the plan was in terms of the renovation. it will be good to see maybe before tuesday. but i expect i'll be supportive. >> happy to provide that to you before tuesday. >> supervisor mar. >> yeah, i wanted to say i see judy from the arts commission in the audience and at some point knowing the status of that budget and the importance of it to the community, i also wanted to say that as a member of the first 5 commission that the child care support for the first 5 commission and this allocation is really important for the city's families, especially low-income families throughout the city. >> okay, thank you very much. thank you, ms. howard. to the budget and legislative analyst. >> mr. chairman, and members of the committee, approval of this revised requested amount of $6,5 89,395, that's shown in table 4 on page 35 of our report, would result in a

remaining balance on the city's state revenue last reserve fund of [speaker not understood] $810,605. we point out we recommend approval of that $6.6 million. we are recommending approval of $3,8,000,9 34 shown on page 5 of our report. and that is for monies that would cover unavoidable or already incurred costs. and then the balance of 3,580,4 61 which is shown in table 6 on page 36 of our report, we consider that to be a policy matter only because the board determines the priorities of what should be expended from the city state revenue reserve lost fund. * so, our recommendation are on the bottom of page 36. we recommend that you amend the ordinance to delete the human

service agencies, appropriation for in-house supported services administration and reduce a million 114,76 total requested appropriation by 581,300. that would reflect revised total of 5 34,0 06 remaining for the department of public health. and we recommend that you amendedth proposed ordinance on page 2 to reduce ,169,175 offsetting appropriation from state loss revenue reserve by the same 580,300 to 6,589,585. and our second recommendation is to amend the ordinance on page 2 to delete the 1,800,000 source of funding for the children with families commission. and on page 5 to delete that same 1,800,000 appropriation no longer needed by the commission. they have sufficient funds in their budget.

so, it's not under budgeting that. it would be fully -- it would be fully budgeted. it's simply that in this request it's no longer needed. and we recommend that you then approve specifically the $3,800,98 4s as i state and had we consider the balance to be a policy matter for the reasons i stated. we would be happy to respond to any questions. >> colleagues, any questions? all right, thank you very much. at this point i'd like to open up to public comment. if there are any members of the public that wish to comment on item number 6? good afternoon, board of supervisors. mar, avalos and farrell. my name is [speaker not understood], executive director of faith sf. we're a newly formed nonprofit, but we actually have a history in san francisco serving as

[speaker not understood] as well whitney young child development center. we currently serve several hundred children and families in visitacion valley, bayview, western addition, and nopa area as well as hayes valley. i am in front of you today that for the last couple years the state has reduced funding to child care about 20% over the last two years. so, we've had to backfill. and for our own fund-raising as well as being in front of the city, we really deeply appreciate the year of support that you have given us already last year and look forward to the continuing support of funding to backfill this. what it means to us specifically is that there's a long waiting list in the city. we have a long waiting list of people that need subsidized child care. a couple years ago it was about 3,000. right now it almost sits at 5,000 people waiting for child -- affordable child care slots.

and the working families going to school, working very hard, if they didn't get this child care, specifically at our site, we would lose about 30 families and children. so, if they don't have subsidized child care, they might not be able to work, not go to school, not be productive citizens of san francisco. so, i urge you seriously to consider this for this year and in future years to help the families that we serve on a daily basis in san francisco because it makes a difference. and this city is taking leadership if you do support this. i appreciate the time and effort and hope you support this wholeheartedly. thank you. >> thank you very much. next speaker, please. good afternoon, supervisors. my name is monica walters. i'm the executive director at wu yee children serve is he and we serve about 250 children in three centers in chinatown, one in the tenderloin, and one in vis valley. serving children, coming from predominantly very low-income

families. and i just want to echo what loland said. in term of the need for nonprofit child care providers to have us back some money. a recent 2009 market rate survey by the child care providers showed that the annual cost of child care in san francisco, for instance, is $15,000, and the average preschool cost in san francisco is 11. so, you can imagine what the subsidies do in terms of helping to backfill and provide opportunities for our working families, to have safe quality places for their children not only to [speaker not understood] at work, but to begin their educational success. so, again, just urging you to really consider this appropriation not only in this year's budget, but in the coming years and wanting you to also know we are definitely in sacramento advocating for changes in the state cuts because we know that's really important, that we can't continue as a city to carry it alone.

so, just again, to urge you to consider the appropriation and to approve it this year. thank you. >> thank you very much. next speaker, please. good afternoon, board of supervisors. first of all, i would like to thank -- my name is maria [speaker not understood], we're a statewide organization advocating at the state for child care. first of all, i would like to thank you and office the mayor for your commitment to meet the needs of our most vulnerable population. it is essential to maintaining the diversity of the city and the public health [speaker not understood] as a whole. i am here to speak on behalf of parent voices [speaker not understood] children who are on the waiting list for child care. as our economy picks up, we want to make sure we support the continuing care for these children and also those who have been desperately waiting for child care so that their parents can go to work.

last month i got a call from a parent who works at san francisco general hospital. she's a receptionist. she has three children. her schedule is very tight so she was supposed to be here [speaker not understood]. to her younger children need child care, one is school age so she needs after school care. and she was in a panic when she got notice that her child care was being terminated. not because she no longer qualifies, but because the state budget cuts -- wants to cut those in the upper income level. and these family need to keep their jobs. they want to make sure they don't lose their jobs. fortunately this parrottv didn't lose [speaker not understood] because [speaker not understood] was able to give her a program that would prevent her from losing her job. one thing that i would really like to highlight is the constant tug and pull of budget cuts and [speaker not understood] and the safety of our children.

and the sooner approve of backfill and this add back backfill to help [speaker not understood] the sooner we help these families. [speaker not understood]. thank you. >> thank you very much. next speaker, please. good afternoon, supervisors. my name is mollie steyn ert, and i'm with stepping stone, we run four day care centers in san francisco. and i'm representing all of our seven nonprofit adult day health centers who were affected by 10% rate cut about a year and a half ago. the proposal that you're seeing is a retroactive charge that was put on us to pay back about a half a year of that that wasn't collected.

this came at a very extraordinary time for us last year when we were not only suffering the 10% rate cut, but an additional 5%, at a time when our centers were undergoing a transition to community-based adult services. and also transition last year to managed care. these two program changes put a tremendous amount of threat to our programs losing members of our program through that transition and just all the systems that needed to be changed with our newmanaged care providers. * this $400,000 request really, really make a huge difference in cash flow for our seven nonprofit adult day health centers, keeps us afloat while we get through this period. so, i really thank you for your

consideration of supporting us on this proposal. >> thank you very much. next speaker, please. good afternoon, supervisors. i'm cathy davis. i'm the executive director of bayview hunters point multi-purpose senior services and we've been running adult day for 27 years. and this has been the toughest time for our families and caregivers to survive trying to get to managed care. we do understand over a period of time that it will get better, but the trauma of going through all of these budget cuts and trying to keep our agency alive and keep our centers open has been really difficult. and i appreciate the city and county of san francisco who get what we're doing, that we're helping family members keep their loved ones at a center during the day so that they can work, and we're supporting people who would otherwise have no place to go to give them the health care that they need. and i just wish the rest of the world would understand what that's all about. so, i just want to say thank you for the support that i know

that we've been receiving, the mayor being willing to put this money aside to help us with this one time only cut. and we're struggling to survive, but we're going to make it and we're going to do what we need to do and it's because of the support we get from all of us. -- you. so, thank you very much. >> thank you. next speaker, please. * thank you very much. my name is cheryl may good and i am the administrator for the [speaker not understood] health care center located at judith street in the outer sunset. we are a program of jewish family and children services and we serve approximately 220 frail elderly mono lingual russian seniors who are residing throughout the city of san francisco. and i would just like to concur with my colleagues that we are very appreciative of the opportunity to request the $400,000 today to fill the 10% rate gap that we've experienced. unfortunately, this is a permanent 10% rate gap and it

does impact all of our clients that we serve. with the expected loss for our senterra loan of $240,000 each year, our center is still expected to operate at the previously required staffing level and provide all required services in a safe environment, which we are 110,000% committed to. this critical fund thattion we're asking for is necessary for our centers to function and makes a difference in our ability to continue to provide vital services. and as my colleagues also mentioned this last two years have been extremely difficult with the transition to managed care and also just the possibility that our centers would no longer be around. this has created a lot of fear and distress within our centers which we have had to manage and we have also had to work diligently beyond what we ever thought to ensure that our clients would continue to be eligible for our centers. so, what i'm asking for and hopefully that we will get is

the $400,000 that we are requesting today. thank you. >> thank you very much. next speaker, please. hello, good afternoon, board of supervisors. my name is sarah chan, the program director of self-help for the elderly adult services. we're located in the richmond district. every day we serve around 70 to 80 very frail mono lingual china speaking seniors and i just want to take this time to ask your continued support in this home and community based services because we know the whole state is looking into the health care reform. this is so important we keep this kind of program intact. and i really appreciate during the past you have been supporting this program. i just let you know that during this past years, the cbac, community based adult services

[speaker not understood] it has put tremendous burden in the program and the seniors. and [speaker not understood] caregiver and knowing her mother is no longer eligible for the cbac program and she had just become mentally distressed and commit suicide. fortunately our program continued to serve those seniors. so, she's able to be treated. so, i just let you know that this is tremendous impact to the family. so, the daughter now is being treated and she can continue to go to work and, so, this is so important in san francisco. we have so many caregivers and this program will really provide them opportunity to work. so, i ask your continued to support. thank you. >> thank you very much. any other members of the public who wish to comment on item number 6? seeing none, public comment is closed. supervisor avalos.

>> skew me. thank you, chair farrell and thank you, members of the public, for commenting and for the mayor's budget office for their presentation. * actually, this supplemental was anticipated from the last budget cycle. we knew that there were going to be gapses in adult day health and there would be gaps in child care funding. * and i was expecting this a lot earlier. also, i wasn't sure if the bayview opera house is also part of what was being considered, but i knew that was something i wanted to support. i have to add that at the time we passed the budget at the committee last year, last year, end of june, there was a consideration for using some of those funding from the state budget reserve for education as well for dealing with cuts in education. so that we had a vote early this year some of us on the board who had actually considered this funding to be appropriate for that.

so, i would like to support this and would like to motion that we accept the budget analyst recommendations and move to the full board with recommendation. >> okay, we have a motion to accept the amendments proposed by the budget and legislative analyst. we can do that without opposition. and a motion to send the item number 6 as amended forward with recommendation to the full board and we can do that without opposition. all right, mr. clerk, can you please call item number 7? >> item number 7, resolution authorizing the general manager of the public utilities commission to execute a 20-year lease, for $52,324 annually with an annual increase of 4 percent, with los altos hotel associates, llc, for approximately 47,916 square feet of land known as bay division pipelines 3 and 4, parcel no. 232a, located in the city of los altos, santa clara county, california, for hotel parking and recreation purposes. >> thank you very much. we have the puc here.

>> good afternoon, chair farrell, members of the committee. john updike, director of real estate. so, this item is a lease of just over one acre of land owned by the sfpuc under their bay division pipeline 3 of 4 right-of-way in the city of los altos shown on the map here. it adjoins a marriott residence inn. that address is 44 60 el camino real. so, this gives you a detailed look at the area. the lease is with los altos hotel associates, llc, it is for a term of 20 years. it's an existing parking lot. it was a prior lease of 10 years so this is a new lease coming forward with an initial term of -- a full term of 20 years. payment streams are detailed in the third page of the report from the budget analyst. it begins at a rate of 52,3 24

dollars in year one, increases 4% each year. [speaker not understood]. establishes a new base rent each five years at the discretion of the general manager and the puc. this rate was established through an independent appraisal as a rate with which i concur. given the leased area, only benefits from as you can see from the picture, the adjoineding property, the lease was not competitively bid as you would normally find. in this case we wanted simply to be sure the rate was reflective of market and that appraisal gave us that assurance. this is a project that is exempt from c-e-q-a. it is an existing parking lot. there's no physical change to the area under lease. any questions, happy to answer. otherwise, we also have anthony with the puc here if you have a technical question. >> thanks. and i apologize for not recognizing you there earlier. >> no problem. >> just to be clear on this one, this parking lot, there's no ability for us to develop it or use it for anything but what it is being used for today, correct? >> that's correct, there are limitations given the actual

facilities underground as well as the rights to traverse the property. so, the parking lot is actually the best use. >> okay, thank you. colleagues, any questions for mr. updike of the puc? okay, thank you very much. to the budget and legislative analyst. >> mr. chair, members of the committee, as mr. updike has indicated, the first year rent under the proposed lease is 52,3 24. that's 4,141 or 8.6% more than the existing annual rent which is currently on a month-to-month basis of 48,183. under the -- and that was based on an appraisal and it's considered to be fill market valued. that has been reported to our office. as you can see on table 1 on page 39 of our report, that for the first four years the estimated rent given the 4% increase is payable to the puc

would be about $222,192. we recommend you approve this resolution. >> okay, thank you. colleagues, any questions? okay, thank you very much. at this point i'd like to open up to public comment. any members of the public that wish to comment on item number 7, please step forward. seeing none, public comment is closed. >> i'd like to move approve. >> okay, we have a motion to approve item number 7, send it to the full board with recommendation. we can do that without opposition. mr. clerk, can you please call items number 8 through 10 together? >> item number 8, hearing to receive a regular quarterly update from the public utilities commission on the water system improvement program to include information on projects completed to date, the corresponding costs for completed projects, and schedule and corresponding costs for upcoming projects. item number 9, resolution adopting findings under the california environmental quality act related to modifications to the san francisco public utilities commission water system improvement program calaveras dam replacement project, located in alameda and santa clara counties, including the

adoption of a mitigation monitoring and reporting program and a statement of overriding considerations; and directing the clerk of the board of supervisors to notify the controller of this action. item number 10, hearing to consider release of reserved funds, public utilities commission (file no. 100337, ordinance no. 92-10) in the amount of $117,000,000 to continue the construction work on the calaveras dam replacement project and make project construction changes to address the unexpected geological conditions for the water system improvement program cuw395. >> okay, thank you very much. and we have puc here to talk about items number 8 through 10. >> good morning, mr. chairman, members of the board. julie labonte and louisa director. if you wouldn't mind connecting the computer, please. so, we have three items today related to our program on your agenda. and since some of you may not be as quite familiar with our program, i said i'd start with a very brief overview of the wsip as well as the status

report of where the programs stand as of today. then you'll summarize the issues that have triggered the need for some cost increases on the calaveras dam project. so, shown here is a schematic of our regional system. snow melt that is accumulated on the hetch hetchy reservoir is transported across the state 167 miles all by gravity all the way down to the city. 85% of our supply comes from the hetch hetchy reservoir while 15%, the remaining 15% comes from local reservoirs in the east bay and the peninsula. the calaveras reservoir is our largest local reservoir. it's located in the sunol valley near the city of pleasant on. and although our system has performed brilliantly for nearly a century now, * it is very seismically vulnerable as it crosses three of the nation's most active faults.

the calaveras reservoir actually has the calaveras fault right underneath it. to ensure the continued delivery of water following a major earthquake, the city undertook the wsip about 10 years ago. this is one of the largest capital water program of the nation. and it includes 82 projects spread geographically over 7 different counties. the current budget approved for the program is 4.6 billion. and all our projects, except the calaveras dam project, will be -- is on track to be completed by 2016, mid 2016. i think one of the key outcomes of the program will be the construction of what we call a life line around the bay area that will be able to withstand a major seismic event. and you can see the various components that makeup that life line. only three of all these components are still in construction. everything else has been

completed and the major components actually remaining are the two tunnels that are shown in dark blue, the ones on the eastern side of the bay as well as the one under the san francisco bay. this is a status of the program as of the end of 2012. the number in parentheses are the numbers remaining in each phase and the dollar amount is the total value of those projects. you can see that we've completed 59 of the programs construction, 59 of the 82 projects in the program. but you can also see at the same time that a lot of our larger projects are still in construction. we have 17 projects worth $2.7 billion currently active in construction. the good news is we only have six projects in pre-construction. i'll give you a very brief update on some of the key projects.

the program involved some major improvements at the city's two major treatment facilities. on the peninsula, at the harry tracy water treatment plant, the photo on the left shows you the 800 piles that had to be put in in the foundation of a new treated water reservoir. there is work going on at that plant throughout the plant. it is pretty amazing that our operation staff is still able to deliver water out of that plant. that project is now 35% done. the photo on the right is the sunol valley water treatment plan. there were 95% done and substantial completion is scheduled for april. state safety officials at qualified the ground conditions at the new irving ton tunnel to be some of the most challenging that they've ever encountered in california * . this is due to the fact that there is some great amounts of groundwater inflows as well as hazardous gas that are present

in the tunneling of that project. and supervisor avalos actually witnessed firsthand some of the challenges encountered by the miners when we took inside the tunnel all the way up to the face of the tunnel. we have now excavated 80% of the tunnel and excavation activities are scheduled to be completed sometime mid summer. the bay tunnel is a five mile tunnel under san francisco bay and this is really truly the first tunnel under the bay and we achieved a major milestone in mid january when the tunnel boring machine connected with the receiving [speaker not understood] in new work. now the next step is to install a 9 foot diameter pipeline inside that tunnel that will begin in april and will be completed by the end of the year. now, calaveras, when the

original dam was built in 1925, it was the largest earth enrock fill dam in the world. and in 2001 * the state official ordered we lower the water level due to the seismic vulnerability of the dam due to the calaveras fault is within i believe 500 feet from the dam. with an original budget of $450 million, this is the largest wsip project. we knew from the beginning that was going to be our most challenging project. all dam projects are always very challenging, involve a lot of risks because they involve a lot of earthwork and a need for a good knowledge of the subsurface conditions. the project consists of building a new dam downstream of the existing dam. that new dam will be of equal size. as you can see on this photo, the diet is very constrained.

there are multiple fault zones within the site that has a lot of impact on the geology of the site * . and there's also a presence of very high concentration of naturally occurring asbestos that adds to the complexity of the project. in mid 2012, unexpected geologic conditionses were discovered above the slope, above the spill way of the dam. we conducted a lot of additional exploratory work that led to the need to redesign that slope. * that redesign is generating a lot more material, 3 million cubic yard of material that had to be removed and disposed of. in turn, we had to evaluate the environmental impact of that additional disposal. that was done through an addenda through the project e-i-r. the finding of the e-i-r were that there were no additional significant impacts due to this additional disposal.