conditions similar to 2007 we'll continue with the reduction and color to 997 we'll likely need to move to percent reductions at the inn the spring of next year and begin the alteration of water supply if you have any questions, i'll be happy to answer them. >> any questions. >> yes. >> so i'm sorry can you put that last slide up again so you're saying by 2015 this time next year if we don't have improved conditions we'll go to 20 percent. >> in the water year switches over on october 21st that's the water year on the 14 so when i

sass say the customers are doing well, we'll chief in 2015 it's for october 1st through cement 30th we're going to be watching our precipitation production and in the event that in springtime we're following somewhere around the hydrologic conditions of 2007 we'll maintain the 10 percent reduction and have carry over storage so we'll still meet our demands if we have a year like 1997 in terms of that we'll want to take additional action if you go it down we e done we can't take action we'll be following the precipitation we like to wait for the snow pack

and how much we need to anticipate in run off. >> so i hope i guess april if not before that 20 percent alternative analysis will be pretty primed and read for us to have the implementations pretty big. >> yeah. >> any other comments thank you very much. >> so the next item is a querulous update amelia will start the presentation. >> good afternoon, members of the commission amelia cruz assistant general manager of the structure dpa will give the body of the

quarterly update of the water system i wanted to highlight one with the i've ton tunnel i have a few slides on that so the new construction started in august of 2010 the tunnel excavation is completely in 2013 and the steel liner inside the tunnel was pledged the in 2014 there's been a process of filling that with drought and it was scheduled for disexhibition last month we did find a failure in the liner this was recorded the last meeting or the meeting before that and here's a photograph of the external pressure introduced by water wanted to explain the process the gray area represents the

actual tunnel the interior line of the tunnel and the gray area is the annual space once the steel liner was put in place with the spaceers there's holes and the contract injects groet it is given the fact we're going through a seismic zone if the seismic activity puts little pressure on the site if set that will hold the strength necessary but we believe what will probably happen there's water intrusion prior to the grout so

lowell the pressure to be on the pipe the contractor has been complying hair crotch to set up a procedure to take out the 25 section of pipe and replace it and regrout it with a heavier grout it was starting east and reintroduce grout into the annual space uss a 50 pound per skiech grout to push the cellular grout towards the edge and finish with a third pass with a psi with increment this will guarantee they fill every void that water intrusion to prevent this from happening again they're working east and

about 3 hundred feet of the original failure this is a photograph as you can see it is identical in the failure it is due to water intrusion the contractor has stepped in and replaced that and regroutd that section the important thing to throw the entire section from east of the shack to the outer west portal where the water pressures are the highest the contractors about go in and redo the entire space at one hundred and 50 pcy i effectively creating a skiech of the piping therefore gee no failures they have not asked for additional pay and everything with the contractor they've spending their own money and scheduling the work on their own time we

pushed out the disexhibition to february of 2015 we'll not see my impacts on us i wanted to bring to your attention so you can we had assigned retrofit for the annual that is signed off by the engineers and the contractors is fixing this and schedule for disexhibition in 2015 i can answer any questions. >> i have a question our saying their redoing zone 2 and 3 and they're going to do zone 4. >> yes. they'll do if i can get the slide back up the area that is kind of in red the area they've come through with their pass and they'll

continue through west portal because of the higher portion abused of the water table they'll come back with a phase two grouting and phase 3, 3 passes to strengthen it. >> what about zone 1. >> we don't as you can see in the elevation the water table is not as high the depth of the tunnel innovate as high so the pressure is not as high in the other two zones we've had the engineers look at it and we've seen no problem we'll continue to admonishment zone 1 through february and if we see anything we'll do the additional fix but not the level of water pressure in zone one. >> if we should in the future have failure in zone one i would

assume the contractor will - and we have a warranty performance water i didn't so if we see a failure we'll use the warranty to fix it. >> any other questions or comments thank you. >> thank you mr. wade. >> good afternoon, commissioners dan wade the director the quarterly report covers july 1st through december 30th, 2017, go to the

slides please over of all with his up the regional program is 86 percent complete and the overall program is 84 that will 9 percent complete at the end of the third quarter the construction activities continue to be the main focus with 16 projects with $2.8 million and construction has been completed on 63 of 83 projects and only two projects are left in preconstruction i'd like to highlight a few mrishlts first of all, we completes the environmental review with the regional storage and recovery project and advertising the construction we've continued to have an

exemplar safety record based on $7 million recorded hours and so you know the last time incident rate is only 6.5 whereas the industry average is 1 buyout 4 we work hard for safety to maintain that record we've completed one hundred and 68 of the 2 hundred and 2 shutdowns and any shut down that's complete that reduce the residual risk in the program we've which you have had the success on 34 projects but have as part of that project now all projects will obtain a level of service by the end of the promising program but we have a significant level of achievement service today. >> in terms of the program costs the program continues to be on budget and is forecasted

for $756. million it's on schedule mainly all projects will be complete by the middle of 2016 the replacement project and the alameda creek and the ground water storage which will be completed by 2018 the change orders we have 79 points $8 million that's included in our packet isn't there communications i wanted to say those change orders are covered by the contingency in the program and budgeted the largest change order was $69 million was the impacts for landslide b open the cal versus project i've spoken about that it was negotiated in march but the change order didn't get

processed until this last quarter so that's why it was high there's one $2.9 million for the tunnel. >> before we leave the chart can you run the program costs access to zero. >> certainly. >> just from a parent standpoint by limiting the range you're not paying for the provision a realistic picture of how close we are. >> fair enough okay so the largest change order with the calaveres project it was a $2.9 million for the bay tunnel that was to insure a reliable

service from the bay tunnel you did commissioner caen asked for me to highlight some of the red flags in the report the only red flag on the active is the portal project it is six months late now the original the main project has been in service since 2012 it was completed and has been in service since that time this is the are portal protection there were issues with welding and they've been corrected to no cost to the puc but sometime for the project to be reinspected and certificate the wells are done and it has on reinspected so that project will be complete in january. >> and the close out is in the

consent calendar right. >> it is it is in the consent calendar for the construction contract and the total project close out will be in january. >> aren't there other red flags. >> actually, the regional report no there are not. >> okay i didn't note them why don't you continue. >> okay stl there are several other quarterly reports related to the water c i p the only red flag p is the portal protection. >> on the waterside we'll have steve richie provide you explanations on those. >> very good. >> okay. >> i've shown this slide before

i like to show it is a good reminder this shows the transition projects in the program i'm sure you're aware of we have tree and storage projects as well but the blue projects are complete and the green are projects that are still in construction and 5 projects remaining in construction i want to point out that 3 are currently in service the seismic updates and the bay tunnel and the transition updates we've achieved the level of services on those projects the only one are the tomb and the peninsula pipeline seismic upgrades so this demonstrates that that seismic pipeline is part of the wissop

in terms of recorrection the creek capture and we have completed the draft conceptually report and we've actually started to work on the environmental impact report and that's on schedule and budget then the ground storage recovery we finally listed the eir in august and it was approved and advertised in september and expect to receive those bids before thanksgiving now i'd like to transition to highlight some of the major construction projects that are currently active as usual we'll at that start with the project this is making good process and, in fact, ahead of the baseline schedule this photograph was taken in october shows the excavation for the new dam and

including the one the abatement is seven hundred feet from top to bottom we've excavated over $6.5 million cubic to date the construction in the photograph there's over 20 thousand cubic of concrete to prepare the foundation as well the securely concrete for the walls stone based construction in the lower right of the photo has begun and you can see the projection with the dam takes place and couple of photos here this is a verify looking down stream with the concrete replacement of the left abatement this is to replace landslide materials that had to be removed and use the concretes for the foundation interests about 10 thousand cubic yards of

concrete for the rack replacement this backflow concrete it's hard to see the scale from the photos but that is about 35 feet thick and a new 10 thousand yards of concrete this next photo shows a close-up this is looking down stream that wall is 40 feet tall it is consistent of 50 thousand yards of concrete and the spill will be 50 feet long to date we've placed 10 thousand square feet in the walls this photo shows the left abatement and the construction from the other side of the veil from the right side you see the height that have that above the spillway and the construction continues you also see the red

drug this is drilling holes over one hundred feet deep to inject to fill i think the foundation for a solid seepage above the new dam next i'd like to move to the bay tunnel project i'm very excited to report we did accomplish the milestone in september we celebrate the commission of the tunnel being put into service during the 25 of the loma prieta earthquake some of you were there we're excited to have accomplished the significant level of services improvement to the with his up photo on the left is a picture of the media event in 19034 being the first helpfully e hetch hetchy deliveries throw

the water temple to the crystal springs restore and on the right is the same locations in october when we celebrated this milestone those are the first waters arriving from the bay tunnel to the reservoir there's still work to be done again, this marks a major level of service increase to the seismic and delivery program i just want to mention the seismic upgrades on three and four are on schedule and expect completion by the end of this year that project is in service we have the treatment plant and this project continues to be on schedule, in fact, we're in the last major shut down the work is going well, i was out there the

other day with the treatment and this photo shows one of the filter based on to achieve that finally the peninsula piping seismic upgrade project is in full swing construction is very strong there's 5 speculate sites we're replacing aging pipelines and some rectified pipes that cross several known active faults on the peninsula and those pipelines will allow water that's delivered from the tracey's upgrades to reach the customers in a seismically reliable way if you have any

questions, i'll be happy to answer them. >> questions? seeing none, thank you very much >> thank you and that concludes my report. >> any any public comment on that item on the general manager report? our next item, please. >> item 8 is consent calendar may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests removed from the consent calendar and considered as a separate item at this or a future hearing. 8 a approve amendment one and execute two amendments not to exceed 25 thirty-four cents thousand dollars each and execute not to exceed to 49 thousand he each and for the

time extension the approve increasing the amendment by $250,000 c accepting the modification extending the contract by 3 hundred and 49 consequent calendar days and authorize the final payment to the contract 8 d approving the contract 48 russ johnson not to exceed $49 million and the work contract w did $4,745,200,000,000 plus f accept contract w w 5 hundred and approve the modifications increasing the contract by 4 hundred and 19 thus plus with a time extension of 49 calendar

days and g accept contract and paragraph the modifications for 70 scent days and authors the payment for the contract h the construction costs for the contract in the amount of 4 hundred thousand and the duration of 27 days and authorize amazing maximum amount i approve the clarification and the award of the contract number in the amount of one million dollars 5 hundred plus and j authorize a government for the administration and distribution of state grant funds up to $401 million plus arrest k authorize the memorandum of understanding with is a last night for the disbursement of

state grant funds up to two hundred and 34 thousand 3 hundred. >> commissioners any item you would like to see taken off did consent calendar. >> i'll move it. >> second. >> general public comment any item to be taken off the consent calendar. >> any further discussion all in favor, say i. ii opposed? the motion carries next item. >> i will read closed session prior to item number 9. >> thank you. >> first item 11 conference with the property at 639 grant street in san francisco and negotiation prices in terms of payment 12 existing unmitigated claims city and county of san francisco vs. the pacific was and electric

company and, pacific and 14 san francisco vs. the pacific gas and electrical company and the and item 16 will not be heard. >> thank you any public comment on that item on the items to be heard in closed session seeing none, may i have it motion to assert. >> all in favor, say i. >> i . >> we're back great. >> co-sponsor nor that's - okay. we are reconvening from

closed session i'd like to make the announcement item 11 no item on 12 was settled item 13, 14, 15 on a action and 16 off the calendar may i have a motion regarding whether or not to disclose. >> motion not to disclose. >> all in favor, say i. opposed? the motion carries other new business. >> i have one i'm wondering in todd at the last meeting i'm feeling separation anxiety no one more. >> we're going to have a special thing. >> oh, we are. >> yes. >> he didn't know it but he knows it now. >> now today? >> no next week. >> well. okay.

>> we'll safe it there then i'd like to talk about the november 25th meeting has been scheduling cancelled the in relation r next it december 9th and any other business n this meeting is adjourned t t