item number six, appropriating $141,171,000 for hetch hetchy water and power capital improvements for the public utilities capital improvement program. item number seven, and water revenue bond issuance and sale not to exceed 163 million four hundred thousand dollars approving the issuance and sale of water revenue bonds by the san -- the county and city of san francisco. item number 8, power revenue bond issuance and sale in the amount not to exceed $12,300,000 for capital projects benefiting the sfpuc enterprise. item number 9, an ordinance for wastewater revenue bond issuance and sale not to exceed 520 two million $810,000. item number 10, reserve funds for the public utilities commission in the total amount of $20 million to fund the electric reliability payments. item number 11, the lease of property at 1455 market street. >> thank you for calling -- chairperson chu: thank you for calling all the items on the agenda. i imagine we will cover these items as we go on in the presentation, so i wanted to make sure that we call them the first item, this is a continuation of discussion

our water system comes from hetch hetchy. we have been trying to make sure that each area is safe and reliable. we now have a new pipeline, and we have strengthened that connection over calaveras false -- fault. three and four is the next project to come up. we are building a new tunnel under the bay, and when you get to the crystal springs bypass tunnel, we are carrying all the water we needed directly for our customers, if we do not need it for our customers, we store it in this lake, and we can store 22 billions of dollars -- 22 billions of gallons. we are working on crossing every one of those vaults, and we are in much better shape than we were five years ago. that is done with a lot of people involved. and we have our commission. we have a lot of our leadership here with us today. they have an -- dave is in charge of the people who work to keep this going. they are part of the whole project and part of making it happen. we are trying to make sure your water will have arrived at major distribution points. we are very ple

it is -- want to mention something about hetch hetchy. there is dialogue out there that some people are suggesting that we can tear down our hetch hetchy dam and still survive as a city. i want to let you know that as insane as that is, it is in fact, insane. [applause] there are going to be some leaders that approach you, suggests that tearing down the hetch hetchy is a good idea. they will grow pew into some discussion about water sustainability issues. but know this. not only do we have the cleanest water, not only have we spent serious amounts of money upgrading seismically the whole system to deliver that clean water, but it is also one of the strongest clean hydroelectric power sources infrastructure that any city across the country has ever had. i want to make sure you know that as this public dialogue begins and do not get misled on those discussions by people who will connect up something that we do want to have which is a good sustainability of water but not by tearing down our dam. finally, i want to end with a discussion about

hetch hetchy power department. 8, recognizing revenue losses above $31,477,332 i need to permit a public health and appropriating $67,629,934 of senate bill 1128 reimbursement revenues2. revenues5,620,000 of surplus to our hospital revenues. $6,555,007 of general fund reserves for losses to support additional expenditures in the department of public health. $13,090,000 at laguna honda hospital. dollars in -- a $27,077,609 for a debt service reserve in fiscal year 2011-2012. number nine, ordinance appropriating the money for nurses' salaries in the department of public health in its fiscal year 2011-2012. supervisor chu: thank you. we will probably continue number 9. we do not have a report. number five, six, and 7 are all de-appropriations of sellers or fringe benefits and re appropriations two overtimes to of those items do not require additional general fund support. item eight, the department of public health, however, does have a level of general fund reserve that would be required in order to make that action

. >> and supporters of a plan to drain hetch hetchy reservoir began gathering signatures today. the san francisco initiative requires the city to develop a long term conversation plan as well as figuring out a way to restore the valley which is dammed in 1923. >> many people believe that the hetch hetchy reservoir is a source of the water. the river is our source, that is not going to change. >> the mayor and other opponents say tearing down the dam would take away a main source of drinking water and cost $10 billion. >> this leaves our region vulnerable to drought and eliminates clean energy powering everything from cable cars to hospitals here. >> if it makes on the november ballot and win as proveal the plan developed by the city to tear down hetch hetchy would go before voters again in 2016. >> golden state warriors have san francisco in their plans and santa cruz as well. last night the city council voted to finalize the deal. and will receive a loan to build and operate a 30,000 qair foot facility seating 2900 people and 4,000 for concerts. they hope to have it open when t

but please do not let someone walked up to you and say we can drain our hetch hetchy and find some other water solution for our great water system. they will say that to you. it is little trojan horse that will give to this month -- november ballot. advocates for san francisco, do not allow people to be full that we can drain hetch hetchy on some environmental goal that is untrue. we can still enjoy the balance, that we had the greatest water system ever engineered. that is going to come your way. i hope you pay attention to this. while we do our parks are, hopefully we change our payroll tax, and there will also build more housing with the affordable housing trust fund we are creating. thank you to the neighbors. thank you to all of you who reminded us that we have to get in a hurry with these parks because we have a story to tell. weekend build the foundation for more confidence that we do more of these things for our neighborhoods. thank you very much for being here. let's congratulate ourselves. [applause] >> thank you, mr. mayor. before i introduce our next speakers, these facilitie

i just want to mention something about hetch hetchy. some people out there are suggesting we can tear down that dam and still survive as a city. i want to let you know, as insane as it is, it is, in fact, insane. [applause] there will be some leaders that approach you, others around the city that suggest tearing down hetch hetchy is a good idea. they will start talking about water sustainability issues. but know this. not only do we have the cleanest water, not only have we spent serious amounts of money upgrading seismically the whole system to deliver that clean water, but it is also one of the strongest clean hydroelectric power sources, it infrastructure, that any city across the country has had. i want to make sure you know that as this public dialogue begins. do not be misled on the discussions by people who will connect something that we want to have, which is sustainable water, but not by tearing down our dam. finally, i want to end with a discussion on america's cup. yesterday, we made the announcement that pier 30 and 32 are n

we have increased the number of stores we are offering the public to the hetch hetchy reservoir. we're talking with recreation and parks about institutionalizing, allowing tors of individuals and families to go up and see the hetch hetchy system while they are up there over the summer. many of the other initiatives we have been working on -- you are probably more familiar said the work we have been doing with the southeast community facility. another program we are getting ready to watch is the contractors assistance center. that will be a center that will be housed in bayview hunters point and be focused on increasing the capacity of smaller contractors to bid on puc and other city-wide work. this slide, really quickly -- you are familiar with the pieces of work we have been doing. the work we have been doing with the arts commission to realign our arts enrichment funding. the urban agricultural pilot program. and then, with the infrastructure of the program, again, we are excited that we are staffing up. we are developing a benefits proposal that will be focused on a sewer syst

greater than hetch hetchy. there's enough water in the system right now which is full for four years. that's a pretty long drop fully tapped our supply. >> a discussion of the use of the water bank is a longer discussion and we are going to have here but it is considered part of total storage and is not considered new and additional. it's not in addition to the 265 we do not have. i think you are right about conservation. that is it's always better not to use it and use it twice or once and it's cheaper if you have options to there. the question is whether we have saturated the market or not. on the unit costs, we continue to have some discussion. the chart that is out there is problematic in that it considers all water being equally value and that's not true. water in a wet year is not as valuable as a water -- as water in a dry year. i appreciate your comments and it will make it a rich discussion come the workshop. additional public comments? >> it does it make sense for water conservation to be part of this

. >> efforts to let you decide the fate of hetch hetchy. supply being water to hundreds of thousands in the bay area, >>> a serious set back for members of a top area cycling team hoping to qualify for summer olympics. thieves stole 14 racing bikes from the team this palo alto that happened in boise, idaho. the team is headed by fermer olympian linda jackson including four hopefuls for summer london games, the women will compete with our their bikes. >> the state assembly considering reducing penalty for simple drug possession from a felony to a misdemeanor. advocates say it would save $225 million a year, sponsor mark leno says it would also lift the stigma. critics warn changing the possession from a felony to misdemeanor will put offenders on the streets. >> san francisco's gold dust lounge is moving union scare with you bu nobody saying where just yet. the 47-year-old gold dust was in final days downtown. after losing a battle over the lease. the bar ace owners say it will be tonight. they say they expect to reopen a bigger and better g

team -- the other non substantive amendment is on item six, the head ceci supplemental -- the hetch hetchy clarification, to add to the bond oversight cost. again, are heightened level of scrutiny is covered and funded in the items before you. supervisor chu: thank you. there are no further questions, we have tentatively taken the recommendations the apartment did the crew -- the department did the -- the department did agree with. i will take additional access -- additional questions after public comment. i believe we will not need the puc to come back and we will follow-up on urban agriculture and other things we have asked about. i know there are a number of people who might be here to testify on the rates or the parking meters as well as the irrigation district transfer. we will likely be taking half an hour break at noon and we will do the department of environment presentation, and come back half an hour at 12:30 and that do public comment after that. it is want to make that announcement in case you would like to take a lunch break. blue >> good morning. i am the director of the and

leadership, i also want to acknowledge -- this transit system runs on hydroelectric power from our hetch hetchy, and we know that. we have felt that. we have used that. in addition to the wonderful water system it has, our our shaughnessy dan generates this power -- our shaughnessy dam. for anyone to suggest that we should tared that down and be irresponsible to generations of people who are dependent on this innovation that occurred hundreds of years ago is to be irresponsible to our whole city. [applause] so i will tell you today, we will protect that dam. we will protect that innovation, and we will do it in the spirit that all of our and the raiders are today, that our spirit is rich enough to help everybody to make sure that we reflect everybody's lives. this trends assistant touches all of people's lives, whether you are a struggling immigrant, a small business, or the largest business in san francisco. it touches everybody's lives, and she knew it when she was supervisor when she declared transit first. she continues to help us in so many ways. she has been my mentor, and she has been a

doing that properly that the lake merced watershed area should be treated exactly the same as hetch hetchy and should be managed the same way as if it's part of a national park system or state park system. we need this to look like a natural wildlife habitat that the citizens of san francisco create by coming to you in its natural beauty, not by rec & park managing it with an eye toward revenue opportunities and toward simple recreation and not enough consciousness of the wildlife habitat. thank you. >> any additional public comment? commissioners, what is your pleasure question are >> we do have recreation and park here if we would like to hear from them. >> it good afternoon. i'm the director of administration and finance for the rec & park department. thank you for giving us the opportunity to speak about the mou and our plans for recreation programming at the lake. it's nice to be able to follow that outpouring of love and recreation for the recreation and parks department. it has been a pleasure and a productive process working with your staff to develop this mou. i think the agreemen

in the case of hetch hetchy water and power, are improvements are primarily for the regional pipelinesto the up country system. the majority of uses is in power infrastructure. you will see in the mid -- in the middle of page 29, you will see the investments and these are critical investments in the generation and powerhouse. you have funded in the past the rewiring of the generators and these are critical because it basically allows us to create a $150 million revenue stream we would not otherwise be able to do. that allows us to provide what is very low-cost power to city facilities and a hospital. thank you for that. the other investments are streetlights toward the top of the page. we are investing more than we have in decades. thanks to you and the mayor's office and policy-makers, we have been able to implement a twopenny ratings increase that allows us for the first time to do power revenue bonds for fiscal year 13-14. i want to go through to brief slides and also through page 35 -- supervisor chu: items 6 and item eight, the appropriation is about $141 million and the remainder

some people want to say take down hetch hetchy. do not have a dam that provides us with clean water and hydroelectric power. do not be tricked into that. i want to let you know that. i have not been a politician before, but i know a threat when i see it. somebody will tell you something. please read it carefully before you sign on. in my opinion, it is not good for our city. an aide to educate as many people as possible. you are going to have those choices in november. it is early enough. we are now having choices tonight that you have presented to us. i do feel for our youth, our families, our seniors. yes, i will do my best to approach this, but i do have to say that there has to be something fun in the city. my daughters grew up when it was only $10. the road everywhere and always reported to their mom and dad that they did not need a ride. i want our youth to feel this is their city as well and to take responsibility for everything that they do. part of it is what message we send them about their own transit system, to try to b