some brief summary of our brief project we've completed the water projects in the hetch hetchy area hetch hetchy is still going to, critical in integrating projects. we still have to complete the tunnel and the dam project in making sure the hetch hetchy project can deliver water. we continue to support our participation in bay delft and other procedures. when we talk about feshg it deals with the enterprises and it deals with hetch hetchy it's the new don padding restraining order for the districts their primarily in but we're an active participate. this is ahead of the phase and it's going to take a lot of involvement for san francisco. we're also actively working on the upgrades in the system and mr. taylor the powerhouse facilities for health and safety and regulatory reasons. i didn't list the rim foyer recovery. we've made good process and there has a lot of things have been restored a we had to pay for all those things so cost recovery to insurance and other thing is an ongoing priority and todd is actively involved in that to recover as much as possible, and, secondly, if we e in

i'll see over the course of the next two hours everything to do with hetch hetchy water and power and the 2 year budget and the challenges over the next 10 years. on the 28 we'll do the wastewater and even though rest of the infrastructure we'll be collecting all our questions and the follow-up work you want us to do and present those on february 11th. the budget in a big picture is about $873 million today and you'll see the portion that we're looking at today is called hetch hetchy water and power and that altogether is $185 million of that total nearly $8,900 current budget pr the majority of the operations of hetch hetchy a big picture for the television audience is practicallyly 20 percent of the costs are related to water and water customers. about 80 percent of the operating costs are related to power and power customers pay for those costs. the operating button is at 80, 20 split. on the capital split you're going to see that power is going to need a great deal investment as well as significant amount in hetch hetchy water. the offer arching budget themes as you've heard in de

so, now with regards to the hetch hetchy system and the climate crisis. we could be facing a 10 year drought or a permanent drought that's a real possibility. if we're going to lose itch of the generation policy of the house/senate system we better take those opportunities i've talked about and start rapid building large amaze of other renewables to have a reliable power source to sell power to our customers we'll be able to sell cheaper than pg&e. mentioning the climate crisis regardless of the fact there's an opportunity and not a liability we can't be balancing budget in the 21st century on the fragile back of the earth's atmosphere. if you listen to what scientists are saying scientists never want to make alarming statement to the public are now making alarming statement talking about possible collapse of human civilization within this century or by the end of it at least. and that means that both because of renewables are an opportunity and because we're facing the end of out of civilization we can't be cuttingy newable energy programs we need to be

year to mobilize to put in lynn and get a back out because we couldn't afford to take out the hetch hetchy i system that resulted in about a 10 or 11 year project to complete that over time. that had some concerns about that bus taking the tunnel popping up there was a concern of a risk of failure by go basically filling it out. so we've done that last year, we've added a analysis that was done to look at the same thing and both jacobs and the other company have done good work. this work has concluded if there's a good risk in this slide it shows it to some stent the colored portion of the lion there and this is the alignment of mountain tunnel coming down the o to the rios reservoir. the yellow portion is the lining as of 2008 that was still in good shape. all the other colored pieces that range from red to purple as the color deepens the risk of failure is worse. we so we see many segments the tunnel is failing at the same time we've seen the capacity of the through mountain tunnel directing over time there's additional failures going on through the tunneled and we've done further analys

if we can turn to the hetch hetchy water portion of the program for power. first, here's a slide showing the length and complexity of the system that serves us from hetch hetchy. it's a wonderful system it's done a lot for us and will continue to do low for us. but how we manage it and operate it is critical. in terms of the water enterprise budget but right now hetch hetchy is one division within the enterprise and we're joined by margaret and will be available for questions. again, the components are 3 im30u7bd reservoirs and 8 generating units and substations, one hundred of pipeline and 50 mieflz of paved roads. this is a big system and but for a water enterprise this is a big system we have the responsibility important out

the champs will hetch hetchy it's all the work up country. it gives us some additional contracting challenges because most of the firms we hire is local but you know we've done in our contracts we have not allowed for computer of per diem. so if we need to send someone up country for two or three days but if they're up there 6 months that's part of the consultants program. we started that 6 months ago and we had a few consultants but they're getting the message we're looking for a lien team not o not to shuttle our folks up there long-term. again we're tide to the easter bond and it is a smallest piece of our overhead capital program but important for the desperation of the city. we have a couple of you have ann letter accomplishments this year, the final sequestration for gary boulevard bridge that's a project we're working with mta and also the resource agency permits for that same permit. the last thing i wanted to say which is not in the presentation because we're cranking the numbers up to the point of getting to the deadline to submit t

so behind tab 4 in our fwierndz you want to follow along the overall summary for hetch hetchy is $606 million and that is two things the increase in the mountain and tunnel and the project mentioned earlier today. the shortfall on the power side and that shaufl specifically is on the cliff we don't have enough identified solutions yet to solve all of the projected need in particular for hetch hetchy power. the largest single item is the mountain tunnel rehab and bypass that richie talked about that were i can see further down the page where we could seem water bonds but even with the most assumptions the max out of the power bonds there's not enough capacity identified. the summary is done in a 10 year summary showing the investments in street lights and this illusion shows the entire $1.4 billion and you'll note two thirds of it is related to customer support and a 3rd of it relates to hetch hetchy water. a two year illusion is the capital budget on page 5 as well as the total 10 year. and some highlights of that are increases in street lights been $29 million plus another one hundre

people have the benefit of having hetch hetchy but hetch hetchy is in trouble. we need people to focus and remember the benefits and the themes that this enterprise contributed to the other programs and rally behind our ability to bring it back into alignment. i know a lot of people were looking for restoring certain programs. we try to continue the programs but let them know that we're doing this but look at our situation if the situation becomes worse we maybe will have to reduce stuff. that's really the big message we're taking something serious and this is something that is the highest priority at least me being a general manager and it's probably the highest priority of the commission >> if i can just add to that. i think one of the things that's disturbing about the grafts is the best option and doesn't advance our situation and it assumes some things that are not absolute >> yes. >> the i a costs being a big one. which kind of 2k3we9s us to the discussion including some of the alleged customer somewhere as well that that is how hopefully, we'll weather so

what plan has been developed to restore the water to the hetch hetchy and to other folks. two what caused the degradation of the lynn. the answer is not clear in the documents but an answer a required to make sure that the replacement facilities won't be involved in the same problem. third will it be necessary to put in place the immediate measures and four how will the project be fined. it replies 46 million or more and 5 how will the puc not extended the risk to other san francisco residents. it requests that the staff provide an answer to the first question by the first meeting no march and to the other four questions by the commissions meeting in june. this information will be presented to the bossing could board and additional my staff will help the puc and staff to meet this very serious challenge urgently. so you thank you for the opportunity to state that i felt it was something that had to be put out there. with that, i will not go on >> (laughter). >> commissioner? thank you for your report >> at the also and your vigilance it's a concern to all of us. i hope we

you can see in relation to hetch hetchy power approximately $135 million of street light related activity eaten some additional need at the alice grifbt and a candle stick point. so sometimes, the new customers need up front capital investment so we have to count the new expenditures and sometimes the new expenditures is up front investments in the case of candle stick point they've over $99 million so the revenues come in over time then. the 10 year capital plan is summarized on page 9 shoig the shortfall but transitioning to slide 5 how to pay for the capital needs and budget and what does that mean for rate pairs and how to keep it forcible. the slides i've mentioned it one behind stab 5 to summarize the new expenditures they're in red at the took up of the package. there are 3 reasons for pg&e about $24 million for the yearly manual costs that are new because of the transition and distribution charges and the elimination of the power bank and also additional proposed street light increases as pg&e has fidelity within the puc their generate case that assumptions rate increases that we

now realistically speaking how many million dollars of globulins of clean water of hetch hetchy a leaks into our ground. we need to have the technology to monitor our pipes to get realtime results to find out about how many millions of gallons of clean water leaks into our ground and effects our watershed. now having said that, that we don't know how many people work for puc maybe 2 thousand plus that just like the city nobody know where the 29 thousand workers work but anyway, having one worker for every 289 constituents is a joke. so in the year 9014 for example, we want to know all the new people that were hired in one of you all department of external affairs rather than those five or six people are warranted. we want to know and we want to know if they work so hard how did they find time and use their influence as a conduit to send $1,200,000 to green. so good men come here and try to like talk the talk that's fine. we have to learner to walk the walk. thank you very much >> thank you francisco. next card jason freed >> jason freed. chair al loss couldn't be here so i'm here with h

and our hetch hetchy discussion we had if in detail the last time. it's mainly $200 million of change related to what you've heard as part of the 20-year program for the s example i p. let's see what that means for the financial plan. so in the financial plan if i could have the slides brought for the television audience. the financial plan takes the budget numbers and puts those in what it means in insuring affordability. this is the pennies per gallon of cost over 20 years with the capital plan changes as well the proposed budget before you we'll be moving water rates from slightly less than a penny to slightly over a penny. the blue bar is the water rates per gallon and the green is the cost of waste water treatment. so you'll in today for our customers it's about a penny to deliver the water at the tap and just over a penny to treat it and make it clean to discharge it into the ocean. you'll see that on the chart >> as you look at the water that also includes the large portion of $4. billion plus that we've invested it's 1/3rd to 2/3rd's and it's

times with the financial circumstances within power enterprise and with the power operations of hetch hetchy. we have some capital needs. we have higher than anticipated increases and cost for distribution services from pg & e and we are projected to be out of balance by fiscal year 16-17. in light of that, our direction from the general manager and commissioners are to really focus our efforts at the puc on solving that problem. so we are really refocusing in a way that helps us achieve our highest value revenue which points us more toward increasing the customers we serve on our publically owned utility side of the house if you will and not on our cca side. we are also looking of course at ways to reduce our cost. so that's where our focus is at puc and with respect to item a, we did make a presentation to our commission on january 14th. we did include, the general manager did include the memo that describes these issues in greater detail that i would be happy to provide to you. i provided copies to the executive director already and perhaps we can talk about that further at a subsequent m

a few highlights we're going to look at we've helped to castle e educate people on hetch hetchy. many of you who have participated take folks from san francisco all the way up to the hetch hetchy reservoir so neighborhood and contingent leaders in san francisco many of whom have not seen the breath of the system can get the exercise. those tours are extremely successful and people are ready to talk to their neighborhoods about san francisco's great tap water. we've taken 5 thousand people on tour at the golden gate so we partner with the school district to showcase the features of the buildings for the kid. those are important asia we educate people on the possible drought and the need for additional water preservation. last year, we have our education around the sewer program and we've had people engaged in our water efforts we've constructed a survey on green infrastructure to better understand what resonates with the resident as we think about the san francisco watershed. many of the awareness campaign your number two is now number one their castle and educating residents. we'

hetch hetchy water. this is $1-4 per gallon. it's quality is tested over 100 thousand times a year. it's the highest municipal water in the country. in the past several years i have partnered with several agencies. i have sponsored legislation to acquire new buildings to install bottle filling stations. the legislation we are introducing today is also first in the country and an exciting next step for our city. while many national parks and universities across the united states has instituted water bottle bans i would like to take an approach to reduce bottle waste in our own cities on properties and our own cities facilities. vendors and city department to reduce our addiction to plastic bottle water. the ordinance is a result of numerous conversation of departments and producers and environmental community and want to thank supervisor mar for his assistance. beginning this year, the municipal water would not be allowed to sell bottled water. in 2016, all will be required to comply. sports event would be waved. many events in our city have already made the transition to being plast

the hetch hetchy river serves 2.6 million people. right now, the system is on track to receive its lowest precipitation total in history. that's prompted this call for customers to voluntarily cut back. the puc says it will no know about a month or so whether to put mandatory water restrictions in place. there is still a window of opportunity to get precipitation in the sierras. it's closing quickly. >> right now we're in the january through march window when we get most of our precipitation and snowpack. so the season is not over. we're still evaluating where we stand. it's not so much it rains in san francisco. it's more important it snows in the sierras. >> reporter: one of the deputy managers for the puc says the system needs to get at least three good storms in the next couple of months to avoid manned toeshry water rationing. if rationing is put in place by the puc, it would likely be a required 10% to 20% cut. what that would look like for each customer would be an established base line for average water use and then anyone wh