concern, we have agreed to cover the cost as part of this project and fully cover the relocation costs xinhua the sfpuc -- should the sfpuc require another project relocation. the permit is agreeable to the sfpuc and sanitary district. both agencies are ready to start work. thank you for your time and i will gladly answer any questions. supervisor chu: this item does not have a budget analyst report, but this is to allow us to continue to begin the work of retrofitting or creating safer improvements to pipelines three and four. >> correct. supervisor chu: the puc is offering 76% of those costs with the school district paying the remaining 24%. is this already anticipated in the budget? >> correct, the union sanitary district. supervisor chu: ok. thank you. why don't we open this item up for public comment? are there members of the public that wish to speak on item number two? seeing none, public comment is closed. supervisor avalos: motion to move forward with recommendations. supervisor chu: that has been seconded and we will do it without objection. >> item three. hearing to include financi