Thank you. Before we enter Public Comment, i wanted to send my condolences to many of you, especially harlan, i know you were close with mayor lee. If there is any day to wish for fake news, this was it. I think were all very stunned. So, i want to announce closed session items 25 to 31 will not be heard today. As were going to approve the minutes of november 14. Can i have a motion to approve those minutes . So vote. Second. Any discussion . Any Public Comment related to the minutes of november 14 . All in favor, do approve . Aye. Opposed . Ok. Approved. Id like to call forward Public Comment and i have two gentlemen here. First is peter jakemier for Public Comment. Good afternoon. First im really sorry about mayor lees untimely death. A real tragedy for the city. In reading the sfpucs week in review that ended on december 1, a couple of things jumped out at me. First was conditions at the reservoir. There were two significant storms this season. Approximately 32,000 acre feet of water available to the city. 4 of our annual average accumulation. So, that would mean the average annual accumulation is 815,000acre feet. Ill come back to that. Second was an item economic value of water in u. S. Metropolitan areas. And this is a study done by the Bay Area CouncilEconomic Institute. And this is the analysis builds on the Bay Area CouncilEconomic Institute report. The impacts have reduced the bay area water supply prepared in response to the Water Quality control plan. I looked that up and awas kind of shocked by the poor analysis that says the Bay Area CouncilEconomic Institute looked at the impacts of 30, 40 and 50 unimpaired flow requirement on the river would have on bay area water users under the 175 million gallon per day scenario. The draft s. E. D. Could lead to water supply shortfalls during dry years. Regional Water Supplies would be reduced to as low as 67 million gallons for day from 175 million gallons per day during dry year such as 1991, 1992. Im assuming they misquoted the sfpuc. Seasonerly you want to look into that. May made the same mistake that the bradle group has done, which is based rationing on demand versus supply. For example, if you make 265 a day and you only spend 175 a day, you put 90 in the bank. If you get a pay cut of 90 a day, that comes from your 265, not from your 175. So back to the sfpuc water available. It was 815,000 acre feet per year. 175 million gallons per day is the equivalent of 196,000 acre feet. 67 million gallons per day is the equivalent of 75,000 acre feet. So, the 67m. G. D. Figure they used, in storage, in the sfpuc has enough water in storage to last 16 years at 67 m. G. D. So that is a hard core design drought that theyre apparently planning for and in the march report they basically said the method used to estimate impact was [bell ringing] 2014 report which we commented on and found a lot of reports aen are disappointed that that didnt get changed. Thank you. Thank you. Next item, mr. Dave warner. Good afternoon. I came up here on cal train and we stopped between station for a minute at 12 00 noon to pay our respects to mayor lee. So im dave warner. Im concerned about the delta bay ecosystem. One of the many great things ed lee was known for was unification. What a great quality that is and dont we wish we had more of that in washington. So, one place where San Francisco has a lot of unification is in environmental issues. And 70 of San Franciscoians voted to protect themselvess to protect the bay dell tafm im sure you heard of this before. But it is an astounding number. Three out of four people voted if favor of taxing themselves for environmental issues. My point is, then you know the sfpuc opposes the state water boards plan. And you know the sfpuc has taken a minority view amongst scientists that the ecosystem can be protected by nonflow measures. And you know the sfpuc has been posing what i would say a false tradeoff thats either the water or the economy thats at stake. And to me there are many, many more options than that. So, my point is a request is id really ask you to ask the hard questions of your staff. Dont accept either or answers. Have rigorous debate that you fully understand the implication and judge whether or not it reflects the will of the people and it is also important to ask what is the will of the people . Sure they want water, but that answer is probably too simple. I go to my conclusion, which is my understanding is that for having a water supply, we are second to none and that is a really nice accomplish. Ment. But that is maybe only half the job. When 85 of our water comes from severely damaged ecosystem. So, that is the reasons that they ask these hard questions in our meeting of the will of the people. Thank you. Thank you. Are there any other members of the public who wish to comment on items not on todays agenda . Ok. Next item, please. Item five is communications. Sorry. Communications. Communications . Yes. So you or me i dont have any questions. Any comments . No. Ok. Any Public Comment on communications . All right. Next agenda item. Item six is other commission business. Commissioners . Ok. Is there any Public Comment . All right then. Item seven is report of the general manager. All right. Thank you. Yeah, commissioners. This has definitely been a hard day for me. Ive been friends personal friends with the mayor ed lee for over 20 years. I worked with him when he was h. R. C. Director. I worked with him when he was the city purchaser. I worked for him when he was the director of public works and i worked with him when he was city administrator. He is very collateralize to the family. In fact, he was a groomsman in my wedding and so when i received the call, i was definitely in disbelief. I arrived shortly after his passing at the hospital and, you know, i helped the family out as best i could. And naomi is, you know, working with the family to figure out what their wishes are. It has been a rough year for me we some other folks passing away, including my mom in february. Needless to say i cant wait until this year is over. [chuckling] but other than that, lets talk about government and the government must continue and so the one thing i want to first topic is clean power s. F. , barbara hill. Thank you. Good afternoon, commissioners. I have quick updates on three clean power s. F. Topics, enrollment and service, contracting for our growth, and our legislative and regulatory activities. Our enrollment continues to go smoothly. We have successfully we are a successfully serving about 80,000 Customer Service sites today. Our opt out percentage is 3. 2 , so super low and our upgrade rate continues to exceed our optout ray. Its 4 for our customers now. That is a snapshot on who were serving today. Looking ahead are our next small enrollment will be january 2018. Were notifying customers now. Less than 1 of those customers who are receiving notice now have decided to opt out. We have 120 customers on the wait list now for our next enrollment in the spring. 56 of those customers are asking for super green service. So, if you are listening and want to enroll, go to cleanpowersf. Org enroll to be included in our next enrollment. In terms of our growth plans, we are contracting both for supply and for the bank credit facility. For suspect mraou, were testifily negotiating our final contracts with the short listed counterparties. Those contracts are for both new and existing Renewable Power and the energy to firm and shape it. And for our bank credit facility, the finance team is working to finalize the contract terms with j. P. Morgan for our bank credit facility. We will bring recommendations to the commission on both of those contracting efforts for a vote early in the new year. On legislative activities, consistent with your vote on november 14, i believe it was, an ordinance was introduced at the board requesting the board of supervisors provide a limited, delegated authority to the p. U. C. To enter into supply contracts to support completion of our program. The delegated authority would include annual expenditure limits and conditions that the Commission Imposed on the general manager. The item is scheduled to be heard this week tomorrow, i believe at a special meeting of the budget and finance committee so well be presenting there in support of that item. And regulatory activities. I just wanted to mention that our annual usual adjust tonight the exit fee, the pcia, will be delayed this year so there wont be a new pcia on january 1. It will be delayed for at least 30 days. The California PublicUtilities Commission has not provided a proposed decision on that. In time for it to be implemented january 1. So, we expect there will be a proposed decision issued soon. And that there would be a new pcia some time probably in january. So that was kind of an interesting wrinkle to the pcua issues. With that, im happy to answer any questions you may have. Thank you. May i ask a question . What was the reason for the postponement for pcia . So, we havent we were keeping an eye out for the proposed decision and none has been issued. We havent heard i havent heard an explanation. Pg e sent a letter to the commission saying since we havent heard anything, we wont be proposing new rates for the first of the year. And so we are assuming everything is delayed. The california p. U. C. Will have their last Commission Meeting on this year of december 14. Any action would require a proposed decision to be published for comment, has to stay in the Public Domain for 30 days and cant be acted on in that period. So we know were at least 30 days away from any action. Thank you. Thank you. Commissioners, any other questionss . Any Public Comment on this item . Next item, please. Next item is a quarterly audit and performance review. Nancy hall. Good afternoon, president and commissioners. My name is nancy hall, dpty chief interim deputy chief chief financial officer. Im here to the review report for fiscal year 1718. It highlights all oversight projects at the p. U. C. And provides a yeartoday summary, sixmonth outlook and update of open audits and recommendations. The agency finished First Quarter with 28 projects in total. Of this figure, five were completed and 17 were in progress. Six financial audits began in q1 and they include the annual audit Financial Statements, the comprehensive annual Financial Report and the popular annual Financial Report. In this same quarter, five were completed, listed here by report issue and state. These include the Community Benefits 1b evaluation framework and the annual inventory count for prior fiscal year 1617 for waste water and power and also a compliance monitoring audit by the western electricity coordinating council. The audit highlights for this quarter is the and physical inventory counts performed by Financial Services who over sees the inventory audits of the main warehouses located in mulbray, moccasin, the southeast Treatment Plant and for awsf. A full count is conducted for each enterprise one every three years. For this count, h we adjust for any unidentified exceptions. The recommendations by the audit firm mglop, recommended that the sfpuc conduct accuracy and policy awareness counts to revise fuel inventory procedures for a morse reliable system of reporting, to establish policy to document causes of variances over a certain threshhold and then to also create a tracking list for items that are temporarily relocated. Management did concur with all recommendations, partially or fully. In quarter two, ending december 31 this year, well expect to complete the financial audits previously mentioned in this presentation. And as well as complete performance audits, inclusive of a state grant audit for prop 84 for ground water storage and recovery and our department is also participating in two citywide audits for citywide payroll and another one for citywide fleet management. Upcoming audits include the p. G. Interconnection cost review performed internally at the sfpuc. At our last discussion t commission requested more detailed reporting that would provide more information regarding open audits and recommendations. As a start, we included an expanded summary of all audits within the quarterly audit report and that is also here for you. The staff will continue to improve this reporting and by quarter two next quarter, we hope to report extended audits. We currently have 72 open audit recommendations, of which a majority are from the waste water divisional ordinance from the previous quarter and confidential audits as well. The p. U. C. Last quarter close 10ed audit recommendations from the go solar s. F. Audit. These included modifications of System Access rights, update of the admin code as well as clarifying eligibility requirements and updating policies and procedures for the handbook. This concludes my friendsing. Our staff will continue to keep the board updated on the progress of our annual audit. Im happy to answer any questions. Commissioners . Thank you. Thank you. Any Public Comment on this item . Ok. The next item is a quarterly budget status report. Eric. Air uk sandler, c. F. O. Of the p. U. C. Im here to present the quarterly budget report for the First Quarter ending 93017. I think the good news is that things look a whole lot better than they did a year ago. Waste water and revenues are higher, power revenues are slightly lower than budget and clean power is is pretty much straight on, spot on in the budget. Weve seen increased revenues. Revenues above budget for the most part expenses below budget so were in a much better shape than we were last year when we were chasing water sales and all of our Financial Results meet the policy results that the commission has identified. Well go through a quick review of each of the enterprises. Weve seen water revenues up about 24 million. We sold about 182 m. G. D. , million gallons of water a day, 11 million above the budget. Most of those increased sales are on the wholesale side of the ledger. So, the 21. 7 million that you see here goes to the benefit of the wholesale customers and is rebated over time. On the uses side, weve been quite spot on on the water side so we expect to spend all of our budget. On the waste water side, things are also were benefiting from increased bill volumes for waste water sales as a result of higher retail water sales. That is generating about 10. 5 million in revenue above budget. We build about 49. 7 m. G. D. And that was about 1. 2 m. G. D. Above budget. Were seeing a significant reduction in uses and the largest share has to do with Lower Debt Service than budgeted. That is a timinging usual yule myhrer prayerly. Issue primarily. The 16. 9 million in the planned reserve, that was intended to be deposited to reserves and so that shows up as a loer than budgeted use and then we have about 3 million in vacancy savings. On the power side, we see slightly reduced revenue. I have a typo here. Im sorry. 1 million decrease is lower than budget is a result of reduced power sales. Not water salesen. And were seeing about 2 million in salary savings on the uses side as well as we dont anticipate having to dip into the contingency for power purchases. On clean power, the revenues are at budget. Were sell wag we expected to. On the uses, side, we have about 1 million in salary savings from vacancies and the 5. 6 million use here is a deposit to reserves that was planned. You can see theyre meeting the various objectives for debt service coverage. Im happy to answer any questions. Commissioners . Anything . Thank you. Just a comment. The fact that were selling more water than we planned to kind of gives us a windfall of r f gnu and we talked before about one of the possible uses of that is to fund any conservation programs that were not able to qualify under prior structures. And as we get into the next budget cycle, i will be looking to make sure that we do two things. One is assess what our consumptions are and that they are appropriately reflective of ongoing conservation efforts number one. And then number two, to look at any unfunded but otherwise worthwhile con sr. Vacation efforts to see if we can get some of that work done. Thank you. Thank you. Any Public Comments on this item . Ok. All right. Next item is hetch hetchy water capital and power improvement program. Commissioners, thank you for the opportunity to present to you First Quarter report for fiscal years 1718 for the hetch hetchy Capital Improvement program. If you please go to the slides. So, actually, before i get into the highlights, let me address the variances and the report. Quickly. The Pipeline System has a 1 million variance due to a bid being received higher than the engineers estimate some time ago. As previously reported. And a 20month variance due to the need to finalize our assessment work prior to going into the design and planning phase of the project. The other powerhouse project is overbudget by 2 million because we added the governors home and combined that project with Oil Containment systems. And the warnerville substation project had a delay and notice to proceed for construction for the design build contract. The madison penstock has a 4 1 2month delay due to scheduled constraints for outage that is needed for that project. And the microwave system project for communications has an 11month delay due to performance issues that have since been resolved and we were able to close that out recently. And the mountain tunnel i