procurement and contracting procedures. we have our payroll audit program as well in which we're looking at the mou provisions and trying to make sure that those key provisions are being followed by the departments as they're paying their -- their staff. we're also have our purchase card usage audit program, which is a continuous monitoring program in which we take a p card, which is a purchasing card transactions and trying to see on an ongoing basis whether there are discrepancies and conceptions, and we do issue memos to the departments that we conduct these assessments for. we also have our payment card insurance, pci compliance audit program in which we actually assess whether city contractors do have the right systems and internal controls to make sure that they have secure systems and networks when they are

completing transactions. and cash transactions, inventory asset management, eligibility programs in which we're looking at whether departments are adhering to the correct and proper policies and procedures to ensure that the -- that their recipients are meeting the requirements. we also have our nonprofit organizations audit program which we're looking at some of the key contract terms as well as performance oversight internal controls just to make sure that there's proper accountability. as usual, we're also going to continue on with our cyber security and i.t. governance audit program. this is looking at security controls, security of our networks, doing some pen testings or penetration testings. we will also continue with our usually financial reviews as well as field issuances and we

will follow up at six, 12, and 24 months junctures just to make sure that actions are completed. just to give you some highlights of the other kind of performance audits which are more looking at the effectiveness efficiency of city operations, we are going to be -- actually we're in the survey phase already of the mta capital program and construction divisional audit. as peg mentioned, her shop is doing something more on the notification, whereas on the audit side we're looking on the internal procedures that they have in internal controls. we also have our citywide nonprofit protocol monitoring. we're looking at seven different city audit procedures and internal controls to ensure that they're conducting oversight on the nonprofits.

we have our collection fees just ensure there's proper collection, calculation and impaction of various fees assessed by city departments. just to highlight some of the key capital and construction audits that we'll be doing. as you know, a couple of years to go, we started our expenditures -- our geobond expenditures audits program. last fiscal year, we completed three. this fiscal year, we have completed one, and we'll be completing one later. one is currently in the survey phase, and we hope to issue a third one by the beginning of next fiscal year, so july, august. the ones that we just completed last month on this one is the 2008 clean and safe neighborhood parks. we will be issuing the 2012 parks bond expenditure audit in

the next few weeks and the one that's currently in the survey phase is the 2014 eser expenditures audits. that concludes some of the audits and performance activities for next year. >> we're happy to take any comments or questions on the work plan development process at this time, and i think we also anticipate during this month or next at least one meeting with kristin at a liaison and maybe kristin and brenda together. i'm not sure how you're proposing to do that, but we're going to have a chance to talk with them about any ideas that you want to flow into the work plan. >> do you have a question? >> so regarding the expenditures, the bond fund expenditures audit, i thought that we had agreed not to do two of the same bond. so you did two of the parks bond, right? didn't we have a conversation about trying to spread it out a

little bit? >> no, we did. and actually, the last -- in setting this current fiscal year's work plan, the three that were identified were actually 2008 parks, 2012 parks, 2014 eser, and the other one was the affordable housing. so we did try to spread in terms of the different, we just wanted to -- because we wanted to touch on all of the active bond funds, we did 2008 and 2012 at the same time, but we'll be issuing two different memos for them. >> just for the benefit of the other members, this is kind of a very -- you've seen this before. we usually do it. this is another opportunity to have the material and kind of very basic points of the you -- that you have the opportunity to review this, and there's going to be -- it will be on the actual agenda in another meeting -- formal presentation.

this is kind of a heads up, if you will, just to remind us, these are the -- the highlights that we should be looking at. so if you do have any thoughts, you could float them to kristin who is actually the liaison overseeing the csa. >> i had one quick question, if i might, madam chair. it's just a clarification. it's on slide four, and it is a slide that reflects the cost. so general fund departments, 4.4 million, department of public health, 4.1. and my recollection is -- and maybe it's changed -- that the department of public health is part -- is a general fund funded department. so if that's accurate, are we at 8.5 or general fund just -- and what 4.4 reflects is

general fund departments other than public health? and then, my last question is, human services agency, are they general fund funded? >> your knowledge and memory of the city's budget is excellent. the public health department, the last dollar in to both hospitals and the general fund for them is a general fund dollar. they take a lot, a lot of revenues from many other sources. they're general fund supports on the margin. our work order is taken on the nongeneral fund portion of it, so as a practical matter, the general fund $4.4 million, to us, a whole bunch of departments are general fund departments. police, for example, fire, are the two largest, so we do most of our public safety work under that 4.4 million. and then, the work that we do for the health department is separate. it's a very large work order. the hospitals are huge institutions.

we don't end up spending, you know, a fairly big chunk of the public health department's budget even in a year when we have a fully fleshed out program of audits when the money is returned to them at the end of the year. >> thank you. >> any other comments? >> i just have two comments. [inaudible] >> you broke this down by departments. [inaudible] >> how have you handled something like the current hot topic of accessory units -- [inaudible] >> -- now there's talk about how they're going to stream line -- [inaudible] >> -- it would mean the difference of hundreds of housing units being built in one year, so how does your approach handle something like that. and then, secondly, a question

about the nimbleness of a system like this. obviously, there are infrastructure issues that have to be dealt with at all times. you have issues that come before the board. like, for example, the issues on homelessness, about whether or not people are being discharged from san francisco general after they've been held for some brief period of time and have no place to go to, and what's happening, we're discharging people back out onto the streets. that becomes an issue that becomes very livly in a certain period of time, but it's not something you can predict in a year that this is going to come up. so how do you -- how do you jump the line with something like that? >> one of the great advantages of this model is that we can staff interdepartmental pron

projects meaningfully, so we allocate our costs across a couple of different work orders. so we setup a charge code for it in our system, we track the hours, we make an agreement with the different departments whose areas are touched by that and we're able to allocate or costs across different departments. homelessness is a good example, so again, i think it's a huge strength of this wihich many cities don't have the opportunity to have something like that done. about jumping the line, it's always an interesting problem. one of our auditors used to say, are we a fine dining where you have to have a reservation or a fast-food restaurant where you can walk in and get it?

mostly, we try and plan things carefully so nobody has downtime and the staff are all occupied. we try and keep enough flexibility so we can make enough change and accommodate a change of city services. we do a formal report, and by that period, some projects have dropped down for some reason. the project sponsor wasn't ready or whatever, and we have capacity that we replace it with, and we can make a decision that we're not going to do a priority that's wanted by the leadership. it's really tricky, but we try and take that as a really important working mandate. >> is there some way in which you all coordinate that with the board budget analyst because maybe the board budget analyst is the one who gets tasked fastest to turn something around to provide information for policy making? >> yeah. i mean, they -- we do coordinate with them carefully just so we're not asking resources and time from the

same departments at the same time, so we really work hard on that, coordinating our processes with them. and then, like, they experience the same process with the board of supervisors. they're given a resolution that says what audits they're supposed to do in what order, and sometimes the board changes that, and they have to reshuffle. >> thank you. >> any other comments? thank you for the presentation, and are there any public comments on any of these items? >> sorry and before you get to the end of this agenda items, there's just two more things, d and e. so mark comments on the expenditures audit. e is the public satisfaction survey. good results on this. we had the projects that we talked about last time, which was the raymond kimball playground, and good response,

and we're now in the process of contract negotiation to get that survey underway. if it all goes smoothly, i anticipate wrapping up the contract in the mechanics month or so and -- next month or so and anticipate being able to be in the field in the late summer or fall. again when we meet with kristin, we can meet with her and get any final details before we finalize the contract. >> so let me just add, based on completion we would see the report sometime in the fall? >> right around the end of the calendar year. >> thank you. comments? >> pardon me. i had two comments i wanted to make. one, i think i heard recently there was an up tick in the bond rating for the city and county of san francisco maybe to its highest ever in the history of the city, and i think if that's true, you can confirm, but i think that's a -- a thing to be very happy about because it can lower our

interest costs. >> that's correct, and thank you. so moody's upgraded the city to a triple a rating, which is a notch ahead of where we aare at with s and p and fitch. the city had a triple a rating in the late 80's, which it lost, but hopefully, we'll be able to continue it. >> that's great work. congratulations. lastly, i believe i read that ben has been reappointed as the controller of the city, and i just want to say, i was here before when ed harrington was here, and those are big shoes to fill, and ben and his staff has done that better than anyone i can imagine, so congratulations on that

reappointment, ben. >> let me on behalf of the whole committee offer ben congratulations because this committee really relies heavily on the staffing of his whole department to carry on our work, so thank you, ben, and thank you for the staff. >> one other comment. peg, at the notes of the last meeting, there was a request for an update on unspended funds -- unexpended funds at the may 21st meeting. would that come from you? >> yet. we just finished the projection report to account for all of the expenses through the third quarter, and so we can -- we can send it out right now. >> okay. thank you. >> now i'm going to see if

there are any public comments. >> my name's jerry dradler. i want to commend the committee for their discussion of the allocation of the city services auditor resources. i imagine the budget now is between 50 and $60 million a year. what i've never understood is the disparity in terms of the allocation of audit resources versus performance management. audit resources are allocated bases on a risk-based philosophy, recognizing you have scarce resources, and you allocate them based on where there's the most perceived need or risk. performance management resources are based on a funding source, and if you look at appendix f of the city charter, that's nowhere in the city charter. that's a decision somebody made, and i might think it would be a historical accident

because why are not the performance management resources allocated based on need, and why do the departments who are funding them have a say in how they're spent? because again, it appears to be totally contrary to the intent of appendix f of the city charter. thank you. >> are there any other public comments? seeing none, the meeting is adjourned.

>> good afternoon, everybody. welcome to the tuesday may 22nd meeting of the san francisco public utilities commission. role call, madam secretary.

while you are getting that, i'll let you know that the items 16 through 21 on closed session will not be heard. placed on the june 12th agenda. >> president kwon. [roll call taken] >> we have a quorum. >> item number 3, approval of the minutes of may 8, 2018, discussion first, public comments second and then the motion to approve and vote. that said, any discussion on the minutes? is there any public comment on the minutes of may 8? motion to approve? >> approved.

>> second. >> president kwon: all in favor, ok, approved. item number 4, general public comment. in the jurisdiction and not on the agenda. a speaker card here for mr. chris shutes, welcome. >> thank you. is this on? very good, thank you. good afternoon, chris shuttes with the california sport fishing protection alliance, and long time participant in the hydro electric projects. may 16, my colleagues and i got word a republican congressman from the san joaquin valley had attached an amendment to the appropriations bill to the department of commerce. prohibit the national marine fishery service from virtually any participation in the don

pedro and the graininger projects. last that evening, organizations including c.s.p.a. submitted a letter to the house appropriations committee proposing the amendment. on may 17 it passed in committee. i have a couple of paper copies, someone was supposed to bring more and he has not made it yet. clear in recent filings with the federal regulatory commission, the city and the sfpuc clearly have a stake in the outcomes of the don pedro and the grange licensing proceedings. i hope we can agree that a legislative rider that circumvents environmental laws and protections is not the right way we desire. i request it be on the agenda next meeting and ask the staff

to draw up a resolution for consideration by the commission at that time. i realize it's short notice. however, the appropriations bill for commerce may move to the house floor in early june. and time is of the essence. some colleagues are here today to provide some additional context for now. i will gladly answer any questions. thank very much. >> president kwon: thank you. any questions? may i pass these to the secretary? >> thank you. >> president kwon: thank you very much. mr. drikmeier, peter, welcome. >> thank you, president kwon. and commissioners. peter drikmeyer, the river trust. all aware scott pruitt and the trump administration have waged a war on the environment, and it's something we need to pay attention to. and it's san francisco's values.

i wanted to read you a few figures from a public opinion poll, on san francisco attitude towards water rates and water supplies. and the number one reason that people were much more inclined to support diversifying the water supply was the environment and the question was, or the statement, this proposal will be good for the environment by using other sources of water, less water will be taken from california rivers and more freshwater available to the fish, wildlife and plants that depend on it. and another question recycled water for irrigation and the environment was the number one reason. the more recycled water we use the less we take out of rivers and streams and the scarce water

supplies. good for the fish, plants and wildlife that rely on them. 84% polled felt it was a convincing argument for reliable water supply and having drought-proof water supply, got 73%. so the environment was much higher. so, i want to reiterate what chris requested, which is for the sfpuc to have it on the agenda about taking positions on the valedeo rider. >> president kwon: cindy charles. miss charles, are you here? >> good afternoon, welcome. >> hello. cindy charles, a native from san francisco. for years and years i've been involved in the don pedro and legrange licensing and other issues on the river.

long time conservation chairperson for the golden west women's fly fishers, a signatory to the letter to the house appropriations commission in opposition to a horrible amendment. participation in the relicensing of the don pedro and legrange hydro electric products, excluding the national marine fishery service from continuing the long time scientific work alongside other federal, state and resource agencies is not justified a bit and is extremely wrong. i know my fellow people in san francisco would be deeply disappointed with the large scale roll back of environmental protections and regulations without any public input on such a grand sweeping scale that seems to somehow benefit central valley political interests. such sudden and targeted dismantling of a long established process for dam relicensing is an attack on the

goal of equitable use of water from the river. it is an improper policy change that is totally against the environmental values of san francisco. therefore, i am also requesting that the commission put on the agenda the next meeting and ask staff to draft a resolution of opposition to the amendment for immediate consideration by the commission. thank you very much. >> anne clark. miss clark, are you here? good afternoon. >> good afternoon. i'm vice president, friends, talk very fast. thanks so much for all that you do for our camp mather, wonderful to have the john o'connell students at camp. yours is a terrific program for our city students, our high school city students, and we appreciate it so much. we look forward to seeing you at camp mather and taking time to

be with all the campers. a new corral and horse group will be at mather this year. so, we hope you get some time out to come and enjoy and be with us at camp mather. this year on september 26th we are going to have a friends and family afternoon party on september 26th by friends of camp mather. you'll be gets more notices, put it back in your mind. it's a fun event for little kids and big kids alike and here to tell you i'm embarrassed to tell you about my p.u.c. saga. there was a lot of construction going on in my neighborhood with pg&e and other construction people. i did not pay much attention to my water bill, that's the truth. i just paid the bill. i got a notice from p.u.c. and ignored it. then i got another letter to contact p.u.c. well, i followed up on that one.

it was a nice letter, but it had some points i thought i should pay attention to. and believe me, here i am an environmentallist who was not looking at my water bill. the good news was, i met a p.u.c. water inspector who came to my home. his name was matthew jay brady. he was wonderful. he and i went through my whole house together from top to bottom, explained to me what was going on. it turned out there was one toilet that was not working right and was causing the problem and needed fixing and causing my bill to go up substantially. as i said, i had not paid much attention. the part did -- it was a part that was done, wore for one toilet. did not cost very much and my son fixed the toilet. so, thanks for all the

information, and the terrific walk through my house with matthew. i'm just sharing that with you because there are probably a lot of others of us who don't pay attention but matthew did and you did, and my bill is much less. so, thanks very much. good job to all of you and especially matthew and finally, go warriors. >> what does the camp open? this year? when does the camp open? >> i think there is a preview, harlan, do you know? preview, when john o'connell, i think it's june 6th or something. >> i think it's like a week before, or two weeks before it actually opens. >> right, i'll send you the information. >> ok. >> good, thank you. >> thank you very much. next speaker is barry nelson. mr. nelson.

>> good afternoon. >> thank you, chair kwon and members of the commission. i'm barry nelson speaking for the golden gate salmon association. i would like to talk briefly about the tawalame river rider. golden gate salmon association is an industry association of the entire salmon fishing industry in california. the commercial boats, recreational boats, the charter boats, folks who manufacture retail gear, tribal interests, restaurants and more. headquartered in san francisco and because san francisco bay and the rivers that feed it are the most important salmon runs south of the columbia river. without bay delta salmon, there is no salmon fishing industry in california, pretty simple. and that's an enormously important industry. there are before of our salmon runs really got into trouble a decade ago, $1.4 billion a year,

23,000 jobs spread up and down the whole california coast and up our rivers. it's a remarkably significant industry, but we are, we are here in san francisco for multiple reasons. i was at an event last friday on fisherman's wharf at a fish processing facility with a large group of g.g.s.a. allies, several hundred people, celebrating and san francisco chef, celebrating salmon and working together to restore those salmon runs. great event, but it comes at a really vulnerable moment. our salmon runs are in deep trouble right now. our jobs are in trouble. our industry is in trouble. 2008 and 2009 for those two years, it was illegal to catch a salmon in the state of california. put people out of work up and down the state, especially here in fisherman's wharf. and we are very worried about a potential repeat of that, of the salmon season this year was slashed because of low numbers,

those low numbers are because of two things. it's because of the drought, because we don't always manage our rivers as well as we should. so we need to make progress on every central valley river in order to help the salmon runs recover. that is one of those, and this rider would essentially take the national fishery service, the agency charged with protecting our salmon runs out of of the process. but i would urge you also to think about this as something much larger than just a debate about the future of the tawalame, and even debate of the salmon and fisherman's wharf. if the rider goes, it will encourage other aggressive attacks on the federal energy regulatory commission. a number in recent years. there are about two dozen separate attacks on salmon in congress and in the regulatory agencies right now. those are two dozen separate attacks just on california salmon. this rider passes, especially if

the city is not active in opposition, it will encourage more of those bills to move forward. so, i would urge you to put it on the agenda, to pass a resolution encouraging the board of supervisors to take position in opposition. that i think would help stand up for san francisco history, san francisco industry, and what we all value, thank you. >> president kwon: thank you. any other public comments? general public comments? ok. item number 5, communications. any discussion, commissioners? >> i have discussion. mr. richie, i was noticing your report on the water supply conditions. and the very low snowpack that we had this year. do you anticipate any problems because of that?

>> steve richie, assistant general manager for water. i would not call it a low snowpack, it's less than median, but certainly better than 2015 and i think on par with 2016. so we fully expect the system to fill with runoff, in fact, i think hetchy should be full in another couple weeks. but yes, water bank is full and we expect the other up country reservoirs to fill as well. >> good. >> president kwon: any public comment on item 5? seeing none. other commission business, item 6. >> i have a little levity. somebody sent me this piece, it was in "the chronicle" a few weeks ago, it was the opening day when the giants moved here, so that's 60 years ago. and of course we played the dodgers, and of course they won, but that's not what i wanted to

read to you. so, the city was all flitter about the fact opening day and everybody was planning on going. reported that the san francisco public utilities commission meeting covered 29 items in less than an hour. [laughter] and our president could do that, too. so, that's nice that we are remembered. >> were you the president? 60 years ago. ok. so, thank you, mr. chairman. i did want to thank staff, and then all the folks that were involved in the golden pride awards 2.0, took place last night. i had sent an email to the commission secretary a little

earlier with a group photo, hopefully we'll have a chance to look at that at some point in time. i think the smiles on people's faces is worth 1,000 words. the event i thought was really well received. everyone here was there. and you could just tell that folks that sometimes are not a part of these meetings or a part of these conversations really appreciate being recognized. i thought the one thing that stood out this year over last year, and these things are intended to be organic and to grow and change a little bit, to accommodate everybody's needs, but also through input, there was some incredible production value in the videos and i'm not sure who, who was responsible for that. it was really, really, i have not seen it. we do a lot of recognition events in the city for a lot of different kinds of employees, staff, and executive level

personnel, and i've never seen it really that good, so a kudos to whoever did that. the one thing that was missing at the very end, we had a chance to take a group photo, and carlan and kathy and juliette were not in the photo, steve richie, and so let's be better on that one piece next time. >> we'll photo shop them in. >> the emcee, however, was amazing, president kwon. amazing. >> well, thank you. a person that did not step back when asked who was emcee, but it was an honor to be there, and great, and applaud your vision for it. and harlan, your wife described you as my vanna white. but it was a great image. staff are absolutely terrific. thank you. any other commission business? any public comments?

ok. sf-tv did video yesterday, so video of the whole thing. >> called and let me know that they were responsible for the coverage last night. >> wonderful, thank you. you were on tv. >> kudos. again, oh, all right. >> any public comment for item number 6? ok. so we are now moving to item 7, report of the general manager. >> good afternoon, commissioners. the first item is a cleanpowersf update. barbara hill. >> good afternoon, commissioners. barbara hale. today's cleanpowersf update will cover service to customers, enrollment and regulatory activities. under item 10 later in the agenda, asking you to allow us to rely on calpine to support

our programs. 81,000 accounts. opt-out percentage remains at 3.2%. so, we are retaining 96.8 of the customers that we enroll. the rates continue to exceed the opt-out, over 4,000 businesses receiving 100% renewable through the program. everything is moving smoothly. ahead to the july auto enrollment, mailing the enrollment notices for july 2018 enrollment. that will increase the customer count to about 105,000 accounts. adding mostly commercial accounts. seven customers so far have opted out now that we have begun the enrollment process. we are starting to see some modest opt-outs. regulatory activities, specifically the power charge and difference adjustment or exit fee and the customer choice

report. on the power charge and difference adjustment, hearings have concluded at the california public utilities commission and we are working with the city attorney and with our colleagues in the trade association, cal c.c.a., preparing our briefs in the case. those briefs are due in june. we expect a proposed decision from the assigned administrative law judge to be published for comment in august. so, we are going to have kind of a quiet period here soon while on that case, while the judge drafts their, his proposal for the commission's consideration. as i reported earlier to you, the california p.u.c. staff published a report on customer choice. they are referring to it as the green book. they did that on may 3. it's reported in "chronicle" and other publications. we'll be meeting with the p.u.c. staff to discuss the report

tomorrow. raises questions about how the state will achieve its affordability, decarbonization and reliability objectives with the increased choice that is occurring in the electric market, and specifically, it raises fears that customers choosing to take service from c.c.a.s and customers choosing to generate their own power, like through rooftop solar, are going to compromise these objectives of affordability, reliability, and decarbonization. says there's no plan for mitigating the outcomes. does not discuss how the role of the california p.u.c. itself could or should change in the face of the changes that they are anticipating, and offers no solutions. flagging the need for unspecified regulatory and legislative change. the california p.u.c. set a deadline for comment of

june 11th on that report. and they scheduled a legislative style hearing, referred to them, for june 22nd. you can anticipate that will be very active, both in sacramento and here at the california p.u.c. helping to shape the outcome of the dialogue that the california p.u.c. has opened. with that, i'll take any questions if you have them. thank you. public comment? >> hetch hetchy quarterly report, dan wade. >> mr. wade, how are you? >> doing well, thank you, president kwon. good afternoon. dan wade, capital, water capital projects and programs director. today update on the hetchy

capital improvement projects for the period from january 1st through march of 2018. but also like to emphasize some of the work that started in march and is ongoing, with respect to the moccasin emergency. as you know, march 22, 2018, hetch hetchy water and power at moccasin experienced excessive rainfall and subsequent flash flooding, floodwaters continuing volume debris, sendment, downed trees and logs. and this flash flooding has serious detrimental effect on the assets, including moccasin reservoir and adjacent areas, as well as priest reservoir. as you know, sfpuc declared emergency on march 23 and clean-up efforts and emergency repairs were immediately started to restore water delivery to the city. i would like to just show you a couple of photos, i know steve

richie showed some photos right just after the event, but this is a photo that shows the floodwaters near their peak at about 1:40 in the afternoon of march 22, and what you are looking at there is the dam over on the left side, with the floodwaters within about a foot of the crest of the dam. which is something that you really you never want to have happen with a dam because overtopping is something that would be, that we want to completely avoid. and so at that point, and after seeing seepage on the downstream face of the dam, as you know, an emergency evacuation order went into effect and downstream folks were evacuated. on the right side, the floodwaters are actually going through two spillways, one is the main spillway, which is kind

of in the center of the photo, where you kind of see the water going off a cliff and then on the far right is the auxiliary spillway, built in the 1980s, to be able to provide additional spillway capacity. this photo shows the seepage that was emanating from the downstream face of the dam during the event. and this was another major concern during that event because we never want to see dirty water coming out of a dam. that could indicate internal erosion. since that time, we have done some investigations. we don't think there was internal erosion in the sense a dam safety issue, we think the dirty water was from the reservoir. this is the upstream diversion dam that diverts creek flows

around moccasin reservoir, an intake upstream of this structure that allows creek flows under normal operation to say bypass the reservoir and keep the hetch hetchy potable water isolated from the creek flows. in this event of course we had a major amount of debris come downstream and clog that diversion pipe and then the dam essentially overtopped and creek flows did go into the reservoir, which resulted in the emergency declaration. now, immediately after the event, hetch hetchy water and power crews, as well as contractors hired by the sfpuc went to work, they worked through the night on march 22, and through the next several weeks, 24/7, essentially, to clear debris, reestablish flows through the diversion. this is the removal of debris

from behind the moccasin, diversion dam, and on march 24, which is saturday, able to reestablish flows through the conduit, so the flows bypassed the reservoir and the facility was functioning once again, but there was major damage to this facility that i'll show you in just a moment. this is what moccasin reservoir looks like now. you see there's not a reservoir there. it's drained until such time sfpuc in consultation with the california division of dams is satisfied that interim measures are in place to safely operate the dam and the pertinent facilities associated with the team. the d.s.o.d. has told us that they actually want to take jurisdiction of the diversion dam as well because they see that as a facility to the main dam. currently the hetch hetchy potable water flow is discharged

directly from the moccasin powerhouse, you see off in the distance and fed directly to a bypass pipe that feeds to foothill tunnel, feed in turn to the san joaquin pipelines, completely bypassing moccasin reservoir. now, that is important for a number of reasons. one, it's a regulating reservoir, an after bay for the powerhouse and also regulating water reservoir for the water system, so in this condition, our operations folks are concerned about the lack of operational flexibility in case there is a disruption to one of the power generating units. they would have a disruption to flow of water to san francisco and so you wouldn't be able to react and provide water from the reservoir when you have that type of disruption. so, there will be a lack of time, there would be changes in pressure concerns and some in pipelines because you have to have the powerhouse flow exactly

in sync with the pipeline flows and thirdly, we have less control over turbidity. so interim repairs and improvements made by october 1st of this year, so that sfpuc in consultation with the division of safety dams would be comfortable putting the reservoir back in service until longer term improvements can be made. and so i'll just show you some of the damage, this is damage at the toe of the main dam after the waters had receded. this downstream was included flooded, including the fish hatchery. we have a project plan to fix that as well as do some recontouring of the channel and protection berm. this is erosion downstream of the diversion dam, so we are currently doing the design to provide protection of the dam,

potential undercutting of the dam. we would not want the conversion dam to fail for a number of reasons, but primarily it's a water quality protection from the potable water. now we have started investigations and a complete condition assessment, both the dam and the spillways. this is a trench that was excavated to investigate essentially why we believe the seepage was exiting the face of the dam. and what it appears is that there's very pourous materials in the crest of the dam, and the water got as high as it did, the water was able to pour over the concrete core wall which is buried in the dam. the top of the core wall is four feet from the crest, so the water essentially went right off the top of the core wall through the porous materials and exited

the face of the dam. this is more of that investigation on the face of the dam looking at some of the fines that washed through. and so what are the next steps? we'll continue the debris removal and clean-up, and repairs. we'll continue evaluation and analysis of the dam and spillways. dsod has requested and they are requiring a complete top to bottom condition assessment of not only the dam but all the facilities. reevaluating the hydrology. issued some small construction contracts but we plan to issue a couple more for interim repairs in 2018. and then we need to assess the longer term needs and address funding needs, both for the interim repairs and the longer term needs. and so meanwhile, back at the ranch, still trying to get other work done.

the team has obviously had a lot of work to do to address moccasin emergency, but we are moving forward with the mountain tunnel and for repairs. we did open bids earlier this year and we anticipate notice to proceed for the interim repairs, this is a second phase of lining repairs that would take place starting this year with the construction contract and into next year. and then for the longer term project, we've started the environmental documentation, and we have completed 35% design. we have met with a technical advisory panel. we will meet with the management oversight committee in a couple of weeks. and the -- this project is moving forward. you can see the lining repairs and contact ground planned as well as what was done in 2017 as part of the interim repairs and what's planned for the 2019 repairs.

and we did recently complete the new shops and office building at moccasin. this is a fantastic facility. fortunately, set back enough from the creek it did not get flooded. some other buildings that are lower at moccasin did get flooded, but this one stayed high and dry and it's a beautiful new facility and will serve our operations well. lastly, i would like to say although you did approve the moccasin pinstock rehabilitation contract earlier meeting this year, we have decided to cancel the contract because of the moccasin emergency. additional constraints on the system that really need to take precedent over this particular contract, and so our plan is once the moccasin facility is back in working order, we would go back and rebid this contract at a later date. with that, i would be happy to take any questions.

>> dan, on the mountain tunnel repairs, you referred to interim repairs and now that we are focussed on the repair in place option for that facility, what is the meaning of interim? >> so, the meaning is that there are significant voids in the liner that need to be repaired. it's going to be several years before we are able to do, you know, start the repairs for the long-term project. and so interim repairs that are urgent, that should be taken care of and addressed prior to the long-term project. so, these are larger voids in the liner where some of the liner has broken out. overall, the condition of the liner is very good, but there are certain, you know, portions that need to be addressed and -- >> is that work going to be replaced with the permanent repairs? >> no, no, this -- this work,

this will become permanent. so, we are not going to redo it. the sections of tunnel that are addressed with the interim repairs, will be part of the permanent fix. >> so they are interim but really permanent. >> interim to permanent. so, critical portions of the tunnel where there was more, there were more issues in these portions of the tunnel. >> i got the logic, sounds like -- these are the highest priority repairs that have to be made. i was just referring to, second, my mind is what's interim about this, i thought we had gone past that. >> yep. >> but also i think where you are getting it from is that when we looked at the bypass, we talk about interim. and so -- and so -- >> made sense back then, i was not sure that terminology made sense today. yep. >> ok. thank you. >> any public comment on this item? 7b.

ok. 7c. >> the next item is a quarterly audit and performance review, nancy holm. >> good afternoon. >> good afternoon, president, commissioners, deputy chief financial officers for insurance and financial services. today i'm presenting the third quarter audit and performance report for quarter three for 2017-18. in quarter 3, 37 projects in total, of which 16 completed, and 12 were in progress. three audits began in the past quarter, the pacific gas and electric interconnection cost audit, and two franchise fee audits and years 15, 16 and

possibly 17. objective of the latter two audits to determine whether the franchise p.u.c. payments were properly calculated and remitted according to contract agreement terms with the city and county of san francisco to share example of what the fees may look like, about 2.2 million collectively that the city collected in 2014. four audits or projects completed. include these listed here, first one is the omb audit for federal grants. secondly, self-certification for nerc cip compliance monitoring, by the hetch hetchy staff for reliability standards. third, an audit of the sewer system improvement program, planning and preconstruction activities, contracted auditor. and lastly, audit of the

wholesale revenue requirement, statement of balancing account fiscal year 16-17. this quarter's highlighted audit performed by the city auditor, planning and preconstruction cost activities. objective to evaluate the preconstruction process to determine whether internal processes were defined, effective and complied to. the recommendations made were to develop written project development and risk management policies and procedures, insure adherence, and perform and document construction project reviews. management partially and fully agreed to all recommendations. for our current quarter outlook in q4, expecting to complete the city-wide fleet management audit that our agency is participating

in, as well as finances, annual fiscal inventory, as part of year end activities. upcoming audits, compliance assessment for 16-17, and biannual self-audit for 16-17, scheduling coordinators audit, and another city services auditor review of lease royalties, administration, for oliver da silva incorporated. lastly, this is final table here, highlight our performance with current outstanding audits and recommendations. as of q3, we had 29 open audit recommendation, representing 87% completion rate. of the figure, there are three audits that also remain open as well. we did close the go solar s.f. rebate this past quarter. a lot of the recommendations that are outstanding currently right now are due to the