item 12, the discussion possible action to approve the plans and specifications and award water and a prize water system approved a program funded a contract, the calaveras dam replacement project, a joint venture to construct a new earth and rock fill dam to replace existing calaveras dam in alameda county and perform project-related work in santa clara county. >> commissioners, and julie -- i am julie labonte. sometimes we get complacent, and we get a lot of approvals, but it is good to sit back. but we were very pleased with receiving five bids on this key projects. the lowest bid turned out to be

responsible responsive, and we are pleased to secure approval for the award of this critical contract. i would also like to point out by the way that the winning bidder did commit to a participation of almost 7%, which was higher than the goal, which was 5%, so i think this shows a good favor. >> do you have a specific question? or would you like me to take you through a general overview? do you have a specific question on the process, or would you like -- newmont --

commissioner caen: just to read it through it. >> to be able to complete the work. the apparent low bidder did not submit or we did not find when we went back and look at the documentation that affidavit. the city attorney's office reviewed all of the documents and the specifications as well as the law on the matter, and they deemed that it goes towards its responsibility to perform its work, not its response of was, so we deemed the protest without merit. vice president moran: commissioners? any of the questions? public comments? >> a great project. so please do got here. kudos to your staff -- so

pleased it got here. vice president moran: thank you. commissioner caen: i would like to make the suggestion that we add something to the resolution, and this goes back to my desire for more storage. when this project first came to was, which was in the year 2000 perhaps, i wanted the dam taller, of course, and under the description of scope of work, it is stated, number one, that the design that could accommodate its enlargement but future generations -- i would like that wording put in the resolution because the scope of work can change, and i want to make sure that this is constructed so we can make it larger in the

future if need be, so i would like to add in the last result where it says "approved plans and specifications which includes a designs that could accommodate potential enlargement by future generations." vice president moran: ok. we have a motion and a second. any discussion on the commission? any public testimony? [laughter] any other public testimony? ok, i have a motion and a second. all of those in favor the motion carries. a contract for a little over quarter of $1 billion.

secretary housh: mr. president, perhaps the next two items -- wait a minute. i have lost myself in the agenda here. vice president moran: mr. secretary, let's just do them one at a time. secretary housh: i know of 13, -- i the number 13, discussion possible action to approve additional increases to the cost and schedule contract contingencies in the amount of $339,000 for a total amount of almost $3.50 million and 705 consecutive calendar days.

vice president moran: commissioners, we have the package in front of us. would you like to have the presentation, or do you have specific questions could ok, then if i could have a motion? moved and seconded. is there any public comment. secretary housh: we have no speaker cards. vice president moran: ok, the motion carries. secretary housh: the next item would be item number 14, the discussion possible action to approve increases to the existing contract cost and schedule for water and a prize, water system improvement program hh-935a, and to authorize the

general manager to consider it is appropriate to approve my invitations to the contract amount and duration for a total of over $16.50 million in 621 consecutive calendar days. vice president moran: ok, do we have questions, or would we like the presentation, or should we vote could -- we vote? do we have a motion? at a second? is there any public comment. -- and a second? is there any public comment? secretary housh: we have no speaker cards. vice president moran: the motion

carries. secretary housh: i no. 15, the discussion possible action to approve modification number 92 water enterprises, water system and prevent program funded contract number with a time extension greather than 10% of the original contract duration. vice president moran: 80. commissioners? any questions? -- thank you. to what have a motion? -- do i have a motion? commissioner caen: second. vice president moran: a motion and a second.

secretary housh: we have no speaker cards. vice president moran: all of those do we have anything for closed session? secretary housh: i do not believe we have any, so if you wish, we can take that off of the calendar. then we can move to additional new business, item 21. vice president moran: ok, commissioners, is there any new business? hearing none, do i have a motion to adjourn? commissioner: adjourned. commissioner caen: seconds. vice president moran: all of those in favor? the motion carries. secretary housh: we are adjourned.

>> welcome to the department of

building inspection brown bag lunch. this is a series we run on the -- every month. we talk about topics of general interest. we are going to talk about the subject that comes up when people get permits. and my going to be able to recoup the value of the work to do when a property? how does my improvement or repair affect my property about you? we have guests today. jonathan, thanks for coming. james, and alice. alice is a neighbor. thanks for coming. i have a big hand out of stuff about what other people think values might be when you do work on your home. san francisco is a different world, isn't it? >> we have so many micro

districts and pockets of different the used within two or three blocks. answering the question for one house may not always be the same as answering that question for different house. >> give us an idea. if you get a view, it will be different -- >> shore. the value of a simple remodel verses a very fancy kitchen remodel in a house that might be worth more than a condominium. those things can matter. it can make a difference. >> we have a request from one of our viewers to make sure we talk about -- home-improvement results and building taxes. >> accessible. >> the other thing that might be brought out his people over- improved.

there is a fine line. i recommend that my client or anyone talk to realtors before they start. it is a good idea to get an idea of that neighborhood, that house, and how it can be done. >> page 22 of the handout, spend an hour with the pro. talk about what the value means and how it will add value to your home, or if it will be over spending on something that maybe you can do without. >> exactly. >> it is very important to know why you are doing it. are you doing it to add value? will you live there for 20 years and you want a nicer kitchen? it cost $20,000, but only as $15,000 in value. it is different than if you want to sell it in three or four years. >> i had a lady who bought a couple of units and wanted my

opinion years ago. she had an old victorian with an old brick foundation. she was absolutely convinced that the foundation had to be concrete and had to be concrete tomorrow. it was the first thing she did. she had different people, and look at the way she could do it. someone convinced her she should really be fit up and do it to the degree that she could add another unit or another living space down the line it see -- if she so chose. against my advice, she probably spent over $100,000 on pouring concrete down there. it sits there as an empty shell of a basement, which is sort of useless, really. i think you can get expert opinions from many different people, and the value question is a different question than an expert opinion on a particular subject. the value question is a question of the value of the property. is it over-improving?

sometimes the contractor will tell you otherwise. the value is probably for a salesperson. >> that is something john wrote out. what value? value to you? value to the appraiser who comes in in one month? value is certainly individual. we do see houses, unfortunately, as james as saying, that may be beef up the foundation, but there are so many that just do -- that don't do anything behind the walls, which is an issue for us, that when we go when their -- people buy it, but we have to really make sure the homeowner is aware of both. >> something else that is a typical misnomer, i think, remodeling my house, doing a quick renovations before i sell

it or try to market it might increase its value. not necessarily always, and not necessarily in all instances. one thing that -- you know, there are different levels of that. it is so important to get professional opinions about your true goals to see if your goals for doing a major improvement for a minor improvement on your property, if those goals line up with the market situation, and how best to reach those goals. maybe there are ways to reach those goals for you, in a personal way that may not involve the heavier remodel. >> let me mention a couple of things. people are coming in to replace a profound asians and to other work that they believe is necessary -- profound foundations and do other work that they believe is necessary. they do things they think should be done that are actually -- where the money could be better spent if their goal is to

improve the structural quality of their house. they would have a better improvement curve if they put it in the ground floor or roger area. -- or garage area. >> i see people who have undertaken various remodels without benefit of proper permiting. one of the key questions that is always asked, i would like to have your opinions about, which is, what is the relative benefit to doing work to 1's home prior to sale, with kermit, verses without a permit? is it a good step to take to seek to legalize things that were done in the past that might of been done without a permit? essentially, what percentage of the value added do you get from your kitchen remodel it you haven't got a permit for? >> are you saying this is already built? they want to know whether they should do the permit or not? >> most often, i find it to be

the former. the latter does come up. people do considerate. usually, it is whether you will go back and permit something that was done illegally. >> that is really tricky. it has a lot to do with the expectation of the amount of money they will get for the property. you have to disclose, disclose, disclose in that case. it has happened to me before. it is mainly because you cannot see what is behind the walls. you can tell that to buyers and sellers. buyers should be concerned about what the electrical looks like, where the plumbing is, what is happening to something that has not been permitted. it could be just fine. owners will tell you that i had my uncle joe do with and he is a plumber and electrician, but we did not want to spend the time and money to do the permit

process. that is fine, but it is hard to convince a buyer. it will have an affect on the value, no question. if they want to go to the process, great. i have had sellers require them to go through for a second bath for something that was not permit it. everything was done properly. a contractor owned the house and got it permitted. it was not a big deal. everything was done properly. he could do it. they should find out what the process will take. it they are doing new work, definitely. people are looking at everything. they scrutinized things. if that completion is not on their, their concern. >> report of residential record, it's basically summarizes what is in the building department records about work that has been done, and required documents that are disclosed from a seller

to a buyer. james? >> it is a big topic because everyone knows that -- we used to say 60,000 illegal or unauthorized units in thant of those that exist. people live in them. what does that mean? probably, they were built without a permit, or the use of them is a not-permitted use. it does not necessarily mean that work done to add a room down in a basement behind de garage was done without a permit, but the actual use of the finished space might be a non-authorized users, non- permitted use. >> you might have -- >> you could have a room downstairs. you could have a sink in the

room as a family room with a wet bar, maybe. the city starts getting funny about that kind of thing. it sounds like an illegal unit already. it is not always a bad thing. i would not say that in many instances, legalizing -- "legal" is a strong term. in our business and sales business, we try to avoid that term. it has many implications. to say something illegal is -- to say something is legal or illegal has a lot of implications. we cannot really say. we can say it does permit it or not permit it. what is or is not authorized is a different statement. we have to be mindful. one thing i wanted to say about jeremy pose a question was, there are quite a few very good people in san francisco to go to if you want to legalize something that had been done without a permit in the past, or you want to get a permit for

every model that was done or a bathroom that was added downstairs without a permit, and you feel like your uncle maybe was -- may have done it properly. oftentimes, it is no big deal. it is a good thing to do. there are many companies that specialize in doing just that. you can do that. it depends on your goal. if your goal is to sell the property or to avoid neighbor complete -- there could be two different goals with two different results, choices about how you go about taking care of the bathroom that you built in the basement without a permit, or you might do nothing. that may be ok, too. >> the question was focused related to value. >> ok. the hypothetical of a kitchen remodel, high-end to remodel that was done without the benefit of permit. what percentage of value are they leaving on the table by

selling that without benefit of a permit? >> i think in my experience, which is less than alice in chains, eight times out of 10, in a residential -- which is less than alice and james, eight times out of 10 coming in residential unit, you can convince them it is ok. when there are multiple units involved, or there is an illegal in law, you are dealing with more value issue. a kitchen or bath remodel, in my experience, it does not seem -- people are not as scared of that. >> when you buy the building, you are buying the problem. you are buying the unit without permits. hopefully, it was disclosed at that time.

>> there is one example of a property, a $3 million property, and they had never gotten their completion of it. the other thing i would say, it depends on the marketplace itself. today -- at that moment in time, we got a buyer. they took it without a completion. we disclosed as to why there wasn't. it had to do with the fire escape. the buyers took it on. we were very clear. when it was going to be sold again, two years later, i got a call from the agent to ask me about a property. we are involved forever, in some cases. they bought it. today, it would be a different story, i think.

the other thing about the illegal rooms, if it is obvious to the appraiser -- the appraisal is a big thing for us now. if it looks legal, he might count it as a room. otherwise, he may not count it within the square footage. that could affect the value. but looks legal, he may not go unchecked. no window, someone is calling it a room, there is going to be a question of value. >> another big issue in san francisco, or questions of value with regard to if there is a permit or not done for certain work on a property, has to do with the future of potential and someone's intent to condo- converted building. that is a big one. there was a two-unit building where a tax was built -- a deck

was built without a permit to be used as a recreational deck, but on the building plans that were approved by the department of building inspection, there were the -- there was the deck shown. the railings on the plan around the surface of this roof deck -- there was a staircase to get up to this, but there was no -- so we had a problem because the building inspection that was done for the sale of the property by the buyer indicated that, well, this cannot be permitted roof deck. in digging around a little bit more, we found that to be true. this is a two-unit building that the buyer intended to apply for a condominium conversion that some point in the near future. that was a big deal for them.

what they found out in their search was they would have to remove what was there or find a way to add a second means of egress. that was a $10,000 problem. >> i think any to chip in your. things have changed about second means of redress for homes. only one exit is required for each unit. this created that. >> we go back to their units, my friend rented out, but has never complained about it too many people. what kind of problem could my friend get in this kind of situation? >> [inaudible] >> there are endless problems you can get into renting an illegal unit. you are an attorney. you want to talk about that? you can leave it open.

>> i will leave it open. >> their problems related to the city and planning enforcement, probably related to the tenant, who has rights to implied warranty of have the ability, and all the other things that tenants are deserving -- tenant desert. is the land blurred permitted to collect rent? -- the landlord permitted to collect rent? >> [inaudible] >> that is an excellent point. we will talk about the value. let me say, if it has existed for a long time, that does not make it ok. it means they got away with it for a long time. that does not mean it is ok because it has been there 30, 40, 50, 60, 70, 80 years. that does not make it ok. >> they can come in and kick up a tenant in clear out all of the room? >> we do not inspect those on a

routine basis. we only look at them if we receive a complaint. we do not kick the people out. retell the property owner, you have this problem. you have to figure out how to solve the problem. legalize the unit. they can make some other change. >> anybody can come in and make trouble? >> they can. >> when we go to sell a property like that, if your friend wanted to sell the single-family house and had a tenant in the legal unit, if we write up the statement we hand out to all the people that come in, this has happened a couple of times that we put a legality of the unit on known by the owner and agent, or illegal, that was the term we used to use, and the neighbors see that, some of them could be angry and call the building angry and call the building department at the time of sale.