please stand by. please stand by. please stand by. please stand by. >> good morning, welcome to the

budget and finance subcommittee. do we have any announcements? >> all persons attending the meeting are requested to turn off their cell phones and pagers. if you have a speaker part, please place them to the box to your left. items taken of the full board will be taken next week unless otherwise indicated. >> thank you. please call items 1 and 2. >> hearing to consider release of reserved funds, san francisco public utilities commission (file no. 081453, ordinance no. 311-08), in the amount of $170,549,282, to fund the construction for the water system improvement program (wsip) project cuw37101 - crystal springs/san andreas transmission system upgrade. item 2. resolution adopting findings under the california

environmental quality act, including the adoption of a mitigation monitoring and reporting program and a statement of overriding considerations related to the crystal springs/san andreas transmission upgrade project, part of the water system improvement program for the improvements to the regional water supply system, otherwise known as project no. cuw37101, including the mitigation habitat actions at two sites in san mateo county; and directing the clerk of the board of supervisors to notify the controller of this action. >> good morning. i am a project manager with the assets puc. i will give you a brief presentation on items one and of the vote. the project we are talking about is the san andreas transmission system upgrade. this is part of the program. the main objective is to increase and improve the seismic and deliverability of

the facilities. the crystal springs and san andreas system provides for emergency and supplementary water supply for the san francisco peninsula by moving water from the various reservoirs and feeding into other locations which would then be traded through distribution systems. the system consists of three primary reservoirs, the upper and lower crystal springs reservoir, the san andreas reservoir. there is a major pump station -- thank you. pump station, pipe line, and various other facilities. this map out lines the system.

san bruno is over here. the full extent of the math is about 10 miles. the shaded green area is the watershed we are managing. the project consists of three major components. one is the replacement of the existing pumping station. the second one is various improvements in seismic and various facilities. a third component is a substation from pg&e. this is the status of the environmental review.

we have released the eir back in november, and we closed the bid. eir was considered by the planning commission and certified. sfpuc adopted it on may 11. budget and funding. the total project cost estimate is $192 million. certain cost is estimated at $147 million. we are in agreement with the budget analyst recommendations. for corporations. major milestones of the project. we total lies the construction bid last june.

we expect it due on august 12. we extended the bid psycho because of the complexity of the projects. we hope we can achieve the award in september and begin in october. in total, this will be about 36 months at a totatotal construct. construction would be finished a bit earlier in october 2013. >> how many proposals have you received so far? >> we have not closed the bid to get, so we do not know. i will be happy to answer any questions. >> thank you. let's hear from the budget analyst report >>.

>> inadvertently, the commission requested a release of the fund unreserve for construction costs. normally, as the department indicated, construction bids are just around the corner. normally, i would have recommended to continue this item until you get the construction did, however, the department pointed out that that would delay the process. our recommendation is on page 6 of the report. we recommend you put this on controllers reserve and any difference between the construction bid amount and the estimated cost of the project would then revert to budget and finance committee reserve. of course, we recommend that you

reduce the requested release by $22 million for the reasons that i mentioned. that was just an error. we also recommend you adopt the seqa findings. >> thank you for the report and for your presentation. we can open this up for public comment. seeing none, public comment is closed. i am told that there is some concern about the water quality as an effect of this. q you have any information? >> i do not. i understand the water quality bureau will be looking into it. i do not have any specific information.

>> assistant general manager, cfo. the water supply is completely safe. we have been working with the scientific community to review accumulation of mercury in fish. there is some natural levels of consumption, in lower levels species, bottom feeders. our water, however, has no signs of measurable or jury. >> do we know where the source of the mercury is? >> it could be naturally occurring. it could come from particular matter selling into the stream bed and then into the soils. as fish feed on the bottom and consumes soil, lower level plankton, matter, they could

accumulate in the fish. as far as the water goes, while the fish swim in the water, it is not a function of the water. it is safe and we are not reporting immeasurable level of any concern. >> thank you. motion to except the budget analyst recommendation. moved with recommendations. without objection. madam clerk, -- thank you for your presentation. we look forward to hearing from you again. madam clerk, item 3. >> resolution authorizing and directing the port executive director to execute the third amendment to the maintenance and management agreement between the

city and county of san francisco and the redevelopment agency of the city and county of san francisco for the maintenance and management of rincon park by the port, extending the term of the agreement from june 30, 2010, to june 30, 2013. >> thank you, terry avalos. --chair avalos. the proposed resolution looks at need agreement between the port and redevelopment agency. this is to extend the term from july 1, 2010 to july 30, 2013. this agreement was first executed in 2003 to accomplish the park improvements in the ring, park development plans. under the existing agreement, the port is maintained with maintaining the park. the four phones and the land. the cost is approximately $219,000 annually.

we are here because this third amendment extends the terms more than 10 years. we agree with the it budget analyst recommendations to provide for retroactive approval and to change the date of the extension. i am here with david to answer any questions you may have. >> mr. rose, if you could share the report. >> the only thing that i would add, as ms. forms indicated, the estimated cost under this amendment are about $190,000 annually. that is the money that would be reimbursed by the lead development agency, together with the developer in the board. our recommendation is to amend the resolution for

retroactivity and to stay the correct extension period is july 1, 2010, instead of july 30, 2010. so it would be retroactive to that july day. >> thank you. we can open up for public comment. >> walter paulson. the port commission and rincon park and was not july the port commission and rincon park you are fixing it up good for everyone we are going to have a good time will you help us fix it up i hope you will

the port commission and rincon park. >> thank you. if there are no other members of the public that like to speak, we can close public comment. move forward with recommendations. without objection. thank you.

>> thank you for coming today. we are here to celebrate the passage of the first phase of the mayor's development stimulus legislation, and with that, i would like to just introduce the mayor. m