so that we can get every high school students -- [applause] scene -- >> so we can get every high school student in san francisco a paid internship, because unlike the president in this town we pay people when they go to work. [laughter] [applause] >> this program will help our kids now to earn money, to learn new skills, to keep them from going down the wrong path. these young people will be exposed to opportunities they never knew existed. they could see a future in an industry they never had access to. they could see themselves making a difference in a world in a way that they never thought possible . they will flourish, and we will grow our workforce right here in

san francisco. [applause] >> will continue to lead the way on so many other important issues. we will protect the environment, and fight climate change. yesterday, we all know pg and tee declared bankruptcy, and there's a lot of talk about what this could mean, but let's talk about what we know. san francisco knows how to run a clean power system, and we are going to get to 100% renewable energy by 2030. [applause] >> if this bankruptcy provides an opportunity for public power, supervisor peskin, we will take it. [applause] [laughter] >> i will be working with the city attorney, dennis herrera, and supervisor peskin to make

sure that whatever happens to pg and e., we are prepared to. i'm also working with city attorney herrera to address questions around the testing of the hunter at's pointe. [applause] >> we need to be clear and transparent with the public about this project. along with supervisor walton, we have requested that ucsf, and u.c. berkeley put together an independent team to review the procedures for the retesting of parcel a and g. [cheers and applause] >> these are trusted institutions. they will provide an independent analysis so the public can feel confident in the results. we also have to break the gridlock that is on our streets and create a more functioning transportation system. people may continue to choose to

drive in san francisco, but that can't be their only choice. i will work with supervisor peskin on a measure that will charge our ride hail companies to relieve congestion on our streets. [applause] >> we have to keep pushing forward street facing invasion zero projects, including building protected bike lanes on high injury corridors, like the one we are building by upside on valencia street that made it so hard for you to get here. [applause] >> we will also continue investing in helping our transgender residents with housing and services, and to those in washington, d.c. who continue to try and erase transgender people, it won't work back not here in san francisco. [cheers and applause]

>> now more than ever, as the president continues to fear mongering about walls and slander our immigrant communities, san francisco is proud to stand as a sanctuary city. [applause] >> we are a city that is surrounded by bridges, not divided by walls, and we will stay that way. [applause] >> when i took the oath of office six months ago, i never pretended i could solve all of our problems. i believed we could solve them working together. i believed in a government for all of us, and i still believe that we are working to turn the tides, and i hope every san franciscan can feel the difference when you see our

public works crews, our -- out power washing the sidewalks and picking up trash, i hope you feel the difference. when you see our police officers walking the beats in the neighborhood, and talking to the merchants and the residence, i hope that you feel the difference. when you see our homeless outreach team and public health workers helping people suffering on our streets, i hope you feel the difference. when you see a new shelter open, a new affordable housing project go up, or a new bike lane that gets finished, i hope you smile and feel the difference. i hope you believe with me that you hold your head high and take pride in our city, and what we can do together, because we are san francisco. we will meet these challenges, and we will continue to light a better way for the future of our city. thank you all so much for being here today. [cheers and applause]

>> good afternoon. i would like to call to order the regular meeting of the san francisco public utilities commission. today's date is tuesday, march 26th, 2019. roll call, please. [roll call] we have a quorum. >> before you, you have the minutes of the march 12th meeting. are there any corrections or changes in the minutes? >> i moved for approval. >> i second. >> is there any public comments on the march 12th minute meetings? minutes, period. [laughter]. >> seeing none, all those in favor? >> hi. >> opposed? motion carries. next item, please. >> item four is general public

comment. they may address the the -- the public on items that are not in today's agenda. >> commissioners, i want to address the digester's linked to the treatment plant in the bayview hunter's point. when we were having our committee meetings and more community meetings, we were promised that we would get updates on the digesters which you all know is nearing $3 billion. it started with half that amount , but now it is nearing $3 billion, and we haven't been apprised of why it is going to

cost us that much. this proprietary design from norway. so what happens is when there is no proper communication with a community on important matters, some of the staff and the san francisco public utilities commission still are of the opinion that because there are millions of dollars of community benefits available, they can donate as they please. the controller's office has been doing some auditing and doing some investigation, so some entities within the san francisco public utilities commission are not doling out the money as they used to do it before. but we have a new modality, i

call it a modality, and that is when the contractors are given a contract as part of the contract , they are supposed to be using the community benefits to help the community. they don't know how that works. because i know, the contractors can do the contracting work, but very few contractors have the ability to do good community outreach. very few of them know really what is happening at ground zero , and very few of them know that our infants, our children, our youth, our young adults and seniors, those with compromised health have been compromised all of these years and this community benefit is supposed to help them with things like wellness centres and so on and so forth. so we have to learn to look outside the box when it comes to

community benefits, and not have this concept that ali baba and the four g thieves can do as they please because they got some jackpot. thank you very much. >> thank you. mr. rosenkranz? >> thank you, commissioners, for the opportunity to speak today. i will try and squeeze two quick things into my three minutes. may i use the projector, please? first, two months ago, we asked a polling firm to ask a question in one of their telephone and online surveys about whether folks in california would support restoration if it can be shown to occur without san francisco losing any water supply, and the results are --

[indiscernible] -- 3-1, the answer was yes, and we sent this out to our list of supporters by e-mail and got a lot of enthusiastic response. i got a rather unenthusiastic response from a close friend of the p.u.c. who criticized the way we asked the question and we had a spirited debate, which was kind of fun, but not public, underwear she could have more discussion of that opportunity to keep you folks aware of the water and power and restore the valley. we try to do it in the california courts and we have been denied, so for now, the reservoir is in place until we find a member of congress that wants to do something about it. second thing, i don't know how many of you are familiar with this fund -- this fund 400 page book. this was the freeman report

distributed to every member of congress in 1912 when the reservoir and other system facilities were proposed. the first 40 pages are full of discussion about how building a reservoir is going to enhance recreation at the park, and at the end of all that, i will put the -- [indiscernible] -- it says its absurd for anybody to assert otherwise, yet we have seen through collective action -- i think the city and the national park service, together, that the park is visited by less than 1% of visitors. the gate is closed, there are limited hours and so forth, and so while we are waiting for the day when the valley can actually be restored, we will

simultaneously be pursuing increased recreation of every four -- of various forms. we hope to work collaboratively with you and your staff, as well as the department of the interior and the national park service. thank you. >> thank you. any other public comment? seeing none, next item, please. >> item five is communications. >> under communications, i would like to make a remark to mr. ritchie. i always compliment him when there is allowed rain, so i will do so again this year, but i think it's time to stop. [laughter]. >> so whatever your powers are, we don't need to do it anymore, okay? [laughter]

>> item six. other commission business. >> do we need public comment on item five? >> public comment on number 5, communications? >> item six is other commission business. >> seeing none, next item, please. >> item seven is report of the general manager. >> good afternoon, commissioners the first item is clean power s.f. update. barbara hill will give you an update. >> good afternoon, commissioners i'm the assistant general manager for power. for the update today, i will cover our usual clean power s.f. customer enrolment and service status, and secondly, an update on the rates and the status of pg and the's right changes for 2019. clean power s.f. service on the current enrolment effort continues to move around successfully. the program opt out percentage

went up since the program launched. so our retention rate of customers is about 97%. the super green upgrade rate is at 3.8% of our customers and we do expect that this number will decrease as we enrolled a large swath of customers in april. that means that clean power s.f. has over 4,000 businesses and households in san francisco that have elected to receive 100% renewable electricity from clean power s.f. as you know, we are in the midst of our largest and last major customer also enrolment. in five days, customer council begin transferring over to clean power s.f. generation service. that happens on the regular metre read date starting on april 1st, so customers will begin to cut over throughout the month of october on their metre read date.

by the end of that enrolment, we expect we will be welcoming at least 250,000 new customer accounts to clean power s.f. service. we continue to remain very visible in the community -- hopefully you have seen our bus adds that premiered last week. our staff also continues to be out in the community, tabling events, and making themselves available to educate and inform the public about the clean power s.f. opportunity. that engagement has contributed to 300 additional super green upgrades since my report on march 12th. moving on now to an update on rates and rate changes or the -- that are being anticipated for 2019. at the last meeting, i reported we will continue to provide you with updates and the rate changes are happening a little differently this year than they have traditionally. on the 21st of february, the california p.u.c. voted out what

they referred to as the alternate proposal and the proceeding that sets there generation rates and the exit fee that our customers pay. so that decision paved the way for them to set their 2019 exit fee and generation rate, and it turned out to be more favourable to c.c.a. then the first proposal, with lower increases in the actual exit fee. at the last meeting, that caused commissioners to ask, okay, if it is a lower increase, what does that actually mean? so all things remaining equal, rather then seeing 3030 topped 50% increases for commercial customers, we expect to see increases of 28 to 47%. it would likely also mean that residential exit fees are going

down further then the 1.9% decrease we were anticipating in december. since the last report, they have taken steps to split up their 2019 it rate action, that normally would have been consolidated on january 1st of this year, so effective march 1 st, they put in place a portion of their 2019 rate change, increasing rates for both generation and distribution services that they provide. on the generation side, the parts that clean power s.f. competes with, there rates went up one point for to 3.8% depending on the customer class. it was higher charges to customers for generation. they have indicated that they do not expect to implement the exit fee changes until july, at the

earliest. so they are required to file their proposed rates with the california p.u.c. by mid april, so we will know and have more information to share with you on what will happen with the exit fee part of the bill. in the meantime, without changing clean power s.f. rates, customers are seeing greater savings than they did before, since the beginning of the year. clean power s.f. rates were set to provide a 2% cost savings to customers on there generation supply as of january, and that is after accounting for the effects of the exit the. after the march 1st increase, those same rates are now delivering three topped up 5.6% savings on the supply cost. that is equivalent to about 1.5% to two? five% savings on the bill.

given that rates continue to deliver savings to customers at their current levels, we are waiting to implement the clean power s.f. rate change that you authorized in december until we know what the exit fee changes will be for 2019. as i said, we expect to have more information about those changes by mid april. once we know what they are, we will bring them to you. will not need to act on them because you gave the general manager authority to act on them in a december action, but as they wait for the information to come forward, we are preparing to make this changes. i am happy to answer any questions you may have. thank you. >> thank you, very much. it all sounds very promising. i just wanted to clarify so i understand. so the current regular c.c.a. customer, not the super green, with the current generation are

paying 1.5 to two-point 5%% less than apg and the customer? >> that is correct. >> and they're getting 50% renewable versus -- >> they're getting 40% renewable >> they just revise there's. i can't quote you exactly what it was. it is between 33 and 38 if memory serves. >> they just publicist the change in a filing at the securities and exchange commission. >> and then the super green, how does that compare price lies? >> we are seeing a savings for our customers. a little more than 2% relative to the 100% renewable project

and of course, it is 100% renewable. >> right, right. and then -- >> c no, it would be around 2% higher. we have been charging for super green, about 2% more than green, the green product. that differential remains the same, but of course, the savings relative to the default product is greater. >> i think i understand that. cost -wise, it would be the same if i were super green, or if i was a customer right now. >> i would have to get back to you on what the differential is, but i think we are still a little bit cheaper than their 100% product. >> great. and last question, with the proposed adjustment that we don't really know about yet, but assuming that this proposal goes

through, will that affect those numbers? >> yes, it will affect the numbers and we will come back to you with what we recommend be our 2019 changes as a result, which would likely be a slight increase to what we have today. >> it will probably depend on customer class. >> right. >> but i do expect that we will have changes, and we will bring them to you. we will remain cheaper then the pg and e. products. >> thank you. >> thank you. >> any other questions? any public comment? seeing then, mr. kelly -- seeing none, mr. kelly? [indiscernible]

>> i am the c.f.o. nancy is delivering the report, but before i get into that, i just wanted to let you know of some managerial changes that i am making in terms of responsibility for managing audit and compliance. since joining the p.u.c. into thousand and eight, they led the development and growth of the insurance and interim controls team to build a robust audit and compliance at the s.f. p.u.c. that you hear about every quarter. in 2018, i promoted nancy to co- deputy c.f.o. in charge of accounting, financial reporting. you're meant and that was in addition to all of our audit and compliance management activities to better balance responsibilities among deputy cfos, i am reassigning responsibility for audit and compliance activities to charles perle. as nancy delivers her compliance

reports, i just want to thank her for all of her work to build a successful function at the p.u.c. and for all of her commitment in helping me manage the finance the organized -- manage the finances of the organization of the last two years. i really want to express great appreciation for her. nancy, i think this is your report. [laughter] >> good afternoon, i am the deputy chief financial officer for financial services. i'm here presenting the quarter -- quarterly report.

we ended quarter two with 41 projects in total. eleven were completed and 16 where in progress. of the completed -- of the past quarter, eight audits were started as typical in the fall of each typical year. we will see that we have a tear. the statements for 17 and 18 were for water, wastewater, and power and clean power s.f. those are followed by the comprehensive annual financial report and the popular annual financial report for 17 and 18, and we also had a single audit for federal grants that was related to the four-point $7 million reimbursement product that we received related to the the northpoint rehabilitation project. we also had three other audits begin related to performance and those were for state water resources, and another one related to the city services auditor for the crystal springs

construction contract closeout. of the five that were completed last quarter, these include the scheduling for the california independent system operator, and also the 2017 green a verification audit. you maybe familiar with the second one as it was completed and the report was made final once it was issued by the centre for resource solutions in november 2018. they also completed the audit for citywide procurement cards. the franchise fee audits for the energy centre and pacific gas & electric. each month we pick and audits and we will be highlighting the energy centre the. the issue the report in december of 2018 and the summary here is the energy company was granted a franchise in 1993 to install,

maintain, and operate a steam pipe conduits throughout the city. each year, energy submits a statement of gross receipts and to they pay franchise fee payments to the city. they are responsible for administering and reporting on nonfinancial aspects of the franchise while the controller's office budget and analysis division is responsible for receiving and reviewing statements on the payments themselves. the objective of the auditor for this particular audit was to ensure that the energy and city departments complied with chapter 11 of the code and franchise ordinance for a calendar years 2015 and 2016. they found the report had a total net gross receipts of 41 million. that total 318,000 that was paid to the city and county. they also noted that the p.u.c. and the controller's office complied with their responsibilities and said there was no recommendations for this particular audit.

and the current quarter, ending march 31st, we are expecting to complete a royalty fee is audit, more evident ministration review, and also an information technology network penetration test for vulnerabilities. we issued, even though we are listening -- listing it here, we are listing our statements on the 24th which were presented to the commission in february, and we issued our comprehensive annual financial report and the annual financial reports just a few weeks ago, and those will be presented on the commission meeting on april 9th. upcoming audits include clean power s.f. data privacy audit and the news taxed by the controller's office. lastly, an update on the open audits and outstanding audit recommendations. it shows the target date for -- and it is inclusive of all audit recommendations. we closed four additional recommendations this past

quarter related to the wastewater enterprise divisional performance audits leaving 17 open, and that represents a 90 3% completion rate for all years the audit compliance staff will continue to work on these audits and they have been doing a great job. i wanted to commend them for that. you will continue to report out on these as they come along. that concludes my reports. thank you. >> first of all, i wanted to express both the commission's and mine -- my personal appreciation for your efforts over the past ten years to build the audit and compliance function at the p.u.c. and to your commitment to the p.u.c., and i am so pleased that you are able to grow here, and become the new deputy c.f.o., congratulations. >> thank you. [please stand by]

the way we do that, when we get her reports, we meet college students, and understand the empirical data when it comes to the budget, the finance, and i

have some reports from the comptroller's office, we offer them together, and see how it adds up. so you do require somebody like nancy, who's laser beam focused and does a wonderful job. and you also require the commissioners to back her up and support her, which i hope you will do. extraordinary commendation signed by the mayor and the board of supervisors, that's a nice way of honoring an employee. very easy to do, because i've done it before. so nancy will be there, or i've heard so. she's going to be around. and i hope one day i schedule a meeting with her to talk about

all her good work. thank you very much. >> president caen: thank you for your kind words. any other public comment? next item. >> clerk: the next item is a quarterly budget status report. >> commissioners, eric sadler, cfo. i have a quick quarterly budget status report. may i have the slides, please? and this represents, this is the second quarter budget status report and reflects results through december 31, 2018.

let's see, we have positive net results projected for wastewater and the cleanpowersf enterprise. we're experiencing lower revenues in three enterprises, so modest decline in water sales, or modest lower water sales revenues versus the budget, same with sewer, and a little larger reduction in power revenues versus the budget. the financial results meet coverage and reserve policy targets except for the power enterprise, where the fund balance is projected to not meet the operating reserve minimum due to the low revenue. just to touch briefly on each enterprise, we're experiencing lower water sales, partially offset by one-time nonoperating revenues, so the lower water sales are a result of the wet weather. you will notice that we actually saw an increase in revenue on the wholesale side, but that's

largely because of minimum purchase requirements from three wholesale agencies that we recovered in fiscal year '19 that relate to fiscal year '18, slight reduction in retail water sales, and a small increase in nonoperating revenues and that's water installation service charges, so we had more water installation service revenue than expected. on the wastewater side, slightly lower revenues because of lower retail water volumes and billed sewer volumes, and we have a savings of about $4 million, largely due to salary savings from vacant positions. on the power side, we're seeing reduced power, water, gas, steam sales revenues partially offset by cost savings. the power sales revenues are about $10.1 million below the budget, and it's primarily from

slightly reduced retail municipal energy below the forecast and largely related to delayed transfer loads, meaning customers who transfer from pg&e service to sf p.u.c. service. those transfers happened slower than expected, and also we had budgeted for a recovery from transmission revenues from the district, presupposed a finalization of settling some of the contract issues with the districts that has not materialized, so we're seeing lower revenues. on the usage side, we're seeing a reduction in steam and gas expenses. that's largely an offset. that's a pass through item. we're seeing a reduction in transmission and distribution costs of about $1.3 million, and then higher power purchase costs, largely because we needed to purchase replacement power

because of the shutdown from mountain tunnel. in terms of cleanpowersf, we're seeing a savings of about -- our revenues are pretty much on target with our budget. on the uses side, we're seeing about $2.5 million in savings on our operating budget, and then we expect to realize the $22.1 deposit to reserve funds, so good news there. here are the financial ratios stack up versus the commission policy. you can see on the power enterprise, the fund balance reserve is 20% versus the 25% minimum. what i will note is that the action that you took last commission meeting with respect to the capital budget included the appropriation of some funds that actually it was $15 million will go to the fund balance reserve, so you'll be above the

commission's target for that reserve level. so that concludes my report, and i'm happy to answer any questions. >> one question, if i might. the -- you showed that the cleanpower, there was some savings and salary levels. is that a problem? in that are we unable to hire people that we need for that program? >> if i could ask a.g.m. hill to come on that. >> thanks for the question. i think we're doing okay on hiring for the cleanpowersf program. one area where i would say we are challenged is in getting strong expertise in the origination in power supply area, managing the portfolio. we're finding that that's a skill set that's remuneration levels may outstrip us in the

market, so that's been a challenging area, but it's really more an issue that the city's seeing, that we're seeing citywide, or at least agencywise, that it takes a while to fill vacancies. it's not that we're unable to. it's just the city end of the process. recruitment's not the issue, except for that one exception. >> okay, and, obviously, that's a pretty key function. >> yes. >> and if we need to be making adjustments to compensation levels, we shouldn't be shy about that. >> yeah, thank you for that encouragement. we do have a proposal that's winding its way through the process in the city to adjust the classification to meet that. >> great. >> thank you. >> thank you. >> i do have a question. where do you see the power sale revenues going in the future? >> i think we see the power sales revenues for the element

that is a result of the, i think it's about $5 million reduction versus the budget with respect to district sales. that will be ongoing. the rest of the reduction will be recovering for the rest of the year. >> okay. commissioners, any other questions? any public comment? >> clerk: next update is hetch hetchy capital improvement program. dan wade. >> good afternoon, commissioners, dan wade, director of water capital

projects and programs, infrastructure division, and today i'm pleased to report on the second quarter of fiscal year 2018-2019 for the hetchy capital improvement projects. and i'll just say up front that all of the projects are on schedule and budget as the end of the reporting quarter. now, there have been a couple of things that have happened since that time that i just want to make you aware of. one is that the contractor for the home power house rehabilitation project submitted a time extension request, so that's currently under review by the project team, the construction management team, so we'll come back with a status update on that in the next report. and then also on the kirkwood pennstock project, the procurement of the couplings for the pennstock was extremely challenging, so there will likely be a time extension on that project, as well. but as of the end of the reporting quarter, those were

under evaluation. and so moving to highlights of the reporting period, several fairly significant things happening this last quarter. one is, of course, the 2018 mountain tunnel interim repairs. as of the end of last quarter, we were still preparing for that shutdown and preparing to do those repairs. since that time, of course, the work is done and the shutdown is complete. and so i'll be able to say that again next quarter. the mountain tunnel improvements project, which is the large mountain tunnel project that's been going on for six years once we are able to obtain ceqa certification and permits and so forth, should all of that go as planned and requested, we would expect to advertise that project later this year. but as of the end of the reporting quarter, we completed the 65% design and incorporated comments. the one royal substation

rehabilitation project, which is a design build contract in the last quarter, they'd completed the 100% plans and specifications and had started the four-month shutdown for construction on that project. and then, lastly, the 2018 march storm damage emergency repairs project, which actually several emergency contracts that we issued last year, that i'm sure you remember well, we've -- at the end of the calendar year, we obtained substantial completion on the majority of the work, and so we were able to actually fill the reservoir to elevation 905, which is not full, because there's still some work ongoing, but we expect that in april we'll be able to fill the reservoir, the remainder of the way. and so just a few slides, you know, just to reiterate on the mountain tunnel interim repairs, and we call this phase two,

because phase one was in 2017, which is the first phase of the critical repairs to fix defects in the tunnel. in this latest phase, we continued the repair, the liner defects in the lower portion of the 19-mile long tunnel. we initiated the contact grouting between the liner and the rock to get intimate contact between the liner and the rock, the concrete liner, which makes a more sound structural section. and then we paved 5,000 feet of the tunnel invert for access improvements, and the shutdown, as i said, is now complete. there's still work ongoing to close out this contract, but it was very successful, and we'll be able to report a little bit more on that next quarter. for the warnerville substation rehabilitation project, we did issue notice to proceed and started that four-month outage

on october 1. a lot of work has taken place, both last quarter and in the current quarter, which is almost done, because we're here late in the quarter to report, but we performed factory acceptance testing, circuit breakers, other electrical equipment and control rooms for the transformers in the last quarter. and then for the kirkwood power house bypass repairs, the water turbulence damage in the bypass chamber was repaired as part of the mountain tunnel project. the steel lining had been ripped out and corroded, so we were able to install steel plates to repair that. and so that was a critical piece of work that is now complete. lastly, the interim repairs in moccasin reservoir, as i said, are substantially complete except for some ongoing work that we expect to finish this year, and with that i'd be happy to take any questions.

>> president caen: questions, commissioners? any public comment? >> commissioners, i have nothing against wade's comments and presentation. but chronologically speaking, the first inspection done by mountain tunnel by jacobs, i need some of you commissioners to review that document. the first inspection. and how much they charged us. and why is it at the tail end we found out all these defects, and then we had two options, one option was to fix the tunnel, as

has been described by wade, and the second one maybe to dig a new tunnel. and we chose not to take that route. so again, chronologically speaking, we need to go to the source, because on the commission you have a few commissioners who have what i call institutional memory and experience. we need to fall back on that, so that those type of mistakes are not repeated. now, that similar mistake was repeated on -- where we found fissures and we had to remove over 1 million tons of dirt, et cetera, et cetera, et cetera. and that is for those who pay attention to what is happening when a project starts initially,

how the votings are done, who have access to the results of the borings, all this takes a lot of work, and not too many people are interested in doing it. because when presentations are given, of course, wade was not there, he came later on, you know, somebody stitched the clothing and wade had to come and do the repairs. and he's done a pretty good job. i have nothing against his presentation. but i say is that when we allow this huge firms like acon, urs, jacobs, to conduct these evaluations and charge us a lot of money, and then we have to revisit this and spend more money, then we are not doing justice to the taxpayer. that's all i'm saying.

and i may be wrong. and if i'm wrong, then i'm wrong, but that's how i think. i like to look at the project from the beginning and see if due fairly and justice was done. thank you very much. >> president caen: thank you. >> good afternoon, commissioners, nicole sankula. ceo. first, thank you, dan, for his presentation and the work going on on the cip. i was excited to watch as the process went on this year. i did want to call to your attention, though, that i think is missing and you need more information on. the quarterly report in the cover letter did talk about summary information about the work going on at moccasin. the moccasin emergency repairs, the interim repairs, and then

there's also the long-term repairs at moccasin, and yet the quarterly report is not complete in the information it provides, i believe, because how this project showed up. obviously, it was a year ago this month when we had the emergency situation, the p.u.c. acted appropriately, promptly, and quickly to deal with it, but it's now a year later. this is going to be a significant project moving forward, and the question should be, what is the scope, the schedule, and the cost for all those pieces together? how are we dealing with them in the intervening period until we incorporate them fully into the cip, and providing that information to you, to bosca, and to the water customers. so i would urge the commission to request that staff provide you a written report about the grouping of moccasin repair projects so that you fully understand the status of where they are at today and where they plan to move forward. thank you. >> president caen: thank you. is this a possibility?

>> i would say that we would work with bosca to figure out how we can group it in a way that makes sense. >> president caen: any further comments? next item, please. >> clerk: the next item is a sewer system improvement program quarterly report, and then i think we will also do the water -- wastewater enterprise capital improvement program. is that right, howard, you're going to do both? okay, we'll do one at a time. okay.

>> slides, please. good afternoon, president caen, commissioners. howard fung, senior project manager, southeast plant, and acting director of wastewater capital programs. i have two brief reports for you today. the first is the ssip quarterly, followed by the wastewater enterprise quarterly report. the 70 projects in phase one representing $2.79 billion is currently 28.4% complete, with $718 million expended at the close of december. at the quarter ending october, we were at 26.4%. this quarter we were able to progress one more project into close out and complete another. currently, there are 12 projects in construction represented in green, 14 projects in design, which is still the largest piece of the pie in blue.

i'll give highlights of a few projects in the upcoming slides. as a reminder, head works is where all the sewage flows into southeast plant, and, arguably, the most complex project in the ssip. the project is broken into four scopes of work, as shown. scope one, site preparation is currently in construction. the photo shows some of that progress. scope 2a, upgrades, and tp was issued in december. majority of the work packages have now been bid out and awarded. scope 2b and c, the influence pump station, completed 35% design during the quarter and are working towards 65%. we are seeing some cost estimates trending higher as the design progresses. scope 3, main head works, we completed 100% design during the quarter. the first series of construction work packages were released out

to bid in january, and ntp is expected by next month. similarly, we are seeing sms trending higher. we will know more when we actually receive the bids from the first series of work packages. the biosolids team is working to wrap up design and start construction later this year. the project is showing a delay in construction start due to recent field investigations that have uncovered groundwater, watering issues, utility conflicts, and related challenging site conditions. additional time is needed to evaluate and develop strategies with the cmtc contractor and to address these challenges prior to starting construction. as well as to develop details, cost estimates for these strategies and solutions. these are foreseen conditions will likely result in the extending -- in extending the construction completion by one

year. however, the project team is continuing to look at ways to recover and will be providing future updates. on the dry weather pump station project, the existing pump station will be replaced with a new pump station to accommodate the anticipated mission bay flows, including flows from the new chase center stadium. the scope includes demolishing the existing, building a new pump station meeting current building and seismic codes, making utility upgrades, upsizing the existing dry weather force main and various other site improvements. i will mention later, but this is one of the projects that is showing a budget variance. the baker beach screen street project is the second to the last gi storm water management projects to go into construction. this project will help manage storm water and combine sewage

discharges in the area around baker beach. this project has two areas of focus, along el camino del mar between 32nd and 34th avenue, along seacliff avenue between 25th and 26th avenue, and in addition to the terraced rain gardens at the baker beach on tgnra property. we have applied for and been successfully awarded a storm water grant from the state water board in the amount of $3.7 million. this item was approved at our last commission meeting, and later today we will have a project related mou with rec and park for your approval. this timeline shows how some of the other major phase i projects are progressing. the red line shows us where we are as of quarter ending december. excuse me. on this slide i just want to point out there are several other projects at southeast

plant. gaffe handling, 521, 522 upgrade projects are already well into construction. the seismic reliability improvements in southeast plant power feed projects are scheduled to start construction later this year. west side pump station reliability improvements is one of the projects where the bids came back significantly above our construction budget, so we're looking at options to rescope and bring that cost back on track. and, lastly, the central bay side system improvement project is at 35%, while we're working to finalize the property procurement with caltrans. this slide shows our cumulative outreach through december and a few photos for recent events. our outreach efforts at the conclude of 2018 were focused at tabling at various holiday events like the annual health and harvest fair and at the

winter wonderland. we used these opportunities to engage and educate stakeholders by offering prizes when they spend time with us learning about their sewer system and inquiring about our upcoming projects. this concludes my ssip quarterly presentation. i'd like to go over the significant variances, the red dots, from the ssip quarterly report, followed by the wastewater enterprise quarterly report. >> president caen: before you do that, could you repeat what you said about why we have added another year to the biosolid project? as i recall, quite some time ago we already added another year, so now we've added two years. >> we have a delayed construction start of one year, and we anticipate that impact