>> i'm wondering if it might make sense to separate out the financial plan for hetch hetchy? >> 11a and b? >> i would move the financial plan for the water and wastewater enterprises. >> may i clarify commissioner moran? would it be acceptable to move the item hetch hetchy as a projection and not a plan so that we are required quarterly to come back to you to show you the next steps. that's another option. >> if the question would be what would you do with that projection? part of and harvey mentioned that we should not be punitive and that is not the intent. you have done a really nice job of putting the issue out there. part of what i hope is that this can be incentive for dealing with it and coming to this. some of these things are issues that need to be resolved fairly quickly and not in certainty. we expect this to have an outcome. i want to keep the pressure on to do that, and i don't know what it means to have a projection. we are not obligated to do a projection. if the projection goes as to the satisfaction of our obligation to do the plan then it's called something

if we have about 12 inches precipitation which is about a storm, that will fill hetch hetchy. that would be a great place to be. we still need a fair amount of precipitation out there, 2-3 maybe 4 good storm systems to get a comfortable level of storage in our system. the next picture is a slightly different one. this shows storage in hetch hetchy from october 1st given the levels of precipitation we might expect over time. the point is to show you that blue bar which is the increment of the storage that we get to keep in the system assuming the 10 percent stays. that's a good number to have there. what it shows also is that the effect of conservation starts to taper off as you get to a full reservoir. it doesn't add any water to the reservoir. that doesn't mean we do not need to continue the call for precipitation, because if we don't get snowfall past september 1st, the green bar going the other way the benefit will still be there. i believe next to next water year. that will be the projection at this point. will we need to go more than 10 percent? it depends on the precipit

has to be frirltd and we're working with hicht the cherry water is very, very good as good as hetch hetchy but it doesn't have all the watershed supplies so we may operate it in slope process just the hetch hetchy water and just the cherry water and have disfix in between. either way we'll extend the water so far as possible >> we'll have to filter it

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

we also know that the snow pack is a big portion of the hetch hetchy. emigrate black line is what they view from the average show pack into the watershed and the green line is again, the - is last year 2013 and the imply line shows you 23407 our last low water year and the red line is current. so let me give you one good slide here. with citywide the municipal water use has decreased so all the city departments are nearly on here. the water use has declined fwi percent since fiscal year 07 and 08 we're part of that but given the current drought there is more that needs to be done what are redoing that takes us into the current data. a couple of things irrigation was our main water use we're the largest city water user that's normal. we're looking to reduce our irrigation operation by 10 periods of time we'll ideal back our timer control setting as he the gardenerers will be mindful of pulling back their application of water by 10 percent this is one see exception no name reflecter motor it means sexy electronic probes into the ground will measure the ro

has to be frirltd and we're working with hicht the cherry water is very, very good as good as hetch hetchy but it doesn't have all the watershed supplies so we may operate it in slope process just the hetch hetchy water and just the cherry water and have disfix in between. either way we'll extend the water so far as possible >> we'll have to filter it if we mix it. >> yeah. right. >> thank you. thank you, mr. ricky >> mr. vice president that concludes my report. >> so i see mr. erick if there's no other any public comment? there are no speaker cards >> a very good afternoon i'm eric i'm representing the local. i'm also one of the members of the sierra club bay chapter committee and i want to take you back to our last meeting. and also a or some of you may have seen in the newspapers a report about deacceleration i want to make sure that that report took comments out of the context and made it a lot look we were supportive of deacceleration we don't support of the bay area deacceleration project that's still the case. let me read from the sierra clubs guidelines deacceleration shouldn't be

the necessary levels at hetch hetchy. at the february levels in february 2014, water shed was at 40 percent of the snow level and snowpack was 22 percent of it's normal level and we have some of the best tap water in the country. it can be easily forgotten and the water has to come from somewhere. the hetch hetchy reservoir system through a marvelous civil engineering is still dependent on the river and the snowpack in the sierra nefd nevada and 2.6 million people depend on this. and it's going to make the state vulnerable to fires. as you know the rim fire burned for 69 days and threatened the hetch hetchy reservoir and was saved thankfully tourette fire -- to the fire departments. governor brown declared a state of emergency and called on californians to reduce their water energy by 20 percent. the sf puc is asking can ustomers to voluntary reduce their water usage by 10 percent. the department is outlining actions to reduce the water and develop alternative sources of water. today i would like to ask puc and department

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

i would say in order to establish the hetch hetchy enterprise. >> that is acceptable plan. >> is that your motion, commissioner moran? >> i'm fine with that motion. >> mr. president, can we have that completely read how you want it to read? >> how about it commissioner moran? >> sure that this commission adopts the attached sf spuk financial plan for 2013-2015 through fiscal year 23-24 for the water and wastewater enterprises and adopts the 10-year financial projections for hetch hetchy water and power including the power enterprise -- strike that and hereby find the quarterly updates for hetch hetchy water and power including the power enterprise will be under taken in order to establish a 10-year plan for hetch hetchy water and power. >> commissioner vietor? >> is that okay as far as the budget process the moving it forward. is that going to address some of the concerns whether political and practical and tactical? >> from my standpoint, i think it serves the purpose of acknowledging the projection and the seriousness of it that we are asked to come quarterly and give you an update

third item is the hetch hetchy financial plan is not a financial plan. i cannot vote for it. it's a description of a disaster. the not a plan for survival and i can't support that. i don't know what the impact is of us not adopting a financial plan today, but if for some reason we have to proceed, it won't be with my vote. fourth item is just a note and that is that we have talked to the heche budget about the possible $20 million additional dollars per year to fund transmission distribution cost under new agreements in the future. the note to all of us is that is not reflected in the power rates for water and wastewater and presumably if you have that kind of a hit that there would be that kind of impact. that is an area of discontinuity between financial plans for water heche and power and that's as you develop the heche plan would need to revolve that. the final is a question, one of the things that i had asked for at the beginning of this was some kind of review of the commission adopted policies to see how this budget either accomplishes or fails to accomplish the object

and then big uncertainty is the hetch hetchy in the current year. it's really heavily depend on on the drought. we sell surplus water when they have it but when they don't have enough it relates in having to buy power on the open market and there's expenses. to get a magnitude of expense we're assuming drought conditions between 5 and a $15 million challenge of hetch hetchy in the current year we have the balance to cover that but it's a wolg picture for hetch hetchy we'll continue to track that in a 9 month period. just quickly in closing that is improved current year news will help to help with the shortfall ahead that speaks to the 9 months report if we see 25 percent improvement that flows to the reserves. we have two key reports coming up with the mayor's office and they w will have an up to date and we'll issue jointly in march and we'll have publication in earlier may. our poise if you would i'm going to the mayor's office to talk about what this means for the current projections >> thanks. >> good afternoon, supervisors i'm melissa the updat

and in years passed we have come to you and showed a hetch hetchy plan and that is one of the rigors in the protection in the charter that this commission has to look through a 10-year lens. that for over the last two cycles was solved because of the generate increase before we released mount tunnels and before we had increases on the ia. in the passed we have reviewed and shown a document. in the last 2 years it's been wonderfully balanced for all three of our enterprise and that has been a unique circumstances for us to have all three enterprises like that. now again, the plan in front of you shows that we are not balanced but that means the rigor of the requirement is that we then point out to the policy makers where further work needs to be done. so there was an addition added to the resolution this time that was proposed that while the first 2 years are in balance that we have to come back to you to show you what additional activities and solutions are under taken as we can quantify more things to balance out the years of the plan. that was the best we can think of at least as o

as you know everyone knows hetch hetchy is the proirm water resource in san francisco. a couple different lines the black line, of course, is what hetch hetchy looked in our reservoirs and the green line is the waterline last year. hetch hetchy in the reservoir and the blue line goes back to 2007 and the orange line for you who are

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

our hetch hetchy water costs a third of a penny per gallon versus the 1 to $4 per gallon in the single serving plastic water bot l. the quality of our tap water is tedtion over 100,000 times a year. we have some of the highest quality tap water in the united states. in the last few years i want to thank the various city departments in my office, partner on a number of efforts to develop tap water. in 2012 i sponsored first in the country legislation to acquire new buildings to install bottle filling stations. and the legislation that we are considering today is another first in the country step in this area. now, i'll note places like concord, massachusetts, 14 national park and many universities across our country have instituted outright bans on plastic water bottles. this takes a targeted approach to he dries our waste on city property and in city facilities. the legislation, colleagues, that i'm asking to consider, [speaker not understood], and city departments to reduce our addiction to plastic bottled water. and there are three main components it our legislation. ~ to our legisla

about a million arc feet but we are dealing with 3 hundred thousand is directly available for our hetch hetchy reservoir. we're working on another project to make more water available for drink. the precipitation is good 40 in february in terms of the precipitation but still just a drop in the bucket to where we would be at this point. again, i included the table of our assistant storage and the current storm in cherry lake is 2 hundred and accomplice acre and that's a significant amount of water. the two grafts you you've come to see and appreciate is first precipitation again, the red line is above 1976, 77 but been stable in the last few weeks we should see on uptick from the stormwater this weekend. similarly the snow pack is way below normal so we have a long ways to go in observer system. some of the management actions flaw just to receive january 3rd amendment we called for a reduction in water citywide. this graft is basically over the last couple of weeks people have responded positively and the numbers are tracking where we need to be at a thirty percent reduction. on the twelfth the

what happens in the event or what are the long-term planning, say something happens to hetch hetchy, there is some kind of terrorist attack or there is some kind of chemical agent that is sprayed over our water, what is our strategy? if we account for some kind of an emergency exit or, you know, way to address this concern? >> absolutely. in fact, we had specifically included language in the provision to deal with those possibilities. so, if i could just point to section 2406 of the legislation, it would allow departments, r city officers or agencies that are responsible for permitting youthctiontionv or issuing lease he to waive the requirements ~. if it at turns out that there are undue hardships or practical difficulties that washington ~ warrant the granting of the waiver, there are others that say if with need to rely on plastic bottled water to protect the health safety and we will if ier of our city and there is no reasonable alternative to such water, again, ~ these provisions can be waived. and i would just say that there are environmentalists here who actually thought these

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'

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