include costs associated with mitigation, improvements, and real estate to spend -- expenses. overall, the increase in costs are attributed to a limited number of projects. shown here are the projects that have had the largest increases in costs. he'd appear projects have had very large increases over $10 million. that increase is based on a new 35% design cost. the previous metric was based on a conceptual engineering estimate. it did not include a number of issues that we have to deal with including a real-estate transaction as well as a much longer schedule for that

project. in the case of the peninsula pipeline seismic upgrade project, the increases with refinement for the project based on the latest geo technical information, the decision was made to replace a number of pipeline segments on the peninsula where we are vulnerable to liquefaction. this is in the -- in to the additional scope in three different occasions. i will elaborate more on the cost increases. more from that perspective later in my presentation. >> it does occur to me that a couple of the projects we have been tracking in terms of costs have had some cost increases. if you could just give me an update on that spread sheet you give me from time to time.

>> in the reporting quarter, we have some projects that we were forecasted to complete almost six months later. i wanted to elaborate more on the regional projects, which are the four above the darker line. this is a project that is now completed. it has reached the central completion. we need to keep the contract opened to allow the contractor to come back and perform some of the repairs at no cost to us. they accidently damage being closure of the generator on site. what is important to know is that the facility is fully operational. we just need to extend the contract for the repair. for the peninsula pipeline, the addition of new scope has

resulted in the increase in the project schedule. we added eight months to the project as a recommendation that came from a third party review in the design phase. the additional eight months was recommended to account for the temporary slow down or maybe even shut down of activities during hot and dry days to try to control the airborne asbestos that we may encounter. this is more of a contingency type addition to the project. finally, for the filter gallery, we did a review on that project. this was recommended for two reasons. one was to be able to procure long lead items and this will

deal with the work we will be doing that will build our environmental seasonal restrictions. now that i have highlighted the major changes at the project level, i wanted to summarize what did cause the cost increases and the leas report of this quarter. you should note that we follow the recommendation by our program adviser. late last year, he recommended that we produce more detailed resource plans where we identify every individual to be assigned to an activity and identified the number of hours they would have to spend on a regular basis. we have done that before, but never at that level of detail. that has allowed us to get a better handle on how much

resources we will require. in certain areas of delivery, we were requiring additional resources than we had initially predicted. there are two other major cost categories. r a incremental expenditures have gone up $23.9 million over the last quarter. that is contained in the costs. those increases are mostly associated with incremental mitigation requirements. the permitting of two dams requires that we, in exchange, to give up a lot of medication in the form of new habitat restoration. along with facto additional resources to maintain compliance with all of these permit

requirements. pushing back some of the completion dates of our projects has also required additional resources from the city staff and consultants that in the long run, add up to about $15 million. on the schedule delays, there are four categories that stood out to me. the water treatment plants, there were delays in getting the of our mental certifications. these have also caused delays. this has caused delays to the peninsula pipeline project. there are delays that have impacted schedules. could be as simple as the generator accident. there were also a lot of complex issues in the field to deal with, such as the discovery of

archaeological sties and contaminated soil that we are dealing with along the peninsula right now that has impacted schedules. finally, in the later stages of design, we oftentimes bring in an outside expert to review our schedules. based on their recommendation, we may have to adjust our schedule. this is what happened in the case of calaveras. we had to deal with naturally occurring the asbestos. i have a lot of good news to share with you. since of last reported on the program, we have certified two eir's on two of our key projects. we have advertised at three contracts including very important contracts including

calaveras and a very important part of the eastern pipeline system. we have advocated construction on six large projects including a water treatment plant, the western segment of the san joaquin county pipeline system, and the crystal springs pipeline replacement project. we completed construction on not towwo, but 3 project since we close the agenda today. we completed construction on two contracts. one achievement is the connection of the new crystal springs bypass tunnel to the system. this was early in the reporting quarter. it required one of the most risky and challenging shutdowns of the entire program. the water enterprise deserves a lot of kudos to pull this off.

we have completed 52 of the 108 shutdowns. on march 11, we started tunneling through the new tunnel. that was a major milestone. another milestone was the delivery to our project sites. they started rising in the last few weeks. this was still in japan during the last major earthquake. earlier this month, at the annual project management institute scheduling conference, we received the innovation award for are very innovative systems that we use. the cif as well as our control systems. we also recognize how they were using that system to deliver our program. a summary of what was rewarded

during the reported quarter. the first were actually awarded during the quarter and were presented savings totaling $120 million. the last contract shone for the calaveras dam is pending. it is one that that is before you today. what i would like to point out is that all but called million dollars of the savings shown on these slides were accounted for in the previous quarter. this is why last quarter the forecasted cost of the program went down so much. because these contracts were rewarded shortly after the close of last quarter, we were able to account for them in the quarter. this quarter, we were only able to take credit for $12 million of the savings reported here. >> under the system security update, is that really true? >> it is really true.

this is a contract that just got started. i can tell you right now, if the contractor missed something or there were some wrong assumptions made, we see that low of a bid on another small project before. it was an issue in the case. it will be monitored very closely. this is an unusual contract. it is not hard core construction. this involves providing security equipment. it is fairly unusual. it is not as easy to cost out. it is active right now. >> i would guess there might be some oversight there. >> our job would be to hold the contractor responsible to deliver whenever they said they went on the contract.

our next two slides track our performance. key milestones that are for the program. if the focus on what is in blue, that is this quarter. we were able to achieve two of the three milestones. this is a categorical exemption for the reservoir of rehab project. there were some delays in receiving the division of safety approval for the abatement stability assessment. now that we have that, we should be able to move forward with our temperamental documents. i hope that we will be able to reach that milestone this upcoming quarter. on the regional side, we actually had a large number of milestones. we actually have 13. we achieved 12 of them. actually, 11. we missed the lauren livermore

milestone. the delay was due to the fact that the -- was issued late but more importantly, the wet weather conditions we encountered prevented us to move as quickly as we would have liked to. we are dealing with a key different headings to. tunneling operation started in late april.

this was very exciting. this was taken yesterday. we will do all the work under the bay for 5 miles. this will be followed by a year -- a gear which will spend about 600 feet. on march 30th, we had an event to commemorate the start of construction on four different projects on the upper peninsula.

we were pleased to have some of our regional partners as well as elected officials. this shows the university reservoir, one of the largest in the city. the construction there is just done. we are waiting to refill the reservoir after it has been empty. before we do that, we wanted to invite you to a ribbon-cutting ceremony. it will be a great opportunity to view the site and look at the reservoir. you will receive an invitation for that. that concludes my presentation. >> thank you. >> i like the good news.

>> public comment. >> i would like to make some comments. >> this is the first quarter that we have protected schedule extending beyond 2015. >> that is correct. >> you are not asking that for approval but you are taking a first of to say that that is the best knowledge that we have an part of what we are obliged to do is to consult with interested people before we come back to

the commission with a formal action. veeco like to make a couple of observations, and this put into law an expectation that we all signed on to and that we all embraced. that is something that we incorporated as a fundamental task. we have known for some time that they have some challenges. we are reluctant to put a number because we don't know how many

reviews it would take. it would be very be it -- it would be very very hard to put a number on paper. our obligations to ourselves and to our constituents and to our wholesale customers as well as under the law is to pursue these projects aggressively and i think we have done that. our obligation is also to manage risk as best we can and one of the key elements is scheduled risk. there is a history going back trying to address the risk factors. we also have an obligation to be transparent. i think the reporting systems we have put in place have allowed various interested parties to

say we are worried that you are in the schedule leading up to potential deadline problems. we have shared those concerns and that transparency process is working. beyond that, it is our obligation to tell the truth and do what we need to do to get the job done. i think it is more important that we use it as an opportunity to make sure 3 the will and that all of our obligations and that we are addressing it in a realistic pattern.

whereas physically humanly possible we will get that job done. i wanted to make those comments and offer that. thank you very much for the presentation and making that information available to us. are there any other comments? moving on to the next item. >> this would be the report of the bay area water supply agency and general manager. >> thank you. i wanted to devote most of my time to the -- at last week's board meeting, we showed video that we have all seen and they were most impressed and it was my second or third viewing but this is very gratifying having spent years to see all of this work being done and to see the focus

effort. an interesting series of events that as to where we are today. without those, you would not see this much intense work and a complete reconfiguration of the way you do business. 35% of the curve, we want to get back to your comment. we are aware of the realignment. we are studying this report carefully. we will probably make comments and we will probably have recommendations for you.

it the legislation was enacted, the process had not yet been adopted. since thousands -- since 2002, it went under serious realignment and the scope was refined. one of the comments that we made was that we thought the schedule was too aggressive. but our concern was that we thought it should be realistic. you wanted a realistic schedule.

this does have a good schedule. the state has some obligations to say what that means. that is the extent of their role. this is part of the process that we helped to put in the legislation but gave you the flexibility to revise the schedules. there are still some people who think that we put a deadline for projects in state law and that was not the case. nonetheless, it is import for us to see the hard work that is being done. that is all to our benefits. i don't know when the earthquake will occur.

everyone has an interest in getting it done. no one knows when the economy will turn. we will continue to watch this with ernest. we don't have any concerns to express about what we have learned about the schedule. when it went through the legislature, someone put it in a sunset date and it was a horrible sunset date at the beginning and it was changed. since then, we have had to go back and extend it to 2015. we will go back and extend it again. the last time we did that come by your staff supported the

legislation to extend the deadline. any questions? >> we have no speaker cards. >> any speakers without cars? >> the next item would be the consent calendar. the agenda at item 9 e has been taken off of the calendars. these are continue to to be retained bear for the san francisco commission. first, approve the selection and a word infrastructure operating budget as needed to engineering designer to kennedy jenks

consultant water resources. approve the amendment number one to our enterprise funded agreement, streetlight asset services services, with ags

services. c, except for performed by shaw pipline, d, accept work performed our ranger pipeline for water enterprises, water system improvement funded contract number, w d-2561. e, except were performed by ntk construction for water enterprise, water system improvement, lawrence livermore,

phase two, shaft improvement project. f, approved a plan to specification and award wastewater enterprise capital improvement funded, se plant north side facility. g, approved the plans and specifications and award water in a press capital investment program, channel playstation odor control and facility. if any commissioner would like to remove. public hearing, staff

presentation and discussion of the draft 2010 urban water management plan of the city and county san francisco. the commission will consider approval at the june 14th meeting. >> i'm here to talk about the 2010 plan. this is the 2010 plan even though we are in 2011. these are adopted on five-year cycles. this was delayed because the state took a long time giving out guidance. that is why the anomaly is up there. the urban water management plan is intended to accomplish a few purposes. it gives the