suffered the loss. putting it back, the lost time -- no. we have not started negotiation on this. we have yet to receive a change order. we had a team conduct a very thorough assessment of the situation, the reason for the breakdown. we feel very strongly in is the responsibility of the contractor. so, we have directed our team to be ready to respond to any possible change order, but we have yet to see a change order. commissioner torres: were you involved in this? commissioner caen: john white was involved with this. he worked with julianne.

-- julia. >> the contractor was aware of our position. if they want to pursue this issue further, they will need to call our office and file a formal request. commissioner torres: do we have a case where the contractor is not as cooperative as this one allegedly is? >> that would be more of a department question. >> if he said jubilation was that it was a -- if the situation was that it was a change in conditions, it could be argued that it was different then the conditions within the contract. it could be talked about, ok, that is a change. we will pay for that.

they are the supplier of the machine, so it is their responsibility. however, if we were to purchase the machine and use it, that would be best, because they could not complain that you broke it. commissioner torres: i understand now. one last question. when you are looking at this process and how we got to this point -- which is very important. the nature of so many of these contracts, it is prospectively as well. what extent are we taking to make sure future machine is taking care of? >> this is an incredibly useful

-- unusual situation. eric -- >> first time ever. >> first time ever that the manager can recall. i do think we have this on a slide. when something like that happens, i require our team get together. i believe we handled it extremely well. there is always room for improvement. the two areas we discussed to look at potentially -- revising our own process to avoid something like that and andy future -- the specification for what we call the pressure balancing method. it is home to funnel, and we basically would change that specification. not only was there a malfunction of the machine, but the method

was insufficient. the contractor was tunnelling using water. we may look at our specs. the tunnel boring -- the subcontractor also added another element. they were planning on using the same machine. they had to get another machine at the last minute. there is this whole issue -- would there be a process for us in capacties? when they are small like that, they may only have one machine. we may need to look at capacity. commissioner torres: one final question. at the end of the day, what did

we say about why this project was delayed? >> without this, the entire service area west of the irvington tunnel would be lost. commissioner torres: i have had feedback. "we do not understand what projects you are discussing." i think it is always in order to give a very simple explanation so that the average person understands what we are working with and begins to understand the tremendous savings to get this adjudicated and ameliorated. >> i appreciate the sentiment. president vietor: it may be

helpful that when we get the 10% variance request in april to break it into short sound bites on the specific projects. maybe thinking like that. >> desk. -- yes. president vietor: thank you. >> again, the idea of fostering a very cooperative environment was also a key. this team has been one of the teams that has been proactively partnering in practices. you know, i think working with the contractor, eric g., they have to be commended for how

proactively they tackle the issue from the beginning. there are remaining steps there are remaining steps, although we dealt with the issue in the field. the issue is what caused the breakdown of this machine. we believe strongly it was the fact that the machine's gearbox, and the contractor was responsible for the incident. we did receive a changeover request from the contractor, launching a receding shaft, but nothing about the incident itself. if a changeover request was to be submitted and if we were not able to negotiate an outcome, we would go to our dispute resolution board. we have one of those for every process.

we have started having discussions on what we could change to avoid this in another project. i just wanted to share, before i end, a few photos so you can see the actual work. like a said, within a week, we were digging and new shaft. we are very fortunate. the machine actually broke down under a small island in the middle of the creek, making it less interested in minimizing the environmental impact of taking the shaft. what you see here is the contract for cutting away the shoring place in the recovery

shaft to allow us to access the machine. we pushed the machine into this recovery shaft. what you see here are workers leaning into this. this is the machine, and the chamber behind it. it is being pulled out of the recovery shaft. this is what it looked like when it was sent back to the shop. it was in remarkably good shape. it is an indication that the problem was not with the cutter head itself, but with the internal parts of the machine, and this was confirmed later. before i end here, this is where we stand today. we are 80% done. we did encounter conditions on

this project where the existing areas were not on the same level. i am confident that unless we have any significant changes between now and into the project, that we will be able to complete the final 10%. i would be happy to answer any additional questions you may have. president vietor: [unintelligible] commissioner torres: i just of commons. this is the kind of response he would -- you would want to see. wendy's tunnelling projects go wrong, they go wrong in a big way. they certainly get your attention quickly enough.

that is one reason why i think it is important to pay the same kind of attention to issues when they, up, the scene in powering of people -- empowering of people. that is every bit as important in the small projects as the large projects, and they tend to get less attention. this is what a good process looks like. this is the kind of thing that hampers careers. i think this will serve as very well. thank you. >> thank you. >> the next item -- i believe commissioner caen was on the

commission when the sustainability program was adopted several years ago. one of the items on the action plan was to consolidate that puc sustainability plan with national efforts. this is the result. we will talk about how you can read this and look at it, but also if you have any feedback now or in the future, we would love to hear it. these are the key documents he will be looking at in july -- you will be looking at in july for our annual retreat. >> thank you. >> the day before my birthday. >> oh. [laughter] >> thank you.

i am here to provide you an overview of our sustainability plan. i am sorry. i understand you have this response and your packet. i will start with the first one. what is the strategic sustainability plan? this is for planning, managing, and evaluating performance. it takes out what is commonly called the triple bottom line. our focus is on environmental and social impact for business and environmental activities. it is considered a sustainability best practice.

so -- what is the utility of this plan to our stakeholders? to you, to external stakeholders, and to puc staff? it provides a view of activities across sfpuc that gives us a bird's eye view of how we are performing those activities. it also provides a framework to assist in fiscal year and long- term planning. it streamlines our performance, and and they know that the report twice a year to the comptroller's office on various performance indicators. we have been working with in the name -- we've been working so

that we report on the same set. from my perspective, it is the job saving goal in performance evaluations. how did we create the strategic sustainability program? we have the strategic action plan, which some of you may recall from 2010 needs. we also true from power -- we also drew from how empowering program. this is based on a 2005 study with quarterly reporting that updated that. we brought all the issues together, and we provided a

material analysis of these issues, and along with them, our budget staff brought in a third- party experts to gauge of performance indicators and best practices. you will see that the framework is made up of two. the dynamic section, if you will recognize. the durable section is something new. this primarily involves the integration of the offices. i will pause very quickly for comments. we have five goals that are consolidated from the strategic action plan and the sustainability plan. next, the six triple bottom line

categories. you recognize the environment and natural resources, the community work place, infrastructure. we have seven objectives that we integrated, and this was the primary focus for our material analysis. and associated with each of these objectives was at least one, if not more than one, performance per year. and you do not see them on this training. this is the durable section. the whole point of the durable

section is to drive in inspire the needs for the fiscal year, and to operate in order to identify inefficiencies where we can make the most progress leading our objectives and strategies. durable elements will be evaluated by a third party every two years. but not only will the durable section be evaluated. both sections, the framework as old, and -- the framework as a whole, and we will take into account in a valley with in a performance. the dynamic section -- to be repetitive, again -- is to make

progress against our objectives and goals one thing to keep in mind as you looked at the plan, this is the planning for fy2010- 2011. we initially did not have a dynamic element. we are anticipating the dynamic and durable sections will be seamless. so, just a couple of real quick examples. i am referring to the spreadsheets, the plan for fy 2010-2011. the first example is ries recycling. -- grease recycling.

obviously, under these objectives, one of the three actions for this fiscal year is action 74. and in the short term, how will we know how it is done? we will know because the board of supervisors voted to approve the ordinance and we will have restaurant participation increased by 100%. we will be working in conjunction with similar objectives about how they contribute. so, the key performance indicator is the number of days

that water quality bacteria levels did not meet epa requirements as a result of sewer overflows. this is a long-term indicator of progress. before i go to the next example -- we have a clearer, quantitative -- what we call quantitative. we can provide trending over here. the next example is what we call qualitative. sometimes we call them squishy. whatever she calls them. again, we will continue providing partnerships. one of the seven actions for fy

2010-11 is to integrate the auxiliary water supply system into existing operation. how will we know? the one now because in the 12 month to 18-month progress, we will have completed the mou with the san francisco fire department. in the longer term, we will know how this action on, and other similar actions contributed the benefits of partnership in providing our high quality care. we will work out criteria to the body with this over time. -- we will work out criteria to evaluate this over time.

this is a summary of what i pointed out. starting at the bottom, the goals and objectives are meant to drive the action. this is the shorter-term progress report. over time, we will aggregate other similarly-focused actions. these will be measured by performance indicators, and the performance indicators will measure how effective we have been. finally, this is what we call a performance profile. it is a snapshot of what we will be reporting to you in july at your retreats. let me give you the results of

fiscal year 2010-2011 evaluations. what you are seeing is five sections that are profiled. each one describes one of the goals. in each section, you will see a slide with the objective for the gold. the five inner circles are reserved for the results of the evaluation, and each score from 1 to 5 are leading performance indicators. so, these are the key performance indicators that you will see in each of these areas. for the quantitative indicators, we will average them how over time.

so, when we reach the dark green, we will have reached perfection. so, you probably will not see that in july. so what are our next steps? for fiscal here 2010-2011 performance, we will create our actions, revise kpi's to stay within national and international standards. we will collaborate with the controller on semiannual reporting. we will also look at biennial refuse -- reviews. i urge you to look at this.

it is short and provides more background on the report. i also want to express my appreciation to general manager harrington for his hard work and leadership. we are incorporating the institutional is a nation of sustainability into our business practices. thank you. vice president moran: again, we use this for its value -- >> again, we use this for evaluations. we go through the process before judge richard before july, of is the period june-july -- we go

through this process before july. it is the period june-july. we will be looking at if we are meeting the different expectations that we set for ourselves in july. it is a way for us to judge if we are doing the job. any thoughts about the process itself? if not, you are certainly welcome to speak about anything you may be concerned about next year for the action plan, to see where they fit in. >> thank you. president vietor: one thing i did not see in here is a baseline. my understanding is that when you are doing indicator work, it

is helpful to have a baseline you are working from? >> yes. in our report from 2007, we created a baseline. we found 160 performance indicators. based on that, we have updated that on a quarterly basis to the year 2008-2009. we have all of 2005-2006, plus 2008-2009. so we have a pretty good basis. president vietor: if we are talking about water conservation -- and these are our goals and there are several goals.

is there a mechanism in their? >> yes. i would be happy to discuss this with you at any time. if you go to sfwater .org/sustainability. it is our baseline. all of the indicators are in there, including conservation -- that is the bottom line. so, yes. president vietor: where does it fit in the process -- last july, sort of looking through here. what is the appropriate forum? to discuss in advance of the july meeting to say,