require much more extensive stickler involvement process. supervisor chu: you said calaveras was the last such banter regional project remaining? >> it is the project currently overall control the overall completion of the program. supervisor chu: thank you. do we want to go to the calaveras projects? >> good morning, supervisors. i am the regional manager for the water system improvement manager. i am also a project manager for the calaveras dam replacement. if we could go to the map, thank you.

as you know, the calaveras dam and reservoir key components of the regional water system, water stored in calaveras is merged with water from the hitachi valet for delivery to customers in the east bay and elsewhere in sent to cisco. the existing dam is located in the southeast bay area, near pleasanton. approximately 132 square miles, of which approximately 3,500 acres are owned by the city of san francisco. east bay regional park district runs a park that is north of the reservoir, which is our closest neighbor in the vicinity.

the dam is located one third of a mile from the calaveras fault, one of the three major earthquake faults in the san francisco area. the calaveras reservoir is the sfpuc's largest local reservoir, allowing a storage of almost 100,000 acre-feet of water. it provides 40% of the local water storage and 66% of the local water yield for the regional water system. in 2001, the sfpuc lowered water levels in the reservoir due to seismic concerns and a mandate from the california division of safety of cans, due to concerns over the seismic safety. the reservoir is currently operating at about 40% capacity. this is a perspective from about 2,000 feet above the wilderness. the existing earth and rock

filled dam is existed here. it was completed in 1925, modified in 1974, to increase the seismic stability of the structure. however, as the years has passed and our knowledge has increased, we know now that the than the to be replaced. you can see the bathtub ring around the reservoir. that represents 50 feet of vertical height of water storage, about 60% of the capacity. the proposed project would simply restore the water level to its historic capacity. this slide shows the existing ban on the left. it was the largest earth-fill dam in the world when it was completed in 1925. the rendering is shown on the right. the new dam would be built immediately downstream of the existing. the existing dam would be used -- there is a coffer dam that

would be used during construction. essentially, that would hold the old stand back, so that we can build a new one downstream. the lower picture is a cross section to the existing dams, showing the zones of the material that we use in construction. project purpose is to replace the existing band with a damn that meets the current seismic safety standards and can accommodate a future enlargement, if future generations decide. upon completion of this project, the division of safety provision would be lifted. the project would help meet the level of service objectives for the overall water system improve the program. -- improvement program. the requested action before you today are to release the reserve of $330,000,000.500 $10,000 to

fund the construction and related cost of the project, to adopt the findings under california environmental quality act, including the mitigation, monitoring, and quality program. and to direct the clerk of the board to notify the controller of these actions. i know you are aware we have received an appeal on the ceqa findings from the east bay regional parks district, which was filed on february 14, 2011. as we will discuss in closed session, sfpuc has reached a settlement with the east bay regional parks district, and will be forwarding the settlement. thank you. supervisor chu: thank you very much. is there further presentation with regard to the ceqa item? >> i did not necessarily prepared to speak to the ceqa

item in detail, but i can certainly tell you, the draft eir that was prepared in 2009 -- we received a lot of comments on that document. in particular, the fishery issues in the alameda creek watershed were of great interest to a number of groups, other resource agencies. as a result of responding to comments, we developed the calaveras dam project variant, which is a variant of the original project which incorporates specific actions to improve the access of steelhead to the alameda watershed. steelhead trout have historical used in alameda watershed, have been blocked from that portion of the watershed in the past eight years or so. the sfpuc has been working groups diligently to restore steelhead to the watershed. as part of this project, we will

be releasing significant additional flows into the watershed from the dam as well as from the alameda creek diversion dam. we will also be constructing a fish ladder around the alameda greek diversion than to allow passage of steelhead trout, past the diversion. we will also be installing fish screens to prevent entanglement of the steelhead. that was a major topic of discussion. with respect to the east bay regional parks district, they have brought up a number of issues that are related to traffic concerns, access of their personnel to the park, perception with respect to asbestos at the park, and a

number of other concerns they have brought to us regarding recreational impacts they perceive that the project would have on their operations of the park. from the full board next week, the planning department will be making a presentation demonstrating the adequacy of the eir, to address all of those issues. there are reported medications in place to address all of those issues. -- appropriate mitigation in place to address all those issues. however, puc recognizes there are some coordination actions. we have developed a settlement agreement to address those concerns. supervisor chu: thank you. let's go to the budget analyst report. >> madam chair, members of the committee, towards the bottom of

page 6 of the report, we note the $6 million in construction related costs detailed in table 3 -- again on page 6 of the report -- subject to approval of the proposed settlement agreement, the puc anticipates expanding a total of $2.5 million on that settlement agreement. that is between the puc and east bay regional park district. on page 9 of our report, we note the board of supervisors could continue the requested release of reserved funds until after the puc received construction bids for the calaveras dam replacement project, which are currently due on april 1, 2011. however, having said that, continuing the subject could result in delays to the project,

due to the construction-related activities which i just mentioned, listed on page 6 of the report, totaling $6.9 million. that must be completed prior to the commitment of construction on august 1, 2011. so therefore, our recommendations, on page 10 are as follows. we recommend the proposed resolution adopting findings under ceqa be approved. secondly, subject to approval of the proposed settlement agreement, we recommend that you release a total of $17 million from a budget finance committee reserve, including the $6.9 million i referenced for construction-related costs, including $2 million for settlement costs, not part of the construction contract, and

again, that assumes this committee would approve that summit agreement. we have not weighed in on that agreement. assuming that is so, we are recommending that release of the $17 million. it also includes, in addition to the $6.9 million, $10.7 million in estimated additional non- construction costs. we further recommend that you replace the existing budget finance committee reserve on the remaining $320 million with the controllers reserve and is struck the comptroller, after receiving supporting documentation from the puc, to release the amount of construction funds equal to the lowest responded construction bids received by the puc for the main construction project, plus a 10% construction contingency. we then recommend that you

request the comptroller to return any of needed funds for the calaveras dam replacement project to a budget and finance committee reserve. >> thank you -- supervisor chu: thank you. mr. harrington? >> first of all, we want to thank mr. vote rose for his work and we thank you for the recommendations. it is difficult to build a dam in california, as you might imagine. we talked about the issues with environmental organizations, regulatory issues. i am pleased to report that at the planning commission, many different organizations spoke in favor of the eir. when this was completed, we were in complete agreement with the organization's of which we work. we are improving the fisheries and the lives of people who are over there. happy to answer any questions.

supervisor chu: thank you. is there anyone from the public that would like to comment on items three, four, or five? >> good morning, supervisors. bright line defense project. there were discussions about how to maximize opportunities for residents, while balancing the interests of regional repairs and project impacted communities. as a result, the sfpuc had put for many innovative ideas and staff has provided input into the local hiring law. general manager harrington has been a strong supporter of that. we heard today about local hiring in regards to the tunnel training program that exists, but we would like to ask within two weeks time the puc provide an update on the local hiring

program regarding hitachi, and the calaveras dam. supervisor chu: thank you. next speaker please. >> good morning. i am with the a. and philip randolph institute. i know we have been hearing about a status report for this, but i am here to speak on behalf of my organization to let you know that our mission is to promote economic and racial equality for underserved communities, here in san francisco. we are in support of the water system improvement program. we see this program as a strategic and positive development for unemployed workers in the city and we also work directly with the northern california district council of labour is to provide the tunnel training and boot camp for the candidates that have been

successful so far. we understand that this program provides opportunity to develop long-term employment, here in san francisco, so we wanted to show our support. thank you. supervisor chu: thank you. is there any other speaker that would like to comment on item 3, 4, or five? seeing none, public comment is closed. there are a couple of items that we have to work through -- the first one, simply a hearing. i wonder if colleagues would simply entertain a motion to continue this to the call of the chair, updates to the puc water improvement program. without objection. item 4 is the item with regards to releasing the reserves. the budget analyst recommendations seem a corporate to me to allow only $17 million

to be released from the reserves but to put the remainder on the controllers reserve. to we have a motion to that effect? supervisor mirkarimi: approved with a budget analyst recommendations. supervisor chu: to be specific, we are accepting recommendations two, three, and four. item 5 is a ceqa funding that we are not able to approve today because we are waiting for action to be taken at the full board level with regards to the appeal. if i could entertain a motion to send item not without recommendation, pending final board action on the final eir appeal. supervisor mirkarimi: motion to advance. supervisor chu: without objection. thank you. please call item six. >> item six. resolution approving the settlement of the unlitigated claims between the city and county of san francisco and the east bay regional park district (ebrpd) related to the san francisco public utilities

commission (sfpuc) water system improvement program, calaveras dam replacement project, in alameda county, calling for sfpuc to pay ebrpd $2,000,000 related to project construction activities, and including other material terms and conditions in a settlement and release agreement. supervisor chu: thank you very much. this is an item that will be going under a closed session. in addition to that, we have a item 7 but is also in closed session beard could recall that also? >> item 7. ordinance for printing $2,809,000 from the general fund reserve to the department of public works for litigation expenses related to the santa clara superior court case between mitchell engineering/0 by asha corp. versus city and county of san francisco for the fourth street bridge project an

fyi 2010-2011. supervisor chu: at this point, we are going into closed session. members of the public, we have to clear the room. the only individuals that can remain are city staff providing information with regards to these thibodaux -- two items. >> i believe we need to take public comment on going into closed session. >> thomas pickering of. tenderloin resident. thank you. i want to speak on item 7. i do not believe that item 7 is a program for closed session. i do not believe it falls under administrative code 67-10. this manner is to appropriate to the city attorney $2.8 million out of the general fund. the matter has already been discussed in committee.

i think it should not be heard in closed session. i am here today to make a record and advise you that i will challenge you at the sunshine task force for holding this matter in closed session. thank you. supervisor chu: thank you for your comments. are there other individuals who wish to speak on going into closed session for items 6 and 7? seeing none, public comment is closed. just to the point that was made by the speaker, we have not specifically heard item 7 in committee. we had it on the agenda in a previous meeting, but the item was continued because we were advised by the city attorney that we needed to go into closed session. madam city attorney, could you elaborate on the necessity to do that? >> item 7 is an appropriation of proceeds that relate to pending claims and litigation --

anticipated litigation involving the city. it is noted that way under the administrative code. supervisor chu: thank you. we have taken public comment. if there are no objections, we will enter into closed session for items 6 and 7.