but it needs to be approached system by system. allbee: let's frame the systems in terms of the proper context. we have around 16,000 wastewater systems. we don't have a single wastewater system -- we have 16,000 of them. we have about 54,000 drinking water systems. narrator: issues facing new york city are very different from those in los angeles. and challenges facing small towns are very different from those in metropolitan areas. man: we have to have water supply for health purposes, for fire protection, and the economy. without it, things simply can't exist. woman: we have good health in this country, in part, because we have clean water. and we shouldn't forget that, and we shouldn't take it for granted. melosi: in the late 19th century, serious waterborne disease epidemics were having devastating effects. roy: but then, in the early 1900s, we began to treat our water. and since then, we've seen a rapid decline in the incidence of waterborne disease. narrator: most cities treat drinking water through filtration, chlorination,

, fire alarm systems, architectural elements of the building, mechanical systems -- and they require a lot of coordination between the various trades and making sure that all these various systems of comply with the smoke control report. this document will give guidance to designers to know what is required for these of middle and approval of these systems. -- for the submittal and approval of the systems. commissioner lee: any other questions? public comment? -- commissioner hechanova: other questions? public comment? >> seeing that, item nine -- >> do we need to approve? i move to approve administrative bulletins or support or whatever the language is, both 7 and 8. commissioner murphy: second. commissioner hechanova: the motion has been moved and seconded. commissioner walker: yes. commissioner lee: yes. commissioner mar: yes. commissioner murphy: yes. commissioner clinch: yes. >> the motion passes. item nine, directors report. 9a, update on dbi's finances. >> pamela levin. there is not any real remarkable difference between our projection from last month to this month. the revenu

it costs money to operate these systems. there's a need to continually invest in these systems. there's going to be new regulations. it's all going to cost money. allbee: for all practical purposes, people are going to have to pay about twice as much for these services as they currently do. because a lot of the pipe that went in, a lot of the plants that went in, went in with very sizable portions of federal grant money, mechanisms that are no longer in place. narrator: without grants, utilities often turn to the bond market to pay for large capital improvements. and although the loan is often spread of a 20- to 30-year period, user rates will increase to pay down the debt. woman: until a community accepts the willingness to pay for what they use, they won't have that money that they need to replace this failing infrastructure and improve their treatment plants so they can meet regulations and population growth. elected officials have to have enormous courage to be able to raise rates, to go out for bond levies, to deal with a situation that most people don't even see. it flushe

with managing all the systems. additionally, not only are we saving money by going to the new system, we're actually really gaining significant capabilities. we are, again, leapfrogging to a newer version of the technology that much more easily integrated into where we're going from a technology vision for the future and frankly the thing i see as the c.i.o. for the city that we're really cognizant of it creates disaster resilient solution to a challenge we face in the city that's not easy to address. typically in cities we are able to budget for maintaining the system we have from the premise-based system but the disaster solution for systems tends to be not as up to date or as disaster ready as we like. by going to a cloud-based solution like the online exchange solution, even if we have a large disaster in san francisco, we like to know that our emails are protected, our data is protected, that our users will be able to access and continue to use email at anywhere in the world at anytime which we think is a sign

is it all one system? >> the bottom floor feeds into the fifth floor, and the fourth floor is separate, right? no, the first floor controls -- you can go into the first floor and get a ticket for any floor, whether it is the first floor, the fourth floor, or the fifth floor right now. those are the only floors on the schematic system. you can go to the fifth floor and get a ticket. the fourth floor you have to go to the first floor to get a ticket. the software is multitasking, based on each floor, but it is integrated, so the processes have to be integrated across the department, and that has been part of our problem, getting people to be able to get a ticket on the first floor and being able to go to the fifth floor with enough time and going to the right station and knowing what station they need to go to. that was a problem at first. in the meantime, we have more staff come up to the fifth floor, so we had to add in the fourth floor, which was records when we move records over, and we had to add more s

as the shadow banking system grew, our system failed to require real transparency, sufficient capital or meaningful oversight. rapid growth in key markets often hid misaligned incentives and underlying risk. financial innovation outpeaced the capacity -- outpaced the capacity of regulators and markets to understand these risks and to adjust. and throughout our system we had increasingly inadequate capital buffers as both market participants and regulators failed to account for the new risks appropriately. short-term rewards in if new financial products and rapidly-growing markets overwhelmed or blinded private sector gatekeepers and swamped those parts of the system that were supposed to mitigate risk. consumer investor protections were weakened, and households took on risks that they did not fully understand and could ill afford. rising home and asset prices had helped to feed the financial system's rapid growth, and a high declining underwriting standards and other underlying problems in the origination and securitization in particular of mortgage loans. when home prices began to fl

this is not the system we had prior to the crisis.as we debate needed improvements there is much discussion of how financial reform will affect the competitiveness of the u.s. economy. u.s. economic competitiveness is a broad concept in which industry competitiveness is only one part. short-term profitability of financial institutions should not be confused with international competitiveness. many regulatory gaps and lapses which occurred 3 crisis as a way to strengthen our international competitive position. we discovered sacrificing safety and soundness in the name of global competition made both financial institutions and the broader economy. a prime example is capital regulation in the pre crisis years which gave undue weight to the desire of financial institutions to boost return on equity with leverage, capital requirements repeatedly and materially weakened in the pre crisis years. as a direct result large financial institutions steadily increase to the point where capital was inadequate and during the crisis. insufficient capi

to be a part of a healthy san francisco's system? >> there is a class of as needed employees that are a part of the san francisco health plan. so, yes. the answer is yes. they become eligible when they have worked 40 hours. the director of the department of health and human resources, we actually did an analysis of what it would cost to bring them in. because of the services provided with an hmo being much broader, it would be more expensive than what was budgeted for. the good thing about that is that those tend to be younger employees. the risk adjustment, and we are all about bringing in younger people to lower the risk pool. supervisor mirkarimi: thank you. >> thank you, a supervisor. >> as both of the comptroller and a budget analyst has reported this year, the budget will increase by 4.5%. $283,000 more than the original budget. totaling $71,981, 100% our general fund reductions. still allowing the increase in the department. we will be happy to work with of the department. supervisor chu: thank you very much. we will see you b

then, for the parallel systems projects that are going forward to replace systems and bring them into central control, which will also replace systems in the subways, is 82,000,567 $261, so the aggregate cost is $150 million. >> so if i were to compare between the current proposal compared to the transbay, the $129 million or $172 million you spoke about earlier -- is that for the capital component? >> yes. >> so the comparisons for 32 million -- >> compare that to the $129 million. supervisor kim: just a follow-up on that, when you look at that long term with rental payments, is it really more expensive? >> transbay woul

fix it -- how you fix this system. the district middle school and k-8 plan is reasonable, and this is a long time to lose momentum. if you are going to do it, why delay the implementation? [cheers and applause] . >> hi, my name is lisa, and i am the parent of an elementary school student. for parents to choose to stay in san francisco and pinchot's public over a private placement, i was very pleased to wind up at lafayette, where two years i have been very involved in the community. my daughter feels supported by not only the teachers and administrators and parents, but i feel supported by those parents, as well, and i look forward to moving into a school together where we can use our combined strength to continue to make that middle school better, and i am a strong proponent of the k-8 feeder. [applause] >> hello, my name is lisa. i am also a parent at lafayette. i in a huge proponent for all of the public schools, and i am now kind of eating my words due to this year's problem with the placement, and i think it was a

even on the two-tiered system. i want to read something about the supplemental that is in the language that did not hear coming from mickey callahan. the safety of the of the system being in poor shape, it is the second best funded in the united states. and, of course, we want to keep it that way. the city now has to contribute more. and at one point, they were contributing anything because of the investments. our investments are bad, and i want to say this thing about the supplemental. this change for current employees, people that are hired in terms of the actuarial value related to the supplement is going to impact much more on people that are receiving between 20 and 27,000 a year. i cannot get the figures from the retirement system. but there are thousands of people that won't get the supplemental right now. they're not getting 46,000. they are getting below 27. without the supplemental, they will be in the toilet. supervisor campos: next speaker. >> i am the executive secretary of the police officers associat

the new system. there's something interesting i've read. the house defense bill and it funds and mandated to administration to conduct a study on the technical and operational feasibility of space based interceptors that's from one of the papers here space based interceptors that sounds an awful lot like reagan's. plans which the american physical society concluded was a hoax but nonetheless billions of dollars are spent on research he says that the current myself defense program also could turn into a hole where money goes and disappears despite what the scientists are saying well space based defense has been proven to be knocked feasible idea because you would need so many interceptors and these would be in orbit now people have an idea that things are stationary in orbit they're not in low earth orbit they're moving very fast so they're not over any one region for very long and the consequence of that is that you need many many many interceptors and for instance a whole you can create a hole in the defenses by just shooting a prior missi

that is to restore a more stable financial system, not a system of would be without crisis because we always will but one that is more stable as we enter and exit the crisis. i want to start by pointing out that i take this because the united states has been one of the most successful economies in history as an economy as the creation it has been able to provide us and that is because it has been mostly over its history bound by the rules of capitalism which does in fact reward success, but also it compels the participants in the market to play by open rules, to have a market that is a tree in the sense of transactions, and compelled to fail when in fact they make poor decisions. that keeps it efficient and a vibrant and renewed and that is in that way how we in a more objective way allocate credit in this country to the most valued endeavors that have made this country great and build the wealth. now i think it's very important that when all history has done this we have changed. in fact, as recently as 1980 in this country we still at 14,000 financial the institutions competing acro

retirement system? >> item #one. annual salary ordinance enumerating positions in the annual budget and appropriation ordinance for the fy ending june 30, 2012; fy ending june 30, 2013, for the airport, port commission, and the public utilities commission; and continuing, creating or establishing these positions; enumerating and including therein all positions created by charter or state law for which compensations are paid from city and county funds and appropriation ordinance; authorizing appointments or continuation of appointments thereto; specifying and fixing the compensations and work authorizing appointments to temporary positions and fixing compensations therefore. item #two. consolidated budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures of the city and county of san francisco for the fy ending june 30, 2012; and for fys ending june 30, 2012, and june 30, 2013, for the airport, port commission and public utilities commission. supervisor chu: we will

as a system. even if we do not manage it line by line, each line has issues were quirks, that at the end of the day, once the k-t line goes into the ferry portal it is integrated into the system so that if there is a subway delay, everything is impacted. we do make some adjustments for individual circumstances, but we have to manage it has all whole system -- a whole system. supervisor cohen: that is exactly what i am trying to do, understand the whole system. who is performing best, and was performing worse? i understand there are special conditions that factor into why one line should be more slow or efficient than another. i get that. ok. >> can i just add, from a traffic perspective, looking at los angeles, where the bus riders union, labor unions will get lines throughout the southern california area, they found the lowest in come neighborhoods are the least served. domestic workers and others had to wait much, much longer than middle-class people in san fernandez valley and other places. my

system size. i don't want to into details on that i want to make sure you get the right -- that's the only area of confusion that i have seen on bids that can affect the sales part of it. so first off, i want you to get the full price. that means the maximum you'll be charged. that includes any additional things that they may charge you because you have a difficult roof or steeply pitched roof or concrete tile or whatever they might see. you get that full price. that's before rebate, before tax credit. then you take the system size in cec, california energy commission a.c. watts. that term is understood by the people in the industry. that means they use the c.e.c. ratings to determine the a.c. wattage. you get the per watt price. you divide this by this. you get the price per a.c. watt. you want to ask about permit fees as well. each city typically will charge fees. now those fees are coming down and we're working very hard to get them standardized and clear. there is some cost. sometimes the inst

that is to restore a more stable financial system, not a system of would be without crisis because we always will but one that is more stable as we enter and exit the crisis. i want to start by pointing out that i take this because the united states has been one of the most successful economies in history as an economy as the creation it has been able to provide us and that is because it has been mostly over its history bound by the rules of capitalism which does in fact reward success, but also it compels the participants in the market to play by open rules, to have a market that is a tree in the sense of transactions, and compelled to fail when in fact they make poor decisions. that keeps it efficient and a vibrant and renewed and that is in that way how we in a more objective way allocate credit in this country to the most valued endeavors that have made this country great and build the wealth. now i think it's very important that when all history has done this we have changed. in fact, as recently as 1980 in this country we still at 14,000 financial the institutions competing acro

to expand existing systems. narrator: because original infrastructure investments were frequently subsidized by the federal government, water pricing was often calculated without accounting for the initial cost to build the systems. we made major investments in assets in the '50s, '60s, and '70s. and for the first 40 years of that pipe, there really may not have been many maintenance requirements. we're past that period now. narrator: water pricing based only on day-to-day operation, and not on planning for maintenance and eventual upgrades has resulted in a considerable repair and replacement backlog. allbee: on a national scale, if you looked at what we're spending now, and you looked at the additional investment requirements over the next 20 years, there's a $540 billion difference. man: so one of the greatest challenges is to reflect true value pricing. so that the citizens and businesses that rely on water and wastewater infrastructure systems are actually paying for it. narrator: cities and municipalities

metope -- system? the president said you were strongly involved? >> we have -- a sorry -- we -- there are a few more people to train who have been extremely busy on their other duties. we have to free them up and train a few more people. we have the staff that we are hiring to be involved and we have been waiting to have the staff by an order to do the actual implementation. to be able to train everyone. >> monitoring 1 and 5, will there be an old source? >> there is one on the fourth floor, for records. in the far future or the long future, the intent would be to have them on the other floors. those were the main floors where we had individuals coming in. >> even with all of the different departments, can we handle code information for housing, building, fire? dsm? cashiers? it will be a nightmare trying to get this to work. the dmv, you go to the dmv and it works perfectly. people go and get their driver's license and registration. two things. this is going to be an entirely this facility. >> we have

we are a people oriented system. other things like mailing out newsletters and checks to the numbers. one thing, just to show you that we are small and running lean, 65% of the budget is personnel costs. within the overall city budget you can see how lean and small these numbers are. i would like to conclude by touching on the five-year financial outlook. i know that it is becoming new and important to the city and it is not something that the system itself has done before. i have listed five areas fat i think will require significant attention from the system -- areas that i think will require significant attention from the system. we have general demands and a need for additional space to accommodate members services. we are in the process of implementation in terms of moving from a one year business plan to long-term strategic plan outlook. like every other business entity in the world, we need to continue to update i.t. equipment to speed and security purposes. we are transitioning member services model. right no

this new plan depends on putting a system to decontaminate highly radioactive water into the system. >> now how effective is this plan? i spoke to our reporter earlier. >> translator: you have a revised target date of a cold shutdown? >> translator: with the operations proceeding as planned, it is too early to say. the road map is constructed upon the assumption that the coaminated water treatment system should function without a hitch. the trial operations have been plagued with a series of troubles. the operation was delayed again because of the leakage of the tainted water on thursday. the new system is the first of its kind in the world and is a combination of the technology of many countries, including japan, france and the united states. the operators should deal with the system. furthermore, they have been treating low contamination waste water so far. when the pool operation starts, the concentration is expected to be 10,000 times higher which will definitely be more difficult to handle in case of troubles. the operators should be informed during the measures. sharing essenti

the law is i mean this is the beginning of all law because it doesn't mention the shadow banking system as it was described by former prime minister gordon brown when he says that the effects are minimal he's talking about the effects of what these banks report to regulators as being a fair balance sheet but we know now going back to two thousand and eight that they simply don't report trillions of dollars of liabilities on their balance sheet and then when these blow up they claim that the market did it we had no idea and bernanke knows this that's why bernanke at the end of the day because he's sheltering financial terrorists he should be water boarded i mean he actually says there they even looking at the hedges this. would be a small negligible impact of greece defaulting but we know from the bank of international settlements recent release that there's one hundred fifty nine billion in credit default swaps written by u.s. banks against the european sovereign debt holdings of greece ireland and spain and portugal so it's a good thing he's lying when he makes that statement in front

as well as the generation system, a transmission system are sources of vulnerability. i think we really need to focus on the entirety of the problem and recognize how much the threat has been increasing over time. the reason i say that we need mandatory standards is that frankly the current system's just too slow. it doesn't work quickly. it hasn't satisfied the problem. in fact, if you look at nerc's own study last year, said very clearly that the grid is at risk against an adversary. if we think about other areas, clean air, water, safety standards, the federal government issues the standards. i think that's the way we ought to do it. in addition, i think that the current act that the discussion aft has what's called authority for the ferc of a so-called imminent threat. but i think imminent is too late often. what we really need is if we see a significant threat where one needs to be able to take prompt action before we get to that micro second before the attack occurs, the federal government ought to have that authority. so the issue interim standards, but earlier

but distribution systems. as i said, it's my understanding that because distribution is not dealt with in the bill, that areas like washington, d.c., and new york would be left out of the intent and hopefully the coverage that this legislation would provide. protection it would provide to our electric grid. so i'd encourage the committee to look further at that issue. >> congressman franks, do you have any suggestions along the same lines? >> well, i think that congressman langevin has it absolutely right. i know we have pictures of new york and washington but we want to keep them around for a while. i think that's wise to extend that to the transmission lines. again, my focus is to try to focus as narrowly as i can on maintaining the base electric grid. because if that goes down, our cyber security issues are no longer an issue because we don't have computer systems, we don't have the electric to run them. and it might behoove the committee to consider a possibility of sending the grid act over as it is and,

tokyo electric power company has been testing a system to decontaminate the water. if it works, tepco plans to recycle the filtered water back into the reactors to keep them from overheating, but the company's been facing unexpected problems. tepco tried running the decontamination system last friday but after five hours, it was forced to halt the process because of a sharp rise in radiation levels around the u.s. made equipment for absorbing radioactive cesium. then on tuesday tepco began another test run that had to be halted. this time a pump that sends water into french made decontamination equipment shut down automatically. >> translator: the system has been proven to decontaminate water, and it will be successful. >> tepco is under pressure to get the decontamination system working. facilities to store radioactive water at fukushima daiichi will soon reach capacity and could overflow. >>> earlier michio kijima spoke to nhk world's commentator noriuki mizuno. mr. mizuno, why is it so difficulto run the decontamination system in a stable manner? >> translator: t

that's the cost model for the retirement system. we look at taking every year of service demonstrated from the drop. over 30 months, there has been approximately 169 drop officers with an average of 12 months of services. over 30 months, if you look at the record and training and benefit costs that are deferred, we calculate that to be $55,100 per deferred year. if you assume every year served in the drop was an actual credit and deferred cost savings to the city, take those 68 times 55,000, you come to 3.7 $5 million in savings to the city. -- $3.7 5 million in savings to the city. the cost is significantly larger -- significantly larger. we made the finding, it is summarized in the front of our report that as of this time, the program is not demonstrating its cost neutrality admonition that was in the original charter amendment. gary will speak to some of the more recent demographics we have mentioned. those are the summary findings and i will leave it to them to walk you through this and areas bst to model that got us there. >> w

a russian system and a nato system corporator for instance by exchanging data the whole system would be called much more effective that way for the benefit of the russian population and population nato countries you do understand that it sounds a little bit of a contradiction there you talk about joint trust about a mutual threat and then about separate systems why want one system between nato and russia be acceptable to protect both sides from any kind of threat because i don't think at the end of the day. the russian government and the russian people would accept to be shopped to a common command. i think. the russian nation has such would insist on having control of its own missile defense system and this is the reason why the most realistic approach would be to have two independent systems but with a common purpose but this is particularly our populations now mr rasmussen has been proposing a joint european defense system which is. and i think the best way to join efforts would be to relay to independent systems cooperate there with the aim to protect the russian people as well a

to systemic shocks.any comments on that? >> i had seen, i had seen some of andy's papers actually contrasting differences between european and u.s. institutions because we had a leverage requirement, and they didn't. there were some other -- so i guess i've been a little bit more aware of how some of the differences have motivated behavior and how each of them have tried to get around some of the constraints that they've had due to sort of national legislation. >> [inaudible] >> um, you know, i think basel ii was slightly better than basel i, but basel ii was a disaster. [laughter] basel iii, i think, is just inadequate. so, i mean, i don't think it's going to be quite as -- i think the principles are sort of better. i mean, so are we progressing? i suppose. but it's not something that generates great, great enthusiasm. in contrast, i actually think all things considered dodd-frank was very good. so, you know, i give dodd-frank better marks than i expected when the whole process started. i thought it wou

then, for the parallel systems projects that are going forward to replace systems and bring them into central control, which will also replace systems in the subways, is 82,000,567 $261, so the aggregate cost is $150 million. >> so if i were to compare between the current proposal compared to the transbay, the $129 million or $172 million you spoke about earlier -- is that for the capital component? >> yes. >> so the comparisons for 32 million -- >> compare that to the $129 million. supervisor kim: just a follow-up on that, when you look at that long term with rental payments, is it really more expensive? >> transbay would have rental payments as well. we do not know what those would be at this time. we had a site tentatively identified. we have been in very preliminary talks with transbay, but that space in the terminal has since been reallocated to other uses since the separation of the two planning have, so if we were in the future to go back to transbay,would have to be identified. we are not sure that there is appropriate space, and we would have to renegotiate. we did not know w

this is not the system we had prior to the crisis. as we debate the needed improvements, there's much discretion as there should be about how financial reforms impact the overall effectiveness of the u.s. economy. competitiveness is a broad concept of which financial industry competitiveness is one part. the short term profitability of financial institutions should not be confused. many of the lapses that occurred as a way to strengthen our position, but what we discovered was sacrificing safety and soundness for global competition made both the financial institutions themselves and the broader economy worse off. a prime example is capital regulation during the precrisis years gave undue weight to the desire of financial institutions to reduce and capital requirements were weakened in the precrisis years. as a direct result, institutions increased to the point with capital was inadequate entering the crisis. insufficient capital skews incentives. shareholders reap the upside, but the costs are born by the broader economy. we are still