Convert that wet weather facility into an allweather facility, which would require us to do extensive sewer diversion work and impact the traffic on the road there. As soon as we onboarded a cm gc contractor, we started to get feedback from them and first major input was to remove that underground line which is 78inch and was on the piers to an aboveground 54inch hdp line on the road. That helped us to reduce significant risk associated with the congestion in the plant road and eliminating conflict with the seismic work. The second major collaboration between cm gc and designers was to move the lift station from across from evans out. Initially we were trying to convert it to allweather, but we were going to install a new lift station. One of the major inputs we received from cm gc was to lift the scope, eliminating all the work on evans avenue. Another aspect i want to mention on the red is the seismic and Electrical Work which was originally not part of the project, but since its in the same footprint of the headworks, we adopted those two scopes part of headworks project, to eliminate the conflict of multiple contractors working in the same footprint. So the red aspects outlines the new scope which was developed in collaboration with cm gc and helped to mitigate some of the risk. Next i would like to go where the project budget as it stands today is 418 million. There are two scopes which are in construction. Scope one which is the site prep which is shown on a green box and also scope two a outlining the line on the upper left. Those two scopes are in construction. The green outlined scope is scope 3 which is in a bidding and award phase. And last but not least, scope 2 b. C. Which is the new lift station is in a design phase. The beauty of the cm gc process allows overlapping phases. So somebody in construction, somebody in bidding phase and we are still completing design on some of the Design Elements. So the next slide is to provide you an overview of how major benefits are received through cm gc delivery method and some of the consideration that howard talked about, process and nature of bidding a bid process. This shows if we had delivered the headworks project in traditional designbidbuild method, we would be still in design phase. We would bid singular large package in spring of 2020 or just beginning of 2020, and the project would complete sometime in 2026. The lower chart shows the efficiencies with cm gc where we were able to Start Construction if you see the scope 1 in 2017 with site prep and bruce flint bump station, with anticipated construction finished by 2023, pulling the schedule back by three years, 2023 versus 2026. I also want to highlight on the chart below, the bidding process happens in multiple ways. Its not onetime bidding and you get a surprise. It happens along the way as the packages are developed. Therefore, the final price will not be of a level entity, the last package bid out and we receive the business. For headworks, it will be in the spring of 2020, where the last package will be bid out. So with cm gc delivery method there exists continuous Risk Identification and mitigation of design components. In case of headworks, cm gc during preconstruction phase performed numerous potholing utilities to identify conflicts and read out options and provide feedback to the design teams. The major Design Elements were configured to mitigate risk of construction, as i explained, the underground 78inch under piers was removed and make it temporary aboveground line, as well as relocating a pump station from across the street on the site. So those were the two major reconfiguration of Design Elements to mitigate the risk working in the public right of way. Working on collaboration with planned operation contractor and designer, optimize the sequence of the construction phase, thats how we have now scope 1, 2 a, b, and c. Contract work and timing is also very important. With cm gc delivery method, the scope of work if the scope of work is going to happen three years down the road, cm gc would not advertise on day one. They would progressively bid out the packages. This allows a level of participation as well. So i wanted to discuss a little bit about mitigating risk and also mitigating risk comes with pricing the risk into the cost estimates. As commissioner caen and maxwell observed the site constraint, some of the Cost Increases are associated with Risk Mitigation related to site constraints complexities, and they have been priced accurately by cm gc progressive in their bid and cost estimates. Some risks are not possible to mitigate, such as working around the active plan where the flow still continues to come. We continue to treat 250 million gallons while building a new facility. The other factors, of course cost increase pertain to scope additions that i described earlier where we added scope to be in c to minimize or mitigate major deep excavation on public right of way on evans avenue. This helped reduce or eliminate impact to traffic for the neighborhood and eliminated major utility conflicts. And last but not least the market conditions. When we bid out scope i and ii a, we did experience higher costs associated with steel, concrete, and also trades. So cm gc helps us to accurately price those market factors into the cost estimates. These are some of the major factors that lead to cost impacts on headworks business. Through the chair, i want to interrupt for one second since i have something to do with construction as the commissioner here, it would be nice if i would be invited to some of these meetings when you are doing a tour. Its great that commissioner maxwell and the president , there, but tim paulson and i have a day job. I would like to whether or not i can make it or not, i still want to be apprised so that the sfpuc has been incredib incredibly attentive to the stuff that were doing. I want to point out that they mentioned in previous meetings that they wanted to go out there and tour the site, but im happy to do that. Unfortunately, we have to do two at a time because of the brown act, but we would love to take you out. Im telling you everybody since i have something to do with construction and ive heard him say construction at least 17 times so far, i want to be part of that. Thank you. Slides, please. So as howard mentioned about the process of cost estimating, we do conduct cost estimates at standard intervals as the project design and details advances. Also for the complex and Long Duration infrastructure projects, the duration between planning estimate to a 95 estimate could be three to five years. As various design deliverables are made available, various estimating teams prepare estimates to reflect current market conditions, workforce availability, and updates based on the refined design. Headworks projects started planning phase in march 2013. We just completed our 95 design last year. So its five years planning and design process. At 35 design, so the first estimate that we get is at the end of the planning phase, which is cer, which reflects the 2016 market condition and preliminary design. As the 35 design team started various geotechnical and hazmat investigation and many of the investigations still not baked completely at the 35 . Along with that, if you look at the x axis, we brought cm gc contractor right around 35 , about a month difference after the 35 was delivered. And as previously mentioned, cm gc and design team collaborated to identify and mitigate risk prior to construction and priced that Risk Mitigation cost into the estimates. So in a design build model, which is the common conventional delivery method, this risk would have never been identified or addressed until we are in the middle of construction and potentially leading to contractor down time and change orders and claims, which we want to eliminate by using this method. So the current state of the project we have already started construction scope i and ii a as i mentioned previously. We have awarded 24 packages at around 60 million, of which 15 is committed to lbe contractors. We have 15 packages of scope iii in bid and award phase. And we still have 78 packages to be advertised for scope iii and scope ii b and c. Therefore, many opportunities exist for Contracting Community as well as lb contractors. So as a project manager, i cant wait to see this day where we have a headworks construction complete. The graphics in front of you reflects the rendering of completed headworks facility. It will look beautiful with art on the wall and improved overall esthetics of the facility. Just a few highlights on the highestlooking building is our odor control, which is our commitment to neighbors. As you can see on upper right, the footprint is almost 25 devoted to twostage robust odor control system. So municipal Green Building code chapter 7 defines lead requirement which is Green Building requirements for Municipal Construction projects. Sfpuc was the first Municipal Agency in San Francisco to voluntarily pilot the envision sustainability rating system, which is a Third Party Verification of institute of sustainable infrastructure known as isi. The analysis performance submitted to isi in five categories quality of life, leadership, resource location, natural world, and climate and risk. Earlier this year on may 15, isi informed to puc to headworks project has envisioned gold award and recognize sfpuc as leader in sustainable infrastructure. With that, i would like to ask if there are any questions for me before i turn over to my colleague for the biosolid project. Thank you. Thank you for that, and i do have a question. A couple of slides back you showed the budget at the various stages or the estimates i should say at the various stages, as well as the uncertainty band. What do we use for our Capital Budget, which of those numbers . So the Capital Budget is about 418 million. Its right around 65 . Thats when we did the last rebate lining effort. So we will maybe i can answer. So it really depends, if youre asking what do we use to put in the tenyear capital plan, it depends on where the project is. If we are in the process of doing a tenyear capital plan, we will use the best information we know at that time, while each individual projects go through the reestimating stage at 35, 65, 95, and 100. On programs like water System Improvement Program, or Sewer System Improvement Program, when we reassess and we identify the risk, we mitigate the risk, and its trending, we actually then inform the commission that the number has grown and we would say what are the reasons that we feel that the projects have increased. And what we will do is put that new number in the tenyear capital plan when we update it again. So we would budget on the blue line. Yes, the blue line yeah. Okay. So as that changes over time, we would read the base line yeah, we would do the blue line. Okay. And would the we also had a contingency that was the Program Managers contingency. Yes. And do we budget that ahead of time . As a result, that came we had some surpluses that we moved money out of into that reserve. Yeah, we had the Program Contingency for that particular reason that if one project have savings, we will put in the Program Contingency. If one project has some overages we would move money. As you remember on the Sewer System Improvement Program, we were enjoying a lot of savings. We were actually receiving business 40 lower estimates. We put all that money into reserves. Unfortunately calpers came about and it took all the money out because of the geotech hidden faults that we didnt identify and we had to overexcavate to address that, which hit up all of that reserve and more. Do we have any reserve like that in the ssip . We have a reserve i don dont i dont know how much reserve off the top of my head. We do have reserves, but theyre really within the projects and the grouping of projects, we have collection projects, we have green infrastructure, and we have treatment facilities. So they kind of reside in an upper kind of a rollup bucket, instead of an overall one line. Okay. And i keep seeing this column is small, but those reserves are not robust at the moment . Do we try to cover i figure what color the top line was, but our estimating range at the top of that, do we try to cover that or how much do we try to cover . So sort offed philosophy that we would use, is that we dont try to cover the top of every project. What we try to do is cover the middle and then put money aside because some projects will go higher, some projects will go lower, and you dont want to tie up a lot of money if you really dont need it. So thats all about Risk Mitigation and also we want to try to have a probability of if all this comes in, either higher or lower, we can use a contingency amount that is not property and ask for more. If for whatever reason were under, we would tell you what we estimated and what things came about that we need to provide more resources towards. And we had a Risk Management process that tried to assess the dollar value of all of the outstanding risks, and over time as things became known, as more numbers became solid, the risk amount decreased. As i recall, we tried to fund Something Like 80 of the outstanding risk. Do we have a similar Risk Management process for wesip for sfip . Yes, we used the same professors for managing risk and preconstruction and construction. We have a procedure for that. Maybe if we can actually present the risks and the amount of dollars that we have because what we normally would do is we have contingency in the project s. When you go through the different phases of projects, you have to put money aside for scope that you havent identified. At 35 , you really havent gone through and designed very much. 65 you know better, but at 35 to really try to give a true estimate of what you dont know, we normally put a number there so that we hope that will cover all this stuff that we didnt really know about at 35. Then if we go to 65, we can assess were we close when we start identifying things. Then the same thing for 95. So that is we can actually present the risk because i think thats important of how do we manage risks. The other thing i want to point out is that were starting to move away from programming of like a program other than the water program, wastewater program, Capital Programs, and power Capital Programs. So i dont think were going to have a Sewer System Improvement Program or a water System Improvement Program and identify a subset of water projects. I think what were going to do is treat all water as one program. As part of the the capital tenyear plan we will put money aside in a contingency for all water. So were trying to figure out how to treat these enterprises as one Capital Program versus having a subset, because theres other construction thats going on in water and wastewater other than and wesip and sesip. The last question actually, forget the last question. Well come back. Oh, i know what it was. The do i read into this that there will be something coming back to the commission prebase lining the headworks project that will include the scope change . Yes. And what will happen is the project that that scope came out of will also be rebase line. So youll see one project number go up and another project number will go down because we shifted that dollars to this project. Okay. Thank you. Could you clarify why you decided to just put it all under one water instead of initially when you had different programs. Yeah, so well, i think what we wanted to do is not have a level of service for a group of projects. We realized that we wanted a level of service for all water projects to deliver water service. So we work with either cdd, you know, hechi, and we came up with level service. Then what we have done is identified what projects that we need to invest in to make sure they meet the level of service. So instead of just identifying a subset of projects, we are expanding that to the whole enterprise. Thats how we come up with the tenyear capital plan. So i think were moving more towards that per se. But were going to continue with the Sewer System Improvement Program, but the way were looking at it is this all comes from the same sort of money. Water enterprise is water enterprise, wastewater is wastewater. So if, for example, when calivaris was when we were putting more money there, it doesnt come from the water System Improvement Program, because it came from Steve Ritchie tenyear capital plan, we had to look at other water projects. So it has impact on the whole enterprise. So thats why we felt its better representation to have a Capital Program of all water, all wastewater, and all power. So part of it then is financial . Yeah. Its easier to move money around . Yeah. Okay. I have a question for you. Its sort of an individual question. You know that 54inch pipe for wet weather that we have above ground, that youre going to put above ground, where does that go . That goes to the primary treatment which is the next step since we are demolishing the wet weather headworks, we need to find out a way to get flow into the next process. So it enters into the next step of the process. To that end, where, how . Physically if we saw it laying on the sidewalk, pipe, does it make a turn and go in, does it go underground and go in . The pipe you saw on evans sidewalk comes into the building, then we have inflow junction box. A portion of the flow goes to the old sedimentation tank and a portion goes to the new existing. So it diverts flow into the wet weather primaries as well as the dry weather. Yeah, i just want to let you know that after we left your company, a couple of commissioners i was with, they actually wanted to take a tour and see the pipe on the sidewalk and they were asking me, its not connected. And i said, well, it will be. Before the wet weather start, it will be all constructed, tested, and in operation. Thats why you needed me there. President caen youll get there. Thank you, commissioners. President caen thank you very much. Good afternoon. Im carolyn shoe and im the senior project manager for the biosolids digester facilities project. So the biosolids digester facilities project is the largest project in the sfip. Here is an aerial of the southeast plant. As you know, it is a critical portion of our infrastructure, providing treatment for close to 80 of the citys wastewater and stormwater, but also one of our oldest facilities. So the purpose of this project is to completely replace the aging facilities and construct new facilities adjacent to the existing plant as shown here in the blue outline. Basically through this project were rebuilding one half of the southeast plant. So with this project we have a rare opportunity in front of us to really build from the ground up, basically start off a blank page for these facilities. So basically were you know, we went through a robust planning process where we identified and addressed future and longterm operations and regulatory needs. We had applied modern, more efficient treatment technologies and ensured plant functions efficiently and reliedly by thoughtful design. Were going to meet levels of service and sustainable goals, including treatment of all our biosolids and biogas and design the facilities to keep the odors and noise inside the plants fence line. So some Key Highlights for this project. Buy applying that modern technology i talked about, were going to be able to treat more sludge but do it with less digesters. Right now if you go out there we have nine active digesters, but in the new facility there will be five. Were going to improve the level of treatment from class b to class a, class a being one of the highest levels of treatment. With this class a product now, well have more future options for beneficial use of this biosolids. As you can imagine, its very rich in nutrients, so we can totally see it being used as a soil amendment for food crops, for example. Additionally with the biogas, which is a byproduct of the digest treatment, well generate enough Renewal Energy to provide heat to operate the new digester facility and enough electricity up to 5 megaawatts and also with any residual power being used at the rest of the plant. Lastly well achieve our level of service goal about controlling odors in the neighborhood. So right here i have a site layout of the new facilities. The different colors represent the different treatment processes that go with the plant. So the yellow which is the solids pretreatment facility, which is basically the heart of the whole biosolids treatment, it provides the thinking, the screening, the dewatering prior to the thermal hydrolysis process. We have purple which are the digesters themselves, and i also wanted to point out that notice theyre located the furthest away from the neighborhood adjacent to the railroad track. Theres gerald street right down the middle of the page and the existing plant is on the bottom. So i have those digesters basically made out adjacent to the railroad tracks. Theyre 65 feet tall, but the way we situated them, they more blend in with the rest of the facility and the neighborhood. Next step we have what is highlighted in green as final dewatering after the die gender expression. And we have the orange in that triangle area, that Energy Recovery facility that i talked about. Blue indicates odor control because we are committed to capture, treat and vent all the processed air from the project. Lastly we have that pink kind of on the edge. Those are actually two maintenance buildings which we thought was a more visually pleasing public edge that weve located along gerald street. Here is an architectural rendering of what it will look like. Right down the middle youll see gerald street and those maintenance i talked about with solar panels and down the side the anaerobic digesters. Theyre concrete vessels, but also planned to what you see there for more of a visual esthetic, and then Energy Recovery as well. I also wanted to show you this just to provide you a snapshot from our actual design model because we did design it in a bama 3d model to get you to appreciate the complexity. I showed you the pretty aboveground structures. I want you to see what the contractor has to face. Basically when you look at this, all the different colors represent different waste streams, whether its treated and untreated sludge, wastewater, chemicals, all being laid adjacent to each other. Remember, im connecting to the existing Wastewater Treatment plant and i also wanted to point out you see those vertical looking piles on the bottom of each buildings, those are piles and based on the last count i got theres 132,000 piles to go along with the 220 cubic yards of soil that are going to be excavated. Remember the digesters in the buildings are 65feet tall, but theres probably about two storeys of infrastructure and pipe galleries and equipment below those. Again, 220 cubic yards of soil and 128,000 cubic yards of concrete. Where are we as of right now . Right now we have a baseline budget of about 1. 3 billion, and i think as you guys discussed previously this baseline was set i think its harland said it depends where we are in the design phase. When we set this in 2016 and 2018, i was at 35 design. So you can see associated with that, there is a construction period thats almost six years with a significant startup. So basically that is what we knew to the best of our knowledge back then in 2016 and 2018. To date we have completed a comprehensive Environmental Impact report, which was approved back in april of 2018. One other note to make was that this project was able to secure close to 813 million of lowinterest loans from the federal and the state. Over 699 million of that came from the epa through what they call their Water Infrastructure financing innovation act funding, and the other balance of the 132 million being from the state revolving funds. So it is projected that with these two loans would result in probably over 400 million of debt savings for the puc over the life of those loans. So its pretty significant. Just like headworks, were also implementing this project as a construction manager general contractor approach. For us our cm gc contractor is a joint venture of mwh constructors. They came an board a little late in our design phase. They came on board at the end when we were finishing with 65 design. Moving on to design. The design of the new biosolids facility is at 95 completion, and based on this design, we are developing and updating those cost estimates and construction schedule. As you heard from the previous speakers, one of the benefits of cm gc approach is that the design is broken into pieces, such that you can begin construction while the other pieces are still in design. With that being said we are planning to issue notice to proceed to construction next month, in august of this year, to start off with the demolition as most of you saw of the existing infrastructure out there and do some utility relocation. So im very excited to report that out. And i think, you know, kind of echoing the two speakers before me, i think we also had great benefit from having the cm gc on board during the design phase, albeit they came in after 65 , but because theyve been so engaged, they were able to influence a lot of the 95 design by providing review and constructability of the design and also doing a significant amount of field investigations, things we werent able to do earlier because one or two things the sites were already occupied so we didnt have full access. But it also was more valuable having the cm cg do the field investigation because they picked locations where we wanted additional geotechnical information. They knew questions to ask and how to find out doing these site investigations. I do have to mention that because they actually found a few very significant things during their review and identified site challenges, they were able to work with the project team, the design team, to mitigate and manage those issues, some of which would have been more expensive if we found them during construction. I just want to give you an example of that being dewatering. Because we put in groundwater wells, we found there was a clay lair that was very permaneeable that it held water and didnt allow it to come out and we found the groundwater is higher in salinity. Because of these early findings, the cm gc brought in what we call a preconstruction core sub, the shoring expert to do the work and work with our design team and develop and devise a new shoring method, albeit we have to dig deeper, but it provides we predict to be a more stable environment when that construction takes place. Remember, that digester complex and that solids pretooement building is 50 feet down. Now that we have that more robust methodology for shoring, we were able to mitigate those issues and having a team mobilized and ready. Trying to figure out as the holes there, someone in the design shop trying to crank out a new design. Also one of the benefits i think with having a cm gc on board is they develop the construction schedule. They dont look at how fast it takes to excavate that thing. They look at it on the backdrop of site constraints. Other construction jobs on site. How fast can we the public roads. I know we will probably have a partial closure of gerald street. So being able to take advantage and stages these. Because all of that kind of lands into productivity as well. Once again with that being so craned, its not like were on an island. With the cm gc on board, they use their expertise to be as efficient as they can, but also factor in the time and the cost of doing that construction. Here is a similar slide that youve seen for the headworks project and here is the cost progression for the biosolids project. You can see when i did 10 which is the first dot on the left, it was august of 2015. You know, progressing forward and then i issued a 35 in october of 2016 and then at the 65 . As i mentioned before, you know, where you see that arrow, the cm gc came on board during that 65 . All of their findings have not even been incorporated yet, but they are going to be in that 95 that i will probably share with you at a future update meeting. Lastly, you heard us talk about envision. Basically envision is you know how lead rating is basically for vertical buildings or office buildings. Envision was created for civil infrastructure. So it really takes, you know, similar criteria, but applies it to a civil infrastructure, whether transportation, wastewater job, other type of industrial settings. So when were also applying for the envision sustainability rating, but you do your rating based on your 95 design. So were not quite there yet, but we did some early assessments when we were looking at envision and were hoping and fully anticipate that we also will probably get a gold if not platinum status as well. So i hope to report back to you on how that goes. With that, that ends my presentation. So ill welcome any questions you may have. I have a question through the chair. In the south of market area, the whole idea of infrastructure and being grounded, talking about like millennium towers and what have you. You were very clear about talking about piles. So is there is the team really diligent on making sure that were not going to have to worry about anything . Because theres getting that infrastructure and driving down through sand or if you find s surpentine or whatever it is because this is a major project, do you feel confident and maybe explain a little bit how confident the team was to make sure youre going to be on solid ground when this thing is finally put together, that theres not going to be any cutting of corners or engineering like skimming off the top or something. Yes. First of all, were laughing because thats the exact same question sophie asked on the tour. I think one thing is that we definitely dont want to cut corners. We mentioned that the piles are going to bedrock. Well, i dont know if theyre going to bedrock, but theyre going to more stable soil than what does stable soil mean . Im not a geotech, but i can certainly come back and talk further about it. I did want to mention as part of the cm gc benefit we identify what we call a preconstruction core subcontractor and we brought on malcolm engineers whose expertise is that, shoring and piles and everything you said. So i feel i think the question was do i feel confident . I think i feel confident that we brought those experts who do this into a room, right . We had them sit with our structural designers. A member of my design team is made up of three consultant firms. And we had malcolm, and not just them, but mwh constructors. Additionally we could have Additional Information come your way about the details of that, but in terms of what i could do from a design stage because everyone had millennium on their mind about the sinking and making sure with the 132,000 piles, that wasnt something that we werent worried about. Maybe what we should do is come back and give a better response with the experts. Yes. Because i know that the city administrator is sort of quarterbacking this and there is a process that theyre developing, whereas a third party it is already in place. I call it like a Structural Task force. If you are a project of a certain size, you have to go in front of this task force. So lets make sure we come back and talk about how we went through that process and where we are today. Will do. President caen thank you, because yesterday i did ask the question and was told that bedrock, yes, that we would go down to bedrock and it was a different level or there is another way. Now i was feeling pretty good when i went to bed tonight and now because im sure that when they did the millennium they had a number in fact, the Planning Department ensures us that we had other people looking at it and we had this and that in place and we still have this issue. So i would feel a lot more comfortable if we had somebody else telling us for sure and why they feel. Because this is an infrastructure, not just a building, but a service as well. Im very confident that you i will have those Group Experts from the contractor and the design team come back and really have a focused presentation on just that. And, commissioner, it was when you said were going to bedrock but not always going to bedrock, that was sort of like not going to bedrock sometimes is scary. Well, like i said, i wasnt i didnt have the geotech in front of me. Like i said, well come back and really dig in. I just wanted to thank you and the director. Tim, you have to go and i would gladly go back because you really get a different sense of what were working with and the roads and all of the things that have to be really coordinated. Its a major undertaking. So i and the enthusiasm of the staff and everybody is still excited about it and what theyre working with, theyre still excited about that. So i feel really good and want to thank you all for all that you do and the work that you do. I would just suggest that when youre talking to us you really need to be if its bedrock, it is, if its not, it isnt. I asked the question and was given a great answer at the time. So i think we have to be very careful then because this is on our minds, earthquakes and millennium. Yeah, i want to thank you guys for your time because it helps to see it firsthand. Obviously powerpoints are great, but you dont get an appreciation of the vastness until you see it right there. Commissioner paulson, we will happily do another tour. I know each time you do it because of the audience it gets a little bit different. We can easily schedule that whenever you guys are available. President caen i think every commissioner should go because as commissioner maxwell said, your scope is totally different after youre there on site and you see it. Because we can interpret what youre saying better having seen it. Exactly. President caen i would like a copy of the slides if thats possible. Ill make that happen. All right. Thank you very much. I have a couple questions. Sure. And one is on where we are on the budgeting process. The last Quarterly Report that we did for this project showed the oneyear delay, and it showed a budget increase or a cost variance of about 39 million and it also said that that covered design and preconstruction. So it did not include any inflation to the Construction Cost of that. Again, im assuming that thats going to come back to us. Im also assuming its going to be significant. Do you have a really round number of how many hundreds of millions . So what were doing is were in the process. We are getting three estimates. Were having the designer to do one estimate, we have the third party parsons. Parsons is a Third Party Party to give the estimate and the construction manager. And the cm gc gives an estimate. They all give a cost estimate and we tri angle late those three, have them talk, because we may have different values for steel or concrete. Think about it, theyre estimating the cost now that it will be at the time that its going to be installed. So they may have put different factors on there so they kind of talk about why they put that factor on there. The other thing i just wanted to point out, and you may bring it up, by working with the contractor with these numbers, again, they will help put the package of work together, but were going to competitively bid each one of those packages. Its not like they give us a number and we give them the money. Its going to be competitively bid. They do have an option of selfperforming a certain amount of work and theres a whole process if they choose to selfperform, there is a process they go through. I wanted to highlight at the end of the day its what the business are that will come out. And through the chair, mr. Director, i really appreciate the way you say that because when people talk about Good Government sometimes, they dont quite understand the complexities for what it means for the cost of steel is or the cost of concrete or laborer. Three years from now. Its not like, oh my god, this cost 100 million when we bid it and now its 125 million because there are certain things that are not in control. Its not incompetence, its not because people dont know how to estimate. Its what happens in the real world in terms of stuff. Its so we have to be diligent in making sure that that is part of the narrative that we have when this great system that we have here at the puc is being expanded and fixed and what have you because its not based on incompetence, especially listening to your wonderful reports. I want to thank you too. And neither of you bid on the roundnumber question. My expectation is its going to be a very large number when it comes forward. I know there are people aside from us who watch it very carefully. Weve received some email. Steve lawrence sent an email pointing to the 39 million and expecting more and hes right. There will be more coming. I know mr. Di costa has been concerned in the past about cost escalation over time. One of the things i wanted to observe is what were going through right now is an example of why we have tried to move to the cm gc kind of contracting. When you get more detail and more precise information and the cost goes up, that is always thats never good news, but its better news if you know it before they Start Construction. The worst thing you can do is be in the middle of something and then have the surprise and bill that out with change orders and all of that when you really dont have a lot of options. So we are going to see some Cost Increases, but i just want to point out its a very different kind of circumstance if youre doing that now than if youre doing that a year from now. The good news is the cm gc process forces as much of that as possible as early as possi e possible. Can i Say Something before you move on. I think whats really important is when we give the cost estimate between the three bodies, we can talk about why do you feel that number is high . What can we do to change it . And we may change it and have everyone do another cost estimate. So i really want to go through the process before i start throwing numbers out there, because we need to try to mitigate what the issues are, because theyre costing what they see on the paper, not what they would do. So thats what we want to go through. Thats an absolutely correct response to that. The other thing is just and i think this is where, mr. Di kosta you raised questions about Power Availability being a key element and i didnt understand what that issue was. Would this be a good time to address that . Im going to talk about the process. Okay. President caen generation management president caen 75 something coming into the city and concern about the digesters. I didnt quite understand his comment, but i can talk to the digesters and our plans for Energy Recovery facility. Yeah. So let me set it up that one of the things that we start moving towards is to reduce our reliance on pg e and create our distribution to the southeast so that we can provide hechi and our resources and use our power plant that were planning to build to supply the power to our plant. So thats what our plans are. So weve been working with the Power Enterprises to be able to do that. So i just wanted to put that out there, but within the whole powerplant using canby, we can use the ability to create electricity to help offset some of the power need of the whole canby system and allow the other parts of the plant. Do you want to . Yeah. Under ssip we do have a project that provides a redundancy right now southeast plant gets i think six or seven megawatts feed from hunters point. We have a project that will bring a redundant 12 megaawatt from another substation. So two separate sources coming in, two separate feeds. In case one goes down, we have the other one coming from the bctd project. So we have can you say what those acronyms are. Bay crossroad transmission project, which is headed up by the power enterprise team. So were bringing a separate feed from a separate substation in separate areas, so that in case one fails well have another redundancy to power the plant. Because i appreciated mr. Di kostas comment it was a concern with the known power demands in that facility and we have projects underway to address that in a perhaps slightly or more robust way to make sure that we have a comprehensive process and planning process to deal with that, its sounding as though that is the case. Yes, yes. Thank you. [ please stand by ] never once has that been discussed here, so were not fools. We can go deep into that situation. Now having said that, i see that you dont give credit to the task force civilians citing the location of where the sewer Improvement Project should be done rather than this place or some other place. Some of these people were there, but they didnt have the ability to understand at that time. So now, they come here with their flowery presentations which goes nowhere. I know in the beginning there was a building that the sfpuc did not know belong to them. It belonged to somebody else, so right from the beginning, this project was shoddy. We know that. Now i actually digress a little bit. We had a time where sfpuc decided to have three, four conduits go under so we could have a turbine. We the advocates fought for it. Very convoluted presentation that would have required an hour of my time to explain to you and more educate you on things that are very pertinent and have not byebeen discusse today. Thank you very much. Im steve lawrence. Im a resident, and i followed the p. U. C. For about more than 15 years now, including this project. My background is i was a lawyer for sewer treatment plants, south bay side, watsonville, marin, so i have some knowledge of these plants. This project, the digester project concerns me greatly. The last time the wsip project had a huge project, it overran but more than doubling. Just this morning, i decided id look at what happened if this project were to do exactly the same thing that the Calaveras Dam project did in overrunning, and i decided since nobody really pays much attention to these dollars, what id try to do is bring it to an individual basis as best i could. For each of you who have an account with the p. U. C. , i figured if it overran, it would be 47 benjamins. So think of it in terms of, you know, you look at the ground, and you dont pick up nickels and dimes anymore, but benjamins, youd be picking those up. 47 of those if this job does what Calaveras Dam did. So im here trying to ask you to pay close attention to this project because it has quite a number of risk factors. Its going to use a new hydrolysis process that no ones ever used before, and id be concerned about that. As far as the excavation is