>> thanks for braving the wind and rain and joining us today. i like to call this meeting to order. thank you. okay, madam secretary, could you please call the roll? [roll call] >> we have quorum. members of the public may make up to 2 minutes of remote public comment by calling 415-655-0001, 24986019823 pound pound. to raise your hand to speak, press star 3. please note you must limit comment tuesday the topic of

the agenda item discussed unless speaking under general public comment and if you do not stay on topic the chair can interrupt and ask to limit to the item. we ask public comment be made in civil respectful manner. address your remarks to the commission not individual commissioners or staff. i like to extend our thanks to sfgtv staff and (indiscernible) those present, please silence electronic devices. >> thank you so much. before calling the first item, i like to announce that the san francisco public utilities commission we acknowledge that we are on the unceded ancestral homeland of the ramaytush ohlone who are the original inhabitants of the san francisco peninsula. as the indigenous stewards of this land and in accordance with their traditions, the ramaytush ohlone have never ceded, lost nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. as guests, we recognize that we benefit from living and working on their traditional homeland.

we wish to pay our respects by acknowledging the ancestors and relatives of the ramaytush community and by affirming their sovereign rights as first peoples. madam secretary, please call the first item. >>etum 3, approval of the minutes of february 28, 2023. >> colleagues, any comments, edits to the minutes? if none, can we have public comment, please? >> members who wish to make two

minutes of comment on item 3, the minutes please press star 3 to raise your hand to speak. do we have members of the public to provide comment on the minutes? seeing none, mr. moderator, any callers with hands raised? >> madam secretary, there are no callers with hands raised at the time. >> thank you. public comment on item 3 is closed. >> thank you. if no more comments, can i have a motion and second to approve the minutes? >> move to approve. >> second. >> madam secretary, please take roll call. [roll call] >> five ayes. >> item passes. can you please call the next item? >> item 4, report of the general manager. >> thank you madam secretary. item 4a is water supply conditions update from steve richie. >> good afternoon

commissioners. steve richie, assistant general manager for water. if i can have the slides, please. as you note, we changed the title from drought conditions to water supply update because things are obviously changing dramatically. even over the past weekday and even in the last 2 days. going into the slides quickly--reservoir storage is about the same and the reason it is about the same now is because of water is falling into snow and coming in is passing out at this point because we have to make room for all the snow melt in the future, so our reservoirs are about the same now. that was my-it was the results i saw yesterday for the

presentation. for the reservoirs around the state, they are all pretty close to at or above average accept for trinity which is a unique case on the coastal side. the california drought monitor, the area of white is much bigger. that is not in drought. the san joaquin area is out of drought conditions. the hetchy precipitation, you see where the red line is tracking 1983 and is about 42 percent here. based on the storms over the weekday and last week, that has now gone up to above 50 percent and right on top of the 1983 line which is the wettest year on record. here is the monthly precipitation. march has been a wet month. we are 9.7 inches of rain now. it was 1.07 a

week ago so had about 8 inches up country over time. similarly in the bay area, we have gone from.92 inches to (indiscernible) a lot of precipitation up country and the bay area. the most interesting slide is this because we have not adjusted the legend box, so you can see here the red line has disappeared below the legend box. it is faintly there up to about 180 percent of normal. that changed. the red line now goes up to basically where it says 2020 up there about a inch above that. that is where it is now. well above 2017, so i think commissioner stacy was commenting on the headline in the chronicle about record breaking snow. we are seeing it very much in our watershed as well. the water

available to the city started to creep up, and this week it has gone from 541 thousand acre feet to 711 thousand acre feet so the measure is it enough to fill the system? yes, we are above that but it will get much bigger because there is quite a bit of snow to melt up country. the precipitation forecast, this is through the 14th and then from 14th to 22 of march, it shows a lot of rain and snow in california and that is reflected. it does appear to be slowing down next week, so i think a lot of people would like a break. i can say from our point of view, we had plenty, so there is no worry there. our demands here show at 149 million gallons per day. over the last 2 weeks they

stayed about exactly the same levels so demands continue to be very flat through out the service area. the obvious question people ask is is it drought over. i like to talk about what we plan to do over the next few weeks. just as reminder you approved declaration of drought water emergency. in may of 22, commission adopted a system wide water use production of 11 percent consistent with the state water board emergency regulations directed by the governor and his executive order at the time. based on current conditions we will recommend the commission find that a local water shortage condition or local water shortage condition no longer exists and the local water shortage emergency should be rescinded and ending

the surcharge. that is a action the commission can take. the system wide water use reduction should remain in effect consistent with the state water board regulations but should be removed once the state water board modifies the regulations so we will communicate to the state water board consistent with the governor's last executive order he asked state agencies to recommend to him changes that should be made and this is a change we recommend if we find certain conditions which we clearly have, that we would move down away from the water shortage contingency plan. we will bring a proposal at the (indiscernible) any questions? >> yes. how are the underground storage, the aquifer? are they being recharged? do we have a monitor or way of knowing where

we are? >> yes, we do monitor our ground water aquifer. fortunately or unfortunately in this case, we actually don't have much in the way of ground water resources. we have a small basin on the west side of san francisco that actually is in good condition and generally flows out to the ocean and so we already have been in good condition there. certainly sure it has come up a little bit. i haven't seen data on that. there is also ground water basin on the north part of san mateo county. that is the one where we have partners that use the ground water basin and where the regional ground water storage and recovery project is looking to take advantage of recharge. we had already recharged it some, so this is just going to be more. the areas that the state is talking about about the really severe ground water shortages are in the central valley. the central valley is

where very frankly california has over drafted the central ground water basin for decades. this isn't new, just more severe as each drought progresss and something the state need to grapple with but our ground water basins are as good condition as they ever have been. >> is the state thinking of grappling with that because it seems it would be something you would do if you are thinking about building more dams, it- >> yeah, i made a joke in the office that after the governor's last emergency declaration on the drought and said well, it looks like any day there will be a flood emergency declaration and sure enough there was, but that was fallowed by another emergency declaration from the governor basically eliminating a lot of the roadblocks to recharging ground water in the central valley with flood waters that have come and are coming from these storms, so

hopefully that will actually remove roadblocks enough to get substantial recharge into our central valley ground water basins. it still a long way from off-setting the over-draft but in a year like this, finding a way to capture more water in the big years so we are reliable back up in dry year s. >> they say it is very costly. is the cost of piping and getting it from where ever it is stored underground? >> recharging the central valley frankly is not very costly. it is a matter (indiscernible) in the strategic location and moving water into either fields or fields that have crops on them because a little flooding is not going to kill the crop. a lot of flooding will, but if you just flood it once

and that percolates you get a benefit there. so it is not very costly, it is hard to work through the state reg yul ulatory system to get authority to use water in that way. that is what is more of a challenge, but i think if you ask any water planner or engineer, this is great idea. >> would that water be used for planting or drinkable after treatment? >> the ground water resources in the central valley are used for agricultural and drinking water purposes and some cases treatment and some cases very little. there are ground water pollution problems in the central valley that have to be dealt with to make it drinkable in many cases and that is what california has been working for a long time. >> thank you. thank you madam chair. >> just also to make a point, when the soil is wet it is little more difficult to recharge so it is like they have to be more

strategic where and when and how they can- >> it doesn't happen the same everywhere all the time. >> right. >> why would they flood it so it percolates down? obviously it is wet. >> in some areas depending what soil you have, gathering water from the floor, whatever cloth you use. >> the sandier the soil the faster percolates. >> if it is clay it sits a long time. >> if you have driven south on 101 in coyote valley there are large spreading (indiscernible) santa clara valley water district uses and where the sandy soils come to the surface so you can get water to drop there 1 or 2 feet a day. >> hopefully we will-any other

comments? thank you. it is really great to see that our demand still is quite flat. i assume just because it is raining (indiscernible) >> i would say there is no outdoor irrigation going on. >> exactly. you can see it there. it is good to baseline that now. that is a good place to be. thank you. public comment. yes. >> members of the public who wish to comment on item 4a, press star 3 and raise your hand to speak. any members of the public to provide comment on this item? seeing none, any callers with hand raised? >> we have 2 callers wishing to be recognized. caller number 1. i unmuted your line. you have 2 minutes. >> thank you. good day

commissioners. nicole (indiscernible) ceo. i just want to say i appreciate mr. richie's report and remarks about the state of our local water shortage conditions, and the actions of the state. i look forward working with mr. richie over the next few weeks to clarify the state of our local water supply situation and to do so in a way that can continue to provide support for the governor and actions state wide with regard to the water supply conditions. thank you. >> thank you for your comments. next caller, i unmuted your line. you have two minutes. >> thank you. good afternoon. this is (indiscernible) policy director for tuolumne river. i appreciate commissioner maxwell's questions and responses. we have been putting a lot of thought into ground water and beyond integrating water management talking to a lot of

folks and the key is to turn problem water, flood water into a resource and i think there are really great opportunities, so we are looking forward to working with collaborators on that. couple comments on the presentation. mr. richie mentioned that the water available to the city from the tuolumne so far this year is 711 thousand acre feet. that is all most an average year, and we have all that water in the snow pack and more precipitation coming so it will be a phenomenal year. if you look at the 711 thousand acre feet, that is more then 3 times what you need in a year. last year demand was 182 million gallons per day which translate to 205 thousand acre feet demand in a year and you already received 711 thousand acre feet. the sfpuc

has phenomenal water rights and if you acknowledge that life would be a lot easier, but when the system isn't completely full there is this fear that we will hit this long drought. when the water shortage emergency was instated november 2021 you had 4 and a half years worth of water in storage, so please take a look at policies. now is the time. thank you. >> thank you for your comments. madam secretary, the call queue is clear. >> thank you. public comment on 4a is closed. >> item 4b- >> go ahead. >> mr. richie, what would the impact be if we did take a year off the drought-i think it is 7 years or 8 years, what would be the impact? >> the question is,

what would be the impact if we took a year off design drought? i think we looked at that and think tuolumne river trust has looked at that and it does put one level in greater risk. it does mean that we would be able to not have as much water getting through that. it is just a matter of how much risk that the commission and the customers are willing to take. it boils down to that and that is something we have talked about at length. that is what they artic ulated and argued for. also as long as we are talking about it, mr. (indiscernible) keeps saying we have phenomenal water rights. we have really good water rights, but the irrigation districts have senior water rights to ours and so that plays into how

we have to worry about a drought, because ultimately the water in the river when it is really dry conditions, it belongs to them as a right and not to us. >> thank you. no more comments? >> item 4b is presentation audit financial statement. nancy hum. >> good afternoon president and commissioners. nancy hum, chief financial officer for business services. also joined mere today by lisa (indiscernible) the managing director for kpllg and deliver the second portion of the presentation and provide financial statements for fiscal year year 21-22.

pleased to report to the commission kpmg ish aooed the fiscal year 21-22 audited financial statements january 27, 2023 for the water enterprise, wast water enterprise and hetch hetchy water and power and clean powersf. sfpuc is the only city department that issue three audited financial statements along with the award winning annual comprehensive financial report and popular financial report each year. the later today are in the communication packet. these reports are now available to the general public on the sfpuc website. i are wanted to highlight 3 areas before i hand it over. the financial audit was noted with unmodified opinion and that means there were no material misstatements in the financial statements themselves and there were no internal control decisions as

noted. that's my portion. i will go ahead and hand it over to lisa. thank you. >> thank you. good afternoon commissioners. lisa managing dreblther with kpmg. i appreciate the opportunity to be here today to present the results of our audit and-let me get the slides up here. thank you. i first want to start by thanking puc for cooperation. we did the audit it was a hybrid. part was virtual and on-site work looking at large contracts, personnel documents, things we didn't want transmitted over a shared file. we did issue the audit the end of january and annual consolidated report is all most 400 page report at the end of february so a lot of

work went into that so thank you for the cooperation. we had a very extensive set of audit procedures that we conduct, so it does take months to conduct the audit and i'll get into the results of those and procedures we had conducted during our time here. this slide here, so we communicate with management on daily basis and management is mainly finance accounting management, but as part of the procedures we are required to present to you either in person or letter the results because ultimately our report is addressed to you. this is the time we have here. thank you for allowing us to do that. so, you see a lot of check marks here and don't want it to be misleading, because like some things that are checked next to are usual transactions. that means if it is check mark it was good. it looks a little funny, but if there is a check mark it is a good

thing. so, there were no audit misstatements, no uncorrected or corrected misstatements. the items here that i do have page numbers next to, doesn't mean there was anything of finding but i want to highlight some of those items further. also glad to report that there were no fraud or illegal acts noted in the audit of the year and also just have to report that we are independent auditors as we conduct our work. in our opinion, as mr. homsaid, we did issue a clean or unmodified opinion. there is one additional paragraph in there because we do mention throughout the report the word city of san francisco is used quite a bit but have to clarify our opinion extends only to the entities applicable to puc department. so, when we conduct our audit, we

obviously focus on bigger amounts, but we touch on pretty much every aspect of the financial statements in order to give a clean opinion. one of them is the balance sheet. we look at cash and invest ments so very large balances. the puc cash is pooled with the itisy treasurer so the audit procedure makes sure that portion that relates to puc is report ed on puc financial statements. the market flucuates. also looking at pension and opeb dollars aside from debt the largest liability on the book jz require a lot of estimates. you try to estimate how long people will live, what salaries look like, the liabilities you have to pay out once these city employees retire. we have actuarials a slew of specialists making sure the estimate is fair

and reasonable. revenue, we look at all the calculations, invoices, support for revenue coming in and the capital assets again, just numerous projects we have going on. we look at projects and cost capitalization, those type of things conducted one puc department. and then new this year was leases. it was a standing that required puc to put any leases they have on as a lesser or lessee on the financial statements. so, i know those financial statements like i said, the consolidate d report can get to be 400 pages but grows with the guidance the standard setters put out. when we look at estimates i mentioned estimates that we have to look at. we did note bias with the estimates so it was fair and reasonable and the balance in the financial statements are fair

and accurate. disclosures, so some of the more significant disclosures you see accompany the large balance of financial debt. there is a lot of information in there on the various debt issuances outstanding and what the funds are used for. pension and opeb, a lot of information is in there. the reason all that information is in there is because standard setters require that level of detail be included so we have to make sure that level of detail is included, it is appropriate, some of the wording is consistent, the language the standard setters want to use so readers can look at financial statements throughout the country and be able to follow consistently. again, those disclosures we concluded were fair and reasonable for the puc financial statements. at the beginning is a section

called management discussion and analysis. there is a lot of information and a lot is required to be included. however, management takes several pages and summarizes all that information. very helpful information that includes trends, ratios, if you want a good snapshot of the financial statements that is a good place for readers to start. that section is not audited but we have to make sure it doesn't contra dict anything identified in the audit procedures. like i said, we work with management on day to day basis and have frequent communications with them. we talk about the responsibilities they have, responsibilities that we have. we want to share some of the standard inquiries we have here as well just so know what we talk about at some of our meetings. we do have

these communications as we said, if you have concerns to us as auditors feel free to reach out, but wanted to include thealist of questions we ask of management as well. that concludes the prepared remarks that i had. i just wanted to see if you have any questions for me as the auditor? >> colleagues, any questions? commissioner maxwell. >> i think i missed where you said a good place to look. where is a good place to look? >> management discussion and analysis. it is right after our financial statement opinion. it is maybe 5 to 10 pages worth of information, but it includes summary tables of all the financial information and again ratio analysis so you can read and see okay, revenue increased this month, capital projects increased this month, we paid off this much debt, those type of things. it is very very helpful

information. >> thank you. >> is there-obviously there are so many best management practices in the process and sure you fallowed every one of them. just thinking, are there things that we should closely watch? are there like not red flags, but orange lines that good to pay attention to as a institution? >> yes. one thing is a lot of the debt is large part of the balance sheet and there are requirements that puc must follow. you must have a certain debt ratio, those type of things. there are covenant requirements that have to be followed and we meet with management because sometimes if those things are not met, they could lead to

questions from regulators so that is one thing we do look at and have processes and procedures to comply with that. we haven't had concerns over that piece. again, just bottom line in government entity isn't always good enticator because of the service you have to provide service to the constituent so looking at the debt and capital balances are important, versus focus whether you have a net income or profit or loss. >> in your practice, i assume you are work ing with so many utilities and different sectors, are there things that we can potentially learn or best management practices beyond what you use for audits and notice others use it is good for us to think about or consider? i just want to make

sure we use this opportunity to also learn, not just audit but also learn and make ourselves better. if any of those exist, we would love to see them. love to use them. i know every utility is different, every community is different, but there are certain things that potentially can be used across the board. >> i always recommend that-i know that there is organization side and supply net side. i know there is workshops, conferences, things like that, a lot of them are virtual. things going on in the industry. i focus on the finance side of things to make sure the financial statements can comply with what other users do. i know they are willing and eager to make sure they stay as a leader in industry. california unique. a lot of my other utilities, i work in other states as well,

but staying on top of the regulations. >> thank you. any other questions, comments? perfect. can we have public comment please? thank you. >> members of the public who wish to comment on item 4b, please press star 3 to raise your hand to speak. if you have members of the public present to comment on item 4b? seeing none, mr. moderator, any callers with hands raised? >> madam secretary, i have no callers with hands raised at this time. >> thank you. public comment on item 4b is closed. >> item 4c is water enterprise capital improvement program quarterly report from katie miller.

>> good afternoon president ajami and commissioners. katie miller, the director of water capital program and today i'll present a update on status of projects in the capital improvement programthened of second quarter, december 31, 2022. if i could have the slides, that would be great. these pie charts show the status of 36 projects in the program with total budget of $3.3 billion. expenditures at the close of the reporting period were $1 billion extended with 31 million extended during the quarter. this table shows summary of program costs forecast by category for all active projects. you will notice there are several new variances this quarter with $125 million in forecasted cost increases for the regional program since last

quarter and $301 million in forecast cost savings for the local program. this quarter the project variances all align with the revised project budgets and schedules you approved february for the future fiscal year 2024-2032cip. many project budgets show increase for various reasons and i'll provide more details on the variances in a minute. this pie chart and now talk about the regional program. this pie chart shows the budget for 25 projects in the regional program in each phase of the program. the number of projects current ly active in each phase is shown in parenthesis. these slides show all the quarter variances for the regional projects and reasons for the variances that

are categories stored as data for each project in the project control system. this is a alignment with your previous request for us to collect and analyze the variance data for trends and patterns. ten out of 25 of the regional projects are forecasting budget variances and have requested the budget changes in the upcoming 10 year cip budget. note most of the budget variances are projects in planning, which is normal and appropriate as scopes develop. fourteen out of 25 regional projects forecasted schedule variances for various reasons. the largest schedule variance are projects and planning which again is appropriate. however, schedule delays for project jz design, bid and award and construction are more concerning and deserve further analysis for trends and patterns. note that

scope refinement additions account for several schedule delays, however staff consultant and contractor resources have also contributed to some of the project delays. here is a few more of the schedule variances. a lot of projects slated for the next budget process. now i'll share highlights for the projects. for the sunol water treatment program has (indiscernible) schedule variance of 5 months. this is for scope refinement and necessary scope additions that were added during design phase. an example of this was the decision to construct four ozone contact basins instead of two for additional flexibility at the plant. for this project during the quarter 95 percent design continued and decisions were made regarding including the upgrades to the water recovery system and

excluding the decamp pump station for the project and differing that to a later time. this is a example of the kind of scope decisions that changes that have been happening during design phase. and finally, we are investigating applying for state revolving funds low interest loans for this project. for the sunol long-term improvement project contract b is alameda creek watershed center there is a budget variance of $9.6 million and scheduled variance of 29 months. this is to accommodate more detailed design of some of the exhibits, miner scope additions, and adding 2 year extended warranty period to the contract. during the quarter the contractor continued punch list work, exhibit work and worked on the o & m manuals. at the harry tracey water treatment plant (indiscernible) work start #d to

remove the existing plastic water drains-the corrosion control project had the construction contract awarded and notice to proceed is anticipated this month. this map shows the project work is happening throughout the bay area and this project is on schedule. and now i'll shift to the local program. this figure shows the total current approved budget for the 11 local projects and each phase of the program as of end of the quarter. similar to the regional program, the variances all align with the revised project budget and schedules you approved in february for the future fiscal year 24-33cip. there were 4 projects with budget variances. of note is the decrease in the

local water conveyance distribution system budget, which was made to accommodate the 10 year cip budget goals, as you recall. there were 4 out of 11 projects with schedule variances. note we continue to evaluate the variances for trends and to better control the project budgets and schedules. couple project highlighted. the san francisco west side recycle water project, the contract a finished work on the southeast plant and continued on the operations and maintenance manuels. for the pump station contract, the preliminary start-up plan submitted and for irrigation system retrofit at lincoln golf course was completed. the reservoir project made significant progress. the budget variance of $6.5 million is a

decision to add the roof substructure as a change order to replace this during under the contract. this was something discovered during construction despite having inspections during the design phase we discovered the condition was much worse then anticipated so this will be added as a change order. the emergency fire fighting water system, new potable emergency firefighter water system pipeline was installed along 19th avenue. this is the first of our potable emergency firefighter water system projects in construction for the west side of san francisco. with that, i would be happy to answer any questions. >> commissioner paulson. >> so, in particular under the planning stage, i understand that things get discovered and engineering happens and whatever, but if we put it in perspective and not quite sure

what the perspective is pre-pandemic, during pandemic or any of the other possible variables that sort of calendar, how would you in general explain this particular report visa viothers in terms of the calendar, in terms of the scope and in term s of the changes, because if you look at it, it looks like a lot. that's just the nature of construction and building things, but how would you explain this report you gave today versus one that maybe you would have given 10 years ago or 5 years ago or basically sort of like from the inside-what is going on here? because, there are times when all a sudden a red flag comes up or not. just in that context and perspective, if you could just in your own simple words, just put this in perspective. >> sure. regarding the variances, which again were part of our proposed budget to reset the projects, we

can really see a trend that over half of the projects have schedule extensions. there are some budget increases, but there are more miner as projects get into construction. but it is something that we are taking a hard look at. we are coming out of covid. we have had staffing constraints due to covid and also seeing our consultants and our contractors are having staffing constraints, so schedules we thought we could meet, we had a lot or difficulty meeting and so have the companies that we work with. that definitely is a contributing factor. another factor is that this particular budget cycle we worked really hard to make sure we are spending down existing appropriations and not over-asking for budget where we were not sure we could spend it, and in some cases that involved pushing projects out in order to make sure

that we truly could meet the deadlines we are talking about. like we built in contingency in order to assure that we could spend those appropriations. it is a lot more scrutiny on the fiscal accountability to make sure that we are truly meeting the schedules. that being said, we are continuing to look at this. it is not good to continually push schedules out and need to do what we say we are go toog do and continuing to look for ways providing more accountability and assuring we can meet the milestones and the budgets we are responsible for. >> great. in terms of diligence, obviously you did mention staffing is a big issue for pushing things out. people are just not as staffed up as they could be and talked about covid. is there anything different because assume you

will be diligent, between now and 10 years ago is there anything other then covid that trended to make this look the same 10 years ago accept for say covid? not putting 10 years as a specific date, just again talking about perspective and thanks for your answer. nuts and bolts approach. >> i will share my perspective since i was here 10 years ago. our capital program is triple what it was 10 years ago and some of that is the puc experiencing growing pains to accommodate a full cip for water, power and sewer. we are working really hard to get visibility into what those constraints are, and resolve those through procedures, through additional resources, through better communications, better tools. but that definitely is contributed as we got the same staff

doing 3 times as much work. >> great. that's a good perspective the last piece because we are doing more because we are a town tat gets stuff done and agency that gets stuff done, not just here but all over the place. it is getting bigger and the need is tremendous. thank you. >> i want to acknowledge, glad to see this as you know it was something i was quite interested in and appreciate seeing that you are putting the data together. so, one thing i would say is, the whole timeline thing, i totally understand, but i think at some point we have to look at the data and say, it is one thing we may need to extend the time or push projects to another fiscal year to be able to handle them. it is another thing-put covid aside. obviously it was out of everybody's hands but there are

other things that happen in construction that can delay the project or things that may happen. i think you it would be good for us to have some stop gap measures in place to make sure we as a agency are protected when are a construction company has to delay for other reasons. goes back to the conversation of risk and benefit handling the risk and benefit and where they fall in the process and the accountability. i think with this data we can see some of that. hopefully that can inform our process more, the goal of gathering the data is to inform the process obviously. i think it is planning. i totally understand as you plan things things can change but design is a little different. as you go into the project, the cost of changing becomes higher and

higher. that question is always there. i still am very interested to know the process of bidding. how people bid. we go with the lowest bid, is that a strategic decision? do we need to rethink that process to make sure we don't end up picking bids that end up at the end of the day getting to the point of other bids that came in that are higher? being able to have a multi-faceted perspective on this is also important so as you gather the data, i think it is good to keep the data on the bidders like who bids in the projects, how much was it, what was the timeline they provided in this process too. again, acknowledging that anybody in this part of the process can make mistakes not have the right information, miss data or

lot of different things but it is important to make sure we are not always on the hook for the changes and everything. and the timeline is a little different, but and i can understand staffing is a big issue. one other thing i would say, as we come out of this process, there is also the process of being able to operate and maintain these systems over time, right? you build them and now you have to transition from build ing to operating and maintaining them so we actually have to put something into this that as you build all these things, do we have enough capacity to operate and maintain all these systems we have design and build? some are replacing old ones but some are brand new ones plugged into our existing system. what is needed for that? having the foresight is important too. thank you. >> thank you. if i can respond. the first issue is

risk and agree we need to look at risk earliers. a lot of things scope is thought about we need to add and during design and construction and think if we had a better overall view of risk we might be able to mitigate those earlier. assistant general manager robinson has a strong interest in this as well and will look at risk in the preconstruction phasing a lot more seriously. i wanted to acknowledge your statement about the bids. we do adjust our engineering estimates so they go up with the scope additions and that type thing. we have had a very good bid climate in spite of covid and have most of our bids have been coming in at or below engineer estimates, so that is good but we are considering to look at alternative delivery and other ways we can more closely match market conditions.

lastly, want to acknowledge thank you for sharing the importance of looking at operation and maintenance requirements. that has come up for us often and i think all the programs, so we are trying to think harder about how we can better foresee the operation and maintenance needs resources technology training much earlier in the project and start ramping up for that. >> thank you. i think going back to the bid comment you made, i think it is one-wonderful we get multiple bids and that is great. we don't want to be in a climate we only get one bid and have to go with it, but tracking what these bids are coming in at and what the end of at the end paying for the one that we pick is also valuable, right? i know we don't end up selecting those and we don't know how it would have evolved if it was company a versus company b, but it is good to kind of

have all that information in our back pocket in case we have to look back and say we could have picked company b and maybe they would have captured a lot more. maybe they anticipate certain things we were not anticipating or this other bidder hadn't anticipated. i think it is all information and data points that can help us to be better at the process of selecting bids, accountability process, the risk process, those are all feed into that process at the end of the day and ultimately we want to make sure we are running this ship in a safe and (indiscernible) way. commissioner maxwell. >> thank you. are there some-is there a city policy where we have to take the lowest bid? >> yes, for most of our contracts we do competitive low bid. >> and so, are there

any other possibilities you could look at and maybe-there is usually a way out of something. is there another way you can look at things sometimes to consider another kind of bid rather then the lowest? >> yes. it is called alternative delivery and it is used more and more throughout our industry. the airport relies on design build contracts all most exclusively, and i'm going to turn to assistant general manager robinson to share with you more how we tried that and how we are looking at it a little bit more. >> assistant general manager. yes, thank you katie. the majority of the construction work is traditional design bid build where we take the lowest bid. however, alternative delivery creates alternative way of doing that and there is a trend that is not

called alternative delivery but more integrated way to do things and sharing the risk. specific examples are the construction management general contractor (indiscernible) and we have design build now using on treasure island wastewater facility and progressive design build on hetchy and bulk head work so starting to try experiment and look at ways to base the evaluation of selecting contractor on more then cost where we get qualifications and experience is how we make the selection but it is complicated and new and not necessarily new, but newer when the majority of the work is on design bid build. >> we just had something recently we were trying to change language-alternative delivery public partnership, you are trying to change language to enable that. do you want to elaborate? >> i did not mention public private partnership if that is

what you are referring to. we went for a spolesh ordinance to allow to work through chapter 6 and chapter 21 to do design and construction with one entity. a small part of what is needed for the end product. that is where we can get creative and think how we work through the processes to be able to think differently about who we do our work. >> i remember the airport. not going to mention the name, about change orders. we had a huge issue with change orders and i think we learned a big lessen from that so the change order probably the way we go about doing them is very different these days then it used to be. >> i think when i hear the word change order to not profit we accept a low bid you then work through change order processes as change orders happen during the duration. alternative delivery is different. we partner together. i summarize and think of the difference between cost and

price. what does it cost to do work. the price paid or sometimes flip vice versa. the ultimate cost is what you roll with all the change orders during the process. alternative delivery have a better understanding early and now looking at whole life. >> just before we go i want to say even on the alternative delivery and public private partnership, if you don't set those upright they can be problematic so there is no like silver bullet, it is about how you manage age risk and accountability in the process. commissioner paulson. >> i don't want to micro manage what you are doing, particularly because of the comments that you are making based on the questions i heard so far. do talk about certain things. for example, when you talk about risk in particular, i understand risk

with a capital r and don't for a living do small risk because that is what you do. you are hired to do to figure out. for example, when i first got here there was a project, a major project and part of the delay is because there was during and before my time so don't think it was design build but there was a major project where something was going to be done and instead of going in and digging and do it was discovered this want just digging you have to take out 600 thousand granite before you can do stuff which -somebody comes in and bid $1 and somebody else $600 thousand granite before you can do stuff which-somebody comes in and bid $1 and somebody else bids hundred million dollars, you say by the way, did you take into account this is concrete, not black top? just giving

remedial examples. is this what you mean about risk when you make decisions like, before we put this out to bid how much do we have to find before we come in because the surprise party, in this particular case something was found that was not even anticipated apparently. so, i guess that is my convoluted way of asking the question, how does the risk come in, because i assume this is what is happening up there on golden gate avenue is people are sitting down and somebody comes in with bids and tack talk with the contractors. the engineer says did you count on this because this is high or low and you sort that out. it isn't over the cardboard table you have the discussion but that is part of what you do for a living so in terms of risk, where is the cut-off point where you have to go and get this out otherwise it never will get bid? >> thank you for the question. >> that was a question. thanks

for honoring me by calling that a question. >> as we go to bid, the contractor and proposers look at the availability information to make their bid against. the more transparent and open about doing our homework and providing as much information as possible the level playing field and more transparent way to put forward their best understanding of what 2 takes to do this project from the scope defined. you can't necessarily always capture all the information. there is potential for something unforeseen but the job is put as much out there in a fair and transparent way. when we talk about risk and katie mentioned more risk earlier in the project phases so by the time we get to the bid point we have a good set of plans and specifications and enough information to communicate but as the project moves through early planning and design phases, and internally as we move towards producing the bid set we want a better handle on what risk means and to your question so we can then bake in

do we need more detail in certain parts of the project to give better information to the contractor to manage risk. that helps us know where to put energy during the design process to make sure we communicate as much as we can. bringing the process earlier during project delivery will help expose some things that may have been unforeseen in the past and at least have a better framework how to adjust and adapt if there is something that is unforeseen. >> i give you creed for when out in southeast all a sudden things come in high, you put a pause on that and went down and did things you just explained and that shows the diligence that you guys are up to because it is always especially with the huge infrastructure project always something that sometimes i wonder how the person in charge of a project can sleep at night. what if i

forgot this, which is the same thing a contractor does. why did i get the bid and what am i missing so i get that and know the diligence happens. thanks for that explanation. >> thank you. commissioner herrera. >> yes, i wanted to make a couple comments. i absolutely empathize with you and your team. capital projects are a huge responsibility and i know that there is always unforeseen issues that come up. it is like you can plan this as much as possible and then things come up and the other thing is i did want to underscore something that president ajami stated. the design build isn't a silver bullet. sometimes rfp is a better fit for certain projects, sometimes design build is better. it just trying to forecast and following the city administrative code that sometimes is not as

accommodating for what we are trying to do, and the other thing that i wanted to mention was that sometimes from when a project starts and we start moving forward through that city process, by the time you come to the point where you actually bidding out or is a pre-construction meeting, it has been so long that construction materials cost changed, maybe even lighting changed. maybe it was designed under florescent light jz now there are new led lights that are leed certified so you have to change it and it is kind of this ongoing internal battle to get this project moving forward so i want to thank you for everything that you are doing and i also do agree with president ajami in terms of getting extended warranties or service agreements. it is

usually that critical first year or two if things go down it is nice to have that vendor come back and work on their equipment and make sure it is up to speed, but thank you very much. great presentation. >> thank you so much. if you have a comment-commissioner- >> i will just share we are getting extended warranty on the new watershed center, and there is a lot of very sophisticated equipment out there, so we think that is very smart, especially as we transition over to operations and we will be looking at more of these type of maintenance contracts or some way to transition that more gradually over to the operation staff. >> thank you so much. can we go public comment please? thank you. >> members of the public who wish to make 2 minutes of remote public comment on item 4c, please press star 3 to raise your hand to speak. any member s present to provide

comment? seeing none, any callers with hands raised? >> madam secretary, we do have one caller with their hand raised. >> thank you. >> caller, i unmuted your line. you have 2 minutes. >> good afternoon commission. this quarterly report identifies schedule and cost changes for projects in accordance with the 10 year capital plan adopted in february. some of these changes are significant. for example, the sunol long-term improvement project cost increase and schedule delays. i appreciate commissioner paulson's question about putting the variances into perspective and also appreciate mrs. millers thoughtful response and the dialogue and conversation you had since that point. i strongly urge the commission to continue to pay close attention moving forward to this matter given

the concerns raised with puc ability to execute this capital plan. these improvements are necessary to insure you meet your obligations for the wholesale and retail customers. thank you very much for your time. >> thank you for your comments. madam secretary, no other callers wishing to be recognized. >> thank you. public comment on 4c is closed. >> 4d is water system improvement program quarterly report from katie miller. >> thank you commissioners. now i will provide update of water system improvement program for second quarter of fiscal year 22-23. can i have the slides, please? these pie charts show the program is still 99 percent complete, same as last quarter now with only 2 project remaining in construction and one close out. $3 million spent by the

program and $86 million remaining in budget. the project sunol region completed the last job order contract for the alameda creek diversion dam project and that project is closed out. this shows the status of two remaining active project. the alameda creek recapture project is variance of $9.4 million which is increase of $4 million from last quarter. i will provide a couple project highlights. for the regional ground water storage recovery project, during the last quarter administrative close out of contract b performed and you commissioners accepted the work for contract closeout january 10. this contract for the total value of $62 million installed 12 of 13 wells and treatment facilities in the regional system. most of these wells were transferred

to water enterprise for future operations and maintenance. also during the quarter, contract c to mitigate corrosion damage and other improvements continued work on third ground water facility. the final contract for the south san francisco main well is still in pre-construction and we continue to coordinate on the easements. for the alameda creek recapture project, as i reported in previous quarters, this project is assessing change field conditions, particularly erosion of the pond banks and corrosion on the pipe that the new pump station will connect to. this photo shows significant erosion in the area where the new pump station pipeline will attach to the shore. note during the quarter the operated initiated planning studies for erosion repairs and long-term bank stabilization work. during the quarter, the contractor submitted price quotes for the potential change

orders for the flexible piping and corrosion repairs. the cost to implement these changes coupled with scheduled delays and additional soft costs are forecasted to cost additional $5.5 million. with cost variance of $9.5 million to date, the project team discussed with water enterprise if a longer term solution is needed before constructing this major facility. water enterprise operations staff expressed new concerns with maintaining the facility, particularly with the larger and heavier flexible braided steel pipelines that are part of design changes. discussions are ongoing to find the best solutions. we will report back to you further in the next quarter on planning and decision making to stabilize the bank and assure the facility we build is readily operated and maintained. and that's it. happy to take any

questions. >> colleagues, any questions? thank you. can we have public comment, please? >> members of the public who wish to comment on 4d, please press star 3 to raise your hand to speak. any member s of the public present to provide comment? seeing none, mr. moderators any callers with their hands raised? >> madam secretary, we have one caller in the queue. >> thank you. >> caller, i have unmuted your line. you have 2 minutes on item 4d. >> good afternoon commissioners. nicole (indiscernible) ceo. i appreciate the report that you heard from mrs. miller about the implementation of the water system improvement program. (indiscernible) two remaining projects. the projects are designed to provide dry year supplies that enable the puc to meet the drought reliability

service goals and obligations to the wholesale customers for reliable water supply, therefore it is vitally important these projects are completed in a way you can both operate and maintain them to meet these water supply level service goals and look forward continuing with discussions with your staff as they consider what changes need to be made and also assume communication to the state given these projects both remain under oversight of the state in accordance with (indiscernible) thank you very much. >> thank you for your comments. madam secretary, there is no other callers wishing to be recognized. >> thank you. public comment on 4d is closed. >> madam secretary, before i close my report and move on to item 5, last week at the southeast community center the puc we hosted the mayor department head meeting at the southeast community

center and it met with rave reviewed. we offered tours to our patrons and colleagues and everybody was incredibly impressed with the work and the programming and the staff commitment at the southeast community center and it was great to see and i think everybody was a little jealous. i just want to let know that. that concludes my report. >> thanks for sharing. that is exciting. can we have next item, please? >> we need public comment on that item. >> members who wish to comment on item 4e, please press star 3 to raise your hand to speak. any members present to provide comment on that item? seeing none, any callers with their hands raised? >> there are no callers wishing to be recognized. >> thank you. public comment on 4e is closed.

>> please call the next item. >> next item is item 5, consent calendar. >> any comments, questions on the items we had on the consent calendar? can we have public comment? >> members of the public who wish to comment on item 5, the consent calendar, press star 3 to raise your hand to speak. any members present to provide comment? seeing none, mr. moderator, any callers with their hand raised? >> madam secretary, there are no callers wishing to be recognized at this time. >> thank you. public comment on consent calendar, item 5 is closed. >> colleagues, if you have no questions can i is a motion and second to approve this item? >> move to approve. >> second. >> thank you. madam secretary, please call the roll.

[roll call] >> 5 ayes. >> item pass. please call the next item, please. >> next item is item 6. approve a form master license for outdoor distributed antenna system pole instillation and delegate authority to the general manager to execute the 2023 master license and pole license agreements allowing wireless telecommunications provider tuesday install facilities on sfpu c poles. reach final agreement with at&t verizon exe net and mobile lite. projected to cover the cost to implement the agreement. >> thank you commissioners. barbara hale assistant general manager for power. power enterprise request you approve the terms and

conditions of and authorize the general manager to execute the 2023 distributed antenna system master license agreement and form pole agreement that go with subject to board of supervisor approval. we also ask you authorize the general manager to enter into amendments or modifications that don't materially modify the commission obligations, liabilities or diminish the benefits that are anticipated. by way of background, the puc initiated the antenna system program in 2014 and signed agreements with various telecommunication carriers. in 2018, a federal communication commission decision put things in a period of uncertainty. they interpreted federal law among other things limit the amount of license fees that state and local governments can impose on

telecommunication carriers for use of the public right of way, street light poles and public right of way. because of that ruling the city sat down and when i say the city i should be specific. mta, puc, city attorney and the office of work force and economic development and worked out the current licenses before you. master license agreement that is fcc compliant, so it has fcc compliant rates and practices. the puc5 existing master licenses remain in effect so the licenses remain in effect until they expire and the license fee is capped, the puc has modified in this agreement the permit and activity fees schedule to insure we get cost recovery. we added new activities to the

fee schedule. for example, we are charging fees for performing site visits and field repairs, for use of the conduit, things we hadn't before. once the mla master license agreement before you is approved, the carriers will be paying the rates and fees that are listed in this new agreement for any new instillations. the commission secretary read out the agenda item which was inappropriate. it included a error, ours not hers. that it listed mobility among those carriers. we don't have agreement yet with mobilitie but do with crown castle so a note to self-it isn't mobilitie, it is crown castle. we'll go to the board for approval because

the master licenses are 12 years in term or could result in revenues greater then a million dollars. in excess of million dollars. there are a couple amendments that i like you to take to the resolution. on page 2, the second whereas, references the mayor's office of economic and work force development. we were corrected, we should remove the word mayor's and just be office of economic and work force development so you also delete the m and acronym that follows. and then on page 2 as well, the first resolved, line 2 refers to the master license as the revised master license. for clarity, that should read, 2023 master license. we have 2014 master license and 2023 master license. and with those changes, i ask for your support of the amendments and

then the item and happy to answer any questions you may have. >> commissioner stacy. >> thank you. mrs. hale, i understand that the city's processing costs, the permitting, inspections, those are now being transferred sort of away from the license fee and into the permitting set of fees and the application fees, is that what you just said, correct? >> that is correct. we have a capped use fee and then we have recovery of our costs through different-this activity schedule. the fee schedule. >> and the city retains the ability to disapprove new instillations or to require removal of existing instillations if it interferes

somehow with the provision of the street light service,b is that right? >> that is correct. we retain discretion. >> okay. i know that we are very limited by the rule and the interpretation and 9th circuit about passing on the cost of erecting the street poles. i have to say it it sticks my craw that cost is born by the governmental entity and i would hope and expect that the customers might receive the benefit of that reduced cost in the future, i guess as of 2027. i won't hold my breath, but i do-i think there is a more equitable rule that could be worked out and it is unfortunate it isn't the way the regulation was set up. >> that gives me a opportunity to thank city attorney for the support they gave us in arguing the case at the fcc. we were

not successful but we gave it a try. >> thank you. >> yes. so i had a couple questions regarding the contract. the first one is in reference to the rf that will be iminated from antennas and repeaters added to the poles. are we are addressing the -having a third party or independent assessment of the rf once construction is completed so we are following federal guidelines and insuring that these apparatus are safe for the public? >> so, the contract before you does include radio frequency and elect romagnetic field reporting requirements and noise requirements. that provision requires an independent engineering consultant to perform

that-to perform those reporting functions. >> okay. and my second question is, do we-does the agreement also require the vendors contractors involved to submit licenses and certifications that they are indeed qualified to do this work so that we are getting a safe quality product once the work is completed? >> yes. in part. the contract does require through personnel safety training and through notice of licensee work sections that these certifications be present, right? and that staff--the work force installing are trained properly. these could be dangerous

environments they are working in with high volt age lines. one change this version does include is in the exhibits. the exhibit a-5 is where the puc has prepared a document that the applicant fills out with the check list and in this revised-shouldn't say revised, the 2023 master license agreement that is before you does have the requirement that the instillation contractor be identified and that their contractor license be included so we do have that information and we will receive that information routinely. i think what you are asking for might go beyond that and that's, will we have additional documentation beyond the electrical contractors license number? that is certainly something that should be available to us in the

way the contract has been written, because the contractor is required to meet those requirements, and so that is a practice that maybe we can take a look at. how are we enforcing that, how are we checking it? maybe we can do occasional audits just to make sure we are comfortable that this contracting community is really staying up to the standards that we are looking for. these licensees i should say, are meeting the standards we are looking for. >> thank you so much. >> i wanted to thank commissioner rivera for the questions. i appreciate, especially the one on the elect romagnetic field is a big deal so thank you for asking the questions. >> excellent. thank you so much. >> thank you. >> can we have public comment, please? >> are members of the public who wish to make 2 minutes of public comment on item 6, press star 3 to raise your hand to

speak. >> we have a individual who is here. >> yes one moment. if we have any members of the public present please come forward. >> good afternoon. my name is tim franklin, a outside plan technician with communication workers of america, local 9410 and resident of san francisco. i have been here since 1989 and i would like to provide comment on the master license agreement for the outdoor -antenna, the systems. as a lineman for nearly 23 years of service i work in the streets every day and i know it is important to have high quality labor standards like mr. rivera commented on and make the right of ways safe and protect the workers and the public. employment with the

tele-industry is extremely fragmented in infrastructure and companies rely on the network and subcontracts to (indiscernible) lay fiber and small cell. the multilayer contracting agreement can make it very difficult for a city and companies to hold accountability. san francisco we all know experienced negative ramifications back in 2019 with the explosion on geary and i believe parker. actually a verizon contractor actually plowed into or got into a gas line and caused the explosion with 50 foot flames. it took hours to extinguish the fire and caused substantial property damage that still hasn't been repaired.

in section 7.6.2, the proposed agreement to state the license or to provide the city with schedules of all activities and list of names licensees- >> thank you. your time expired but we have your written comments you provided. they were provided to the commission and they will be included with the minutes. moderator, do we have callers with hands raised? >> can we have-you have questions? >> i want to see were you suggesting a amendment to this item? >> thank you for the time. what we are asking for is just to require the licensee to provide their license and also that we try to collect data. we couldn't get any information, nobody is

collecting the data. we don't know how the contractors are when they start the work and we work with san diego, they are providing us with the information for the right of way. we just want accountability and the information to be accessible to us. >> thank you so much. is there any public comment online? >> mr. moderator, do we have caller snz >> there is one caller wishing to be recognized . >> thank you. >> caller, i unmuted your line. you have 2 minutes. >> (indiscernible) coalition for san francisco neighborhoods speaking on my own behalf in strong opposition to the contracts. this will be 12 year contracts as opposed to 8 year contracts in consent calendar items 5d and 5e. the current 2014 master least will not expire until 2027. the

(indiscernible) relate #d to power to these wireless antennas has not occurred. the fcc decision in 2018 was under the trump administration. under the 2018fcc decision, the current fee of $5300 per pole per year would be reduced to $270 per pole per year which would generate really no revenue for the puc accept to cover administrative costs. even though the puc appealed the decision to 9th circuit court of appeals (indiscernible) rather then locking the puc into a deeply flawed contract for 12 years, the city should appeal to the biden administration to review the 2018fcc decision. thank you. >> thank you for your comments. madam secretary,

there are no other callers wishing to be recognized. >> public comment on item 6 is closed. >> thank you. commissioner rivera. >> thank you president. i just wanted to add my own comment to this issue. i remembered something. i actually did respond to the incident on parker and gary ir geary with my team and upon our initial assessment, we found that the crew on scene were not qualified and they were a subcontractor of the vendor awarded the contract. it was really difficult to assess what was happening because of the minimal amount of information we were getting and also there was a extreme amount of damage to public property and also potential injury to firefighters, first responders, pg&e and a lot of city workers, so i think that it

is-we need to make sure that this incident doesn't happen again. that we have qualified people on the scene. >> just a question for you, if i recall there was a issue related to not having all the maps of utilities as they were doing the work there as well. isn't that the case? >> that is correct, and there was a national transportation board hearing that was conducted and there was a lot of issues we found that were needed to be addressed, some by pg&e, some by public works et cetera, but ultimately there was a hole dug where it shouldn't have been dug and that started the whole incident. >> i appreciate that. thank you for sharing that. commissioner paulson.

>> the issue that we are talking about right now is part of the overall scope of the work that we do whether or in-house or contracted out at the puc and it goes across not just electricians and line people, but all the trades. for example, certified apresentesses, it not just electricians but plumbers and brick layers, folks trained in a real way to do the work they are supposed to do so walls don't fall down and utilities blow up and what have you during construction and in maintenance. i think it mrs. hale addressed this that at least at one place, the idea was pushed to make everything stronger and i think that-not making a proposal right now, but saying if there is ways to clean up these pieces for better scrutiny

without adding $700 million new jobs, that that be part of what the goal is and continues to be at this particular commission as is sort of the policy of most of the city and different departments. therefore, there are a lot of people that will cheat and they will go to the bottom line and check off the box and say this is a certified electrician or no, my asbestos person went through a training program and you realize the training program they had a couple beers two years ago and it guy said you will work for me and i'll teach you how to do it. that isn't a real apprenticeship program. what mr. franklin brought up and i read his letter is something to remind us, we are a city that takes care of infrastructure and enterprises and make sure the people and workers that do that are doing what the city and county expects and

that is to do the work safely and in a way that's going to be durable. i want to thank everybody for flagging this today, because that should be the continued principle in giving out all these awards and the money we are spending to make sure the city works as well as it has so thank you. >> thank you. mrs. hale, would you mind, i have a few comments i wanted to share. do you have any comments regarding what we heard right now? >> i would offer first just for clarty to make sure folks understand that the very unfortunate circumstances at geary and parker were not affilulated with the antenna program and we are talking trying to avoid things like that happening in the program. i would add, i think thesentment expressed here enforces for me the importance

of the conversation i was having with staff about our practice. how do we make sure that we build in through our administrative activities better accountability for following through on what the good language of the contract provides. >> just one quick thing i would say is, couple things came up which applies to this, but maybe relevant and applies to this but in a different way. i think we had this conversation multiple times on tracking what is installed and having some digital footprint of work that is being done, that way for future reference people can access some of that knowledge and information. i do realize that incident wasn't relevant what she was talking about but demonstrates we are not tracking our digital footprint well enough to be able

to map everything on top of each other to be able to see what is what, where and that has come up multiple times. this can be a opportunity for us to make sure we are whatever being installed we know where, how and in what way and track that digitally. i think you brought up-thank you so much for your comments on this. i think being able to-i don't know how that is possible, but having a system that can track individuals that are being hired to work on this, i think you mentioned audits, the subcontractors, building a system that is little easier and faster to do this in order to make sure we don't need to go through every single license tracked, but we have a digital process that project to project to project can be used because i don't think this is just applies to this case, but it can

apply to other cases as both commissioners here mentioned. i think we are just giving you a opportunity to use this as a-to set up processes that we can use across different enterprises as we are working with different groups. commissioner maxwell, go ahead. >> to that end, if something does exist or does not exist, i think maybe we could give a direction where you are going and have something by when-when do you think you could have something for us? if it exists you could talk about that and if it doesn't, then where are you going with this? >> so, what we-i think we have gone talking about distributed antenna system into talking about asset management, and i think that is a much-i think it was recognized by the commission conversation that it is a bigger dialogue. commissioner maxwell with

respect to the distributed antenna system issues, we do require the carriers and will continue to electronically to submit the locations with gis plots, so we can map where these distributed antenna systems are installed on our street lights today and we will continue to do that. for that narrow piece of the puc asset management function. and we are trying to mature our asset management within power for all our other facilities as well. >> what we heard today, the public comment, is there anything in the contract we have that we are looking at now that covers that? that covers quality of the contractors and is there anything that covers that? >> yes. section 7.6.2, which the public commenter

referenced, notice of licensee work as well as section 13.2, personnel safety training. those are the two sections i think are most relevant to this conversation and then the exhibit that i mentioned, exhibit a5 includes the applicant-the carrier to identify name address phone number e-mail and contractor license number. we have been collecting information like that in the past but not the contractor license number. >> now we started- >> now we will do that with this new agreement, yes. we are improving along the lines of what the public commenter mentioned, along the course of this dialogue in the actual contract materials, but i think the step further we

need to take is more implementation of those provisions i cited that gets more to the accountability issue and that's where i was talking about do we do spot audits-how do we make sure that the provisions i just cited are really being attended to with each instillation. >> that's great to hear. so, when do you think you all would have something in hand thet we can look at? >> we are not expecting these contracts to be executed until maybe the late fall, early winter, and i think we can certainly have more for you in parallel with that. >> we are talking about 2024? >> we are talking this year, 2023. >> you said-winter- >> november, december. >> perfect. >> thank you.

>> excellent. thank you for the very productive conversation. can i have i guess if no more comments- >> move to approve. >> one quick second. i need a motion and second as amended. >> move to approve as amended. >> thank you. >> second. >> excellent. thank you. can we have roll call, please? [roll call] >> 5 ayes. >> excellent. item passes. thank you so much. madam secretary, please read the next item? >> the next item is communications that you received. this is for your information only. >> colleagues, if you have any comments on the

public-on the communications--okay. perfect. next item, please. >> next item is item 8, general public comment. members of the public who wish to make up to 2 minutes of remote public comment on matter s within the commission jurisdiction and not on today's agenda press star 3 to raise your hand to speak. any members present to comment? seeing none, mr. moderator, any callers with their hand raised? >> we have two callers in the queue. first caller, you have 2 minutes for general public comment. >> thank you. peter (indiscernible) tuolumne river trust. i believe you missed public comment communications, which is what i would like to speak to. clarification, please. >> yes, item 7 is a communication item and

that is agendized as information only. there is no public comment. >> okay. for public comment i like to comment in correspondence log there is a resolution from the cac recommending the continuation of hybrid meetings. i strongly encourage you to support that. alternative water supply quarterly report, i have a few comments. first of all, there is a question earlier about the impact removing a year from design route and mr. richie gave a half answer basically the sfpuc would be at more risk. the flip side of risk is reward and so the question is how would removing a year from design drought effect water supply needs and thus investments in expensive alternative water supplies? we presented you with a answer and that hasn't. it is nice to ask specifically how much less alternative water supply would we need to produce if

we shorten design drought by a year? they way you can assess the cost of benefit analysis. and what are the risks removing a year. you can ask are the odds 1 in 70 thousand? and by removing one year, does that reduce the or increase the risk to 1 in 10 thousand as suggested by the (indiscernible) ? is that the risk that we are looking at 1 in 10 thousand? how would using finance bureau sales projections water enterprise inflated projections impact water needs? staff has not (indiscernible) flip side is risking running out of the salmon base eco system is investing in expensive water supplies so encourage you to ask

these questions. thank you. >> thank you for your comments. madam secretary, another caller joined the queue. next caller, i unmuted your line, you have 2 minutes for general public comment. >> eileen (indiscernible) speaking on my own behalf. comments from yurd (indiscernible) my understanding the current pu crurks debt portfolio is $6 billion. by adding additional $1.447 billion would be increase of 24 percent. are other city departmentss proposing to increase their dubt portfolios by 24 percent or by $1.447 billion? and, how does the $2.5 billion offer for pg&e assets factor into this? besides the issue of fiscal prudence there is the issue related to long-standing allegations of contracting irreg yularities. should the

bla and controller conduct financial and performance odd tds of the puc before the items are approve (indiscernible) south basin has not. the $8 million for south basin in fy-23/24 is solely risk assessment rather then seismic retrofit engineering. would the $8 million be prudently spent on engineering rather then risk assessment which is kicking the can down the road? once again, the puc has been a questionable steward of the system. to reverse the flawed decision of the newsom administration (indiscernible) return to dpw and administration transferred to the cao. thank you. >> thank you for your comments.

next caller, i unmuted your line. you have two minutes. >> i have been listening to the presentations today. (indiscernible) i think our time has come that we have a task force that works with the commission or committee that is in charge of the bond measures to look deeply into how sfpuc is doing. you don't need to be a rocket sciencetist. we started with $6 billion and we are now nearing $12 billion,

heading towards 20billion. you can get 4 or 5 auditors and each will have their own different report. if you just look deeply into what happening with the sewer system improvement project, we know that it is a fiasco, and if you look at that building 1550 and i did mention this before, the end of that construction, there was no signature put by the person that had to do it saying everything was okay. people can frolic around the building and say this and that, but i want to see that document where there is a endorsement that that building met all the standards. 1550 evans street. thank you very much.

>> thank you for your comments. madam secretary, the call queue is clear. >> thank you. general public comment is closed. >> thank you. madam secretary, please call the next item. >> next item is item 9, items initiated by commissioners. >> commissioners- >> thank you. i have a question. recently there is a big tree fell in the building al stern grove. isn't that-did we do work on that with the $22 million that-i was hoping it missed what we did. >> general manager for water. saturday morning when i saw that report i texted the operation manager for rec and park and said, sorry to see it, but we didn't do it. and he said, you're right.

that was a tree that was there and just fell unfortunate- >>b it was the tree that fell but didn't we do work on the building? >> no, not on that building. and the tree came from the other side of stern grove from where we were doing our work. >> i'm so relieved. >> i think you were looking at different sidef of the problem [multiple speakers] >> i thought we put $22 million >> not thin buildjug not in the tree either. >> thank you. it is unfortunately to see how many trees are falling. >> how are we doing with our tree management? can i have this discussion? no. maybe that can go under what the other thing i have--watershed. remember i asked about the watersheds and having

a report on our environmental. maybe the trees would be under-thank you. >> any other comments? no. okay. could we have the-do we need public comment on this? yes. thank you. >> members of the public who wish to comment on item 9, please press star 3 to raise your hand to speak. do we have any members present to provide comment? seeing none, mr. moderator, any callers with hands raised? >> madam secretary, we do have a caller--dropped off the line. no callers. >> great. thank you. public comment on item 9 is closed. >> please call the next item. >> next item is public comment on matter to be heard addressed during closed session. >> colleagues can i have a motion to- >> sorry--i need to open public comment. thank you.

the following item would be heard during closed session, itedm 12 conference with legal counsel regarding existing legislation (indiscernible) dba hernandez construction versus city and county of san francisco, case number cgc-22-598639 filed march 11, 2022. proposed settlement of public work contract dispute and contract number ww622-2644j, haight ashbury sewer replacement and pavement renovation where the city will pay $137 thousand to m hernandez construction in exchange for full and final release subject to approval by the board oof supervisors. members who wish to comment on closed session item 12 press star 3 to raise your hand to speak. any members present to provide comment on closed session item? seeing none, mr. moderator, any callers with their hands raised?

>> madam secretary, there are no callers who wish to be recognized. >> thank you. public comment on item 12 is closed. >> thank you madam secretary. can colleagues can i have-may i have a motion on whether to assert the attorney client privilege? >> second. >> can we have roll call, please? [roll call] >> you have 5 ayes. >> thank you. now we >> the commission recommend the board of supervisors approve closed session under item 12. colleagues motion whether to disclose? >> motion not to disclose. >> second. >> roll call, please. [roll call]

>> 5 ayes. >> thank you. item pass s. thank you so much. with that, we have no more items on the agenda and the meeting is adjourned. thank you. [meeting adjourned]

sustainability mission, even though the bikes are very minimal energy use. it still matters where the energy comes from and also part of the mission in sustainability is how we run everything, run our business. so having the lights come on with clean energy is important to us as well. we heard about cleanpowersf and learned they had commercial rates and signed up for that. it was super easy to sign up. our bookkeeper signed up online, it was like 15 minutes. nothing has changed, except now we have cleaner energy. it's an easy way to align your environmental proclivities and goals around climate change and it's so easy that it's hard to not want to do it, and it doesn't really add anything to the bill.