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