presentation. i would ask staff to please come forward. > good morning, a share, commissioners. i will be presenting this item. very briefly, we have the central subway. this was done in september. we are expecting a letter from the fta later this year, possibly this month. february, 2011, and as you heard earlier of the funding agreement by the end of next year, the agreement structure will begin shortly thereafter.

the early construction phase is all the work that gets done before the full funding agreement. it has two utilities' contracts, utilities boarding contracts with three different notices to proceed. two take place during the early construction phase. this early construction phase has a budget of $112 million. the contract for utilities location is under way. basically it is for relocating utilities around the station.

that project is now 90% complete. construction started in january of this year and should complete in january of the following year. there were no prop k funds in this particular contract. here are some pictures of the progress of this contract. harrison street, clementine and utilities for location to. this contract has a scope for relocation on union square. reroute to the 45 union conduct system. it has a small business enterprise goal of 20%.

we have some good news on this as we were talking about earlier with cost savings. construction management bid $16.8 million as opposed to the budget of 22.6 million. right now the mta is in the process of certifying the contract. taking it to the board in december. the construction is scheduled to start in january. what remains of early construction, this is not part of the allocation request, but for the letter from december we will have the advertisements coming in february, completing

this in september of 2012. if a location requires an amendment, we will reprogram our $6.7 million from the right of way phase to the early construction phase. the reason that we are doing this is the m.t.a. decided to use other sources of funding for the right of way phase. there for these funds became available for the utility's contracts. there are some special conditions on this contract allocation. the first one is that the allocation is up to $22.6 million. once the contract is finalized and awarded, the mta will

obligate the surface funds are around $6 million. also that the mta will provide additional funds with delayed expenditures to the extent possible which, as usual, with most of our locations there is the condition that the authority is included in all of the meetings. that completes the presentation. i am open to questions. any questions -- supervisor campos: thank you. any questions? we welcome -- we will open this to public comment. >> savenuni.com. backup plans are needed for this

project besides the financial backer of plans. we all recognize the republican congress'attitudes, which may be vindictive, very political. they are looking at challenging high-speed rail. certainly, large infrastructure projects will be threatened. the state's transportation cutbacks are started to be -- starting to be translated down words into the local increasingly more. in its january 2010 letter we were written to, saying that the central subway project is a very high risk project. having seen many of this type, they have stated that the local agencies must cover all cost overruns of the project.

we need back up plans for that. the central subway project has already risen in cost. a project, in our minds, has a very serious conflict with the writers who needs in the near future. the own mta reports the deferred investment within the system of which $663 million is required to replace an aging fleet of 205 motor corp. -- motor coaches and charley -- trolleys. as we have seen, the computer system, trolly failures, the delays are mounting. within the next month, within

the next year, the munis system and writers will lose surface increasingly. the logic that you have in eight years, we will have a system that will benefit the city immensely. even if that were true, which it is not, in the near term riders will have no solution to their failing service. rising fares. service cutbacks. the design of the system, if one were to look at it seriously -- and we have a lot of technical information -- the design does not make sense. it disconnects the system from the market street corridor. it does not connect to the station. supervisor campos: thank you very much. next speaker, please.

next speaker. >> yes, good morning, supervisors. i am a member of savemuni.com. our white paper was given out at a press conference last week. at that press conference a rather radical idea was brought up. which was that the federal money, if it does not come through, there could be a request to allocate it to one of the other projects. he did not deny that this was a possibility. i have not heard it brought out today. suggesting that if we did not take the money here, it would go to florida. he also agreed that he would meet to take the subject

further. i would like you, commissioners, to ask the transit authority and mta to put that into the future discussions. it does not sound very optimistic, getting the $370 million. it would be a shame if that federal money went someplace else. i am sure that you have all heard about that mayor in the east that gave federal money back and abandoned the entire project. supervisor campos: next speaker, please. >> good morning, supervisors. resident of district 3. including chinatown and north beach. we really need this project in chinatown.

we are desperate for better transportation. saying that money can go to other places, 10 years ago we mentioned to the supervisor -- why not spend $10 million on 10 bus lines? we all know, as the supervisor reaffirmed this morning, a new start money can only go to new starts. which is what this is. so, that is flogging a dead horse. there is a boarding machines in nevada on a project that has been stalled. maybe we could get it from the federal government. thank you. supervisor campos: thank you very much. next speaker, please.

>> could morning. as you just heard, there are different perceptions about whether or not this will help or hurt chinatown. my reasons for thinking it will help neither are very well laid out in the white paper that you have copies of. so, i will not get into those reasons the day. i was glad to hear the director makes some of our arguments about the things that need to be done. i am extremely pleased with the ideas you have presented. i will give you a few scenarios that have not been mentioned. the operating and maintenance costs say that this will save muni 3.8 $1 million every year. we have tried every year to get back up for that number.

they absolutely, totally, steadfastly refused to provide any backup for that operating and maintenance cost estimate. so, that is a problem. there are 76,400 hours that will be cut out. about 40% of the day's service, roughly. the people out there do not know about that yet, so will you be able to take those hours out? maybe, maybe not. but if you cannot, that is another kick to the operating costs. federal money has now become the target. the merits of the project do not matter anymore. what really matters is getting that federal money. as we said before, we know what the republicans will do in january. they say they learned their lesson back in washington and that they will stop issuing careless pork.

this is a prime example of a poorly conceived projects that they may very well target. there is a huge risk if you stay with this project without a plan b, you might lose that money. as we all know, there are stiff requirements in lesley rogers letter and so far i see no evidence that it can be met legitimately. state money, as we have heard, is also in some question. $137 million, where will that come from without adversely affecting the rest of muni? if you have to raise that additional money without affecting the rest. and finding the override. right now inflation is flat and the costs are good, but who knows what will happen in a few years. you have hundreds of millions of dollars to find.

supervisor campos: thank you very much. net speaker, please. >> good morning. i am speaking on behalf of myself. i have a question. it was mentioned in the ways that the funding gap could be closed, taking money from other muni capital projects and finding more funds for those in the future. i would be curious to know what those projects are that the funds would be transferred from and whether or not funding could be obtained and transferred to those projects. thank you. supervisor campos: thank you very much. next speaker, please. >> this morning you have heard about a lot of scrambling to get a lot of capital. while i do share the concern that this capital will come from a central tied project that mean he cannot afford, that will

harm all of the writers, what we have not heard anything about is the additional operating costs. we have heard of projections that are not supported, but that is not true. you will have to operate a system below ground and above ground. people will get on in the marina and that will not want to transfer in a few stops. maybe some of those that get on and we're going to transfer any ways to third street by transferred early -- might transfer early. you cannot afford those kinds of double costs. these operating costs. we really have to get ahead, sam bell, to deal with the operating costs. the other thing, commissioner

talked-about the finger pointing. we wanted to see this sniping and finger-pointing. all of this open washing of the dirty laundry in public. we hope that it helps everyone overall. i think that the worst part will be the operating function. that it will hurt everyone in long run. we do not want to get to $2 fairs years before we have to. this is what we are talking about. this money could be used for all of the rapid transit lines. we have been talking about fixing up the 28. these things take a little bit of cash with reduced operating costs. that is the kind of thing that we should be doing. there is so much ego, so much

concern over this project. writing in the bus or on the rail, we must ride together. but you have to worry about that. supervisor campos: thank you. and the other members of the public that would like to speak? seeing no one, public comment is closed. we have a motion on the table as made by commissioner of the los -- avalos to continue this into next week. could we get a second from the commissioner? colleagues, could we take that without objection? we are simply asking staff and transportation authority, the mayor's office and any one that should be at the table to make sure that we work together between now and then to provide as much specificity without help

me get to the finish line. it was noted during public comment that there was a sense of reassessment in this project. that is not what i heard today. we all remain committed and the reassessment is some late in how we get to achieving full funding. with respect to item number five, colleagues, could we get a motion to approve the recommended allocation? motion that and seconded. we but take that without objection -- we will take that without objection. madam clerk, by the member 7. recommend allocation of $460,000 in prop k funds, with conditions, to the san francisco municipal transportation agency for two projects and $3,334,653, with conditions, to the peninsula corridor joint powers board for six projects, and appropriation of $20,000 for the bayview hunters point mobility solutions study, subject to the

attached fiscal year cash flow distribution schedules, and amendment of the strategic plan and the caltrain capital improvement program and caltrain guideways 5-year prioritization programs. >> good morning, mr. chair. committee members. i will do the quickest presentation possible on these items and have my planning staff work on the last item, the mobility study. thank you. so, this item that i am presenting, two requests for mta. tell train will be called for the rest of the presentation. the first request is for phase two of the rehabilitation project to rehabilitate 22 escalators of the 28 currently in the system. this would be a match for the design phase of the project.

we would be providing $300,000 to match federal section funds. beginning in january of 2011, completed by 2012. we did fund the construction engineer report phase in december. the next request is for construction of two biplanes. one of them is 1.4 miles in both directions from bay shore boulevard. the second bicycle lane project goes for [unintelligible] these are for what we consider the last two bike lanes. should be completed by july of 2011. $274,000 is the full budget.

$160,000 will be provided by crop said. $74,000 will be provided by the regional transportation fund for clean air program. the next request for the fiscal year cut the budget, a request that we see every year. upgrades to the vehicle stations and tracks. signals that go into the details. $3.3 million. just to give you a little bit of background on the request, negotiated every year by the partners, the main agencies responsible for the capital funding. passed in 2003 we identified four categories to offset the

responsibility. we have been doing that every year since then. compared to what was requested in the difference, you can see in each category that what was requested was much higher. to restructure their programming and them that, the first goal was to maintain consistency on the strategic plan in terms of finance costs and eligibility. so, we came up with a two- pronged solution. the first is to allocate about 50% of their vehicle programs this year. $1.8 million, they only needed 50% in this fiscal year.

the rest will be allocated in the following fiscal year. we also had to do finance neutral strategic plan amendment, including the advancement of funds from the capital improvement category. about $160,000 in funds. a highly leveraged program as it stands now. without into the category, $176,000 costs to push the funding out, thereby offsetting the cost to caltrans as a whole. maintaining eligibility for cash

flow needs. jesse taylor will come out to give a presentation on the bayview project. i will be able to answer questions afterwards. let's thank you. i will leave the one side up there. if you have any questions, just ask me. the plan was approved in june of this year. with the support of the commissioner's office, we will fund a focused study to work in partnership with the community. this appropriation request is to provide the local match. we are excited about getting under way. >> that you very much. supervisor campos: any

questions? is there any public comment? seeing no one, public comment disclosed. could we have a motion? we will take that without objection. could we now please call item no. 8. >> item #8, recommend adoption of a resolution of local support for the authority's climate initiatives program innovative grant projects. >> good morning. this is a request for the resolution of two regional fund program clinographs received in the amount of $1.7 million for a city car sheridan electric vehicle project. the other is what we are calling an integrated transportation demand management project. city car sharing and the other

electric vehicle pilot project. if this grant program is a regional program sponsored by the climate initiatives program. $31 million total in san francisco received about $14 million in total for their other projects, but today's request is to satisfy local support for the projects have the authority that lead for the fiscal agent. without any questions, the item is on page 7 of your packet. supervisor campos: questions, colleagues? no questions. is there any member of the public that wishes to speak? seeing no one, public comment is closed. do we have support of these local climate initiative programs?

we can take that without objection. madam clerk, please call item no. 9. >> information item, presentation of new items. supervisor mirkarimi: is there any member of the public that would like to speak? any new items? seeing no one, public comment is closed. >> item #10, public comment. supervisor mirkarimi: seeing no one, public comment is closed. please call item no. 11. >> item number 11, adjournment. supervisor campos: we are adjourned. thank you very much.