Plans, and i will be returning to the capital plan and the twoyear Capital Budget. So we covered these in great detail over our multiple public hearings. Im just recapping them before we return them to you to consider them for voting. So the tenyear capital plan and the twoyear budget development, youll remember that i talked about the planning framework of prop e that requires tenyear capital plans. The first two years of the capital plan form the budget request. This is the First Capital plan for cleanpowersf, really focusing on local build. And we went through a new quality review process with all of our capital plan submittals. Amongst the three oh, sorry. Amongst the three enterprises, you can see that waste water represents the largest share of the 9 billion capital over the next ten years, which is why its driving, and projecting the future bill. Here is the tenyear capital plan compared to last year. There was an increase of will 4 , largely because of hetchy water and power, and there was a decrease in wastewater. Now president caen, i think you pointed out that without a got of context, its not particularly useful, but we went through all that context in 12 hours of work. I called it academic. And then heres the twoyear Capital Budget by enterprise, and it really parallels the change in the tenyear budget or the tenyear capital plan. So finally, these are the items, numb items. 13 is the adoption of the Capital Budget. 14 is the adoption of the tenyear capital plan, and item 15 is the adoption of the Financial Plan update. Ill move the item. Second. Which which item . Were going to do them separately, so we start with item 13. Would you like to do that . Yes, ill move item 13. Do we have a second . Oh, yes, second. Second. Public comment on item 13 . Seeing none, all those in favor . Opposed . The motion carries. Item 14, Public Comment on item 14. I do have two speaker cards. Tom francis. Tom francis. Im the Water Resources manager for bosca. I provided you a written statement for boscas support for the written c. I. P. Ill read from that. On january 28, 2020, boscas c. E. O. Provided a written statement regarding the c. I. P. And the associated twoyear budget, which youve just adopted. Were specifically dealing with the water enterprise and the hetch hetchy conditions. Two important things to note in the c. E. O. s statement. Bosca pointed out that while additional staff is certainly needed to implement the c. I. P. As proposed, boscas concerned that it will require an even greater number of internal staff and outside support to deliver these critical results on time. Boscas pleased that the Commission Response in response to that comment has been to direct staff to provide a implementation plan. Bosca looks forward to that plan and interaction with the sfpu 2k4r0d task, and will anticipate it, with additional details, with the goal that the staffing plan will address this critical concern. Second, relative to one particular project, in boscas statement of that date, we referenced the groundwater storage project. That was one of the key projects that remains to be funded. Until the project is complete and the associated level of service goal met, bosca considers that the c. I. P. Will still be open. The c. I. P. Prepared is robust in nature. It and then bosca therefore supports the c. I. P. And associated twoyear budget and recommends adoption by the commission. Thats it. Thank you. Thank you very much. Peter druckmach. Thats on item 15. Oh, 15. You have 14. So i will call item 15. We need a vote on item 14, first. Thank you. The motion for item 14. All those in favor . Opposed . The motion carries. Item 15. Commissioners, any comments . Ill move the item. Ill second it. All right. Peter, you would like to speak to this item. Peter dreckmeier, t 4r0uolo river trust. This will remain flat in ten years. Now the number thats been bandied out a lot is 265 m. G. D. By 2040. Thats a 27 increase on what it is today, 192. If you assume its going to be half in the next five years, thats 13. 5 . But this report says on average its probably going to remain flat. So thats a pretty big discrepancy, and i hope youll ask some questions on that. If this plan is adopted, youll go on record saying essentially, we dont expect demand to increase in the next ten years, and yi would hope t hear that reflected in the next few years because demand has a huge impact on water supply. Thank you. Thank you. Any other Public Comments on this item . Let me just ask, would y mr, would you like to address the discrepancies . Steve ritchie. So the p. U. C. Generally works with two sets of projections. One developed for development purposes, and one is developed for water supply purposes, and they are different for their purposes in that on the financial side, it pays to underestimate to make sure that rates are properly set to account for all the costs that are coming up. We cant be in a position of having a larger than demand numbers show up without having set rates in a way that reflects that you need to cover all the requests or activities for doing. The water supply projections are the ones that are done primarily in anticipation of the planned growth in the service area, and they generally tend to be on the higher side because theyre trying to make sure you do have enough supply and you dont run out of supply. So by their very nature, their directions tend to diverge on that very fundamental point because we dont want to run out of water, and we dont want to run out of funding. Weve had lots of conversations about this. Its always been this way. Water agencies have this issue. You cant just use one set of projections on that and be wrong either way. Thank you. And i think what it does the other things thats different of the two projections is the time frame. Thats correct. If your financial projections is right for a cup of years but wrong for 20, you can adjust. On the water supply side, because it takes ten or 20 or more years to develop supplies, youre thinking in different terms, and the risk picture changes. So i think theres good reason for those numbers to be different, and i would not suggest that one number should be used when we talk about the other purpose. It does, however i mean, our experience to date is relevant, and the chart that mr. Dreckmeier put up earlier, i chuckled when i saw it because its been the history of those that try to project things are always wrong, and the trend is down. Thats correct. So i think what were dealing with is less a conflict its not one number that one persons arguing one thing, and another persons arguing is another thing. I think it reflects the uncertainty and the mistakes that youre dealing with as you make those recommendations, those decisions. And it also does i think there is a real issue out there as to what we think the longterm future of Sustainable Conservation is. I think thats a real issue, and thats not something that should be swept under, you know, the technicals, you know, of how we develop numbers. Thats correct. And the other large variable there is the fate planned projections and growth bay area to the quicker legislation. Sb 50 failed again this year, but the issue is not going away, urban growth in the bay area that we have to deal with one way or the other. And as the water supplier, we are going to follow the planning lead on that, and thats the reality we need to face. And like any number, you need to know what goes into it and why. Yep. Thank you. So now, we will vote on item 15. All those in favor . Opposed . The motion carries. Madam secretary, could you please read item 12. Item 12 is discussion and possible discussion to adopt the San Francisco p. U. C. S buyenial project, biennial program attic project budget, and appropriate operating revenue funds for Capital Projects. As you all know, my daughter wor works in this department, and i will recuse myself to avoid a conflict of interest. I just want you guys to know that i will always do this to avoid a conflict of interest. So miss Vice President , could you preside . I will. Item 12 has been read. Mr. Sandler, would you like to speak to this . No, actually, ill start from here. Ill wait so wow. This is the last item. Yeah, its been a lot of effort in putting this budget together. Ill have my long arm, John Scarpulla and so what ill do is ill give a recap of what the budget operating budget you know, its 1. 5 over 1. 5 billion, and were over 2600 employees. And so i will kind of go over the key themes and then eric already addressed the you know, the tenyear capital plan, tenyear Financial Plan, and twoyear operating budget. But as eric said, we started this in the summer, 2019. We said were going to start early because we want to put a lot of effort in. In doing that, we roughly estimated that we had 156 meetings amongst ourselves, and it probably more, because when they came up, we said okay, you had to live within the rates. So then, we went back and met again to bring these proposals back to make sure that our budget would be within our rates. And i just want to say, they have done an excellent job of vetting, especially the budget team of these proposals because when they came before me, they were real vetted, they were vetted pretty well, and they were really great. The other thing is that you guys were engaged. 146 questions that we had to answer. Hopefully, they were answered to your satisfaction. Almost as many as me. Yes a, and we want you to kw that once you adopt this item, were going to submit it to the mayors office, and then, the capital plan, were going to submit it to the citys Capital Planning committee for their review, and then, the budget moves to the board of supervisors where theyll review and approve our budget. Now going through each one of those processes, there could be a possibility that these may be changed, and so we will definitely come back and let you know, but were going to fight for everything that you approved in the budget, just to let you know. So id like to go over kind of a quick overview of the three budget themes that we talked about. Ill start by talking about utility of the future now. And you know, were in full transition to become a utility of the future now. And it is especially true in the service area where technology is king, and our customers expect and deserve rapid, Efficient Services with the emphasis on equity. And i dont have we dont have all the tools and resources to actually meet those expectations right now, but i think in this budget, that were going to address a lot of our shortfalls. So to best meet our growing expectations from our customers, were rolling out an innovative Customer Program such as cleanpowersf and hetch hetchy Customer Programs. Were also staffing a onestop permit center with other city agencies. We also want to be the agency that customers want to come and talk, and we want to call them and engage with them, so we want to be that agency. Were also stepping up our engagement efforts as we are adding high Value Community engagement position to permanently staff a college hill learning garden. And then also which the college hill learning garden supports 1,000 kids that goes to San Francisco unified school district, so thats something that were really proud of. And then, were also pioneering Innovative Technology and practicing such as implementing Cloud Infrastructure and managing our biosolids in a way that benefit the environment. Were also utilizing technology to help us be more efficient and nimble in response to issues so we can better operator systems and more quickly response to any issues that impact our customers. We are dedicated to equity practices, and we are practicing what we preach by hiring an equity and inclusion manager to ensure that we have a Diverse Workforce that reflects the community. Finally, utility of the futures are transparent and accountable. Thats why were hiring a Public Record analyst and implementing a cybersecurity enhancement to ensure that all our customers confidential information continues to remain safe and secure. The second budget theme is resiliency, and were focused on continued high quality serve in light of the growing population, the impact of climate change, and increasing National Disasters as well as increasing environmental regulations. Weve done a lot of work in short and longterm infrastructure investments, but we have a lot more work to do to ensure were able to continue to provide our core services. Seismic activity continues to be a major threat on our infrastructure. Were committing both Capital Projects and staff to expand and update the city emergency firefighting water supply systems. Additionally, were imp wi implementing a robust dam and water structure Safety Service to make sure that even after a seismic event, all our structures are safe. Were hiring wildfire mitigation staff and implementing wide range of Vegetation Management projects. To ensure that we have a resilient water supply in the face of increasing threats of drought, were putting funding towards both near term and longterm water supply to continue to diversefy our water supply. Climate change means increasing precipitation variability. Were seeing fast and strong storm surge hitting our cities more frequently. We are scaling up our Green Infrastructure programs and continuing to fund or flood programatic solutions. We are making sure that we have highly skilled and highly trained workforce to manage our old and new assets alike. Finally, were increasing our power supply budget and implementing budget distribution projects. There will ensure that were able to procure and distribute the clean power that we need to supply reliably and Cost Effective energy to our approximately 38 240ur0,000 customers. The city we do to everything here at the p. U. C. Is a diverse and competent workforce. In the previous two budget themes that i talked about, you saw that the proposals were based on the people, such as mitigation staff, and focus on diversity at work. In order to meet our goals and facing the growing challenges of a 247 workforce, we must have a growing staff or our agency will not be what it is today. As such, this is more a budget about people. And justine henderlighter, she did a great job of explaining the hiring and retention challenges that were facing. These challenges are only going to get more difficult as the number of retire eligibility staff grows. Thats why were asking for staff for critical functions like e. E. O. To speed up the hiring and recruitment process. We also need to retain our employees and support the career development, as well. So one of the Top Priorities for this budget cycle is to ensure that Core Functions are staffed by permanent employees. I ask our entire executive teams to take a lohard look at their Organization Staff to look at where staff are working on and should be permanent. We have 23505 positions that we proposing to convert to permanent. While the number of p. U. C. Facilities has grown significantly over the last four years, weve only been authorized at 13 new positions. For example, we used to have one groundwater well. Now we have 14. We used to have eight treatment plants. Now we have 16. We must have new staff to man or to to respond to these new facilities. We also have new programs, such as cleanpowersf or school led inspection programs. Not keeping pace with the growth has resulted in some of these core operations to fall short. We need to increase our staffing on baseline programs such as stormwater management, streetlight programs. We must appropriately staff these programs to be successful. In addition, we havent been able to keep pace with properly staffing our capital programs to ensure Capital Projects are efficiently managed and that we are implementing thorough Financial Planning, we are increasing Capital Projects support staff in light of the sewer projects that are moving forward. Again, i cant reiterate enough that our staff are our most important asset, and im proud that this Budget Proposal focuses largely on them. And so thats to really kind of put the budget in the theme, and ill have eric talk a little more detail about our operating budget. Thank you, general manager kelly. Commissioners, ive got to get to the right page. Okay. As the general manager mentioned, and as youve experienced, this budget has gone theres been a lot thats gone into developing the budget and vetting the budget. Id just point out that earlier in your agenda, in the communications items, there was the record of all of your questions and answers as well as the Technology Information that was provided, which was part of this record for the budget adoption. One of the other things i wanted to highlight was that in december 2019, supervisor fewer sponsored and the board acted on a Budget Transparency resolution. It provides the public opportunities to comment on it, but thats not the case of many departments. So there were a number of requirements of that ordinance, and i just want to point it out here. Budget information sorry. I just want to say that we may do that, but we i think we can do a better job. We have maybe two people, two people of the public there. And so, i mean, i dont want to burst our bubble, because its not only participation of the public, but its at 1 30 in the afternoon, so we could do a little bit about public participation. Certainly. So the requirements are that you hold at least one public meeting. [inaudible] we had five. The budget information is to be bro