Citizens' Advisory Committee
Water Subcommittee

Minutes

June 27, 2007
5:00 p.m. – 7:00 p.m.

1155 Market Street
Fourth Floor Conference Room

Members     

Jennifer Clary – Chair	Art Jensen
David Dawdy	Richard Hansen
Heather Dempsey	Robert Varni

Staff: Christina Kerby
         David Behar

Steve Lawrence, special guest from full CAC 

Members of the Public: Emeric Kalman and Tim Colen

ORDER OF BUSINESS

Roll Call
Present: Clary, Dempsey, Hansen, Jensen, Varni,
Absent: Dawdy

1. Call to Order
   Jennifer Clary, Chair, called the meeting to order at 5:05 p.m.
    
2. Approval of Minutes
   Minutes from May 23, 2007 meeting approved.
    
3. Announcements
   No Announcements by members or reports on other meeting
    
4. Public Comment
   No public comment.
   
5. Presentations

   Crystal Springs Pipeline #2 Replacement Project, Husam Masri, Project Management Bureau

   i. Main points

   1. Project will repair and replace approximately 5 miles of 19-mile, 54-60-inch pipeline
   2. Will harden pipeline sections susceptible to leaks and failures, and improve seismic reliability
   3. Cathodic protection upgrades are an important part of the project
   a. Cathodic protection uses electrical currents to prevent corrosion of steel pipes
   4. Pits will be dug along El Camino Real for slip-lining installation
   5. Shutdowns will be carefully coordinated with customers
   6. Environmental impacts could include: traffic, dust, noise, tree roots, etc.

   ii. Discussion

   1. Art Jensen commented that cathodic protection can suffer in the budget process because it’s identified as a long term Operations and Maintenance (O&M) expense, though is critical. He suggested that SFPUC’s capital plans should include O&M costs.

   2. Robert Varni commented that the CAC should help the SFPUC prepare for ongoing maintenance costs

   3. Art Jensen suggested that the CAC encourage the Commission to define and develop policy to ensure adequate O&M budget for future projects

   4. Steve Lawrence asked whether the project will meet 2030 demands and Levels of Service (LOS). He also asked about system leakage rates

   a. Husam Masri said yes, the project will meet 2030 demands and LOS for seismicity and corrosion control. He said that leakage rates are low based on meter readings at customer turnouts

   b. Harry Tracy Water Treatment Plant Long Term and Short Term Improvements, Calvin Huey, Project Management Bureau

   i. Main points

   1. Major components of this project are seismic and water quality
   
   2. Short Term Improvements, slated for 2008 to 2010 include 2 Demonstration filters and installation of the 8 remaining filters once the demonstration filters are fully tested. Coagulation and flocculation system upgrades will follow
   
   3. Long Term Improvements, anticipated for construction from 2011-2014, will include the remaining plant improvements, including security and seismic upgrades

   ii. Q & A / Discussion (11 min.)

   1. Will there be a capacity increase?

   a. Yes, a 20 mgd increase (from 120mgd-140mgd), sustainable for 60 days.
   
   b. This will be addressed in the EIR, scheduled for October 2007. The EIR will also address a creek, traffic impacts, construction and visual impacts

6. Review of City and County of SF Budget Analyst Audit of the SFPUC dated March 23, 2005

   a. Section review

   i. Members expressed that they would like a presentation from Finance on Sections 1&2 of audit, discussing suburban wholesale water rates, and Sections 3&4, discussing timing and financing of the WSIP and water and sewer rates.
   
   ii. Members hope that someone from the Rate Fairness Board can participate in discussions on Sections 3&4.
   
   iii. Members asked what happened to the tiered rate structure?
   
   iv. Members agreed to forgo discussion on Sections 5&6 of the Audit, citing insufficient expertise.
   
   v. Members agreed that Section 7, related to managing regulatory compliance, should be an ongoing issue for the committee to revisit periodically to help ensure efforts toward compliance
   
   vi. Members agreed to forgo discussion on Sections 8 through 10.
   
   vii. Members suggested referring discussion on Sections 10&11 to full CAC.

   1. Issues to look at would include surplus property, and coordination between enterprises on land use and management

   viii. Regarding Section 13, Members suggested the following agenda item for the next Water CAC meeting:

   1. Discuss sending communication to the Commission stating that the CAC looks forward to the release of the Water Enterprise Business plan.

   2. David Behar will research the date of expected release and the proposed schedule

   ix. Regarding Section 14, Members would like to learn more about the official relationship and coordination between SFPUC and the SF Planning Department.

   1. Chair Clary suggested that the next meeting should address the PEIR, and would like to have someone from Planning attend.

   x. Members agreed to postpone discussion on Section 15.

   b. Additional discussion items:
   
   i. Member Hansen would like to know when will the next Controller’s Audit be scheduled?
   ii. Look into O&M policy for Commission to adopt; David Behar will research existing WSIP O&M Policy.
   iii. Does Operations have sufficient budget and staff to support operational tie in of new facilities?
   iv. Members would like to review Parsons report from October 2005.
   v. Members would like to discuss sustainability plan. Is this a useful document? What is the construction burn rate?
   vi. Next meeting will take place July 25. There will be no discussion on Crystal Springs/San Andreas.

   No meeting in August.
    

7. Adjournment
   Meeting was adjourned at 7:10 p.m.