tv [untitled] November 13, 2012 8:30pm-9:00pm PST
was very positive, and we are confident that we will be able to secure all required approval for the new disposal sites by early 2013. so here's a summary of the scheduling cost impacts that we are forecasting at this time. in mid-october, the contractor provided us with three -- schedule optioned and we evaluated those options with objective of finding a good balance between schedule cost and risk. and we selected a schedule option that will add 25 months to the project schedule. and the full rational for that decision is included in the memo that is in your packet today. you can also see a general breakdown of the cost increase. note that the hard cost here is based on a rough order magnitude
estimate provided by our cmt. i think what's very important to realize too is that these numbers of course are very big. but to only -- well to 15% of these additional costs are actual premium cost that could have been avoided would we have found fees fishures during the design phase. so if we knew about it, 85% of those costs would have actually been in our project budget originally. >> why didn't we know about it? what didn't we do that should have been done? >> i'm not sure there was anything we could have done to actually find it. what happens in these -- during preconstruction is you have a site with -- that is very difficult to access, and what you do is you drill borings. we drilled i think 18,000 feet worth of borings.
so we did very extensive. we brought in a helicopter to lay platforms and rigs to do work on a very steep slope. and the difference is what you do construction, the entire face of the slope is exposed and you have -- the total puzzle is exposed to you as opposed to these fine points in various location. so it's not unusual for dam projects to actually encounter changes like those, i've actually been reading a lot about it recently, because of the difficulty in being able to identify all of these fissures. keep in mind we're in a very active seismic area as well, which makes things even harder. >> -- >> exactly. again your memory includes a full section of what was done and why it was not actually found so i feel we were very thorough in explanation and i would be happy to answer more questions on that.
now, we also have a number of remaining risks. and we will put back, like i said, some money in the project as contingency, and that level of contingency will be proportionate to the risks that remain. actually six of the -- wsip risks are a part of that project. and i've also asked our program cm consultant to validate all the risks that we currently have in our risk register for this project to make sure that we have a strong basis for the level of contingency we'll add back into the project. only a couple more slides. wanted to tell you what are the next steps ahead of us. the contractor is committed to giving us a proposal, a formal cost proposal for the changes i've discussed today by the end of this month. i assume that it will take at least a month to negotiate these changes with the contractor that
will bring us in january. now ab1823 requires that we give 30 days notice to all wholesale customers before this commission considers schedule changes to the program so we have to issue that notice some time in january, and we will seek your approval of those changes to the project schedule and budget some time in early february. and shortly thereafter, we will submit a report to the state, as required by 1823. and i wanted to end on a positive note by letting you know that wsip received 2012 exceptional performance award in safety by the american public works association. we're very proud of our safety staff. we actually have a safety incidence level that are less than half the industry averages as reported by the bureau of labor statistics.
so that concludes my presentation. i'd be happy to answer any more questions. >> i have a question. if and when we ever enlarge the dam, will any of these problems crop up again? >> no. because at this point, you know, the dam is being built with this enlarged foundation. so once that foundation is in place, on competent solid ground, you know, you will have design -- redesigned a slope raising at that point would not be an issue. >> president torres: any other questions? we will be back to this as things evolve. ancient times to present times. we're onto the consent calendar or you have something else? i didn't see you on the agenda.
public comment. >> thank you. pardon me? >> president torres: please. >> art jensen with -- i appreciated julie's report. we've been following this closely, working with her closely. and i also appreciate the commission's questions. right on questions about the cost, what should we have known ahead of time if anything could be done, julie's preparation of the cost that would have incurred even if you had known and commissioner caen your question about if you raised the dam increased the size would those be a problem in the future those are terrific questions to have the commission asked. we are concerned about the cost but from all the reports that i've gotten today it seems that your staff has done and is doing exactly the right things. so we have great confidence in the work that's being done. the one other thing we would note is we would -- i was pleased to hear her say that the program infrastructure will be suspended on schedule, with the adopted completion date. and this project would go on, on
its own. we would hope that all the other commitments i aside from the completion of this project would be done on the current schedule and the extension of this project wouldn't lead to the extension of all the activity. that was a positive thing to observe and i wanted to note that for the record. >> president torres: thank you very much. any other comments? that concludes your report. >> yes, sir. >> president torres: thank you very much, mr. manager. we'll move the consent calendar. any items the members wish to remove from the consent calendar? you want to read the the first item and proceed to a vote. you want to read the first item and we'll proceed to a vote. >> secretary hood: consent calendar, items 8(a) through i constitute the consent calendar are considered to be reteen by the san francisco public utilities commission and will be acted on by a single vote of the commission. there will be no separate vote unless the commission or public requests in which event the matter will be removed from the calendar and considered as
separate. >> president torres: the items are before us. is there a motion? >> so moved pngetsd seconded by commissioner caen. those in favor? >> aye. >> president torres: motion carries. we're off to regular business. item 9 has been removed. we move to item 10. >> secretary hood: item 10 the funding -- wastewater bond of up to 250 million to refinance wastewater revenue bonds and issuance of up to 420 million under proposition a to fund wastewater capital projects. >> it's pretty routine but it's really good news, and in particular for the presentation -- >> president torres: you're giving us such good news all the time. >> i don't always so it's refreshing to get it triple, a triple play. so the items before you are your usual, your usual binder full of information. but i want to highlight in
particular for you, as well as you are already know for the ratepayers, why this really matters. you've had some difficult news today as well that ms. labonte just walked through but this one in particular i wanted to call out to our deputy cfo as well as our debt manager. every day we're looking at the debt market and brond market, trying to figure out how to safe rearps money. we've been monitoring refinancing and fundings and we have an ability now with the continued -- easing by the federal reserve bank and others to be able to refund a lot of water water debt. in particular what is before you today is up to $250 million of refundings. this would save in and is projected to save about 43 million for the ratepayers. >> president torres: 43 million in savings to the ratepayers. make sure we articulate that. >> and help put that in perspective. it's almost half of what julie just talked about.
so we are doing good things. so i want to just call out that our plan sale is in january. the first half will be for refunding, the second half for the new money for the projects you already approved over the last two and a half years. >> president torres: do we need a motion on this? >> you do need a motion on this, yes. >> so moved. all good news. >> president torres: seconded by commissioner caen. all in favor signify by saying aye. >> ayes. >> president torres: motion carries. well done, todd. >> a pleasure. >> president torres: keep up the good work. do you want to comment on this item? no. item no. 11. >> secretary hood: item 11 authorize general manager to execute a grant agreement with the library training retraining fund from -- california estimated cost of service is 25000,000 for year one and6/%8 7 170,000 per year for years two
and three. >> many of you are aware the fact i'm with the laborers union. i serve as executive director of the laborers community training foundation. that's a local entity connected directly to the local union 261 here in san francisco. the entity that we're referring to now is separate and apart from not just the local union but the foundation that many of you are aware that i participate in. this is a training center. it's a labor management cooperative. there are trustees. i'm not a trustee but it's important for us to make sure there is complete transparency, with respect to my relationship with the entity, they're all my brothers, we're all a family, but if there's any questions i'll be happy to answer those as well. >> president torres: so you're allowed to vote on this, is what you're saying. is there a motion? i think we're pretty well aware of the program. do we need comments? i don't think so. all right. have commissioner caen move and
i'll second. >> commissioner moller caen: i will move the motion. >> president torres: those in favor say aye. >> ayes. >> president torres: item 12. is there public comment on the last item? i'm sorry. mr. decosta. we work so quickly for you. >> commissioners, what you have just done is you have maybe for the first time in the history of the san francisco public utilities commission, linked with the water system improvement project, done a holistic thing this training
will have our disadvantaged youth, hopefully such type of trainingings can be included, be part -- be made a part of every project labor agreement. for the last two and a half years, i've been working on this concept, and have delivered ever aspect of it so that the san francisco public utilities commission, following the project labor agreement, can do something that's right. to basically this project will allow disadvantaged youth to take part in planting native plants and nursery, train them in repairn projects, and hopefully -- this is not included in this -- hopefully, if now you know, we've got $250
million, if you put a little bit aside, we can participate sustainably in maintaining our trees for the county, for the city and county of san francisco, trees play an important role. and we can call upon our brothers and sisters from the labors union and other unions to do the right thing. so, commissioners, before ed harrington left, i requested him to leave a legacy, and i explained to him about this project. and he worked very hard, with our brother, harlan kelly, and the laborers union. i personally sat down with ramone from the laborers union,
and he blasted, you know, because they do have a training center. >> president torres: right. >> and that's the way we got to do. we got to offer opportunities to the constituents of san francisco, and others too. but we need to offer some holistic opportunities. so today, history has been made on an important level. thank you very much. >> president torres: thank you for your contribution to that. item no. 12. >> secretary hood: item 12, approve the terms and conditions and authorize the general manager to execute a three year revocable permit with coast side county water district for new use fee. >> president torres: mr. richards. >> steve ritchie, general manager for water. this is a three year revocable permit to provide for the emergency replacement of a pipeline that delivers water from our -- reservoir to the coast side county water district. >> president torres: i see no opposition, right? any public comments on item
no. 12? chair will entertain a motion. >> so moved. >> president torres: seconded by commissioner caen. all in favor signify by saying aye. >> ayes. >> president torres: motion carries. thank you, mr. ritchie. well done. item no. 13. >> secretary hood: item 13, approve terms and conditions and authorize the general manager to execute a 20 year lease with -- hotel associates for 4,360 a month represent subject to board of supervisors approval pursuant to charter section 9.118. >> president torres: is there any public comment on this item? did you want to quickly address it? >> i'm just go to ask if you have any questions. >> president torres: not on my end. chair will entertain a motion to approve. >> so moved. >> second comngeddle approved by commissioner caen. >> ayes. >> >> president torres: motion carries. item 14. >> secretary hood: item 14 approve modification willing to the agreement between the state of california, department of parks and recreation and city
and county of san francisco regarding the implementation of the mitchell ravine long-term stabilization plan increasing the agreement by 112,000 to 253. >> president torres: this is the san francisco department of park and rec, correct? >> no. >> president torres: i feel better. any public comments? all right. i think we pretty well know what the agreement is. any comments from the commissioners? motion is in order. >> so moved. >> president torres: seconded by commissioner caen. all those in favor signify by saying aye. >> ayes. >> president torres: motion carries to approve modification no. 1. item no. 15, agreement cs208. >> approve agreement amendment no. 1 to agreement cs208 authorize general manager to execute the amendment increasing the agreement by 100,100
>> president torres: not to exceed 150,000. >> correct. >> president torres: chair will entertain a motion. >> so moved. >> second. >> president torres: seconded by commissioner courtney moved by commissioner caen. those in favor signify by saying aye. >> ayes. >> secretary hood: 16 public hearing discussion to approve a 2012 updated cca implementation plan and statement and authorize general manager to file the updated plan with the california public utilities commission for certification. >> thank you. barbara hale assistant general manager for power. this is the item i mentioned -- >> president torres: that you articulated earlier at the beginning of the hearing. >> yes. if you have questions or would like more detail i'm happy to give you that now. >> president torres: this is continues november 30th with both supervisor and lafco. the mayor's office obvious is
involved. chair will entertain a motion. >> thank you. >> so moved pngetsd moved by commissioner courtney. >> secretary hood: is there a -- >> president torres: commissioner caen has a question. >> commissioner moller caen: looking for the resolution. >> thank you. >> commissioner moller caen: i second the motion. >> president torres: seconds the motion. all those in favor signify by saying aye. >> ayes. >> president torres: the motion carries 'til the next day. >> secretary hood: item 17 adopt procurement plan to allowst puc corn renewable portfolio standards. >> barbara hale, this is the item we had a workshop on at your last meeting so this allows you then to authorize us to go forward with this procurement plan and be in compliance with the state's renewable portfolio standards. >> president torres: as articulated earlier by you. >> yes. october 23 we had a workshop. >> president torres: are you going to have another clean power stakeholders meeting that exceeds an hour?
>> yes. >> president torres: all right. >> thank you, president torres, if i may. >> president torres: yes. >> i would be interested in seeing, in the record, a sign-in sheet so that we can see for ourselves in advance of these meetings, who parptd. also a list of those who were invited. it was a big concern. not that anything took place that wasn't appropriate but i would like to see more information related to who's invited to engage and who actually decided to engage. >> happy to provide the invite list. some participants participate by telephone so sign-in may need to be by proxy but we'll provide that to you. >> if we know who participated by telephone, telegraph or in person because we get questions where does the meeting take place, did anybody show up, it wasn't a good meeting, there
wasn't enough time. that we we make sure ever bit of information is available. >> i will provide that. >> president torres: motion? we passed this? moved by commissioner courtney, seconded by commissioner caen. those in favor say aye. >> ayes. >> president torres: motion carries. i need a motion now to go -- sngetsd we need public comment. >> president torres: public comment. >> we don't need to rescind. >> president torres: i don't intend to. >> eric burke representing san francisco green party and grassroots organization of our city. directly to commissioner courtney's point, usually, from the advocates who usually in those meetings there's local power staffst puc staff, lafco staff and from the advocate there's almost always myself with the groups i represent, someone representing the local clean energy alliance, which is a major -- they've been a major
player in moving this legislation forward. usually it's alan weintraub and/or june bra sheers. there's usually a staff or volunteer for sierra club. that's pretty consistent. so those are people that have been showing up regularly. it's kind of become an insular group and we might want to reach out to more people, especially labor, that kind of thing. so that's just to give you a sense of that's how those meetings go. i would agree, we need to try to have them -- even though this might be a strain on staff we need to have them go longer because there's so much technical stuff to plow through that we really need to get a handle on this, especially now that we're diverging a little on our perspectives. i just wanted to address real quick, one other very important point of divergence and that is from the beginning of how cca was envisioned not just in california but even at the beginning in massachusetts and ohio, but especially in california is that cca was
always intended to be a program in which both residential customers and the commercial customers would be rolled into the program, just like the residential customers are required to be, with an opt out provision. so that you can get enough people to feel like it's kind of like when you're an incumbent, it's easier to get reelected. >> not always. >> usually though. it's kind of like that, making an incumbent for the people you put in it as long as the rates don't go up and definitely local power's plan intent not to raise rates on local customers at all, that as long as those don't go up you've got an incumbent program that people would be more willing to stand. that's important in the economies of scale and fighting the inevitable battle with the opponent, the competitor. the other thing i didn't get to talk in the previous item that
was alarming to us right now what staff is telling us is that their intention is to always have the commercial customers be an opt in. and in mirren they did not do it that way. they included commercial customers recently in their full opt out process. in san francisco most of the energy is used by commercial customers. we will not be able to achieve that big beautiful build-out that we're planning without those commercial customers being put into an opt out so enough of them stay in to get the bonding ability and the economies of scale to make sure that we can do the full build out and hire the thousands of people, et cetera. thanks. >> you said that marin opt in? >> no, marin, they did their initial thing a couple of years ago. they just completed their enrollment and enrolled all of their customers a few months ago, and that included commercial customers who were then able to opt out if they wanted to. but they enrolled everybody.
and i know that -- yes. >> president torres: okay. have any further comments? no? motion to assert city attorney privilege as requested. >> so moved. >> second. >> president torres: we're going to move all those in favor signify by saying aye. >> ayes. >> president torres: motion carries. let's move into closed session. >.any public comment before we o into closed session? >> i think she has to read. >> the clerk: closed session item 20, anticipated litigation as defendant, item 21, anticipated litigation as plaintiff. >> president torres: no public comments on this? all right. are you ready? i know we have to wait. i want to make sure you're ready
pngetsd anything else we need? we're back on? all right. first of all, the meeting for tuesday, november 27, has been -- according to the comments here, canceled, and i think we have a report from the closed session is that correct? you give that report or do i? >> i believe you just noticed that there was no action. >> president torres: there was no action taken during the closed session. any other comments? all right. this meeting is adjourned. the 23.
public investment has transformed our neighborhood. >> the playground is unique in that it serves a number of age groups, unlike many of the other properties, it serves small children with the children's play grounds and clubhouses that has basketball courts, it has an outdoor soccer field and so there were a lot of people that came to the table that had their wish list and we did our best to make sure that we kind of divided up spaces and made sure that we kept the old features of the playground but we were able to enhance all of those features.
>> the playground and the soccer field and the tennis fields and it is such a key part of this neighborhood. >> we want kids to be here. we want families to be here and we want people to have athletic opportunities. >> we are given a real responsibility to insure that the public's money is used appropriately and that something really special comes of these projects. we generally have about an opportunity every 50 years to redo these spaces. and it is really, really rewarding to see children and families benefit, you know, from the change of culture, at each one of these properties >> and as a result of, what you see behind us, more kids are playing on our soccer fields than ever before. we have more girls playing sports than we have ever had before. [ applause ] fp >> and we are sending a strong message that san francisco families are welcome and we want you to stay.