thank you so much for moving it up a little bit, i know we spent some time on community choice aggregation which is an important issue for our city. i totally understand. we are based in the mission district and we work with immigrant families. we are proud to be a group that has created parking together with neighborhood residents and the families. we organize from the bottom of, and to me, this project represents the way that urban planning should happen. the vision, the need for the community, and we get a visa for through policies, rezoning, the

different agencies in this example, for different agencies working together. i see a lot of reciprocity, a lot of partnerships happening. that is something we have not had a long time, going through the housing boom and bust. we have thousands of hard- working immigrant families, native-born families that are living in single room occupancy hotels, living in crowded housing, and have no access to open space. this brings both of those needs together in an area that we consider an environmental justice community. this part of the neighborhood was a mixed residential and industrial sector that has a harmful legacy of toxic

pollution, unsafe conditions for pedestrians and families. this is one way we can begin to kick that ballots and clothes that disparity. especially in an environmental justice communities. i also want to recognize that i was joined by a crew of neighborhood residents and leaders that had to pick up the grandkids, and babies of their sisters, and go to their other jobs. i want to recognize these people that were here to support the project. i can do justice of what they were going to say, but i want to recognize their time, talent, and ask for your support on this project. >> we appreciate the work you and other community members have

done on this project. it is really exciting that this project is finally at this place. >> i just wanted to recognize that this site has a long history of back-and-forth of different agencies. i think it was over 20 years ago that it was transferred partially in trader for one of the reservoirs, balboa at the city college. i don't believe the puc has controlled the property before that, so i am wondering why it would not fall to the city college for prior property owner? it seems odd to me that we would be burdened by that responsibility. my final comment that michael addressed is that the revenue

would accrue to the water enterprise to the benefit of san francisco ratepayers, and not shared with suburban customers. perhaps if that question could be answered about the ownership. >> may be a quick response? >> when we took ownership of the property, we took the liability with it, and it was done before my time. that is just the way it is at this point. >> i do have one other correction to the resolution. it says the property of 31,000 square feet, he property is over 60,000 square feet. because we are dividing it into two parcels, it just got transferred. if we make that correction, it

clarifies everything. >> is there an amended motion? >> i will move the amendment. >> second. >> all of those in favor? opposed? all those in favor of the main motion? the motion carries. >> if possible action to authorize the general manager to enter into one or more agreements with western renewable energy in order to establish to the administrative make to certify, track, and report to enter into similar agreements to certify reports. they will be able to demonstrate achievement of the environment,

goals, applicable laws, and authorize the general manager to seek the board of supervisors approval. >> would you like a presentation? >> how about a motion? second? questions, comments? all those in favor? the motion carried unanimously. >> the next item i believe will be item 12. other as in the general manager to execute on behalf of the city and county of san francisco, a memorandum of agreement for parks and recreation to provide funding for a long-term stabilization plan for an amount not to exceed 1 million --

>> so move, but with questions. where is this located? where is a close to? >> this is near the coast range tell on the east side. >> what district is it in? >> i have no idea, to be honest. >> i would think it is between -- and do you know? >> the supervise a reaorial dis?

>> has their office been o informed? >> not that i know of. >> lead to start doing that. whinnied to take credit for that, it is part of good government and working together. >> she will be there friday for the dedication. >> other questions or comments? >> we have no speaker cards. >> on item nine, we have an answer to your question.

so the question was, how firm is this obligation? what this contract allows us to do is preserve the ability to purchase power through wapa, through western. we are not obligated to take any power with this contract. we do on an annual basis assess what our needs are, and communicate those to western once they are better known and once we know what the market prices are. the fact that western sells the power to us at market price, and if we choose not to take it, excuse me, in a given year or period, they are then able to reach market on the power market -- able to remarket it on the power market. so we reserve our right to

continue to have a relationship with western. commissioner: why do we even have a contract then? >> so the we can establish with the provisions are for the commitments on an annual basis if it is favorable for us to do that. president vietor: ok, thank you. commissioner: so do we want to call the vote on that particular item? all of those in favor of adopting item number nine? aye? opposed? and one no. president vietor: next item, please. secretary housh: the next item

would be item 13, a discussion and possible action to approve an increase in the preapproved 10% construction cost contingency allocated to the water enterprise. there is a total contingency amount. and authorize the general manager to consider, and if appropriate, to approve modifications to the contract for a total of $105,412,376. >> good afternoon, we are looking to approve contingencies for changes that fall into four different categories, and before i go into that, i should tell you that this project is now 45% complete. we're trying to rehab existing infrastructures. this makes it more difficult. basically, the four categories

of changes are site conditions, and those fall into two subcategories, geotechnical. a different condition and what was in the bid documents. for example, there was a greater concentration in a number of areas on our side. there were also some discrepancies of what was on our drawings versus what reality was. sometimes, drawings do not reflect all of the conditions that are. we ran into some things that were not shown in any of the drawings, so those result in changes. there were also, one of the biggest categories was scope additions. the water enterprise asked that we add a few scope items to the contract to address some immediate needs. when you get out in the field, and you start building new improvements, you find that some

of the existing improvements that you thought were in good conditions are not in good condition, so the water enterprise, for example, asked us to rehabilitate some of the foundations on which the nine chemical tanks of the plant set. -- 6. we also realized that some of the chemical pipelines were leaking. these changes initiated by the client alabama $9.80 million, so what i want you -- initiated by the client add up to $9.80 million. on the $4.20 million need to come from our program management reserves, now $167 million. the additional will be covered by the water enterprise as part of their capital improvement funds because these improvements that we will be building, some of them were already identified in their capital program. now, it is much easier, much more efficient, much more timely

and effective to amend the existing contract to do that work, versus trying to get a separate contract group to come on site. when you have two different contractors trying to share that side, there are complications and also a timing issue. that is the reason why we are adding those into our contract. there were also environmental challenge encounters. we had nesting of protected birds that had to be removed. they delayed the project. and on all of our projects right now, we are encountering some of these challenges. these are recurring themes, and that is what i was going to discuss in my overall presentation, where the conditions sometimes on site is different than what we had assumed. contamination shows up in some cases that was previously unknown. so this is how we came up with this additional cost. these costs include all of our

change orders and trends and account for some of the project risks that we see out there for the remaining of the project. again, it will not change the entire cost of the program because we have a good reserve that is therefore a situation like this. with that, my job and the job of our team is to control these changes and make sure we finish with money left in the reserve, so these treatment facility projects are definitely some of our more challenging projects. president vietor: ok. this is a big dollar amounts again. wsip. is there a motion to approve this item? commissioner: i will move. commissioner: i will second. president vietor: commission

iran -- commissioner moran? commissioner moran: was this part of the initial? >> some of the costs associated with the chemical tanks, pipelines, as well as the foundation, were added later as a change. after the contract was awarded. vice president moran: the tanks were awarded? >> i would need to verify that, commissioner. i believe that the tank replacement themselves were included in an addendum to the original contract, so they were bid as part of the original contract. now, there were additional items associated with that, like the mechanical and electrical work

that were added to the existing contract. vice president moran: the reason i ask, and i will support the program, the request of scope changes are my least favorite, and i do believe in the process. you tend to get a better price, so if you have the foresight to say you are messing with this, you tend to get a better price than if you do not. the condition of the foundation, that may be a surprise. >> i fully agree with you, and i think to that extent, we want to bid out that work. the costs and to put another bid package on the street may compensate for these big savings. vice president moran: as far as the original package. >> i agree. vice president moran: you cannot have two contractors.

>> we went through a lot of discussion. it was not an easy thing. >> by the way, i do not approve those on my own. i bring them up to the team, and general manager ed harrington, we go over those. vice president moran: thank you. president vietor: so all of those in favor of moving item 13 for reproof opposed? secretary housh: there are no speaker cards on that item. item number 14, a discussion and possible action to approve an increase to the preapproved 10% construction cost contingency for water enterprise, water system improvement program- funded construction contract number wd-2591, for a total

contingency amount of under $4 million, and operas the general manager to consider and if appropriate approved modifications to the contract. >> we need to complete the work in a certain time because we are in the middle of a sensitive area. we also need to complete that work to make sure that they have flexibility with the use of the new improvements this season and not have to delay the whole thing one year. in order to keep on track schedules wise, we have to do two ships. -- shifts. and we got a late start because of the very wet conditions. this is a job where we had to de-water the. downstream of the dam, and

because of the very wet conditions, the construction starts had to be delayed because we were not able to de-water the area. this is one reason why we are running into some cost overruns there. and the volume of hazardous material that had to be removed and disposed of in a special landfill was much greater than what was assumed. what conditions were different as well then what some of the geotechnical investigation showed -- rock conditions were different. and this was a dam built in the late 1800's, so the drawings may not be quite as accurate as they should be, and when we got out there and started digging, the foot of the dam was actually different than what were shown in the dry, so we had to make some adjustments for that. the project also encountered

some environmental challenges. we had to relocate some fish twice, and they kept coming back, so that provided some additional challenges, as well, but i am very pleased with them on the job. this is a project that has been on the books for over 10 years, and i am going to be really pleased when it is all done, considering where it is relation to the san andreas fault. president vietor: is there a motion? commissioner: so moved. commissioner: 2nd. president vietor: some comments. commissioner moran, and i am sure it was a fiercely debated at the management level. >> we did not have as many owner-initiated changes. the situation was an appeal. president vietor: right, right.

commissioner caen: you have stated here to authorize the general managing to consider and if appropriate to approve. is that not a little wishy- washy? i would like to know the numbers as opposed to "if appropriate." >> the way it works, because you're in construction, decisions need to be made very quickly because of the standby cost a lot of times, the way we work it is whenever we go over the 10% contingency, all of these additional change orders need to get funneled through the general manager, which normally they would not, so that is kind of what that language states. basically by approving these agenda items, you are intrusting the general manager in making a judgment on whether he feels these change orders are justifiable, up to the limit

that is sent into this agenda item, and in the agenda item, we describe what the area of these changes are. commissioner: you are asking us to go up to that amount but not to pay. >> yes. president vietor: all of those in favor? opposed? next item. secretary housh: there is a minor change to the one that was issued. this is for an amount not to exceed $6,400,000 plus with the soul, responsible, and responsive bidder, yerba buena engineering and construction inc., or any qualified contractor, and upon successful, approve the plan and specifications, and award water and a prize water system improvement program, habitat

reserve program, homestead pond, san andreas reservoir wegmans, and adobe go to grasslands, in an amount not to exceed -- to perform wetlands compensation. to adopt findings in the environmental quality act, including statements and overriding considerations. >> this is several that will be awarded. this is for mitigation for the wsip. the challenge there is to find enough qualified and interested contractors to bid on these jobs. and we did have a successful bidder. since it was a sole bidder, we negotiated down by about half a million dollars, and i am hoping that future contracts will have a little more interest, so i think we will talk with our contract group and see how we

can actually achieve that. we do now have this successful, and commissioner, i am not sure you have been notified, but we have changed the agenda item. it is a pretty straightforward item, actually. commissioner: it seems that since this is -- that even though there is only one bidder, this will continue to be a competitive field. >> if we find a contractor who can get the funding requirements met, and they do very good work, it could be that the same contractor does a lot of these, and i would have no problem with that. president vietor: all of those in favor of -- i am sorry. all of those in favor of item 15? a second? commissioner moran?

questions and comments? all of those in favor? aye? opposed? unanimously, it passes. next item, please. secretary housh: the next item is are closed session. >> we do not need one today. we were going to be looking at our new police liaison. one man has been brought back to the department. he is now the police liaison. we can have that happen some other day. president vietor: thanks. so if there are no further items? secretary housh: is there any additional new business? >> just one item. you have this on your desk. there was an article posted last week on our stearnes program. it was a very good article. i just wanted to make sure you were aware of it. 110 at risk youth.

it is a great program. president vietor: yes, we loved the project. thank you publicly. they are not here. for their continued good work and efforts. any other business? commission business? any other comment? hearing none, the meeting is adjourned. [gavel] captioned by the national captioning instit