street index in terms of how bumpy it is and for the park's clen lens anliness -- cleanliness and the values. with that being said, this is something that folks would resonate knowing that we didn't have violations. >> perhaps excellence is too high of a standard. >> it's our goal. >> we have set that objective. >> how do you measure that objective? >> that's really tough. i don't think this is how you do it. i think it's an important thing to tell people. it's important to not have violations. if we had violations, it's not that we are not excellent anymore. >> maybe we shouldn't use the

word excellence but let the readers decide it. >> it's not measuring what we are saying we are measuring. so that's a problem. you can change what you are measuring or change how you measure it. >> move on to item 6 dhz customer service mentioned which is measured by whether you answer the phone in 20 seconds. without being facetious whether you can use an answering machine. i can't say it's quality. sometimes if we have customer satisfaction surveys. a lot of places you call in and you say will you hang on and you hit a survey. if there was some other way of measuring the quality, not that we got there quickly but what

the quality of the response was, i think it would be more useful. >> as to the thing that started all of this which was the rate payer insurance policy. this doesn't help me assess whether we are meeting that policy or not. todd and i had some discussion about that and as part of the budget process what we are working on is a more detailed response to the policy. my interest was that this commission has spent a lot of time defining what it wanted to do, what the criteria were and the staff would work on that broad criteria and we wouldn't to have get involved in that. i want to make sure those expressions of policy don't go on a dusty shelf someplace but that we revisit and show an example of how we are doing. for example, there

are i counted 9 policies that we had laid out as part of that. some of them had two parts to that so you can make them larger. things like we should be sensitive to the notion of mission creek. we should be looking at whether we expanded our mission on this or not or whether the mission shrunk. that's an important element. they are working on a much more detailed check sheet for not only that policy but will is the community benefit policy and others that we can get through budget process. i think that will help us much from the commission standpoint understand whether our policies are being add hered to and to what degree and there is also the need to have possible in

that process a discussion. some of those issues are not yes or no kind of answers. a lot of them aren't. so we'll need to have some discussion on that. whether that discussion is best done within a budget hearing context anywhere we go through item by item and have discussion about that or whether that's more easily dealt with as a report that comes back. the nine elements of the rate payers assurance policy and do that for each of the policies we have and that's already being worked on by staff and that will at least give me a more detailed presentation of how we are doing that will be useful for my decision making. that's the end of my comments, thank you. >> we have grap pled with these

exact same issues. i appreciate your comment. as far as the 2013 timing, we wonder if it should be on the calendar before you during your budget deliberations and before the new proposed rate package as before you early next spring and in february. so that was part of our timing going back to commissioner torres question as well. >> thank you. so the next item is we sip quarterly update. i would like to have emilio come up. he has some news to share with everyone.

>> good afternoon commissioners, emilio cruz. i wanted to introduce this item specifically as you know miss julie lan bont will be leaving us soon and we have replaced her. dan came to us from montgomery watson who was vice-president and ran the water resources division. since coming to us he's woshthd -- worked as the regional manager to parks and $1.3 billion worth of work and the project that we are most in construction. it's a very good transition for us to move dan from the regional manager to the project director role and i hope that you will support him in his future role endeavors. thank you. >> i think you have also

answered one of my questions that will this be the last time that we hear from julie. >> unfortunately i will be out of town during the last two remaining meetings. >> that will force me to say nice things now then. >> i was going say nice things. >> let me beat you. first of all, i like to see people getting their just reward. you have given this enterprise and the city far more than a hundred percent for a long time. and you are having the opportunity to move on to a better opportunity i think is just wonderful. we will miss you but i think that's a wonderful thing inform are you. you have managed to inspire us with some of the work that is done for the water work people that is not part of the job description and not something that everybody does. you have

done that in an exemplary way and something that we have shared and had glory and paid for by you and you have also earned the highest thing we can give which is trust. you have been honest and a straight shooter and told us when things went wrong and you have told us when things went well and i value that a great deal. so we will miss you. we will celebrate your good fort tune but we will miss you very much. >> thank you so much. [ applause ] well, i would like to take a portion also to thank you for exactly that, your trust and the support you have given me since i took on the direction

back in 2006. i think your insist ence on transparency and accountability is a reason why we are where we are today. this has been trul the job of a lifetime for me and the reason why i'm leaving, i'm not sure, but i have all the confidence in the world that dan will do an excellent john -- job and i think it will be good for the program to have new energy and new leadership. certainly i wouldn't be where i am without my colleagues on the team. it's because of their hard work and dedication that we are now 80 percent done on the delivery on the $4.6 billion undertaking and people can't forget that. that's a combination of city staff and consultants. fortunately, whatever reason the file i have is not coming up. i'm going to have do this

with a projector in black and white. it's not a great way to go out but nonetheless. you will get a colored one in your packets. so this is the quarterly report for fiscal year 2013-2014. it covers the period of july 1st through september 30th. as you can see here from this pie chart we've now completed construction on 63 of our projects and those projects are worth $1 billion. during the reporting period, 1 project moved to close out and two projects were closed out. the majority of our work does continue to remain in construction but that is about to change drastically as in 2014 we are forecasting to complete six projects worth

$783 million. as with the last few quarters, we still have four projects remain in construction and that is about to change with the approval of the peninsula pipeline size eismic upgrade in october and that project will now be bid by the end of this month and the habitat restoration project which involves 12 contracts and only two of those contracts remain in preconstruction and one of those two will be bid by the end of the year as well. this is the latest cost trend. you can see we are reporting $7.1 million over the approved budget and primarily almost exclusively by the forecast of $9.6 million of the tunnel. that includes the purchase of

the property that is required to maintain ground water, watering operation that is needed. this is an asset that we'll be able to resell later on. that offset, that variance is partially offset by a predicted under run of $2.4 on the water treatment project. here is a list of our accomplishments. you can see that we have a significant decrease from the peak of construction activities which was last august. we are now reporting construction work hours to be 40 percent lower at it's peak. this is a strong indication that the program as a whole is coming down. during the water we achieved complete protection contract and final completion on the sun ol valley

completion of the water contract. with $5.7 million recorded work hours, we have a great record and we have continued to loss timeless than the industry average. we have been also very successful with our shut down record. we have now successfully completed 80 percent of the 185 shut downs that are required to build our 82 projects. what i would like to point out is with so many new facilities in 2014, the shut down requirements will remain high which does involve some operational risk. however this coming season will be our last big shut down season and i'm sure that dave briggs and richie will be very happy about that. we have one project

remaining in planning, two remaining in designs. out of the two in designs one is a seismic reliability and the other one is a water supply project. the one remaining is the water supply project the alameda creek capture project and you will recall we have significantly altered the design concepts of the project tied to the calaveras dam and we are currently on track to complete the planning phase and initiate the conceptual engineering phase. the pipeline project as well as the document we are now getting era ed to advertise this project by the episode of this -- end of this month and if all goes

>> well by 2014. the properties that are be required for the construction of 16 wells and finally we need to complete water supply agreements with our project partners. we are now evaluating that project schedule and we will be be able to provide an update with updated schedule forecast as part of the q 2 quarterly

update. now i will walk you through some of our project, starting with the calavera project, we've skaeftd -- excavated over -- in our last meeting we briefed some unanticipated geology conditions that were encountered on the left side of the valley on the spill way. since our last update we have issued a $7.4 million lateral order to keep the contractor working on that side of the valley and to prevent us from accumulating any major delays on the project. we anticipate getting a proposal from the contractor for addressing these new conditions by the end of

the year. we'll then probably need a couple months to negotiate that change order. so our goal is to have a finalized change order by march of 2014. i also mentioned in that last briefing that there are still some major risk in that project. deescalation rated risk should expired by 2014. however foundation grouting won't go away until 2015. we have some of the borrowed site material, the quality of the material and whether it's adequate for the hard rock fill into enter natural -- internal filter of the new dam and that won't expire until 2017 and the natural occur asbestos. a

little while to go on this project, certainly. construction of the ifrg ton tunnel is now scheduled to complete. i told you about the second segment of the tunnel. the installation of the internal pipeline is to begin later in november. we are anticipating to complete that in february 2014. from there we'll need to grout the annular space and apply the mortar lining inside the internal pipe. all of that should be done by -- september 2014. on 2014 progress we will work with the water enterprise tenant -- contractor and the inspection

of the tunnels. the inspection will take place of 2014-2015. it should be noted that we'll seek your approval for the schedule and budget year during the first quarter of 2014. bay tunnel doing very well there. 91 percent complete. as i mentioned, we completed the installation of the interior pipelining in september. last work elements remaining in that project involve grounding of the space and mortar lining in the interior liner and the existing pipelines. all to be completed in july 2014. seismic upgrade of pipeline no. 3 and 4 is now 42 percent complete. this project is involved in a construction of a

new seismically designed conduit using the standard cuts and cover method and the segment of the line crossing traces of the hayward fault is being sized. we have 90 percent done with the cut section. a couple months ago i informed you that while we started the excavation that we found some traces of the hayward fault we are about to start the excavation that will complete their investigation on these previously unidentified features. we should have a

report by urs by the end of december with a recommended fix. it could be minor, it could be significant. it's still really unclear how much of an impact these new features will have on our new design. once we have the recommended fix. we will pass that along to the contractor who is going to need to submit a proposal and only then will we know the magnitude of the impact on schedule and budget. i anticipate that on that project, we'll have an idea of the impacts some time in the first few months of 2014. two more projects both in the peninsula. cfsa transmission upgrade. that project is now 80 percent done. we are currently, we have completed work on one added in each of the

reservoirs. we are also well along on the work at the crystal springs pump station. by early or first month of 2014. we will have completed work on two outlet structures in the san andreas and the pump station as well as the lower cover under the upper crystal springs dam. all that will be remaining is one outlet in the crystal springs reservoir which will be completed in 2014. what i would like to mentioned is that a lot of these facilities have the ability to move water. so operation has not been impacted significantly by some of the these project difficulties. still some remaining in relations to the under water work that has yet to be completed on the project.

i have been very happy with some of the progress made on resolving some of the various outstanding changes that we had. there is definitely a positive momentum on that project now that has been established in the recent few months. finally harry tracy treatment plant, that project is 62 percent complete. we are in a major critical shut down that will extend through december. by the time we are done with that shut down, the plant will have a brand new ozone system, the city personnel will have the ability to move back to their facility after being in a trailer for a large amount of time, storage tanks will be completed and the zip lining of the line will be completed as well. work on the

large treated water reservoir is also on going. you should know that we have two major plants shut down remaining on this project and the first of those two will be initiated in march of 2014. we have made up the time on that project and we are now tracking to complete as planned. i happy with that progress. so that completes my presentation. any questions? >> i would like to say it's been a pleasure to have you with us and get us out of the mes we are in. i'm trying to go back to 2000, the bond issue was 2002, but it was really rocky road. everything was upside down. so giving us the

data of 06, things have been rather smooth since then. thank you so much for your service and devotions to the project and the we sip program and as you know, i have decided by granddaughter is going to be an engineer to model after you. >> that's a great compliment. >> she wants to you subsidize the education. [ laughter ] . i just want to say a couple words of thanks and appreciation because i think it's remarkable what you have been able to accomplish here at the puc and the program and how your mind works with all the engineering challenges and opportunities. it's really been remarkable and i also want to echo commissioner moran's comments. i wish you well and

hope you will visit. >> commissioner torres? >> julie, i wish you all the best and thank you for being part of a community of public service commitment that all of us share here in various degrees and forms. it's not easy to be a public serve -- servant. we'll have to wait a little while. but at the end of the day you truly are a role model for women and here in the city of san francisco and county. you are a really species. the better we can encourage everyone in the

public. >> i want to comment on the experience i have had with julie. i would go into her office and she would talk about i think an rfp, it was great talking to you because at that time you were just straight up about your intentions and it was just transparency and the project that you are working on and you went away for a while and when you came back, at that time it was tony irons and susan and we talked about hiring a director and there was the talk about the person we should put in place and i knew julie was the perfect fit and the person that would take complex ideas and report them

simply so people can understand and gain the trust. i think shooes -- she's done such an outstanding job and made my life a lot easier. and the trust that everyone has in her she's going to take that where she goes. if anything your stock is way up and you make sure that people pay for your experience that you have because you are just an asset. dan, you have some big shoes to follow. [ applause ] >> hopefully we'll be able to invite you back to a meeting very quickly. >> the last item i wanted to briefly talk about. i'm very excited we have the opportunity to convene a meeting in washington d.c. in october 24th

and 25th. this was a meeting that we invited a lot of leader in the utilities agency and we wanted to talk about some focus high level concentration on things that keep us up at night and we talked about innovation, technology, business practices and translating the value of our essential services and getting water on the national agenda and redefining the roles that we have in communities. basically i cohosted this along with george hawkins of dc water and tony parrot at the greater cincinnati sewer district. we had about 30 people attend. we invited 19 general managers and senior staff and talked about

water and waste water conservancy. we ended up focusing on dialogue on work force development was one of the major components that most of our agencies faced. we talked about succession planning and preparing, attracting and retaining the next technical as well as managerial roles and labor and contracting practices and invited jones about how we can get this message out to get some traction to the public and policy makers. it was interesting. he talked about coming into a room where there are organizations that have billions of dollars, employ a lot of folks. we should be excited about telling that message that we are actually a