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