We closed out a fairly old audit from 2015 associated with irrigation district purchase of class one power. The reason we closed them out is because they are not buying power from us at the present time. Those are put on hold and we will revisit those if the irrigation districts come back to buy power. That older 2015 audit is closed out. In the center part of the slide we have one audit, this is our review that was concluded in june. There are six recommendations. We look forward to wrapping those up before the end of the calter year. With that i am happy to take any questions. Questions or comments . Any questions from the public . The next item is quarterly budget status report. Charles, you are up again. Hello again. Charles pearl. Deputy chief financial officer. Could i have the slides, please. Commissioners this is your next Quarterly Report. This one has to do with our budget variance information. In terms of the observations so far in the year, again, this is the current fiscal year First Quarter through the end of september. We have again early in the year we have positive news to share in terms of water sales for our water enterprise, wastewater and clean power. In terms of out going i will go into detail on these in a moment. We have lower revenues for power enterprise. Sewer and water Sales Revenues above budget, about 1 million each. Power Sales Revenues are just under 3 below plan. Right now we are projecting our Financial Results will exceed or meet our policy targets for coverage reserves for water and wastewater. Power we see it below policy min mims by owes minimums for year end. For water sales are slightly above budget. It has been a fairly dry season of course, over the summer and into the fall we are seeing water sales above the plan. Then in addition to that we see savings in terms of personnel costs due to vacancies. On the wastewater side, as wastewater sales track, our water sales we are similarly seeing higher revenues due to increased water sales and savings associated with vacancies. It is early in the year and we are making assumption based on where they ended last year. Of course, as hiring and recruitment happens, we will update these numbers for you throughout the fiscal year. Wasnt last year unusual . In terms of . In terms of water supply and so on and so forth. Maybe i misunderstood you. In terms of salary savings, we have a number of vacancies and we are assuming we will continue to have salary savings associated with those vacancies. If recruitments fill up we will update as the year goes on. Sorry if that wasnt clear. On the power side, we are seeing and you saw this at the end when i presented q4 for fiscal 2019 we see weakness on power sales side 3 lower power sales. Some of these were due to transfer customers that didnt occur. As a reminder when we set the budget for fiscal year 2020 we set it for two years fiscal 2019 and 2020. The budget was set more than a year ago. Any variance in 2019 you will also see in fiscal 2020 because the budget had been set. We will work on adjusting these as we work on the budget the next two years. We are seeing weakness on the power sales side. We will offset with savings. As i noted at the outset we are seeing a net revenue loss for the power enterprise. We will work with the team to close that loss to offset our revenue shortfall with cost savings as being the goal. Clean power is a great story. Aside from all of the awards you heard about, we have tremendous amount of revenues above plan. Revenues are about 20 million above our budget, just under 10 . Again, as with the other areas we see salary savings anticipated due to vacancies. Key ratios, i want to point out here we are within the policy reserves except for the 21 you see noted should not fall below 25 per our policy minimums for operating reserve. We will find Additional Savings or bump up revenues as we can in order to balance that out by the end of the current fiscal year. All of the metrics there in current basis are all above the minimums. That is a good thing. I will take any questions. When people do more selfgeneration of Solar Systems on roofs, is that going to be renegative in our power or less than revenues . We may see that in lower clean power revenues. If they are Generating Energy at their home or business, the ultimate sales running through clean power could be lower. Right now we are okay on the clean power side. In terms of this side it is more about transfer customers and other larger commercial customers planning to transfer that havent as of yet. That is what is happening there. The Fund Balance Reserve being 21 versus 25 to 68 goal. What is that in terms of dollars . It is a good question. One moment. I will look it up. It is about 3 million, 3. 5 million. So we will look for cost saving in other ways of bringing that into balance before the end of the year. What are th the things we lok into for cost savings. We can closeout fund balances. Project operating costs pushed to the next year, that sort of thing. Thank you. Any other comments or questions . Any Public Comments . Thank you very much. The next item is Water Enterprise Capital Improvement ProgramQuarterly Report. Good afternoon. Director of water Capital Projects and programs. The first item that i am going to present today is a quarterly update on the water tenure, Capital Improvement program from july 1 through september 30. Thank you for putting up the slide. So the highlights of this period are listed here. You can see the yard is essentially done and we had an Opening Celebration of that yard. We unveiled a plaque on september 27th hosted by the assistant general manager steve richy. That was a great celebration. I will show you that picture in a moment. We have seen a lot of progress on pipeline number 2 project with placement of 54inch pipeline in sanbruno. It is 90 years old. That is making good progress. We successfully completed the shutdown of the Water Treatment plan to address preventative maintenance. We inspected Bay Division Pipeline 3 which is important for the integrity programming. The west side recycled Water Treatment facility advanced to approximately 35 construction completion. For the s uno l yard had a move in celebration. They are using the facility. It is a remarkable facility compared to the facilities there. Didnt we say 130 years old the previous facility, steve . 1875. It was time to have a modern facility for the folks working out there. We unveiled the plaque and folks have moved in. The watershed center, which is the other part of the project to be constructed near the water temple is moving forward as well. We received bids and we expect that project to move forward with award of that contracted very soon. I mentioned the san andreas pipeline two replacement. This shows completion of segment two pipeline of the peninsula high school. This does go through some densely populated communities. That is a major challenge of this project. They are making good progress. In some areas where it is impossible to digup the old pipeline, we are slip lining the old line rather than replacing. It is slip lining and replace. We do plan to replace segment 3 next quarter. Can you hold on for a second. Slip lining define. That is when you put a material inside the old pipeline rather than dig it up to replace it. It reestablishes the integrity of the pipeline. The disadvantage is sometimes we use capacity of the pipeline so we have to look at the tradeoffs. Good question. Then the west side recycled Water Treatment facility in San Francisco. I mentioned 35 complete. This is one of four contracts that addresses the need to treat the recycled water and use that for irrigation purposes and so this shows point of the concrete walls for the columns of the recycling facility. That concludes my report. I would be happy to take any questions. Any Public Comments . Okay. Next item. Dan. Water system Improvement Program local and regional Quarterly Reports. Thank you. My next report is on the water system Improvement Program, again, covering the First Quarter of the new fiscal year. You have seen this many slides. Steve says this is my favorite slide. It is really not but it is important to note that we are making good progress. We are over 87 complete with the programming. We really only have a few projects that remain. I will talk about those in todays report. First, the replacement. You know that we did complete construction. It was officially the final completion happened this quarter. July 12. So we are in the midst of the administrative closeout of the construction contract that will continue through 2019. There is a lot of work going on. Susan is here, the regional project manager for the projects and she is still working hard with the team to get everything buttoned up. I did want to mention that susan has been busy out getting awards as well. She just got the tenth award for the project. I would like to give susan a big hand. [applause] the awards look a little different than the Climate Change awards. I dont think she has trouble getting them through airport security. She doesnt have enough arms to carry them all. It is nice the project is recognized. The team has been working hard for a long time. The diverse dam which is a subproject to the replacement is again also in the final closeout phase. We havent officially completed the construction contract because there is still testing going on and training and punch list items. We have a couple things to address. We think we might be able to address them through warranty but we felt it was better to keep the construction contract open until they are addressed. First, we need to have the contract to repair and make adjustments to the debris rake and rack system totadybry off the screens. They will have to go back after the rains next year to take care of that. We will keep the contract open to next fall so we can hold the contractor accountable for that. We need to depend on Mother Nature to give us water to complete the testing of those facilities. You will see the forecast beyond the approved date. Those are the reasons for that. One thing i havent talked a lot about, but they asked i just kind of highlight these more now that we are towards the end of the program. The regional closeout projects. We have one in each of the projects. These were up in 2016 to address items that are not associated with the large projects but things that need to get done that may be followup items on the large projects to meet the goals and objectives with the water improvement project. First is the san joaquin region. There is one item to upgrade solar pa panels to apply energyr valves and so forth in the san joaquin region. That is being done. They have been designed. Wwe are almost done with the design. Within the next quarter we will issue job order contracts for that work. In the valley there are a few items. One is erosion repair. That is completed. We did relocate some Water Quality equipment. That is completed. At the Water Treatment plant, the Site Preparation for the mobile pilot plan is completed. The san antonio backup pipeline water modification phase one is completed. Next we will replace the equipment damaged b by overheating. We will build enclosed facilities to make sure that doesnt happen again. In the bay division region, there is just a couple of things. One is to install a v ditch for drainage control to prevent erosion at the site of the baydition pipeline. Also to do pipe coding to address corrosion inside the vault that is underground there. We want to make sure we address that soon so we dont get further corrosion. Temperature then in the peninsula region, the connecting channel is 50 complete to connect the stilling basin that takes the water over the spillway, connect with the stream channel downstream. Fish have gotten trapped there and we are making it doing modification of the channel so fish will not get trapped. We also replaced the equalization mixers. So there are two large projects that are relatively large regional projects that will in construction or design. That is the regional ground watery cover reproject. You know the phase one, which is construction of 12 well stations. That is certainl essentially coe except for startup and testing. We wrote a memo that you saw in august. We are continuing to work through those issues, including flow meters and Chemical Treatment during this quarter. Contract c is in the planning fazan 16 complete to complete the well station and to get the additional wells through the startup and testing phase as well. That memo was provided in august and we engage with operations to work through the issues on that project. I should say that the Quarterly Report does forecast that project going beyond the current approved date. We do anticipate you need to come back to ask for some additional time on that project. Current lighcurrently it is forr june of 2022 rather than december of 2021. For the Alameda Creek recapture project, we talked about this in the past. The recirculation was anticipated a few weeks from now. We look forward to getting that out. The project schedule needs to be reforecast. We know that will go beyond the date of worship. We have noted we will do that when we get that document recirculated and receive comments then we can be in a better position for that project. Lastly, before i take any questions, i want to mention we received the letter that was sent to the commission on october 18th. We will respond to the recommendations that were made. I will be happy to take any questions. Thank you. Any Public Comment on this item . All right. Next item the wildfire mitigation plan and implementation. We have margaret. Welcome to the low cut country. Good afternoon, commissioners. I am the Division Manager of water and power. I am here to talk about the sf p. U. C. s wildfire mitigation plan and our actions during the october 2019 Public Safety power shutoff event. We are a on you at thi a utilitn transmission lines. With passing of senate bill 901 we are required to maintain a plan per 8387. We provided you our first plan and it was approved by the commission on january 22, 2019. Under sections b1 we are required to update annually. I am happy to say the last exhibits just got finished today. We will bring you that completed plan on december 10th. These wildfire mitigation plans are required to have certain elements. One of those elements we have to identify for you where the San Francisco public utility overhead Commission Line assets are relative to the California PublicUtilities Commissions high fire threat zones. I will show you a couple of those maps in a few minutes. It has to define roles and responsibilities of staff to provide expectations and accountability for our program. It covers wildfire risk. How are facilities designed . Do they create risk . What activities do we have on operations . Vegetation, maintenance to minimize the wildfire risk. It talks about the programs and strategies. I will talk about the deenergy plan today. We are required to have an independent evaluator review the plan. That will be after the first of next year and they will issue a report on the findings of the report. We have a map of the bay area over there. I know it is hard to see. Those yellow and red are tier two and three areas. As you can see, the San Francisco in the upper lefthand corner and the map continues to the middle of the san joaquin valley. Red is the highest fire threat telling us we have a lot of fuels there. As you can see on the left side of the map you will see the distribution lines, little green lines on the left are mere crystal spainings reservoir. They come from pg e and feed the cabins on the two properties. Our transmission lines are on the right side. They are blue. You can see them on the rim of the alameda county. They are on the rim of the area. Those areas in gray, not a high fire threat, not a lot of vegetation. This next map is the rest of our facilities. This is where i am from. This goes from the valley up to shauna. You can ski the green lines with the cherry compound, the o shauna see program. The blues are the transmission lines. They are mostly in yellow. That is moderate. It would probably be tier three. We had the fire in red that burned through a lot of the project in 2013. When we look at the number of miles we have. The city has about 215 miles of transmission and distribution line. Half is in tier to and three. We need to make sure we mitigate wildfire risk. So one of our strategies in our wildfire mitigation plan is to deenergize both lines when we have read flag warning days and high winds. How do we do that . We rely on the independent forecasts by noah. We have a process to monitor when the wind speeds exceed the thresholds. We use the same as pg e uses. Sustained winds 25 Miles Per Hour or gusts up to 45 Miles Per Hour. We used the information on how we will manage the lines. We monitor conditions in realtime. So the question is how did it go in october . Well, we had three red flag warning events coupled with high winds. I know you all know this. You may have had your power cut off. From october 9 through 12 the forecasts did not exceed thresholds so we did not energize our lines. October 26 through 28. Forecasted exceeded our thresholds. We will talk about that. For the last eve