city of san francisco that are wonderful gifts to the community. i was going make an offer and a suggestion because individuals in the community would like to contribute to the park but they don't know where the needs are. the federal communications commission has low-level broadcast station availables, frequencies that are available for short-term broadcasting. if one of those would be taken and utilized by parks and rec to announce four contributors to the parks and rec for clean-up volunteers for equipment volunteers for the types of things that if the community knew about and had the opportunity to contribute money, time, or resources that they could possibly do. but part of the issue is they don't really know what's going on in parks and rec.

a short-term broadcast station that was assigned to the needs of parks and reck that anyone could pick up on any radio that those who would like to make contributions to the park to actually call a number that is listed and have an opportunity to distribute what's needed. thank you. president buell: thank you. good idea. >> is there any other comment under the general manager's report. seeing none, we are on item number nine. at this time members of the public may address the commission on things that are on the general public commission. is there anyone that would like to make comment. if so, please come forward. >> i have a procedural question. we had a number of letters that

i know about -- there might have been more submitted about when the agenda was published and today's meetsing about the water treatment and golden gate park. i was wondering what is the next procedure? will the public have access to these letters. and i have copies but i don't know if they're related to the other agenda. president buell: we'll take your question. >> thank you very much. >> steve courier from the resident's association. this is not a park thing but it is a park thing.

one of the pictures came out and it was this structure. the structure was built in 1915. there were 10 of these little parks built around the city. and they were to showcase the ex-position, the rebuilt of san francisco from the earthquake. on the corner you can't see it but it was vacant but it was built as the first safeway in san francisco. we've been begging for a park in this wide median. and ed ripken, the manager of -- director of d.p.w. at our holiday party two years ago. and we were joking about welcome to grandma's own park. since he started his pavement to park product we have now -- the dedication is on saturday at 11:00. and we've got the first permanent pavement to park in san francisco where the four

other ones were temporary permit. so i'm inviting you -- and i know gloria, you live in the neighborhood and we would love to see you. but this is a dream come true of mine and i'm very proud of what we've done. president buell: congratulations. >> is there any other general public comment? seeing none, public comment is closed and we are on item number 10, which is commissioner's matters. as reminder this item is allowed to have commissioners issues that should be raised at future meeting. >> can we put events like this pavement to parks item on our website on short notice so that people know about it? >> that what? >> we can have it up for tomorrow. >> great. thank you. >> is there any public comment on this item? seeing none, public comment is closed. number 11 is new business

agenda setting. any public comments? public comment is closed. item 12 is communication. commissioners? any public comment under communications? public comment is closed. we're on item 13 which is adjournment. are >> moved and seconded. >> all those in favor? >> aye. >> so moved. there is really, only one boy... one girl... one tree...

one forest... one ocean... one mountain... one sky... and one simple way to care for it all. please visit earthshare.org and learn how the world's leading environmental groups are working together under one name. earth share. one environment... commissioner chu: good morning. welcome to a special meeting of

the transportation authority plans and programs committee. madam car, please call item two. >> update on the financial plan for the san francisco municipal transportation agency's central subway project. this is an information item. commissioner chu: this was an item that we heard last week and we asked for an update. >> this is an item that was continued from last week. i am continued -- happy to say that we have worked with sfmta staff over the past week. i am about to introduce the central manager for the central subway project to show you a presentation that shows you our attempt to close the funding gap as well as an overall context and where regard to the road map of getting the full funding

grant agreement from the transportation administration. >> good morning, supervisors, my name is john, the central subway program manager. i'm also joined by mr. carter wrote hand, the director of construction. they have reviewed this briefing that i'm about to give you. before i start the presentation, i want to provide you with a bit of context in terms of how the financial plan fits into the over all sfga process. i will highlight some of the accomplishments that the mta has achieved in meeting some of the ssga roadmap deliverable. i will discuss the fund's utilize to close the funding gap

to fully fund the cap and then the next tax. >the central subway is currently on track to achieving a full funding grant agreement. the sfta process began with the final approval dated january 7 of this year and continues with monthly meetings fta washington and region 9 staff, along with tsa staff, and it continues to meet and satisfy all the obligations under the ssga road map process. submitted must and that we achieved on november 19 where the project received approval for the letter of no prejudice that would allow us to move forward with the utility relocation contract in the union square area. this is an significant milestone which allows for the federal

authorization of an early construction activity. identified before you are the remaining sfga some metals necessary on schedule to receive the $942 million in federal funding. a key milestone in the application is a submission of an updated financial plan, which is scheduled for february 15 of 2011, that identifies the funds committed to this $1.58 billion project. the sfmta is now moving forward with revisions to the central subway financial plan in order to meet the ssga obligation. the central subway financial plan is comprised of federal, state, and local funding sources, as outlined on this slide. the great majority of the funds have already been committed, and

they are highlighted in yellow. as you can see, there is a remaining federal obligation of aid and its $69.7 million. that is the remaining fund that would be authorized under the full grant agreement. what is currently shown is the $137 million funding gap which is part of today's discussion. earlier this year, sfmta convened a mind the gap committee, which was comprised of members of the sfcta, mayor's office, and others to explore a number of the funding options we are about to present to you today. this slide show the proposed capital funds committed to fully fund the program. only capital programs are -- funds are being used to fund the central subway program. no operating funds are being utilized for the central subway

program. the alliance structure of the funds used to fill the remaining gaps of the funds are used here. $31 million in prop k, $32 million in problem be. the combination of these funds, along with a projected savings from current capital projects are what is identified as a solution for closing the remaining funding gap for the central subway program. as a maximum -- since central subway have received the maximum allocation under prop k, as you can see, the items identified under kapor reprogramming, a number of projects would require the reprogramming of prop k and sfmta, along with the sfcta will be working on a reprogramming efforts that will start immediately and conclude prior to the submission of the financial plan in february of next year.

a $34 million in prop 1a is part of the $61 million state funds for high-speed rail. one of the conditions of that funding was connectivity. central subway provides a direct link to caltrain and imposed high speed rail station at fourth and townsend. earlier this year in march, we put in a programming request to the california transportation commission for $27 million, and we were approved by the ctc to move forward with $27 million of the $61 million. a $31 million represents the balance of that funding source. prop1b, there is $78 million left in the program listed as uncommitted. 72.3 of that $70 million of and committed funding will be

allocated to the central subway program. we have been receiving $9 million in savings from this been climate for project phase one, so we will be looking at reprogramming that prop k effort back to central subway. phase two, we recently received federal allocations that allows us to unallocate some of the funds for islais creek. geneva can be project, that project is in close out, $1.2 million in savings for that effort that would be allocated to the central subway project. finally, the its radius system replacement program.

there will be some lower-cost program that will be allocated back. some of the lower priority options are like a digital, visual announce the system for cards, along with using their radio system as a means of mapping out the yards. these are lower party options that will be deferred. commissioner campos: commissioner dufty? commissioner dufty: what does that mean, lower priority option. can you go more into what you mean with its? lower priority? i do not know what that means. >> the radius system project is a replacement program read the agency will replace its motorola system with a modern, upgraded system, as mandated. we will be replacing the radio system by 2012. commissioner dufty: and this is

a large project? >> it is a large project, essentially replacing all the radio systems within the fleet. we are currently operating under a 1970's-based system. that said, the base effort of that program is fully funded and there are some out-year options that our options in the contract that are listed as whether or not -- sort of enhancements -- to the system. if the agency would like to move forward and assign those options to the program. $10 million was assigned to this option effort. because of the deferment of these options, it will not have an effect on the overall delivery of river systems. the agency is proposing to move

forward to defer some of these lower priority out year options to central subway. commissioner dufty: is this something that is future, down the road? >> it is currently approved under prop k under the radio replacement project. before you is the proposed central financial plan showing the additional capital funding, and demonstrating a fully funded central subway financial plan. as you can see in yellow, under committed, $29.5 million currently assigned under local, regional, other. that is the pool of funding that will be working with the sfcta

to reprogram. identified here are the actual project expenditure needs for the program. the expenditure needs are shown in light blue, so you can see the expenditure begins in fiscal year 10, 11, and concludes in 2017 through 2020. what is highlighted in dark blue on the top, beginning in fiscal year 2013, is when we will be spending the money we are committing today to close the 1 and $37 million gap. the first spending need for the 137 will be in fiscal year 12, 13, 4 $38.7 million. as you can see, it is proportioned out for the next seven years.

concerning cost, central subway is fortunate to take advantage of a competitive bidding environment and has realized $8.5 million in savings for its second contract, contract 1251, that we are about to award on december 7. we also anticipate receiving approximately another $10 million in savings to our largest contract that we are planning on issuing for bid in the first quarter, february 2011. at this stage in product development, fta requires cost savings be carried in the program as program contingency. the mta is also controlling cost through its utilization of what is known as a contingency

management program -- commissioner chu: just to clarify, you commented that cost savings must be carried as contingencies. would you are saying is, even if we are realizing cost savings, as we are seeing with $8.5 million, hypothetically, the $10 million coming up in the second quarter of 2011, we cannot count those toward reducing the project cost, we just have to put into a contingency bucket at a later point in time? >> that is right. the plan allows us to reduce our contingency levels for the program. further to the point, currently, the program carries $300 million in program contingency. that is part of the $1.58 billion program. this is not allocated, not assigned to any effort in the program, besides program contingency. in the management plan, there

are seven intermediate milestones. if the agency meets those milestones, those contingency levels will be reduced, and a radically, it could go down to zero in 2018, when we finish the program. the effort, as outlined in the risk management plan and contingency management plan, is that when the program matures, levels will drop, and when those contingency levels are essentially freed a by the fta kroger, how -- program, the agency will be able to reprogram those funds back into the capital program. commissioner chu: so the current $300 million that exists in plans, to the extent that we have additional savings, that would add on top of that contingency? so for example, the 18.5? >> exactly. commissioner chu: and as you

meet different milestones, by the end of the project, this contingency balances can be reduced? >> yes, requirements will be lowered, and so the surplus funds, the agency will have the chance to reprogram that money. commissioner chu: so the point i am taking away, the project we have right now, 1.57, that could be down -- brought down in terms of cost savings, but we are not ready to reflect that in the numbers until we meet milestones, until the contingency is released. >> thanexactly. commissioner campos: commissioner david chiu? commissioner chiu: i just wanted to clarify a couple of things. i know we continue to get questions about this from constituents, some of which are here. the overall project is one.

$1.578 billion, and the local contribution is only about 10%? >> right, there is a three-to- one benefit for every local dollar invested in federal allocation. >> i know i get a lot of e-mails from constituents assuming that the city is spending $1.6 billion, and it is a portent to make that point. the gap you have been trying to close is a wonder $37 million gap. $100 million of that will come from state bond money is. -- $137 billion gap. we did not otherwise count on that state but monebond money cs that correct? >> yes, that is correct.

commissioner chiu: other pieces coming from savings from current projects. the question i have is, is this money that otherwise would have been used -- will there be more products delayed as a result of the use of this money? it was not counted on for other projects, right? >> going back to -- currently, the agency, under prop1a, has a balance of $137 million where it can reprogram the funds to a project, and the

requirement for that bond fund is that it shows connectivity to high-speed rail. the agency decided to utilize central subway as a way to demonstrate that connectivity. under proper 1b, $78 million of the uncommitted current bond allocations, uncommitted to any capital program, so 72.3 would be allocated to central subway, leaving under 6,000,004 other programs. that said, under prop 1b, the agency has also allocated $6 million to other projects other than the central subway, like the rehab program, and the metro east facility, geneva canopy project. motor coach rehab, white motor

overhaul -- light motor or halt. so there are other producing the prop 1b funding. commissioner campos: so what is the answer to the question, whether or not the use of this money comes to the expense of other projects? is the answer no, is that what i am hearing? >> out of the prop 1b effort, the agency is assigned it capital funding level. central subway is its number-one priority, and with that number one priority, has garnered a lion's share of that. but there are other programs benefiting from prop 1b. commissioner chu: what you are saying, in terms of the $72 million, that does not come from taking it away from another project that has already been allocated. it was previously unallocated

money and is going toward this current priority. commissioner campos: i think that clarifies it. thank you. >> now, the sfmta needs partners to time of the allocation of these funds, primarily we are asking for advocacy, identification of the prop 1a bond funds in the state budget, so that we can put in a program request for the $34 million. also, for a time allocation of the issuance of the prop1b funds.

along with our partners, we will keep as a dig to you board resolutions considering -- presenting you for resolution is considering an advocacy for state and federal funding partners. these resolutions will help us two fold in helping push forward allocations of prop 1a and 1b bond funds that are subject to state process, and also as a demonstration to the government, the city of san francisco is fully supportive man behind the central subway program in order to garner approval of the full funding grant agreement projected in november of next year. in closing, to provide you with some of the benefits of the program, central subway will become the most active realigned in the system.

it will have a projected ridership of over 20% of any other line in our system when it is fully operational. it will provide a much-needed vital and downtown link to underserved neighborhoods and will connect areas in the city that are currently experiencing dramatic growth. central subway will also lower our future operating budget impacts, introduce $1 billion into our local economy, creating thousands of local employment opportunities. also, it represents an unprecedented three-to-one return of federal dollars for every dollar invested of our local dollars. a big thank you goes out to all of our stakeholders, partners for working with us, to close the projects remaining funding gap. we will continue to work closely with our founding partners and the s.f.