the cherry is one hundred and 50 thousand and hetch hetchy may fill this year. in terms of management actions there's a couple of things to highlight we've talked about our where for 10 percent volunteer reductions and we're looking at the data hard to see if my additional action a warrant and on may 7th we asked our wholesale customers to look at this and we're working hard on outreach campaigns win and without san francisco. we have a website we've just put up open web call my account and that's something individual yourselves in san francisco people who have water meters can go online and see their daily usage and compare. we think that's a helpful tool to educate people and is if that effects consumption and the cherry act duct is happening and we're helping people to get funding for that and looking at snow valley improvements to treat the lower cherry supply if we need it in the future if you have any questions, i'll be happy to answer them >> vice president commissioner president caen. >> so we can deliver our allocated amazes of money wrong topic water w

resources be sufficient to fund hetch hetchy capital program. i think that's that doesn't have my particular effect in law but sends a message to the board as we adapt those rates our intent is that's part of the revenue package and a funding package that's sufficient to do the job >> i'm sure we'll touch on it when we get f to that item but for my own clarification does it have to be resolved or can it be a whereas and is there direct linkage to this report that we just heard. >> i'll leave the drafting of that to the city attorney the direct linkage we have proposed rates and discuss rates with the mayor and board of supervisors that are part of an overall funding package that overall package is put into something and i want to make sure that issue is revolved it our intent is clear. that the package as a whole provides the funds sufficient to fund the capital program as was said >> since we're still on this item on the agenda can i have the bosco representative come up to the room and we'll move towards the appropriate item would you be kind

capital budget and hetch hetchy financial plan and it will then go into further detail on what we did on this item. >> thank you. >> commissioner vietor i have . >> i have a couple of questions. and i'm sorry that i mied the presentation on thursday but i think you heard it, right? you were there at the geo meeting. >> i heard it i was not personally there but hale was. >> their program when they first invested in that program, mar inenergy authority. >> i don't know that off the top of my head. >> just looking at return on investment. >> barbara hail they had a modest financial outlay in the hundreds of thousands of dollars they are now financially stable functioning program 2 years in they have doubled in size. >> what kind of revenue are they generating. >> i believe i can double check that figure for you, but i believe mar inenergy is now setting aside 3 to 3 to 5 $500,000 a year towards renewable programming because that's in excess of their needs for admin istering the program. >> i was curious about that and richard recently joined marin, cca am i right? >> yes they paid a $40,

>> specifically that item in your legislation the other two items related to hetch hetchy is the financial plan and capital plan those 10-year looks so the charter does require to adopt the financial and capital plan and i know the city attorney -- but those two require the adoption those help us and are instrumental as we t up the bond sale and the capital supplemental directs the general manager to request the supplemental. >> and the staff is coming up with a plan to address the uncertainties that are out there and your request on a plan that deals with the cca as well and i think that's extremely important and i know the staff is working very hard on it. the only other comment i'll make is i like the go solar program i don't like funding it from our budget the people that get the grants are not our customers and i think that's, it puts an additional burden on us that isn't appropriate i think pg and e should step up to that and make investments themselves. >> that's going to happen real soon. . >> of course. >> it is a real dilemma and it's not something that's just us, it's statewide

we deliver 220 million gallons of water per day from hetch hetchy. water leaving hetch hetchy travels to one of our reservoirs. it's a high quality water source. we do not filter the water. we just disinfect it. we have from the environmental protection agency and public health. we have 1 billion kilowatt hours each year on average. our sewer system is a combined sewer system. we take in both our storm water and our sanitary sewage into same system. we are only two cities in the state of california that has a combined system and the other is in sacramento. you will find most of the older cities in the united states has a combined sewer system. new york, philadelphia and others, chicago. we do have a system that's own 100 years old. the city has been around since the gold rush. we have about 1,000 miles in the city. what are our core priorities: there are three, deliver high quality and reliable services. that's what our people do 24/7. we need to maintain our critical infrastructure. we'll talk about that and last but not least, we have to be afford

for hetch hetchy bond and my understanding is that mr. chair that specific appropriation and the sale of the issuance of the bonds will be considered by your committee next wednesday that's my understanding i'll report on that subject including the deappropriation will be issued to the board of supervisors tomorrow i want the board to know it's not included in this specific budget. >> so for committee members we're going to continue the supplemental to next week's meeting so an budget analyst report then. supervisor farrell >> on item 10 is mentioned the appropriation for the clean power sf that's before us today. >> yes. my understanding. >> just our analysis. >> my understanding is supervisor avalos because of the issuance of the bond were not on the calendar that the clerk stated that the items could not be considered until you have the issuance as well as the appropriation that's why we didn't reporting report on it today. >> that's correct. >> members and audience ze we have difference too the department and puc but we'll work with y

only $45 million in the fall as opposed to $72 million that helps there and the hetch hetchy plan is now balanced over 10 years and we'll be back before you every single year so with that item 16 then is the first 2 years of this plan and a request of the general manager to request supplemental appropriation. happy to answer any questions. >> so with respect to the slight changes this typographical right? >> yeah they are headings so scenario 1, 2, and 3 -- cso is very detailed oriented so i'll provide those for the record to the secretary as well. >> there's no objections from my colleagues very good. any questions? >> thank you todd. >> thank you. >> so with respective to items 14, 15 and 16 right donna? >> correct. >> i'll call for a motion unless the commissioner would prefer to do separately. >> so moved. >> it's been moved and seconded. >> i'll now call for public comment. seeing none public comment is now closed. all those in favor please signify by saying aye. >> madam secretary will you please read the next item? >> would you like for me -- >> closed session items which we'l

year to 2023-24 and consider the adoption of a 2-year capital budget for the hetch hetchy water and power including the power enterprise for the sfpuc for fiscal year 2014 and fiscal year 2015-16. >> general manager and cfo have been before you in some form numerous times since february but these updates are all reflected from what's been assumed in the mayor's proposed budget. but i should briefly walk you through what the changes are -- again the 10-year capital plan and financial plan are important because the charter requires them as well because they go into our bond documents as we'll be selling bonds for the first time since the completion much of the hetchy assets so i'd like to point these out and i would also like to ask the chair as well to allow an amendment for staff to make a technical clarification on some of the descriptions and i'll point those out just so we have common descriptions. >> okay. >> so the 10-year financial plan before you today on item 14 and it goes through the various scenarios and balancing solutions we had capital cuts deferrals and to be above ze

from the overview i just gave you from the last time steve gave a presentation hetch hetchy storage is up 14 percent so quite a bit of inflow over the last month and down 12 percent that's because we've been debiting the water banks for total system storage we're down by about 1 percent that's taking in all of the inflow then all of the deliveries that we've been making in the last month if you take water bank out of the picture our storage is up 6 percent so a lot of debiting of water bank right now. this shows you where our precipitation is the blue line is 2007 and the red line this year and yellow or gold line is 1977 so you can see we're well above 1977 for precipitation for the year we had a very little bit of precipitation last week so you see just a little jagged bump up there. and really our rain season is towards the end we've got about 6 weeks left of the rainy season but snow pack conditions -- as you all know, we were significantly below the hundred percent median for april 1st we're now tracking well below 10 percent of april 1st conditions just to put that into relative

>> thank you one thing that occurs to me is that we often think about the provision of hetch hetchy power as a cost benefit the fact is we also provide assistance to city departments to minimize their consumption and above and beyond the rates that we provide to the city's departments. >> thank you commissioner moran so at this point i'm going to ask that the general manager work with me and commissioner vietor to come up with some general outline related to specific topics i don't think there would be any disagreement related to our objectives related to renewables and wastewater management we talked briefly about the chemicals i think that's in the wheel house but obviously we have an option to add just keeping in mind there's only so much time we are able to do it and we deliver that message to the environment commission and proceed from there are there any objections to that? >> i think to add to that even -- we do have a climate action plan i believe that's been adopted by the city so maybe it's the big take away is on how we're going to get to where we need to go. >> water conservat

tunnel where we have a cat traffic collapse or under arrest that's why you see the significant hetch hetchy balancing request. the solvency over the next 10 years comes down to a message you'll hear repeatedly from us keeping the healthy hetch hetchy that means we'll have to be back before you and the mayor's office and other policymakers every year asking for general fund rates to have the ability to have more fully paying customers or have more power revenue bonds or have to revisit which we do every year the problematic cuts or deferrals >> real quick it strikes me we're going to have a discussion around cca and the big deficit is because of house/senate and the mountain you tunnel can you talk about that what that means deferring capital there's a reflex what's the risk level, you know, obviously there's been a policy decision i'd rather fund tha rather than that people can draw conclusions here and there's a couple of i think straightforward for example, one the mountain tunnel an assessment was done we have more information as well as the reinforcement and the realigning in the that t

to adopt hetch hetchy item 20 public hearing to consider the adoption of the 2-year 2014 and 2015-16. >> general manager and cfo my comments today will be brief on these 3 items. i've got 11 slides i'd like to walk you through. what's in your packet today is a lot of progress that we've made under the leadership under the deputy manager as well as the general manager the information in your packet provides 3 potential scenarios would be called the financial plan option however i would also want to let you know that we're continuing to work with the mayor's office on additional scenarios the great news is each of these scenarios is above zero so we've solved a very large half a billion dollars problem with these choices if implemented the hard news is that it did not come without very difficult choices so you will see our capital plan in your packet and the hard choices to come up with about $179 million of cuts to solve 40 percent of that half a billion dollars shortfall the other solutions are revenues higher rates from the general fund as well as additional bonding capacity. that b

is 63 percent of maximum storage we're able to keep more in hetch hetchy partly due to the use of our water bank which we'll talk about in a little bit. back in january we were below the orange line the orange line represented 1977 water year which was just about the dryist year on record and even with no more precipitation we'll be better than 77 so the picture has improved we're talking about the lower end of the spectrum here this is still a drought condition make no mistake about that we can work through as long as we conserve and manage our resources wisely the snow pack never really got very high only the maximum about 40 percent of the medium snow pack so the medium average level and it's as you can see tapering off melting and running off into the reservoirs this chart shows weekly deliveries through april 14th and starts on july and those are weekly numbers there the red is 5-year average and the green is this year and the dashed black line is what we're trying to get to in terms of reduction and so you can see it's been variable bouncing around that 10 percent reduction line

they have been given hetch hetchy water bottles so they can have drinking water at school. last year we were doing workshops to train on the water curriculum and worked with more than 60 teachers so far. here is a picture of teachers going through one of the lesson plans in the curriculum where students pretend to go back in the days of the gold rush where water was limited and they had to do daily activities using a limited amount of water. if you have only a gallon of day how you would use it so students understand how modern plumbing encourages us to use because it's so readily available. we also partner with the sf puc and all three enterprises at the puc and there is toxic program and zero waste program to sponsor the connection. a program with the san francisco unified school district where stults -- students from title one school learn about water shed prevention and waste, energy efficiency as part of this program. and we also cosponsor field trips in regards to the environment. a great opportunity for students to get their hands in the dirt and learn about science

the hetch hetchy reservoir near yosemite. tonight a look at an innovative project to keep water moving in the event of a big earthquake. >> from the ground like any other hole in the ground m a construction site. go below, and you'll see why this is special. >> hayward fault runs below and through this area. >> keeping this pipe working in a major earthquake for people in the bay area. >> it shows it survived the earth kwa >> allen overseas the commission showed us around. it's like a giant room surrounding the pipe. and the engineers designed two of the larnlest trains ever manufactured to make sure it stays intact. this animation shows how two work together whchlt a quake

the puc to meet the revenue requirements including revenue, recover to funds that to fund the hetch hetchy capital improvement program so we can add in the resolve paragraph so hopeful that will address the commissioners concerns. commissioner moran >> yes. thank you commissioner president caen. >> i do there's at least one other place it talks about the purpose of the rates the only piece missing is these rates basically were adapted by commission within the budget as part of the revenue package. which taken as a whole was sufficient to meet our operating and capital needs that's the one thanking thing that's not included if we could quite frankly that's most appropriate but something we'll realize those rates along with, you know, others revenue provisions a budget adapted by commission whatever day we did that the would deem sufficient to meet our operating capital needs. and so where do you think it's more efficient to put it or do you want us to put it in or add what we've stated and add an additional sentence or in the one of the whereas on page 2? >> city attorney's office. is the p

about in april 30th meeting the biggest challenge the puc is facing is a fiscal sole vinsz of the hetch hetchy power you've heard me talk about the wastewater improvement needs but now a you're increasing hearing the country at our house/senate water and supply and water and power facilities those facilities have served the city well by they're not 60 to 80 years old and in need of significant investments we've worked with the mayor's office to balance our situation in this two year budget and over the long term. they're a lot of hard choices to make but working on multiple front i'm going to turn it over to todd to go over more detailed presentation i'm hereafter the presentation to answer questions >> thank you mr. kelly. >> so hello todd here. i'd like to walk through some slides as well as the public and echo what mr. kelly our general manager has said. the number of our slides addresses the specific questions on the april 30th hearing from our department. we for the public and the television viewing audience we care about the infrastructure the water, the sewer, and the electricity largel

having said that, i would encourage the san francisco puc to bring full on hetch hetchy and bring to san francisco here our home. don't sell it to somebody else and you have those permits and when those permits come before you, don't renew them. bring that hydro electric city right here to our city. let's see if you can do that. regarding the department of environment which was created not long ago by willie brown, i would encourage the department of environment to enforce the precautionary principle. you heard dr. spinola speak about contamination in the bayview. the department of environment hasn't said a word about hunters point, hasn't said anything about this rogue development harming or children and elders. hasn't said anything. if the department on environment dare to do the right thing or just to rubber stamp, we want to know. the precautionary principle and those who want to learn something is to find out that there is something wrong or contamination or whatever we need to stop and we need to go into investigation mode and see and he talks about our life, not only human lif

that is an historic -- that is an historic method that has been applied to the hetch hetchy system for all upcountry facilities. we arrived at that method -- it's referred to as the separable cost methods where you look at what it

that is an historic -- that is an historic method that has been applied to the hetch hetchy system for all upcountry facilities. we arrived at that method -- it's referred to as the separable cost methods where you look at what it would have cost to provide the water service separate from the power service or the power service separate from the water service and see how the costs would have broken out? when we performed that analysis some years ago, utilizing consultants, we arrived at a figure -- a split, went into negotiations with our wholesale water customers, who also had views on how these asset costs should be shared and arrived at the 55/45 split. this is a method -- the separable cost method is used by the federal energy regulatory commission and other municipal utilities with joint asset as components of their service. it's a recognized method. >> it's not a required method though? >> no, and it's not the only method. it's one of the methods that is used, but it is a commonly used method across the nation for allocating costs. >> why wouldn't you -- in a simplified world the

course, we coordinate with the puc whenever we realize that there is an issue that might touch hetch, hetchy and there are issues that are hot and one of them is access to data because we can't really do effective marketing and track our programs without having good access to data and another issue that we are facing today is as the state energy code goes up, the way that the rules are written, is that the amount of incentives are able to give to a building owner, reduces. because it is only the difference between what the base energy code is and what perfect would be. and so as that reduces, it means that we have had a lot of measures that are starting to fallout of the system and we are seeing a reduction in the actual energy products being performed and this is something that the state is well aware of and the utilities are aware of and we are trying to figure out how to solve this problem. >> and any questions? >> i am here to answer them, thank you. >> and finally, if any of you have not yet participated in the energy upgrade, california, and have the brochure here one for each of you a

. >> the goal with the hetch hetchy program, we have to deliver water within 24 hours of a earthquake. >> work on the project is expected to be completed early next year. dan ashley, abc7 news. >>> much of the work on the hetch hetchy upgrades have been completed. 80% of the project is finished. lisa is here now talking about the weather. all kinds of things, dry lightning, which i have never heard of. a little bit of precipitation maybe. >> wind and fog. yes. this morning we have the fog banked up along the coast. but it is sunny in most areas. we will have some gusty winds throughout the afternoon, making it feel cooler than the temperatures. so check out live doppler 7hd. this is why all those things are going to happen. it's an area of low pressure that will sink to the south and east. that's providing the sea breeze and the cooler-than-normal air and also the chance of a sprinkle and a thunderstorm with dry lightning through tuesday. mt. tam higher elevations, the winds are kind of gusty and you can see the marine layer there. 61 in oakland as well as san carlos. 62 san jose. hal

dan ashley, abc7 news. >>> much of the work on the hetch hetchy up grades have been completed. 80% ofhe project is finished. >> lisa is just getting started with the weather forecast. fine-tuning the seque there. minute by minute. a pretty nice looking morning for the bay to breakers race. we will slowly climb to the lower 60s throughout the latter morning. you see some of the higher clouds over the bay. the cirrus clouds making it pretty. we have the low clouds be below and city between. very dramatic with temperatures ranking from the mid-50s half moon bay in san francisco and upper 50s oakland, san carlos and morgan hill. the roof camera shows a little bit of a breeze out there. this continues to ramp up throughout the afternoon. here the embarcadero. west wind. 53 napa, 56 fairfield, 55 in livermore. upper elevations are looking at some gusty win. and with the gusty winds that has allowed for temperatures to stay a little milder this morning. anywhere from two to nine grease milder in general but along the coast a little cooling and a look at the upper elevation winds, 23 miles an

manager for this and our agency provides one hundred percent of green house gas gas free from the hetch hetchy bio gas and is also solar. we use that power to provide the power to the airports and muni and to city hall, to our 525 golden gate and facilities like this. we're proud to provide those resources to help those facilities obtain a hundred percent greenhouse gas free power. so one of the things this project that municipal power we partnered with public works the department of public works installed the solar panels we saw them from our building we wanted to make sure they installed them and my office was right there i offer saw the installation of the panels. they did an amazing job my hats off to the puc and the dpwic together as a team. so one of the things the puc wants to do in our water diverse our water supply and power we're looking to install important solar installations like this this is our 16 solar installation we've installed and thitsdz been amazing to see the benefits in investing in solar this wouldn't have happened without a mayor like this who talked about renewables

you heard about the issue of the power rates at hetch hetchy enterprise and as well as the additional federal cuts for hiv and aids services. we are looking to include that in our budget. the language access ordinance has now identified tagalog which is an additional language accommodated as part of that language access ordinance. we are also figuring to understand the impact of any minimum wage proposal that might go forward to the ballot and how to accommodate that in the budget. i know there are discussions around city hall about what do we do with the children's fund and to the degree that it increases. that will have an effect on the financial outlook of the city. in terms of balancing we are working with the department with solutions that they have proposed to us and finalizing those solutions as well as other citywide solutions over the next 2 weeks. happy to answer any questions you may have. >> thank you. colleagues, any questions? the mayor's budget director? okay. thank you very much. we'll open this item up for public comment. seeing nobody in the chambers, public comment

you've heard we've worked closely with the puc to put together a financially responsible budget for hetch hetchy enterprise. i want to say i can't tell you what do i if you table the budget today. of course, i'm happy to a talk with you and the mayor will work with you on this issue if there's further discussion to be had my sense it there are many of you who want to talk about this with him. i'm encourage you to continue the budget rather than tabling it the reason is it gives an opportunity for that the discussion to happen before june 1st budget will be submitted >> colleagues, i think we're going to consider this in a second i do have a question and to frame it and give mr. rawlins field or the it is a there's two options if so we table we make an decision to sever certain items then the mayor will have the opportunity to look at that and we will have the period of time afterward to consider the budget. if we continued the item today as we were going to do with the other departments we'll revisit this next week there will be the period of this week to have the discussion with the mayor's off