. >> good afternoon, this is steve ritchie assistant general management for water. this is the water supply development report. this is a report we produce annually. the primary issue of this report status of making san jose santa clara permanent customers. first is a bit of background. san jose and santa clara requested to become temporary customers around 1970. the rest of the customers were well established already. there was litigation in the mid-'70s that resulted in settlement in the mid-'80s. san jose and santa clara were not included within the supply assurance at that time as they were temporary customers. that was an opportunity where they would have been made permanent but they were not. fast forward, the 2009 water supply agreement provided for san francisco to make a decision regarding permanent status for san jose and santa clara by 2018 or to issue a conditional 10-year notice of interruption or reduction in supply of water to the cities. we've been introducing the annual water supply development report since then. as noted, we continue to recommend t

. >> good afternoon, this is steve ritchie assistant general management for water. this is the water supply development report. this is a report we produce annually. the primary issue of this report status of making san jose santa clara permanent customers. first is a bit of background. san jose and santa clara requested to become temporary customers around 1970. the rest of the customers were well established already. there was litigation in the mid-'70s that resulted in settlement in the mid-'80s. san jose and santa clara were not included within the supply assurance at that time as they were temporary customers. that was an opportunity where they would have been made permanent but they were not. fast forward, the 2009 water supply agreement provided for san francisco to make a decision regarding permanent status for san jose and santa clara by 2018 or to issue a conditional 10-year notice of interruption or reduction in supply of water to the cities. we've been introducing the annual water supply development report since then. as noted, we continue to recommend t

what you will get from steve ritchie is capital plan that is large and complex. have a very broad series of infrastructure that spans several counties that requires attention over the next ten years. that's what you will hear from him. we typically don't spend lot of time speaking to the commission around funding, how we pay for it. typically the answer to that is revenue bond. we will issue debts and raise rates to cover that. the focus is on the spending side. everything that we teed up for you today is following that same framework. we're talking about what the infrastructure needs of the agency are. the difference is that we are not just raising rates to cover the needs. we are needing to suggest that a prioritization is required here. in the capital plans before you, subsequent to today, we will be looking at what's the priority in terms of deliverability. again, if the infrastructure team has 100 engineers, they need 150 engineers, we have two choices. we can hire more engineers to cover the what's being proposed and issue debt to pay for it. or, we work mo

what you will get from steve ritchie is capital plan that is large and complex. we have a very broad series of infrastructure that spans several counties that requires attention over the next ten years. that's what you will hear from him. we typically don't spend lot of time speaking to the commission around funding, how we pay for it. typically the answer to that is revenue bond. we will issue debts and raise rates to cover that. the focus is on the spending side. everything that we teed up for you today is following that same framework. we're talking about what the infrastructure needs of the agency are. the difference is that we are not just raising rates to cover the needs. we are needing to suggest that a prioritization is required here. in the capital plans before you, subsequent to today, we will be looking at what's the priority in terms of deliverability. again, if the infrastructure team has 100 engineers, they need 150 engineers, we have two choices. we can hire more engineers to cover the what's being proposed and issue debt to pay for it. or, we work

what you will get from steve ritchie is capital plan that is large and complex. we have a very broad series of infrastructure that spans several counties that requires attention over the next ten years. that's what you will hear from him. we typically don't spend lot of time speaking to the commission around funding, how we pay for it. typically the answer to that is revenue bond. we will issue debts and raise rates to cover that. the focus is on the spending side. everything that we teed up for you today is following that same framework. we're talking about what the infrastructure needs of the agency are. the difference is that we are not just raising rates to cover the needs. we are needing to suggest that a prioritization is required here. in the capital plans before you, subsequent to today, we will be looking at what's the priority in terms of deliverability. again, if the infrastructure team has 100 engineers, they need 150 engineers, we have two choices. we can hire more engineers to cover the what's being proposed and issue debt to pay for it. or, we work

next week we have a presentation by steve ritchie for the water enterprise as well as the hetchy watert and then wastewater by greg norby. on the 20th, the week after, we have all things power, including clean power. we do have a fourth meeting scheduled if we need it if any run long, on january 27, we have more than enough time to go through the details if needed. we won't hold that meeting if we take everything on the 20th, but it's there as an f.y.i. and approval on the 28th. so at this time i would like to, first of all, just please as a reminder please ask questions as we walk through this. we will of course try to answer your questions as quickly as we can. we plan to create a questions document that will be updated each meeting and we will provide that as an additional document to not only you but the public as well. we will include this q&a tracker as part of the budget approval in february as well. i'm happy to take any questions on context at this time, and if not i'm happy to pass the presentation back to laura to begin reviewing of our operating budget. i'll pause here. >>

next week we have a presentation by steve ritchie for the water enterprise as well as the hetchy water budget and then wastewater by greg norby. on the 20th, the week after, we have all things power, including clean power. we do have a fourth meeting scheduled if we need it if any run long, on january 27, we have more than enough time to go through the details if needed. we won't hold that meeting if we take everything on the 20th, but it's there as an f.y.i. and approval on the 28th. so at this time i would like to, first of all, just please as a reminder please ask questions as we walk through this. we will of course try to answer your questions as quickly as we can. we plan to create a questions document that will be updated each meeting and we will provide that as an additional document to not only you but the public as well. we will include this q&a tracker as part of the budget approval in february as well. i'm happy to take any questions on context at this time, and if not i'm happy to pass the presentation back to laura to begin reviewing of our operating budget. i'll pause her