Capital Financing Activities of the puc. This is important because the pucs large debt portfolio and credit needs and as always, our management activities both of an issuance and administration standpoint are guided by the various policies that youve approved in the past, including the Capital Debt Service policies, which you approved in 2017, as well as debt and management policies and procedures and finally our debt and management activities are guided by our key debt stakeholders including the oversight committee. So on this slide, youll see a senatsnapshot of the debt inclug Revenue Bonds, lowcost, state and federal loans and it shows the strong bond ratings each of the enterprise currently enjoys. The capital Financing Activities are centered around three areas. One, meeting the new credit needs to satisfy the ongoing Capital Requirements including determining when and how much funds are kne needed to be ang d and the debt portfolios which is one when replaced renewed Credit Facilities and finally, the continual monitoring of the markets to see if we can identify opportunities to benefit rate payers such as refunding outstanding debt for savings. So this slide is a bit of a busy slide showing the debt activities that we plan on bringing tow ove to you over the of the fiscal year, executing new lowcost loans, new money revenue notes and new money bonds for the water enterprise and as is always the case it seems each year of the approval of renews or Credit Facilities for our interim funding programs. Later on today, youll be asked as a part of your regular calendar, youll be asked to consider one of these items. And the last item shown on this slight, which is not a dead issuance is the bond authorizations for each enterprise. Whats not shown is a financing that we plan to bring to you in a month, november 26th, meeting. And Interest Rates are low right now and weve identified working with advisers, identified a refunding transaction recently. It was too late to get it into the Capital Financing plan but i wanted to report to do a water revenue. Hopefully the market continues and once you consider this transaction on the 26th, we can enter the market right away and execute what we think would be a favorable transaction for the water enterprise. Excuse me. Can you explain that again. So that would mean a new refinancing mechanism, basically. Were taking outstanding water Revenue Bonds and because Interest Rates are slower right now, we are going to issue whats called refunding bonds to refund the outstanding debt so youre replacing debt at an Interest Rate with new debt at a lower Interest Rate representing u. S. A. Ingssavings rates to the. Payers. Its the same concept of the mortgage, except for dollars. That completes my press. Presentation. Happy to take questions. Thank you. Any member of the public with a question or comment . Good, thank you very much. The next item is a waste water capitalled improvement programme. And howard, can you respond to commissioner slides, please, donna. Good afternoon, commissioners, acting director of the water programs. A couple of things today. First ill start out with the update for the quarter ending june and i think the next item is the waste water enterprise Quarterly Report and ill go over a question commissioner maxwell had at the repairs. So dropping into the program status, phase one are currently 32. 2 complete with 833 million expended at the close of june. This quarter we were able to progress five projects out from the preconstruction phase phasee planning design. We have 13 projects in construction in green and were able to progress six more projects into the closeout and completed phases which are the grays in the pie. Ill go over the hue light hue. Solids will initiate the phase. During the quarter, the design team finalizes the outpackages for sur relocation, demolition excavation and foundation work. The team is also working to bring on the power, waters and sewer didnt telephone utilities and the starchin staging area fm and as the commission requested, we plan to provide a major update of this project on the october 22nd meeting. Moving on to the hedgeworks project, the team is progressing with two of the five scopes. For scope one, the contractors are working hard to complete the building demolition and finish the bypass pipe work and the other dryweather dependent work on scope 2a exis the pumpwhich p station. Scope 2b, the team has completed 100 zion for this quarter for the influence, sewer and force main. For scope 2c, the southeast list station and the team is is working toward the design early next quarter and on the main headworks project, the first of the suggestion waves of construction work packages are currently processed for ntp. We plan to provide a moredayold project update at our october 22nd meeting. And move on to other projects. This sunset green boulevard, phase two will reduce sewer discharges around sunset boulevard. Phase one was a Pilot Project for two and a half blocks, constructed by public works. Phase twphase two will be 12 blm luola to your irving within the existing green space and incorporates a curbside inlet from the street, pipes it into the rain garden and allows it to soak into the landscape before it enters our combined sewer. We received two bids in june and we recently issued ntp to the low bidder in late september. The north shore push station is 35 years old and due for a major upgrade with four existing dryweather lift pumps and allows for them to operate as redundant wetweather pumping, providing wet weather conditions. This project will include improvements to the bar screen, as well as an overhaul to other systems, including the electrical, push controls and distributed control systems. And this project was advertised and was slated to Start Construction in september, but, unfortunately, due to Overall Safety Program concerns, we have elected to close the bidding and we will bring forward a prequalification process to validate bidders before soliciting for actual bids. I was going to clarify why we are pausing these projects, because were working with the City Attorneys Office to put qualifications or prequalifications for contractors to have a good Safety Record and because weve been having contractors and we had some projects and we wanted to make sure whoever comes in on these projects have a good safety program. You must have read my mind but i wanted to ask a question, the new pumps that youre putting in. , how are they different from the old pumps . Well, theyre fairly the same. They have to meet the same pumping curve and for dry weather but if you go back to the slide, sorry so were basically rerouteing the flows from the dry weather pumps through a manifold system back to the wetweather said to do both when w. When we replace dryweather were replacing that pushing bud adding redundancy, as well. Just wanted you have to be careful because they went on the equipment so they know all about pushes. Pumps. Vertical, nonclog. You wont be surprised at what Good Students we were. [ laughter ] this timeline shows how some of the other major phase one projects are progressing. The red line shows us where we are as of june, blue line through design and environmental phases and green represents construction grades closeout and just a quick note is that we plan to Start Construction on the southeast plant seismic rehab project in the fall. Continuing on, the Division Strategy project, the ntp was issued and the team is performing concrete repair, as well as implementing or repairs to the backflow controls at the csd structures. A lot of this is nightwork. But our construction completion is anticipated to be completed around the summer of next year. The balker beach green street Infrastructure Project is in construction and this is the one we had a grant for, roughly, i think 3. 7 million from the state. And we have recently encountered unforeseen site conditions including a turnofthecentury duck bank and human burials. The team is working with the Planning Department to quantify the remains and working with the team to return the remains to coma. Lastly, the oceanside digester gas utilization is in construction with an anticipated completion by february of 2021. Work is progressing and this is a project that requires much coordination with the other adjacent ongoing project at that plant. Lastly, a bit about our other work, we completed our sixmonth update to our jobs and contracts report. That highlights our efforts and successes providing opportunities for local residents and contractors to participate in our work. In may we hosted the 13th ants 13th annual contractors breakfast which has been a big event for us and our contractors, for local businesses, to hear about what were working on and what our upcoming opportunities are. These are examples of how we are leveraging our infrastructure assets or investments to support the local community and our local economy. Were proud of this work and we look forward to continue to expand these efforts. And with that i just wanted to point out, anand this is for francesca. I went back to rec and park conscience. Yosemite creek, they are interested in teaming up with us but artificial turf because theyre concerned of the gopher holes they have in the park and they female that they identify artificial turf, which is more tornadmore i guess they movey from the rubber. Theres a call for an update and that you let me know and i appreciate you bringing that back to life. I think its an important highlight to explore and see if we can then replicate. I dont love artificial turf and it seems to somewhat defeat the purpose of green infrastructure. How does that help our sewer system . Thats a big fight at rec and park of having natural turf versus artificial turf. Having sons that play soccer and baseball, you step in the gopher holes and thats why its been something of contingency in rec and park. Of course, i was going to say the same thing and i recognise the gophers and the gopher holes. There must be some way to do it because i cant do anything in my backyard because these gophers are rough but i think there has to be something rather naturally and creative that we can do because it does seem rather to defeat the purpose, but i think there are two different goals and thats what we have to reconcile. Whackamole. [ laughter ] i think wea were setting upe meeting. Any other comments or questions . To the general public, comments, questions . Oh, i have a question, actually. You are going to get to th the i have a question on greenways, very specifically like the sunset you reported on. Why do they cost so much money and what am i missing . I mate hav might have to geto you on that. It took awhile tor u for us to k the pilot. That was one of the first ones we did and we worked with the public works to try to construct that and it took some time and probably still trying to finalize what that cost was. We know better now. The bids came in well. We had a good contractor and were anxious and happy to move forward on that project. I appreciate that. Referring to the irving thing, the 8 million. It was 8. 4. It just seems i just wanted to make sure. It seems so simple and i must be missing something that is involved with it. We could come back and report on that, to have you do that. Than thank you. Now if you could answer, commissioner, the next question. I was hoping to go through the waste water. I called the waste water first so you can answer it and wenandyou went ssip. Sarah, could you maybe speak to the cost because i have a better understanding because weve talked a lot about these projects. Theres a couple of things with the pilot block. We encountered problems with the steep learning curve and no staff that new about green infrastructure. The public works staff tasked with implementing the project needed to be trained from beginning to end on how to do it and ended up that the unit costs were higher than our engineers estimate and since that was a learning block, we then said, ok, lets document or Lessons Learned and try putting the next piece out to bid and so we had help from harlen, saying o, welok,well try it this way ane how the different ways can reduce our unit costs. What were finding is that teaming up with public works for design can be fine but for construction, putting it out to bid is more cost effective. So with this bid that were getting for the second phase of sunset, theyre much more align wialigned with the engineers estimate. It seems like it should be easier to implement or less costly. The reason it does cost that much is that were not just managing rain thats falling on the project. We have to capture whats called the drainage Management Area which so that infrastructure is draining stormwater from impervious services around the rain gardens. So the design, the grrating, the soils and plants are sooned ando capture unleinlet areas. Its engineered structured that requires sitespecific building interventions during construction and that is what generates the unit costs that you see for storm water management. Sunset boulevard has been our highest area, because we have infilinfiltration over 40inchen hour. With infiltrated 90 of al it during the rainy season. Ill have to learn more. It seems like a lot of money. We could do a presentation for you in more detail, if that would be helpful. Our next one that we do, that would be good. Ok, ill note that, thanks. So we finished the Sewer System Improvement Program update, and did we do a pub pubc comment. I believe so. You want to do the waste water one and start by responding to sophies question. Sure. Youre correct, when we first initiated the emergency declaration, we really didnt quite understand or know the actual costs. I think we were projecting it to be 2 million or 3 million, i believe, originally. We brought on a contractor, power engineering, a marine contractor and came in and looked at the project and the designs and they quantified that theres no way to build it for that amount of money. So we did change the first to a 5 million amount. Starting into construction, we had to change some of the construction methods, as well. We had to bring in a barge and actually build a barge at that location because we had to cross two bridges. The bridges werent working is we had to build a barge and walk our crane on to that barge and that required money. We had to change the shoring system to a coffer dam system. We had to change the shoring method and add a Monitoring System, a vibration Monitoring System for the palms t paper. Pipes. Of course, soils themselves are hazardous and we had to dispose of those in a legal way and those are the extra costs that we are looking at now. The good part is, actually, that our pipe is actually constructed and conducted, and so that leak that temporary pipe is fully connected and were looking to activate that in the effect couple onext couple of d. My concern is that it says that more poor soul conditions, limited waterside access, active marine life and delapidated and larger than expected void underneath the pipeline alignment. So i guess my concern is, what is it that youre putting this why should we think it will be better and, you know, when all conditions exyoand you having to shore it up, im concerned of the lifetime and what can happen because of the sentimentsediments, we dont kns in it. Its a temporary piping system. We have a permanent project which will reroute around, further away and around this access area. Sorry for the long story. Sounded like a typical day. [ laughter ] you can go ahead. I have to get the approval. Ask for the slides because sfgtv. There are no slides for this one. Im howard fung and for this, the waste water bee enterprise. Our forecasting extensions by six months or more or have cost variances for 10 above the approved budgets. The first one is the southeast plant, power feed and primary switch gear project. This is behind schedule because we need to rebid this project. Bids were due and received in may, but we had to reject the bids. And as harlin mentioned, were going do a prequalification process for this process, as well, so theres a lul little ln that time. The central bayside system, phase one, is behind the schedule. Phase one is to complete the design for the 35 level and we are currently extending out and were looking to reprioritize the remainder of the project and theres a little delay there. The permitted project, which is the southeast bay, the crossing replacement project, thats a long one. This is behind schedule, around eight months. We needed additional tame to incorporattime toincorporate thr the emergency contract and we anywayed to complete, of course, the sequa review. The rehab project, this one is projecting above the baseline budget due to higher costs from actual bids received. We did have to rebid, as well welcome and completion is slated for next year and that completes my report. Happy to answer my questions. Well a question i have has been answered, but im concerned when i look through the report and see the red dots. For example, on page 9, and also the time it takes to get up to speed on the project. And what can we do in the future so this isnt happening. Overall, i could see that weve never seen a report like this with so many red warning saints. Signs. Some of these projects, a lot of interdepartmental projects, sometimes their schedules are out of our control. We deal with mta and public works and depending how their schedule is, we have to coordinate because we only want to dig the roads once. We partner and caugh coordinatee projects with those agencies and it takes awhile and we get dragged along. Some of the other projects, were gettin getting higher bidd our prices rest that and some of the budget projects are higher. But overall, were trying to look at that to recoupe savings as we can. That makes sense, thank you. Put. I would just say that overall and this is were actually getting some data, not only in the bay area but nationwide, prices, construction prices are going through the roof with the tariffs and wi