Revenue Bond Oversight Committee - Minutes/April 2009

Response to my email on the minutes of 15 April 2009 (below). My main focus is the Master Water Sales Agreement. The sooner the better. I wanted extensive hearings by the RBOC at both the April and May meetings.

The Master Water Sales Agreement (MWSA) is between BAWSCA and SF as to how Hetch Hetchy water will be allocated, etc. I felt May was too late for the RBOC to do anything. The proposed 2009 MWSA split of 181 MGD (million gallons per day) for the peninsula (BAWSCA) and 81 MGD for SF is not sustainable based on the SFPUC/BAWUA (now BAWSCA) Water Supply Plan of 2000 or any relevant historical period (see below) from the Hetch Hetchy system.

The regression analysis has a very low priority (even though I have been harping about it for 9 years). We should all want to know what is in the MWSA and why?

• The assumption of 265 MGD is not rooted in science nor empirical evidence based on long-term historical HH deliveries.
• SF will have to cut back its current average water use to allow the peninsula to take more pristine Hetch Hetchy water
• SF will apparently use alternative water supplies (wells, desal, recycled, etc.), which are more expensive and qualitatively inferior to "free-up" HH water for the peninsulato HH water. HH water at the city gate is probably 1/5th the cost of these alternative supplies.
  

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Statistical Analysis from SFPUC Data
	SF	Suburbs	HH System
1959/60 to 2007/08	MGD	MGD	MGD
Mean	92.9	145.0	237.9
SDEV	12.1	32.4	29.4
1970/71 to 2007/08
Mean	89.3	158.5	247.8
SDEV	11.4	18.1	21.2
1980/81 to 2007/08
Mean	85.4	164.7	250.0
SDEV	11.4	18.1	21.2
MWSA 1984/85-2007/08
Mean	84.6	165.3	249.9
SDEV	6.5	16.1	21.5
2002 BAWUA/BAWSCA and SFPUC
System reliability			239
MWSA Commitment	81	184	265

Chair Brown and Mr. Browne:

I have reviewed the tapes of the RBOC meeting of March 16, 2009 as
requested and would like to thank you for noticing my error.

I will be revising the minutes for 3/16/09 to note that Mr. Sweetland
was not present for the vote on the Master Water Sale Agreement and to
clarify the actions of the RBOC concern the Master Water Sales Agreement
hearing.

The 15 minute limit for the April meeting does not include public
comment.

The minutes will be amended to read as follows:
------------------------------------
Mr. Browne requested a presentation on the Master Water Sales
Agreement and the price of elasticity of demand.

Mr. Jones, seconded by Mr. Sutter moved to scheduling a hearing on
the entirety of the Master Water Sales Agreement in May of 2009.

Ayes: Chair Brown; Jones; Sutter
Noes: Rhorer, Browne
Absent: Sweetland

The motion to hold a hearing on the entirety of the Master Water
Sales Agreement failed.

Mr. Browne, seconded by Mr. Rhorer moved to schedule a preview
presentation on the Master Water Sales Agreement in April of 2009 not
to exceed 15 minutes including committee members questions and answer
period and to schedule a second hearing in May of 2009 for a
unrestricted and complete review of the Master Water Sales Agreement.

The motion to schedule a preview hearing in April of 2009 and a
complete hearing in May of 2009 on the Master Water Sales Agreement
passed.

Ayes: Chair Brown; Rhorer, Browne, Jones; Sutter
Noes: None.
Absent: Sweetland

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Victor Young
Assistant Clerk
Board of Supervisors
1 Dr. Carlton B. Goodlett Pl., Room 244
San Francisco CA 94102
phone 415-554-7723
fax 415-554-7714

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