[gavel] good afternoon. I would like to call the march 14 meeting of the Public Utilities commission to water. Mdm. Sec. These call roll call caen here kwon here vietor and courtney are expected to arrive shortly and we have a quorum thank you. Commissioners we have the minutes from the february 28 meeting any additions or corrections would like to is there a motion . Moved and seconded. Any Public Comment . Seeing none, all those in favor say, aye. [chorus of ayes. ] opposed, say nay. The item carries. Next item general Public Comment. I have one. If i think most of the people here are staffed and if theres any reader interested in the [inaudible] plan and Water Quality control plan this would be the time to talk. Because theres nothing on counter specifically relating to that. Mr. Martin. Thank you done much good im here im concerned that that esf views he is going to summit comments through march 17 to the state water board opposing debate dr. Plan draft. At the last meeting i pointed out the Scientific Evidence presented in the plan contradicted mr. Ritchie said. That was the board point on slide eight of his presentation that starts with unimpaired flows. Last meeting, mr. Ritchie criticize the california fish and Wildlife Service and decision to [inaudible] limits as unhelpful. Mr. Ritchie ignored the signs upon which the Commission Based their decision. I was present at the Commission Hearing in 2011 with the issue of iraq limits was discussed. Proponents showed the same photos to mr. Ritchie showed. Photos which focus on striped bass in contradiction to the studies provided to me by mr. Ritchie for both 2006 and 2012. The photos the strong impression that striped bass are the problem. His own studies do not say that. But voters are not signs. Fisheries biologist resented. To the fish and Game Commission from their studies regarding striped bass predation on [inaudible]. Their conclusions were best summarized by doctors. Well and William Bennett of the Uc Davis Center for watershed sciences. Their conclusions, one, the delta infrastructure and. Ways the waters exported from the delta is the by far the primary reason for salmon smoke survival or lack there of. Two, predation by all predators is highest during periods of reverse flow and low flow. Three, removal of nonnative predators often have unintended and surprising consequences for the ecosystem in which they have adapted. Therefore, changing bag limits first like thats what little effect on salmon smoke survival. The commission then voted to leave the bag limits alone. Thats what really happened. In responses to the [inaudible] trust dated february 23, 2017, we meet at the sf puc we pride ourselves in relying on the best available science. In these two instances, that is clearly not true. In my review and with all due respect, this ritchies presentation was thoroughly biased. I supported by peerreviewed Scientific Evidence in actual Public Events that took place in 2011 and please, exercise due skepticism in using his materials regarding your official response to the state water boards a dr. Plan. Thank you and much. Thank you. Is there any other general Public Comment . Welcome. Yes david about making seeing none, and its been a while. Just a couple of points. I want to appreciate the commissions action at the last meeting to advance the new headworks at the southeast plants that we will hear more about ss id and appointed a project to the Larger Program but i did want to note that action he took last time including the network of [inaudible] and the rest of staff on that. Furthermore since i have not been by in a while, i just want to also express my appreciation to the employees of the puc. Generally, as i think ive said before at this commission, work every day to operate and maintain and support the plan and construct the vital infrastructure that we need for our waterpower and sewer systems. I certainly appreciated even though im not getting a full built anymore now getting a fractional builtin thats a big implement thanks for all the good work. Thats done that. I also want to note a couple of things relative to the general manager. I dont believe is general manager, Ed Harrington served about 4. 5 years and i think harlan is just about at that 4. 5 your market so things are just about to surpass ed. Im not sure [inaudible] we will have a competition at some point but the other sad news as im sure youre aware, very sorry for harlan sloss and his family and extend my condolences there. Was my general Public Comments. Page very much. Thank you david always a pleasure welcome back. Any other general Public Comment . Moving on then, commissioners, you have medications included in the packet. Any items on that you would like to discuss . Any comments or questions . Seeing none, any Public Comments . Thank you. Moving onto other comMission Business, commissioners . Its a quite group today. May we go back tohe was yes, you may. Commissioner caen under fivee, sewer inspection. I was wondering so few were cleaned and inspected this last year . It was one of our goals to keep that program moving. Nobody knows . People leaping to the floor. Ms. Howell spewed good afternoon commissioners. Im here for tommy moral good ill try and answer that question but i know this past year thereve been a lot of cleaning of catch basins and in preparation for the storms they have been inspection but more focused on the capital projects. Not so much on the rnr. Okay. Because i was one of our objectives that you keep that up an increase in which we have been doing they have had some personal we source issues so we have been trying to oh, there as well. To get him the resources that he needs to continue the inspection. I would like to point out your 1415 we did 203 and year 1516 we did 91. I mean, thats quite a bit less. Okay so i guess i will just ask tommy whites going on yes we will get back to you. I know that we received a lot of information from pg e because they did the cross boards and we got a lot of tape of our sewers so they did a lot of the inspection for us. When they did the cross borders where theyd board into our sewer pipes. So they did a lot of inspection footage as well. But we will get back to you on whats behind our inspection numbers but i just want to point out we did not include the inspection that was done by others like pg e. Okay. Thank you any other Mission Business . Okay moving on to the report of the general manager. Mr. Kelly welcome back thank you good afternoon commissioners. First i would like to thank everyone for supporting me. Most of you probably know my mom passed away and i just want to thank everyone for helping me through this could i really appreciate that. So with that, i want to give an update on clean power sf. Barbara hill. Good afternoon commission. Tar heel assistant general manager for power. Just two items to go over today our enrollment and rate plan. We are now serving about 80,000 customers. Our opt out percentage is 3 just a little over 3 . We received more upgrades to super grain. Thatll bring our total to 2156 customers who signed up for super grain and receiving super green service. Thats 2. 9 of our overall customers. We will be getting enrolling new customers who signed up and said let me in inmate. As we said at our last report we are focusing on customers who ask to be included and customers who are Net Energy Metering customers within district 5 and eight. That will add just over 1000 additional customers. This is just going to be part of our routine process where we dont want folks in the waiting room too long. Right . We want to bring him on board in routine methodical way. So we be doing that inmate. The notices the mailers that notify them, of this enrollment are going to begin be mailed next week. So heads up on that. With respect to rates, you will recall that were scheduled to bring you a rates proposal annually in april as we have been reporting pg e rate components increased in january. The solar choice premium for pg e customers decreased good on friday the clean power sf team in our finance folks teamed up to brief the rate fairness board of our annual clean power rate consideration. We discussed three options at the rate fairness board. First would be no change in rates. Just go rate action at this commission. The second option would be change the rates to achieve bill parity with pg e. So that the average customers bill would on average be the same as it would have been where they stayed, were they to have stated pg e customer. Default customer. Then the third option is to reset the rates to achieve the same discount that the commission had adopted before. Thats that 0. 25 discount off of the pg e generation rate. The Commission Secretary has begun the publication process that is required for noticing discussion of rate changes and we will be returning to you in april with a recommended action on clean power sf rates. With that happy to take any questions you may have. Thank you. Commissioners . Thank you very much. Mr. Kelly im sorry. Any Public Comment . Mr. Kelly next item is corley audit and Performance Review. Good afternoon president commissioners by nancy nancy director of insurance and director andrew im here to present the quarterly audit and Performance Review port ending 2007 and the courtly report highlights overall recycle the s of qc i enter on external parties and details audit and assessment activities. The information is key motive that provided by a fiscal year to date along with the sixmonth calendar of all projects. As highlighted in the executive summary or agency finished the quarter with 40 projects in various stages of progress. Of this number 15 were completed and 13 work in progress. The geordie of the audits and assessments at this time are merely finance related and related to the fiscal year ending 2016 fiscal year and cycled that you motive numbers again will increase as we move through the current fiscal year. The executive summary we note we finished the Second Quarter im sorry excuse me 11 audits completed in the Second Quarter are listed here by report issuance date. Present were reported with the audited Financial Statements for last fiscal year issued in october and subsequent followed by the comments of annual Financial Report and popular and no Financial Reports in november. Completed projects to include California Independent systems operator scheduling coordinators self audit. A Community Benefits phase 2 commitment in contracts. Then followed again by apaches preaudit for specific gas and electric at this audit was performed by the City Services auditor and they found the pc properly administered guidelines and transactions for the franchise that pg e probably paired franchise surcharge fees of 11. 9 to the city for the twoyear period ending december 2012 based on 1. 7 billion in reported gross receipts. Qc also requested the city auditor to perform eight internal controls audit on internal cache receipts audit that management has implemented. They also completed another franchisee audit of the Energy Center of San Francisco llc. They found that energy probably paid 327,000 in Franchise Fees to the city unreported 31. 7 million in gross receipts and as accusing properly complied with administering and monitoring the franchise agreement. Lastly, sales and use tax audit was conducted in completed in december by the california state board of equalization with no findings. Looking ahead to the Current Quarter three and beyond, we expect completion of the following audits. Rebate and incentive audit of go solar San Francisco. Citywide Construction Management safety audit. The wholesale revenue requirement payment of changes the balance and account for prior fiscal year ending 2016. The similar audit for federal grants. Notable items currently in progress include the 2017 western Electricity Coordinating Council compliance monitoring audit. As was the Community Benefits for phase 1 expansion of the Southeast Community investment framework focusing on our culture and stakeholder engagement. As part of our ongoing reporting of open your prioryear daughter recommendations on pleased to report continued progress in this area. Key to the number of closed audit recommendations meantime and 90. 5 . The ratio represents the number recommendations for all audits the remained open with outstanding audit recommendations in the current fiscal year. With that that concludes my report. Thank you. Thank you good commissioners, any questions or comments . Okay. Thank you very much. Any Public Comment . Seeing none, mr. Kelly okay. The next update is the adjusting water and power and rise Capital ImprovementProgram Quarterly report. Good afternoon pres. And commissioners. Dan wade, director of water and Structural Capital programs and am pleased to report the results of the quarter to of the hetch hetchy capital implement projects. I want to highlight a few things that kept us busy this last quarter. Number one, the mountain tunnel bypass project this is the large project thats a placeholder for a project to be implemented for this critical asset. We did complete the alternatives analysis report and we establish the methodology of Condition Assessment and probability of failure that was submitted to our Technical Advisory Panel who endorsed that methodology in preparation for inspection and so you know that we started some tunnel added an access work last fall and that work has continued and was the critical component to the work had been completed and ill show you some pictures of that in a moment. One contractor was working on annex 56 and eight, nine to expand the access to weaken the equipment into the tunnel on a short basis on a [inaudible] basis in order to make emergency repairs if necessary. So in this last quarter, fabrication and testing of new doors were completed. Then, the inspection and repairs of the tunnel there was a lot of prep work that went into this accommodated at the end of the year and the we started the implementation of that work in january we since completed that also your couple of photos in a moment. Then we have a number of other projects, the largest of which is in construction is the facilities upgrade and we continued excavation of Foundation Work there in the moccasin yard which will improve a number the facilities. So the mountain tunnel inspection and repairs started right after the new year in january this is a photo of the pope had been removed. The inspection since this time the bulkhead has been put back an inspection is now complete. Its been a tremendous success before i go any further i just wanted knowledge the efforts of the team. They were extremely large number of people involved in the planning and execution of this work but i want to point out one person in particular thats joanna want the project manager who courted native nature menace number of details with operation folks as well as the construction teams all the engineering teams that were involved in billy making this logic come together and we have a lot of work to do but john has been instrumental in getting us launched to where we are now in completion of this phase 1 work. Once we did remove this bulkhead, we were able to makewe went to inspect the tunnel, number one and really gets a thorough visual inspection. We also were able to make repairs to over 7600 feet of lining and we added some components after the initial contract was initiated as we found some additional places where some critical areas that needed to be fixed. But overall, we found that the tunnel liner appears to be in very Good Condition. In fact, in better condition than many people expected and so were going to finish the work of documenting the inspection, documenting the repairs. The be a lot of scrutiny of that work and will bring that altogether in a few months. Then, that will lead us towards the process of making decisions in the months following. Question on that absolutely. Does that mean or you have not decided yet the liners is in good enough shape not to have to replace . So i say its very likely were not going to be building a new bypass tunnel but the particular method of repairing the existing tunnel has not been determined and we havent made a final decision on whether a new bypass tunnel would be constructed or not but i did check in with Steve Ritchie and he is comfortable saying now that its unlikely that we would build a bypass tunnel. But it still a significant project. One of the things that gave additional confidence regarding the title lining we had to actually physical course and test some and outlining and so this is a photo of corning taken place in the wall of the concrete liner. What we found is that that country is actually an extremely Good Con