construction. thank you for allowing me the opportunity today to give you a brief on central subway. the central subway program is phase two of the third street light rail program. phase one was completed in 2007 and the completion cost of phase one was $648 million. phase two, central subway, is 1.7 miles of new track way, three stations below ground and one surface station to a projected cost of $1.6 billion. once completed, both phases, the total projected cost for central subway will be $2.2 billion. the federal share on this program is going to be totally 48%, and the federal sharing on phase two alone is 60%. the central subway schedule, we've completed conceptual and

preliminary engineering. we have completed and seen our way through the supplemental environmental process, and in late 2008 we received a record of decision from the f.t.a. to allow us to move into the final design stage. our new starts rating we have achieved on this program is medium-high, a very, very good rating. we have had that rating now for three years in a row, so we have done very well. currently we are in the final design stage, and we are working diligently on real estate acquisitions to allow our program to advance. and we've also started construction this year. earlier this year we have our utilities contractor that has been to go work on 4th street -- doing work on 4th street. as of may this year, the program had expended $39.5 million. this is slightly under the baseline expenditure projection

that we originally had at roughly $70 million at this stage of the project. the primary read for the lag is the agency attempt and experiences we have gone through to unbundle are our service contracts to offer greater ability to have small businesses, local disadvantaged businesses participate in a program like this. it did society us back a bit, but we now have all three final designers on board with contract, and we are analyzing solutions to regain the design schedule. just of note on this, on the budget, we actually are doing very well cash-wise. we currently have an obligation of $155.9 million. earlier this year we completed the contracting actions for the three final designs. in january we issued a notice to preed to p.b. telemont.

they are world renowned for tunnel designed. they had joint ventured with a local coal. the contract value on this contract is $6.5 million. this contract has a 31.6% s.b.e. participation. in april we issued notification to proceed for the second final design exact. that is the stations. they brought on board a joint venture. p.b. once again well known in design. the other two are local establishments. of note, one of them graduated from the city's program. the contract design package

number two for stations is at a value of $39.9 million. the small businesses percentage , it looks like we are going to achieve 36.6%. we are doing well on our contracts for local inclusion. in april we also issued a notice to proceed for our final design contract for track way and systems. the joint venture that we awarded that contract to is hntb. that is a well-known engineering service provider, and they are joined by b and c transit, a local firm that specializes in train control and transit systems. that contract value is 32.2 million, and it looks like we are going to reach 30% f.b.e. achievement on that contract. each team has mobilized resources and final design is underway. the program controls package,

this is the last services contracting package on the central subway. it is for the provision of design and implementation of a program control system that will integrate the existing legacy systems. this contractor will perform all services to procure the system, integrate and implement the system as well as supply project control services such as construction and design scheduling, cost control, and contract claims administration services. for this contract we reached an agreement with a very strong team for an amount of $22.2 million. of note in the calendar item, we are asking to certain fight -- certify the $13.4 million. $10 million is funded from the

central subway program, but the enterprise part of the agency that will benefit from most of the program control systems are using capital projects to support that part of the contract. right now we've got eight contracts listed that are supplying a percentage of the funding to support what is certified. ultimately the deelt will be certified as -- the delta will be certified as needed when we have other projects come on board. program staffing on central subway, currently there are 140 staff members dedicated to the project. this is slightly under our project need of 143 at this time. if you look at the chart, we had planned 124 in this period, but i spoke about a lag due to contracting strategy. so we need about 143 at this time to start regaining some schedule.

we are close, not far off from that. staffing are primarily located in two offices. the project office which houses the administration. construction management is located at 821 howard street, which is very near the alignment. the design team is located at 651 brannon street. there are 31 staff members at the project office and 63 at the design office. the remainder of staff that are dedicated to the project are city resources and other sister departments, the city attorney's office. those resources that are supporting the program that we had intended to use city resources for, they are staffed and located in their city offices. just a quick recall of the alignment. if you take a look at the top

map and start from right to left, the alignment starts at 4th and king, connecting to the 3rd street tracks. the red line runs along 4th street in surface configuration and enters a portal at other near the i-80 overpass and goes underground. the green lines shows it proceeds along 4 hth street, and proceeds all the way for columbus where it will have an extraction shaft at washington square. the lower portion of the graphic is in section, and it gives you a graphic depiction of what the elevations of the track will look like and what the stations will look like. proceeding from right to left, you see s.p.f.

then on to the bart muni tubes. the tunneling will proceed under those tubes, and then there will be a u.m.s. station at that location joining with the metro at pal station. it then proceeds on to chinatown station and then on out where we extract it. mosconi station will be the first undergration station traveling north. it will have a -- an entrance. we are acquiring the property. that property is in this area right here.

this is where the surface entrance to the station is going to be. the station will be designed to have a concourse and a center platform designed to accommodate both two-car trains and the mosconi station will be located on 4th between howard and folsom. the union square market street station will be the second underground station traveling north. it will be the deepest station because of the bart tunnels that we will be closing. this station will be two entrances at the surface. one entrance will be near the existing apple store -- i am sorry. i am struggling with the mouse here but it is at the far left of your screen. but the other service entrance

will be at the union square plaza. there will be direct entrances at the union square grand jury at the north end. our third station of course will be the chinatown station. the inset picture you see is the property we are acquiring to build the station. that hogan-vest property is in that location right here. this is where the station entrance been llt. >> that is at stockton and what? >> it is at stockton between clay and jackson. i believe hogan-vest may be at jackson, but i will have to verify that. >> ok. >> it is washington. >> ok. >> the final design activities, as i said earlier, we have one

construction contract underway, and the design teams are providing construction support and submital and request for information review. those two pictures of of that 1250 utilities contract. one is of piling at 4th street and the other looks like an interceptor vault for communications. that contract is about 50% complete, and we expect to complete that contract in april of next year. the other activities underway by the designers as priorities are three main contracts. the first being the contract for the raineder of the utilities, major ilets up near the market street connection and up along stockton. that contract, 1251, will be advertised in september. we just received approval on

the drawings and signed the drawings. we will be putting those packages out in september. we've completed all the work to obtain agreements on sewer relocations and property owners. contract 1252 is the tunnel contract. that contract is scheduled to be advertised at the end of this year. the designer has completed the 65% submital in may, and he has performed most of the required goh technical -- joey technical investigations. >> the next contract is also under way. it has gotten the latest start and getting geared up. the team has performed some final design strategic planning to coordinate the timing of the other construction contracts, and quantities are being prepared. just a snapshot at the future

construction contract we have on our plate for central subway. one is under way, and we have six more planned, starting with the advertisement in september, which will be the utility relocation. then the tunnels, which we plan to advertise by the end of the year. then the three stations in succession, union square to advertise by the end of 2011 and chinatown and mosconi advertised in the spring of 2012. the final contract will be the track works systems and the contract that integrates all of the other contracts. coordination, i wouldn't say it is going smoothly. i would say it has been going at a very rapid pace and making positive progress. we negotiated one agreement with bart, the cost sharing

agreement. that was to be on the calendar today, but bart wanted to revisit some of the cost agreements, and they are going to get back with us so we pulled it from today's calendar. you can expect to see that at your next board meeting. we have got enunder way of the fworkses of the operations and maintenance agreement between bart and the m.t.a. the subsan joaquin basement up dates. we have held hearings for market. things are moving well. we have finalized barney's. it didn't want to move and was going to cause trouble. the central subway team did a very good job of negotiating their way through that with the tenant and owner. caltrans, we are negotiating agreements with them for encroachment as well as lay-down for construction, staging leases and a coop

agreement. and then forecast, we have nuisance hearings and encroachments can go up for two locations. we expect those to be beginning in september. financial capacity assessment. staff has completed a state of good repair analysis in april. they have completed a state of good repair training, made a submission to the f.t.a. and an interim report. the f.t.a. is very pleased in the direction we are moving with the agency to focus the plan towards a state of good repair and less enhancements. the county transportation authority has revised their modeling, and with the new numbers, that ridership will be

used in our numbers this year. we started a mind the gap committee. the mind the gap committee was established to address two key funding issues. the project funding shortfall and the cash row crop we are going to experience several years from now. the mind the gap committee has representatives from the mayor's office, the board of supervisors' offices, transportation authority, commission, spur, chinatown community development center and sfmta staff. it's a very robust committee that is looking at finding ways to patch our funding deficit or our funding gap. in july staff submitted a response to the financial capacity assessment. we haven't gotten anything back yet, but the response is that it was looked at favorably. on the financial capacity

forecast, staff is working on operations maintenance cost update. we are expecting to submit that to the f.t.a. later this month as well as the draft state of good repair report. in september we have to submit our financial plan to the f.t.a. under real estate acquisition, there has been a flurry of activity going on. we've made submissions to the chinatown property owner and mosconi propertier own, the two sites we will be building on in june. we made suggestions to the last resort housing plan in june. that actually was approved by the f.t.a., or they gave us favorable comments back july 13. and then resolutions of necessity of board and supervisor packages for both the mosconi and chinatown sections.

the board of eminent approval was given approval july 27, just last week. so we are moving now to submit that to the f.t.a. to receive federal approval. i believe the next step, since we now have board of supervisor approval on those properties, is then to get the superior court to weigh in. you see the last two bullets are submitting the tenant relocation plan, which is what is before you today to the board of supervisors for approval, and then the board of supervisors tenant re-election plan approval. just to give you a snapshot of what i just quickly explained, there are five takes in total that we are taking. if you take a look at the chart, the red letters, the mosconi and chinatown locations, you can see where along the problems they are.

and then the blue areas indicate where the subway is going to need access for operations and maintenance, and venting. so we have three underground easements for the tunnel in those locations. all in all, the central subway team has been doing a superb job of making great strides to make this program a huge success. the two calendar items before you today represent two key elements requiring your approval to maintain the momentum on the program. as mr. ford has spoken earlier, calendar item 12 requests your authorization for the agency program controls, and item 13 requests your approval of the central subway relocation impact study. we have staff here today, and so we will be happy to answer any questions with either of

the two calendar items or the brief i just gave you. >> thank you mr. rohan. a couple of questions about the actual tunneling. in the double slide, it seems like the construction there has been about three years as well. are you familiar with that project? >> no, sir, i'm not. >> it appears to be a much easier project than going under all the stuff in the city. >> that is the complexity, doing a subway in a city that has utilities, sewer, water, electric, you name it. there is a whole host of things in this city, and in some cases we have found some of it as we have gone on. we have had to find ways to deal with that, which are far outside the engineering realm when it comes to remains and things of that nature. it is very complex when we are

talking about a tunneling job under a major urban city. >> do you have a time frame? >> they are doing samples, but you are always at risk of something that is not there in the drawings or the historical documentation. there is some risk in terms of crog across something that we didn't plan to. i think we have built in a certain amount of contingency there, and hopefully that is enough to cover it. >> chairman, we are very comfortable with the schedule. i would submit to you that the greater risk is going to be on the time lines of actually constructing the underground stations. the tunneling itself is going to go very smooth. if we hit something like an arc logical find, it will stop us in our tracks until we clear that. >> so the last things that goes in is the tracks? >> we are staging the contract

that most of the material can be removed through the tunnel. so there will be subbays and temporary track put if for those contracts. >> and those projects could go on? there is nothing to preclude that? >> the actual exit is in north beach. >> this contract includes a tunnel bore machine retraction shift. we go all the way to washington square, and that is where we take the machine out. and all we have to do is close the door over it. if we ever decide there is a phase three, it will be able to spring from that. >> when there is a phase three. >> you mean spring from that, building a washington square station? >> anything that is designed. >> director? >> i think you forth greats presentation.

it is very helpful to see this all laid out. a couple of service-related questions. the south terminus at king and 4th. does the t lee keep going down the existing line? >> no. it is going to connect both phases. the terminus would be visitation valley for the t-line. the t-line would continue straight, not make that right-hand turn. >> so someone there chinatown could keep going to what is the current end of the t-line? >> yes. >> and is the current t-line around the embarcadero going to continue as well? >> no. >> so that is the end of that one? >> yes. >> so then my next question is -- and i am sure you guys have thought of this, but my limited exposure to this in my real job suggestion -- suggests any time

you go to digging up a gas station, there is a lot of remediation? that is part of it? >> yes. that is in our plan. we have that contingency in our plan. >> you touched a little on this, about the laying down of temporary track to remove debris. what is the sort of anticipated disruption for the union square area associated with this project, and how much of it can be done underground to avoid strupting what is obviously a commerce center? >> actually, each of the three stations will be excavated differently. mosconi will have the more surface disruption, because it is a cut and cover. we'll bore down and then squa videogate back up. there will be a lot of

disruption around that one. our utilities contract that is going to be going out in september will uncover and reroute major utilities, and then place back so that we can restore traffic on a temporary means. then we are going to mine from there down and then build back up. now the struppings will be mitigated considerably, but there will be some surface disruption to make the final closure and initially to make the utilities opening. the chinatown station is going to be mined completely. we'll bore through and then set up and mine inside. >> so we could probably come back to you with specific time lines in terms of how much disruption at each location, if any. for example, minimal at chinatown, but definitely at union square. we have a very healthy community relations group as part of this project. there are a lot of elements

that are working with the union square merchants and dealing with those issues. but we can come back with more of the details on that because those are questions that we had to answer a couple of years ago when we went through this process. but i don't recall the exact -- >> one would be to minimize it during the christmas season, obviously a busy season for them. as long as you are doing the outreach with the community, that is excellent. the one thing i note on this map which is an excitement to me, you have in here a possible future line which appears to be running along eerie. am i reading the map correctly? >> which page is that on? >> possible future muni line. >> this map was taken from some of the earlier preliminary engineering drawings, which had geary in the concept stage. at that time we didn't know if

it would be a connection to the subway or a b.r.t. this man shows that potential. >> all right. >> but it is not part of the program now. >> i understand that. great next idea though. and the stations, the connection between powell street and union state stations will be at subground level so someone can walk from station to station? >> no connection at the platform. >> are there still plans for moving side walks? >> we actually abandoned those ideas about two years ago when the cost of the moving sidewalks became an issue. when we went through our risk mitigation program -- f.t.a. has a risk program you go

through where you take a look at enhanced elements and what they would cost. when we went through that, we threw it out because of the huge cost. >> another item we need to follow up with this because this has come from the public in terms of the length of time of transfer from our platform to the bart system. carter, i don't know if you have that in front of you, but i want to make sure we give you as much as we can in terms of potential issues. that was hot button a few years ago. >> we are not talking about a major league distance. >> maybe not for you and i? >> but it's about a block's worth of distance? >> yes. where someone of my age would ben at this time from moving sidewalks. >> and you are the one who threw it out, >> and you are not going to be