public comment? >> hetch hetchy quarterly port,de. >> 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 ecyen 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 peakt 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,hin w 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 sfpu went to work, they worked through theght 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 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 generatin units. they would have a disruption to flow of water to san francisco an 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 controlver 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 d 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 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 wateras t 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 somof 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 moreor intim repairs in 2018. and tn 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 lin 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 fl othme 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 ich 16 completed, and 12 were in progress. ter, the pacific gas and past 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-certioca for nerc cip ci monitoring, by the hetch hetchyffor 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 reews.nt construction project mantme 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 asfinances, 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 alsoemain 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 cycle nature. we are not able to close audit recommendations on a more timely basis because a lot of that leadership is being assigned to another city-wide department. and so weil continue to work with the lead department and implementing those recommendations. other audit recommendations that are open at this time again are due to other conversations that need to happen at the city-wide level, whether the department of

human resources or working with other agencies that also have a stakeholder ownership in these recommendations. but our staff will continue to work on these outstanding items and report back to the commission on a timely basis. thank you. >> president kwon: thank you, issimmers, any questions? >> yes. nancy, thank you. and i appreciate your inclusion of the prior year audit status. you were saying for the three listed, the primary cause of those items being open is the responsibility of other departments? >> yes. so, the construction safety management audit, there -- that was a city-wide review performed by the city service audit and multiple departments there, and so there is a lead department, also probably working with another oversighting agency in the city that would happen to take upon those recommendations

and work with city-wide departments to implement the resolution. >> and within that, are there also recommendations that pertained specifically to the p.u.c.? >> not specifically for that one, no. p.c. was highle our ink the proactive practices and our health and safety. >> ok. and for the other two, the power enterprise and wastewater? >> power cells for two irrigation districts and long-term energy agreements are on a cycle, and renewed on potentially annual basis and those conversations have not happened yet due to an extension of the agreement. >> as i recall, they said we should renegotiate our contracts, easier said than done. >> part if i may say, is that with that particular audit, it was -- it was -- there was a gray area, the recommendations were, they were really

recommendations for our agencies to consider as part of renegotiation, but not so much of a directive to establish like the, they had very specific methods a g calculations and methodology that they wanted us to consider. but they realize that was not entirely possible, it is a situation where negotiation would take place between two parties. >> right. theaso i ask those questions, we had said as objective earlier, i guess about a year ago, that in the -- that in general, recommendations should be brought to closure within six months and if they couldn't be done in that time, that there be a schedule established for each audit brought to the commission for approval, basically saying some reason why it's not reasonable or possible to do this in six months and need more time and setting objectives for what the timelines were.

they obviously don't exist for those three. but it is still something that, you know, the commission set the objective for that, and where we have audits open for a long time, and some of those are, you know, cranking up some fairly substantial, you know, years of being open. that there be some kind of process that acknowledges what the issues are and establishes some kind of process for getting through to the end of it. even if it's a matter, other departments or city-wide effort we should ask them, you know, for what their plan is to get us to the end of this thing. >> i can -- i will take a note of that and see what we can do. >> ok. i would appreciate that. and i think as we, you know, proceed with this, i think this reporting is good, and i think it's the appropriate step forward. i think we just need to build

into it. so, what do we do to follow up with these, how do we bring these to closure. let me just take a second, oh, different subject. we had had some things for a while dealing with inventory accounts, and inventory control at the various shops. >> yes. >> we have, and -- if i read this correctly, the major audit that has been open for some time has been closed. but there was also a subsequent review that found some residual issues that needed to be dealt with. did i get that right? >> going back to -- this is going back quite a few years, almost 5 to 7 years ago, the city auditor did commission a series of audits for each enterprise's inventory warehouse, focussed along the lines of internal controls and business process. and those audits to my

understanding are now all closed. one of them did take a while, but it was resolven i the past fiscal year. you know, there was a follow-up audit on one enterprise, i don't have my notes with me for that one, but audits -- the auditor can alw ret and do a limited scope follow-up audit, not just a matter of us responding to them that we did it, they will validate whether we took the procedures or not, and i believe they were satisfied in that case, with our resolutions, now, the city auditor can do another rotation of internal control audits for that, and they have not expressed the desire to do so recently. >> my memory is the earlier audit called for development of various information systems in theegraion with maximal --

and revised version, said you have done that, but there is some implementation issues you still need to pay attention to. so you need , you know, as you make issues, from inventory, as you move location of inventory from one place to another, you need to update the system rapidly. a couple others like that. >> i can go back into the historical reports and see where those recommendations remain. i could provide an update to you. >> and i don't need a great deal of detail on that, i think. mainly i want to make sure my reading was correct. it is not surprising that after we implement, you know, the information systems that there are some issues with implementation, that's not surprising. it's important but it's not surprising. so, the important part that follows on to that is that those now are being tracked as compliance issues that we would expect would be addressed and closed in six months or a plan for getting there if it's going

to take longer than that. let me make sure i have -- just a comment on the improvement program audit, i think we have talked several times about just the importance of trust that our customers can know that when we are increasing their rates to pay for these projects that they are managed properly. so i think that that audit, number one, is very important to do. i think the findings are important to pay attention to. as i read through the responses the department made, i thought they were important and serious, but we need to keep on top of that as well. i think that's an important part ofaintaiing trus for the people that -- and then the last one is on the wholesale revenue

requirement. there's some language there that i did not understand. the part i did understand was that some inappropriate charges got allocated to water that should have been power. a part i did not get was saying there was an attention to reports or something like that. >> excuse me, the last portion you said? >> something about -- let's inadequate control over r the management review of analysis reports. and i'm looking at -- >> review of analysis reports. >> yeah. >> in that particular instance, therwas, so agency staff prepared analysis to determine what costs are coming out of the financial system, how they are extracted and then included in the balancing accounts calculation. and there was an oversight of

not extracting, of not excluding wastewater salaries, and that mistake included the number that you see here, the 72 million. and so when that, as part of the calculation, so when the error was resolved, it resulted in a favorable adjustment to the retail customers and so what staff have done to kind of mitigate the situationfrom, and preventing that from occurring again in the future is to add additional reviews and more in-depth reviews by subject matter experts in finance to ensure that it's more than just one eye or one high level, it's a review of the compilation itself going forward. >> thank you. it's not uncommon for audits to say mistakes were made and need to correct it. this was pointed to something systemic, that's the way i read. and responses, systemic response and i appreciate it. i think that's all i had on it, thank you. >> ok, thank you.

>> president kwon: commissioners, anything else? thank you very much. >> thank you. >> any public comment on item 7c? ok. next item is quarterly budget status report. eric sandler. d.f.o. >> commissioners, eric sandler, c.f.o i have a quick quarterly budget status report for you. i have the slides, please. so, the good news is that we are looking at positive net results for all of our operations and these projections are consistent with the numbers that we use to develop the biannual budget proposal. no significant variations versus what you saw in the ten-year financial plans in february.

[please stand by]

various methods of the capturing surpluses when umpti exceeour bgets. there is no neat way of doing that. it is an opportunity to take a look at the capital program and look at the incentive program

that we have, and if there are any that are running out of money, this would be certainly the me to take a look. if staff to take a look at that, i would appreciate it.you could report back as to what the finding is on that. >> we will follow up with a the water conservation team. >> thank you. >> thank you. >> public comment, any public comment on this item? [laughter] >> okay. the next item, is a new orientation procedure for employees. recently, assembly bill 119

passed on to actually impacts our ability or impacted new employee orientation, and it relates to union access. and so one of the things that we wanted to do is enhance our ne employee orientation. and so we reached to vince courtney and i think we came with something that will enhance our new employee training and , cindy, can you review that, please. >> good afternoon. i'm the human resources director for the san francisco public utilities commission. in today's very brief update i would like to provide context and the outcome of the city why negotiation. as well as some of the changes and enhancements that we have made to our new employee orientation program. in late 2017, the city, through

dhr, helps a meeting for negotiations with respect to labour unions under the recent state assembly bill 119. the outcome of those negotiations resulted in new employee orientation sessions allowing for 30 minutes union access. it is during that time we respect -- we invite our respected unions to come and talk about union membership, the privileges of membership, the provisions of the memorandum of understanding, and however, they unions see fit to use that time. respective of the existing practice, we allowed 30 minutes time. the existing practice has always been to allow our respective union partners to come in for at least ten minutes. for now, that time has expanded to 30 minutes. the bill requires two fundamental things i would like to hat highlights. a public employer to give a

union notice regarding new employee orientation of new employees of that unit, at least ten business days prior the orientation. they comply with that portion of the bill by providing all unions with an annual, central and typically, what we do, we sent out the annual schedule between november and december for the following year. in this particular case, for beween november and december. the second area at that the bill also covers, is employer to provide a union representing it's employees, with the name, job title, department, work location, home, work, and personal cellular telephones, personal e-mail addresses and that's been a coordination efforts between my respective hr department, and dhr for the city. that is just to give you a quick i -- highlight of the bill. with the passing of this bill in

concert and with working with commissioners, wevehade some additional changes with respect to our communications with the labour union partners. regarding the following ways. we sent personal calendar invitations to the respected union organization who have members attending an eeo at each of the upcoming sessions with the wrist instructions on where to go, when to arrive and we also provided copies of the agenda and theroste h is the actual sign and seat. these invites typically go out 1-12 to a business days before n.e.o. is scheduled. to give you a context of how often we conduct n.e.o., we have a regular schedule of two n.e.o. a month at the training conference -- happens on the first day of the employee's work. during the summertime, we moved to scheduling it evy week due to the high volume of employees

that we hire, and typically there in time. my staff are very busy at the moment. one of the request that was made was to further enhance our communicionsby implementing a new form which identifies employees a respective union organizations, contact information for the union representative, and a link so the employee can actually act on that information and become much more dictated about what being a represented employee means. thisform will be on letterhead and will include the general manager's signature on it, and it will be disseminated at the beginning of every new employee orientation. we think commissioner courtney for working with us to enhance some of our communications. we indeed a partner with all of our respective labour organizations to make sure all employees are aware which unions they belong to, and how we can

continue to work with them in that partnership. at this time, i will take any questions you might have. >> thank you. public comment in this item? so i want to thank you for your work and your staff. i also want to note that this isn't just about the assembly bill, but the assembly bill, and that effort was really triggered by a national effort by those of you who don't know, supreme court decision that is inevitable coming down any day now that will really impact the way that labor unions an in the public sector do with their members and how the employer feel bo their members. for few years, i've been talking about as having some kind of an articulate -- articulate workforce development at our level so we know exactly how we deal with current employees, onboarding, recruitment, et cetera. i think this is, not just a positive step, i think it is

kind of step that, and i think we have to thank francesca and need to thank the city think ty attorney's office too, about their assistance -- without their assistance, we would have wobbled more. there is a big difference tweenthe kind of folks that work for the public utilities commission that work indoors and have college°. that are assigned workstations. we take th devic for granted. they are very expensive. expensive to upload. with my cable bill i cut that cable bill but with the folks that i come into contact with routinely, they are confronted with making decisions about whether or not to pay their auto insurance, or their cable or their internet or whatever it is. there is a big difference between a young man, a woman who is being brought on board at a much lower rate of pay, from a community that we identify as being a community that we want to go over and above for. and so, providing them, and

making sure they have that information, is probably one of the things that i hold most dearly to myself, in terms of taking care of our workforce. i do look forward, and this is an interesting game, because, you know, the chair man or chairwoman it sits in that seat a year. it is really, really hard to get anything done in a year. but that is how the game is played. so, i am moving this ball, and it's obvious, to everybody, i'm moving this ball because i expect a real thoughtful and deliberate approach to work force development in both the public and private sector, because mayor, about a week ago, he also convened a group to anticipate the next economic downturn. 5 yearso,th spect toe were under the community workforce, they are about to come back here. we will be ready for it. because i think, even though we don't always agree, i think we are all thoughtful, and

deliberate enough to work together, find a common ground, and get it through. my hope is that there is a little tweaking i see that i would like to talk to the general manager about, but i also want to thank the general manager and the city attorney, because at the end of the day, i want to be part of a conversation with all of us. i want to be part of a conversation that sets the gold standard for the city. i think the notification -- from the gm, and what we aim to do with this little onboarding piece, sets the gold standard and i think we should ask or other city departments have access to it. thank you for your efforts. >> thank you. >> thank you. >> now commissioner? >> thank you. >> commissioner courtney. public comments on this item? item seven f. please. >> seven f., i was going to

bring up the award and i just want to say, i want to thank staff on to answer your question park we actually looked at last years and we talked to the ways we can improve it. a lot of those ideas came from you and from some of our atms and staff who have worked on the awards. what i think everyone felt in the little video was that people can actually have and show their families. people who couldn't attend. i thought it was a great touch as well. i'm just really proud, and i'm looking forward to getting some feedback, so that next year will be even better. if you guys, or any commissioner attended, if you can provide some feedback in ways that we can improve it, that would be great. and with that, that concludes my report.

>> any public comment on seven f.? >> at this point i would like to hear the tale of the origin of this but we will sa save that fr another time. >> bay area water supply and conservation agency update. welcome. >> tou y commissioners. can i have the projector, please? i will apologize for my low-tech version here. i had a failure of technology on my end. so donna assisted me when i started out today. i wanted to take my time today to talk to you about an effort that we've been working on for the last year. and we planned t plan to move fh it next year, regarding the governor's request to make water conversation a way of life.

the work that we have been doing for that... and only 2017, there were two pieces of legislation that were introduced in sacramento to support the governor's call for water conservation and this was conservation above and beyond the idea of a drought conservation. really speaking long turn -- long-term conservation use. both of those have moved through the legislature and have made it out at the legislature as they are awaiting the governor's signature. what we did, in july 2017, as we initiated the development of our strategic plan to meet this. to really try to decide how to help our agencies meet this requirement, and how to do it best. we anticipated to have a role for that, and this was our weight to try to develop that.

so that strategic plan had three main components. the legislation is very specific. it has very detailed requirements about how to develop water targets, activities you have to do, highly data intensive and activity focused. so, in looking at it, the question was, we have to assess what it will take for 26 agencies, 26 water suppliers that are small, and large. cities, water districts, private utilities, how do they have this information and do they have it available to them? what does it take for them to get this information? what are the systems in place within their districts that will help them, you know, do this work? so that assessment of their capability is is a critical component of it. we also looked at the cost of that. not just what it would take for them to do it, but also trying to figure out what would it cost for them to do it?

part of this was figuring out how do we help them implement the most cost-effective way? and we use this information to also develop our position on the legislation. we were relatively quiet, we don't speak on active positions aren't bills but we do push in certain directions. we work closely with the association of california water agencies and other water utilities in the states and with your staff as well, to get certain changes made for the legislation so it can be more easily implemented and actually made sense this type of area. and that was successful. on the legislation currently reflects that. the other thing that's this information did is we developed a work plan. based upon what the assessment said, and what they needed to do and where we can identify some cost-effective opportunities, we put together a work plan. what we could do to help the agencies next year and what they were going to do.

this idea of working together which is consistent with how we implement conservation today in the service area. so, a couple of the key pieces of this legislation, the first is outdoor water use. and examining what kind of information our agencies had to look at our out -- outdoor water use. lascape area measurements is one of the big requirements of this new legislation. essentially coming up with a water budget on a per residential account basis based on actual measurement data out. if you can imagine, i know this is one of your issues and constraints you have had to, kind shows try to get that data is difficult. coming up with cost-effective ways to do that is important and how you deal with that amount of data. those types of analytical questions where the things we

looked at with our agencies. commercial and industrial water use is another major component, that to be totally honest, a somewhat undeveloped in the service area. is not the largest sector of water use, and it has been one that has not easily been responding to previous water conservation efforts. so now, looking at, you know, what kind of commercial audits can we do? which ones are successful? how do we all classify our commercial accounts? do we all do it the same? and how do we change that at what would that take? e ty of questions all get into different departments, if you will in the city, you know, who does the billing, who does all the information. it is not a slamdunk and try to figure out the answers. and then, water loss is another major component of legislation. it was building on a previous bill that passed a few years before that. senate bill 555 that required agencies did you water loss evaluations, and then do

verifications after that, every year. the first set of evaluations were sent in last fall. and now he requires verification. this isdone annually. again, these are areas where it is like, wh worked? what didn't work? what kind of help do you need? i will say, we have worked mostly with chris nelson in your water supply and treatment division manager, and helping us with this. it certainly impacts, you know, the work that you do on your metres, and your launching of the metres on the verification and all those types of things. that will be an ongoing effort. that is not an easy one, but it will be necessary to make -- meet the requirements of this law. there's a reason why we don't do those things anymore. [laughter] so, last week, the board adopted the work plan for fiscal year

2018-2019. it essentially took all of this information and put it into an action plan. we did a lot of case stud withthis analysis and try to look at other water utilities throughout the state and elsewhere to say, how did they meet these requirements? what are different ways to implement these programs? we brought that into what we are going to do. the first one is a residential indoor, outdoor water use study. the legislation requires a certain residential efficiency, and then we have to do the outdoor efficiency. we, in our region, have not done a study that provides a breakdown of what is an indoor use on a per account basis or a type of residential customer basis and an outdoor use. we will go through that process to understand what is the base start in the service area for residential water use so we can understand, what do we need to tackle to meet the requirements of the law? the other thing we are going to do is implement a pilot audit

program on a regional basis. we will look at a couple of different options to see what might work and come up with the best alternative to me to the needs an exhaustive -- cost-effective way for the agencies. the other piece is what we call our water loss magement program. and bringing on someone to do multiple parts of this water loss investigation. it is highly analytical and there's very specific requirements. and unfortunately it is kind of like any other audit we have one person that does the analysis and you have to have a third party verification and then you also have education about it. what we have found is some agencies want help with the water loss and they will do the verifications and some want to do the verification without the loss. it is a combination of activities, but overall, getting them to get these things done and getting them completed, so we can all meet the requirements of the state legislation. i'm really excited. i think it was a bold step for

us to take this on a year ago. really, it is building on what has been our historic activity for water conservation, and what has worked in the service area, and in recognizing the differences between our thir needs.nd how wecan he i very excited with the support we go off and theboar the othernight and i look forward to seeing that what the results are. just to kind of, in my comments, so, as we continue to keep track of water use in the service area for last march, about a month and a half ago, i guess, use was 28% less than it was in march 2018. this is where it is interesting. this is total water use. all support -- all supplies of the area. social water use has been reduced by 21%.

the interesting thing, is for the san francisco supply, it was only reduced by, now i can't find my numbers. four%. so, this is something we know happened. agencies have multiple supply sources are using something different. and in this incidents, it is likely. another wholesaler in the issues have a treatment issu in their plants. they asked some of their agencies to take more san francisco supply. the presumption is it will balance itself out. it was certainly things we have done in the flip side, but it is an interesting thing to track. if you look at one supply, you missed the picture. this is something we will continue to keep track of as we move through that season and we see what the long-term implications are. with that, i will conclude my comments. >> thank you. commissioners?

thank you very much. is there any public comment? we will move to the consent count. madam secretary? >> all matters constitute the consent calendar are considered fro puic utilitiesthe san commission and will be acted upon by single vote of the commission. there will be no discussion. in which event the matter will be removed from the calendar and considered a separate item. >> the request to remove items from the consent calendar? >> commissioners? or public? no discussion, the public commen, do we have a motion to approve? all in favour? opposed? approved. item number 10.

>> item number 10, improvement number 1, customer and administrative services for community choice aggregation programs with energy solutions, and authorizthgeneral manager to bring and this amendment and increase it by 14 million and extend th extentm of the agreement by three years. >> discussion, commissioners? >> any public comment on item ten. do i have a motion to approve? all in favour? opposed? item 11, please. >> item 11, approve correction to an error of scheduled... adopted by the commissioner on april 10th 2018 by resolution number 18 to include a monthly service chargefo esidenial customers at the wastewater enterprise. >> any discussion?

any public comment in item 11? i have a motion to approve. all in favour? opposed? please read the closed session items. >> item 14, existing litigation. a proppartia propose partial sef action as to property damage. numerous plaintiffs are remaining in litigation. a settlement amount of 28,000. item 15 as existing litigation. a proposed settlement of action with the plaintiffs release of all actions of the city. the plaintiff amount of hundred 99,000. as a president mentioned at the beginning of the meeting, item 16-21 will not be heard today. >> it's or any public comment on matters to be addressed during

closing? do i have a motion to assert the attorney-client privilege regarding the mitre -- items below? all appro

for the rd, this is the may 9, 2018 treasure island development authority board meeting. item number 1, call to order. tsen here. dunlop here. samaha mere. fewsy here. supervisor kim. we do have a quorum. item number 2, general public comment. this item is to allow members of the public to address the treasure island development authority board on the matter that are within the subject matter jurisdiction and do not a appear on today's agenda. members of public may address the board up to three minutes. prior to make your mments, please state your name and organization you're representing, if any,