president vietor: you just said 55 inches by 2100. we are anticipating a minimum of a 55-inch sea level rise. and 36-inches -- you are going to raise the development by 16 inches? >> right. the ability then is to adjust the perimeter of the islands to protect ourselves from additional sea level rise beyond 36 inches. it will also create a funding mechanism to generate money over time to pay for that construction as it is needed in 50 or 100 years. president vietor: why wouldn't we do that now? >> it is an adaptive strategy. the predictions are an upper scale up sea level -- of sea level rising, and it does not fit that s -- curve. commissioner torres: this is over 100 years? >> this is over 100 years. it gives us the ability to adjust and to generate the funds to just over time. president vietor: and that is all factored into the budget and in 100-year plan? >> correct. >> do you make today's residents pay for it forever? you are asking to pay for a reasonable future, but then they pay for it as it continues to grow. >> pc level rise

president vietor: other public comment? >> i was not planning unspeaking, so i did not turn in a card. on the way to the office, i drove through the canyon because it is such a beautiful area. it is devastating what they are doing there. it is terrible. i did not realize there was a connection to sfpuc. you guys are real model. there is the adaptive management plan, it is going to be fine for water availability and will be greater for the environment. we battled them in the '90s over the tunnel. they fought us every step of the way. they were not responsive, it is bureaucracy out of control. i was hoping things had changed by the out. what is going on is outrageous. i am glad to see commissioners concerned about it. i know our organization wants to work with the alliance and others to make sure that they are accountable. thank you for listening. president vietor: if it is appropriate for the spot to take some kind of action, let us know. we need to get all of that history and get them in line, if you will. any other public

president vietor: thank you. >> recycled water? >> to recycled water system -- the recycled water system. we will be building a new recycled water system for the island. it will be constructed by the waste water treatment plant. we will not be in stalling on yvi, because there is not that much demand on yvi as compared to the rest of the development. tri-utility systems. the whole system will be replaced over time. the navy system has to be maintained by the puc from oakland. then, it is picked up by the navy through the port of oakland property of the island. that will be transferred, just like the island, once the navy transfer occurs, and then to the puc and other power providers. >> ok. president vietor: are we going to have a decision at some point as to whether to take this on? when would that come before us? >> the timing of that -- >> prior to approval, we would pause for the feasibility study to be done, code 99. prior to the formal approval. next month. >> it is our working assumption that you would want us to propose to

president vietor: commissioner courtney? commissioner courtney: if it is not too much trouble, could you repeat the jobs data? what classification would you consider them to be -- whether they are construction jobs or retail jobs or just general maintenance jobs? >> sure. the first component would be construction jobs through the buildup of the development program over 20 years, and that is anticipated to be 2000 annual jobs in construction trades, various trades, starting first with infrastructure, and in typical trades we would think of as building trades, we would think of as it relates to building development. i do not have specific answers on the full-time jobs or the permanent jobs, but they would be comprised of maintenance jobs for the parks and open space. they would be common area maintenance jobs for the hoa. retail component, the hotel jobs, that sort of job sector. we have also cleared up to 100,000 square feet of commercial office. that is not currently a component of the program, but we have given ourselves th

president vietor: that's good news. thank you. >> other items of interest we thought we would list on the calendar. first, solar installation work update. there have been questions about the different projects on hold or not. >> thank you. as you know, we have had one project that was a bit and not awarded which has been in a bed of limbo. that is the project to put solar on the roof at city hall and solar on the roof at davies symphony hall. we put that out as one big item. the work in wages is subject to regulation and oversight by the california department of industrial relations and subdivisions within that department. specifically, division of apprenticeship standards and the division of labor statistics and research. the division of apprenticeship standards recently released new apprenticeships guidelines that recognize a new occupation fatah vo-tech installer as a craft and new apprenticeships opportunity. that was announced last week and we have been trying to collect information and better understand how it aff

president vietor: public comment? >> there is none. the commission, having received at electronic -- if you have a comment on those -- and request regarding the calendar or staffer written reports submitted to the commissioners? vice president moran: i notice the next update is july 26th. i was wondering whether that is -- whether there are decisions that need to be made? >> we will be adding additional updates. we're still waiting for the full calendar to be put together. that was a place holder from the past. we will be adding more. president vietor: i understand there has been a change in that chair? >> the new chair is supervisor campos. president vietor: i imagine there'll be a change in that in the next month or two. >> and there is a change in the environmental surcharge. this is one of those issues where it helps to have an introductory session and immediately before that -- just a question that that somehow be accomplished. there are several pending questions that seem to fall off the charts. they were around -- and technology

president vietor: thank you. questions? comments? mr. jensen. >> art jensen, think you, commissioners. let me start by saying that this is a delicate issue to address. the agency's of a wholesale basis, there are different opinions from time to time. they have certain things in common. the also desire or require certainty. they also issue bonds. they are rated by the same agencies as yours. they have a desire for the same kind of certainty that the puc does. a study mentioned, that reflects a potentially is more if your rates are increasing at your end. one of the things that i think that the agencies feel about the proposal, this would be an accurate statement. we meet with them regularly in terms of their feelings, the proposal and a packet shows the assumption of 135 resulting in a rate of $2.80. the rate goes up to 90. several of them have asked me, what are the other combinations within the historical rate setting approach? what are the other alternatives? can we see what that would look like on a graph of historic use? what if the

president vietor: all those in favor? i will -- >> i will read the items. 15 -- threat to public services or facilities. 16, conference with legal counsel, existing litigation parian 17, conference of legal counsel, existing litigation, da ren kuang et al. if you could now move into a closed session. president vietor: >> closed session husband concluded. there was no action on item 15. items 16 and 17 were settled. next item. can i receive a motion to not disclose the discussion? all in favor? any other additional business from commissioners? hearing none, the meeting is adjourned.

president vietor: there has been a motion and a second. is there any public comment on the consent calendar? all in favor? the motion carries. >> the next item begins regular business. the presentation and discussion of proposed wholesale rates and the environmental surcharge. >> i would like to provide a brief update for you today about the wholesale rates as part of the annual budget process. this year, as we discussed previously and provided a great alternative memos to the commission, as well as to all wholesale customers, we looked at the current rate setting methodology and we looked at what other alternatives could be to increase revenue stability. will looked at a monthly approach as well as the annual deliveries approach. we basically wanted to solve the equation that would result in the same number of revenue dollars being recovered, but with increased certainty that they would come in the same year that we expected them to come in. we will be asking you to vote on these on the may 10 meeting. the high level summary is on page 3

president vietor: anything else? >> we will issue it, come back to the commission and if we hear anything, we will come back before we award it. the next item -- we had a legislative update scheduled for today. originally, because of what is happening in washington d.c., we are rearranging that, but i want to give you a brief update. >> i'm the assistant general manager for assistant affairs. since i will be coming back to you next month, i will be broad strokes about what we are hearing about what's happening in washington d.c. because there are questions about how much we're tracking and what is happening. the bad news is there are no earmarks and it looks like significantly reduced programmatic spending. i have been having conversations with our federal lobbyist and he has been able to frame things in a positive light, saying thepuc does not go after a lot of earmarked or programmatic support at the federal levels. so the overall implications are minimal because we don't accept that type of money. the fiscal year

president vietor: commissioner courtney? commissioner courtney: i am looking at page 11, and i really like orange. i am not sure what color that is. the power part. but it is not too late. all maurer, deeper, more powerful orange? >> it is a gold-ish color. president vietor: thank you commissioner courtney -- thank you, commissioner quarter. i have a lot to say about this. we deal with water and power and sewage, and i pictured chicago. you feel very strong. and i feel this new logo is too light weight. it is amusing. i have trouble with all the colors. it is not strong. it does not make a stance. christopher is putting the logo on our letterhead. to send out a letter head with a picture behind the prince -- print. i like the idea of how he worked it altogether. it does not look serious. it looks like a toy company instead of what we are, which is a very strong utility. >> i really do not mean to prolong this forever. there is a lot of people within the agency who do not like the current logo and current letter head. are you

president vietor: any questions? public comment? >> i was a founding member of the lake merced task force. i also have the privilege of serving with the recreation chair of the task force for a number of years. regarding a joint management of a lake merced track. it did not work. we have learned from experience the proposing a shared or joint responsibility. how can we help support programs for high-school student athletes? it is time to move on. san francisco reconed park has no reason to be fearful about taking back full control of the lake and the recreational component. with your of mr. and of the water project, it is just a drop in the bucket. the organizations will be happy to work with sfpuc. we can provide you with the experience, he leaders that have long-term experience in serving our community. thank you. president vietor: think you for your comments. we look forward to seeing the evolution of the mlu. >> the plan is to have it here on may 28. president vietor: other comments? next item. >> any new business. president vie

president vietor: one thing i did not see in here is a baseline. my understanding is that when you are doing indicator work, it is helpful to have a baseline you are working from? >> yes. in our report from 2007, we created a baseline. we found 160 performance indicators. based on that, we have updated that on a quarterly basis to the year 2008-2009. we have all of 2005-2006, plus 2008-2009. so we have a pretty good basis. president vietor: if we are talking about water conservation -- and these are our goals and there are several goals. is there a mechanism in their? >> yes. i would be happy to discuss this with you at any time. if you go to sfwater .org/sustainability. it is our baseline. all of the indicators are in there, including conservation -- that is the bottom line. so, yes. president vietor: where does it fit in the process -- last july, sort of looking through here. what is the appropriate forum? to discuss in advance of the july meeting to say, we want to work on climate change, or even the commissioners may have something? how do we i

president vietor: all those in favor? i will -- >> i will read the items. 15 -- threat to public services or facilities. 16, conference with legal counsel, existing litigation parian 17, conference of legal counsel, existing litigation, da ren kuang et al. if you could now move into a closed session. president vietor: >> closed session husband concluded. there was no action on item 15. items 16 and 17 were settled. next item. can i receive a motion to not disclose the discussion? all in favor? any other additional business from commissioners? hearing none, the meeting is adjourned. it begins innocently enough-- you don't return a phone call; you break a date at the last minute-- but, in fact, it's the beginning of a pattern, and soon, your friend with mental illness realizes you're avoiding them, but what if you knew that your friendship was the key to their recovery? would you still lock them out of your life? [doorknob rattles]

president vietor: it would be interesting to see individual way as well. and historically, and the projected. somehow factoring in the purchases, the non-santhe variay which they move. we have it. we have done it. we are happy to provide it. president vietor: thank you. >> we did bring to you that known quantity approach. a number of our customers applauded that he reread we were not planning on bringing that back, obviously. we also discussed are ratcheting adjustments. that is not something that was welcomed by much. what we are welcoming back is -- generally the way we have always done it, which is one chance to reset during the year. that would provide some rate stability, but at least something this year -- if interest rates are going down, b.b. -- the able -- to be able to set rates. that is still out there. there are different points of view on that. again, everybody would like certainty today. that is the one remaining issue. in general, there was little agreement to go with the new methodology. president vietor: and if we set it on an annual basis

president vietor: other comments? next item. >> any new business. president vietor: next item please. >> the report of the general manager, there is a sub item. >> we told you that during april, we get [unintelligible] it may ultimately impact the puc's needs. >> i will give you a brief update of that in particular. the highlights are also included in your package. we filed everything timely from our commission. in addition to that, the city's capital plan. the financial projection has been issued last week by the comptroller, the mayor, and the budget analyst. one of the things in particular there is the structural shortfall. the news was the projected shortfall of about $306 million is a pretty big number. it is a little bit better than that was a few months ago. they make about $20 million of improvements and a general tax hall of about $15 million. i have looked at the water revenues, and we are not seeing it yet. nevertheless, the city is seeing some good news. next year, there is a shortfall for the general fund. so it will be a long-term prob

president vietor: commissioner moran? vice president moran: i had a common myself, but i was not going to say anything. [laughter] the discussion shows how powerful images are. that is the reason we went through reprinting exercises -- rebranding exercises even though it is always hard for me to take them seriously. these are very powerful images that people respond to. moreover, and the process of coming up with these, it can be used as an organizational, development tools to focus on who you wore, what we believe in, and as an internal tool i am not hostile to it. this really does talk about who we are. the sioux were siou the sewer especially. we also call ourselves the please water program. sewers are what people understand. as far as continuing to make the point that we clean up water and protect the environment, that is something that we do in all three enterprises. that is something that we can deal with as part of our educational mission. that does not lead anywhere. for emergency vehicles, where you have the truc

commissioner vietor: are there questions or comments? >> commissioners, we are still working with various folks. we have been working with a lot of people with the mayor's office over the last several years. mike martin was the lead for it. he is now working on the america's cup. we have staff still discussing things as esoteric to most of us as the death of the pipe, compared to the waste water levels. so we can bring that back to you and ask if this is an appropriate briefing here cost, and appropriate cost for the connection fees and capacity charges and for the developers, so you get a sense of what that might be. >> do you have any further comments? >> this is going to seem very complex, but your comments and questions were very good, so we think we can distill it down, so when we do our presentation to you, hopefully we can answer some of your questions. as the general manager stated, a lot of it comes down to what side of the legislature the costs actually come down on. that is the big decision you will need to make in two weeks.

president vietor: [unintelligible] commissioner torres: i just of commons. this is the kind of response he would -- you would want to see. wendy's tunnelling projects go wrong, they go wrong in a big way. they certainly get your attention quickly enough. that is one reason why i think it is important to pay the same kind of attention to issues when they, up, the scene in powering of people -- empowering of people. that is every bit as important in the small projects as the large projects, and they tend to get less attention. this is what a good process looks like. this is the kind of thing that hampers careers. i think this will serve as very well. thank you. >> thank you. >> the next item -- i believe commissioner caen was on the commission when the sustainability program was adopted several years ago. one of the items on the action plan was to consolidate that puc sustainability plan with national efforts. this is the result. we will talk about how you can read this and look at it, but also if you have any feedback now or in the future, we would love to he