Report and our popular annual financial report, which will be snapshots of last fiscal year through the financial lens. So, madam chair, could we go back one slide. Yes. So what jobs are you talking about in terms of lean hiring process and the dashboard stuff . What are you talking about . Are you talking about staff at puc or construction . What does that mean . So the first one is the lean hiring process. Thats actually looking at how we do recruitment. So we actually have controllers recruitment for what . Personnel. So how we go about recruiting staff. What are the various steps with going through the posting, the announcement, the actual interview process, all of these things we have identified ways to improve that process, to speed it up. We have noticed a lot of issues around the agency in terms of the time, how long it takes to recruit staff. So this effort is associated with streamlining the process so we can recruit people faster. Is this through the d. H. R. . Yes well, its through the Controllers Office through their lean training process which is about business improvement. It is advised by the d. H. R. But being runned by the Controllers Office. Does it parallel with any other department in the city . This particular training is just for the sfpuc training. So folks are coming into the sfpuc and training our h. R. Folks and about looking at different ways of recruiting our positions faster as being the goal. Thank you. Just another thing. Agencywide Community Impact dashboard. Can you flesh that out a little bit more. Sure. The dashboards that exist now are currently exist for our external affairs, we report on metrics, we report a lot of Workforce Development activities to the public. So this also is to include our infrastructure Workforce Development information on those dashboards. Thank you. And just to point out, a lot of the information that we gather is from certified payrolls of whos working and stuff like that. So were trying to make that transparent as well. So we put that on the dashboard. You can see the website and click on dashboard somewhere. Is that what youre saying . Yes. Its on our website, right . Yes, it is. Im not quite sure where it is. Maybe my folks can help me. External affairs, we can forward you the link, but yes. If its there, thank you, director, sir. Youre welcome. My last slide is just to give you a quick update on once the audit is completed and there is an audit report, typically what happens is theres a number of audit recommendations. And our job isnt done until all of the audit recommendations are concluded. So this summary here provides a list of the open recommendations. We have two audits that currently remain open. There are 11 recommendations that we are working on closing. I do want to point out, the first one is in a relatively old audit report back from 2015. We are working with the city Service Auditor to close these recommendations. We dont currently have an agreement with the irrigation districts and we arent currently selling them powers through these agreements, so its not possible for us to close these recommendations. So we are working with the city Service Auditor to close out these recommendations. They are currently in agreement with that proposal. We are just working on the details. A lot of activity in the fourth quarter, as noted on the right of this slide. We closed a number of recommendations related to the wastewater divisional audit. That was a major audit here at the sfpuc. All of those recommendations have been closed and concluded. We also had a number of recommendations related to an ssip preconstruction practices audit that were also closed. So a lot of work. My team is here that does all of this work. Im just merely talking with you, but my colleagues here and i want to thank them for organizing 42 audits. Thank you very much. We appreciate your hard work on this. You want to stand up for a minute . [ applause ]. Thank you. So with that, ill be happy to answer any other questions. Commissioners . Any Public Comment . Hearing none, next item. The next item is water Enterprise Capital improvement program. Dan wade. Good afternoon, commissioners. Dan wade. Director of water capital programs. Im here today to speak to two topics. First is the water tenyear Capital Improvement program. This quarterly update covers april 1 through june 30. Would you please go to the slides. Thank you. So the highlights for this reporting period are that we did begin construction on one major pipeline project, thats the san and andreas pipeline project. We began a shut down of the harry tracy water plant in june for preventive maintenance. We have o totalled up our mileage for the incity waterline replacement program. Its 11. 2 miles. I think most of you know we have a goal of 15 miles a year. Were still not there yet, but were not going to reduce that goal. Were going to keep striving for 15 miles. Next year we anticipate 13 miles plus, so we hope to get to 15 in the next couple of years. Ill talk more about whats dragging us down in a moment. We did recently put into service one of the major joint projects, which is the irving Street Project as part of that program. So the san andreas pipeline no. 2 replacement provides a replacement. The lock bar steel sections of this are more than 90 years old. Theyre pitted, deteriorated and need replacement approximate this will replace and rehabilitate approximately 6500 linear feet of pipeline in san bruno. The contractors mobilized and began potholing and pipeline fabrication this quarter. The photo shows a portion of the pipeline were actually sliplining, that is putting a smallerdiameter pipe. This is at rage roadway crossings where we cant dig up the pipe and put in replacement pipe. But the page pipeline replacement work will begin in the next quarter. Now be the inner sunshine streetscape improvements and moving forward project which we also refer to as the irving Street Project is a joint project between m. T. A. Led by public works in which the sfpuc has participated. The water portion of this project includes 8500 linear feet of 8inch and 2300 feet of 12inch ductile pipe. The overall project completion is anticipated tomorrow. Ill doublecheck with the project manager and make sure that happens. Again, this is one of the joint projects. Many of our resources, ive mentioned this before, but just as a refresher, many of our resources for this program are tied up with these joint projects. So were somewhat at the mercy of some of these other agencies in terms of making the progress towards that 15 miles, but were going to continue striving towards that goal. You just blame each other . Try not to do that, but we work hard together. Lets put it that way. I think one of the they are complex projects. I think one of the things that you know, because there is an effort and a desire for us to coordinate. So we, you know, at our sewer work as part of their Street Project. So one of the things weve been thinking about is identified that we allotted the money this year for the project. If it goes a year or like another project three years, we did put money aside for that mileage in this year. Its going to happen, hopefully sooner rather than later, but were not managing that contract. So were thinking of a way to just let you know that weve completed this, how much miles weve completed is how much miles weve committed to and providing money in other contracts so that we can do a rolling accounting of all this. Its just hard to do 15 miles in one year when you participate on contracts that take multiple years. So were just trying to figure out a better way to report it accurately. Thank you. And, director, through the chair, i just you know, i mean, its music to my ears when i hear so much construction and i see folks digging up stuff and whatever. I know that the general public sometimes gets irritated because theyve only got one lane instead of two lanes to go down, but this is infrastructure work. One of the things we care about in this country right now and its not being paid much attention to, except in se a place like San Francisco is infrastructure, whether or not its m. T. A. Or the department of public works or whatever else. Were trying to take care of our town to make sure that it functions in the way that it was brought up to be. Interdepartmental strategies are whats going on between water and streets and whatevers going on. My office is on vaness and been, frankly, a pain in the ass but its great work thats being done because its got to be done and thats what were supposed to care about. Are you saying then that youre allocating for 15 years. So it just kind of rolls over so the money is there. Is that what youre saying . No. What were saying is our goal is to complete 15 miles of sewer replacement each year and we only have certain amount of money. So we may selfperform or have a contract directly that will do like 6 or 7 miles. Then we put money as part of the street paving that d. P. W. Does, we put money so when they pave the street they can actually do the sewer first. Sometimes we joint with the m. T. A. Because they want to do tracks and we want to have them replace a sewer because we just want to go in there once. So a lot of the contracts we dont have control over, but we allocated money. Im just saying that it goes multiple years. The other thing that i want to point out is its a little more challenging now, especially when you do combined projects because they take longer because youre not just doing the sewer, youre doing the sidewalk, widening, water and pg e. The concern is the residents and the commercial. Youre blocking their streets and taking their parking. One that was in the paper recently and vaness. With social media next door, we just have to be a little more mindful of how we can minimize impact where we definitely need the infrastructure done. So i think thats something that as a city were trying to figure out how we can do a good job of not only traffic, but also the businesses and the residents that youre impacting. But do you think that it makes sense and it seems that it does to do it all at one time. Because if you didnt do that you would have to hope it up again. A lot of us are saying why didnt they do that at the same time . So it has its pros and cons. Its challenging. Especially where a lot of areas are mixed use. It would be nice if we go in and do 24 hours a day, multiple shifts, and youre in and out. Folks need to sleep and businesses need to operate. You cant do it during the night because folks want to sleep and you cant do it during the day because businesses have people coming in. Its hard when you cant go in. If you can go in at 8 and have to leave at 3 00, its going to tack for ever to do the work. Those are the challenges we need to face and work with the communities to see if you have inconvenience for more hours hopefully the project duration would be shorter. Is it more efficient . I mean, fiscally are we saving money by doing it this way . Is that a plus side . I wouldnt say were saving money doing it this way because theres a lot of complexities that come into play when we do these joint projects. So give me what is a so what is the plus side . So the plus side is that we are coordinating the work, were doing it all at one time. In theory, it should be cheaper because youre sharing a lot of resources like Construction Management and stuff like that. But also the perception that youre coordinating is valuable. But on the minus side is that it takes longer because the when we do it separately we go into the sewer and then we go on and we put temporary pavement over it. Then you see pg e coming and cutting up the street, why didnt they do this together . Our issue is our thing is in a different location and whats also challenging you have to keep traffic going. They have what they call the green book that identifies how much traffic you have to have a lane open. So you need to have barriers and you need Traffic Control and thats where it becomes expensive and harder. Then you have noise, you cant have noise before this time or after. So its a lot of restrictions. Then all the lyfts and ubers, its challenging. Thank you. Thank you. Just moving on to out back in the region, the longterm improvements project has two components. The first one is essentially complete and were scheduled to move in in september. We did install the first badge of pathogenfree native plants. So thats exciting. Then the watershed Center Contract b of this project is scheduled to advertise this month. Weve prequalified three contractors. Theres one contractor thats still attempting to prequalify and we do expect to have hopefully see all of those contractors bid the project. In terms of dams and reservoirs improvements, theres two active projects. We are continuing with geotechnical exploration and we are also looking at a task order to assess probable maximum flood and spillway. So we are continuing to assess those facilities as we go forward. Im sorry . Whats the geo geotechnical . Yeah. Exploration. What are you exploring for . Were exploring the soil and the rock in the facilities to evaluate both static and seismic stability of the facilities, both the dam and embankments with the facilities. How often will you have to do that . This is something you do at the beginning of a project when you build a project. These are old facilities, so were reevaluating these facilities. So its something we only do very occasionally. Thank you. Lastly, the west side recycled Water Treatment facility consists of four contracts. This is 2 million gallon per day recycled water. The Treatment Plant contract is the one thats shown here and the construction of the new Treatment Facility buildings have advanced to the second floor, slab, and walls. Weve conducted a sevenday Operational Test of the system and demolition of facilities inside building 510 have begun in june. With that id be happy to take any questions. Are you continuing on . Dan is also going to give an update on the next section. So my second item is the water system improvement program. If you would please go to the slides. Youve seen this chart many times before. This is just to emphasize that we are 98 complete with the program. The red in the pie chart represents projects that are totally complete. The green represents projects that are technically still in construction, but that portion of the chart is going to get much smaller in the next several months when we close out the replacement project. Can i ask a question on that . Because we have an item coming up in the consent calendar that i might pull just to understand it a little bit better. Does that 310 million include the project at Alameda Creek . 310 million. Thats remaining; right . Yes. It does include that, yes. Its not the fish project is not in the excuse me. Okay. Theres two projects. Theres the fish passage at the Alameda Creek, thats one project. The alameda catchment project is still in the Environmental Review process. So the 310 million includes that. And then where does the fish passage replacement thats technically still in construction, part of the 1. 015 million. Okay. Yeah billion, i should say. And 310 remaining in the pie chart; right . 310 million remaining in the pie chart. Right. Thank you. Yeah. So the replacement project was substantially complete in april. Final construction completion did complete in july. Im reporting on the last slide so they report that. You can see the plaque that was presented at the dedication in may has now been installed. The project administrative close out will continue through the end of this year. And theres eight administrative awards awarded on this project so far. Then the fish passage facilities at the alameda diversion dam, which again is a subproject of calaveris is 98 complete. The close out documentation was in the final quarter and the final documentation will happen in the next quarter. The regional groundwater projects is one that will continue past the calaveras dam. Phase 1 construction is 98 complete. There were changes to the chemical treatment. Phase 2 which we call contract c is in the planning phase and is about 10 complete. Now, you may recall there were some comments from a meeting a couple of months ago. We did have a good meeting with bawsca to discuss meeting the Service Goals and objectives related to this project, and we are finishing a memorandum as we speak that will be presented to the commission in august that will present the status of the project. The Alameda Creek recapture project is the one that is still in the Environmental Review pha phase. We do anticipate recirculating the draft e. I. R. In october. Once that document is published we will reforecast the entire project schedule. We have decided not to reforecast the schedule until we actually have that document published. So it is anticipated that this project will likely go beyond the end of the current program, but again we will not make that reforecast until we get this document on the street. Would that then make this the last project . It will be a close race between this one and the regionalal groundwater storage i would say. Then i would like to inform the commission that we did the City Capital Planning Committee and presented a proposed reallocation of regional budgets that was subsequently approved by the board supervisors. As you way recall the wisup has been managed in six buckets of money. So the appropriations were made by region. Now that weve gotten past most of the risk on the program, we had requested the board to allow us to move money from the regions where we no longer have risk into regions we still know there is risk. In particular the San Francisco region, which is where the Recovery Project is located. Weve lumped up weve basically cleaned up the money from these other buckets and but it in that bucket. So i just wanted to make the commission aware that weve done that. Were not asking for a formal baseline at this time. We want