shots, the only notice there is a potential voter would hear? >> yes. all of the boating clubs are fully aware. local conditions. everybody knows everybody else. >> i do not understand. >> gun clubs have shot over water because there is nobody there to hit. >> my understanding isgñgñ,$ the things they are shooting bailout overland. -- shooting bailout overland. ñ8ñ8 yards. >> they are contaminating the water? >> there is lead shot in the like, yes. -- lake, yes. >> the club was roping off a

portion of the latke? that would hopefully it gives folks some morning. that raises a series of issues. >> that went bankrupt 20 years ago now and that cost is about $20 million in repair money to clean it up. >> that is really disgusting. $20 million to clean up a lake. what is the estimated clinic for this lake? >> $10.7 million. >> none of that is receivable to the gun club. >> they have made communications said they do want to participate

in the cleanup. they think they might have some resources. >> do you anticipate those resources to be realistic? >> i would not venture an opinion at this point. president moran: thank you. communications. the commission haslglglh quite k of communications. one of the items on the west side recycled water project, that was partial response to a question i posed some time ago asking -- i appreciate the information was presented. we need to have some additional discussion about the broader picture. it is a complicated issue that -- it to come back to the

commission. we will be continuing the discussion. >> i have a comment. i do not understand how the reverse osmosis is going to be cheaper. i find the whole thing. curious. -- a very curious. >> it does cost more, but as a result, you are able to use more water in different areas. the unit cost per acre foot of water goes down by adding reverse osmosis. the total cost, yes, it is more expensive. >> ok. president moran: part ofqmqmrq e additional discussion is for the portion that would not be served, if you include that in the equation, the numbers are different.

any other questions or comments about the communications? public comment on the communications? commission business? seeing none. commissioner caen: under the regional quarterly, under the project performance summary is, i am curious to know why we are exceeding the limits, why all this is showing up now. we did not have indications of this beforehand. [laughter] >> you are referring on the

schedule status? we have had some work going forward in the alternatives analysis. the presence of slow down a bit. we expect a revised budget scheduled ready by this fall. commissioner caen: that is going to be coming up? >> yes. president moran: part of that, if memory serves, is in response to trying to have the rate of rate increases at a more manageable level. >> one of the things we have been looking at, can we stagger the project in some way that allows the rate increase to be smoothed out over time? commissioner caen: overall, looking at all of these reports, i am very surprised that we are now finding this

out. they are either over budget or behind time, this should have been reported as we go along. i thought it had been, but i was quite surprised how many red areas there are. this is not only you. >> i will leave the wsip for julie. we're catching up on all of our other capital projects. that transparency, i think, is pointing those things out to us. yes, there are problems with projects. we are finally confronting them in a better way. we will go through a phase where we are going to have reds. we will more aggressively stay on top of them. commissioner caen: ok, i will

except that for now. >> this is literally a step forward for the organization in terms of tracking of capital projects. we're starting to take the lessons we have learned and apply them across the board. there will be a little bit of a painful shaking out for us. president moran: that is one thing i have been asking staff to do for some time. :c:c8yreporting structures and applying that across the board. so that we have the same degree of transparency to the retain capital projects. that is the good news. the bad news, when you open the door, sometimes what you see is not pretty. >> before we started doing these zszsolreports in a consolidated fashion, you never would have known.

you would never have gotten any quarterly reports. president moran: was there a question for julie? commissioner caen: i am surprised that we are learning these things after the fact. we have not been apprised of it as it comes to be. there are some issues with your reporting later on that i will bring up. >> on wsip, we have been doing these reports for some time. on the other reports, the idea that the upgrade is now seven months behind. that is projecting that it will go to 2017. the whole project has been

slower than maine thought he was going to be. it is not that we are -- we are ++>> good afternoon,

commissioners. there are two items. the one on the calendar is the water system improvement we have done that because of the speed of things. our information should be up to date because we will have more frequent reporting. >> good afternoon, commissioner. i do hope you feel that i do apprise you timing and made at every meeting. we try to give you a five- minute update with 86 projects, you have to be selective. if i could have the connection to my presentation, the quarterly update covers the period of april 1st-june 30.

i do not seem to have control. over the presentation, which will be a problem. >> [inaudible] >> there is presenter blood. -- presenter mode. the whole computer is frozen. is the presentation in your package, commissioners? president moran: yes, it is.

>> do you want to skip my item? ok. >> you will be moving the pages also. the public will not be able to see it, that is the problem.

>> [inaudible] >> close enough. ok. president moran: item 7a. >> i think we are good to go. shown here is the summary of the progress that was accomplished the past quarter. on our active projects. two of the 19 projects that were in construction moved to close out. the close out of the pump station was also completed during the quarter.

this is the updated status of our regional and local projects. that is what it looks like at the end of june. as with the past several quarters, most of the focus is in construction. we now have 17 regional and local projects worth nearly $2.5 million -- billion dollars active in that space. we only have seven projects remaining in pre construction. construction has been completed on 57 of the program's 81 projects. here is a comparison of the overall cost and scheduled appearances at the program level between the last two reporting

quarters. starting with the regional projects cost. we are now forecasting the cost of our regional projects to be $11.9 million more than what had been budgeted for these projects. this represents $12.9 million improvement over the forecast of the previous quarter. we currently have $144 million in the program management reserve that can cover these overruns. a large portion of the forecasted cost increases are associated with the peninsula pipeline seismic upgrade project, which i have reported to you. we have all large forecasted increase in the habitat program. on the local program side, we are forecasting a $21.8 million underrun, which represents an improvement of 20 million in additional savings from the previous quarter.

the regional program is still forecasted to be completed by the approved completion date of july 2016 and on the local program, we are forecasting 2.3 month delay over the approved completion date of mid-2015. these forecasts do not take into account some of the recent challenges we have encountered at the calaveras dam project. this is the cost trend chart that i shared with you every quarter. the forecasted program cost shown in blue still trend much lower than the total program budget, which is shown in red. the program management reserve balance of 144 million is the

same as it was the previous quarter, but that balance will change in coming months as we have $20 million in additional savings to move to the program management reserve and those savings realized from the issued the contract for the seismic upgrade. the savings will be partially offset by funds that will be moved out of the reserves to cover some of the additional contract that this commission has approved during the reporting quarter. we're planning to seek approval from the board of supervisor budget committee for these changes to the program management reserve sometime in september. those requests will be based on the status of the program at the time. i have reported in the past month some unexpected conditions at the calaveras dam project.

the geologic features were observed. our team of engineers and geologists are continuing to pursue additional exploration to better characterize the nature and impact of these features. unfortunately, it appears that the latest findings show the impact from the project will actually be more significant than we first anticipated. we learned last week that the permanent will have to be modified. it would require the removal and disposal of a lot of additional material. furthermore, we also discovered a new deal logic feature that is not in our contract document between observation hill and hill 1000. we have been hesitant to

speculate on the exact cost and scheduling tax because we are still conducting additional investigation and those will not be completed for another three- four weeks. given what we learned last week, and given the significance of what is ahead of us, we thought it was important to inform you and give you a better idea of the impacts your looking at it. on the cost side, the impacts are likely to be at least $60 million. the impact on schedule would be at least a year. like i said, we are still conducting work. those are the worst impacts on the program since the inception of the program. we are not pleased about that. i am personally involved with our project team and consultants and contractors to closely

monitor what our options are. i am keeping upper management apprised on a regular basis. we are still very early on on this project. it is only 20% complete. there are other large risk areas that could have further impacts. >> that would definitely affect -- >> it would reduce significantly the amount of available money in the reserve. it will not push us over the overall cost of the program, but that nice reserve of $144 million will be significantly eroded. we are now a accelerating work on the eastern segment of the pipeline system project in an

effort to meet permitting deadline of october 21 -- october 31. you will recall that we chose to accelerate that work to make sure we make that deadline. we will incur cost to do that, but those costs are lower than just allowing the project to continue through the next allowable seasonal window, which will begin next may. the accelerated work is proceeding as planned and we are confident we will be able to complete all pipeline work by the deadline of october 31 as long as we do not encounter any unanticipated challenges. the schedule has already then impacted -- already been impacted by significant events

of bird nesting. we're keeping our fingers crossed. the progress on the bay tunnel continues to be excellent. we are 60% complete. we are 3.25 miles in the bag. since the beginning, we have achieved 100 feet per day. we recently had a few records of days where we have been able to double the production and achieve more than 200 feet in one day. last week, we started excavation of the shaft on the east side of the tunnel. we are on track to complete the project by the end of 2015. after 13 months of digging, miners from two different headings that underground and achieved on the segment of the

tunnel. we also continue to make good progress on the other side despite continued difficult conditions. last week, we reached 10,300 feet of tunnel excavated out of 18,600 feet. we are starting to install the final pipeline between -- pipelining. last project i wanted to update you on. that facility has been operational for more than a year, we recently received certification for this facility. in their letter to us, they announced its as an example of sustainable design. the interesting thing is that

this certification did not include the solar panels shown here. the contract only required silver certification. if we wanted to pursue gold certification, it would be an easy thing to do. we're trying to keep our costs down. that is the story of there. i would be happy to answer any questions you may have. president moran: commissioners? ++ calaveras situation is

clearly a major. i reviewed the various resources we have. we're looking at the geologic data. it is a difficult circumstance and one that you know there is risks. i think it is not a good news, but where there is good news, i think we are in a -- i think we are appropriately on top of that. >> they are the best we have on the program. i would like to also mention that i -- i gave for a briefing and we will invite some of the representatives to decide and give them further information. we're keeping our regional partners very much informed. president moran: one of the

aspects of extending the completion date, that extends -- i know there has been a lot of concern to make sure we maintain schedules in order to minimize the risk of seismic and vulnerability. this is not that kind of a project. this is a supply project. the seismic vulnerability was taken care of. we're trying to restore the water supply impact of that. this does not put us at any extended risk. other projects do present that kind of a risk. >> the model shows that in the event of the calaveras dam

earthquake, the project -- the system would be sustained. you are absolutely correct. we lowered level, the way the program is devised that source would not be required in the event of a calaveras event. that is the events -- >> we went out there last month to take a look. it is a stunning sight. you get a real sense of what is going on when you see some of the ancient, we will be taking out -- people out in early september. we would be happy to include you. it is an amazing work.

we have had some problems. that seems to have calmed down. the bay tunnel has gone quite well. the calaveras dam is a problem. it is one that is taking up a lot of our concern. the other item, we had a bond sale this morning. >> good afternoon. the good news does continue on the financial side of things. borrowing money is still very cheap because there is a lot of maturity. the city sold geo-bonds. seismic upgrade to the general

city facilities. we achieved a 2.7% rate for a 20-year bond. 38.4 million was sold this morning in addition to $252 million for san francisco general hospital. just short of a million dollars a year would be savings for taxpayers for the auxiliary water supply system. it is very big news and a continuation of what you have heard recently. happy to answer any questions. >> this will have an impact on the rate issue? >> this is the one unique part of the capital plan portfolio that is covered by the property tax bill. voters put it on the property tax bill as opposed to the water bill. >> we will have a comparable study