assistance. four people, whether they're lay people or attorneys. they have some portions of our collections that aren't found elsewhere. one of them, it has to do with the complete history of the california code of regulations. [please stand by for captioner switch]

we have to pay for insurance.

the cost to maintain the software that is library software, the catalog check out, that sort of thing. when you look through this list. if you were to turn to the next page, it shows you what the actual costs were for the last fiscal year born by the law library. you could see the income we received large amount comes from court filing fees, which have declined dramatically in the last 6-7 years, which i will talk about in a second. our income is slightly above our expenses. i thought it was important you see this, normally the supervisors are focused only on the appropriation but we are managing despite the hit to our filing fees.

so if you you turn to the next page, it shows you the dramatic decline in filing fees, state wide since about 2008-2009. it's a terrible drop. but if you look at the next page, you will see that our impact from the drop in filing fees is even worse. over 47% decrease in our fees. and the fees are our main funding and that was set up in 1870 when the law library was basically born. we are all funded by a portion of civil filing fees but for some reason filing fees have dropped, including its impact to the courts, it is certainly affecting the county law libraries who are in the

position of having to fund legal materials year after year but yet our income has been cut almost in half. one of the reasons for the filing fees has been in 2008 there was a uniform filing act, if you are in butte county or san francisco, you will pay the filing fee, it's not locally adjusted. as a result, throughout the state and particularly smaller counties that expanded the numbers of people who cannot afford to pay filing fees, so it expanded the numbers who are entitled to request fee waivers, so that's impacted the amount of filing fees we have. but another important thing that's impacted them, there's other alternative mechanisms,

dispute, such as arbitration. a lot of major companies are using arbitration when they have a dispute. so although those groups may use law library resources to some degree, that has moved things out of the court that would normally contribute to filing fees. so the court is feeling it, and we are feeling it, but if you take a look, it's pretty dramatic and it's a big challenge. the next slide shows you what the next two year proposed budgets are. from the appropriation. you will see there's no change in f.t.e. and there hasn't been in decades. we don't have any capital investments. we have no service charges. in terms of new initiatives, those initiatives are within our law library budget but the major initiative which is a temporary one we are working on is going through materials that were stored to determine which could be salvaged and which

will fit into the law library space. it's quite a large project. our accomplishments, we managed to consolidate our resources. we are always, always looking to cut corners with respect to materials and legal materials. one of the ways we do that, we also participate in a county law library, consortium to try to increase savings. we also have to make hard choices. we had many, many descriptions in the past and we have had to cut them back and we look at every single invoice to decide, is there anything we have that can deal with this. we have worked very hard on this and one of the things we successfully did which diane was responsible for was successfully negotiating

reduced rates for illegal databases, which is huge. and we are expanding our social media outlets, we have created a legal blog in addition to our other outlets. we are continually increasing our legal education programs and we were delighted to be awarded a grant from the p.c. refresh which enabled us to replace computers in the library that were over 10 years old and won't be supported any more by some of the software. in terms of projects and strategic goals we are collaborating with the protocols and efficiency which we are very excited about. we are assessing the condition. the suitability and utility of the 160,000 volumes stored by the city when the city, when

the law library wasn't moved back to city hall after the retrofit. unfortunately less than 10% of that collection would even be able to fit on our shelves so we are going through not only to assess their condition but to assess what we can actually retain. diane and i do this everyday. we have a staff of temporary librarians helping us, and it's quite, for me, as a long-term law librarian, it's a moving and painful experience to see what we aren't going to be able to save but it's exciting to look at what we have. another important project will be conservation cataloging of our rare book collection. all this item in that collection was published in 1491, or maybe 1490 and our

collection is unique and requires some conservation measures and special cataloging so we don't have funds for this but this is a project we are looking towards. and you could imagine 400-500-year-old materials are crispy dry but they have been managed pretty well over the years, because thanks to san francisco's climate. strategic goals continue to facilitate access across san francisco. different people, whether they are of various generations or various education backgrounds including long-time lawyers have different abilities to work with some of the electronic resources. we have materials that are more

complicated for practitioners and we are always seeking to provide what is needed for any person no matter what their need is in san francisco and we are excited increasing partnerships in city departments including the superior court access center and legal departments and expanding with other departments. >> i just want to let you know we are at the 10-minute mark for the presentation. >> okay, thank you. >> i think we have a couple questions. supervisor fewer? > supervisor fewer: thank you very much. you made reference about moving the books from the law library books from brooks hall. i think a year ago there was discussion at the budget committee for the need to develop a plan to move all these books and it sounds like you are working on it everyday but there's a deadline set for december 2018 to complete that task so do you think you will be able to meet that deadline? >> i am proud to say we came up

with a system that's enabled us to move forward much faster than we thought we would. 160,000 volumes of legal books is innumerable amount of dusty boxes and we thought we would have to go through every box but we came up with another method so we feel ahead of the game. once we determine which materials we will be analyzing more closely, that will be a little bit slower, but yes, i'm sure that will be done. > supervisor fewer: great. so you have secured a contract who can move the books for you? >> pardon me? > supervisor fewer: have you secured a contractor who can move the books for you? >> the fact of the matter, what we are hoping, most of the books will need some kind of cleaning and there's a company that does this for the public library. what their process is they would take the books off site, clean them and return them to the law library, we are hoping at that stage of the game that

would be how this would work. > supervisor fewer: thank you very much. >> any other questions? seeing none, i appreciate your presentation. next we are going to hear from the rent board. total budget $8.5 million and again, this is also a unique board because there's no general fund dollars that go into their budget. also from what i can tell have no new f.t.e.'s.

>> thank you, supervisor cohen, supervisors. hopefully our budget is not as complicated as everything else we do. i don't know if it's showing up on your screen. >> before you go further can you introduce yourself? >> robert collins, executive director of the san francisco rent board. so again, thank you for having us here. and let me begin with our mission. i have only six slides, hopefully we can keep it well

under 10 minutes and you can ask any questions you have. the mission of the san francisco rent board is to protect tenants from unjust rent increases and unjust evictions, providing landlords fair rent, efficient and consistent administration of the rent law, to promote the preservation of sound affordable housing and to maintain the ethnic and cultural diversity unique to san francisco. yes it's a very tall mission and we are in the middle of a lot of battles at this time but we hope to keep an agency that is responsive and is a great resource for people. our strategic goal is to deliver that to san franciscans. to process landlord and tenant petitions more effectively. to provide information. to increase collaboration with

other city departments and ensuring san francisco's diverse community can access the department's services. so we expect, we want to process petitions more effectively because we expect increased filings in the future that require more resources to process. as an example, we have the soft story seismic retrofit ordinance which mandates 5,000 buildings be seismic retrofitted. we are working with folks at d.b.i. the buildings that undergo that kind of work will eventually go to the rent board as a pass through for inspection. we are looking at how to process more efficiently. in the past year we have redone the way in which we look at tenant hardship applications for example, and we are looking at pilot projects in deciding petitions without a hearing where it's possible.

we are challenged with how to keep our information up-to-date because our information is also very legal in nature and there's a lot of balancing that goes on between providing simplified information people can digest but also legally correct. ensuring they have access to department services and increased collaboration with all the departments. just touch on both of those for a moment. let me start with increased collaboration with other departments. you have passed a number of laws that are great for us, because we need to rely on other data, so when you ask the planning department for example to take into account the data at the rent board or ask the

mayor's office to take advantage of data at the rent board to carry forward programs, that data is important. we are looking at ways to streamline those data requisitions. you are the new san francisco rent board, the new city, the new way we are all working relies on working together much more and we are very actively working at getting better at working together. lastly something new and dear to our hearts at the rent board is working with san francisco's diverse community specifically the limited english speaking community and we do that by a variety of ways translating our materials to providing interpreters and translation of all our materials. this year's proposed budget has a $30,000 increase for increased interpreter service. >> $30,000.

>> correct, for a total of $90,000 but it's growing exponentially the use of those services. let me move onto legislative changes. this isn't all together new. we move slowly, work load from legislative changes, the a forementioned soft story seismic retrofit ordinance passed in 2013-2014, 5,000 buildings, 50,000 units, almost a third of our housing stock will be retrofitted in this way and we expect that will be coming to us as petitions for pass throughs and petitions for application for hardship waivers of those pass-throughs for tenants. also driving our increased work load is the filing of agreements within the department and we are receiving many, many of these.

i'm trying to showcase the challenge is some of our petitions have gone down. regular tenant petitions are high two years ago, since then they went down somewhat. landlord petitions are increasing, so are other kinds of buy outs that often require more work than the petitions that have been kind of holding steady. so this chart attempts to illustrate that. filings are where they were but the nature of those filings are changing due to the seismic

retrofit ordinance, as well as buy outs and owner move-in process it will be much more labor intensive on our side. so for that reason, we are keeping our f.t.e.'s at the same level, as per the directive, we went from 36 to 37 f.t.e.'s in the 2017-2018 year and this year we are keeping it at the same level. the proposed budget for 2018-2019 is 8.5 million. it's about a 5.8% increase from last year's approved budget. and that is mostly a reflection increase in salary and fringe costs, annualization of one new position and increased interpreter and translation budget, i.t. support and

smaller items like that. >> if you don't receive any general fund dollars, where and how do you get increases to your budget? >> our budget is entirely funded by the rent board fee. the rent board fee is assessed on every rental unit in san francisco. the controller determines after approving the budget the amount of funds that are needed. assesses that amount to cover the budget. that's a great segue into our last slide which is the rent board fee was $45. this fiscal year. we anticipated the rent board fee going up to $47-$48 but we are happy to report it will come in at the same $45 per

unit, $22.50 per s.r.o. unit this year. >> supervisor cohen: so no one gets a raise? >> well, we were able to have some savings from prior years. >> supervisor cohen: okay, that's good to know. do you have a rainy day fund? do you have money available if something terrible were to happen that would help you? >> not really. the only thing we would have is prior years' surplus to use in a future year, we have no other mechanism. >> supervisor cohen: if something catastrophic, i will direct my question to you but also staff, if there was something catastrophic and your budget wasn't able to absorb the cost are there restrictions that would prohibit you from drawing down on the general fund or is that just not the way -- >> that's not the way we have operated. we would have to research that. i think at this point if something catastrophic were to happen, we would look for an appropriation ordinance would allow to go back to surplus in the fund currently but whether

we could access the general fund, i have no idea. kelly, do you? >> supervisor cohen: no, you are right probably the most expedient is budget supplemental of some sort. thank you, supervisor fewer has a question. > supervisor fewer: yes, thank you for your presentation. how much time do you think you spend on owner pass through petitions? >> it's difficult to say, i will say this, they are much more time consuming than tenant petition because there's no heap or illegal rent increase. you are really doing an audit on the operating cost of a building for two consecutive years. as you can imagine, it's many fold more complex than most other kinds of petitions but i don't have a specific number i could give you. we have maybe, probably about 20-25% of our staff is probably

devoted to processing those, even though the filings are significantly less than other kinds of petitions. > supervisor fewer: because they are more intense? you have to dig deeper. even though the filings are less, the petitions are less, but they are very time consuming, each petition, is that correct? >> supervisor fewer, that's correct. also dealing with a petition where there's many respondent tenants. you might have a petition for one building but there may be 30 tenants interested, want to look at the file, get more information, want to raise objections, want to be at the hearing, want an ininterpreter at the hearing and maybe many are affected by hardship situation, and often times actually results in a spill-over effect. you may have tenants who want to file their own petition because there was a petition filed by the landlord. it's a driver of more work. > supervisor fewer: got it. and do you think you have

sufficient staffing to handle the work load you have? >> we are trying to be creative. our challenge is we have no more space. so even if -- like many others in our fair city with some great, you know, we are not alone, i think, as far as city employees and city departments in having difficulty securing space. having said that, currently we are dealing with the work load we have with creative strategies, like i mentioned, more strategic planning around what can we process without a hearing, how could we simplify, we have had a board that's been very supportive. they have done away with process for the hardship application. they streamlined it, made it easier for tenants but also easier on staff. > supervisor fewer: thank you very much. >> thank you. >> supervisor cohen: all right, seeing this are no questions, we appreciate your presentation. >> thank you very much. >> supervisor cohen: next we

will hear from the appeals board. >> good afternoon, my name is julie rosenberg, new executive director of the board of appeals. as you are probably aware mr. goldstein retired six weeks ago so i moved over to the board of appeals from s.f.m.t.a. this current fiscal year and go over our budget proposals for

the next two years. >> supervisor cohen: ms. rosenberg, do you have a presentation for us? >> yes, i do. it's up on my screen. >> supervisor cohen: i'm sorry, you don't have a handout? >> i apologize, yes, i do have a handout. as you know the board makes a wide range of determinations for city boards and commissions and our mission is to provide a final administrative review process in a fair, efficient and expeditious manner before an impartial panel and we are a very small department, we have five board members. the department head, myself a legal assistant and three legal process clerks. we have five full-time employees.

our strategic goals, just to give you a brief summary to enhance the appeal process for participants, make it more accessible to the public and through the increased use of technology. goal two is to foster workforce development. we are small, so we cross train our employees to be able to perform all functions and goal three is to analyze and amend the board's rules of procedures to modernize the a process. we have two revenue sources. our primary source is through surcharges. those represent 94% of our revenue and those are collected on new and renewed permit applications. and the rate of the surcharge is proportional to the percentage originating from each department. each year the controller

performs a rate analysis after other departments submit permit data in april. and currently d.b.i. and city planning account for 76% of our surcharge revenue. and those surcharge fees were reduced in fiscal year '18 by 26%. it went from $25 to 18.50 and the goal was to prevent over collection but again we will be revisiting those next year for fiscal year '20. the controller is authorized to make c.p.i.-based adjustments to the surcharge rate but beyond that, would require legislation and legislation may also be warranted to change the permit types on which surcharges are levied. for example, currently cannabis permits there is no surcharge on those. in terms of other source of

revenue, filing fees, 26% of revenue, collected by the board when new appeals are filed. moving on a quick snapshot, the city issues over 70,000 permits a year. most of them again looking at the chart, d.b.i. is a big issuer of permits as well as public works. and moving onto our expenditure budget, over two-thirds covers salary and fringe benefit expenses we have five full-time employees. 18% of our budget goes to services provided by other departments such as city attorney, department of technology. we also have a small part go to specialized services, infrastructure, materials and supplies.

this gives a snapshot. average of 188 appeals per year. we have hearing jurisdiction requests, 20-30 a year. quick chart showing the types of appeals we get. most are from d.b.i. and planning department, 77% of our projected appeals are from those departments and then after that public works. the zoning administrator public works and it goes down from there. moving onto the fiscal year '19 and '20 budget, surcharge rents to cover operating expenses in both fiscal years for fiscal year '19 there will be no increase in surcharge rate and for fiscal year '20 we will analyze them during the next year's budget process and there's no projected change in filing fee revenue.

and then our budget proposals include modest increases in expenditures in both budget years to cover mandatory increases in salaries, fringe benefit and rents and there will be no increases in staff levels. we just have an appendix with our filing fees. here is our surcharge rates. you could see $18.50 to d.b.i. and planning and it goes down from there. that concludes my presentation. >> supervisor cohen: thank you. i have a question for you, it goes back to, i think it was slide 8. i was curious to know why it's lower. >> it's really less than 10%.

i don't know, we have two more months. this was data up until april 30th, it's in line with the 10-year average so it's nothing significant. >> supervisor cohen: thank you. seeing no other questions, i think that's it. >> thank you. >> supervisor cohen: thank you. next we will hear from the building inspection team. building inspection, d.b.i. has a total budget of 77.8 million. again, no general fund support. i couldn't tell if you had an

f.t.e. change in your -- >> yeah, good afternoon, supervisor. tom mohele director of department of building inspeeks. -- inspection. we have no general fund support. it's my honor to present two year budget for our department and then slide number 1, start for our presentation, first of all, on slide number 1, you could see our mission and also -- digital plan. just to give you a general overview. our department main function plan check, inspection and code enforcement. and then slide number 2, is

regarding the priority of the -- 17-02 regarding housing. of course that would be included in the a.d.u. legalization of the unit and also we are trying to do parallel, work with other department to try to reduce the time frame, as per the directive to reduce the time frame to produce more unit. then also the second major thing is the implementation of accessible business entrance program. affect 27,000 business. that will be lots of work for the small business to comply

with this ordinance. then also regarding the code enforcement, we generally have 8,000 complaints per year and increase by roughly 5% from last year and other major item we are trying to prioritize is the seismic safety. more soft story as you hear from minor department, involving roughly 5,000 buildings. compliance with that program, i consider very successful, 90% compliance now. and also with the private school program, also tall building study and also i want to address our public seismic safety program outreach, the

public roughly 20,000 people what we call ambassador graduate from the program roughly in 2000. slide number 3 is the major changes in our budget and then i don't want to spend too much time, you can see what is the changes there. another slide is regarding bar chart on the expenditure, majority of our expenditure is regarding the salary and also work order to other department. one good news is you can see the f.t.e. compared to the last two years. we are actually reducing it slightly. before i end my presentation, i

would like to thank you, controller office and mayor budget office working with us and also deputy director will be here in case you have more detailed questions, i will stay behind to answer any questions you have. >> supervisor cohen: thank you. colleagues, any questions for mr. hui from d.b.i. 14 > supervisor fewer: are you staffed to capacity or still vacant positions? >> we are staffed to capacity, lots of people retire and move to other department. we constantly have a hiring process. > supervisor fewer: okay, so you are actively hiring right now for those positions.

okay, would you say you have enough policy staff at d.b.i. interpreting the laws from the board of supervisors and helping make the needed programmatic shifts to implement those laws and how many positions would you say are dedicated to that kind of work? >> okay, -- looking into any changes here, the board of supervisors, the mayor's office have any, that we look into the state also, in case they have any changes. constantly, you need someone part-time on it. > supervisor fewer: are you doing the policy work? >> i'm the primary person for policy work.

> supervisor fewer: you are. and you work with a team of two other people, it sounds like? >> yes. as well as with the executive team that is made of the director's deputy directors. >> besides that we have a technical services division, about 5 people there including engineer inspector to have any code changes or anything they need to do. > supervisor fewer: okay, perfect. do you have anyone to respond to complaints and be proactive. >> we have two divisions, the housing and the other is the building inspection. the housing, any complaint, they have it divided in any district is handled by the chief housing inspector and

also the building inspection to look into inspection and complaint and also we have a code enforcement unit and then they will look into all the commercial building and all those to go for code enforcement. to make sure they are enforced. > supervisor fewer: okay, great. thank you. we have an appointment to meet and walk the corridor around building and safety. >> also, you are all invited to our seismic safety fair on june 13th starting 9:00, i think. or 10:00 a.m. > supervisor fewer: i went last year, i thought it was great. thank you very much. >> supervisor cohen: thank you.

mr. hui, i just want to take a moment and applaud your team's work on continued focus on code enforcement. i think it's a very important service you provide to the city of san francisco. we collectively have done a lot of good work and going after bad actors, property owners, just want to let you know i appreciate your team's efforts. >> thank you. >> supervisor cohen: that goes for you to, mr. strawn. that's all i have. the next department is public utilities commission. >> good afternoon, supervisors. i will go through my presentation quickly, because i know it's been a long day. again, i'm harlin kelly,

general manager of the public utilities commission. i will provide the budget and brief high level overview of agency priorities and key projects and programs that drives our budget. additionally, i would like to talk about some external pressures our agency is facing and after providing this overview i will pass it onto our c.f.o. eric sandler to do a deeper dive. so first i would like to start with the agency mission. as you know we provide water, sewer an power services to san francisco residents and businesses. we also provide water customers located through the bay area, total approximately of 2.8 million people depend on our ability to deliver drinking water everyday. one of the most impressive things we really focused on was

the strategic plan, our 2020 strategic plan and implementing it has been a priority and this is our first budget that is really aligned with our 2020 strategic plan goals and so they are identified here and you will see this throughout our budget how it's reflected. as we execute our strategic plan in a complex environment, the first set of things that are listed on this slide is something that is really consistent throughout citywide and you will see it reflect in a lot of city budgets. however, our challenges are not only limited to that. we have regulatory issues unique to our agency. we are experiencing more stringent regulatory state and federal levels. on the state level, state water resource board, california public utilities commission and the california division of

safety of dams all have proposed and implemented regulations that impact our water and wastewater services. so for example, one example is that the state has implemented requirements that water agencies must test and continue to monitor all schools for lead in their water at no cost to schools. you will see this program reflected in our budget as well. finally, we are already seeing how climate change and specifically change in precipitation patterns in sea level rise has impacted our operations and bottom line and we anticipate climate change impacting will not only increase in the coming decades but we must start planning resilient in our budget in light of climate change. our agency priorities are listed here.

once we have our mission statement, our strategic plan goals as guiding principles and we take into consideration the external khal lepgs i talked about, this is how we develop our budget and prioritize for the next two years. i will take a quick look at these priorities. the first you are very familiar is our water system improvement program and this has been ongoing for ten years. we are so proud it's a 4.8 billion program, 87 projects that spans seven counties and we are pore than 96% complete. through coordinating efforts with community partners and trade unions and contractors and regional workforce numbers have been increasing. so if you look at this chart, 73% of our apprenticeship are

from san francisco or service territory which represents about 760,000 hours and earning about $33 million in wages and benefit and then if you look on the right-hand side, 50% of the non-apprenticeship opportunities are met by san franciscans and service territory residents as well. you can see we have been doing a very good job creating local hire to san franciscans and folks in the region. the other capital program is our sewer system improvement program which is to really bring our system up-to-date and reliable after earthquake so we can function as usual. this is a long program and we are approaching it in phases. our commission has approved phase 1, which we are

implementing which is a $2.9 billion dollar program. if we look at the local hire in that program you will see 64% of our apprenticeship is from san francisco. the difference between the water improvement and sewer system, the sewer system is strictly san franciscan and water system is both san francisco and service territory which is made up of the 7 counties. if you look at the non-apprenticeship, we are 32% of san franciscans. i think this is really a great show we are really invested in trying to promote opportunities for san franciscans. moving from water and wastewater side, i wanted to

focus on our power side. i wanted to begin with our hetchy power customers. as you know and passed a resolution, we are celebrating 100 years of hetch hetchy power and we did that. so we can more effectively serve customers and expand our customer base and improving our service to our existing customers are key in meeting our power business plan goals. so if you look at what we are trying to accomplish. currently we serve about 100 megawatts to our customers and what we are looking for is to pretty much double that over time and the way it's broken down is we are looking for about 100 megawatts or 90 megawatts from new development

or opportunities to serve in the eastern side of san francisco and then we have 30-40 megawatts we feel are in dispute with pg&e, we feel those are customers we should be serving and just the natural growth of our customers that make up the 150 megawatts. so the other line of business is if we can't serve you with our hetchy power, we have our clean power sf program. we have 80,000 customers in clean power s.f. and that revenue is approximately $38 million. in the next two years we will complete a citywide roll out, so in the first of the two years we are going to roll another 95,000 new accounts which our revenue will jump from $38 million to $157 million and in the second year we are going to roll another

190,000 accounts and that will bring the total up to 367,000 with revenue of $250 million. you will see our clean power s.f. revenues increase about 650% in the next two years and that's one of the biggest things you will see in our budget. as far as, you could see we have a lot going on in the next two years but one of the biggest challenges as we implement projects, programs we are facing is the retirement risk at the p.u.c. particularly in our water and wastewater side. i just want to point out this graph which represents the eligibility of folks eligible for retirement in the next five years and if you look at the red bar, the red bar represents

the number, the folks who will max out. meaning it is probably the best time for them to retire because they won't receive any better benefits. it's safe to say the 16% on wastewater probably will retire in 15 years and the rest are eligible for retirement. that's probably one of our biggest risks we are facing so we are looking at ways we can attract the next generation of workers as a high priority to our agency. which leads me into our workforce and our aging workforce with close to half of our workforce will be close to retirement. so that's something we identified in our 2020 strategic plan. the goal is to attract, retain and develop an effective

workforce reflective and supportive of our communities. to achieve this goal we have actively implemented programs creating career pathways into entry level and mission critical positions at the p.u.c. in partnership with san francisco unified school district, we are making sure that students are aware and exposed to careers in our sector. we are getting ready to welcome approximately 1200 students in early career professionals that will join us annually for internships in the summer. our programs provide opportunities to historically under represented communities and our service areas. over the next two years we will further develop a kindergarten to career strategies that tangibly link investment to

environmental stewardships, stem curriculum. apprenticeship opportunities specifically focus on our water and wastewater enterprises. and also on a national level we are working with utilities throughout the country to secure new resources from water workforce training dollars. we have center booker and kapido introducing innovative water workforce development act that would establish a competitive workforce development grant program. so finally we are prioritizing investments in our current workforce to ensure that they have the training and skills to stay and take advantage of opportunities at the p.u.c. so now i would like to pass this over to our c.f.o. eric sandler that will dive into the numbers and thank you very much.

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-- in january and faen february. . in january and february, 12 hours of deliberation on the operating and capital budget and also adopted ten-year capital plan and ten-year financial plan. the capital budget was also forwarded to the city-wide planning committee where it was vetted as well. so, as general manager kelly, i wanted to hit the highlights of the budget and what's really driving the changes year over year. the city-wide rollout is the single largest driver of the budget increases. it's additional $172 million. over the two-year period. all of our on budget position requests relate to cleanpowersf, 11 f.d.e.s.

what i talk to you about in terms of the ten-year capital plan and the two-year capital plan, we issue bonds and have to pay debt service issue bonds and debt service on them and larger share of the main replacement and sewer replacement through revenue funded capital, and that's also driving the increase in the budget. recommended budget results in rate and charge increases in line with the ten-year financial plans that we have provided on an annual basis. the combined water and sewer bill increase will be 8.5% annually, over the next four years. rate increases will go into effect on july 1st. the commission and staff recognizes the rates and charges impact our customers and we've been on a multi-pronged effort

over the last several years to try to address how our rates impact our most vulnerable and low income customers, and we've really taken four levels of work here. one to improve assistance to single-family residential customers, and we have worked collaboratively with the mayor's office and the controller's office to find legally compliant sort of funding. direct 15% on water and 35% on sewer credit. it's our community assistance program. and we'll be promoting and developing customized outreach to address, to try to reach our single-family residential low income customers. we have also worked significantly over the last year to reduce the impact of fees and charges on our low income customers. the commission last month adopted elimination of several fees and charges, including the water shutoff and water turn-on

fees and so those disproportionately impact the low income customers who are already having trouble paying their bills. working collaboratively with the office of financial empowerment and the h.s.a. to develop early interventions for some customers experiencing bill payment problems and try to develop assistant program for the customers in multi-family housing with whom we don't have a direct relationship. so, i talked about sort of the planning context, highlights, work on affordability, and overview of the budget. what we have here is a table of the p.u.c. operating budget. broken down into our enterprises, wastewater enterprise, hetch hetchy water and power, and cleanpowersf,

such a big driver over the next two years. what you can see is our existing budget is about a billion dollars, $53 million, going up for fiscal year, 1,000,000,299 million and for 2020, 1,000,000,499 million, increase of 348 million over the two-year period. lion's share by cleanpowersf and the other big drivers are debt service on water bonds, on wastewater bonds, and then revenue funded capital on water and wastewater infrastructure assets. >> bring to your attention the presentation was -- >> long? >> yes, long, but supposed to be ten minutes and you are already like seven minutes over. i need you to wrap it up to get to the questions. >> sorry about that. operating budgets