than the approved budget, a decrease of 900,000 on the cost overrun projected last quarter we're still forecasted to deliver the regional program on schedule, july 2016. the last 2 columns report the variances on the local programs there. we are predicting an underrun of 1.1 million over what was approved. the completion date is the same as what was approved by the commission. this is a chart comparing the total forecasted program in blue to the total program approved budget in red. the approved budget, the red line includes the program management reserve for the

forecast does not. he essentially, the delta between those two lines are the program management reserves. we are tracking well below the budget approved by the commission still. the overall program costs since the last quarter went up $14 million, due to the initial construction contingency approved by the commission for the datavision pipeline approved at the last commission meeting. for the first time, i wanted to show you a report on the transaction in and out of the program reserves. the numbers on the last column in red are the monies moved out of the reserve since the program was approved in july. on the left side are the savings moved into the reserve. since the program was adopted,

the commission approved an increase in construction contingency. these were partially offset by savings on one of our contracts for the pipeline system. the delta here is $15.8 million reduction in reduction over the last quarter. we're still left with $146 million reserve at this point. during the reporting quarter, we achieved a number of noteworthy milestones. we advertised construction contracts and initiated construction on four different projects. the eastern section as well as the dam replacement. we also achieved final

completion on five construction contracts. there has been an increase in overall system reliability as a result of the contract being completed, when you think about the bike tunnel, the balancing reservoir and the pump station upgrades have all been completed and these facilities are back in service. some of the greatest challenges we are tackling are summarized here. the first project is the only project that remains in 3 construction. the scope of that project was modified to include additional soil disposal sites for that project. that resulted in a slight delay in the draft eir, but that should go out for review in

early january. the ground water condition is something i've talked about, but it has become a greater challenge now. not only are we seeing more ground water than was anticipated, but we've discovered the water has been contaminated by fertilizers. we're working right now what they're contractor to find a solution to dispose of the water directly on our right away, which will allow us to do so without treatment. we are assessing the cost and schedule impact as well as the solution as we speak. to build the replacement project, we will have to excavates 8 million cubic yards. half of that will be reused for building the dam. we have recently discovered soft ground condition at the largest

disposal site and that will require we do more work on site to be able to build a rock dike around the reservoir. we're looking at cost and schedule impacts from that on the very beginning of construction, which is unfortunate, but it is a situation we must deal with. we have struggled with it difficult ground condition on the new tunnel which has impacted production rates. the good news is by working at four different headings, we are able to make up time there. finally, i wanted to mention we have discovered some quality issues with some of the wells. the contractor is not disputing the fact that there is a quality issue, but there is some

disagreement to repair the efficient work. we conducted an assessment to identify which segments have to be repaired and how to repair the defective welds. the corrective work has begun and i would like to mention this quality issue has delayed some of the restoration on the peninsula, but we have started the restoration work as well. the revenue board oversight committee retain the services of the independent panel that reviewed our program in late 2010. the panel was comprised of four national experts and was asked to review the program and focus on three specific areas the panel was here in early october

to conduct the review. the preliminary findings they shared with us were very positive i'm happy to report. the panel was very impressed by our procedures and processes as well as the overall execution. they were pleased with the way the projects were executed in did offer some constructive recommendations we will certainly follow up on. the final report of the panel will be available in mid december, and we have asked the chairman of the panel and professor at stanford to give you a presentation on the findings there that will be done in january. i wanted to end my presentation as usual, a giving you the ability to look at the work taking place there. the installation of the pipeline

is progressing very well. we have weeded de 7.3 miles of the 10.35 mile -- pipeline installation. construction activities there are 63% complete. but this is a project we have some in queues -- some issues with contaminated groundwater. we are well ahead of schedule, so i don't expect that to impact final completion of the project. this is a photo of the new tunnel. by working multiple shifts, we are making up time and we are now finally achieving the production rate as in the base line schedule. we have tunneled more than 2,200 feet out of the tunnel. this is nice to see -- degrading

work taking place at the calaveras dam. the biggest challenges there will be to deal with the restriction associated unnaturally occurring asbestos as well as with a new storm water regulations. you should be where the dam is only one of two projects in all of california that received a risk level 3 project classification under the storm water prevention regulation. that will certainly make our work even more challenging. the other thing we need to deal with very carefully is working closely with enterprise to have them lower the reservoir level to accommodate our work as much as possible while not compromising the operation of our system. it is going to be a fine-tuning

to try to meet both objectives there. the progress being made at the water plant continues to be very impressive. it has -- as shown the construction of the new chlorine contact basin. we have just completed the tunneling of the new pipeline under the creek. that was done without any problems. we are 50% complete in construction on that project. the excavation activities on the bay tunnel have been on hold for about a month now to allow for the addition of various backup units behind the tunnel boring machine cover head. this is the first of three stops that will need to be done to add the various components behind the machine trailing gear. once completed, the whole machine will be more than 600 feet long. we anticipate to have the whole

gear in place by february 2012 and we anticipate we will be able to borrow a production rate that should surpass what is in the schedule. we're very pleased with our progress on that project. our construction effort on the pipeline three and four crossover is focusing on two separate sites. this photograph was taken at the bear gulch site. work has already been completed. construction activity is 24% complete. i recently attended a few construction meetings to verify everything was on track and i'm pleased to report no major issues so far that would require management involvement. the work now is focusing on the

massive excavation and the wall that will be needed to build the 11 million gallon reservoir. we are proceeding with the demolition of the sedimentation basin as we speak. as of mid october, work on crystal springs number to in south san francisco was completed and was successfully put back in service. we're beginning work in hillsboro, adjacent to some very affluent areas and sensitive creek habitats. to deal with doing work in such busy urban area, we're being very proactive with our public outreach by involving all impacted businesses, homeowners as well as city staff, keeping them up to date on our activities. the project has its own twitter

account and blog which receives a lot of traffic and it is a great way to communicate. construction is 20% complete. we have work taking place at several different sites on the watershed. you see the foundation of the pump station which will be built in close proximity to the existing, station. talking about the crystal springs dam, here is a photograph of what the site looks like now. we are on track to reach substantial completion in early november which is required to satisfy some of the environmental restrictions. the project will have received over a thousand truckloads of cement. some pretty massive work taking place in the field, but all in all i'm very pleased with our progress. >> a very favorable report.

any comments? do we have a speaker? >> it good afternoon. very nice report. let me tell you what is not set in that report. welding. laws in welding. the program that has been influenced by the puc, on august 20th, 2009, i raised this issue. let me read to you. i knew this was going to be a problem.

i raised the issue in an e-mail and the answer came back -- i visited the boston harbor project yesterday. they're using the same approach we're using an very huge success story over there in boston, not san francisco. this is the thing i warned about, using the contractor and having the contractor be in charge. the puc does not save money being involved in this process. welding is not a small issue. once you weld the pipeline, the pipeline as weldon. if it is covered with concrete liner, it becomes more difficult to retrofit and take corrective measures. the solution right from day one was to hire the right people. you might think i am rude, but i am frustrated for dealing with a staff that knows what the

problem is and not of them ever want to approach it and say this is wrong, let's correct it. here is another proposal for auditing services. no answer. they simply do not want to tell you what is going on. all i am saying, commissioners, the people of san francisco have paid for this program and they need to know what is going on. thank you. >> thank you. and the other speakers? >> commissioners, let me start with the water system improvement project. some years ago, we had the community was involved, much

more deeply and intensely that it is now. why am i saying this? when we started the water system improvement project called for the first time, we heard it would cost billions of dollars. $2.4 billion. everything is in billions. what i am saying is this -- we have some leadership, but they should have a vision. what i am saying is when the

sewer system project starts right now, we should have the right type of training for our young people. that is what i am focused with. too many young people are dying all over san francisco because of opportunities. i am talking to some of your higher management with some projects that i hope will save lives. i'm looking at these pictures, and engineering and maintenance, operations, it is not something new to me. i retired, but i can go back. we need, commissioners, when you're talking about this $1 billion and we have 2% for art,

we need to be compassionate and think about our young people that are dying. our young people that are frustrated and want a job. i'm not saying you have no compassion. some of the do. but the burden has been in the southeast sector and the western addition. too many young people have died. i'm talking to them. over 150 meetings. if you want, we can sellout this room and even have 1000 people outside. what i am saying -- give me 20 seconds, please. thank you. we need to work with whoever is in charge of the outreach, to contact the right people and make the right things happen. i know commissioners some of you

have your heart in the right place. please do that. thank you very much. >> thank you. >> madame president, members of the commission, i just want to return to the subject of the performance and the project for a moment. that is to say we work closely with your staff looking at the progress and scopes and schedules and the budget as well. we will be looking over the report once it is made public. we did have a chance to go through the slide today and we have some questions that we will follow up with your staff. they have answered our questions and we have enjoyed working with them. i had the pleasure of reporting to the bond oversight committee and that person has worked with the staff in terms of investigation and work that has

been done. that relationship is a good working relationship. we had to help jump-start this program into existence, but we are pleased with how is going. thank you. >> and the other speakers? >> we have no other speaker cards. >> the next item? >> i believe there may not be anything further to report today. if that is the case, we can move on to the citizens' advisory committee report. >> welcome. >> good afternoon, commissioners. and each share of the citizens' advisory committee. i want to let you know this probably going to be my last report. we are having a -- having at

alexian. after it two or three terms, i think that is enough for me. i also want to apologize for missing the meeting two weeks ago. one of the hazards of having a day job is that sometimes they actually want you to do something and not run away for things like this. i just wanted to kind of focus on some of the things we've been doing over the past couple of weeks as well as what we're doing, how we are planning forward in advance of the next chair. over the past six months, we've had an orientation and we will likely be doing some strategic planning with members to try to figure out some future agenda items, to try to be organized and provide you with our best advice to the extent we can. to that end, what i wanted to

throw back out to you, you don't have to answer it so i will take the answer, what can we do or what issues should we approach to be of service to you? we are trying to line up our own agendas to the extent possible with yours and work with staff ahead of time to make sure these issues are brought to us so we can least provide some input. but we would love to hear from you on what issues you think are best dealt with before they come to you so you can at least have the opportunity to hear back what the public input has been. you don't need to answer that now. i will take after i am done. in terms of some of the stuff we've got coming up, we have

been working with the water group. we have talked about cosponsoring some water workshops on the east side of the city and we have invited members of the cac to work at a time to make sure the presentations are rolled out. that is dividing of commentary and present -- and questions and is presented in a way that engages people and gets feedback and hopefully we will be working on those over the next couple of months. a second thing i wanted to note is this is the passage of the community benefits policy. one thing that i have thought, the environmental justice policy adopted a number of years before that falls under that same

rubric. i have been talking with some of the members and we are going to be establishing an ad hoc committee benefit subcommittee, transforming the subcommittee that had been on hiatus to work with juliet and work with other staff to try to provide guidance and then could. right now, the san francisco foundation has worked on a lot of community benefit steffens we don't have any meetings set up yet. that is something i think we will be seeing more of in 2012. we have a meeting tonight embargoing to tackle some of these issues. one of our members has taken it

upon himself to try to recruit someone for one of our vacancy its. hopefully this gentleman is going to be coming today, so hopefully he is not scared off and will put in his application with the mayor's office. if you have any questions -- >> we are going to miss you. se attending >> we will ponder your question. thank you. i would like to thank you for your service and we appreciate all or kiev done over the years. i have always had high hopes for the cac, and i'm hoping was that

out each and reinvigoration. i understand there has been issues with meeting quorum and not having a full body in place, and i would hope you could be integrated to advise us on matters coming before us. i love the idea of tracking the advanced calendar and if something is coming up like shoreside power, there could be more in-depth conversation so it can come before us with a brief summary or recommendation on what some of the issues might be. even on the structural pieces, to be able to come to us and say this is how we are thinking about setting up. however you decide as you move into a strategic planning progress -- process, so that we can be supportive on our end. i look forward to the next iteration and i hope you will continue to participate.

>> i have become quite fond of this agency. i have said before and i will say again, the puc is probably one of the most important agencies in the entire city. it is part of our urban life support system and i think a lot of people forget that very essential fact that we could not live on as little tip of the peninsula with up the services provided by this agency. over the past few months, we have had a new liaison who is new. she has taken this job bond with a great deal of enthusiasm. i appreciated since i have a day job and cannot be following this stuff on a daily basis. thank you. >> thank you. >> commissioners, let me give this information that i think is very important.

i was yesterday at a land use meeting where the navy gave a presentation, the united states navy gave a presentation where they are talking about a very, very contaminated area that they desire to tap. that means to put a 2 inch plastic and put some dirt over it. this is for your information. some of view are old enough to know about midway village by geneva. i see one person nodding. hopefully this information can be given to the commissioners. they went ahead and cap them arianna and are having a lot of issues with