similar to the last presentations on this, we are doing each commission meeting for the commission our total reservoir storage is about a million acre feet which is 69 percent maximum which is good

but not a panacea. precipitation is good this weekend. the outlook is mixed. there is definitely more needed and we'll continue to evaluate this and bring it forward to you. this slide shows a reservoir storage as of february 9th. there is a million acre feet in storage and there is only about a half million acre feet. sounds like a lot of water but much of that is in cherry reservoir. there is a limitation in how we manage the water in storage and we'll talk about how to manage that depending on conditions going forward. precipitation chart here is orange line is 76-77 and the red line finally passed the red line and we got a precipitation in hetch hetchy. that mates -- makes it the

third driest year. we are a long way but certainly it was a big help this last storm. it also mentions the snowpack where there is an uptake in the snowpack up at the higher elevation where we got up to 8 feet of snowfall. that is up to 5 feet of precipitation. it was a good storm but again looking that the slide we are still below the levels of 2007 and 2013 with a black line of the average. we are below the average so far. there is a couple slides here that try to show what happens if going forward? this slide shows the green bar is the amount of precipitation that we have had so far which is about 9 inches precipitation in hetch hetchy. for every couple of inches of additional precipitation of

shows an increase in the amount of water that we expect in storage at hetch hetchy reservoir. as of september 11th, we expect to have 30,000 feet in water in hetch hetchy after the snow is melted. once we get to about 6 inches more of precipitation or at least two storms or maybe three, between 250 acre feet and 285 acre feet by july 1st, that's where i will have a complete nights sleep, up until that point i will not have a complete nights sleep. if we have about 12 inches precipitation which is about a storm, that will fill hetch hetchy. that would be a great place to be. we still need a fair amount of precipitation out there, 2-3 maybe 4 good storm systems to get a

comfortable level of storage in our system. the next picture is a slightly different one. this shows storage in hetch hetchy from october 1st given the levels of precipitation we might expect over time. the point is to show you that blue bar which is the increment of the storage that we get to keep in the system assuming the 10 percent stays. that's a good number to have there. what it shows also is that the effect of conservation starts to taper off as you get to a full reservoir. it doesn't add any water to the reservoir. that doesn't mean we do not need to continue the call for precipitation, because if we don't get snowfall past september 1st, the green bar going the other way the benefit will still be there. i believe next to next water

year. that will be the projection at this point. will we need to go more than 10 percent? it depends on the precipitation that we get from here on out. here is the official notification requirement to our customers . march 1st we need to give a notification. april 15th, a final estimation of our water and around that time if we need to declare an emergency. we are not sure if we need to go that far. we called for a demand reduction system wide. the mayor did issue yesterday directive to city departments that it requires to further reduce their consumption by 10 percent. they have reduced in the department but it's calling for more. the

department water conservation plan and educate staff and visitors and non-portable water and water supply. mr. carlin made reference to this in his presentation about the rim fire. the cherry lake, the lower cherry aqueduct that can take water from cherry at early intake. that system was damaged by the rim fire. we have a project going forward to repair that damage and fix some preexisting problems better to convey water from cherry into our systems. we are working now with contracting staff and environmental reviewers to see if we can put that project in place by fall. in effect, october 1st is the date i have asked people to put that project in place. even if we

get a couple more storms, this asset will be necessary as guarding from a problem next year. we need to move on this. we are also breaking ground on our local water ground project this year and drainage where we pump a lot of ground water to keep basements dry and try to find ways to use that water in the system. any water we can take advantage of we are pushing for out there. last but not least we are fully supportive of constructive drought legislation. there is a house pass relative to the drought that is not helpful. senator steinberg has introduced and measure and senator feinstein has introduced a measure and we'll see if we can get some benefits that will help us deal with our drought situation here. i will be happy to answer any questions.

>> commissioner vietor? >> i have a question about the city department directives. do the city departments buy water from us, the enterprise departments? >> yes they do. >> is that market rate? >> it's not subsidized. that is the rate. there is the exception we have the interruptible rate for certain city departments for irrigation usage. those can also be cutoff in effect. >> how much water do our city departments use relative to our system? >> i dug up that number the other day. i don't have those numbers. >> by percentage i'm curious if it's going to make a difference. >> certainly parks and recreation and hotels and energy and steam loop system. so collectively, the city departments do use a fair

amount. the director has the right number, about 5 percent of water is used by the city departments. >> 5 percent? >> yeah. one of the things we are working and plan to work with is the large water users of city departments. so one of the things that we are planning to ask for as part of this legislation relief is that is that they are ready to fund ready projects. one of the things that we are moving forward is the direct install program. when you actually rebate someone for their toilets, it doesn't cover the cost of in stalling them and this will subsidize that cost because we know that parks and recreation have a lot of facilities that have the old urinals or toilets that are 6 gallons per flush where the new ones are 1.28. this is a way to really reduce their water use and also reduce the

city's water use over all so we have more water available for times like this. >> thank you, mr. richie. >> the next item is i would like to have dan wade to give an update on the water system improvement program. >> good afternoon commissioners. dan wade. i'm the new decorator -- director of the water system program. i just want to let you know it a privilege to be entrusted with leadership of this program going forward and i look forward to working hard to provide leadership and to its successful completion over the next few years. if we can get the slides. this slide shows

the overall program status and the water system improvement program both regional and local combined are about 84 percent complete, 93 1/2 percent local. our primary is local with 16 projects worth nearly $2.7 billion in construction actively. we completed construction on 62 of 82 projects . we only have a few projects left of the ground water restoring recovery and the pipeline which will be going in in the spring. we have a number of accomplishments to report this last quarter. as has been reported in the last quarter we passed the instruction of the program. you can clearly

see in august 2012, we had a much higher rate of work hours than we do in december 13th. we do anticipate that rate to come back up in the spring and summer months this year as construction gets more active in the summer months, but we are clearly passed the peak of construction but we have a long ways to go. 20 percent of a lot of program is still a lot to complete. we did obtain certification of the environmental impact report. we have received 5 bids and awarded that contract to a ranger pipeline. we will award it to a ranger pipeline and will inspected to begin in spring of this year. at 20 $20.7 million. this is a great accomplishment and our record continues to be outstanding.

we have a lost time instance rate from a high industry average. we don't want to rest for a minute when it comes to safety, but i think it is commendable that our teams are working safely in the field. we've also completed 150 out of 180 shut downs and as you have heard in the past, every shutdown that we complete is another incremental portion of risk that is reduced in the program. so it's great to see the numbers shut downs coming down in the program. finally not listed on the slide is the in fact we did complete the new tunnel last fall in the reporting quarter. that is a tremendous accomplishment and significantly reduces the risk on that project going forward. now, we do have a cost trend that is somewhat disturbing and i want to just point out that there are several projects that are causing this forecast of about $40.4

million over the approved baseline of $4.6 billion. these recent increases are due to four projects of . there is the alameda creek project and an advance of $4.2 million on that project t reason the ground water storage has a recovery program of the approved budget and the new tunnel project has a forecast of $90 million. that is primarily due work stop stoppages -- and some ground. those have surpassed us now. we did also have to buy a property to maintain the right-of-way for the watering walls and that is forecast

for this variance as well. and of course as has been well document, the project has continued to have issues in the left butment and i will talk about that in a few minutes. currently on calavera is $20.1 million over budget on the approved project this is foundation grade over excavation and replacement of the rock that is not there with concrete to provide an adequate foundation for the spill way. it also includes additional shot creek as it comes down, but it does not include the forecast that is currently under evaluation for the area b landslide removal. i will talk more about that in a few minutes. those cost are currently under evaluation and will be further understood here in the next couple of months and part of the next

quarterly report. we have a next quarter of the improvement program for the anticipated sip overcast overrun on calavera and we are going over the baseline program which we have presented to you in the meeting in april. quickly the preconstruction update we have the alameda capture project, the sip committee approved the project in december and we anticipate starting the environmental impact report in june. we have the pipeline seismic upgrade that i mentioned. we expect to start construction in spring. we are currently working on temporary easements and access and memorandum of understanding and ground recovery we are responding to public comments and those are on going.

completion of final package is anticipated in spring. now, a little bit more detail on the alameda creek project. this is known as the upper alameda filter project. the current project scope includes two stage pumping to capture water from the alameda creek to snow valley and that water is released to alameda creek and recaptured downstream. the collection point is water that naturally filtrates which is shown on the slide to san antonio reservoir or to the water treatment plant to meet water supply needs. the project was restarted in spring of 2013 and we went through a rescoping refinement in last fall to incorporate new operational requirements. namely rather than just pumping water to central

reservoir treatment plant, it requires to have the flexibility to blend multiple sources of water to feed either those facilities simultaneously. that is going to require additional valve and controls which is the reason for the forecast increase on the project. now, the reason of ground water storage and ground water project is to construct 16 ground water wells for the capacity of 27 million gallons and water is connected to customers through the system. the project is running into some challenges both during design and during the final review phase. there has been a number of comments that have come in on the draft eir which are more complex than the team anticipated.