year ago was an extension of the program from december 2015 to july 2016. the overall program budget remained the same, but we have some savings that the project level that we were able to consolidate and create a program management reserve. that reserve at the time was $161 million. as part of these revisions, we also move 5 water supply projects from the wsip to the water enterprise cip. these are the revisions we propose that we are seeking approval for today, and they focus exclusively on three projects. today's revisions do not involve any changes in scope and do not change the overall program dates, and they do not change the program budget of $4.59

billion. let me briefly go over the changes -- the scheduled budget changes we are proposing. the new irvington tunnel is just over 50% complete. we have encountered a number of challenges with the project. we had to excavate through rock material that was much harder than what was documented in the contract. the work was also reclassified by calosha, and that is where a lot of the cost impact came from. there was also a need to control a significant amount of ground water -- groundwater seepage, and that is what impact the schedule the most. this commission authorized the general manager to approve

schedule extensions of to 400 days, and the schedule extension we are seeking your approval for today includes officially the 400 days as well as an extension of the closeout period to a six-month timeline, which is standard on our projects. the cost increase -- $4.7 million of the $6.5 million is direct, hard construction costs. the increase is required to be able to provide the project management and construction management services needed for the completion of the project. the bay division pipeline project is now 90% complete. the original plan for the project was to build a pipeline using two different construction contracts. both of these will be completed by the approved project

schedule. however, during construction, we discovered an extensive archaeological burial site in the vicinity, which is on the peninsula, and it was determined it would be most cost-effective and efficient to deal with it by my " tunneling under the site using separate construction contracts -- by micro-tunneling under the site. i wanted to point out that back in july -- since july 2011, this commission also approved a significant increase of $13.9 million for the construction of this overall project due to issues related to the east bay contracts and that additional money was needed to address unforeseen side conditions. there were a lot of impacted

properties. the treatment and disposal of groundwater as well as the need [inaudible] finally, the third project has been affected by a number of issues as well. we have encountered the current site conditions related to the added bills related to the existing facility. there needed to be some design modification to meet some specific criteria for this facility. what we are trying to do there is very difficult. trying to use chemicals in a place where you have a lot of flow increases. very challenging. there were also delays caused by flooding in thailand, which is

where a lot of our equipment is coming from, and there have also been contract compliance issues with the requirement led the office of labor and federal forssmann. the original contractor actually defaulting on its contract in obligation, and we have to replace the contractor. all in all, despite any challenges, we are approaching completion on this project. that concludes my presentation. i would be happy to answer any questions you may have. commissioner moran: thank you. commissioner torres: did we find out which native american tribe is associated with the burial site? >> i thought i sent an e-mail on that. i do not remember. i know i have an e-mail. i did do the research. commissioner moran: other questions for the commission? this is not an action item --

>> it is actually an action item. commissioner moran: is there any public comment? >> art jensen wiht bawsca -- with bawsca. we recommend that you approve the proposed schedule changes. we find them appropriate. we also recommend that the cost impacts continue to be included in subsequent reports to the commission. commissioner moran: any other public comment? seeing none, i have a motion and a second. all those in favor? opposed? motion carries. item 10. >> item 10, approve the selection of epc consultants in

the seismic upgrade of a division pipelines three and four at hayward fault to provide various project-specific construction management services, authorize the general manager to negotiate and execute a professional services agreement for an amount not to exceed $8,500,000 and with iteration of three years and four months. >> if you want to call both items, they are related. >> item 11, approve the plans and specifications and award a contract to seismic upgrade of a division pipeline numbers three and a four at the hayward fault in the amount of 31,320,000 and for a contract duration of 825 consecutive calendar days to the lowest, qualified, responsible, and responsive bidders. >> this is a great project milestone for us to move one of our most critical seismic projects into construction, so we are all very excited about that.

the bidder did bid $23 million under budget. commissioner moran: that is fabulous. >> i would like to move the two items. >> second. >> public comment? seeing none, all those in favor? suppose? the items carried. item 12. >> item 12, approved amended two to cs-898 new diversion dam road bridge of great with jones and stokes in order to add the completion of the alameda watershed habitat conservation plan to provide coverage for water supply system and land management operations and maintenance, and authorize the general manager to execute this amendment increasing the agreement by $584,000 for a total not to exceed agreement amount of $1,034,000 and with a time extension of two years.

>> this is a contract amendment to allow us to seek the alameda watershed habitat conservation plan, which is necessary as part of the permitting process for maintenance of our bridge and other facilities in the alameda watershed. this is a critical environmental step to make sure we can operate the facilities we develop there. happy to answer any questions. commissioner moran: commissioners, questions? is there any public comment? seeing none, can i have a motion? moved and i will take that as a second. all those in favor? opposed? the motion carries. >> item 13, authorized the general manager to execute grant agreements with applicants for the non-potable water program. funding of $500,000 is available for fiscal year 2012-2013 for this program. >> this is to authorize a water- conserving grant program similar

to our large waterscape grant program. it pairs of with the non-potable water program discussed earlier and will allow us to grant funds of up to $250,000 to building developers either public or private to assist in achieving significant water savings. the required savings would be toilet flushing in large buildings or up to 40% of all non-billable use within the building. this, together with the non- potable gives us a real good start to make inroads on the program. it has been a significant collaboration among the water enterprise, wastewater enterprise, city attorney's office, apartment building inspection, department of public health to make this a reality. happy to answer any questions. commissioner moran: thank you. commissioners, any questions? is there any public comment? >> i enthusiastically move. commissioner moran: i think we

asked for public comment. >> i think this is a great program and innovative. i am sure our friends from bawsca are eager to applaud and things like this, so i want to thank the puc for playing this leadership role. i think this is an example of how we can do a lot more to conserve and reuse water. i think it is fantastic we are looking at projected demand decrease by 2035 to 71 mgd in san francisco. it gives me hope that we can stay within our water budget. again, real-life concerns about the proposed water transfer -- i think this is an example of how we can avoid that. i do have concerns that when we're talking about the transfer of the last meeting, it sounded like ideas such as conservation

and things like the non-portable project -- non-potable project were going to be out of reach of the puc in august, which is great, but it means the decision could take place in july before we have discussed alternatives. somebody was telling me in the last report was that the true cost was almost $2,500 an acre foot, whereas conservation was about $1,100 an acre foot. i think that there will be a lot of projects that come in under the 2500 that have not been explored yet, maybe because they were seen as too expensive, but now we have a real price tag for the water transfer and we could look to a lot more innovation. i just have a concern about the timing, that that discussion should take place before a vote on the water transfer. again, thank you very much for your leadership on the project. >> the timing issue is that the

july 10 meeting will be the workshop, and the two items we will be discussing our more supply options and the sewer system improvement program, so actually, we are not meeting in august. we're meeting july 10 to discuss the things he brought up. commissioner moran: i should also said that the questions you had raised at the last meeting were also raised by bawsca in a recent letter to us. i have asked staff to come up with a concise answer to the questions raised, and hopefully, we will have that in the near future. >> we will be working on the. commissioner moran: but that is not the item before us. we do have additional public comment. welcome. >> good afternoon. i am the senior epidemiologist at the san francisco department of public health, and i wanted

to take an opportunity to let you all know that i have been formally working for quite some time on this project, and i have felt really privilege to be working with staff to allow this type of a project to move forward that will make it possible for development to move forward to safely utilize on- site water systems. the project is a remarkable example of how well our agencies can cooperate to develop a program that needs so many diverse needs. next week, we will be asking our health commission to consider a resolution in support of the health department's participation in the development of this program, and a look forward to continuing to collaborate with our city program as we move forward to improve and protect the environment, our water resources, and, of course,

public health. commissioner moran: we have a motion. and a second. all those in favor? suppose? the motion carries. item 14. >> item 14, approve the terms and conditions and authorize the general manager to execute an option agreement to sell 6.4 acres of real estate to kmj urban communities for $8.1 million. >> we are bringing this back to you for your direction under the terms and conditions that you directed us. it is very straightforward item at this time. commissioner moran: thank you. commissioners? moved and seconded. is there any public comment? all those in favor? opposed? thank you. motion carries. madam secretary, if you would call the closed session items -- we will ask for public comment

-- >> before you close, i want to clarify about when the building will be open for the public for the viewing audience. it will not be open on the weekend. i will be open on june 21 and 22 from 9:00 to 5:00 p.m. commissioner moran: thank you for that clarification >> greater than item 17, closed session, conference with real property negotiator pursuant to government code section 5495 6.8 administrative code section 67.8. under negotiation -- acquisition price and terms of payment. commissioner moran: thank you. is there any public comment on the closed session item? ok, seeing none, can i have a motion on to whether to assert attorney/client privilege?

motion to assert. second. any discussion? all those in favor? >> the commission is back in open session. the commission provided and directed the staff on item 17. can i have a motion as to whether to disclose discussion during closed session? >> motion not to disclose. >> those early favor? the motion passes. is there other business for the commission? seeing none, we are adjourned. thank you. >> thank you. >> well done.

>> good morning, everyone. i am the president of the board of directors of the golden gate bridge highway and transportation district. it is my absolute pleasure to welcome all of you here this morning. thank you so much for coming out. as caretakers of this

magnificent bridge, all of us here in the district know how treasured this landmark is and we know that each of us sees this bridge as our very own. it has its own personal meeting, its own history, and even its own emotional pull. that is why we celebrate this 75th anniversary with the theme bridging us all. since its inception, the golden gate bridge has had the power to connect us, and we happily share this bridge with the city, the bay area, state, nation, and even the world. to kick off our celebration today, it is only fitting that we are joined by so many special guests, the people, organizations, and public agencies that have been absolutely instrumental in helping us kick off this anniversary celebration. first, i would like to welcome the wonderful organizing partners of our 75th anniversary and all those

representing those partners who have joined with us here today. we begin with the golden gate bridge highway transportation district board and staff. [applause] raise your hand, board members and staff. the golden gate national parks conservancy board, board associates, and staff. where are you? [applause] the national park service. [applause] the presidio trust board and staff. [applause] and the elected officials and the staff of the great city and county of san francisco. [applause] than today we want to welcome our corporate partners who have supported our anniversary with funding and communications

support. we are especially grateful to our to our partners. genentech, represented by jeffrey teeter. [applause] hewlett-packard, represented today by kirsten rivera. [applause] kaiser permanente take, represented by yvette radford. [applause] wells fargo, represented by richard belite. [applause] to our cable partner, odwalla, represented by mason thorton. [applause] to our building partner, chevron, represented by russ yaro. [applause]

david miller. [applause] levi strauss and co., represented by jill nash. [applause] pg&e, represented today by tony early. [applause] who proposed to his beautiful wife on the golden gate bridge. a fantastic story. [applause] speeck products -- speck products, represented by their whole marketing team. [applause] thank you all so much. we would not be here without your brief and to support. please join me in expressing our gratitude to our media and promotion partners -- and this is quite a list. nbc bay area. [applause] san francisco chronicle, sf

gate, kgo, knbr, kfso, san francisco magazine, san francisco travels, telemundo, and because it is the 21st century, twitter. and of course, we are grateful to our business and individual contributors, through our joseph strauss legacy circle. we welcome all of them here today. for the lead car predict we thank bank of america foundation. thank you. [applause] and deep gratitude to the reset and of goldman fund for your the individual gift. thank you so much lisa and doug. [applause] today, on this memorial day weekend, we are honored to be

joined by representatives from our armed forces and san francisco fleet week association, who will be introduced later in the program. [applause] finally, we are thrilled to have so many public agencies, special districts, and elected officials joined us today. we have to of representatives from congresswoman woolsey's office and jackie spear's office. we want to welcome you. [applause] we have supervisors here today representing the board of supervisors from our six golden gate counties, and we extend our warmest welcome to all of you. [applause] today, the six counties that put up everything they had to build this bridge. we certainly honor you today. as we stand in the great city of san francisco, we want to offer a special welcome to the

president of the san francisco board of supervisors, mr. david chiu. [applause] david, we welcome your colleagues as well. of course, we are honored to have with us so many of our transportation partners at the federal, state, regional, and county levels. thank you very much. there are a lot of people to think. today, we officially open in amazing collection of gives made in honor of the anniversary. the british pavilion, as you can see behind me, is our new welcome place an interpretation. the enlarged josef strauss plaza is a place for visitors to gather. the renovated round house visitor program center is a place of education and discovery and memory. just beyond where we stand today, you can see our improved

trails and new overlooks constructed as an additional anniversary gifts. we hope you have your tennis shoes on and can go for a hike after this is over. we want to extend our sincere and special thanks to the golden gate national parks conservancy. they are a nonprofit connecting the bridge to a nearby national park. we thank them for raising the funds to celebrate the anniversary and building the improvements that we will dedicate today, in concert with the national parks service. we owe them a great debt of gratitude [applause] --gratitude. [applause] the conservancy did not do it alone. they were supported by a stellar collection of civic leaders who volunteer their time and talents to serve on the golden gate bridge anniversary steering committee. the committee is headed by cochairs nancye helman and larry bear.

without their of leadership, none of this would have been possible. [applause] i want to welcome not only them, but all of the steering committee, and the host committee members who are here today. please identify yourself. [applause] the bridge and the city of san francisco have a special connection. cynically, physically, and culturally. we have been so honored to have the city as an organizing partner for the 75th anniversary with a fabulous leadership of mayor at the and the super support of the special events director martha colon, as well as all of the city departments. ladies and gentlemen, please help me in giving a warm welcome to the mayor who bridges us all, mayor ed lee. [applause]

>> thank you very much for that wonderful welcome. thank you, everyone, for coming. we are glad you are so boring. that is wonderful. -- so orange. thank you for joining all of us. so glad to be here with our board of supervisors, police chief, fire chief, so many of our other department directors. a wonderful occasion to celebrate the 75th anniversary of this iconic symbol and a bridge for so many other reasons, not just transportation. in fact, when i was courting and the head back in hong kong those days, it was both the golden arches and the golden gate bridge that i tried to get her over here. it is my pleasure to join all of you. i want to welcome governor brown, leader pelosi. thank you for your wonderful years of service.

we just honored nancy for her 25 years in service. thank you so much for your service. jerry, your 2500 years of service. [laughter] i want to also recognize our general superintendent, frank dean, thank you for being here. craig milton, our presidio trust general executive director. brent mar, ceo of our national park conservancy. dennis mulligan, and general manager of the bridge highway district transportation. of course, i want to reiterate janet's praise for larry and