon, everyone. commissioners kathy how so i understand that commissioner moran has questions or comments to the quarterly a lass last time for the capital program so i to say we have revised the slightly revised report to be anywhere consistent as the reporting of the wissop reporting quarterly

report next quarter we'll combine local and regional it will be more efficient to produce local i want to highlight for the local conveyance and distribution system is it includes the metric for miles of replacement for the fiscal year so this is similar to what the watering capital is doing in terms of of reporting how many miles they do each fiscal year this fiscal year we're froort $11.9 million for this fiscal year and for the next fiscal year in fiscal year 2016 it is anticipated we'll extend that to 15 miles per year similar is to the wastewater a lot of are cooperation with the paving and the mta work as well as the sewer and water

maintenance replacement. >> thank you, commissioners? >> any public comment? thank you >> the one thing i'm sorry the one thing i want to point out as with increase the miles of sewer and water work we do in the streets we're facing a lot of challenges with you know the ability to get around town the traffic also working and trying to coordinate with the other departments mta is doing bike that path projects we're trying to coordinate but the main thing it get to a lot of people pointed is our priority on our sewer is based on the worse conditions of the sewer may not warner align with all the projects we have to make a choice do we do our projects

that are in those other departments priority when it's not our main priority maybe our second priority but we look at what the cost benefit will be to participate and when we do more participation that means it is less money to do our number one so we have to balance a lot of times we make an educated decision we're going not to do all the projects and when we have you know a break or something like late for example, lake street is we're planning we did one phase and planning on doing another phase in year two but delipidated it is a lot of challenges as we react it up that's a good thing we're replacing the sewers but important challenging given the fact there is so much work being

done in the city it is very, very challenging but we're going to do that. >> only because i have relationship with public works and rec and park and the port in addition to the us here i think the comments i've saw 0 coming from the audience over their desire to see those things are cooperated is maybe a miss perpetration we didn't really understand what was happening ♪ the other departments as well as we articulate we're we're going to do everything we can to coordinate the efforts and the best advertiser of the commission to your point we've meet our obligation that is what i see seeing the tangled web of

public works >> the last miss prospective they have an ordinance day one the challenge is that when we're trying to do multiple utilities on the same street i think most neighborhoods think you'll go in there one time and one contractor and perform the work but if pg&e goes in there the contractor come in when they see the multiple contractor they think we're not coordinating you were just here why is something else here we need to do a better job of explaining we are coordinating but we don't have it under one count the other thing where each one of the utilities they're not in the same place the sewer is in the

middle felt street and the gas is on this side as well and so at&t and tomcast it is difficult to you know extort coordinate that is one of the other challenges. >> thank you next door. >> the next it the update on the water sewer system and quarterly update. >> dan director of the water system program i'm pleased to report on the fiscal year 2014-2015 which covers january 1st through march 31st of this year you are in terms of overall program status it is 87 and a half complete our local program over 99 percent and wissop is

nearly 89 percent completed and so we've made about 10 percent project findings of last year pursue now we're getting on the flat part the typical project of s curve we're going to start seeing less kick notes as we go forward over the next few years weaves made substantial progress ners in terms of the progress the majority of activity is in construction with 14 actual projects in construction with the total cost of nearly 2 points $5 million but we have completed 65 projects which have either been totally completed or construction is completed and then we have to projects preconstruction the alameda creek capture project and the

ground water storage the overall project is on budget of $.67 million and for completion in may with you have a number of accomplishments i want to highlight a couple we were awarded the region storage those are 14 of the 15 we need we'll bid out two additional wells we have land assess issues a separate contractor next year but we completed final administrative close out of the treatment facility within the main contract of the truit u truant planted we completed more than 90 percent of the shut downs a major overall risk going

forward we continue to achieve a level of service on the projects that are going into service and in fact 35 of the 40 projects are achieved their goals we'll continue to see that increase over the next 6 months some of the major projects going into service and the completed construction and our safety record is outstanding i'm pleased to reporter we have zero incidents in the last quarter nevertheless of safety and we are running nearly hundred thousand hours i congratulate the construction teams in the field eaten it is appropriate to acknowledge the program continues to garner recommendation a number of awards and number of other awards we're hoping will come in the next few months.

>> i'd like to show this slide i know it provides angle outstanding recommendation of what we're accomplished the blue projects are contribution projects to the seismic reliability of the project those are transmissions projects a regional water system i'm sure you're aware of we've crossed the earth faults the blue projects represent completed projects we have a handful of projects and 3 out of 4 are arrested o already in service the main one on the peninsula the pipeline update is seismic project will be completed by the

end of 2016 we'll achieve the seismic service and phase 3 of the that i'm that will bring us to hundred percent in a couple of years. >> looking at. >> looking at the map. >> yes. >> it looks like you said a couple of years do you have a target for a hundred completion. >> each year it is may have 2019 all the projects except for 3 are completed by the middle of 2016 so several major projects national anthem the calaveres damn and the capture and the regional ground water storage. >> thank you. >> absolutely. >> and so we have several projects still in preconstruction to capture the design phase is in progress we've initiated the draft

environmental the ground water storage and recovery with the pipelines for that 13 out of the 14 wells and issued a rfp for that for construction and the alameda's creek finish facilities is a sub replacement it is 95 percent complete with design and we a anticipate within this fall we'll curling doing an individual construction cost analysis >> so transitioning to projects that are actually, i want to highlight a few of the major construction promotions to date this is an aerial photo of calaveres damn replacement site and the existing damn is shown on the left hand of the photo a coffer damn while we make the

excavation down stream on the left side and this major excavation immediately down stream the excavated about 7 millions cubic yards looking down street 7 hundred vertical feet of excavation as you can see the new way is starting to take shape in the middle of the photo kind of what i call an upside down l in that photo and that spillway is essentially the new spillway that will allow the probable maximum flood of 50 thousand cubic of flood in a case ever that magnitude i'd like to pointed out in terms of recent construction a few madam chair dots on the spillway from the aerial photo if you look at

those colons those are actually about 25 feet of massive concrete so the structures are starting to take shape those will eventually be more than 45 feet high as well as the separation of the dam and the spillway that is looking at down stream towards the baseline and the concrete is powder in a checker board fashion this is a fixed slab and those powers are in such a manner we void cracking due to heat dispangs while it cures i'd like to mention the service in february which is a major milestone for the program we s had construction challenges late last fall the contractor worked

23w7 as a result we did an desire inspection bits been videotaped and logged i'm happy to see it is not taken out of service since 1966 a few places in the infiltration of the ground water into the tunnel and looked at of co-sponsor recognize we'll address that while we have the opportunity with the contractor being there. >> go back ska can i ask that on more question. >> the calaveres damn you've found follows fossils. >> we've covered them they've over 20 million years old and in

conversation that the science to occur rat those fossils and looking forward to do this in partnership with caltrans. >> that's not why i was asking. >> there's a lot of interest in the public and the fossils and in fact a couple of articles it generates interest. >> this is kind of a close up this next slide a close-up of one of the previous cracks that was logged in 1966 some of those have self-hammered or healed so even though we have issues in 1966 in some cases those issues gone away maybe new issues but rilts small issues and in the case of long-term improvements

is substantially complete and in fact this project give us the ability to generate hundred plus millions a day that is the seismic reliability and have the new treated reservoir in the upper left side of the photo and on april 10th we celebrated this project coagulate into service this next slide shows you on top of that and recognize a few folks including commissioner courtney and in san mateo county the ceo of bosco and, of course our general manager harlan kelly and several the wholesale representatives this is was a great opportunity to celebrate that accomplishment i want to end with the seismic pipeline just wants this is the last

project in the project i mentioned this allows us to get to the 90 percent level prior to this phase 3 of this project later in the program and we expect this program to be done by the end of the year with that i'm available to answer any questions. >> commissioners. >> thank you any questions or comments from the public? seeing none, moving on to the next door the drought update >> steve richie. >> steve richie the general manager for water if i can have the slides i'll dive into the presentation on the drought here's a table i routinely show it modifies each period as time progresses with the utilized

water and the two red arrows is hetch hetchy is up to 70 percent right now an in flow is good because of the precipitation but the water bank is down to 27 percent it is doing its job making sure we are feeding the irrigation district and have the ability to retain water for hetch hetchy we're storing more water up hail because of the way we release water downhill by the crystal strings in san antonio and this is 87 and santa ana debris down those are not by accident we made sure if there's available storage capacitate in the bay area we actually bring excess water under hetch hetchy and store it in our reservoirs

one because the capacitate capacity is available and secondly it an operational need the more water scored locally in case of a disruption of hetch hetchy we have to offer a water with the local treatment plant it is an operational desire we have to assume something will go wrong now come back to crystal privileges our customers have done well, the question accompanies gosh if reservoir is high we it 5 hundred and 80 thousand feet that's the plateau you see below the peaks those are years we get a little bit center water and room for flood control purposes the ability to

store more water am peak in the 87 through 92 we utilized it very heavy to get down to zero 1, 2, 3, 4, 5 consequence years it was a huge tool in the 87, 92 drought this was a good thing we had to use that we had some water in hetch hetchy but when it got to zero hetch hetchy was extremely low that was when commissioner moran's term was here since then it is in good shape except for dry periods it is moving down last year is to low point of hundred and 98 or 7

feet it is heading down to hundred and 5 had thousand feet full expectation we've got down possibly blow hundred and 50 thousand it is doing its job providing the water to the district so we can capture water in hetch hetchy on the precipitation front you'll notice the red lib after flamgd out over the last month and a half to climb from time to time it not a steady climb we're catching up to last year the next slide shows the last thursday the porch next to cottage one has hail we got in expose of one inch in the form of rain and hail and one of the staff took the hail documenting

this it really is happening we noticed the slowed down to hundred and 25 feet last week's storm focused in the 12 new watersheds it is a good storm for san francisco the snow pack slides 3 level bumps we're bulging on the snow pack it melts and hopefully a storm later this week to gives more snow and precipitation in the water shed but the water available to the city sustains at 50 though acre feet because this is not changed that's all we get but the water bank continues to go down we have to meet the needs for any in flow we'll capture it in the hetch hetchy reservoir. >> is that what turned our hair

white. >> laura. >> last january it really kicked in this is the up country precipitation this is the mean bar precipitation you'll notice april up country an average in may because of the storm last week we've gotten more than half of the precipitation for may we'll get more precipitation later this week and technique we'll exceeded the perspiration for may i generally like to early in may but any precipitation by craft in the local water shed it give us almost nothing it was up country that's okay. but .06 for may locally we didn't get precipitation here but able to fill our reservoirs locally and delivers the triangle in

line is what we're doing this year as you can see the levels are blow the 5 year average below last year to people are continuing to conserve that shows good conservation practices by all our customers and to the water savings we're on track to keep ahead of last year's pace that's good i'm going to move on the regulatory actions on may 5th the state water board adapted the production of water by each retailer in the state based on against 2013 bans each agencies per capital use and san francisco has a required reduction for capital use is low

most of wholesale customers are in the tiers of reduction ranging in 8 to 16 percent two of the customers have to save 36 percent but the vast majority of our customers are in the low rates as san francisco a good thing about the achievement of the reduction is the agency not been descriptive is a good thing we commented to the state where had their responsive in fact this process of work with the student board has on a very, very conducive from our prospective and ruled in a good program from the site the state requirement is depict of the agreement we don't have to set a standard for the wholesale customers that's done

for us the wholesale customers complied with the state requirements it is 14 percent statewide that's a good thing going forward and the office of any of us active law will approve in mid-may we'll bring an item to the may 26th meeting to talk about the next page which say we expect to reduce by 10 percent last year by 8 percent we need them to keep that up and make sure they really stay the course in a higher bar and accounts for the growth of san francisco it is not statistic we're growing to make sure we account for that that is a doable thing we will reduce eir gas station by 25

percent for those who don't achieve that the cost of water will be double for increments above that we were talking about cutting off irrigation or dramatically on the grass around the polish temple that people pay attention to we're probably have to turn it off completely have a minimum irrigation schedule to make sure the roots of grass stays in place so we don't have erosion that should be on sewer rates we expect to propose and modify the flow reduction people get credit on the bills to with the 25 cut back is similar to dedicated irrigation accounts we've

considered the possibility of 13u7b9d that entire but more