example of trying to stay on track to keep the project moving in what is a very good bidding environment. we have adequate authority to do that. >> commissioners. i will entertain a motion. >> second. >> moved and seconded. any public comment? >> there has been a motion to move and except on item 13. the ayes have it. >> item 14, discussion and possible action to authorize the general manager to negotiate

and execute a memorandum of understanding with the san francisco recreation and park department for the delivery and application of recycled water to the sharp park golf course. >> this is a product that we had put on hold a while ago pending the resolution of the issues, is that correct? >> the timing was that we had put it on hold and we were looking for a policy. they made the decision to do this and continue with the golf course. you gave us several authority to go ahead and authorize the beginning of the work.

where do we leave the water? if the policy decision to go ahead was made and our decision to go ahead and have the recycle plant in place, do you have the date of that? >> recreation took the matter under consideration in 2009. >> i could not find the basic business terms. >> the basic business terms

through a variety of funding sources, the north coast -- north coast county is delivering water to certain neighborhoods in addition to sharp park. you will assign the responsibility to rec and park for the mitigation measures that are contained in the agreement that we signed with north coast. the recreation and parks department, they would be paying the north coast county water

district lowered costs compared to the capital component for that. >> recreation and parks is find the water not from us but from north coast? >> they pay a charge for existing water. they would basically be paying the constant and a charge for the water that is being generated. >> we are basically not part of the deal? >> we providing money for the construction of the recycled water project that it would be delivered by the -- water district. >> there is no direct offset. >> we consider these a demand

because our water is going there. >> ok. >> so there would be an offset. >> yes. this would be about 3 million gallons a year or about 80,000 gallons per day >> right now, we are providing water and an agreement to north coast. the recycle water would be substituted for that. since the water would not be ours, there would be no reason for that agreement with north coast. >> they would be paying in effect for the water to be delivered to them by north coast.

>> ok, this basically stacks up as paying $52 an acre foot. >> yes. wives and i am curious about moving forward with our projects. how does this compare to golden gate park? >> this runs closer to $8,000 a foot. >> this is closing to $100 per acreslashft. >> any further questions?

>> before we close in go to public comment, can i get this in the back of the project sometime when you have a chance to for this is just a project schedule. >> hang on a second. >> the mou is between puc and rec and park for operations and maintenance? >> correct. if you can turn to page four or five, that is actually the list of things which are a retrofit of the irrigation system and training the staff and guaranteeing that there would be a site supervisor and testing

and inspection. these are what we have agreed on behalf of the city. this assigns the responsibility to parks and recreation. >> these are the mitigation measures. >> correct. >> these are the agreements that we had and we are now transferring or allocating to parks and recreation? >> correct. >> the item shows that would it would give the general manager the response -- the responsibility to negotiate the mou. the wording on the agenda is slightly different from the final wording. >> that is what we will be

voting on. >> correct. >> are there any further questions? is any public comment >> we have three speaker cards. >> public comments on item 14. >> good afternoon, commissioners. we advocate the protection of national parks. a thank-you for your work on the conservation efforts. i am here to express concerns that the puc is considering authorizing agreements for the golf course which is within the boundaries of the conservation

area this is the project that has been known and documented by the fish and wildlife service. we are concerned with this potential action. this came up in march of this year and april of this year. north coast county wanted to know should we move forward with this project because there is ailing real issue here on the golf course. we are not aware of any policy to the continued to call for.

how could the water continue elsewhere? this is a serious matter. there have been notices to file in the city of san francisco for the care of these issues. why am not clear what the role of puc is. this project is unresolved. there are other organizations that can share their thoughts with you. this continues to be unresolved. the city of san francisco has had to work with the agency's. this is clearly not a policy directive. that is what is going on right

now. we know that your response to public comment, this could be directed elsewhere in the project changes. this is it part of the overall project. i believe that 80% was directed towards sharp park. it would feel fortunate to have federal funds not spent towards this project. this is also quite water intensive and the restoration may not have that same use. thank you for the discussion.

thank you for your time for conserving water. >> hello, i'm a resident of san francisco and i'm concerned because we would like to authorize a general manager to negotiate a memorandum of understanding with the parks department for the delivery and application of recycled water. i don't oppose using recycled water in place of drinking water for non drinking uses. the substitution must be. this would be designated for a golf course.

we have no resolution on the future of the park. the san francisco public utility commission should not authorize the commission. in the public utilities commission should insure that the water is constructed and the delivery contracts negotiated or require you to deliver this to other uses. it is important that the contracts include other uses for the water including when the future of the park is not yet determined. i have a letter from the alliance. "dear commissioners, this is a request that the commission delayed a decision about the project. we did not support wasting public money on water for a golf

course. the golf course is illegal and in our mental problem. the coast is continually -- the golf course is illegal and has environmental problems. we urge you to delay the decision on this project until it can be redesigned for flexible use by other customers, not as it is now. you can contact the alliance and the information -- you can contact the alliance for further

information. >> i am an undergraduate at the university of san francisco. i am not against recycled water use. i did not agree with giving the part the majority of the resources. even if the golf course remains, the facility is adjacent to a wetland community. it seems counter intuitive to jump the gun on the undecided future.

>> thank you. >> i would like to point out that i have been following this issue for a couple of years. if you consider this finished, that is inaccurate. there are lawsuits pending. all of the organizers and the supervisors are planning to look at what changed. the plan that was currently put out is not consistent with an

endangered species restoration plan. how in the world you can continue with a golf course plan when the park service said that is unreal. that is not what will result. this will be nine colson is any and there will not -- there will potentially be none. -- there will be nine holes. you have a profound responsibility when it comes to endangered species. they will be front loading this issue.

unless the decision is postponed until they have decided what will happen with the golf course and the park, this will potentially favor an outcome if you make a decision right now. i would strongly urge you to hold off on this and wait until not just conjecture but until this issue is resolved and we know it sadly what the disposition of the park will be like. there is no reason to prematurely to this parks and recreation at been aggressive -- there's no reason to do this prematurely. parks and recreation have been aggressively pursuing this. thank you. >> colleagues.

>> if the land use changes, what is the ability of the facility to redirect the recycle water? >> i would say the capacity to redirect recycle water would be possible but severely limited. they can pump this into a and existing committee but this would be very expensive. it is possible to do this but it would be high cost. -- they can pump this into an existing community. >> is 80% the correct number? >> yes. >> it sounds like the decision on one hand has been made but

there is some conversation that there could be reuse of the land. >> there are allusions to things like lawsuits and plans nothing that has come to us. we have checked with parks and recreation today. there is an action to deal with this piece of it. >> this would be a $30 million per year offset. >> of water that is of retail demand for us.

>> the endangered species question that comes up, those medications will be addressed, have those been addressed. >> as far as the golf course, those have not been addressed. we have not looked at this either with a golf course or the different types of land out there. >> what would happen?

>> nothing would happen. we are already on the hook for a contract that we of sign that says the city of san francisco would do those things. this would have to be taken by the park commission. >> the public utilities commission would be obligated rather than parks and recreation? >> what is the status of the environment impact report from parks and recreation? >> they are not doing one. >> what form of jeopardy is out

there? would this be if that they would not do what they are replanted to do? >> or if this is someone else. this is nine holes, 18 holes, is this no golf? those sort all potential problems. no one has stepped up with any money to do any thing with where it is today. that is one of the concerns. there might be a discomfort with that. we are working with water. >> as far someone being able to change their mind for them.

nothing has happened at the board of supervisors to change that. legally, they could make that decision. >> there is no statutory time? >> we can change this. if for some reason you would like us to provide more information about what official actions were taken and what the dates were and to clarify the history of what has occurred, i would be happy to do that. >> does the agreement -- let's say that parks and recreation decided to do something. assuming that something else

happens, do they have the ability to use this form on irrigation purposes? >> it would depend on what the use was. making use it for irrigation. if the project it not go forward, they would change into an irrigated use. >> if they were to build development there as an alternative, that is a public issue. >> this can only be used for part or public service.

>> this is really not an issue. i think that we should move forward and pass this. i think that this provides a very important source of water that is something that we should be looking at in the future and that is based upon your words on how this should be used. >> i'm not a huge fan of golf courses. they use a lot of pesticides and water. i have questions about this project and could this be

converted to an open space side down the road. what happened to that facility? could this be used? i feel like it don't have quite a bit of information. that is where i fall. >> i am concerned about the use of the land and the agencies. if we pay for a facility that has no revenue extreme, this is kind of like a fine -- like a

bond issue. frankly, my sense of the process is that none of these issues are new and they have considered them at some length. my concern would be have we taken the steps that we should take to protect the investment to the facility so that we don't end up with a white elephant. we are not sure about if this was anticipated to change. >> te