noe. noe. noe valley valley. >> good afternoon, ladies and gentlemen. i'd like to call this meeting of the san francisco public utility commission to order. it's thursday, february 27th. madam secretary, will you please call the roll. [ roll call. ] >> clerk: and president kwon is excused today, and we have a quorum. thank you very much. the next item is the approval of the meeting minutes of february 13. commissioners? >> move to approve. >> move to approve, and is there a second? >> second. >> is there any public comment on the meeting minutes?

seeing none, public comment is closed. can i have a -- all in -- >> i have one speaker card. can i have peter dreickmeyer, please. good afternoon. >> gash, commissioners. thank you for the opportunity to comment. when i was interviewed for a job with the tuluomne river trust, over ten years ago, i was asked how would you handle folks that think conservation is not a good thing, because it's not growth? i said we need to focus on water conservation because it affects the environment.

the environmental community approved the seismic upgrade, but opposed the 12 million gallons diverting from the tuluomne river. on the first day, we said we don't want to get this bogged down in a huge debate. we'd like to meet and see if this things have legs. we met dozens of times, and that was what they proposed at capping water sales at 2.5 mpg. we greed to that and started moving forward, and we all started working together to conserve water. we figured that the water agencies can provide the how through rebaits and other programs, and the environmental community could provide the why, because polls show that the number one motivator for people to conserve water is to

protect the environment. so back in 2008, demand projections for this year were 285 mgd. it was capped at 265. before the drought kicked in, 273. we were tremendously successful, but people ask me, did that conservation helped the environment? i say no it didn't help it at all during the drought, because sfpuc held onto any water it could. it only released the base flows, so the flows were the same regardless of were people conserved or not. we had three years in storage at the height of the drought versus two, but it didn't benefit the environment. and last year, there was so much water, the sfpuc had the rights to capture over three million acre feet, enough water to last 12 years for the whole surface territory, and it got dumped. water was flowing down for the maximum amount for months and months, which wasn't a bad

thing, but that water could have been apportioned over the years of drought and had a real benefit. i think you're facing a real pr crisis. because when they're hearing their conservation doesn't benefit the environment, they're going to be outraged. people think they're doing it for the environment, and especially if we're asking them to conserve water and to drink advanced pureified water and groundwater gremt, they' groundwater, they're going to say no. >> thank you, pete for being here. any other public comment? hearing none, public comment is now closed. next item, madam clerk. >> item five is communications. >> commissioners? madam secretary, next item, please. >> any public comment on communications. >> is there any public comment on the communications? hearing none, public comment is now closed. madam secretary, next item, please. >> item six is other commission

business. >> colleagues, yes, commissioner moran? >> mr. president, i'd just like to comment that earlier today, we were able to meet out at the -- out at the clinical country club -- >> call it the country club starting now. >> out at the country club, and probably one of the finest memberships of any country club i've ever seen, but to celebrate the programs out there, the mario delatorre training center, and it was a nice recognition of that program. but i couldn't also but help that think that's something you'd been working on a great deal, we've been hearing about that over the years, how important it is to you and the city, so i just wanted to say something about that. >> i want to thank my fellow

commissioners. i think as a matter of personal privilege, i'm going to piggyback on those comments and thampg you, general manager kelly, for all of your support for being out there today. i don't see a sun burn, but i got one. and i think the mayor hit the nail on the head. he clearly understands that having these departments work together on these citywide priorities, it is a difficult task, and i think the public utilities commission executive staff and staff have been outstanding. i want to think massuod and brian and julia ellis for also making the time to go out there. i know they're doing that. it wasn't an agency event per se, but that's our golf course. that's a puc golf course. that's san francisco's golf course, and anybody out there who gets an opportunity to hear not us speak, but that one particular individual, edgar wilson, that's really what this is about.

this is about making sure that we're thoughtful and deliberate when it comes to that bottom line, and that bottom line is san franciscans, folks that come from communities that are under served and under represented. he was amazing, and i think if you didn't understand before you got there, after that, you definitely understood. and i just want to flag an item for you. because workforce development and career pathway modelling is part of our community benefits, i'm getting a lot of calls from other agencies that we work with outside the state about our community benefits modelling, and i think it's an opportunity to shout out, julia ellis, agm ellis and her staff, because the way we do business at the puc is attracting a lot of attention, not justin's the state, but outside the state, so i think we'll hear more from that. so again, commissioner moran, thank you for your comments. colleagues? is there any public comment on

this item? seeing no public comment, public comment is now closed. madam secretary, item seven, please. >> item seven is the community quarterly report. >> good afternoon, wendy. >> good afternoon. my name is wendy aragon. i was the outgoing citizens advisory committee chair. i have been here the last four years, giving my report about the cac. so just a quick update. i am leaving this seat with every single seat on the cac filled for the first time in i don't know how long. i want to welcome some new members, jim mccuen, representing district four, jasmine conrad, representing district seven, maggie thomas, representing our environmental groups, mark kang, representing engineering and finance, and also the puc, so it's the first

time. and i'm really happy to have been serving this agency for the last four years. i hope to continue on as a cac member. but i feel really lucky that i got to be part of this great agency and like, be part of the leadership. >> wendy, stay up here for a minute. >> i also wanted to introduce sa amy zock, and she is our newly elected cac chair. >> congratulations. >> hi, everyone. it's so good to officially meet all of you. as wendy mentioned, i am amy zock, and i'm the newly elected chair of the cac. i've been on the cac since about 2015, appointed by supervisor tang to district four, and just moved to district three and appointed by supervisor peskin. i'm very glad to be back and take on this new leadership opportunity. prior to the chair's position, i served as the cac's secretary

and waste water chair, and i'm very thrilled to take on this next leadership opportunity. i'm proud to announce that our district eight representative has been elected to the position of secretary, and our district six representative has been elected to vice chair. i'm very excited to work with commission, general staff, and the cac, and i am thrilled wendy is leaving behind some large hsus to fill. and i have a lot to learn, but i'm very excited for this opportunity. going into this new role, i'm really looking forward to focus on building public support for infrastructure, grants, investments, incentives, and carrie forward the cac's commitment on lifting up voices of those impacted by the puc. i'm looking forward to getting to know each of you. >> wendy, can you step back up to the microphone?

so i saw supervisor peskin's announcement on twitter. i don't know that i am other ae w -- amy was appointed via twitter, but i'm looking for something about you. i think we all share that you have shown commitment and drive. i've been here eight years, but i haven't really seen it before, wendy. you've made us all look better, you've made us all look proud, but if there's no objection, i'd like to see some kind of a resolution or recognition prepared for this commission for all of us to execute to recognize wendy for her amazing and extraordinary public service as chair, and you were a longtime chair, and you were very aggressive walking the hauls, banging on people, making them fill those seats. i know there's a lot more that you did than that, but it's never easy to call the truth to power, and i'd like to recognize that. colleagues? >> i'd like to echo those

comments and just really express appreciation for everything that you've done, not only for the cac but for the commission and the city of san francisco. your leadership has really been remarkable. filling the seats is just the low bar piece of it. all the resolutions that you've brought before us, everything from advocating for clean energy to all of the work and really looking under the hood and taking projects and programs where they need to go and advocating on behalf the all the underrepresented and all the other citizens of san francisco, i just really want to express deep appreciation for your leadership and service. >> i just want people to know that serving on a citizens advisory committee is a job, you put a lot of love into it, you volunteer time. we largely go unseen, and i wanted toic ma sure that the cac's weren't unseen, and to get people more involved. >> and you've done a very successful job on that, so thank you. >> thank you. >> any other comments? >> yeah. i would like to, first of all,

thank you for four years that you've served as the chair. and it's -- you know, from general manager of the agency, i really appreciate a lot of the initiatives that were somewhat challenging. i think the one was the, you know, cca, cleanpowersf. it was very challenging during your time, and we actually worked together and actually made it happen. the other one that was definitely challenging is groundwater, and the support of groundwater, and i think that has been very helpful. and then, the other one that most people don't know about is the southeast community facility where you actually had these joint meetings to really help us bolster that commission because they are the point people that represent the community in which we have our southeast community facility, which we're planning to spend $2 billion in that community. and so with that, i really appreciate your leadership and

effort, you know, and also, as we mentioned, to fill those 17 seats is just amazing. that is something where you've been walking down the halls and talking to the supervisors and getting them to fill the positions. so amy, you do have some big hs h shoes to fill, so she's no longer the chair, but she's still part of the 17 members, the committee, so is you to much. >> i have full confidence in amy, and that she'll develop her own shoes to fill at some point. >> and wendy, i would like to say, don't stray too far from us. >> look for an invitation, right, because we're going to do something for her. >> mr. president, you had mentioned some kind of resolution. i don't think in the neighborhood of associations, we don't actually have to have a formal resolution to support that.

know that you have our thanks, and there should be some paper coming one of these days. >> thank you very much, wendy. is there any public comment on this item? please, nicole? good afternoon. >> good afternoon, commissioners. nicole sandkulla. i am also a member of the cac for those of you that can't remember that, and i've had the luxury of that position since i came into the ceo position. and in that time, amy -- or we know know -- wendy came on as chair around the same time, so we were both fairly new. and the transition that she has made as many of you have commented within the cac has been extraordinary. i think she has brought the energy and the strength within the cac to deal with the difficult issues, so work cooperatively with the staff to come and have them speak about critical issues to the cac so

we can provide insight. i know in the past that has not always been a helpful relationship, and i think in this instance it has worked very well due to wendy's leadership on that, and i, too, want to express my appreciation to wendy for that. it's made it a pleasure to be part of the cac. they have mentioned several times that i've here at every commission meeting, and i often don't get up and speak during the cac report, and i wanted to make sure on this extraordinary day to commend amy -- or wendy for her role and will congratulate amy on her new role, so thank you. >> thank you very much. is there any other public comment on this item? hearing none, public comment is now closed. next item, madam secretary. my favorite general manager's report. >> yes, item eight is a general manager's report. >> well, thank you for that. the first item is cleanpowersf update, michael hines.

>> good afternoon, commissioners. michael himes, director, cleanpowersf. i've got a brief report for you this afternoon. as we always ensure you know, cleanpowersf continues to successfully serve its enrolled customers with cleaner and affordable electricity supply. as of this week, cleanpowersf is serving approximately 8500 -- 85,500 accounts, excuse me. the program's cumulative opt out rate since launch is 3.2%. that's a 96.8 participation rate. sometimes it's good to look at the glad half full side of things. 4.1% of our accounts have opted up to our 100% renewable super green product, and i think we

mechanicsed this last meeting, but just as a reminder, we're conducting our next quarterly enrollment in april. that's for customers that have been signed up since january , and of course we're gearing up for our next big phase in july. so with respect to that, as emg hill reported last week, the board adopted and the mayor signed the power supply and bank credit contracting authority in late january . that ordinance become effective on monday. and at the last commission meeting, you adopted a resolution affirming that the conditions necessary to execute contracts have been met and authorized the general manager to move forward with all actions necessary to complete enrollment in clean power lean. so the elements are coming together for a july enrollment and to move forward with the citywide enrollment in cleanpowersf. and towards that end, staff is

finalizing the power supply contracts and our bank contract facility agreement for execution, and we intend to request best and final offers from suppliers next week. we're also working on our enrollment plan, taking into consideration the availability renewable energy supply to support the enrolled customers while meeting our program affordablity and power content objectives. and we're preparing all of the materials related to the enrollment, noticing our customers, program collateral, and we're working on our outreach program for the next phases. last, but not least, we're also evaluating a potential rate action to go into effect on or around july 1st, and this is to ensure that the program is meeting its -- its stated

phasing policies and spurred in part by updated rates. normally, pg&e updates its rates on january 1, but it was delayed this year. so on february 16th, pg&e issued its new power generation rates, and the pcia. so effective march 1st, pg&e will be increasing the pcia by approximately 11 to 14%. this is actually a little bit lower than we had been anticipating and projecting in our budget, and they're also increasing their generation rates by about 8%, and this is actually higher than we were anticipating. what these changes mean in the near term is that cleanpowersf customers will see even lower bills than if we were pg&e customers. we will come back, as we always do, and provide results on all of the work that we're

conducting right now during the commission meetings in march. and with that, i'm happy to take any questions. >> colleagues? hearing no questions, are there any public comment on this particular item in the general manager's report? hearing none, public comment is closed. next item? >> the next item is hhe program improvement quarterly report, dan waite. >> good afternoon, commissioners. dan wad 2ked, director of water capitals and programs. today, i'm presenting you the quarterly update august 1st through october 31st, and i'd just like to start with the variances that are in the report. i've gone over most of these

before, but just a review for the san francisco pipeline rehabilitation project, we are about 20 months behind schedule to finish the safe entry assessment for those pipelines. on the lower tray aqueduct, we did have a matter that needed to be resolved with the bureau of land management. that was resolved, and the project is moving forward. on the other power house projects, we did add the governor at home, and so we did add the kirkwood, so there's a variance on the cost of those projects. on the markets and pen stocks, we did have a delay to the project due to a rebid that was necessary. we had to reject all bids the first time around back in october. we did receive new bids in december decemb december, and you may recall we just awarded that contract in january , so that project is moving forward. on the microwave system, there was delay at the end of the

system to resolve some equipment challenges. [ inaudible ] -- with the capital plan, so we've broken that larger project up into several smaller projects, and so we'll phase that out over time. and then, cherry dam and moc moccasin, i'm going to talk about in my regular slides. so if we can go to the slides, please, i'd just like to start out by letting you know that we are moving forward on the interim repairs, the 2018 interim repairs for mountain tunnel. this is a continuation of the urgent repairs that were started in 2017 to keep the tunnel -- operational tunnel, while we continue to design for the long-term project. so the design has been completed, the project was put out to bid, and actually, we recently received bids, and we're looking to award that project very soon.

and then, as you know, also, the mountain tunnel improvements project is a long-term project that'll go over a five-year period. we're moving forward on the desig design. and last quarter, we did make a decision to select the rehabilitate alternative with downstream control, and he gave you a presentation back in november on that. so just a status update is that we're moving forward, and we expect to be able to continue moving forward with the ceqa process expeditiously. on the cherry dam outlet works rehabilitation, i have some great progress to report today. this slide shows the interior of the outlet works in that butterfly, one of the butterfly valves that i reported on last december when it was discovered that there was some significant cracks and corrosion issues, all of those repairs were made

in december and january , and so now we're able to fully rely on those valves, and we're able to isolate the reservoir from the downstream scope of the project. these photos show the recent removal on the left-hand side of the slide, the old fixed cone valves from the 1950's, and then, the arrival on-site of the new fixed cone valves, which were larger both in length and diameter. they arrived from germany. they were shipped and came across country in the winter. just getting them here was quite a task. and in fact, just this last weekend, in very cold weather, the team worked very hard and very long hours to get these valves installed while they had a weather window to do so, and

so they did a fantastic job. the valves are installed now, which means that the reservoir will be able to operate at full throttle very shortly. they're finishing up electric work, promable loggrammable lo controls work. we expect all that to be done in march. for the warm rue project, there's a design build contract that's in place. the notice to proceed was in the last quarter, in october, and the project's on schedule to issue ntp later this year. and then, i mentioned for the lower cherry aqueduct reliability project, which is a rehabilitation of the aqueduct to increase reliability, the

right-of-way maps were approved by the bureau of land management, so we're able to move forward. this consists of things such as emergency debris removal and interim cleaning, as well as immersion instrumentation and bay repairs. the moccasin new shops and building is essentially at the completion phase. there's a few issues being worked out to achieve the lead certification and commissioning, but we do expect folks to be able to move into this facility next month. for the home power house rehabilitation in kirkwood, oil containment project, their project was awarded to big valley electric, and we expect ntp within the next quarter. and finally, the moccasin pen stock rehabilitation project is

moving forward. i mentioned that we had to bid it twice, but the second time was successful, and we awarded the contract, and we expect ntp very soon. and this project is to replace critical sections of the pen stock that have been corroded and to provide additional access improvements as well as repair of some of the concrete anchors and saddle supports of the pen stock itself, and with that, i'd be happy to take any questions. >> colleagues? >> overall, the projects that are running behind. >> yes. >> are they -- i sort of perused this. are they running even more behind? >> well, actually, most of the ones that i mentioned today i've been talking about for several quarters, and we've had some very positive movement forward on those projects, and so some of those issues that were dragging those projects down have been resolved. what we've done is we've

planned for these variances in the current capital improvement, the new ten-year cip, and so at the end of this fiscal year, we will rebaseline all of these projects, and we'll show the new baselines starting in september. >> i see. thank you. >> thank you. >> commissioner? >> i'd just like to take advantage of the presentation to ask harlan to extend to the administrator our appreciation for the new screens that we have here. we can actually see what is being presented to us, which is rather refreshing, and i personally appreciate that. >> also, we actually can see the colors on here, and yeah. i'm sure we're going to receive a bill. >> well, i'm glad to here that. in fact, i want to credit robin seslaw, who's our fantastic award winning in-house photographer, so she'll be

happy to know you can actually see the colors in the photos. >> any otherment coulds, commissioners? this is item 8 b. b. is there any public comment on item 8-b? seeing none, public comment is closed. next item is quarterly comment and performance review, nancy hong. >> good afternoon, commissioners. my name is nancy hom. today i'm happy to present to you the quarterly performance report for our current fiscal year. our agency finished the second quarter with 34 projects in total? and of this figure, 12 were completed and ten were in progress. the audits that began in d 2 --

[ inaudible ] -- for fiscal year 16-17, and also a political funds compliance analysis for fiscal year 15-16. the randomly selected vendor was alan williams consulting, and the auditor that is performing this is the city auditor. in q-2, we finished seven audits. they're listed here, and they include one for the association of bay area governments, proposition 84 grant audit. here, they reviewed two grants that we received. 1.4 million to partially fund the regional groundwater storage and 200,000 to partially fund the large landscape water conservation program. in november , we issued the

audited financial statements for prior fiscal year 16-17 for each of our enterprises, east water, hetch hetchy water, as well as create a green power audit for 2016. this quarter highlighted audit is the 2016 green e verification audits. it's a self-certification that was completed internally and aims to ensure that renewable energy meets the environmental and consumer protection standards. the completed annual verification report is published by the center for resource solutions, lists all participating utilities and provides transparent information to customers. the certification reviewed cleanpowersf's super green energy that was sold in calendar year 2016, and our audit and compliance team

ensured that energy purchased met the customers' demand. our internal certification concluded that there were no material misstatements in the amounts provided and that all super green customer statements selected for testing matched our internal records. in currently quarter three, as ending march 31, we're expected to complete the sipping wingle for federal grants, and then also a city services audit of the ssip planning and -- for planning and preconstruction activities. up coming audited include the pg&e up coming franchising audit. our last discussion, management debuted a detailed report to provide more insight into open recommendations, and this year,

we expanded the report to include each audit or recommendation that has remained open since the issuance date. to date, we currently have open 30 audit recommendations and this reflects an 87% completion rate. we currently have only four audits open at current. we closed in q-2 four audits, including the water inventory management audit. we closed an additional four recommendations as well from the waste water recommendation audit. so our staff will continue to work towards the closure of the remaining 30 open audit recommendations through the course of the fiscal year and beyond. so with that, this concludes my update for today. thank you. >> colleagues, any comments or questions? >> one comment of appreciation. i think that last slide with the update of how we're doing on actually implementing changes and responding to other

issues, i think is very important not only for us keeping track of stuff but also to help the public understand that they aren't just words, they are translated to actions. >> thank you. it definitely is the hard work of staff. >> right. i wanted to thank you for that, because that's what we had requested, and i'm happy to see it in motion. >> thank you, nancy, anything else. is there any public comment on this item of the general manager's report? seeing none, public comment is now closed. next item, please. >> next item is quarterly budget status report, charles pearl. >> good afternoon, charles pearl. deputy chief financial officer? i have the pleasure of sharing

with you our quarterly second quarter information and if i could have the slides, please. these transactions that are in front of you are through december 31 of 2017. i wanted to let you know we've used this information as a part of our budget setting that we had in january , as well as included in your budget approvals in february . they've been included in our rate setting, and rate projections, as well as the financial plan updates, so we typically use the information through december. but just quickly here in terms of observations through december, much of what you see is very similar to what you saw in the first quarter through september except with that we have been selling more water. so you'll see in terms of the water sale revenue increase of

what is noted here, about $40 million combined retail and wholesale sales, that's up about $14 million from what you saw in september. the other changes that you see here, in terms of revenue variances are about what we showed you from the first quarter. the -- just one note, in terms of the power sale revenue, reduction as compared to budget, just want to let you know, we have an offsetting cost savings, so that doesn't affect the enterprise negatively. and then in terms of clean power, we are projecting those sales to come in at budget. all financial policy and reserve targets are projected to have -- to be met by the end of the year. in terms of water variances, i noted the biggest variance here is we're just selling more water. we have retail sales that are a little above what we showed you in first quarter, about $4 million more, and then, on the wholesale side, the number that

you see here, that's about 10 million more than what we showed you in the first quarter. again, we had a very dry period, and i think what we're just seeing is additional sales. we'll do our best to keep these numbers updated for you throughout the year, but a much better outlook than what you saw over the last few years, of course. in terms of the operating increase there, the 9.6 million, that's the function of a legal settlement from one of our contractors settling a legal claim. in terms of waste water, we have, again, a positive variance, a little over 8.6 million on the revenue side, again, tied to higher water sales, primarily. on the power side, we have a little weakness on the power sales. that's a part of us not selling

class one energy to one of our irrigation district customers, but beyond that, we have some netting of transactions that we're doing with cal iso, and above that, you'll see some cost settings. those two wash each other out. and then, in terms of clean power, good news to show here. we're projecting revenues to come in as projected with some cost savings to help us out overall. key financial ratios all coming in above your projected or your policy guidance, and one thing of note, the fund balance reserve numbers are all either at or above the projected ratios of between 25 and 6 # will% of our annual operating uses. we have -- we did use this information as part of our budget planning, so you'll see as -- over the next few years, that these percentages will come down for both water and

waste water, back in line with the projection, protected range that you see here. and at the very bottom, again, clean power reserve targets are projected to be met. i'm happy to take any questions. >> commissioners? thank you very much for your report. is there any public comment on item 8-d? hearing none, public comment is now closed. next item, please. >> oh, that concludes my report. >> no activities? well, the only one was brought up, the glenn eagle celebration, which was great, and we've participated with the department of public works and rec and park, and a host of other agencies to really make that education training program a success. definite bely want to thank

you, commission,er for your leadership on that. one of the things we're planning for our budget is to utilize that for our preapprenticeship opportunities to turn into apprenticeship opportunities to turn into journeymen. also, as you know, we are probably -- have the biggest pla, and we're looking for opportunities to bring community folks into the trades, and i think this would be a great opportunity to partner the communities in the bayview, bring them on as 9916 positions, either bring them through the academy, get them in pack and rec or dpw or they can be part of the construction in the community. so i think it's a great opportunity, and i just want to again, thank you for your leadership in pulling all the

departments together and glenn eagle. >> and i appreciate that. i want to thank my colleagues. i want to thank all the commissioners, because without all of us driving it citywide. >> we don't get the keys. >> yeah, so thank you to each and every one of you is there any public comment on the last item on the general manager's report? again, my favorite general manager. hearing none, public comment is now closed. next item, please. >> item nine is the bay area water supply and conservation agency report. >>. >> good afternoon again, commissioners. nicole sandkulla. i have just two items i want to talk about today. the first one is i do understand you're going to get -- the puc will be releasing the official notice for wsup change in early march.

that's based upon the information from your adopted ten-year cip, and we look forward to seeing that and working closely with mr. wade as we review it and look at the details, and that following the 30-day review period, the commission will consider adoption of those changes to scope, schedule, and budget. one item we're really looking forward to is if you'll recall last time, you adopted changes to wsup. in 2016, i brought forward a recommendation that the line item budget at 471 million be essentially reviewed and accounted for with actual financing costs. and in the response to my comments, the puc committed to presenting that accounting at part of the next budget review, which would be the one coming up with this latest update, so

i look forward to seeing that. i believe it'll have some very useful information and certainly important to the overall cost of the wsuc, because it's certainly a big ticket item. secondly, if i could have the slides, please. as i've been doing, and i wanted to give you the latest update on total water use in the service area, it was interesting, as we were listening to the financial budget picture, it's always the other side of the coin that's nice of a budget standpoint when sales increase from this perspective. we're certainly interested in continuing the conservation effort and seeing what's going on. so this shows the picture as of december 2017, with december use being 11% less than it was in december -- than it was in december 2013. it'll be interesting. we're looking to see maybe if that represents what becomes kind of the new norm in our winter use. that remains to be seen as we

continued through this year, but i think it's certainly an impressive number in a service area where you have some of the lowest percapita water use in the state. that's clearly an impressive figure. overall for calendar year 2017, water use was down 17.5%, compared to calendar year 2013. again, pretty significant ongoing savings. hard to know exactly how it's going to rebound. it'll be interesting to see. we're going to continue to track it and certainly incorporate that into any future updated water demand projections. those will get started in about a year, and we'll be able to see what it means for the future. with that, that's my comments. i'm happy to answer any questions you might have. >> thank you, nicole. colleagues? thank you very much for your report. >> thank you. >> is there any public comment on this item? hearing none, public comment is

now closed. madam secretary, will you please summarize the consent calendar. >> all matters here under constitute a consent calendar are considered to be routine by the san francisco public utilities commission and will be acted on by a single vote of the commission. there will be no separate discussion of a separate item, unless one of the commissioners and public requests to remove an item. >> are there any requests to move an item from the consend calendar? >> yes, i'd like to remove 10-c. >> i'll ask is there a move? >> yes. >> is there a second? >> yes. >> are there any public comment on 10 a and b? seeing none, public comment is closed. i'll ask all in favor of

approving those. all opposed? >> next, item 10-c. >> i remember in the early days of our green building program, one of the pieces of lem legislation that we really tried to incorporate and now i think it citywide, is construction and demolition, c and d, i think we called it, a plan for whenever a building was demolished, for any of the reusable parts, and it seems to me in particular with greenhouses, and some of the work we've been doing citywide, i'm wondering what the plans are for -- if you've gotten that far. i know this is just the awarding of the contract, but i would love to hear back if and when this contract is approved, what the plans are for c and d, particularly for that greenhouse site because it seems like this could be some

really value materials that would be reused. >> so i think in our contract specs now, department of the environment requires that we recycle 75% of the materials, and so there will be recycling of the materials that are demoed and hauled off to various recycle areas, and so we generally have that in all of our specifications for any type of demolition work. the site will then be used for the biosolids facility, both as lay-down area and for field offices during construction for biosolids. >> so of the materials, because this seems different than just tearing down a regular building. it seems like it could be a shame just to send them to recycling, whatever that might look like. i'm just wondering if there's an extra effort potentially that we could ask for for them to try and offer the

greenhouses to a nonprofit or to whoever else might want -- >> i think that's kind of difficult to do just because, for example, biosolids, during environmental review, we had to look at central shops, and what -- you know, the potential of reusing central shops because it's a historically significant structure, and so we actually had a consultant look at taking it apart piece by piece, labelling each piece, and hauling it somewhere else, say, the port. we looked at moving it to the port and then trying to reaassemble it all back together. it's quite expensive and time-consuming to do, and that was one of the considerations for central shops during the environmental review. >> the other thing i would point out is that the greenhouses are in a state of disrepair.

they're actually falling down, and so that's the main reason that we're demoing them, so i don't know -- we can actually look and see if there's any parts that or sections that could be utilized, but, i mean, we were very concerned about the folks safety in operating the greenhouses. >> well, that was one of my questions, as well. i assumed that a lot of it was in a state of disrespect. it just feels like an opportunity, probably not with just the greenhouses, but through our demolition that we're doing citywide, but on our properties to be more internal about recycling and reusing whenever possible. >> and the other thing that's challenging, if we were to build greenhouses, which we're planning to look for, you know, the proper space on the plan, we wouldn't build them the way they're built. we would build them totally different.

instead of having a large area of land, we probably would have them sort of stacked and be more efficient, so i would after that, that it's, like, trying to save an 8-track player. >> okay. thank you. >> and while we have this item open, i couldn't help but notice the winning bid fairly startlingly, i wonder how you account for that. we talk to the low bid contractor, and they just really feel they can do it for that price. we went and checked the bids to make sure he hadn't left anything out or maybe he made some different assumptions, but he's confident he can get that work done for that price. >> and also, it's a contractor

that has done a lot of business with us. >> they do have numerous contracts with us right now. >> i'll move the item. >> i'll second. >> is there a second -- and there's a second. is there any public comment on item 10-c. hearing none, public comment is now closed. i'll call the vote. all those in favor? all opposed? thank you. the ayes have it. madam clerk, item 11, please. >> i'd like to move this item. >> is there a second? >> second. >> the motion's been moved and seconded. is there any public comment on this item? hearing none, public comment is now closed. >> oh, public comment. >> oh, sorry. i actually have a card, peter. sorry about that. welcome back. >> peter dreckmeyer, tuluomne

river trust. i think this is a great example of what i spoke about earlier. this is replacing the flower mart. flower mart will continue in a new form, but adding nearly two million square feet of office space, and 204,000 square feet of office space, no housing. now bay area council's going to love all these new jobs, but they won't have the housing element to hide behind. oh, we can't give up any water for the environment because we have to have more housing. plan bay area is projecting the addition of two million people in the area by 2040, and 1.3 million jobs. we're not going to catch up on the jobs-housing imbalance, and in fact, they've shown that over the last few years, the creation of jobs has far out paced housing. this has some interesting information in it. pages six and seven, that retail demand in san francisco is projected to be 85.9 mgd by

2035, 89.9 mgd by 2040. and 2 says, tit says, the abil meet the demand of the retail customers is the ability of ten mgd supplies, in other words, all of this water savings on additional water that we've all been promoting is going to enable future development. none of it's going to the environment. imagine how we feel. for ten years, working with the sfpuc and bsca, and the idea of advanced pureipied water, knowing that we need that water in the river to address that demand, and none of it has gone through the river. sfpuc has fought all of it. so again, i think you're in a really tough position moving forward, because when people realize they're conserving,

they're drinking groundwater. we know what happened last summer when we started blending groundwater with the regional water supply system, the uproar there, people remember it, they're going to add to these jobs, they're going to worsen the congestion, they're going to contribute to the housing crisis, they're not going to go for it. i think you need to be proactive about this. to say look, we don't have enough water to meet this demand and have a healthy ecosystem. they care about the fisherman's whafsh. what i hear from water agencies is development is in the control of other agencies. they zone, they approve developments, we just supply the water, but they're not hearing from you that we're not going to have enough water to have a sustainable environment as well as a sustain ability economy, so thank you.

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south carolina is there a motion? >> move. >> second. >> hearing no public comment, i'll close public comment. madame secretary, next item, please. >> item 14 is other new business. >> that doesn't come -- there is no closed session. >> no. >> ok. is there any other new business? i have one. i want to let you know because president kwon is not in the building right now. he and i spoke up to our last meeting about having a

conversation with mayor farrell about what the agency is up to and how the commissioners feel about various things and that is not for us to meet, but it is for him to have an opportunity to speak with us. so, i anticipate the general manager, executive staff will be meeting with the mayor on some of the hot topics that we have in mind so please look out for that. is there any other commission business? hearing none, this meeting is now -- >> sorry. can i ask -- so -- so that hasn't been scheduled. will we hear before it's scheduled for -- >> absolutely. yeah. and it's kind of one of those things where it's a little unusual. and the term is well under way. so i expect that's why i'm saying i expect it to occur fairly quickly. any public comment on this final item?

hearing none, public comment is closed and this meeting is adjourned.

>> roll call. >> commissioner president kimberly brandon. >> here. >> commissioner vice president willie adams. >> here. >> commissioner doreen woo ho. >> here. >> item two, approval of the minutes for january 30 and february 13, 2018. >> so moved. >> second. >> an any public comment on the minutes? all in favor? aye. >> the minutes from january 30 and february 13 have been approved. >> public comment on executive s