>> on the presentation of the planning commission, i had hoped that we would be able to adopt a policy about extreme shortages and how the rationing would be under those circumstances. we hoped to have that at the last meeting. will we have an opportunity to adopt the policy before the presentation is made to the planning commission? >> i don't have a firm answer to that. right now there is talk towards the end of august and so i'm not sure that is firmed up yet but if i can come back with a date to the secretary, then she can pass that on. >> if the commission has action that is more general than just the handful, it provides a policy framework that supports those assessments. i think that would be as just a strong position as it goes to

the planning commission. >> perhaps we should orchestrate that's what happens before we go to the planning commission. that is my thought. >> that would be great. >> that would be great. if we could see some draft policy framework statements that is intended to go before planning, that would be great. >> thank you. >> any public comment on this item? i have a card for you. >> commissioners, 300 years ago, the state team that was mentioned this list for the california natural resources agency, the california environmental protection agency, the state water board, the department of water resources, the department of fish and wildlife, none of them existed 300 years ago. the tribes, the native americans have been there for 13,000 years

this is a very convoluted subject. i'm going to stick to the river. we abuse that river for a long time. now we are pretending to do something, but they are doing nothing, and the way we do nothing is by saying, you know, we don't have the authority, the state has the authority. this commission has been so backward in not having some firm policies that one the planning department asked you all for something, you didn't have it ready. so then you rush at the 11th hour. i am watching the deliberation and most of you are not doing it so what is happening here? let me stick to the river. in the year 2019, we are

flushing our toilets with clean drinking water. in the year 2019, we don't have the decency to invite to the native american tribes who preserve them and protect this area for a long, long time for thousands of years. you don't have the decency to invite them to the table. you need to have the certification, you need to have this knowledge, you have to have access to data, you have to have access to computers, you have no spirituality. if you had no spirituality, you will fall flat on your face, like it is happening right now. now, finally, you have to make up your mind that all the skyscrapers that are being built , they have to pay more for clean drinking water. this millennium building, the millions and millions of gallons

that were sucked from the watershed and put into our sewer system and not brought to our attention, we have to have a hearing. we need to have a hearing, a very holistic hearing. who owns this land? kansas city -- the city doesn't have a single document to say that the tribes were handed one square inch to them. it was stolen. thank you very much. >> thank you. any other public comment on this item? general manager, next item, please. >> the next item is clean power s.f.'s a.g.m., barbara hill.

>> i apologize for the delay. i am the assistant general manager for power. today, i'm here to present our first clean power s.f. quarterly update. a report on customer enrolment and service status. efforts to secure long-term power commitments from renewable resources, and job impacts of clean power s.f.

first, our enrolment and service to customers. clean power s.f. continues to serve customers successfully, meeting our customer needs and our regulatory requirements. we conducted our last nature auto enrolment process this past april, so it is a good time for us to recap our overall program enrolment. we also want to share with you what we heard from the customers to opt out and why they chose topped out. our program popped out percentage over the life of the program, from its may 2016 start , is three-point for -- is three-point four%. we experience in 96% retention rate. that is 6,300 accounts electing to receive 100% renewable like electricity from us. at previous meetings, you've asked us to bribe information on

the reasons customers opt out the clean power s.f. program. we had approximately 280,000 customer accounts enrolled during the april enrolment period. about 10,000 of those folks opted out. customers that choose to opt out of the program are asked why. the primary answer it if -- primary answers given or rate or customer concerns, dislike with being automatically enrolled, and declined to answer. we are required by state law to automatically enrolled customers so there's really, you know, not much we can do about addressing that concern, and of course, we respect customers' choices to decline to answer why they opted out. the most frequently cited reason at 30 6% of customers who opted out is rate or cost concern. they pay less then bundled customers. when electricity cost is a

customer concern, clean power s.f. should be the preferred choice. we are discussing with our communications folks how to ensure that our outreach improves customer's trust that when we say we are competitively priced, we aren't steering them wrong. we have some work to do their. the second item i want to report to you today is with respect to our efforts to secure long-term power supply commitments. yesterday we issued a new renewable energy solicitation inviting renewable energy to clean power s.f. and to customers from new or operating renewable energy resources located in northern california with a preference for energy and resources located in the nine bay area counties. that is what we have traditionally characterized as our local resource area.

we are inviting bids with a minimum annual energy deliveries of 50,000-megawatt hours a year. that is -- that would equate to about the annual energy from a 20-megawatt solar project, for example, and a maximum of 600,000-megawatt hours per year, which equates to about a 200- megawatt solar project. we are inviting offers with and without battery storage. for proposals coming from newman noble energy resources, we are requiring prevailing wage with a preference for projects that commit to project labor agreements. our initial delivery date ranges from january 2021 to december 2023, with terms of up to 25 years. we are including an option to include community benefits in these bid packages. we're expecting to receive bid submittals on august 28th. we estimate that power purchase

negotiations and contract approvals will occur in the october to december time frame. we will be reporting to you more on that as it develops at the next quarterly report. that brings me to job impacts. power purchase agreements like i just said we are hoping to make under this new solicitation really induce construction. since we launched clean power s.f., we have now entered into three long-term power purchase agreements to buy renewable power from plants to be constructed in california. those plants include a 100- megawatt project which just began commercial operation. the succeeding megawatt solar project which will commence operation in september of 2020, in the 47-megawatt of voyager four wind project which is slated to become commercially operational in december of 2020. in total, these projects are

representing about 209 megawatts of new renewable energy capacity in california. it will create about 750 construction jobs. as i mentioned, the san pablo raceway project just became operational, completing construction in july. i have some slides that i would like to show you from a trip the members of our staff, together with the developers, had in june , together with the construction team. there was a visit to lancaster, california, so that we could see the project -- the progress on the plant. let me queue those up and ask the t.v. folks to show that. robin, who is the p.u.c.'s head photographer, went along and took some great photos of the projects and the workers installing solar panels.

in total, 350 workers built the project over a six to seven month period. construction jobs are an important part of the clean power s.f. job story, his or the desk jobs created by the program about 20 staff members have been added to the p.u.c. to support the implementation and operation of the clean power s.f. program. this includes new stuff and power enterprise operating groups, as well as p.u.c. bureaus including accounting, customer service, external affairs, and human resources. we anticipate bringing on an additional nine positions before the year is over, about 27 in total this fiscal year. the upcoming budget year, we will be focused on converting temporary positions, established to support the launch and growth of clean power s.f. program, and to permit -- permanent civil services positions. those are clean power careers. with that, i'm happy to take any

questions you might have. thank you. >> commissioners? >> i have a couple of questions. i'm still a bit curious about the people who are opting out. >> yes. >> it is interesting that you characterize it -- maybe it is true that it might be a trust issue, because what first came to my mind is possibly they just don't know that it is cheaper to enrolled with clean power s.f. and i think they have implications for communication strategies. >> when a customer is talking to a live customer service representative about their interest in opting out, if they say that they are worried about the price, that is reviewed with them, the fact that we are less expensive. that is why i am talking with the clean power s.f. staff and the communications folks. we came to a conclusion that maybe what we have here is more of a trust issue.

and i would also say we are very careful -- we don't want to mislead customers. what we characterize for them is the fact that our rates are competitive. we don't typically say -- we can't promise them that our rates will always be whatever% they are cheaper today forever when a customer is making their decision. we emphasize that we lead with affordability and competitive prices is what they will receive >> i just wanted to put it in perspective. out of 100% of everyone we opted in, 90 7% are -- out of 3%, you say 34% came up with affordability --

>> thirty-six%. >> i just want to put it in perspective. >> yes, we are working to be the best. >> i just think it is a communications opportunity, shall we say and maybe it is a two prong approach, one is a trust issue and the other one is to remind them that it is a more affordable project. >> yes. i'm happy to say that often. >> just -- you get additional points so if you are going to create jobs, and you are going to build a plant? >> we have a preference, but we are not restricting it to newly constructed plans.

>> it will not be renewal constructed either. >> correct. we want to make sure that we have a mix in our overall portfolio. we know that we need initial deliveries as early as january of 2021. we don't know what the overall capacity of new projects being constructed are and whether, you know, how many of those will be ready to deliver on january of 2021. so we need to be open to both projects that we are -- that are constructed and projects that are getting constructed. and frankly, some of the projects that we have come to -- contracted with overtime, you know, they may have been fairly newly constructed, but are coming off their first set of contracts and are looking to sell. we don't want to strand an existing, you know, performing resource, either, so these are the considerations as we go

through the process. >> i think that, you know, what i have been hearing is there could potentially be, and is even a supply issue that the state is going to be coming up against as it tries to meet and exceed its renewable goals. it would be interesting to continue to get feedback reporting from you on how many of these agreements are new construction, because that has an additional benefit of a job, or whether -- and how that will continue to help us meet supply and the state meet its goals, as well. >> yes. i am happy to keep reporting on that. >> the last question i have is around the job spee his. he said 750 construction jobs. once those are constructed, is it a new workforce that then comes in to maintain and operate , or are those 750 jobs go away? >> most of those jobs will just be temporary construction jobs. there will be a workforce that manages the maintenance and

ongoing operations. they are not necessarily the same. >> right. it probably wouldn't be the same numbers, it probably -- it wouldn't be 750. >> it wouldn't be anywhere near 750 to continue to operate and maintain. >> it be great at some point have a big picture of clean power s.f. even in a ten year period, or maybe it is after you have awarded these contracts, be able to say that over the next ten years, we will be seeing, you know, 750 construction jobs, you know, 100 maintenance jobs, ten jobs in-house, just to kind of have that is a big dashboard for us i think would be helpful. >> we can pull together on that. >> great. >> to the chair, if i can make a couple comments, every industry that people work at have different conditions. whether it is firefighter, janitor, bricklayer, or what have you, and i come from the construction industry. i never worked on the same job for more than a year.

that is just the way it goes. i might work on the dam for six months, and then i will go and work on some hotel in downtown san francisco. that is where the construction jobs are. there is maintenance, there is no doubt that there is maintenance stuff that happens. the sitting county of san francisco has plumbers and electricians who work at munimobile and the p.u.c., and what have you, but that -- it is not like, somebody was promised a job, 750 of them to do something here in town, and then they think that is your career decision. that is just not the way it works in construction. people actually do work many jobs. that is just the major -- that is just the nature of construction. i would like to know how that works because people do have misconceptions about how, oh, boy, i got a job at, mother, and

i will work there with the rest of my life. no, that is not the way it works you will go many places. i just wanted to put that in the record as a difference the difference between a permanent job versus the vagabond nature of the construction industry. >> thank you. any other comments? any public comment on this? >> thank you. >> this situation of clean power should be clarified once and for all. at one of my offices, supposedly -- [indiscernible] who do i pay? if i have problems, who do i

call? if i have to upgrade electricity and bring higher power from outside to inside, paying thousands of dollars, who do i go to? it is b.s. you know, about having solar farms and all. we, the people, back in 1999, we bagged sfpuc -- we bagged sfpuc. the only person, two people who agreed with us or mr. edwards and he passed away. commissioner richard straw. two decent human beings.

sfpuc, and all this bull should that you hear has perturbed us a lot. from the sierra club, they go to , and you know why? we do not have a hearing. i can ask okay, who do we pay? so what is your role? instead of clean s.f. power, blah blah blah, what is this? if i ask you commissioners, i want critical data on the so-called s.f. clean power, and they want empirical data on the stats and where we are getting it from. and if you find out that 40% is dirty, why are you calling it clean? this is b.s.

this is like feel that you put in your car, and then you add the mickey mouse comedy, and then you watch that, anything everything is okay, everything is not okay. again, the state is now passing legislation that they are going to have control, just like water and electricity. we, the people, need to have information about this. we, the people pay the salaries of all these people who make over $250,000 plus benefits. we, the people count. >> thank you. any other public comment on this item? hearing none, next item, general manager? >> charles pearl to give an update on the quarterly update and performance review report. >> good afternoon. i'm the deputy chief financial officer. this is our quarterly visit to review the audit and performance

review report that gives you an overview of the various activities that are going on in the agency is a relates to oversight. if i could have the slides, please? here is a high level view of the prior year. this update is for last fiscal year which ended june 30th for fiscal 19. as you can see, we had 42 audits that were on the table. we completed 22 of them and we have another 15 that are currently in progress and another five that her upcoming. and a word about those, those will be wrapped up early in the current fiscal year 20. so that's very, very typical for how these audits work. and just a word on the number, 42 is a fairly standard amount of audit work that happens at the sfpuc throughout the year.

the last quarter, that would be the cue four for fiscal 19, we had seven audits that were started as noted here, our annul physical inventory account which is standard look at our warehousing to make sure that the physical numbers of things match with what our control and audit documents say, we do that invents of our final -- financial statement work. [please stand by]

then we looked at community benefit benefits, overall dashboard and evaluation framework, healthy and safety performance assessment, then royalties lease audit which i'll go into in a little more detail. the links to all these audits are noted on the agenda and the website if you want to look at any more of these details. in terms of a little more detail on one of these audits, we had a review of a quarry lease and we are a big agency and one of the things that we do is lease land

and as a part of that lease we take a royalty and we want to make sure through these audits that we are being paid for the appropriate amount as included in the lease. as noted here, the results of the lease confirmed the amount of revenue, a little over $55 million, which is a significant amount of money, from the period of january 1 through june 30 of 2018. the audit actually told us that we were overpaid, and that was a function of just looking at what the details of the lease were, what the payments that were made, and there was a reconciliation to make sure those two things were in alignment and there was an overpayment. one of the audit findings or recommendations is that a credit will be provided to the lessor.

so there were six recommendations coming out of this audit and a lot of these will be lessons learned for us as we look at all of our leases to make sure that we're doing right not only for ourselves but also for the lessor. with that, i just wanted to share with you the current year pork plan. we have about $1.3 million budgeted for audit work in the current year. that will include about 15 projects. as i showed you at the initial slide, some of the work that wasn't able to be completed last year will be wrapped up and included in those 15 projects that will get underway or wrapped up. some of the audits that are going to be getting underway is an external affairs divisional audit focused on our grant monitoring, including our oversight of our policies and

procedures related to that. also the revenue bond oversight committee will have an audit that will get underway and our city service auditor will be involved with that. we have continuing projects related to our human resources department and in particular helping improve our recruitment efforts and that's through their lean process training, which is helping our human resources folks improve how we do our recruitment. lastly, we are looking at an agency-wide community impact dashboard which already exists but we are going to be incorporating the infrastructure into that dashboard for the public to see. in terms of the current year, the audits that are underway now, we have an i.t. network security confidential audit that

looking at our i.t. systems to make sure that those are safe and secure. we also have our standing financial audits, our wholesale revenue audit, which is the audit associated with allocating costs to our wholesale water customers within the water enterprise to make sure that we're sharing costs according to our water supply agreement between retail and whole wholesale customers adequately. the annual physical inventory count i mentioned earlier. our financial statements, as i noted earlier, are getting underway and will wrap up in october. then upcoming, what comes out towards the end of the year in our second quarter will be the comprehensive annual financial report and our popular annual financial report, which will be snapshots of last fiscal year through the financial lens. >> so, madam chair, could we go back one slide. >> yes. >> so what jobs are you talking

about in terms of lean hiring process and the dashboard stuff? what are you talking about? are you talking about staff at puc or construction? what does that mean? >> so the first one is the lean hiring process. that's actually looking at how we do recruitment. so we actually have controllers -- >> recruitment for what? >> personnel. so how we go about recruiting staff. what are the various steps with going through the posting, the announcement, the actual interview process, all of these things we have identified ways to improve that process, to speed it up. we have noticed a lot of issues around the agency in terms of the time, how long it takes to recruit staff. so this effort is associated with streamlining the process so we can recruit people faster. >> is this through the d.h.r.? >> yes -- well, it's through the

controller's office through their lean training process which is about business improvement. it is advised by the d.h.r. but being runned by the controller's office. >> does it parallel with any other department in the city? >> this particular training is just for the sfpuc training. so folks are coming into the sfpuc and training our h.r. folks and about looking at different ways of recruiting our positions faster as being the goal. >> thank you. just another thing. agency-wide community impact dashboard. can you flesh that out a little bit more. >> sure. the dashboards that exist now are -- currently exist for our external affairs, we report on metrics, we report a lot of workforce development activities to the public. so this also is to include our infrastructure workforce development information on those dashboards.

>> thank you. >> and just to point out, a lot of the information that we gather is from certified payrolls of who's working and stuff like that. so we're trying to make that transparent as well. so we put that on the dashboard. >> you can see the website and click on dashboard somewhere. is that what you're saying? >> yes. it's on our website, right? >> yes, it is. i'm not quite sure where it is. maybe my folks can help me. external affairs, we can forward you the link, but yes. >> if it's there, thank you, director, sir. >> you're welcome. my last slide is just to give you a quick update on once the audit is completed and there is an audit report, typically what happens is there's a number of audit recommendations. and our job isn't done until all of the audit recommendations are concluded. so this summary here provides a

list of the open recommendations. we have two audits that currently remain open. there are 11 recommendations that we are working on closing. i do want to point out, the first one is in a relatively old audit report back from 2015. we are working with the city service auditor to close these recommendations. we don't currently have an agreement with the irrigation districts and we aren't currently selling them powers through these agreements, so it's not possible for us to close these recommendations. so we are working with the city service auditor to close out these recommendations. they are currently in agreement with that proposal. we are just working on the details. a lot of activity in the fourth quarter, as noted on the right of this slide. we closed a number of recommendations related to the wastewater divisional audit. that was a major audit here at the sfpuc. all of those recommendations

have been closed and concluded. we also had a number of recommendations related to an ssip preconstruction practices audit that were also closed. so a lot of work. my team is here that does all of this work. i'm just merely talking with you, but my colleagues here and i want to thank them for organizing 42 audits. >> thank you very much. we appreciate your hard work on this. you want to stand up for a minute? [ applause ]. >> thank you. >> so with that, i'll be happy to answer any other questions. >> commissioners? any public comment? hearing none, next item. >> the next item is water enterprise capital improvement program. dan wade.

>> good afternoon, commissioners. dan wade. director of water capital programs. i'm here today to speak to two topics. first is the water ten-year capital improvement program. this quarterly update covers april 1 through june 30. would you please go to the slides. thank you. so the highlights for this reporting period are that we did begin construction on one major pipeline project, that's the san and andreas pipeline project. we began a shut down of the harry tracy water plant in june

for preventive maintenance. we have o totalled up our mileage for the in-city waterline replacement program. it's 11.2 miles. i think most of you know we have a goal of 15 miles a year. we're still not there yet, but we're not going to reduce that goal. we're going to keep striving for 15 miles. next year we anticipate 13 miles plus, so we hope to get to 15 in the next couple of years. i'll talk more about what's dragging us down in a moment. we did recently put into service one of the major joint projects, which is the irving street project as part of that program. so the san andreas pipeline no. 2 replacement provides a replacement. the lock bar steel sections of this are more than 90 years old.

they're pitted, deteriorated and need replacement approximate this will replace and rehabilitate approximately 6500 linear feet of pipeline in san bruno. the contractors mobilized and began potholing and pipeline fabrication this quarter. the photo shows a portion of the pipeline we're actually slip-lining, that is putting a smaller-diameter pipe. this is at rage roadway crossings where we can't dig up the pipe and put in replacement pipe. but the page pipeline replacement work will begin in the next quarter. now be the inner sunshine streetscape improvements and moving forward project which we also refer to as the irving street project is a joint project between m.t.a. led by public works in which the sfpuc

has participated. the water portion of this project includes 8500 linear feet of 8-inch and 2300 feet of 12-inch ductile pipe. the overall project completion is anticipated tomorrow. i'll double-check with the project manager and make sure that happens. again, this is one of the joint projects. many of our resources, i've mentioned this before, but just as a refresher, many of our resources for this program are tied up with these joint projects. so we're somewhat at the mercy of some of these other agencies in terms of making the progress towards that 15 miles, but we're going to continue striving towards that goal. >> you just blame each other? >> try not to do that, but we work hard together. let's put it that way.

>> i think one of the -- >> they are complex projects. >> i think one of the things that -- you know, because there is an effort and a desire for us to coordinate. so we, you know, at our sewer work as part of their street project. so one of the things we've been thinking about is identified that we allotted the money this year for the project. if it goes a year or like another project three years, we did put money aside for that mileage in this year. it's going to happen, hopefully sooner rather than later, but we're not managing that contract. so we're thinking of a way to just let you know that we've completed this, how much miles we've completed is how much miles we've committed to and providing money in other contracts so that we can do a rolling accounting of all this.

it's just hard to do 15 miles in one year when you participate on contracts that take multiple years. so we're just trying to figure out a better way to report it accurately. >> thank you. >> and, director, through the chair, i just -- you know, i mean, it's music to my ears when i hear so much construction and i see folks digging up stuff and whatever. i know that the general public sometimes gets irritated because they've only got one lane instead of two lanes to go down, but this is infrastructure work. one of the things we care about in this country right now and it's not being paid much attention to, except in se a place like san francisco is infrastructure, whether or not it's m.t.a. or the department of public works or whatever else. we're trying to take care of our town to make sure that it functions in the way that it was brought up to be. inter-departmental strategies are what's going on between water and streets and whatever's

going on. my office is on vaness and been, frankly, a pain in the ass but it's great work that's being done because it's got to be done and that's what we're supposed to care about. >> are you saying then that you're allocating for 15 years. so it just kind of rolls over so the money is there. is that what you're saying? >> no. what we're saying is our goal is to complete 15 miles of sewer replacement each year and we only have certain amount of money. so we may self-perform or have a contract directly that will do like 6 or 7 miles. then we put money as part of the street paving that d.p.w. does, we put money so when they pave the street they can actually do the sewer first. sometimes we joint with the m.t.a. because they want to do tracks and we want to have them replace a sewer because we just

want to go in there once. so a lot of the contracts we don't have control over, but we allocated money. i'm just saying that it goes multiple years. the other thing that i want to point out is it's a little more challenging now, especially when you do combined projects because they take longer because you're not just doing the sewer, you're doing the sidewalk, widening, water and pg&e. the concern is the residents and the commercial. you're blocking their streets and taking their parking. one that was in the paper recently and vaness. with social media next door, we just have to be a little more mindful of how we can minimize impact where we definitely need the infrastructure done. so i think that's something that as a city we're trying to figure out how we can do a good job of not only traffic, but also the businesses and the residents

that you're impacting. >> but do you think that it makes sense -- and it seems that it does -- to do it all at one time. because if you didn't do that you would have to hope it up again. a lot of us are saying: why didn't they do that at the same time? so it has its pros and cons. >> it's challenging. especially where a lot of areas are mixed use. it would be nice if we go in and do 24 hours a day, multiple shifts, and you're in and out. folks need to sleep and businesses need to operate. you can't do it during the night because folks want to sleep and you can't do it during the day because businesses have people coming in. it's hard when you can't go in. if you can go in at 8 and have to leave at 3:00, it's going to tack for ever to do the work. those are the challenges we need

to face and work with the communities to see if you have inconvenience for more hours hopefully the project duration would be shorter. >> is it more efficient? i mean, fiscally are we saving money by doing it this way? is that a plus side? >> i wouldn't say we're saving money doing it this way because there's a lot of complexities that come into play when we do these joint projects. >> so give me -- what is a -- so what is the plus side? >> so the plus side is that we are coordinating the work, we're doing it all at one time. in theory, it should be cheaper because you're sharing a lot of resources like construction management and stuff like that. but also the perception that

you're coordinating is valuable. but on the minus side is that it takes longer because the when we do it separately we go into the sewer and then we go on and we put temporary pavement over it. then you see pg&e coming and cutting up the street, why didn't they do this together? our issue is our thing is in a different location and what's also challenging you have to keep traffic going. they have what they call the green book that identifies how much traffic you have to have a lane open. so you need to have barriers and you need traffic control and that's where it becomes expensive and harder. then you have noise, you can't have noise before this time or after. so it's a lot of restrictions. then all the lyfts and ubers,

it's challenging. >> thank you. >> thank you. just moving on to -- out back in the region, the long-term improvements project has two components. the first one is essentially complete and we're scheduled to move in in september. we did install the first badge of pathogen-free native plants. so that's exciting. then the watershed center contract b of this project is scheduled to advertise this month. we've prequalified three contractors. there's one contractor that's still attempting to prequalify and we do expect to have -- hopefully see all of those contractors bid the project. in terms of dams and reservoirs improvements, there's two active projects. we are continuing with

geotechnical exploration and we are also looking at a task order to assess probable maximum flood and spillway. so we are continuing to assess those facilities as we go forward. i'm sorry? >> what's the geo -- >> geotechnical? >> yeah. >> exploration. >> what are you exploring for? >> we're exploring the soil and the rock in the facilities to evaluate both static and seismic stability of the facilities, both the dam and embankments with the facilities. >> how often will you have to do that? >> this is something you do at the beginning of a project when you build a project. these are old facilities, so we're reevaluating these facilities. so it's something we only do

very occasionally. thank you. lastly, the west side recycled water treatment facility consists of four contracts. this is 2 million gallon per day recycled water. the treatment plant contract is the one that's shown here and the construction of the new treatment facility buildings have advanced to the second floor, slab, and walls. we've conducted a seven-day operational test of the system and demolition of facilities inside building 510 have begun in june. with that i'd be happy to take any questions.

>> are you continuing on? >> dan is also going to give an update on the next section. >> so my second item is the water system improvement program. if you would please go to the slides. you've seen this chart many times before. this is just to emphasize that we are 98% complete with the program. the red in the pie chart represents projects that are totally complete. the green represents projects that are technically still in construction, but that portion of the chart is going to get much smaller in the next several months when we close out the replacement project. >> can i ask a question on that? because we have an item coming up in the consent calendar that i might pull just to understand it a little bit better. does that 310 million include

the project at alameda creek? >> 310 million. >> that's remaining; right? >> yes. it does include that, yes. >> it's not -- the fish project is not in the -- >> excuse me. okay. there's two projects. there's the fish passage at the alameda creek, that's one project. the alameda catchment project is still in the environmental review process. so the 310 million includes that. >> and then where does the fish passage replacement -- >> that's technically still in construction, part of the 1.015 million. >> okay. >> yeah -- billion, i should say. >> and 310 remaining in the pie chart; right? >> 310 million remaining in the pie chart. >> right. thank you. >> yeah.

>> so the replacement project was substantially complete in april. final construction completion did complete in july. i'm reporting on the last slide so they report that. you can see the plaque that was presented at the dedication in may has now been installed. the project administrative close out will continue through the end of this year. and there's eight administrative awards awarded on this project so far. then the fish passage facilities at the alameda diversion dam, which again is a subproject of calaveris is 98% complete. the close out documentation was in the final quarter and the final documentation will happen

in the next quarter. the regional groundwater projects is one that will continue past the calaveras dam. phase 1 construction is 98% complete. there were changes to the chemical treatment. phase 2 which we call contract c is in the planning phase and is about 10% complete. now, you may recall there were some comments from a meeting a couple of months ago. we did have a good meeting with bawsca to discuss meeting the service goals and objectives related to this project, and we are finishing a memorandum as we speak that will be presented to the commission in august that

will present the status of the project. the alameda creek recapture project is the one that is still in the environmental review pha phase. we do anticipate recirculating the draft e.i.r. in october. once that document is published we will reforecast the entire project schedule. we have decided not to reforecast the schedule until we actually have that document published. so it is anticipated that this project will likely go beyond the end of the current program, but again we will not make that reforecast until we get this document on the street. >> would that then make this the last project? >> it will be a close race between this one and the regionalal groundwater storage i

would say. then i would like to inform the commission that we did the city capital planning committee and presented a proposed reallocation of regional budgets that was subsequently approved by the board supervisors. as you way recall the wisup has been managed in six buckets of money. so the appropriations were made by region. now that we've gotten past most of the risk on the program, we had requested the board to allow us to move money from the regions where we no longer have risk into regions we still know there is risk. in particular the san francisco region, which is where the recovery project is located. we've lumped up -- we've basically cleaned up the money from these other buckets and but it in that bucket.

so i just wanted to make the commission aware that we've done that. we're not asking for a formal baseline at this time. we want to get the calaveras project completely closed out, but we do anticipate coming to you next spring for a re-baseline. with that, i'd be happy to take any questions. >> you don't anticipate that re-baseline to be an additional amount. it's just a reappropriation? >> that's correct. so the reappropriation is essentially allowing us to put the money in the buckets where we anticipate the money will need to be spent going into the future. >> any questions, commissioners? any public comment on this item? hearing none, thank you very much. >> that concludes my report. great. thank you very much. >> next item, madam secretary.

>> clerk: other commission business. >> any commission business? hearing none, donna is going to ahead the highlighted consent calendar. i ask that dumb (d) be removed. >> clerk: 8. all matters listed hereunder constitute a consent calendar, are considered to be routine by the san francisco public utilities commission and will be acted upon by a single vote of the commission. there will be no separate discussion of these items unless a member of the commission or the public so requests, in which event the matter will be removed from the calendar and considered as a separate item. we are removing item 8 (d). >> move everything except for (d)? >> i'll second. >> any questions? comments, commissioners? any public comment on the consent calendar? hearing none, all those in favor? aye.

opposed? the consent calendar passes. >> i would like to hear on # 8(d). cathy or dan can present on that. just to better understand the increase of $4 million and the extension of time and why that's happening. that seems like an important project to move forward if possible. >> let me first say the construction is completely done. so what we're doing is we're working out change order requests with the contractor and negotiating those. so we've trended money that we feel is needed to be able to negotiate appropriately with the contractor to close out those contracts. so you may recall over the last several years there have been a number of site conditions on that project. there were some undetected landslides that were on the right bank looking downstream

coming into the fish ladder. so we had to install some soil nails and tie-backs that were in exceedance of what was anticipated. that was a very costly change to the project. so that's one example. there were a number of other examples that added up to this amount. >> and the time extension is just -- >> so the time extension is to get us to where we are today. we do anticipate having the project totally complete and closed out in september. so this is in anticipation of being able to pay all of the contractor contractors what we deem to be appropriate change orders and to close out the contract time. >> okay. so i'm okay with it if there's a motion to approve item 8(d). >> i'll move it.

>> is there a second? any public comment on 8(d)? all those in favor? opposed? 8(d) passes. next item. >> clerk: item 9. adopt 9. adopt the final mitigated negative declaration (fmnd), the mitigation monitoring and reporting program (mmrp), and the findings as required by the california environmental quality act (ceqa) for the montara mountain rainfall prediction and radio replacement project; approve montara mountain rainfall prediction and radio replacement project to install a weather radar and communications tower on montara mountain; adopt the required ceqa findings, fmnd and mmrp; and authorize the general manager to implement the project. this >> this is a sequa action that you're taking today to adopt the final mitigated declaration and mitigation monitoring program as required under ceqa for the montara mountain rainfall prediction and radio replacement project. the real key of this