committee that meets every month that is made up of representatives that are going to be utilizing the new transit center. we are currently soliciting applications for new members on that committee. we have a 24 hour hot line that anyone can call at any time if they have a question or concern about anything happening at that moment on the site. a member of our construction team is there to respond. if the response is insufficient, then we are able to respond the next day. we also do a 10-day construction outlook that anyone can sign up through our web site. this talks they today about the construction activities and also talks about any changes to traffic flow, detours inside what closures.

we have implemented a new quarterly newsletter here yet we want to highlight the progress we are making, specifically in the form of major milestones. we are sending this to all of our supporters and the federal and state agencies we work with, neighbors around the site. all of you are on the list what we highlighted in that it was the completion of the demolition work. 55,000 hours of labor without any accidents or injuries. that is something we're very proud of. in addition to the regular mechanisms we have in place, we work with the consultants to be generating media coverage that will raise awareness about what the new transit center will mean that for our city, region, state. also about the milestones that we have reached. we also want to take the media

opportunities to talk about what the media project will eventually be. the archaeology exhibit that opened in december got substantial media coverage. we had a story in "the chronicle." we had a story that was picked up internationally. it was picked up in "the huffington post." just to quickly highlight some of the milestones we emphasized in the community are reached this year, we mentioned archaeology, the completion of the above grade demolition work, the extensive utility relocation that was completed in 2011. and we also had an event with the mayor. we also talked about the

progress made on the transit center. in 2012 we will continue all of our our reach to our neighbors. we want them to be aware of things like subterranean the demolition work that will continue that will create vibrations. we want neighbors to know that is coming. we will continue our monthly at reach meetings, citizen advisory meetings. we will continue to work on our media out reach. we take very seriously their responsibility that we have to educate the public about everything the new transit center will be, the fact that it will be a national model for transit-oriented development. the ability to bring an amtrak

eventually, bringing in high- speed rail when it is ready. and the buses that will serve 35,000 each day. we want to make sure the public is aware with that, i will turn things over to sarah, our cfo. >> good morning, directors. sarah gillatie. i know we have time constraints, so if your questions afterwards, i will be happy to answer them we continue to focus on the numbers since the inception of our project. we have awarded nearly $208 million in contracts.

today we have paid out over 100 million. 20% of our prime contractors are certified small businesses. over half of our subcontractors are small businesses. the next slide shows our goals and payments for each fiscal year since we started the program. you can see the payment number has continued to go up each year, as well as in most years our awarded percentage is going up. we will continue to put a lot of effort in this area, contractor meetings to give networking opportunities to meet with prime. we will continue to set aside work as is appropriate. and moving on to funding, our

funding accomplishments and 2011, we received three grants for state and federal securities funds they are passing through for us. week received a rail line relocation grant. -- we received a rail line relocation grant. we have announced we will receive one. 21.24 grant for environmental work. >> could you go over the block 6/7 proposal with the circumstance that redevelopment cannot pay and to read continue. >> it might be most appropriate for mike to come up, but i know the plan is to transfer them over to tpga.

they would take over negotiations and contracts. >> we were paying the redevelopment agency for staff time to renegotiate the development agreements on the state-owned parcel, with the exception of a parcel t and f. where we are now is mike advised of the winning bidders to hang in there while the city creates a successor entity. it will take action. the idea is for transbay authority to continue the work that redevelop it was doing. we would negotiate with the read developer of block 6 and 7. we would then put up the bids for the subsequent parts. and supervisor kim: my understanding is we would not be able to bond against the tax

agreement for block 6 and 7. i was wondering -- >> we were not going to bond for block 6 and 7. affordable housing will be the issue. it is going to depend on whether the director finances at the state level grants us money we need to do affordable housing, otherwise it could potentially be a market-only property. that is not in our hands. that is in the state's hand at this point in time. supervisor kim: ok, we will talk later about that. to go we're following the mandate. we would love to see the affordable housing, but without the money that the redevelopment agency was using to help fund it, that is an issue. that will require the help of the city to get the state to help us with that.

it is not just us, is all of the projects in the city. >> good morning. mike risso from the soon to be eliminated redevelopment agency. there has been a bill introduced in the legislature sponsored by gerald steinberg that will designate all of the low and moderate income housing fund as unenforceable obligation, which would mean there would be at least a large portion of the funds available for the successor entity. for that reason, i think there is still a lot of discussion going on about whether or not it makes sense to facilitate the development we and talking about to transfer the parcels. we're still looking at that. this happened very quickly, and i do not think we know exactly what the ultimate vehicle will be to get the persalts

developed. we do know the city will control the parcels and the tax increment will flow to the transit center, but the exact process we have not figured out yet. in terms of housing, i think the bill that has been introduced in the legislature would be a big step towards protecting the affordable housing funds, but it would not be the whole answer. >> as i understand it, part of the central stated intent of the governor is to eliminate funding for affordable housing. certainly i spent months of 2011 as various part of coalitions trying to stop from happening what happened, and it was communicated in no uncertain terms that eliminating funding

was not an unintended consequence, it was the goal. i would be very surprised if the governor signs the bill. that said, i have been as surprised allot in the past year. i would think we should not count on that. and but i guess it is not the is not tpga to figure this out. i do not know what we do. supervisor kim: thank you. >>director ortiz: i hope that my people are showing up to support there'll steinbedarrel steinbe'.

we are definitely supporting it. >> the slide show at the funding plan for phase one has remained stable. the have not been any change in for the funding commitments at this time. in we understand that tighter for applications will be due in 2012. we will pursue funding for either bus storage or bus ramps under that program. there are two more state security grants that would pass through to us. we just submitted a grant application of the federal highway transportation

community and that a highway program. sockewe have our applications id we will keep you posted on the award when it comes out. and with that, i will turn it over to brian to wrap up. >> one slide. what i hope to tell you and expect to tell you this time next year, all the relocation work will be finished over and closed out. we will breathe a sigh of relief frankly. zone 1 into will be all the way to the bottom and in storing the microfibrils to hold the concrete blocks because we're

below water level. the first and fremont streets will be complete. some three and four, which is basically from first street to deal streetbealle stretet, we we finished on that. we will have the below-grade structure and above-grade structure packages awarded. and we will have the bus storage in the bus clamp bridge construction contracts out to bid this time next year. any questions? >> to questions. -- two questions. if i am putting together all the different slides in terms of

time winds, it looks like the building design will be at 100 percent signed this march. it looks like building construction as our starting out -- is not starting for a couple of years. and basically because we are doing a cmgc, we have the ability to award an individual packages rather than one huge one. in some of them may not start work for a year or so, but there is a long time of fabrication that especially steel work. we need to get that particular package out. we want to make quite certain by this time next year we have bid and received packages. it is not just an estimate, now

we know where we are. >> thanks. the other larger point, looking at the funding plan and seeing the 2.6 needed for phase 2 that we still have 1.9 or nearly 2 billion of tbd and given the larger dynamics with regard to high-speed rail, i am wondering if we should have a broader conversation here about what is happening with high-speed rail and what the impacts are for this project, what the more and that the outlook for phase 2 funding and how these things relate? just like the redevelopment dissolution was the internal inject that change our assessment if high-speed rail were not to continue as planned,

that would change the context and assumptions under which the project is moving forward. >> with all due respect, that would not change the assumption. senator feinstein is working very hard to preserve the 3 billion that the federal government awarded to the state of california. she, along with nancy pelosi and senator feinstein are working closely with the governor at making sure that happens. having said that, the high-speed rail project is a very long- term project. high-speed authority was first looking to target the central valley as the initial segment. they are still undergoing environmental review on all components. that is when to take some time. and -- going to take some time

our project is designed under state and local law to accommodate a future extension to the east bay. it is also designed to accommodate and track to southern california. -- amtrak to southern california. as you know this is only 8 billion or 9 billion for the entire state of california. 950 million was going to other projects of that connect light speed rail. we were not going to get the money we needed from that pot of money. the 400 billion we a gone from the federal government is committed to the project. we have contracts. and the real money is we are looking at to fund the cities to

ouare u starts. we have talked about being next in line to qualify for new start. it will take a collective approach in the support of the city and county of san francisco to help us in those efforts, because as you know, to build a new rail extension you need a new start. that is the only large funding pot you can go to. there are numerous states where the city has more than one that new start in the pipeline. so we are looking at new starts now actively as a source. we are exploring a number of other options which will not materialize until after the presidential election other

categories such as funding for intermodal facilities across the country. in order to raise the 2 billion, and the mayor has been very supportive that he is going to work very closely to help fund the hon -- fund. he is been very supportive. now the central subway will beginning the money soon. i think the next logical project would be the real extension. -- rail extension. we are mandated by as they and local law to do that. -- by stae and local law to do that. director ortiz: we are designing that with high-speed in mind, correct?

if for some reason the high- speed rail were to go away, can we switch to accommodate amtrak and the other things you are talking about? >> we would say this, for example right now the project has -- in order for that to happen we will need a clear direction from the president of the united states that he were no longer going for high-speed rail. a practice like this takes years to build. assuming we had a clear direction that it is not going to ever happen, and i remind everyone that politicians come and go, political parties and come and go, so it is always important to keep in mind you have to think for the long a-te. assuming what you're saying were

to happen, we could phase of things. right now that is exactly what we are doing. the links of the platforms. -- the lengths of the clot forms for example. 1,300 ft lengths for example. what we need for amtrak comes in now. i also want to point out and remind of the board when you hear commentary about should we build the station, given what is happening to high-speed rail, the station is not just mandated to be accommodate high-speed, a number of bus operations from a number of counties.

it is also going to accommodate high-speed. i want to remind everyone that the agreement we have with the state department of transportation that transfer the land to the city and county of san francisco that is allowing the city to build a new community requires the terminal be built and have the buses in operation by a date certain. it never said anything about rail. commentaries that are made regarding having a bust-only facility, we have received a number of calls from people that are concerned about, it's like that, because for many years many members of the public had to take buses into facilities that was an adequate, and safe and had a number of problems. they do not understand what people who ride buses are not entitled to a beautiful station

here yen so i just wanted to point out that you wanted to say something. >> we have to figure i have to pay for extending to help traic. that is the next heavy lift. this terminal has been designed in the right way to accommodate that, more than to accommodate it. the fact that we're doing the excavation got in some ways the most difficult part done already, but we have our work cut out for us. i am looking forward to focusing

more on that over time. >> now i would like steve and to give the construction update. >> good morning, directors. i'm with turner construction. construction management oversight. another good month of work, even considering the days people were off for the holidays. no recordable four incidents in the past 30 days. does to give you the overview scheduled at a typical show you, we are all done with the trenching. we are well into the buttress work and now starting excavations. let me show you some of that. the demolition of the foundation of the existing terminal of the original terminal is in green. we're down to the first level of excavation in the blue area. they have set that area up. i will show you pictures for installation of precincts.

the purple area still represents the buttress work that continues. that is home fzone four. we did accomplish several more but tourist shops during the month of december. there are 207 total shops. right now we of completed 36 as of last week. 37 is being poured as we speak. 38 is scheduled to be poured tomorrow. this is shots of the butcher's wor buttress work is similar to what you've seen before. there has been substantial changes on the west end. and you can see the trucks on the ramp leading the project and the excavation work at the far west end. you will notice the pile of

stored material has changed from the beams for the shoring wall to the pin pleyepile tubes. so the demolition and excavation is going on in zones 1 and 2 in the west end. we continue to work on foundations in the zone to area where the old transportation center was. there is completed excavation at the far west end. the shoring wall is basically the west end of the project. that has been set up as a fabrication area. just a couple more shots of the excavation getting done.

archaeology work continues. archaeologists are working closely with the contractors, which we appreciate them teaming up and recovery more and more artifacts. there is another pretty they uncovered in the materials they found over the past 30 days. the utility relocation packages are for all intensive purposes complete. the street has now been restored at the 400 block of howard behind it. that is back in full operation. phase two so we can do traffic bridges is well underway and should be complete. pg&e is already working on pulling in the new feeders on the forestry area. we started these two

infrastructure on fremont street. -- phase two infrastructure on fremont street. construction numbers have not changed for the past month and neither has the emphasis of the schedule. the critical path runs through the package, which is well underway at this time, and the next critical phase will be the separate packages. 183,000 hours still holding near 70 percent mark on the labor. here is distribution of local labor. happy to answer questions. supervisor kim: really appreciate the breakdown. any other questions? item number 5 is complete. i do believe that completes the