richie richie. >> method am feetphetaminesamphetamines. r what i see is a person who didn't have any hope. this is me getting baptized in prison. >> folks that stay here in the pathway center. >> john: richie has been in recovery for nine years and now has his children back. >> it's done more than just changed my life. >> john: richie is among the pour trailts of possibilities. going face-to-face with himself is heavy. gazing in to his own eyes with clarity. >> what i see is exactly what he's trying to do. and that's to bring the recovery to light. >> it's hard for me to watch people because i always get tied up and emotional about it because -- >> john: only one place to turn. >> there's a difference between the tears of sadness and the tears of joy, man. >> john: this is douglas' self-portrait. in recovery for almost two years. creative sparks are often ignited by something deeply personal. >> that's what's going to make this a success. >> it's hard because i connected with so many people when i was in addiction just because i was drunk most of the time. >> john: now the connection is real. to an artist on so many levels. something in there that speaks to me that tells my story as well.

richie. >> gadget steve richie assistant general manager for the water slides please with the drought updates pretty standard here again, our reservoir levels show you hetch hetchy is still about 72 percent holding steadily and drawing down the water supply before you in flows and water bank has down and maintain that up in the hetch hetchy reservoir the precipitation front again, we're still ahead of the medium curve for precipitation for this water year that given on october 1st that red line the black line is the medium we actually for the last year left off 1993 that is the blue line we've added it in for a target to shoot for the snow pack has leveled off over the last few weeks but we have seen a fair amount of precipitation in october and november above average a 40 in percent and more expected on thursday locally we'll have a half of inch in december not nearly as much of the upper country level on this front the precipitation forecast rookies good an anticipation one or two feet of snow in above 7 feet in the sierra and pro tem on the snow front whether it is up country or in the bay area as well both for thursday turning to consumption those are the october results again in the 15 lowest per capital a 13 are them and customers for san francisco again about 41 gallons per person per day a low use and is wholesale and the city customers are doing a great job at conjecturally that was october the total chart shows for thanksgiving week demand was down region wide people didn't washer their dishes from thanksgiving dinner but matches colonel in the christmas week that last blue front so we may go lower than last year before the late season when you get do winter the irrigation is gone that is indoor use and eventually cutting back on the total system water savings continues to be high one of the things to know about this that the state water board held a workshop talking about the extension of the drought regulations into 9 next year the govern made a declaration a few weeks ago the drought continues to extend them to october there's been a lot of discussion about folks in the inn land a climate jauflt factor for them and we've indicated in our comments well, if they maintain the goal of 25 percent and reduce there shouldn't be pressure on those folks for low capital to explicit conserve lower we've been working with groups to have redirected impacts of giving someone a break somewhere for that someone doing a good job in early february we go forward that's where we are at i'll be happy to answer any questions. >> commissioners. >> no. >> all right. next item. >> >> so the next is the hetch hetchy cip and at that point wastewater data at the same time. >> good afternoon, commissioners i just wanted to highlight where the delays or the cost increases were and so for the water and joint projects one project a scheduled detail the lower cherry aqueduct for the permitting approval that took are longer we originally anticipated and we have two projects showing cost increases one is other power house projects additional equipment is being ordered and installed and the other is cherry dam outcomes this was approved without construction funding so the increase is to include construction funding the power projects we have 3 projects that are showing scheduled details one is civic center and the sustainable program under the efficiency program it is really depending on the other departments main dpw doing their improvements and getting money to do the title 24 and energy efficiency projects with the larger programs and the other two are the meter monitoring both of them are do not selecting a consultant for strategy those are the hetch hetchy capital projects for the wastewater capitalized one project that is detailed by approximately, six most that is oceanside plant handling and coding and the delay is in construction and there is more co-rotation repair than anticipated so that work is being completed right now so why is sustainable civic center they're waiting on funding you know barb can help me if i'm not mistaken the departments do the work and come to puc for title 24 and have energy efficiency in the building we're not the lead on the projects you. >> so is there a way to giving them encouragement or a letter of something. >> barbara hale assistant general manager our need to collect data about the operations of the building and that in and of itself is an important task for the efficiency measures and that takes time some of the projects taking more time to get the staff support you know the building operators are altitudes very busy and we're coming and knocking on their door to ask them to take on a new task that part of challenge but we have the contracting capacity and have the ability to provide the support we just need to move it apace that works for our customer. >> so can you please come back with a timeline to get this done with a sense of urgency those have lost budget money but seem to be put on the back burn they're important. >> we can definitely reach out to the other departments that have the facilities but again, it is really challenging when hair operating the building and asking them to get data i mean by just in the nature it is like on the back burner and they're under staffed we're doing everything we can to encourage them. >> come back with a timeline that would be great as well. >> next item. >> lowest the process report >> good afternoon, commissioners eric sandler assistant general manager of business services today, this stem is the next installment in what has been a series of presentations reviewing the commission policies before the adoption of the new budget a memo and a policy in you're packet and this presentation summarizes some of the highlights we're talking about the rates policy which was established in february 2012 but essentially was a codification in policy form of a number of rates and charges with respect to state law and the city chapter and best practices since then adopted a 4-year of sewer and water rates with wholesale water rates and a number of action on power rates so the policy the itself is composed of 4 principles the first be affordability relates to the level the stability of roeven harasses with the long term trend compliance with the late regarding state law contractual sufficiency relates to if you cost recovery you recover all the costs of enterprise and transparency relates to how the commission goes about developing vetting and proposing and adopting the rates here's some the progress related we regularly show you where the typical bell for water and sewer sophomore puc services compares with other local utilities and we regularly present the 10 year rate projection with the 10 year capital plan and made adjustments in the last study taking form some the rates more the clerk will take the roll to cost of service principle and be compliant with them and the great making has involved the transparent process with the oversight by the revenue by the oversight committee and siding and the rate fairness board and commission you know as we look at the policy as i reviewed it i think one of the things that struck me which is a theme we've talked about for that the last several months is the review availability we've been seeing the impact on all the enterprises as we entered this extended drought we'll recommend the commission rises the policy for this to perhaps enhance the sufficiency principle to identify the need to balance competing policy objectives when looking at rated skyline so the trade off between a conservatism on one hand and revenue 125ib8g9 on the other so to refresh our memory on our retail water revenue is approximately 15 fixed and metric the sewer rates are 100 percent bio metric so you know as we're dealing with the drought and embarking on a very last year capital improvement plan for the sewer system is it mines to i think we consider our rate structure issues so we recommend that you direct you go us to come back with a policy revision for the consideration and in january we're planning to come and speak but a little bit on the activities with respect to innovation and our wet weather charges i'll be happy to answer any questions about the rate policy or take any direction from the commission. >> first of all, thank you very much i appreciate you're putting this together and as we've been looking for ways to accomplish that i think you're very close to the mark you appreciate the work you do that i guess one question and then a couple of comments the question one of the things the written policy calls out specifically we follow best practices as far as funding our costs i don't know if you have a quick answer or on opinion about that when i talk about traffics that's one of the areas frequently one of the lows that can shortchange r and r as a question when is you're sense as to how we're doing on this where we're funding appropriate level something we should look at on the budget coming down. >> so i think some of the challenges you know when the budget that is coming forward has responses to investing in r and r over a 10 year period one of the challenges not only how you invest but how you fund it, it is easy to become addicted to depth and instruction of assets to be reasonably assumed to be rate funding that investment is it so hard to make those transitioned when our facing impacts with respect to increased volumes but i'll suggest it make sense for the commission to consider in its debt policy a consideration of how much it wants to fund it's capital improvement plan with rate funded revenue or debt funded revenue a nice compliment to an r and r program. >> we video a separate policy as you recall that we're going to do be reviewing or is that - >> that's been reviewed early in the year january or february. >> if there is something like that that is a clarification that would make life and direction easier i would encourage you to come forward and propose a change to deal with that and similar kind of thinking a and you talked about maybe amending this policy to include moving towards rates that more fully capture the rates cost i'm encourage you to come forward as an amendment to consider one thing i noticed that is missing from here was a statement i know what the commission intent direction has been but not made it into the policy over time we wanted to move hetch hetchy general fund power rates towards market and that's something for some reason we didn't put in the last time i - part of the reason for doing this not only hocking to see how the department is doing with complying with the policy the other thing the test of the policy itself is if there is areas the policy is deficient more guidance or you think that the commission on record is helpful that is part why we review this coming forward with the amendments that will be helpful. >> want to clarify i stated you wanted us to show the general fund departments cost of power comes to the cost of market are you talking about the cost of delivery or you're referring to power or i want to be clear. >> it would be probable be better if i were clear over time the specific obviously how fast that happens it has ripple effects over time we migrate to the energy efficient resolution. >> i think the goal was 0 the cost of actual delivery verse the cost of market so for example, from the cost us $0.10 per kilowatt for 13 we need to show some benefit providing a power. >> i wanted to - >> i was getting greedy again. >> perhaps you're right that reflects what the commission. >> as well just to let you know we're in the process of working on a cost of service study for the power enterprise so we will have a really good 10 east sense of cost of services and other rates and how much will our full costs of service might be. >> and it maybe appropriate to have some statement to the effect i'll hate to get into a position to charge the rates just to cover the cost we may want to a parallel statement that says the objective to manage the enterprise such the costs are less than. >> you want something the efficiency principle raedz addresses that would you want a specific element in the policy with respect to the power rates or - >> i mean, i think my sense is yes and certainly when you come forward we'll have a discussion of greater depth but my sense that is something that effects so 34 people and because of the departure from past practice we've moved in that disconnection it is important to have its own medication you can point to and talk about to people. >> okay terrific. >> this question around the cost of service is relevant to all 3 enterprises e enterprises it is hard to separate from the debt policy when you come forward with our recommendation on a fixed rate it should reference or refresher our minds on the debt policy piece it the r and r question which could fall under the what the could have of services does it fall under it seems to me that would so nuance in there i think we want to try and capture the high-level of policy in order to set the policies needs a better understanding. >> we have a great opportunity to revisit in a comprehensive way you know our debt service ratio and capital improvement plan and r and r policy. >> our hetch hetchy and rates and charges. >> so figure out when we can undertake that but a helpful education process. >> i think that is a good idea as we enter into budget time needs to make decisions so somewhere in there to do an education i don't want to lose site of the stormwater. >> that will be part of it we're bringing that in january for an update. >> yeah. i think we are hopeful that by the time we introduce the new i guess rate structure we will have all that ironed out but bringing it up more and more we've already looking at what the impacts would be if we were to do a wastewater fee for example, we've been go talking with the mayor's office of the bureaucratic budget with the general fund increases over time so we've been you know talking about that as well so but, yeah i think we definitely like to talk about it for about the wastewater it takes a little bit of time to do the study get information we're hoping that when - >> we have a significant amount of work in the off year next fiscal year implementing our executing the cost of service study for wastewater we're doing one for power i think we have the probably the ban width for the commission to look at the enter play between those policies. >> maybe give you a schedule of activities to lead up to when we present to you a full picture of what the rate structure would be moving forward including the wastewater san francisco entertainment commission fee and decide how much fixed cost for wastewater and water so we can probably do a timeline. >> we'll put together a rough speakers shall address their comments to the commission as a whole and neither the police commission nor the over the next you know two years what we hope to cover when. >> a policy question i feel we'll need some of that information in order to be able to amend the policy i imagine. >> yeah. >> thank you very much any other questions or comments? anything else on the general manager report >> that concludes my report. >> next speaker, please. >> oh, public comment on the general manager report? >> hearing next item, please. >> item 582015-2016 financial audit report. >> r6 /* r67 2015-2016 audit report. >> good afternoon, commissioners this is franciscy deputy chief financial officer for fiscal year 2014-2015 those financial statements were audited by our dependent auditors who have render their opinion the opinion for each of 3 enterprises for the 7 consecutive year in a row each enterprises has an unmodified clean opinion of the financial statements 6th district at large they're appropriately presented containing no artificial information additionally the city and county of san francisco adopted the golf standards board the statement 68 forth and financial reporting for pensions and this is one of the reasons the financial statements were issued in november instead of the earlier timeline of october in the past the comprehensive annual financial reports will be issued tomorrow and we expect that we will submit to the government finance office association the g f o a an award for excellence and financial reporting again, no questions i'd like to introduce jenny the audit senior manager to present to the commission the audit results of the 3 enterprises. >> thank you my name is jamie a senior manager i worked on the puc account for 3 years now so thank you for having me. i will be presenting the 2015 audit results to the commission and it's presentation will address the communications to the board and in accordance with the audit standards one 15 and provide a high-level similarly of 2015 audit to start responsibility to perform the audit under the general accepted auditing standards and the government auditing standards and we extensive the internal control for efficient audit approach not for the purposes of an opinion or assurance of operating effectiveness of the control a pubically trade company we design the procedures based on the understanding the puc and not saluted assurance of the absent of the materials in the financial statements as indicated this means we develop and audit performance materials we sample the tractions contributions and not testing 100 percent of the transactions and perform is a at the time of the puc compliance with certain provisions of laws and contracts to the level and stent have a material effect on the financial statements and opine on the financial statements based on the audit results as indicated earlier we issued two reports for each of the enterprise funds and independent auditors on the financial statements of which we issued on urban modified clean opinion and issued a report on the internal controls over financial compliance according to the government auditing standards a clean report no deficiencies or significant undermines we confirm we're independent worksheet to the city and county and defined by the professional standards in the government auditing standards and in the reports you'll see the significant accounting policy needs this is referenced but note two for the puc in each the i didn't say funds financial we assure that the policies are in corners with the compliant of industry practices and standards one new standard effective in 2015 the 68 theth and financial reporting for pensions of which had a significant impact on the puc finltz as well as all other city and county departmental funds the statement revised the pension liability for the pension plan provides by the city and county to the employees the accumulative effect and the decrease and beginning of net position or decrease in 2014 ending that position the adjustment you'll see here and the effects were on water one and $55 million and wastewater 69 million hetch hetchy at 69 and hetch hetchy power at 20.7 million. >> we have significant accounts and transactions to require the adjusted and estimate the reason those are higher inherit because of the significance in the financial statement and because of the possibility of future events effecting them this defer from managements current judgment we've listed the significant accounts and in our process we review the method or estimate and determine the reasonableness of the assumptions of the data used audit adjustment exist to should the difference in the accounting literature foyer what management has recorded we have one cricket audit adjustment applicable to all the puc enterprise funds this is a reclassification judgment one the cash flow statement of which none were included in the skwiegs of the accounting statement therefore we proposed and management adjusted and corrected the cash flow of non-operating expenses from operating activities down below to non-capital and related financial activities this was 12.9 for water and warranted and 7 millions for hetch hetchy once again only a reclassification adjustment on the cash flow statements next, we did have an uncorrected judgment related to hetch hetchy and this was related to a deviation of a general accounting principle we call a non-gap policy of which management has the policy if totaled to less than $2 million the extraordinary items subsequent to the initial year will be recorded as other operating or non-operating expenses rather than below the line in extraordinary items if so once again a reclassification on or about on the income statement related to the rim fire and had a net amount of $1.4 million wrap up her we have no disagreements or difficulties with management the accounting and finance department are great and our audit request they make the audit a priority and the enterprises have knowledgeable folks that provide skwiegsz promptly to us management didn't consult with other dependent consultant not to agreeing with our analysis or interpretation of literature and we maintain our dependence no implication outside of the audit and have two written communications we receive annually the engage letter with the san francisco it documents our representation letters we've received for each report that is signed by management to finalize the outing anti e audit that concludes my presentation. if any questions. >> questions or comments i want to first of all, congratulations on 5 clean audits in seven years in a row pretty amazing work thank you for your work those last few years. >> i'll add we lost our cfo but as near as i can tell we'll not only replace him not specifically in the process that's the kind of depth that we can appreciate. >> other comments thank you very much for your presentation. >> public comment on the audit? >> hearing none next item, please. >> >> item 9 the bosco update mr. hurley i understand is here to present. >> yes. good afternoon michael the water resources manager ever bosco my colleague can't be here but a brief update on the activities you're wholesale customers and getting the slides here start off giving you a look at the individual targets as you can see from the slides the green bars are the targets given to each agency by the state board and you blue h the blue to date as you can see for the vast majority of agencies exceeding is it amount the 15 bar represents the waited afternoon for all the bosco agencies target assigned to them they're at the 29 percent well above their the fact of the matter we're not see the savings in the summer but all the agency are shaped up. >> can you go back didn't quite understand it was counterintuitive active. >> the green bars are what was assigned to each agency by the state board into the october from june to october. >> i see the blowing blue how they've exceeded the conservatism standards. >> that's good but the solid green line bar 15 percent is accumulative of what they're doing taking away at look at it with the powers to date on the total 9 month target each agencies listens those the vertical act assess and converted to percentages for the totals 9 months 19 of the agencies have achieved that the fact of the matter a couple of as that have compliments for moderate you'll not see the summer swing but all exceptions they'll make that accumulative for all agencies the total target what over 10 billion gallons we've exceeded it go close to 12 one half billion some are what the state board is looking at this will benefit the wholesale customers so you know we're all hoping and wishing for the best but the drought from the drought continues we'll continue to assume more work is needed with the landscape ordinance needs to be updated bosco has put together an ordinance that is more appropriate for the service area that is something they did in 2010 it is something the agencies can adopt on their own or the bosco ordinance the ordinance is provided to the valley water districts customers that are interested in the same level of customized ordinance the reneutral drought campaign our thought at this point shifts gears our agencies in the city retail customers have obviously done a great job and continue to ask them to continue their ways. >> finally mr. richie said we've been in communication with steve and his staff on this we appreciate that the agencies and other parts of state are maybe in different situations but whatever is proposed really shouldn't be born on the backs of the retail customers as well as the bosco agencies performing at outstanding low levels on the same page with that, i'm available to answer any questions. >> congratulations yeah. >> same to you. >> any other questions or comments public comment? thank you very much next up the consent calendar please read the items >> calendar, are considered to be routine and may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. approve the water supply for the ecology cotton and expansion project b approve the water supply

richie. madonna and richie agreed share custody of rocco, and his younger brother when they divorced in 2008.of course we'll have t yes, tough when kids are involved. >> so true. >> 8:41, well, let's check on quincy. because he is at brown's shoprite. helping out people getting their last minute shopping. owes he is at the cash register. >> no, no, no, you used to be a checker, so you're good at this, we understands. >> very good. aim all-star, checking in, i'll cash this lady out. coming up next, it. j will help me out. so if you guys want to watch some really, really entertaining television, you want to come on back. i'm going to cash her out. >> apartment an is still in australia today, chris. >> has delivered 835 million packages, and he has so much more terrain to cover, sue serio. >> yes, he does. but it won't be until well after dark tonight, when your little pumpkin heads are tucked in bid that he'll come to your house. >> if you've been good. you know the drill. so right now we look at this live look at ultimate doppler radar, i want to show you what's happening doubt here in kent co

richie. >> gadget steve richie assistant general manager for the water slides please with the drought updates pretty standard here again, our reservoir levels show you hetch hetchy is still about 72 percent holding steadily and drawing down the water supply before you in flows and water bank has down and maintain that up in the hetch hetchy reservoir the precipitation front again, we're still ahead of the medium curve for precipitation for this water year that given on october 1st that red line the black line is the medium we actually for the last year left off 1993 that is the blue line we've added it in for a target to shoot for the snow pack has leveled off over the last few weeks but we have seen a fair amount of precipitation in october and november above average a 40 in percent and more expected on thursday locally we'll have a half of inch in december not nearly as much of the upper country level on this front the precipitation forecast rookies good an anticipation one or two feet of snow in above 7 feet in the sierra and pro tem on the snow front whether it is up country or in the bay area as well both for thursday turning to consumption those are the october results again in the 15 lowest per capital a 13 are them and customers for san francisco again about 41 gallons per person per day a low use and is wholesale and the city customers are doing a great job at conjecturally that was october the total chart shows for thanksgiving week demand was down region wide people didn't washer their dishes from thanksgiving dinner but matches colonel in the christmas week that last blue front so we may go lower than last year before the late season when you get do winter the irrigation is gone that is indoor use and eventually cutting back on the total system water savings continues to be high one of the things to know about this that the state water board held a workshop talking about the extension of the drought regulations into 9 next year the govern made a declaration a few weeks ago the drought continues to extend them to october there's been a lot of discussion about folks in the inn land a climate jauflt factor for them and we've indicated in our comments well, if they maintain the goal of 25 percent and reduce there shouldn't be pressure on those folks for low capital to explicit conserve lower we've been working with groups to have redirected impacts of giving someone a break somewhere for that someone doing a good job in early february we go forward that's where we are at i'll be happy to answer any questions. >> commissioners. >> no. >> all right. next item. >> >> so the next is the hetch hetchy cip and at that point wastewater data at the same time. >> good afternoon, commissioners i just wanted to highlight where the delays or the cost increases were and so for the water and joint projects one project a scheduled detail the lower cherry aqueduct for the permitting approval that took are longer we originally anticipated and we have two projects showing cost increases one is other power house projects additional equipment is being ordered and installed and the other is cherry dam outcomes this was approved without construction funding so the increase is to include construction funding the power projects we have 3 projects that are showing scheduled details one is civic center and the sustainable program under the efficiency program it is really depending on the other departments main dpw doing their improvements and getting money to do the title 24 and energy efficiency projects with the larger programs and the other two are the meter monitoring both of them are do not selecting a consultant for strategy those are the hetch hetchy capital projects for the wastewater capitalized one project that is detailed by approximately, six most that is oceanside plant handling and coding and the delay is in construction and there is more co-rotation repair than anticipated so that work is being completed right now so why is sustainable civic center they're waiting on funding you know barb can help me if i'm not mistaken the departments do the work and come to puc for title 24 and have energy efficiency in the building we're not the lead on the projects you. >> so is there a way to giving them encouragement or a letter of something. >> barbara hale assistant general manager our need to collect data about the operations of the building and that in and of itself is an important task for the efficiency measures and that takes time some of the projects taking more time to get the staff support you know the building operators are altitudes very busy and we're coming and knocking on their door to ask them to take on a new task that part of challenge but we have the contracting capacity and have the ability to provide the support we just need to move it apace that works for our customer. >> so can you please come back with a timeline to get this done with a sense of urgency those have lost budget money but seem to be put on the back burn they're important. >> we can definitely reach out to the other departments that have the facilities but again, it is really challenging when hair operating the building and asking them to get data i mean by just in the nature it is like on the back burner and they're under staffed we're doing everything we can to encourage them. >> come back with a timeline that would be great as well. >> next item. >> lowest the process report >> good afternoon, commissioners eric sandler assistant general manager of business services today, this stem is the next installment in what has been a series of presentations reviewing the commission policies before the adoption of the new budget a memo and a policy in you're packet and this presentation summarizes some of the highlights we're talking about the rates policy which was established in february 2012 but essentially was a codification in policy form of a number of rates and charges with respect to state law and the city chapter and best practices since then adopted a 4-year of sewer and water rates with wholesale water rates and a number of action on power rates so the policy the itself is composed of 4 principles the first be affordability relates to the level the stability of roeven harasses with the long term trend compliance with the late regarding state law contractual sufficiency relates to if you cost recovery you recover all the costs of enterprise and transparency relates to how the commission goes about developing vetting and proposing and adopting the rates here's some the progress related we regularly show you where the typical bell for water and sewer sophomore puc services compares with other local utilities and we regularly present the 10 year rate projection with the 10 year capital plan and made adjustments in the last study taking form some the rates more the clerk will take the roll to cost of service principle and be compliant with them and the great making has involved the transparent process with the oversight by the revenue by the oversight committee and siding and the rate fairness board and commission you know as we look at the policy as i reviewed it i think one of the things that struck me which is a theme we've talked about for that the last several months is the review availability we've been seeing the impact on all the enterprises as we entered this extended drought we'll recommend the commission rises the policy for this to perhaps enhance the sufficiency principle to identify the need to balance competing policy objectives when looking at rated skyline so the trade off between a conservatism on one hand and revenue 125ib8g9 on the other so to refresh our memory on our retail water revenue is approximately 15 fixed and metric the sewer rates are 100 percent bio metric so you know as we're dealing with the drought and embarking on a very last year capital improvement plan for the sewer system is it mines to i think we consider our rate structure issues so we recommend that you direct you go us to come back with a policy revision for the consideration and in january we're planning to come and speak but a little bit on the activities with respect to innovation and our wet weather charges i'll be happy to answer any questions about the rate policy or take any direction from the commission. >> first of all, thank you very much i appreciate you're putting this together and as we've been looking for ways to accomplish that i think you're very close to the mark you appreciate the work you do that i guess one question and then a couple of comments the question one of the things the written policy calls out specifically we follow best practices as far as funding our costs i don't know if you have a quick answer or on opinion about that when i talk about traffics that's one of the areas frequently one of the lows that can shortchange r and r as a question when is you're sense as to how we're doing on this where we're funding appropriate level something we should look at on the budget coming down. >> so i think some of the challenges you know when the budget that is coming forward has responses to investing in r and r over a 10 year period one of the challenges not only how you invest but how you fund it, it is easy to become addicted to depth and instruction of assets to be reasonably assumed to be rate funding that investment is it so hard to make those transitioned when our facing impacts with respect to increased volumes but i'll suggest it make sense for the commission to consider in its debt policy a consideration of how much it wants to fund it's capital improvement plan with rate funded revenue or debt funded revenue a nice compliment to an r and r program. >> we video a separate policy as you recall that we're going to do be reviewing or is that - >> that's been reviewed early in the year january or february. >> if there is something like that that is a clarification that would make life and direction easier i would encourage you to come forward and propose a change to deal with that and similar kind of thinking a and you talked about maybe amending this policy to include moving towards rates that more fully capture the rates cost i'm encourage you to come forward as an amendment to consider one thing i noticed that is missing from here was a statement i know what the commission intent direction has been but not made it into the policy over time we wanted to move hetch hetchy general fund power rates towards market and that's something for some reason we didn't put in the last time i - part of the reason for doing this not only hocking to see how the department is doing with complying with the policy the other thing the test of the policy itself is if there is areas the policy is deficient more guidance or you think that the commission on record is helpful that is part why we review this coming forward with the amendments that will be helpful. >> want to clarify i stated you wanted us to show the general fund departments cost of power comes to the cost of market are you talking about the cost of delivery or you're referring to power or i want to be clear. >> it would be probable be better if i were clear over time the specific obviously how fast that happens it has ripple effects over time we migrate to the energy efficient resolution. >> i think the goal was 0 the cost of actual delivery verse the cost of market so for example, from the cost us $0.10 per kilowatt for 13 we need to show some benefit providing a power. >> i wanted to - >> i was getting greedy again. >> perhaps you're right that reflects what the commission. >> as well just to let you know we're in the process of working on a cost of service study for the power enterprise so we will have a really good 10 east sense of cost of services and other rates and how much will our full costs of service might be. >> and it maybe appropriate to have some statement to the effect i'll hate to get into a position to charge the rates just to cover the cost we may want to a parallel statement that says the objective to manage the enterprise such the costs are less than. >> you want something the efficiency principle raedz addresses that would you want a specific element in the policy with respect to the power rates or - >> i mean, i think my sense is yes and certainly when you come forward we'll have a discussion of greater depth but my sense that is something that effects so 34 people and because of the departure from past practice we've moved in that disconnection it is important to have its own medication you can point to and talk about to people. >> okay terrific. >> this question around the cost of service is relevant to all 3 enterprises e enterprises it is hard to separate from the debt policy when you come forward with our recommendation on a fixed rate it should reference or refresher our minds on the debt policy piece it the r and r question which could fall under the what the could have of services does it fall under it seems to me that would so nuance in there i think we want to try and capture the high-level of policy in order to set the policies needs a better understanding. >> we have a great opportunity to revisit in a comprehensive way you know our debt service ratio and capital improvement plan and r and r policy. >> our hetch hetchy and rates and charges. >> so figure out when we can undertake that but a helpful education process. >> i think that is a good idea as we enter into budget time needs to make decisions so somewhere in there to do an education i don't want to lose site of the stormwater. >> that will be part of it we're bringing that in january for an update. >> yeah. i think we are hopeful that by the time we introduce the new i guess rate structure we will have all that ironed out but bringing it up more and more we've already looking at what the impacts would be if we were to do a wastewater fee for example, we've been go talking with the mayor's office of the bureaucratic budget with the general fund increases over time so we've been you know talking about that as well so but, yeah i think we definitely like to talk about it for about the wastewater it takes a little bit of time to do the study get information we're hoping that when - >> we have a significant amount of work in the off year next fiscal year implementing our executing the cost of service study for wastewater we're doing one for power i think we have the probably the ban width for the commission to look at the enter play between those policies. >> maybe give you a schedule of activities to lead up to when we present to you a full picture of what the rate structure would be moving forward including the wastewater san francisco entertainment commission fee and decide how much fixed cost for wastewater and water so we can probably do a timeline. >> we'll put together a rough speakers shall address their comments to the commission as a whole and neither the police commission nor the over the next you know two years what we hope to cover when. >> a policy question i feel we'll need some of that information in order to be able to amend the policy i imagine. >> yeah. >> thank you very much any other questions or comments? anything else on the general manager report >> that concludes my report. >> next speaker, please. >> oh, public comment on the general manager report? >> hearing next item, please. >> item 582015-2016 financial audit report. >> r6 /* r67 2015-2016 audit report. >> good afternoon, commissioners this is franciscy deputy chief financial officer for fiscal year 2014-2015 those financial statements were audited by our dependent auditors who have render their opinion the opinion for each of 3 enterprises for the 7 consecutive year in a row each enterprises has an unmodified clean opinion of the financial statements 6th district at large they're appropriately presented containing no artificial information additionally the city and county of san francisco adopted the golf standards board the statement 68 forth and financial reporting for pensions and this is one of the reasons the financial statements were issued in november instead of the earlier timeline of october in the past the comprehensive annual financial reports will be issued tomorrow and we expect that we will submit to the government finance office association the g f o a an award for excellence and financial reporting again, no questions i'd like to introduce jenny the audit senior manager to present to the commission the audit results of the 3 enterprises. >> thank you my name is jamie a senior manager i worked on the puc account for 3 years now so thank you for having me. i will be presenting the 2015 audit results to the commission and it's presentation will address the communications to the board and in accordance with the audit standards one 15 and provide a high-level similarly of 2015 audit to start responsibility to perform the audit under the general accepted auditing standards and the government auditing standards and we extensive the internal control for efficient audit approach not for the purposes of an opinion or assurance of operating effectiveness of the control a pubically trade company we design the procedures based on the understanding the puc and not saluted assurance of the absent of the materials in the financial statements as indicated this means we develop and audit performance materials we sample the tractions contributions and not testing 100 percent of the transactions and perform is a at the time of the puc compliance with certain provisions of laws and contracts to the level and stent have a material effect on the financial statements and opine on the financial statements based on the audit results as indicated earlier we issued two reports for each of the enterprise funds and independent auditors on the financial statements of which we issued on urban modified clean opinion and issued a report on the internal controls over financial compliance according to the government auditing standards a clean report no deficiencies or significant undermines we confirm we're independent worksheet to the city and county and defined by the professional standards in the government auditing standards and in the reports you'll see the significant accounting policy needs this is referenced but note two for the puc in each the i didn't say funds financial we assure that the policies are in corners with the compliant of industry practices and standards one new standard effective in 2015 the 68 theth and financial reporting for pensions of which had a significant impact on the puc finltz as well as all other city and county departmental funds the statement revised the pension liability for the pension plan provides by the city and county to the employees the accumulative effect and the decrease and beginning of net position or decrease in 2014 ending that position the adjustment you'll see here and the effects were on water one and $55 million and wastewater 69 million hetch hetchy at 69 and hetch hetchy power at 20.7 million. >> we have significant accounts and transactions to require the adjusted and estimate the reason those are higher inherit because of the significance in the financial statement and because of the possibility of future events effecting them this defer from managements current judgment we've listed the significant accounts and in our process we review the method or estimate and determine the reasonableness of the assumptions of the data used audit adjustment exist to should the difference in the accounting literature foyer what management has recorded we have one cricket audit adjustment applicable to all the puc enterprise funds this is a reclassification judgment one the cash flow statement of which none were included in the skwiegs of the accounting statement therefore we proposed and management adjusted and corrected the cash flow of non-operating expenses from operating activities down below to non-capital and related financial activities this was 12.9 for water and warranted and 7 millions for hetch hetchy once again only a reclassification adjustment on the cash flow statements next, we did have an uncorrected judgment related to hetch hetchy and this was related to a deviation of a general accounting principle we call a non-gap policy of which management has the policy if totaled to less than $2 million the extraordinary items subsequent to the initial year will be recorded as other operating or non-operating expenses rather than below the line in extraordinary items if so once again a reclassification on or about on the income statement related to the rim fire and had a net amount of $1.4 million wrap up her we have no disagreements or difficulties with management the accounting and finance department are great and our audit request they make the audit a priority and the enterprises have knowledgeable folks that provide skwiegsz promptly to us management didn't consult with other dependent consultant not to agreeing with our analysis or interpretation of literature and we maintain our dependence no implication outside of the audit and have two written communications we receive annually the engage letter with the san francisco it documents our representation letters we've received for each report that is signed by management to finalize the outing anti e audit that concludes my presentation. if any questions. >> questions or comments i want to first of all, congratulations on 5 clean audits in seven years in a row pretty amazing work thank you for your work those last few years. >> i'll add we lost our cfo but as near as i can tell we'll not only replace him not specifically in the process that's the kind of depth that we can appreciate. >> other comments thank you very much for your presentation. >> public comment on the audit? >> hearing none next item, please. >> >> item 9 the bosco update mr. hurley i understand is here to present. >> yes. good afternoon michael the water resources manager ever bosco my colleague can't be here but a brief update on the activities you're wholesale customers and getting the slides here start off giving you a look at the individual targets as you can see from the slides the green bars are the targets given to each agency by the state board and you blue h the blue to date as you can see for the vast majority of agencies exceeding is it amount the 15 bar represents the waited afternoon for all the bosco agencies target assigned to them they're at the 29 percent well above their the fact of the matter we're not see the savings in the summer but all the agency are shaped up. >> can you go back didn't quite understand it was counterintuitive active. >> the green bars are what was assigned to each agency by the state board into the october from june to october. >> i see the blowing blue how they've exceeded the conservatism standards. >> that's good but the solid green line bar 15 percent is accumulative of what they're doing taking away at look at it with the powers to date on the total 9 month target each agencies listens those the vertical act assess and converted to percentages for the totals 9 months 19 of the agencies have achieved that the fact of the matter a couple of as that have compliments for moderate you'll not see the summer swing but all exceptions they'll make that accumulative for all agencies the total target what over 10 billion gallons we've exceeded it go close to 12 one half billion some are what the state board is looking at this will benefit the wholesale customers so you know we're all hoping and wishing for the best but the drought from the drought continues we'll continue to assume more work is needed with the landscape ordinance needs to be updated bosco has put together an ordinance that is more appropriate for the service area that is something they did in 2010 it is something the agencies can adopt on their own or the bosco ordinance the ordinance is provided to the valley water districts customers that are interested in the same level of customized ordinance the reneutral drought campaign our thought at this point shifts gears our agencies in the city retail customers have obviously done a great job and continue to ask them to continue their ways. >> finally mr. richie said we've been in communication with steve and his staff on this we appreciate that the agencies and other parts of state are maybe in different situations but whatever is proposed really shouldn't be born on the backs of the retail customers as well as the bosco agencies performing at outstanding low levels on the same page with that, i'm available to answer any questions. >> congratulations yeah. >> same to you. >> any other questions or comments public comment? thank you very much next up the consent calendar please read the items >> calendar, are considered to be routine and may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. approve the water supply for the ecology cotton and expansion project b approve the water supply

richie. >> gadget steve richie assistant general manager for the water slides please with the drought updates pretty standard here again, our reservoir levels show you hetch hetchy is still about 72 percent holding steadily and drawing down the water supply before you in flows and water bank has down and maintain that up in the hetch hetchy reservoir the precipitation front again, we're still ahead of the medium curve for precipitation for this water year that given on october 1st that red line the black line is the medium we actually for the last year left off 1993 that is the blue line we've added it in for a target to shoot for the snow pack has leveled off over the last few weeks but we have seen a fair amount of precipitation in october and november above average a 40 in percent and more expected on thursday locally we'll have a half of inch in december not nearly as much of the upper country level on this front the precipitation forecast rookies good an anticipation one or two feet of snow in above 7 feet in the sierra and pro tem on the snow front whether it is up country or in the bay area as well both for thursday turning to consumption those are the october results again in the 15 lowest per capital a 13 are them and customers for san francisco again about 41 gallons per person per day a low use and is wholesale and the city customers are doing a great job at conjecturally that was october the total chart shows for thanksgiving week demand was down region wide people didn't washer their dishes from thanksgiving dinner but matches colonel in the christmas week that last blue front so we may go lower than last year before the late season when you get do winter the irrigation is gone that is indoor use and eventually cutting back on the total system water savings continues to be high one of the things to know about this that the state water board held a workshop talking about the extension of the drought regulations into 9 next year the govern made a declaration a few weeks ago the drought continues to extend them to october there's been a lot of discussion about folks in the inn land a climate jauflt factor for them and we've indicated in our comments well, if they maintain the goal of 25 percent and reduce there shouldn't be pressure on those folks for low capital to explicit conserve lower we've been working with groups to have redirected impacts of giving someone a break somewhere for that someone doing a good job in early february we go forward that's where we are at i'll be happy to answer any questions. >> commissioners. >> no. >> all right. next item. >> >> so the next is the hetch hetchy cip and at that point wastewater data at the same time. >> good afternoon, commissioners i just wanted to highlight where the delays or the cost increases were and so for the water and joint projects one project a scheduled detail the lower cherry aqueduct for the permitting approval that took are longer we originally anticipated and we have two projects showing cost increases one is other power house projects additional equipment is being ordered and installed and the other is cherry dam outcomes this was approved without construction funding so the increase is to include construction funding the power projects we have 3 projects that are showing scheduled details one is civic center and the sustainable program under the efficiency program it is really depending on the other departments main dpw doing their improvements and getting money to do the title 24 and energy efficiency projects with the larger programs and the other two are the meter monitoring both of them are do not selecting a consultant for strategy those are the hetch hetchy capital projects for the wastewater capitalized one project that is detailed by approximately, six most that is oceanside plant handling and coding and the delay is in construction and there is more co-rotation repair than anticipated so that work is being completed right now so why is sustainable civic center they're waiting on funding you know barb can help me if i'm not mistaken the departments do the work and come to puc for title 24 and have energy efficiency in the building we're not the lead on the projects you. >> so is there a way to giving them encouragement or a letter of something. >> barbara hale assistant general manager our need to collect data about the operations of the building and that in and of itself is an important task for the efficiency measures and that takes time some of the projects taking more time to get the staff support you know the building operators are altitudes very busy and we're coming and knocking on their door to ask them to take on a new task that part of challenge but we have the contracting capacity and have the ability to provide the support we just need to move it apace that works for our customer. >> so can you please come back with a timeline to get this done with a sense of urgency those have lost budget money but seem to be put on the back burn they're important. >> we can definitely reach out to the other departments that have the facilities but again, it is really challenging when hair operating the building and asking them to get data i mean by just in the nature it is like on the back burner and they're under staffed we're doing everything we can to encourage them. >> come back with a timeline that would be great as well. >> next item. >> lowest the process report >> good afternoon, commissioners eric sandler assistant general manager of business services today, this stem is the next installment in what has been a series of presentations reviewing the commission policies before the adoption of the new budget a memo and a policy in you're packet and this presentation summarizes some of the highlights we're talking about the rates policy which was established in february 2012 but essentially was a codification in policy form of a number of rates and charges with respect to state law and the city chapter and best practices since then adopted a 4-year of sewer and water rates with wholesale water rates and a number of action on power rates so the policy the itself is composed of 4 principles the first be affordability relates to the level the stability of roeven harasses with the long term trend compliance with the late regarding state law contractual sufficiency relates to if you cost recovery you recover all the costs of enterprise and transparency relates to how the commission goes about developing vetting and proposing and adopting the rates here's some the progress related we regularly show you where the typical bell for water and sewer sophomore puc services compares with other local utilities and we regularly present the 10 year rate projection with the 10 year capital plan and made adjustments in the last study taking form some the rates more the clerk will take the roll to cost of service principle and be compliant with them and the great making has involved the transparent process with the oversight by the revenue by the oversight committee and siding and the rate fairness board and commission you know as we look at the policy as i reviewed it i think one of the things that struck me which is a theme we've talked about for that the last several months is the review availability we've been seeing the impact on all the enterprises as we entered this extended drought we'll recommend the commission rises the policy for this to perhaps enhance the sufficiency principle to identify the need to balance competing policy objectives when looking at rated skyline so the trade off between a conservatism on one hand and revenue 125ib8g9 on the other so to refresh our memory on our retail water revenue is approximately 15 fixed and metric the sewer rates are 100 percent bio metric so you know as we're dealing with the drought and embarking on a very last year capital improvement plan for the sewer system is it mines to i think we consider our rate structure issues so we recommend that you direct you go us to come back with a policy revision for the consideration and in january we're planning to come and speak but a little bit on the activities with respect to innovation and our wet weather charges i'll be happy to answer any questions about the rate policy or take any direction from the commission. >> first of all, thank you very much i appreciate you're putting this together and as we've been looking for ways to accomplish that i think you're very close to the mark you appreciate the work you do that i guess one question and then a couple of comments the question one of the things the written policy calls out specifically we follow best practices as far as funding our costs i don't know if you have a quick answer or on opinion about that when i talk about traffics that's one of the areas frequently one of the lows that can shortchange r and r as a question when is you're sense as to how we're doing on this where we're funding appropriate level something we should look at on the budget coming down. >> so i think some of the challenges you know when the budget that is coming forward has responses to investing in r and r over a 10 year period one of the challenges not only how you invest but how you fund it, it is easy to become addicted to depth and instruction of assets to be reasonably assumed to be rate funding that investment is it so hard to make those transitioned when our facing impacts with respect to increased volumes but i'll suggest it make sense for the commission to consider in its debt policy a consideration of how much it wants to fund it's capital improvement plan with rate funded revenue or debt funded revenue a nice compliment to an r and r program. >> we video a separate policy as you recall that we're going to do be reviewing or is that - >> that's been reviewed early in the year january or february. >> if there is something like that that is a clarification that would make life and direction easier i would encourage you to come forward and propose a change to deal with that and similar kind of thinking a and you talked about maybe amending this policy to include moving towards rates that more fully capture the rates cost i'm encourage you to come forward as an amendment to consider one thing i noticed that is missing from here was a statement i know what the commission intent direction has been but not made it into the policy over time we wanted to move hetch hetchy general fund power rates towards market and that's something for some reason we didn't put in the last time i - part of the reason for doing this not only hocking to see how the department is doing with complying with the policy the other thing the test of the policy itself is if there is areas the policy is deficient more guidance or you think that the commission on record is helpful that is part why we review this coming forward with the amendments that will be helpful. >> want to clarify i stated you wanted us to show the general fund departments cost of power comes to the cost of market are you talking about the cost of delivery or you're referring to power or i want to be clear. >> it would be probable be better if i were clear over time the specific obviously how fast that happens it has ripple effects over time we migrate to the energy efficient resolution. >> i think the goal was 0 the cost of actual delivery verse the cost of market so for example, from the cost us $0.10 per kilowatt for 13 we need to show some benefit providing a power. >> i wanted to - >> i was getting greedy again. >> perhaps you're right that reflects what the commission. >> as well just to let you know we're in the process of working on a cost of service study for the power enterprise so we will have a really good 10 east sense of cost of services and other rates and how much will our full costs of service might be. >> and it maybe appropriate to have some statement to the effect i'll hate to get into a position to charge the rates just to cover the cost we may want to a parallel statement that says the objective to manage the enterprise such the costs are less than. >> you want something the efficiency principle raedz addresses that would you want a specific element in the policy with respect to the power rates or - >> i mean, i think my sense is yes and certainly when you come forward we'll have a discussion of greater depth but my sense that is something that effects so 34 people and because of the departure from past practice we've moved in that disconnection it is important to have its own medication you can point to and talk about to people. >> okay terrific. >> this question around the cost of service is relevant to all 3 enterprises e enterprises it is hard to separate from the debt policy when you come forward with our recommendation on a fixed rate it should reference or refresher our minds on the debt policy piece it the r and r question which could fall under the what the could have of services does it fall under it seems to me that would so nuance in there i think we want to try and capture the high-level of policy in order to set the policies needs a better understanding. >> we have a great opportunity to revisit in a comprehensive way you know our debt service ratio and capital improvement plan and r and r policy. >> our hetch hetchy and rates and charges. >> so figure out when we can undertake that but a helpful education process. >> i think that is a good idea as we enter into budget time needs to make decisions so somewhere in there to do an education i don't want to lose site of the stormwater. >> that will be part of it we're bringing that in january for an update. >> yeah. i think we are hopeful that by the time we introduce the new i guess rate structure we will have all that ironed out but bringing it up more and more we've already looking at what the impacts would be if we were to do a wastewater fee for example, we've been go talking with the mayor's office of the bureaucratic budget with the general fund increases over time so we've been you know talking about that as well so but, yeah i think we definitely like to talk about it for about the wastewater it takes a little bit of time to do the study get information we're hoping that when - >> we have a significant amount of work in the off year next fiscal year implementing our executing the cost of service study for wastewater we're doing one for power i think we have the probably the ban width for the commission to look at the enter play between those policies. >> maybe give you a schedule of activities to lead up to when we present to you a full picture of what the rate structure would be moving forward including the wastewater san francisco entertainment commission fee and decide how much fixed cost for wastewater and water so we can probably do a timeline. >> we'll put together a rough speakers shall address their comments to the commission as a whole and neither the police commission nor the over the next you know two years what we hope to cover when. >> a policy question i feel we'll need some of that information in order to be able to amend the policy i imagine. >> yeah. >> thank you very much any other questions or comments? anything else on the general manager report >> that concludes my report. >> next speaker, please. >> oh, public comment on the general manager report? >> hearing next item, please. >> item 582015-2016 financial audit report. >> r6 /* r67 2015-2016 audit report. >> good afternoon, commissioners this is franciscy deputy chief financial officer for fiscal year 2014-2015 those financial statements were audited by our dependent auditors who have render their opinion the opinion for each of 3 enterprises for the 7 consecutive year in a row each enterprises has an unmodified clean opinion of the financial statements 6th district at large they're appropriately presented containing no artificial information additionally the city and county of san francisco adopted the golf standards board the statement 68 forth and financial reporting for pensions and this is one of the reasons the financial statements were issued in november instead of the earlier timeline of october in the past the comprehensive annual financial reports will be issued tomorrow and we expect that we will submit to the government finance office association the g f o a an award for excellence and financial reporting again, no questions i'd like to introduce jenny the audit senior manager to present to the commission the audit results of the 3 enterprises. >> thank you my name is jamie a senior manager i worked on the puc account for 3 years now so thank you for having me. i will be presenting the 2015 audit results to the commission and it's presentation will address the communications to the board and in accordance with the audit standards one 15 and provide a high-level similarly of 2015 audit to start responsibility to perform the audit under the general accepted auditing standards and the government auditing standards and we extensive the internal control for efficient audit approach not for the purposes of an opinion or assurance of operating effectiveness of the control a pubically trade company we design the procedures based on the understanding the puc and not saluted assurance of the absent of the materials in the financial statements as indicated this means we develop and audit performance materials we sample the tractions contributions and not testing 100 percent of the transactions and perform is a at the time of the puc compliance with certain provisions of laws and contracts to the level and stent have a material effect on the financial statements and opine on the financial statements based on the audit results as indicated earlier we issued two reports for each of the enterprise funds and independent auditors on the financial statements of which we issued on urban modified clean opinion and issued a report on the internal controls over financial compliance according to the government auditing standards a clean report no deficiencies or significant undermines we confirm we're independent worksheet to the city and county and defined by the professional standards in the government auditing standards and in the reports you'll see the significant accounting policy needs this is referenced but note two for the puc in each the i didn't say funds financial we assure that the policies are in corners with the compliant of industry practices and standards one new standard effective in 2015 the 68 theth and financial reporting for pensions of which had a significant impact on the puc finltz as well as all other city and county departmental funds the statement revised the pension liability for the pension plan provides by the city and county to the employees the accumulative effect and the decrease and beginning of net position or decrease in 2014 ending that position the adjustment you'll see here and the effects were on water one and $55 million and wastewater 69 million hetch hetchy at 69 and hetch hetchy power at 20.7 million. >> we have significant accounts and transactions to require the adjusted and estimate the reason those are higher inherit because of the significance in the financial statement and because of the possibility of future events effecting them this defer from managements current judgment we've listed the significant accounts and in our process we review the method or estimate and determine the reasonableness of the assumptions of the data used audit adjustment exist to should the difference in the accounting literature foyer what management has recorded we have one cricket audit adjustment applicable to all the puc enterprise funds this is a reclassification judgment one the cash flow statement of which none were included in the skwiegs of the accounting statement therefore we proposed and management adjusted and corrected the cash flow of non-operating expenses from operating activities down below to non-capital and related financial activities this was 12.9 for water and warranted and 7 millions for hetch hetchy once again only a reclassification adjustment on the cash flow statements next, we did have an uncorrected judgment related to hetch hetchy and this was related to a deviation of a general accounting principle we call a non-gap policy of which management has the policy if totaled to less than $2 million the extraordinary items subsequent to the initial year will be recorded as other operating or non-operating expenses rather than below the line in extraordinary items if so once again a reclassification on or about on the income statement related to the rim fire and had a net amount of $1.4 million wrap up her we have no disagreements or difficulties with management the accounting and finance department are great and our audit request they make the audit a priority and the enterprises have knowledgeable folks that provide skwiegsz promptly to us management didn't consult with other dependent consultant not to agreeing with our analysis or interpretation of literature and we maintain our dependence no implication outside of the audit and have two written communications we receive annually the engage letter with the san francisco it documents our representation letters we've received for each report that is signed by management to finalize the outing anti e audit that concludes my presentation. if any questions. >> questions or comments i want to first of all, congratulations on 5 clean audits in seven years in a row pretty amazing work thank you for your work those last few years. >> i'll add we lost our cfo but as near as i can tell we'll not only replace him not specifically in the process that's the kind of depth that we can appreciate. >> other comments thank you very much for your presentation. >> public comment on the audit? >> hearing none next item, please. >> >> item 9 the bosco update mr. hurley i understand is here to present. >> yes. good afternoon michael the water resources manager ever bosco my colleague can't be here but a brief update on the activities you're wholesale customers and getting the slides here start off giving you a look at the individual targets as you can see from the slides the green bars are the targets given to each agency by the state board and you blue h the blue to date as you can see for the vast majority of agencies exceeding is it amount the 15 bar represents the waited afternoon for all the bosco agencies target assigned to them they're at the 29 percent well above their the fact of the matter we're not see the savings in the summer but all the agency are shaped up. >> can you go back didn't quite understand it was counterintuitive active. >> the green bars are what was assigned to each agency by the state board into the october from june to october. >> i see the blowing blue how they've exceeded the conservatism standards. >> that's good but the solid green line bar 15 percent is accumulative of what they're doing taking away at look at it with the powers to date on the total 9 month target each agencies listens those the vertical act assess and converted to percentages for the totals 9 months 19 of the agencies have achieved that the fact of the matter a couple of as that have compliments for moderate you'll not see the summer swing but all exceptions they'll make that accumulative for all agencies the total target what over 10 billion gallons we've exceeded it go close to 12 one half billion some are what the state board is looking at this will benefit the wholesale customers so you know we're all hoping and wishing for the best but the drought from the drought continues we'll continue to assume more work is needed with the landscape ordinance needs to be updated bosco has put together an ordinance that is more appropriate for the service area that is something they did in 2010 it is something the agencies can adopt on their own or the bosco ordinance the ordinance is provided to the valley water districts customers that are interested in the same level of customized ordinance the reneutral drought campaign our thought at this point shifts gears our agencies in the city retail customers have obviously done a great job and continue to ask them to continue their ways. >> finally mr. richieaid we've been in communication with steve and his staff on this we appreciate that the agencies and other parts of state are maybe in different situations but whatever is proposed really shouldn't be born on the backs of the retail customers as well as the bosco agencies performing at outstanding low levels on the same page with that, i'm available to answer any questions. >> congratulations yeah. >> same to you. >> any other questions or comments public comment? thank you very much next up the consent calendar please read the items >> calendar, are considered to be routine and may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. approve the water supply for the ecology cotton and expansion project b approve the water supply a

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richie is in the works, and that is if she answers her phone and doesn't hang up on him. richie says that they are in talks but he says it won't happen until adele finishes her tour, for now, richieill have to just keep dancing on the ceiling. >>> we're getting a sneak peak at upcoming film batman verse super man dawn of justice. full trailer will be released tonight. movie stars, henry as super man and ben afflict as batman. we're told there will be cameos by other comic heroes. film hits theaters on march 25th. >>> actress carry fischer said she was pressured to lose weight by film makers as she repriced her role aspirin zest lea. she lost 35-pound for that role. she tells good housekeeping you can, she dit the by eating less and exercising more. imagine that. force awakens, in theaters, in two weeks. >>> you don't to have wait for star wars move turf come out, you can see stars a little bit early because madam toso's wax museum in london has stars in wax. this is kind of creepy, right. they were invited to george lucas sky walker ranch to get a closer look at subjects and man, they look real. they did a really good job. >> that is amazing. >> in the new force awakens movie the

richie. >> good afternoon, commissioners steve richie vaunt general manager so for water if i could have the slides please i'll be undergo similar information to report as before storage we again hanging 73 percent capacity at hetch hetchy 85 billions of water looking good the water bang-up to one and 85 thousand it dropped from last week but with the recent storms adding to that and we finished the construction project that is bringing in water as well. >> that slide is awe you cumulative it is early in the season the red line is above the black line this is the first time in 3 years precipitation above medium we're not going to the badge but that didn't include the water in the last 36 hours we've started oh, well on the slope there appears in the high country 2 inches of snow from the recent storm that is looking good for precipitation. >> here are the actual numbers again that is as of november 8th add an inch to hetch hetchy and through the month of november quite a bit of that left at the average for the entire month a good month not as good down here but those are the real precipitations as opposed to to last year, i don't need to how those are precipitation forecasts from the national forecast the week we're in and the lower box is in front of 17 red is wet and blue and green are definitely wet to shows for the rest of theeks and next week precipitation in the forecast good-looking. >> but that doesn't mean we have to stop serving and the demand is down from the last week people are continued to serve just like they shed and we're down to one and 72 millions gallons a day delivered last week go a good performance by the customers and the amount of savings is looking quite rabble and last but not least october 29th western up in the waterfront they were looking good up there just wondering down the trail what the bears like to do i'll be happy to answer any questions. >> are they on our staff. >> actually, one of them has reportedly been swimming in the reservoir we'll have words with him. >> what about the other bears. >> (laughter). any questions >> thank you next item, please. >> i want to give an update not on the list about the misleading people that are here to represent the neighborhood that are flooding we wanted to let them know it's not agendize but people can come and real talk about you know what our issues are and challenges and then they can come but meanwhile we'll work with the communities and identified each folks we've plan to workout a plan of attack to minimize the impacts you know storm will have a seer storms the storms their referring to have large 2004 was the large and the two in december was the 25 and thirty year storms those are severe storms and we want to make sure that you know el nino is aligned 3 years 17th street and fulsome and we want the 4 areas we have troops that will pay attention with it so wanted to let the folks know you know it's not agendizeed we'll get to in the future with that, the next item is the audits and performance review nancy. >> historic and forward calendar of highlights of breath and depth of the organization ask under the sfpuc takes serious consideration by visiting auditors and agencies excuse me. >> as highlighted in the executive summary finished the first quarter of 2013-2014 with the stages of completion the figures in portal one projects were completed and 14 in process and 19 in the coming months the audit performance are perform and financial related come pricing of 90 percent of the audit portfolio the completion of financial statements audit and substantially followed with itself portal controls. >> i'm sorry, i said 17. >> we have 17 scheduled to begin in the upcoming months 14 in completion before you the 9 audits that were completed by this they were the post audit of transactions and citywide cash disbursement and a disbursement of the it sustainable and assessment of the human services agency program from the inadvertent count followed by one performed by the california state auditor as the grant program the last audit secured a one-million dollar grant for the southern boulevard trail project in addition to the 14th century 14 audits in process 17 will begin not all listed those are the significant ones planned on the major or financial related highlighting in the recent financial report and followed by performance audits with the sf contract active and the fleet management performance and to continuance to each of the southeast community investment framework and the sfpuc health and safety program at the continued through the years we'll keep you awe employed any questions i'll be happy to answer any questions now. >> commissioners. >> questions. >> thank you very much and that's a good body of work we really appreciate that next item general manager. >> the budget status report. >> may i have the slides please. commissioner president vietor and commissioners i'm here to talk about the q one budget report. >> in a nut shell you'll remember i talked about the out look for the 3 years with we came up with budget and draft continues and draft worsens and i think the in a nut shell of this we're tracking the drought for wastewater and continued revenue decreases verse what we budget the good news for power enterprise we are tracking more towards not a reduction in power a generation we thought we'd see as mr. richieoted in his presentation we've been generating quite a bit of power and el nino we're not expecting a reduction in power reduction in previously thought might happen secondly, the mitigation measures we've developed for fiscal year relationship are mitigate that impact and meet the policy goals for covering the reserves we have a busy schedule the water revenues are down by two-thirds by whole receives and a number of one time savings from depth o debt refunding and one time close outs. >> the watermelon enterprise was similar the reduction in revenues and reduction in uses. >> as i mentioned things for the power enterprise look good and on time with the budget a number of restriction radio i reduction uses for the power enterprise and finally we're meeting all the minimal metrics health commission's. >> no problems or concerns. >> i think we're staying on top of the budget process and get through the winter we're going to see what the hydrologic situation looked like the questions wil

. >> madonna's battle with her son takes a new turn, why some think rocco richie, that is his last name, guy richie's son, rocco, at 17, he is embarrassed by his mother. we will explain why. >> so also what does man buns, charlie sheen and 50 shades of fray all have in common? some of the top pop culture stories of the the year. we will look at the best ones from 2015. >> lets go to the other box are sue. >> holiday regifting, do you do it. >> it is risky. but if do it there are do's and don't a's of regifting at 9:30. >> born kelly will join us because he has one of the best regifting stories i have ever her. >> yep. >> we are days away from new years eve so delicious dishes you can whip up to usual inner 2016. >> good luck food. >> black eye peas is probably number one on the list. >> okay. >> this is the way you say it, mike, what did you do over the holidays. >> let maine read this and

richie. >> gadget steve richie assistant general manager for the water slides please with the drought updates pretty standard here again, our reservoir levels show you hetch hetchy is still about 72 percent holding steadily and drawing down the water supply before you in flows and water bank has down and maintain that up in the hetch hetchy reservoir the precipitation front again, we're still ahead of the medium curve for precipitation for this water year that given on october 1st that red line the black line is the medium we actually for the last year left off 1993 that is the blue line we've added it in for a target to shoot for the snow pack has leveled off over the last few weeks but we have seen a fair amount of precipitation in october and november above average a 40 in percent and more expected on thursday locally we'll have a half of inch in december not nearly as much of the upper country level on this front the precipitation forecast rookies good an anticipation one or two feet of snow in above 7 feet in the sierra and pro tem on the snow front whether it is up country or in the bay area as well both for thursday turning to consumption those are the october results again in the 15 lowest per capital a 13 are them and customers for san francisco again about 41 gallons per person per day a low use and is wholesale and the city customers are doing a great job at conjecturally that was october the total chart shows for thanksgiving week demand was down region wide people didn't washer their dishes from thanksgiving dinner but matches colonel in the christmas week that last blue front so we may go lower than last year before the late season when you get do winter the irrigation is gone that is indoor use and eventually cutting back on the total system water savings continues to be high one of the things to know about this that the state water board held a workshop talking about the extension of the drought regulations into 9 next year the govern made a declaration a few weeks ago the drought continues to extend them to october there's been a lot of discussion about folks in the inn land a climate jauflt factor for them and we've indicated in our comments well, if they maintain the goal of 25 percent and reduce there shouldn't be pressure on those folks for low capital to explicit conserve lower we've been working with groups to have redirected impacts of giving someone a break somewhere for that someone doing a good job in early february we go forward that's where we are at i'll be happy to answer any questions. >> commissioners. >> no. >> all right. next item. >> >> so the next is the hetch hetchy cip and at that point wastewater data at the same time. >> good afternoon, commissioners i just wanted to highlight where the delays or the cost increases were and so for the water and joint projects one project a scheduled detail the lower cherry aqueduct for the permitting approval that took are longer we originally anticipated and we have two projects showing cost increases one is other power house projects additional equipment is being ordered and installed and the other is cherry dam outcomes this was approved without construction funding so the increase is to include construction funding the power projects we have 3 projects that are showing scheduled details one is civic center and the sustainable program under the efficiency program it is really depending on the other departments main dpw doing their improvements and getting money to do the title 24 and energy efficiency projects with the larger programs and the other two are the meter monitoring both of them are do not selecting a consultant for strategy those are the hetch hetchy capital projects for the wastewater capitalized one project that is detailed by approximately, six most that is oceanside plant handling and coding and the delay is in construction and there is more co-rotation repair than anticipated so that work is being completed right now so why is sustainable civic center they're waiting on funding you know barb can help me if i'm not mistaken the departments do the work and come to puc for title 24 and have energy efficiency in the building we're not the lead on the projects you. >> so is there a way to giving them encouragement or a letter of something. >> barbara hale assistant general manager our need to collect data about the operations of the building and that in and of itself is an important task for the efficiency measures and that takes time some of the projects taking more time to get the staff support you know the building operators are altitudes very busy and we're coming and knocking on their door to ask them to take on a new task that part of challenge but we have the contracting capacity and have the ability to provide the support we just need to move it apace that works for our customer. >> so can you please come back with a timeline to get this done with a sense of urgency those have lost budget money but seem to be put on the back burn they're important. >> we can definitely reach out to the other departments that have the facilities but again, it is really challenging when hair operating the building and asking them to get data i mean by just in the nature it is like on the back burner and they're under staffed we're doing everything we can to encourage them. >> come back with a timeline that would be great as well. >> next item. >> lowest the process report >> good afternoon, commissioners eric sandler assistant general manager of business services today, this stem is the next installment in what has been a series of presentations reviewing the commission policies before the adoption of the new budget a memo and a policy in you're packet and this presentation summarizes some of the highlights we're talking about the rates policy which was established in february 2012 but essentially was a codification in policy form of a number of rates and charges with respect to state law and the city chapter and best practices since then adopted a 4-year of sewer and water rates with wholesale water rates and a number of action on power rates so the policy the itself is composed of 4 principles the first be affordability relates to the level the stability of roeven harasses with the long term trend compliance with the late regarding state law contractual sufficiency relates to if you cost recovery you recover all the costs of enterprise and transparency relates to how the commission goes about developing vetting and proposing and adopting the rates here's some the progress related we regularly show you where the typical bell for water and sewer sophomore puc services compares with other local utilities and we regularly present the 10 year rate projection with the 10 year capital plan and made adjustments in the last study taking form some the rates more the clerk will take the roll to cost of service principle and be compliant with them and the great making has involved the transparent process with the oversight by the revenue by the oversight committee and siding and the rate fairness board and commission you know as we look at the policy as i reviewed it i think one of the things that struck me which is a theme we've talked about for that the last several months is the review availability we've been seeing the impact on all the enterprises as we entered this extended drought we'll recommend the commission rises the policy for this to perhaps enhance the sufficiency principle to identify the need to balance competing policy objectives when looking at rated skyline so the trade off between a conservatism on one hand and revenue 125ib8g9 on the other so to refresh our memory on our retail water revenue is approximately 15 fixed and metric the sewer rates are 100 percent bio metric so you know as we're dealing with the drought and embarking on a very last year capital improvement plan for the sewer system is it mines to i think we consider our rate structure issues so we recommend that you direct you go us to come back with a policy revision for the consideration and in january we're planning to come and speak but a little bit on the activities with respect to innovation and our wet weather charges i'll be happy to answer any questions about the rate policy or take any direction from the commission. >> first of all, thank you very much i appreciate you're putting this together and as we've been looking for ways to accomplish that i think you're very close to the mark you appreciate the work you do that i guess one question and then a couple of comments the question one of the things the written policy calls out specifically we follow best practices as far as funding our costs i don't know if you have a quick answer or on opinion about that when i talk about traffics that's one of the areas frequently one of the lows that can shortchange r and r as a question when is you're sense as to how we're doing on this where we're funding appropriate level something we should look at on the budget coming down. >> so i think some of the challenges you know when the budget that is coming forward has responses to investing in r and r over a 10 year period one of the challenges not only how you invest but how you fund it, it is easy to become addicted to depth and instruction of assets to be reasonably assumed to be rate funding that investment is it so hard to make those transitioned when our facing impacts with respect to increased volumes but i'll suggest it make sense for the commission to consider in its debt policy a consideration of how much it wants to fund it's capital improvement plan with rate funded revenue or debt funded revenue a nice compliment to an r and r program. >> we video a separate policy as you recall that we're going to do be reviewing or is that - >> that's been reviewed early in the year january or february. >> if there is something like that that is a clarification that would make life and direction easier i would encourage you to come forward and propose a change to deal with that and similar kind of thinking a and you talked about maybe amending this policy to include moving towards rates that more fully capture the rates cost i'm encourage you to come forward as an amendment to consider one thing i noticed that is missing from here was a statement i know what the commission intent direction has been but not made it into the policy over time we wanted to move hetch hetchy general fund power rates towards market and that's something for some reason we didn't put in the last time i - part of the reason for doing this not only hocking to see how the department is doing with complying with the policy the other thing the test of the policy itself is if there is areas the policy is deficient more guidance or you think that the commission on record is helpful that is part why we review this coming forward with the amendments that will be helpful. >> want to clarify i stated you wanted us to show the general fund departments cost of power comes to the cost of market are you talking about the cost of delivery or you're referring to power or i want to be clear. >> it would be probable be better if i were clear over time the specific obviously how fast that happens it has ripple effects over time we migrate to the energy efficient resolution. >> i think the goal was 0 the cost of actual delivery verse the cost of market so for example, from the cost us $0.10 per kilowatt for 13 we need to show some benefit providing a power. >> i wanted to - >> i was getting greedy again. >> perhaps you're right that reflects what the commission. >> as well just to let you know we're in the process of working on a cost of service study for the power enterprise so we will have a really good 10 east sense of cost of services and other rates and how much will our full costs of service might be. >> and it maybe appropriate to have some statement to the effect i'll hate to get into a position to charge the rates just to cover the cost we may want to a parallel statement that says the objective to manage the enterprise such the costs are less than. >> you want something the efficiency principle raedz addresses that would you want a specific element in the policy with respect to the power rates or - >> i mean, i think my sense is yes and certainly when you come forward we'll have a discussion of greater depth but my sense that is something that effects so 34 people and because of the departure from past practice we've moved in that disconnection it is important to have its own medication you can point to and talk about to people. >> okay terrific. >> this question around the cost of service is relevant to all 3 enterprises e enterprises it is hard to separate from the debt policy when you come forward with our recommendation on a fixed rate it should reference or refresher our minds on the debt policy piece it the r and r question which could fall under the what the could have of services does it fall under it seems to me that would so nuance in there i think we want to try and capture the high-level of policy in order to set the policies needs a better understanding. >> we have a great opportunity to revisit in a comprehensive way you know our debt service ratio and capital improvement plan and r and r policy. >> our hetch hetchy and rates and charges. >> so figure out when we can undertake that but a helpful education process. >> i think that is a good idea as we enter into budget time needs to make decisions so somewhere in there to do an education i don't want to lose site of the stormwater. >> that will be part of it we're bringing that in january for an update. >> yeah. i think we are hopeful that by the time we introduce the new i guess rate structure we will have all that ironed out but bringing it up more and more we've already looking at what the impacts would be if we were to do a wastewater fee for example, we've been go talking with the mayor's office of the bureaucratic budget with the general fund increases over time so we've been you know talking about that as well so but, yeah i think we definitely like to talk about it for about the wastewater it takes a little bit of time to do the study get information we're hoping that when - >> we have a significant amount of work in the off year next fiscal year implementing our executing the cost of service study for wastewater we're doing one for power i think we have the probably the ban width for the commission to look at the enter play between those policies. >> maybe give you a schedule of activities to lead up to when we present to you a full picture of what the rate structure would be moving forward including the wastewater san francisco entertainment commission fee and decide how much fixed cost for wastewater and water so we can probably do a timeline. >> we'll put together a rough speakers shall address their comments to the commission as a whole and neither the police commission nor the over the next you know two years what we hope to cover when. >> a policy question i feel we'll need some of that information in order to be able to amend the policy i imagine. >> yeah. >> thank you very much any other questions or comments? anything else on the general manager report >> that concludes my report. >> next speaker, please. >> oh, public comment on the general manager report? >> hearing next item, please. >> item 582015-2016 financial audit report. >> r6 /* r67 2015-2016 audit report. >> good afternoon, commissioners this is franciscy deputy chief financial officer for fiscal year 2014-2015 those financial statements were audited by our dependent auditors who have render their opinion the opinion for each of 3 enterprises for the 7 consecutive year in a row each enterprises has an unmodified clean opinion of the financial statements 6th district at large they're appropriately presented containing no artificial information additionally the city and county of san francisco adopted the golf standards board the statement 68 forth and financial reporting for pensions and this is one of the reasons the financial statements were issued in november instead of the earlier timeline of october in the past the comprehensive annual financial reports will be issued tomorrow and we expect that we will submit to the government finance office association the g f o a an award for excellence and financial reporting again, no questions i'd like to introduce jenny the audit senior manager to present to the commission the audit results of the 3 enterprises. >> thank you my name is jamie a senior manager i worked on the puc account for 3 years now so thank you for having me. i will be presenting the 2015 audit results to the commission and it's presentation will address the communications to the board and in accordance with the audit standards one 15 and provide a high-level similarly of 2015 audit to start responsibility to perform the audit under the general accepted auditing standards and the government auditing standards and we extensive the internal control for efficient audit approach not for the purposes of an opinion or assurance of operating effectiveness of the control a pubically trade company we design the procedures based on the understanding the puc and not saluted assurance of the absent of the materials in the financial statements as indicated this means we develop and audit performance materials we sample the tractions contributions and not testing 100 percent of the transactions and perform is a at the time of the puc compliance with certain provisions of laws and contracts to the level and stent have a material effect on the financial statements and opine on the financial statements based on the audit results as indicated earlier we issued two reports for each of the enterprise funds and independent auditors on the financial statements of which we issued on urban modified clean opinion and issued a report on the internal controls over financial compliance according to the government auditing standards a clean report no deficiencies or significant undermines we confirm we're independent worksheet to the city and county and defined by the professional standards in the government auditing standards and in the reports you'll see the significant accounting policy needs this is referenced but note two for the puc in each the i didn't say funds financial we assure that the policies are in corners with the compliant of industry practices and standards one new standard effective in 2015 the 68 theth and financial reporting for pensions of which had a significant impact on the puc finltz as well as all other city and county departmental funds the statement revised the pension liability for the pension plan provides by the city and county to the employees the accumulative effect and the decrease and beginning of net position or decrease in 2014 ending that position the adjustment you'll see here and the effects were on water one and $55 million and wastewater 69 million hetch hetchy at 69 and hetch hetchy power at 20.7 million. >> we have significant accounts and transactions to require the adjusted and estimate the reason those are higher inherit because of the significance in the financial statement and because of the possibility of future events effecting them this defer from managements current judgment we've listed the significant accounts and in our process we review the method or estimate and determine the reasonableness of the assumptions of the data used audit adjustment exist to should the difference in the accounting literature foyer what management has recorded we have one cricket audit adjustment applicable to all the puc enterprise funds this is a reclassification judgment one the cash flow statement of which none were included in the skwiegs of the accounting statement therefore we proposed and management adjusted and corrected the cash flow of non-operating expenses from operating activities down below to non-capital and related financial activities this was 12.9 for water and warranted and 7 millions for hetch hetchy once again only a reclassification adjustment on the cash flow statements next, we did have an uncorrected judgment related to hetch hetchy and this was related to a deviation of a general accounting principle we call a non-gap policy of which management has the policy if totaled to less than $2 million the extraordinary items subsequent to the initial year will be recorded as other operating or non-operating expenses rather than below the line in extraordinary items if so once again a reclassification on or about on the income statement related to the rim fire and had a net amount of $1.4 million wrap up her we have no disagreements or difficulties with management the accounting and finance department are great and our audit request they make the audit a priority and the enterprises have knowledgeable folks that provide skwiegsz promptly to us management didn't consult with other dependent consultant not to agreeing with our analysis or interpretation of literature and we maintain our dependence no implication outside of the audit and have two written communications we receive annually the engage letter with the san francisco it documents our representation letters we've received for each report that is signed by management to finalize the outing anti e audit that concludes my presentation. if any questions. >> questions or comments i want to first of all, congratulations on 5 clean audits in seven years in a row pretty amazing work thank you for your work those last few years. >> i'll add we lost our cfo but as near as i can tell we'll not only replace him not specifically in the process that's the kind of depth that we can appreciate. >> other comments thank you very much for your presentation. >> public comment on the audit? >> hearing none next item, please. >> >> item 9 the bosco update mr. hurley i understand is here to present. >> yes. good afternoon michael the water resources manager ever bosco my colleague can't be here but a brief update on the activities you're wholesale customers and getting the slides here start off giving you a look at the individual targets as you can see from the slides the green bars are the targets given to each agency by the state board and you blue h the blue to date as you can see for the vast majority of agencies exceeding is it amount the 15 bar represents the waited afternoon for all the bosco agencies target assigned to them they're at the 29 percent well above their the fact of the matter we're not see the savings in the summer but all the agency are shaped up. >> can you go back didn't quite understand it was counterintuitive active. >> the green bars are what was assigned to each agency by the state board into the october from june to october. >> i see the blowing blue how they've exceeded the conservatism standards. >> that's good but the solid green line bar 15 percent is accumulative of what they're doing taking away at look at it with the powers to date on the total 9 month target each agencies listens those the vertical act assess and converted to percentages for the totals 9 months 19 of the agencies have achieved that the fact of the matter a couple of as that have compliments for moderate you'll not see the summer swing but all exceptions they'll make that accumulative for all agencies the total target what over 10 billion gallons we've exceeded it go close to 12 one half billion some are what the state board is looking at this will benefit the wholesale customers so you know we're all hoping and wishing for the best but the drought from the drought continues we'll continue to assume more work is needed with the landscape ordinance needs to be updated bosco has put together an ordinance that is more appropriate for the service area that is something they did in 2010 it is something the agencies can adopt on their own or the bosco ordinance the ordinance is provided to the valley water districts customers that are interested in the same level of customized ordinance the reneutral drought campaign our thought at this point shifts gears our agencies in the city retail customers have obviously done a great job and continue to ask them to continue their ways. >> finally mr. richie said we've been in communication with steve and his staff on this we appreciate that the agencies and other parts of state are maybe in different situations but whatever is proposed really shouldn't be born on the backs of the retail customers as well as the bosco agencies performing at outstanding low levels on the same page with that, i'm available to answer any questions. >> congratulations yeah. >> same to you. >> any other questions or comments public comment? thank you very much next up the consent calendar please read the items >> calendar, are considered to be routine and may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. approve the water supply for the ecology cotton and expansion project b approve the water supply

richie and their son rocco apparently wants to live with daddy. >>>> the jud told richie's lawyer if the child wants to stay with his father, he must return to his mother first. >> he's all grown up. >> he's now 15 years old. >> where did the time go? >> i know, we're old. >> i wouldn't mess with madonna. not because she's madonna but because she's mama. she's working that gown ththere. l righty. >>> there has been an answer. let it stream. a huge musical milestone, the beatles music now available for streaming worldwide. >> for many, the biggest musical swift and adele, the issue has been contentious. now the biggest band is on board. >> through services like spotify, apple music, title and others fans can listen to 17 beatles albums on demand to celebrate last night sir paul here tweeting out this message wishing everyone a very happy crimbo and a peaceful new year. >> the new song is going to released we're streaming, yeah, yeah, yeah. we're streaming >>> in music news, hip-hop star kendrick lamar is spreading holiday cheer this season, as ll. the rapper who just received more grammy nominations than any other artist for his alb "to pimp a butterfly," what does that mean? >> it's to kill a mockingbird. >> but not by releasing another music veo or pushing a new single but by showing kids the hard work. you see kendrick with a young boy who witnesses all the love the rapper has shown but where othe stars might l it go to their head, he keeps it in perspective for his young friend. >> i don't get it. >> please, i insist. >> thank you. >> thank you. >> you're most certainly welcome. >> man, anytime. >>>> you kw who that is? kendrick lamar. >> i should have got two. >> i know. hard work. >> you need to work for that. >> come on, maman,ake the ice cream? >> i got to. >> my favorite flavor. i don't care. >> unique musical arrangements on "to pimp a butterfly," have made him a huge hit with critics and fans and earning him 11 nominations. >> i think "to pimp a butterfly," swing like a bee, swing like a butterfly. >> the famous quote by me >> you don't even know the quote either. andfinally, a holiday gift the cast of the beloved netflix series orange i is the new black the retelling of a christmas tale. >> the story of santa coming to their prison. >> we sprang to our bunks as the guards gave a shout, our christmas was over, our secrett was out. >> santa fled fm the scene as the lockdown began. >> not the first time i've taken the rap for a man. >> i heard him explame as we ran to our cots. >> happy holidays, ladies, you're all getting shots. >> oh, that's hilarious. season 4 coming sometime next year. >> merry christmas. >> i remember now. float like a butterfly, sting like a bee. >> brian getting in her ear. >> no, it came to me naturally. what it meant. we've been changing things up with k-y love. oh yeah. it's a pleasure gel that magnifies both our sensations. it gives us chills in places we've never gotten chills before. yeah, it makes us feel like... dare to feel more with new k-y love. (coughing) coughing disrupts everyone's life. that's why there's delsym. delsym's advanced time release formula helps s silence ughs for a full 12 hours. all night.t... here comes santa claus here comes santa claus right down santa claus lane. >> it is timeless. listen to it in march of next year. if you haven't finished your christmas shopping, you've got plenty of time. but at least you're in good company. >> there are pley of people out there who have yet to wrap their presents and place them under the tree. trina trinh is at macy's here in new york with last minute shoppers. >> i'm here at macy's herald square the iconic store here in new york city where i'm lrning when it comes to christmas shopping, there are a lot of procrastinators among us. take a look. people still out shopping on christmas eve. we've got a couple hours to go before the official day. and it's crunch ti. and people are out trying to score those last-minute deals. what to get for people this year. every shopper here. can i talk to you? >> hi. >> what are you in ththe market for? >> for shirts. >> okay. and who are you shopping for tonight. >> i'm shopping for my wife, my son, my grandmother, my grandfather, my other grandmother and grandfather, aunts and uncle pooz. >> you waited till the 11th hour to come here tonight. >> i i just came back from jersey, yes. >> why did you take you till now? you could have been a little bit more prepared. >> yes, you're right. >> what's on the list for everyone? >> i have no idea. i'm so confused. >> good luck. good luck. >> thank you. >> how about you? what are you here shopping for tonight? >> some cologne. >> is this really for yourself or somebody else? >> it's really for me, n no, for my dad. >> i thought so. all right. on here at macy's. wishing these guys a lot of luck. we'll s what happens on christmas day. back to you. >> thank you, tina. good to know. there's nothing wrong with buying a little merry merry christmas gift for yourself. >> i do it all the time. i did shopping yesterday and ended up buying a lot of stuff for myself along the way. the good thing is a lot of these stores are open overnight, toys "r" us being one of them and open till late on christmas eve. >> still got to find the rescue bot salvage. let me know, folks one thing he wanted this christmas. >> updates wnnfans.com. >> announcer: this is abc's insomniacs for two decades. >>> good morning on this christmas eve. i'm reena ninan. taking a look at some of our top headlines we're follolowing thi morning on "world news now." >>> at least seven people are dead across parts of theouth where nearly two dozen tornadoes cut a wide path of destruction across mississippi, tennessee and arkansas. more details and our accuweaer forecast in a moment. >>> the bodies of the six service membersrs killed in afghanistan are back in the u.s. defense secretatary ash ct ker honored them at a memorial ceremony at delaware's air force base. >> douglas hughes awaiting sentencing for flying a gyrocopter on to the grounds of the u.s. capital says he's going to challenge debbie wasserman-schultz for her seat in congress, the chair of the democratic national committee andhristian pilgrims in israel celebrating christmas by visiting a nivity re-enactment in nazareth and church services later in bethlehem. those are some of ourop is christmas eve, december 24th. >>> from abc news, this is "world news now." >> well, merry christmas. rtner. >> merry christmas to you. >> hope you finished all your christmas shopping. >> completely done, i've got to wrap them all. clearly you got completely wrapped there in christmas. >>>> i wrapped up in your wrapping paper. figured you didn't need ned. >> like a hot red. >> i'll take that as a compliment. not so hot downsouth. violentweather, the images remarkable. some people not having a merry christmas down there. trendous. striking parts of the south. at least seven people dead. >> not the sort of story we want to talk about going into christmas eve and christmas, as well. at least seven people are dead but at least 21 tornadoes raked across three southern states. including this monster. look at that. this is in the town of holly springs, mississippi and this is what's left behind. two people including a 7-year-old boy killed. the twister p picked up and tossed by nightfall, p parts of whory springs reduced to piles of rubble. some people were caught on the side of the road trying to decide where to turn. >> back it up. >> no. you ain't got time to turn around. >> there's a tornado in front of us. >> settle down. >> it's not over yet. tornado watches remain in effect across parts of at least four southern states. >> this violent weather couldn't have hit at a worse times millions of americans set out on holiday travels. getting home to family has been a bit of a nightmare. brandi hitt has more. >> let the holiday travel rush begin. >> this is the worst time to travel. across the country. long lines forming in chicago before 6:00 a.m. this is crazy. >> i'm hopingg i'm going catch my flight. >> reporter: one to three-hour flight delays in new york, new jersey, and philadelphia. >> we're delayed. no, delayed. >> reporter: this southwest airlines flight was forced to return to oakland for an emergency landing after the plane suffering aechanical problem circled for nearly four hours. >> it s going very slow because they were trying to get the landing gear up and it wouldn't go up. >> reporter: across much of the country, severe weather is impacting the roads. with snow falling at an incher hour in parts of oregon. >> oh, my god. >> reporter: 80-mile-per-hour winds leaving damage in southern california and this tornado touching down destroying several homes in mississippi. >> if you haven't finalized trav plansest, be aware the secocond worst travel day is expected to be sunday. reena and kendis? >> our thanks to brandi there. the usual weather pattern could cause more travel delays in the hours ahead. >> snow in the west and downpours in the east. here's accuweather's justin povick. these severe threat have diminished. good news after a very, very busy day yesterday with all the tornado reports and unfortunately, all the damage, as well. there will be some rain continuing for today out east. but this is the big story. temperature departures 25 to 30 degrees bob norm, record amounts of warmth. out east, we're concerned about heavy snow and soaking showers at the coast. reena and kendis, back to you. >> thank you so much. >>> lawyers for the woman accuses of driving on a las vegas strip sidewalk says she's distraught and overwhelmed. lakeisha holloway made her first court appearance yesterday charged with murder, child abuse and hit and run and currently on suicide watch. one person was killed in the incident. the coroner saysessica valenzuela died of blunt force trauma pla. >> a woman died after she was forcefully removed from a hospital. her family blames the police and we get more from linzie janis. >> >> reporter: angela donar says she watched her niece, 57-year-old barbara dawson, collap as police hauled her out of a hospital in handcuffs. >> they didn't do what they could. >> reporter: relatives say it all started around 10:30 sunday night. dawson was rushed by ambulance to this small florida hospital complaining of stomach pain. she waevaluated by doctors and discharged just before 5:00 a.m., but her family says dawson still didn't feel well and wanted to stay. that's when lawyers for the family say hospital staff calllled the police. families say nurses took her off the hospital's oxygen, and dawson complained of trouble breathing in the parking lot. this photo, taken by a family member, shows dawson where she collapsed, still in handcuffs near the p police ca >> the general public should be strongly concerned that a person who is seeking medical help would end up in cuffs and end up dead. police, medical staff observed dawson had a pulse and appeared to be breathing. she was taken back into the hospital, where she died. the medical examinerer telling police, dawson suffered a blood clot in her lungs. the calhoun liberty hospital saying, it can't comment on why dawson was remove but saying, "in such cases, the safety and comfort of all patients is considered." the florida department o of law enforcement says it will investigate. linzie janis, abc news, new york. >>> at least 15 civilians are dead in a a wave of attacks across iraq, most of them bombin. progress by government forces in daking back the city of ramadi. houses are booby-trapped. ramadi fell in may. the army chief of staff claims it will be back in government hands within days. >>> british o officials want answers from the u.s. why a muslim family's disneyland raeks was spoiled. were stopped right at the boarding ramp and told they could not get on their flight to los angeles on orders from washington, d.c. they say it was humiliating and traumatic. agents say their religion had nothing to do with their decision but wouldn't elaborate. >> a black lives matter activist says the mall ofof americaas used as a decoy to start a protesest thatuickly moved to the minneapolis airport. protesters are angry over the killing of a black man by police. they claim jamar clark was shot by police while handcuffs. >> the walmart truck driver who slammed into tracey morgan's limo has been indicted. he hasn't slept for 28 hours before of the crash along the new jersey turnpike. morgan was seriously injured and his friend killed in the crash. >>> former f football coach jerry sandusky will be receiving a rather large pension payment he's serving a a prison sentence for child molestation. the pennsylvania system stopped his monthly payment the day he was convicted three yearsago. a courtas ruled that was illegal becse he retired in 1999. he will be maid a check for $211,000 next monday and his monthly benefits nearly $5,000 will resume next month. >>> and steph curry of the golden state warriors among the big nba stars who appear in a new public service ad against gun violence. it features survivors of gun violence and families of shooting victims. it will debut tomorrow during the nba's popular christmas day schedule of games. >> the chipotle restaurant near boston college is reopening today. two dozen patrons came down with nor row vifs after eating there. it has been battered by outbreaks of e. choli and taking steps to improve food safety fresh vegetables. sales have plummeted since midsummer. >> in milwaukee, it is being called a feat of sweets. the house from the disney pixar movie "up" has been re-created into a fantastic confectionery conglomeration. this genius gingerbread house was created by an 18-year-old. as part of the milwaukee area technical college banking and pastry arts student gingerbread house competition. >> i took her more than 100 hours to create but sadly, can prize. how is that possible? >> what would take the prize above that. >> i like the little gum drops suppos to be the balloon out of the chimney there. that's cool. >> disney is the parent company of abc news. >> really? >> yeah. >> okay. >>> coming up, the social media trend that is not in the christmas spirit. how it can be harmful to kids. >> also ahead, shopping for bargains even at this hour. the early morning mad dash for christmas gifts at a new york iconic retailer. check out the scene. >> and safety on the football field. nfl players and their injuries on t field pro athletes react to the new movie called "concussion," after our forecast map. it will be warmer in new york city than los angeles on christmas eve. >> that's pretty cool. >> it's a about time. >> great falls, you're stuck at 24. >> announcer: "rld news now" gerber life insurance. [cough, cough] mike? janet? cough if you can hear me. don't even think about it. i took mucinex dm for my phlegmy cough. yeah...but what about mike? he has that dry scratchy thing going on. guess what? it works on his cough too. cough! guess what? it works on his cough too. what? stop! don't pull me! spoiler alert! she doesn't make it! with two medicines in one pill. start the relief. ditch the misery. let's end this. music starts and plays throughout gucci guilty the fragrances for him and for her. we've beenen changinthings up with k-y love. oh yeah. it's a pleasure gel that magnifies both our sensations. it gives us chills in places we've never gotten chills before. dare to feel more with new k-y love. surveillance camera robbing stores in miami at one location, smasd their way in once inside heading for designer jeans valued at $600 a pair. at another store they grabbed >> wha was it? >> hover boards. they can be see on camera using a cart to cryry o boxes of them. wouldn't it be ironic if it exploded when they used it. >> how did they not use a hoverboard to get out? >> maybe they were worried about the explosion. >> okay. so you can add hyatt hotels to the grorowing lt o companies hit by hackers. it's investigating malwear found on computers used to process customer payments. guests are advised to revie statements. the breach only affected hotels it managed by hyatt and not franchise locations. >>> the new york giants will be without o'dl beckham for sunday night's must win game against the vikings. beckham's appeal of the one-game suspension he received for violent conduct sunday against carolina was heard at the nfl's office here in new york yesterday. that appeal w was denied. despite his beautiful blonde hair. team meetings, much less play in minnesota. the of. >> the new look, the blondee look was pretty nice. >> it's an interesting look. >>> nfl's week 16 begs tonight with the chargers taking on the raiders. tomorrow a movie called "concussion" premieres in theaters. >> a doctor uncovered the truth about brain damage in football players. what is the nfl saying about it right now? here's ryan smith. >> you're going to war with a corporation that owns a day of the week. >> reporter: the national football league speaking out exclusively to abc news just days before the premiere of "concussion." >> do you want fans to see this movie? if there's a benefit, we're going to elevate the conversation around the health and safety of our game. >> the trailer suggesting back then the league didn't want to face issues conceing head trauma. >> the nfl does not want to talk to you. >> when a movie like thi comes this is a sign that the nfl tried to cover things up before, how do we know they're not giving us all the information now. >> take a look at what we've done. >> reporter: the league saying a lot has changed since 2005. updates to 39 rules related to health and safety in the last decade, implementing new concussion protocols and investing millions to improve equipment like special straps that aim to regulate head movement in the helmet. is this enough? the doctor telling robin roberts no matter how protect tiff the helmet it, won't stop injuries. >> look whahat happen to your brain when you have impact. the brain bounces around the skull. you take a padding, the padding will simulate the helt no matter how thick it is. look at what happens. >> what difference does improving the equipment make when a head to head impact or some very hard impact could traumatize the brain no matter how thick the outer protection layers are? >>. the safety of the equipment. >> reporter: do you think we can ever stop head injuries in football. >> probably not, but i think we can minimize them. >> ryan smith, abc news, new york. . >> thought that the interview was incredible with the nfl officials. really interesting. >> just learning a ltle bit out what's happening there in the nfl. >>> coming up, teens suffering from the fear of missing out. >> the proliferati of bling on social media and how it's affecting kids that don't have their parents' money to spend. next on orld news now." >> announcer: "world news now" abc stations. there are oceans and rocks. places where fish swim and birds fly. history is made. art is created. things happen that should always be remembered. heroes emerge. a woman sets people free. a man makes lighght. a leader steps forward. it can be a place, a feeling, a state of mind. so get up. tt2w`t2n`qd" bt@q= h tt2w`t2n`qd" "a@q-,, tt2w`t2n`qd" bm@q&' tt4w`t2n`qd"" dztq 6px tt4w`t2n`qd"" entq ft8 tt4w`t2n`qd"" gzt& _s@ tt4w`t2n`qd"" hnt& o], tt4w`t2n`qd"" iztq %4t tt4w`t2n`qd"" jntq 7d4 tt4w`t2n`qd"" lzt& /)h you're a rich girl and you've gone too far because you know it don't m matter anyway >>, ofourse, haul and oates. money mht not get you far but for kids looking to showoff it gets you followers. >> it could be affecting other kids more than you realize. here's abc's nick watt with. >> repororter: the do s say if you've got it, flaunt itit. >> i probably spend around $15,000 a month on just shopping. > i've been getting it since i was 14. >> these snot nosed kids have it and boy do they want the world to know it. i posted photos of my life. >> so-called rich kidids of instagram are sharing photos and videos of everying from private jets to parisian hotel suites. >> some people would take up to 30 a day and try and post them. we wanted to find out what it was that was driving this em to do this. >> reporte director oscar hum frizz made a documentary called "rich kids of instagram." >> there's a fascination with what goes on in the worlds of the top 1%. instram is kind of like a portal into people's live instagram is my canvas if i was an artist i would like to paint the picture of my life. >> reporter: some of these kids have hundreds of thousands of online follower. >>s. >> when you get a lot of attention, it can be intoxicating. >> reporter: i've no doubt will be kind to the rkoi, but is this naughty or nice? what are the cars, the cash them feel a little disappointed in their own reality and rkoi induced fomo, that's the fear of missing out in teen speak. >> they're showing an extreme version of their lives. for children that are impressionab, this information can lead to increased risk of depression and loneliness. >> are you going to come andnd stop me? >> i'd liketo. i think i'd like to. nick watt, abc news, los angeles. >> it is quite interesting actually looking at the photos. rkoi. >> unfollow. there is an unfollow button on instagram. >> but it's so interesting. a lot of scantily dressed kids there. on rkoi. let me say. coming up, last minute shopping. see what everyone got. hey buddy, let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. that one doesn't. uh...think fast! you dropped something. oh...i'll put it back on the shelf.. new om mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. start the relief. ditch the misery. we've been changing things up with k-y love. oh yeah. it's a pleasure gel that magnifies both our sensations. it gives us chills in aces we've never gotten chills before. yeah, it makakes us fe like... dare to feel more with new k-y love. [coughing] [coughing] [coughing] [coughing] [coughing] coughing disrupts everyone's life. that's why so many people are turning to delsym for longer lasting cough relief. delsym has an advanced time release formula that helps silence coughs for a full 12 hours. that's three times longer than the leading cough liquid. all night... or all day. when santa claus gets your i really do believe, you'll head his list you won't be missed >> christmas comes once year. for planning purposes, i it's always on the same day so that it's christmas eve, and there are people who still need to shop. >> i always get the date wrong. some people do their best work under pressure. trina trinh is in macy's in new york's herald square to see what the last minute scene is like right now. >> that's right. it's christmas eve and there are still shoppers out and about. it's crunch time. and i am so surprised at how many procrastinators there are among us. we're going to try and talk to a few and see what they've got. here are some guys who i found earlier. introduce yourselves. >> i'm abraham. >> i'm jen. >> hey, guys. honest here. why are you out shopping at the last minute like this? you had all year. we wait up until the last 24 hours to shop for people. >> okay. >> and you want to know what i have. you want to know what santa's got in the bag. >> what did you get? >> we've got look at there, beautiful eskimo hat. >> that looks like you got that for yourself. >> it fits me perfectly but i've got a vet -- my head fits a lot of people's heads. there is going to be for many people. it could even be for you and some jeans. 34/32. i'm not a 34. i'm a lot thinner than that. >> who are the jeans for? >> they're for my grandpa. >> he's going to be a stylish grandpa. >> buddy. ize going to love them. his favorite brand. levi's. >> okay, guys, thanks. good luck. >> merry christmas. >> they braved the crowdsds. there's still time ifou want to get out there. and yeah, everybody's out tryingg finish cross off their christmas lists. >> thank you, tina. >> i think they're out photobombing tina. so about 10% of people actually wait till after december 23rd. >> i remember when the clintons were at the white house, bill clinton always waited till christmas eve to go to the shopping mall. pentagon city. but you never wait. you don't take the clinton approach. >> this is really what my shopping experience looked like on wednesday. >> you're always so thoughtful. >> my god, you should see. >> you're not a a grinch. you're not a grinch, kendis gibson. merry christmas to you. >> you're expensive. >> i am expensive. hour merry christmas, everybody. >>> this morning on "world news now," deadly storms tearing a >> theornadoes caught on video sending trucks flying and destruction. the heart break and the next storm threat for holiday travelers from accuweather. >>> angry protests causing prlems at the largest mall in the country. the demonrations taking over an airport, the frustrations and the arres. >>> protecting t thepope. new york police officers on trol at the vatican. why these cops were sent overseas in an unprecedented mo. >> and cartoon controversy. republican ted cruz and his kids portrayed in a political cartoon. the insulted candidate and how he's fighting back. it's thursday, christmas eve, december 24th. >> announcer: frombc news, this is "world news now." >>> we do say good morning to everyone on this christmas eve. i'm kendis gibson. >> i'm reena ninan. >> we begin with those deadly storms in the south. violent weather has cut a wide arkansas to mississippi up through central indiana killing at least seven people. >> there are 21 reports of tornadoes and twisters including this one. this is a monster you're looking at in holly springs, mississippi that killed at least two people including a 7-year-old boy. when the twister picked up and tossed the car tt he was riding in with relatives. >>en an we're just now getting a look at the damage from another twisist in como, mississippi. richard cantutarts off our coverage. >> ow, i this i that's a tornado blowing up. >>>>evere storms take aim at the south. >> monster tornadoeading towards holly springs. >> people pulling out their cameras i mississippi. >> i can't stick around here. i'm going to find cover. >> reporter: as a massive funnel cloud tore across the state. some people caught on the side of the road trying to decide ere to turn. >> back it up. >> no, you ain't got time to turn around. >> there's a tornado in frontnt of us. >> this couple capturing the scary moment. >> it looks like there's two. >> when one twister became two. >> oh, wow. >> reporter: in the town of clarkson dale, the storm hit so fast, o one family evacuating their home had to shelter withh neighbors. >> we in it but we made it. >> that family's house torn to pieces, t the roof gone. but the tree and presents survived. >> thank you, jesus. >> reporter: the system sweeping the south spawning tornadoes and dumping heavy rains. >> geez louise, it's blowing. >> reporter: it's alreadyy turne deadly. >> man, a real-life tornado. >> they've got emergency folks out here videoing the damage. there's 18-wheelers blowing over. an old cotton ginn. >> parts of holly springs mississippi reduced to piles of bricks. families planning to spend the holidays at home left figuring out what's left. richard cantu, abc news, new york. >> those storms are striking just as tens of millions of americans head out for the holidays. day this holiday season. for many it's been a nightmare. airports pacd with hundreds of cancellations and nearly 6,000 delays. this southwest airlines flight you're about to see was forced to return to oakland for an emergency landing. you see it there. the plane had a mechanical problem. it had toircle for nearly four hours. >> the plane was thumping and it was going very slow because they were trying to get the landing gear up and it wouldn't go up. >> if you haven't finalized travel plans yet, b aware the second worst travel day is expected to be this sunday. >> so the hours ahead could be very critical and challenging for travelers. >> after that powerful storm sysystem that hit the south and dumped rain on the northeast, accuweather. morning to you. >> good moing. storminess out west. all the tornadoes, all the damage we saw yesterday, thankfully, will not repeat threat for tornadoes has diminished. but t the threat for heavy rain and mountain snow is increasing out west. we're looking at big travel delays around san francisco with heavy snow over the higher terrain. big-time warmth on the way for the eastern seaboard. temperatures approaching 30 degrees above normal make it feel like it's in the 60s and s. down the road, a maj storm coming up over the weekend. heavy snow also some flooding rains and more severe weather. reena and kend, back to you. >> just a little bit west of where justin was talking about, the big concern is snow and lots of it. the danger was caught on camera yesterday, a draw theic avalanche on the cascade mountains western face in utah. no injuriesave been reported but the utah avalanche center has extended its back cntry avalanche warning. >>> and over in telluride, colorado, a twin engine plane crashed into a snow plow. the plow was clearing a closed the plow operator estimated the plane was going aboutut 100 miles an hour when it struck him. he was uninjured. amazingly. none of the seven people on board the plane were injured, as well. >>> lawyers for the woman accused of driving in a las vegas strip sidewalk says she's distraugh and overwhelmed. lakeisha holloway is charged with murder, child abuse and hit and run. she's currently on suicide watch. one person was killed in the incident. the coroner says jessica valenzuela died of blunt force trauma. >>> a dozen protesters arrested after two black lives matter demonstrations in minneapolis. they are angry about the polic shooting of jamar clark. the rally started at the mall of america and moved to the airport. abc's alex perez is there. >> black lives matter. >> protest ares in minneapolis disrupting one of the biggest shopping days of the year at the biggest malln the country, demonstrators vowed to bring mall traffic to a standsti. out 80 worried stores closing their doors. protesters shut down by police. then moving to minneapolis st. paul airport blocking a main entrance on one of the busiest ravel days of the year. thask snarled. many missing flights. >> it would have been upsetting to not get to see my family. >> the black lives matter protesters have been taking to the streets in minneapolis since jamar clark died november 15th after he was shot by white police officers. demonstrators say he was handcuffed when officerspened fire. authorities denied that, the police union saying clark was reaching for an officer's gun. several protesters were removed by police but they say the demonstrations will not stop till the officers involved are charged. those officers are on paid leave pending an independent state investigation. are back on and the heavy police presence as authorities try to get things back to rmal. alex perez, minneapolis. >> and black lives matter protesters shut down a major freeway in the los angeles area. the action started mid afternoon. this is on the 4055 in englewood. demonstratorss spray painted the names of black suspects killed by police in recent months. nine people were arrested. >>> six service members killeled in afghanistan by a bomber are back in the u.s. defense secretary ash carter was at dover air force base in delaware for the return of the bodies. among them was a new york city police detecti and airorce major believed to be the first openly gay active duty service woman to die in combat. >>> across iraq a wave of anti-isis attacks killed at least 15 people after government offenses launched an offensive to take back a major city. isis is putting up a tough roads are mined and homeses are rigged with bombs. snipers are also slowing the advance of the government forces. >> and isis is also causing concerns at the vatican. so get this. the new york police department is on patrol there to ptect visitors during the roman catholic church's year long jubilee. it's an unprecedented move as abc's elizabeth hur explains. >> good to see you. enenjo >> repter: it's a first for the nypd and the italian police, but this joint international security operation at the ran can is a sign of the time >> in light of recent events in europe and in the united states, you know, we continue to learn and we continued to adapt. >> reporter: police from new york, spain and poland are in rome assisting with security for the catholic church's year long jubilee ef mercy. it is only the 27th time in the history of the church that there has been a holy year, and this year, italian officials say patrols for a good reason. explaining they cannot underestimate or ignore the ongoing threat posed by isis, especially following the recent attacks in paris. authorities say they deployed thousands of officers and soldiers from across italy and asked for help from around the world. and for security reasons, italianuthorities are not revealing the ect number of officers taking part in this operation but we are told t there will be visible police presence at the vatican at all times. reena and kendis. >> impressive endeavor. it's one of the holiest times of the year on thehristian calendar. these are proof in nagz reth the birth of jesus christ was celebrat with the re-enactment of the nativity with special details re-creating what jesus hometown may have looked like in biblical times. actors dressed as mary and joseph, roman soldiers and others took visitors on a trip through time. it looks like a little time capsule there. and speaking of christmas, we all know that santa claus is gearing up for his annual be round the world trip. we're going to presume his final preparations got done somewhat early this year. >> we say that because there was santa. seen there carrying his paddle board to the ni agrag river in balmyy buffalo, new york. he got in the river and paddled away. >> so all kidding aside that's john fulton the so-called surfing santa. he's taking his yearly three-mimile trip down the ni agrag river. he does it to raise awareness about homelessness. >> i'm troubled there's no bag of toys following him. >> yeah, and also missing from that picture right there, the icebergs that usually gather on the ni agrag river about now. he wears a bodysuit to warm him up. this year he didn't quite need it. temperatures up in buffalo. hang ten, man. >>> coming up, the school lunch there's a breaking development "the mix." the political cartoon taking aim aim at ted cruz's children. how the insulted presidential hopeful is fighting back. >> and the little girl who panicked after knocking an elf off the shelf. what she did to stay off of santa's naughty list. >> look for our pictures on instagram, abcwnn. merry christmas, everyone, from "world news now." hey buddy, let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. this one is max strength and fights mucus. that one doesn't. uh.think fast! you dropped something. oh...i'll put it backon the shelf... new from mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. start the relief. ditch the misery. let's end this. karl, don't you have friends coming over? yeah, so? are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use... ...febreze fabric refresher whoa hey mrs. webber inhales hey, it smells nice in here and try pluggable febreze... ...to continuously eliminate odors for. ...up to 45 days o of frhness pluggable febreze and fabric refresher... ...[inhale + exhale mnemonic]... >>> the man who pleaded guilty to a fony after flying a vi joe copter onto the groun of the u.s. capitol says he's going to run against one of the most powerful democrats in congress. douglas hughes wan to take on debbie wasserman-schultz, the chair of f the demratic national committee. his attorneys say that does not make him ineligible to run. what do you think? >> interesting race. to presidential politicsow and some of dr. ben carson's's staffers are denying a possible shake-up is about to take place inside his campaign. >> ted cruz has drawn something of a line in the political sand when it comes to his children. >> in ted cruz turns an alleged insult into ammunition. "the washington post" took down the editoal cartoon that depicted cruz's two daughters as trained monkeys but not before cruz forwarded to supporters in >> folks want to attack me, that's part of the process. i signed up for that, that's fine. but my girls didn't. >> cruz calls the cartoon proof of the liberal media's desperation to attack him. an editor at the post says he doesn't agree with the cartoonist that is cruz's children are fr media for scrutiny because cruz featured them in this christmas themed campaign ad. so defending against a controversial attackck, hillary clinton after donald trumpp used aid sexually drogry term to describe her losssn 2008. despite controversy, a new national poll shows trump maintains his c commandin lead in the republican race. >> i think right now the odds favor him. >> the last time a republican was this had dominant right before christmas was 1999 when george w. bush went on to win the nomination. reena, kendis? every night we talk about how donald trump is -- >> is surging and continues to surge. his poll numbers nationally around 38% now and the next closest ted cruz about 18%. we still have about8 days till the iowa caucuses. you have to think. >> he used a fund-raising opportunity, he even had a picture of hillary clinton lap dogs ithe "new york times" and "washington post" as the dogs. do you think this helps his supporters rally even stronger behind him?m? for donald trump? >> sorry, for ted cruz. >> no, this is actually the sort of gravy he needs. the good thing for donald trump, this is what his supporters need for him to take on hillary clinton at this point, that will help his numbers i would imagine. >> okay. see what happens. >> coming up inn our next half hour, gift card grinches. the most popular of gifts targeted by thieves making them worthless before you can buy them. >> first a desperate 911 call up on santa's badside after an incidedent withn elf on a shelf. you're watching "world news now." >> announcer: "world news now" continues after this from our c stations. i can't believe we broke old man hennessey's window correction dude, you broke. i jujust threwhe ball. this is really bad. what are we going to do? dude, kiss your life goodbye. let's go. oh. keep smiling, keep shining knowing you can always count on me, for sure tell him it was an accident and we can fix the window. knowing you can always count on me, for sure i'll come with you. woah, that's what friends are for >> okay, people, tomorrow morning, 10:00 a.m. santa's coming to town. >> santa! oh, my god! santaa here? i know him. i know him. >> oh, everyone's excited for santa. >> nta. >> especially the elves. but when one elf fell off the shelf, a new jersey girl jumped into action. >> so she was trying to stay off so of coursese, she had to call 911. abc's ron claiborne with her story. >> reporter: twas the week before christmas, and 7-year-old izzy was playing in her family's living room. >> i was doing this and then it hit the elf. >> reporter: one of the two elves on their shelf, his name is buddy jingles, was knocked out of his stocking and onto the floor. >> ah! >> reporter:r: from a pular book based on an old tradition that has become a viral phenomenon. an elf is supposed to be left alone, to observe who is naughty or nice and report back toto santa. an adult can touch an elf but a child, absolutely not. so wn izzy's elf plopped out, she called 911. >> 911. >> 911. where is your emergency? >> don't come to my house, no, i don't! >> reporter: a few minutes later. >> hello? >> reporter: it was a policeman come to check it out. >> mmy, there's a man at the door. >> so, i said, can i help you? and he s said, youdaughter called 911. for the best. with little izzy learning valuable lesson. >> don't call 911 -- for only emergencies. that's what you do. and don't call it for nonemergencies. merry christmas, everyone! merry christmas, kids. >> repter: the end. ron claiborne, abc news, old bridge, new jersey. >> hey,o her it was an emgency. >> absolutely. she's still talking right now, isabela. it was an emergency. that's right. that's what the police -- the police lieutenant there was saying that it was an emergency to her when she touched the elf and she thought she was going to ruin christmas. so. >> that's got to be very traumatic at that age. >> absolutely. she's on the good list still.l. >> coming up, little beds in odd places. christmas accommodations for guests this weekend. >> and the rean a little boy is next. [coughing] [coughing] [coughing] [coughing] [coughing] coughing disrupts everyone's life. that's why so many people are turning to delsym for longer lasting delsym has an advanced time release formula that helps silence coughs for a full 12 hours. that's three times longer than the leading cough liquid. all night... or all day. we've been changing things up with k-y love. oh yeah. it's a pleasasure gel at magnifies both our sensations. it gives us chills in places we've never gotten chills before. yeah, it makes us feel like... dare to feel more with new k-y love. it's time fo"the mix." >> and we're going to starthis with the you've got to be kidding me. take a look at t this woman here. this is dalene wden, a lunch lady in idaho. she seems nice enough but recently got fired because she gave a 12-year-old girl who -- a meal from the cafeteria. she's a lunch lady there at the cafeteria at the middle school and apparently the young girl was hungry and didn't have any money for the meal. this is a termination letter. but instead of praising her, the middle school fired her. they say for stealing. >> oh, no. come on. >> yeah. can you believe that? the servisor actually refused to allow her to even pay for the lunch for this younglady. >> what? >> after a little bit of blow back from that, weas been offered her job back. not sure if miss bowden plans to >> also because my cafeteria ladies in tampa, florida, always gave me extra tater tots. i was a pathetic little child. >> sthoutout to lewis elementary. >> you like that. >> yes. >> a l of people coming over whether it's grandma's house, friends house for the season. take a look at the weird places people are staying. childhood beds where adults are required to sleep in. this is hello kitty. this is like my daughter's dream bed right here. probably not an older adult's dream bed. a few years ago, he had to stay in that small little twin bed and shared his bed on social mediand wants others to share their beds, as well. >>hen you go back home to your parents bed, all of a sudden you're in your spider-man pajamas and once again on the bed. >> or you have a mattress in the laundry room. >> that's kind of awkward. >> okay. >> but it's cozy. on the dryer. >> exactly. >> folks, don't do that. >> lull you to sleep. i want to show y you thi wonderful wedding ceremony taking place down under. beautiful setting.g. beaututiful uple. you know, this is hannah and ben. they're getting married. and you know, it's just a beautiful setting for their wedding and then their 3-year-old son steps in. take a listen quickly. >> the real values in life and come back to decide what reall matters. >> he says i got to poop. >> nothing about timing. but anyways, a guest swooped him up and took him off. there's actually video of what happens next to young hudson. but we're out of time. can't show you that. >> come back to decide what >> i need to poop >>> this morning on "world news now," holiday heheartache. tornadoes blast their way across the twisters caught on camera. the human toll and today's threat fm accuweather. >> fighting back. the controversial political cartoon taking aim at ted cruz and his children. how this candidate is turning an insult into an opportunity. >>> w this half hour, banned from the u.s. one family's outrage. >> the british man and family members planning to visit disneyland. was eir flight canceled because of their religion? and later in "the skinny," madonna's legal battle has nothing to do withth her mus. this is an international family dispute on this christmas eve. it is thursday, december 24th. >> announcer: from abc news, this is "world news now." >>> go morning on this christmas eve. i'm reena ninan. >> i'm kendis gibson. of course, we're going to get startedn a serious note because of those deadly storms that are crossing the south. >> we're talking at least seven people who have been killed in stretched from arkansas to mississippi. there have been at least 21 reports of tornadoes confirmed andtwisters, as well, including tornado in holly springs, least two people including a 7-year-old boy. >> we're just getting a look at some of the devastation in tennessee where at least two people were killed there. look at that. that car just tossed around. our coverage begins with phillip mena in memphis. >> oh, man. massive tornado totouching dn in mississippi. but the storm dumping half a foot of rain on mobile, alabama. the street looking more like a river. pied spread damage across the souths storms moved through. in arkansas 60-mile-an-hour winds uprooting winds. an 18-year-old woman died after a tree crashed into this home. an 18-month-old baby pulled from the wreckage. >> the toddler was transported to a local hospital.l. the 18-year-old female was pronounced dead at the scene. storm system, heavy snow causing spinouts in wisconsin. meanwhile in the west, snow-covered roads snarling traffic in utah. while gusts overer 80 milean hour in mojave, california, toppled 15 to 20 tractor-trailers. watch as the roof of this building is ripped clean off. those big rigs banned from the highway till the winds die down. >> scary. i don't like this truck rocking. >> reporter: and these storms are still not over. the mayor of clarkesville, mississippi, calls the damage there horrific. and officials here in memphis are worried that christmas decorations could become projectiles as these storms continue to fire up. phillip mena, abc news, memphis, tennessee. >> thank you. >>> it's been a busy christmas eve for law enforcement and emergency management in the south after those deadly storms. >> as video comes in showing how powerful these december tornadoes can be, the strong winds knocked over a truck on a meteorologist justin povick continues our coverage right now from accuweather. good morning. >> reena, kendis. thanks and good morning to you, as well. thankfully good news. the severe threat that hammered the tennessee valley with all the tornadoes and the damaging winds, that is a thing of the past. therwill be some showers along the eastern seaboard. out t west, wee concerned about some wet and wintry weather creating some big-time travel delays from san francisco on southbound. then as we kick out east, showers on the move, but temperatures will be record-breaking warm. reena and kendis, back to you. >> our thanks to justin there at accuweather. as you mentioned, the big story is the snow in the west. avalanche warnings are posted in 11 states, in telluride, colorado it was a sea of white at the airport where a private plane coided with a snow plow. that was trying to land the plane at the time. the snow plow operator wasn't injured. nor were the seven people onn board that plane. there's no word, however, on why that plane tried to land on a for a southwest airlines flight in oakland, california. the pilots reported landing gear problems shortly after takeoff and had remain in a holding pattern for four hours burning fuel over california's central valley. many passengers were deeply shaken by this. the ride was turbulentnt as the pilots tried unsuccessfully to get the plane back up. the plane eventually landed safely. >>> a walmart truck driver facing charges in connection with last year's crash that seriously injured tracy morgan. a grand jury indicted kevin roper. the charges include first degree aggravated manslaughter. investigators found roper hadn't slept for 28 hours before the crash along the new jersey turnpike. morgan's friend was killed in the crash. >>> the man accused of a deadly shooting at a colorado planned parenthood clinic wants to act as his own attorney. robert dear also told a judge that he won't cooperate in a previous court appearances, dear talked over his own attorney andflectly interrupted the judge. he faces nearly 200 charges for the shooting which left three people dead. >>> britn's prime minister is getting involved after a family's trip to the u.s. that included disneyland was spoiled allegedly by homeland security. the british family, two brothers and their nine children, were stopped at the airport's departure gate. they say they were the only muslim-looking people online for the flight from the uk to los angeles. >> we actually felt humiliated, alienated because the way they were dealt with was just out of the ordinary. >> the family will not get a refund of their more than $13,000 in airfare and other bookings. u.s. officials say they were not denied entry into this country because they are muslim. the british government is demanding an explanation. >>> the race for presidency, a controversial political cartoon drew a sharp reaction from republican ted cruz. take a look at the cartoon. grinder dressed as santa, and his daughters as dancing monkeys. cruz saying yesterday "don't mess with my k kids, don mess with anybody's kids." abc's jonathan karl reports. >> please read this one, daddy. >> reporter: in an "snl" style parody produced by his campaign, senator ted cruz reads conservative christmas stories with his famil his young daughters, catherine and caroline, join in. >> the whole family will enjoying reading stories like "the grinch who lost her e-mails." >> i know just what i'll do, she said with snicker, i will use my own server and no one will be the wiser. >> reporter: the ad prompted "theashington post" to run a political cartoon depicting cruz's daughters as trained monkeys. >> not much ticks me off. but making fun of my girls, that will do it. it's not complicated, don't make fun of a 5-year-old girl and a 7-year-old girl. >> reporter: cruz and his gop challengers agree on this one. >> this is off-limits, and ted cruz was absolutely right to be outraged. >> reporter: donald trump called called it "disgusting." the cartoonist was unapologetic, tweeting, "ted cruz has put his children in a political ad. don't start screaming when the editorial cartoonists draw them, as well." >> dear jesus, thank you for the food -- >> reporter: long before the christmas ad, the cruz campaign poed extensive video of the kids for future campaign ads. >> i'm ted cruz -- >> and we approve this message. >> reporter: and kids are often featured in campaigns. for example, this obama campaign video from 2012, which prompted no such political cartoon. "the post" eventually took the cruz cartoon down. the editorial page editor explaining, "post policy is usually to leave the children out of it," acknowledging they should have done that this time. cruz is now using the cartoon to raise money. "i'm sickened," he writes to supporters. "this shows you exactly how desperate the liberal media is to attack and destroy me and my family." cruz has also offered up his own what he calls hillary clton and her lap dogs, "the washington post" and "new york times." jonathan karl, abc news, washington. >> got to love presidential politics. don'tt you? well, the twin birth rate hit an all-time high last year in the u.s. one in about 29 babies was a twin last t year. in 1980, only one in 53 babies was a twin. the e increaseay be due to women waiting longer to start families. in the meantime, the birth rates for teenagers dropped 9% from 2013 to 2014. >>> that's interesting, the grandparents took the kids to the museumoday. my mother-in-law was saying how they noticed so many sets of twins, brothers and sisters or sisters and sisters. >> we all love twins. >> we do. speaking of twins, voters in one east texas county may do a double take in the re for sheriff. >> people say all politicians look alike. that's literally the case here. identical twins harry and barry washington are running for the office. barry started as a teacher and a coach, then became a texas he was joined in law enforcement a few years later by his brother. >> and despite their differences, barry says we're going to be biological brothers to the end of the world and we're going to be spiritual brothers forever. >> yeah, that's interesting they are running against each other but they do have others that are in the race, twtwo othershat are running. a total of four candidates. >> i just vote for them because they have nice cowboy hats. >> wonder who mom would vote for. >> i bet mom stays home. i bet mom stays home. >>> coming up in "the skinny," a big moment for beatles fans. they've been waiting for this for years. >> also ahead, waiting till the very last minute for holiday bargains. we're taking you into an iconic new york department store to showou t early morning procrastinnaters. >> but first, a consumer alert about gift cards. how thieves could make the next gift card you buy absolutely worthless. you're watching "world news now." >> announcer: "world news now" mucinex sinus max. brought to you by mucinex sinus max. enenough preure in here for yaya? ugh. my sinuses are killing me. yeah...just wait 'til we hit ten thousand feet. i'm gonna take mucinex sinus-max. too late, we're about to take off. these dissolve fast. they're new liquid gels. and you're coming with me... wait, what?! you realize i have gold status? do i still get the miles? new mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine. start the relief. ditch the misery. let's end this. olay regenerist renews from within, umping surface cells for a dramatic transformation without the need for fillers with olay, you age less so you can be ageless i asked my dentist if an electric toothbrush was going to clean better than a manual? he said sure. but don't get just any one. get one inspired by dentists. with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque a rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean. oral-b know you're getting a superior clean. 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"so it doesn't sag and stays dryer" "so wiggle it" "jiggle it" "and do, whatever that is, in new pampers cruisers" >>> well, you can now add hyatt hotels to the growing list of companies hit by hackers. it's investigating malware found on computers used to process customers' payments. guests are advised to review credit card statements. the data breach only affected hotels maged by hyatt and not franchise locations. >> the embattled chipotle restaurant chain is trying to move beyond the recent outbreak of illness. it's changing some of its cooking methods to better kill germs. more than 50 customers came dodown th e. coli in the chipotle near boston college will reopen today after passing an inspection. with norovirus. >> with limited options for last minute christmas presents, gift cards are an easy option. >> although you can't give your son that. >> no, no, struggling with my son. we need to find a salvage rescue bot. >> throw it out to the university. >> let me know where i can find one, fol. >> you can now buy many giftft cards mostly anywhere. that can be a problem since thieves are targeting the cards, robbing their value. abc's mara schiavocampo with more. >> reporter: gift cards at the top of many a wish list. shoppers expected to spend almost $26 billion on these cash cards. >> i think they're a great clutch gift to give anybody. >> the easier choice. so you don't disappoint anybody. >> reporter: but experts warn these holiday favorites could come with a risk. >> gift cards are absolutely vulnerable to scammers. there are lots of different ways that nefarious people can geget their hands on the cards and on your money. >> reporter: part of the problem? cas can be as easy to use as requiring no i.d., pin number, or signature making them vy alluring targets for scammers. here's how it works. before you buy the card, thieves cacopy its information, sometimes using handheld skimmers, later stealing the card's value. so, experts say, look for tampered packaging, especially at the scratchoff area in the back. use the card right away. register your card. and be sure to use a reputable site if you're thinking of trading in unwanted gift cards on an online exchange. >> the safest way to buy cards is online or from a locked drawer in the store. >> reporter: ensuring a holiday scam doesn't leave you saying bah humbug. mara schiavocampo, abc news,ew york. >> all right. coming up, the singing superstar trying to get her son to come home for christmas. >> and sir paul's message to fans as the beatle music goes live for streaming. "the skinny" up next. >> announcer: "world news now" continues after this from our abc stations. adjusting to the civilian world may have... certain... issues. 2... 30... 70... if only everyone had this issue. no matter what challenge they face, easter seals is here skinny, so skinny >>> the big mystery on january can't wait. leading "the skinny," the material girl like many parents having some trouble withler teenage child. >> madonna was in a manhattan court yesterday and won a court order forcing he15-year-old son to return home to the u.s. from lonn. according to numerous reports, madonna is in a custody bat with her ex-husband, british filmmaker guy richie and their son rocco apparently wants to live with daddy. >> the judge told richie's lawyer if the child wants to stay with his father, he must return to his mother first. >> look at him. he's all grown up. >> he's now 15 years old. >> where did the time go? >> i know, we're old. >> i wouldn't mess with madonna. not because she's madonna but because she's mama. she's working that gown there. all righty. >>> there has en an answer. let it stream. a huge musical milestone, the beatles music now available for streaming worldwide. >> for many, thehe biggestusical stars on the planet like taylor been contentious. now arguably the bigst band ever is on board. >> no argument there. >> through services like spotify, apple music, rhapsody, title and others fans can listen to 17 beatles albums on demand. to celebrate last night sir paul here tweeting out this message wishing everyone a very happy crimbo and a peaceful new yearar. the new song is going to released we're streaming, yeah, yeah, yea