>> that is puc money. it was added back in the board of supervisors project, where there were budget cuts during the process and then individual board members asked us to do additional work. >> this is ratepayer money? >> yes. >> one thing i was not -- there were a couple of areas that raised questions for me. one was in the plan itself, not in the mou, but in the plan. it talks about the need for making facility improvements, and in some cases new facilities. i guess my concern is that somebody's expectation is that we are. the other flag is that i could not tell if there was a transfer of responsibilities. i could not tell what the dollar impact was. there was no performance statement of what would be responsible for, and nothing offsetting that as far as what rec and park would be responsible for. i am concerned about the blank check aspect. i would be concerned about the obligation we would be getting into. >> first, on the change of responsibilities, with the responsibility of a specific lease, we wou

it leads to specifically identify the puc. the that should be the agency in charge of stewardship and management. the recreation and park department should continue to manage harding golf course and provide habitat restoration work done to the natural areas program. there seems little else, in terms of recreation abatements, that is in need of day to day management, or that the puc could not do. in the future, recreation activities that may require expertise could be identified, planned between the agencies and the public, and delegated as appropriate. otherwise, there is nothing that warrants and mou between the agencies. the puc should assume responsibility for all infrastructure, including docs, restrooms, and future buildings. it is your responsibility to assure the lake is not used as a dump, that erosion is controlled, that the wetlands are protected, and that wildlife is protected. as an agency that has developed master plans for other elements of the water system, you have an excellent track record in planning. golden

this is the way the puc works. >> excuse me. we're considering the minutes. >> it is in the minutes, sir. the minutes said i suggested it. i did not suggest. i said there is a problem. what i said two weeks ago, said the puc needed to investigate it. i came in with a good heart, telling the puc this is what i found. the first thing that i find out is that the puc told then that i complained about the abbottabad is not acceptable. >> as far as the minutes are concerned, is there an issue with what they say? my impression is that they were a transcription from the reporting of the meeting. >> with all due respect, the word that has been used in the minutes -- let me read it. he further suggested that he believes that there were inappropriate billing on some of the wsip regional projects. this is on page 3. i did not suggest. i confirmed that there is. i further confirmed -- let me put it to you this way, sir. no one can get documents like this. >> if i may interject, mr. president. we discussed this at length last meeting. it was

because of that, we are asking the puc to support the extension. rboc is a separate independent oversight body, recognized for its transparency. because of that, it has been favorable to the bond rating. we believe the extension is a worthy one. we ask for your support. thank you. president moran: ok, thank you. commissioners from any questions on this item? public comment? seeing none, men have a motion? >> so moved. second. president moran: all those in favor? opposed? the item carries. thank you for your work. i appreciate you taking the time to come here today. you're not compensated. we recognize that. we value the service you put in. thank you. now, getting back on track. my intention is at 3:00 to call the budget item. so in the next half hour, let's try to get through everything else. >> so the rates, what is going to be the process and the timeline for the rate discussion on this 2 cents vs four since per is a cost recovery? >> that was option 1a and option two. we have option 1b that you'll hear about. the discussion was that you would be

it is a pleasure to work with the puc. thank you. commissioner vietor: thank you. >> next is our quarter one financials. i will give you an update their pit our deputy cfo presented it this month to you, so you can get to know her better as well. i want to thank francis because she does a lot of the heavy lifting on the quarterly financials as well as the annual financial, working with our external auditor. if she could come up. >> it afternoon, commissioners. deputy cfo here to present the fiscal year 2012 first quarter budget update. the first one highlights the keep budgetary variances. water use and sales from july through september are lower than assumed in the budget. retell water deliveries averaged 5.2% year-to-date, below the prior year. there's also lower water demand in the municipal departments, and the wholesale trends continue to decline with wholesale water delivery 9.6% year to date below prior year. water and waste water sources have a similar story. basically lower than budget due to lower water demand and treatment

it says the puc will only it says the puc will only authorize the general managers

it has to go to the puc. the second is that we did not have ceqa language. we added ceqa language, adding that it would be covered. the third is to be even more clear. it says the puc will only authorize the general managers to launch the program as long as it is a per by the board of supervisors and the following conditions are met to the satisfaction of the puc, and the same language stays in there. we wanted to make sure that is on the record. president moran: ok. so what is before the commission is the substitute resolution with the addition of the two whereas clauses that were just read earlier. ok. public comment on that item? >> good afternoon again, commissioners. san francisco green party and the local grassroots organization of our city. a few things on the amendments that you're going over. an important one is the ceqa issue. what we're seeing out here is that we need the final approval of the shell contract and the program that is being based on it to be contingent upon the build out work -- and by the way, not necessarily the full nine to 11 mon

strongly support the puc. thanks. >> thank you, mr. harrington your work at puc really shines

strongly support the puc. thanks. >> thank you, mr. harrington your work at puc really shines supervisor mirkarimi, your work on the budget committee has been just fine i think it is time we looked ahead, we looked ahead and not behind you are riding on the back rows of the river of my puc memory and it is ever gentle on my mind i am so glad that you gave it the time i know that budget money is money that is awfully hard to find and i know i am glad you made it all through the city budget grind you are riding on the back roads, the rivers of my memory and your budget puc is gentle on my mind i know it is not just another line i know that you are going to look ahead and not behind and it is time we looked ahead and we are going to find more money this time and we are riding on the back roads to the rivers of my memory and your budgets ever gentle puc on my mind on my mind supervisor chu: thank you. are there other members of the public that would like to speak on item 9 or 10? seeing none, public comment is closed. colleagues, on item 1

there was a larger issue of rates and what the puc is charging. it's not directly connected to the cca. it deals with the larger issues of this commission and that is a discussion that is also taking place. i think the board understands that very important role that the public utilities commission plays. i think there is a real interest in making sure that we have as viable lead agency as we can and we remain the innovative agency that we have been and that we continue to be really leading the way nationwide. >> i want to make sure with mike campbell and clean power sf, the time is enough for the board to get better educated this since it is so complex and of his companion re peace. i would urge the staff to make sure that as these hearings get scheduled -- there is a lot of education that might need happen. >> i think it is important, commissioner, also making sure that those discussions go out into the communities. we have a very diverse communities that need to know more about this. and the impact on would be directly impacted by this program.

it has to go to the puc. the second is that we did not have

this is important for us to understand that there are long- term implications on the puc. the p c is a very important asset to the city and candy of san francisco 10 too want to make sure how this is properly handled. we will be hearing from the public commission today. some of the numbers are so sick with that practice and some thoughts about moving forward to. what happens, there will be a budgetary impact on city agencies and city departments which is why i think it makes a great deal of sense that this is happening in the context of a larger budget discussion. i look forward to the presentation, the discussion. i apologize that i must about 4 part of the meeting but i have a previously scheduled meeting that i cannot change at this point. i would like to thank the puc, the general manager, and his staff, for the good work on this issue. >> did you very much. i will ask the mayor's budget director to come forward. >> good morning, supervisors. i'm here to represent the mayor's budget instructions for the next fiscal years. i will start off with a little bit of context.

i believe we have bart and the puc on this item. >> good morning, government affairs manager with the sfpuc. i am here today to talk about an ordinance regarding agreements for the tracking of environmental attributes. environmental attributes are things like renewable energy credits that are generated when it renewable electricity is created. it includes things like cap and trade emissions of said, which are created when you undergo an activity that actually reduces greenhouse gases in the atmosphere, such as the planting of trees, emissions allowances, which are actually impacting the environment but it loud and emitter of greenhouse gases to actually do that. and then, low carbon fuel credits, which are part of the air resources's board effort to reduce transportation and fuel and backs in terms of climate change in greenhouse gases. the ordinance before you does three primary things. first, it authorizes agreements with the western renewable energy generation information system, which we call regis, and that is for the certification and tracking of renewable energy credits associa

this would update the puc resolution. it does not replace that revolution, but would define better our responsibilities, defining the rec and park responsibilities. the whole point is we defining the responsibilities so that expectations are clear for all to say. on the pc front, there is a laundry list of items about attracting collaboration with rec and park, really focusing on water levels, water quality. we monitor that to maintain and operate our structure. rec and park do a lot of day-to- day activities around the park, in terms of gardening and crash management, things of that nature. protecting water quality, one of the key things is if we find something that is not working out the way it should, we would direct, for example, rec and park to change that facility. we have that authority to do so. one of the things we do is work with the department of fish and game to enhance regional fishing opportunities, and work with dpw on parking facilities around the lake. this more clearly delineates the puc's direct respons

we it knowledge the need for something at the puc, but we also are not in the best financial position ourselves to be observing cost increases. supervisor chu: thanks. >> some key assumptions to give some context to our projections. we assume every year current staffing levels and service levels, except for known changes, like implementation of health care reform. this does not represent new policy initiatives or increasing the city workforce. we are using our five-year plan assumptions as far as salary increases and health benefits. you want to be consistent with prior projections, with the report will come out in march. this includes the passage of prop. see, that i will talk more about it a minute. it assumed that we increase our state reserve back to $30 million from the $15 million that was included in the past budget. was included when we decided to move forward with proposition d. -- g. because our revenues are growing, we are assuming we will not be able to withdraw from the ring in david reserve -- rainy day reserves. while we start with our lost up on balance we assumed in t

and whereas the puc anticipates the immediate commencement of the local buildout. once the have completed their scope of work, sufficient revenues are identified, the sfpuc considers the environmental analysis of any physical impact of the local bellout -- buildout program, and approves the budget and timeline for the local buildout. president moran: any questions from the commission on that language? >> second. president moran: procedurally, we don't have anything to make an amendment to yet. let's just do this and a simple way and tell me if it doesn't stand up. let's vote on the language, we can move the replacement resolution that includes that language. >>-secon

this would update the puc resolution. it does not replace that revolution, but would define better our responsibilities, defining the rec and park responsibilities. the whole point is we defining the responsibilities so that expectations are clear for all to say. on the pc front, there is a laundry list of items about attracting collaboration with rec and park, really focusing on water levels, water quality.

we are getting some cooperative oversight from everyone, california puc as well. there is cooperation and every point. we are not blaming anybody for this accident that occurred, but we are all going to make sure that this does not occur again. we are all on the same page. i lead that effort, talking to the ceo of pg&e this morning. >> [inaudible] >> we are going to go through that. there were some bomb threats that were well-handled yesterday by the police department, but there was no indication, right anything other than an accident. we will continue to compare notes with everybody to determine whether or not there were any external events that would have caused this. so far, we do not have any information that suggests this would have been tempered by anyone. that is with the concurrence of our police and fire chief as well. >> [inaudible] >> again, this was an electrical service to the stadium that failed. our offer is separate, to build a brand new stadium, along with santa clara, with new linkages to power, and new lights. these lights take some time, when t