act park included in the water front use plan and then we went out with the bon want voters were aware that these would be a source that the bond would support that park and we are proposing issues of 2.2 million for phase two and 8 million from the operating funds and 7.3 will be repaid by a passenger facility charge and this is a per head charge that we would assess on passengers. san diego and seattle have both put in p s c's to retain very many and so it's anywhere between two and $6 per head and it depends on the life that we want the repayment between nine and 30 whereas ask so the lower the charge, the locker the fee and the lower the charge the higher the fee and so we also have phase $26.6 million

and we are increasing any and are able to use mark port for these because we have increased our spending for one and say it's for half a million dollars and so in total we have 31.4 million for phase two. and throughout this process, we have tried to keep the cost down but it is a big project with many components including the park and ground transportation and the improvement and is so it costs what it costs but we have set any kind of engineering to -- underline the operations and we have also looked to bring in other sources besides powter sources as you will see in the details of staff report we are at about 60 pmpt 4 million of port source and is proposing our share to 70% of the project and so we have be successful in

sharing the cost with other source and is so with the identified resources. we still have a budget short of about $4.2 million and we are looking at several ways to reduce that shortfall and we are continuing to explore the passenger facility charge because it's such a good time for borrowing and interest rates are so low and it gets us a little bit more and so we are looking at that and we are also looking at environmentle grants and into our own capital budget for ongoing pieces of the budget and et cetera and we will continue to look for valuing enjoying opportunities. >> so you will see in much more detail, the financing for this project when we come to you that the request issue get and i just wanted to the project approvals before you today

allow for the contracts to increase accordingly but we will be before you again for much more review prior to the financing the phase go and i'm here to answer any questions. >> imthank you can i have a motion second. >> is there any public comment? seeing none, any questions? comments? >> yep, just brief, i would like to say that when gavin put the committee together the advisory committee to talk about the cruise terminal i happen to be selected to be on that committee and i was not sure if this day was ever going to come but i run up and down this water front everyday and it didn't look like it was going to happen but it's going to happen and i

want to thank everyone who worked really hard and i was down at pier 35 and saw the congestion and everything and saw the facility and the cruise companies that come here to a san francisco -- how can we not have a world class -- this is a world class city how can we not have a world class cruise term mal and i look forward to going with the maritime guys down to florida to meet the cruise companies and we want to double the amount of passengerrers coming down here and there is something like 200,000 people here that came to the port of fran and i can clearly see and use the -- to reach a half a million and i'm very supportive of this and like i said, i never thought this day would come but it's going to happen and i'm very supportive. >>

okay search excited about the new cruise terminal but i don't know if questioner excited about the cost. definitely excited about the new cruise terminal. and just trying to understand the numbers and looking at the proms limits for phase two and the change between what was approved and what is being requested today is free much million? is 43 million and i know you discuss the may be 11 million? i don't know if we discussed the whole 43 million and where the costs are and why it's so much. okay. >> i'll take up the 43.254 million is the estimate for the phase two budget. i think why the costs are so high, i would ask kim to give more details, i think that it's a combination of the large site,

the cost of reconstruction, and the maritime improves required for the operation and then having many other parts including security a very robust security program, major public access improvemnt and is a two and-a-half acre park and it's all of those thing that get you a hundred and senior and 11 million-dollar project and so that is my answer for why it's so expensive. >> okay so am i reading this bronchbecause the request is for one 25 million. >> yes can you describe why it's more than the actual budget? yeah, when we came back i think last time we were up here in front of the port commission, one of the other projects came into be on our contract. that

was the american's cup infrastructure improves on some of the other pier and is that is $14.7 million. so when we come back to talk about the increase for turner, we have to consider that it's on top of that 14 million although it's not for this project. so, there are contract gets increased because this amount is in there. >> okay so the change for the cruise terminal about the proposed 82 million but when we approved the 82 million didn't we take this into consideration? no phase two was really just an estimate at the time and so no work and other than the phase two --. >> so it was an estimate yeah and so other than

the phase two it gets very complex and you have up with the project a very long time and the work and phase in phase one. design work included the phase two drawings because they were developed at the same time. so, in the phase two, we are not including the design fee for new drawings. . >> okay so the additional 40 is going towards.. ? issue wish i have had of the able -- page nine. four table a she is talking about the 39 tpt p.7 increase in

turner's acts and the 49 million increase in d p contract and so 43 million total for the three contracts that has changed in the authorization. . okay so we are talk about the cruise terminal 37.000000 and so if you go back to table two on page four of your report, at the top, we have broken this down as best as we can by system. which gives you the total of $36 million. and then on top of that, there is a contingency of 10%. of such that is 3.6 million and so that should total up to 39-point p$.7 million

did you take the plaza into consideration at all during phase one? no. so the table on phase one is who of approved by contract to date ask so since we have identified funding for phase one that is all that has been approved and so the table in page six and ask what the contracts need to change but but not necessarily what the estimates have changed by does that make sense? so we are always praying successfully that the park can be funded from the joe bonds and so we have never had approved expend tours accept for the money we spend designing it and working through the b.c. b d retirements for the permanent which were not cheap, that makes sense. we are trying we did a great job of giving everything that we know in the

department but it gets confusing really fast. >> thank you and so for the design team contract and l b e goal of 15%,th that is now at 44.6% which, is absolutely wonderful but what dollar amount is that on is that on the 1.9? is that or the -- it's on the phase one dollar amount. which, is 9.9? >> and that is great. thank you. that is a wonderful wonderful achievementism have and then under of the c m g c contract. okay so c m g c is running a little bit behind our goal and we have got about 12 and-a-half% l b participation and this is based on invoices, provided to us which lag at least 30 days behind and the

fun end of project had small specialties like structural steal as we move forward we are getting into less specialized work and so our estimate for november when we get the bills and and everything we make an official l b it should be about 18 perts p%. >> you answered my question, thank you. a lot of focus on that question. you are going to be happy happy happy at the end, right kim? and then i think most of my questions have been answered but one correct this if i'm on wrong but it looks like really the changes in both of the phase one budget and also, it was phase two, very little is actually due to change orders.

is that correct? phase one is one our 10% change order allowance. >> okay that is impressive too. you were very lucky with the phase one timing and to move a couple items forward and phase two as you know the market is on fire. any other questions? this is great that you so much all in favor-aye. resolution 12 in this action, 129797 and 1298 have been approved. >> thank you. >> item 13 new business. any public comment on new business? anybody have a new business for me? yeah? no? real quickly i know it's been a long day madame chair on

this cruise terminal it has already been out the operator r rfp it's out now and due early february, i think. so what happens is the port staff and maritime they interview the different operator and is then they come back here to the board with recommendation and so we will establish a selection and panel which will include some internal staff and a lot of sternal folks based on the score of of r f q's we will come up with a selection for oral interviews all of which is over seen by the human right commission and then formerlily to your point, we will come back to the commission with a recommendation for the highest ranked firm. >> okay what i would like if you could possibly bring back two names, i think that would be good and i would like to have them come so that the commissioners we can talk it hem and sometimes we give them one

but i would like two operators that are good that we can talk too i would like to do that. okay hopefully we are going to have that many hopefully more i don't that is good i hope you have ten but when you make the recommendations i would like there to be two. >> okay i'm still holding my breath. will do is there any other new business ...? public comment is there any public comment? seeing none. to reconvene and close session. i move man where is many? do we need many? are you ready? yeah. move that we reconvene in open session, second

all in favor? aye and move that we not disclose-second. all in favor aye and move that we adjourn in memory of francis alwrote oh, steve chew john tell at a wallet tear newman. second may they rest in pees. meeting adjourned at 713 prime minister. merry christmas and happy new year.

>> good morning and welcome to the regular transbay joint powers authority board of supervisors' meeting for thursday, december 13th and happy holidays to everybody. may we take roll call please. >> prior to taking roll i will note for the record that director sartipi has a scheduling conflict and will not be present today. director lloyd? >> present. >> director metcalf? >> present. >> director reiskin. >> present. >> vice-chair ortiz? >> present. >> and chair kim? >> present. >> madame chair you have a quorum. >> thank you. do you have any communications this morning? >> none that i'm aware of. >> is there any new or old business from the board of directors? seeing none let's move on to the executive director's report. >> good morning everyone. i would like to begin my report

this morning on this last board meeting of the year by dedicating our board meeting in the memory of mike nevin, who recently left us. mike was one of our founding board members way back when we created the transbay joint powers authority and was very supportive over the years. he served as our first chairperson and was there with us in the initial years of moving the project forward. mike was a member of the caltrain board of directors and also a former san mateo county supervisor, mayor of daly city and san francisco police inspector and not only served on our board, but numerous other regional transportation boards and we'll always be appreciative to mike for all of his work in the area of transportation, as well as his commitment for those in need. we extend our sympathies to mike and his family. i would also like to thank director reiskin, because a few board meetings ago director reiskin suspected that

suggested that we look into that and found it's viable and could save us money and we modeled after the department of public works and caltrans regulations, allowing for savings during the bid submission and bidders will be encouraged to submit their value engineering proposals that will decrease the bid price, construction cost and if a proposal is accepted the savings attributable to that value engineering proposed are subtracted from the bidder's bid price making their bid price more competitive and improving the likelihood of approval of the work. we'll realize 100% of the savings with the bidders value engineering proposal. during construction trade subcontractors will be encouraged to submit these proposals and after deducting

costs incurred in the proposal, a trade subcontractor in the tjpa will share a 50/50 basis a shared savings. so thank you director for that suggestion and we'll implement that moving forward. >> great. >> now i would like to ask sarah to present our quarterly financial reports. >> good morning directors. these are your standard quarterly reports begining with a budget to actual report for the 1st quarter of this fiscal year. and indicating that everything is within budget so far. a contract status report showing dbe participation and amounts authorized and spent on each contract and at this point, we are at -- through the federal fiscal year period that we're in we're at 14% dbe awarded and 21% sbe actual.

the third report is our investment and earnings interest report and we continue to earn interest in our participation in the city treasurer's pool. we have a small amount of u.s. treasury notes in our trust account with landfill proceeds and we continue to have an interest-free bank account, so that we don't pay fees for the most part on the bank account. the fourth report is the inception to-date. i am happy to answer questions from directors. >> any questions from directors? >> i just want to commend you all on the safety performance under this construction contract. it is pretty heavy, significant, complex work and the fact that you have continued to go through without issue. i don't know how much is attributable to being a jpla,

but it's really phenomenal. it's a good model for everyone. one question on the financial report. where is the contingency for the overall project contingency tract and where would we be able to see that? >> we could start bringing you a report that shows the overall project budget. this is just the fiscal year budget. so it's just a slice of our best estimate of the overall capital budget that we anticipated to spend in this fiscal year. we don't budget for contingency. there is contingency built into each line item, so we have looked at our cash flow, what we plan to spend on engineering and design, for instance and built in a contingency amount to come up with the budget amount we brought to you for approval. but we don't have contingency as a separate line item in the fiscal budget. >> there is a small reserve item, but what i didn't see and

i didn't see it, i don't think, in the project report that we're going to see later either. where that contingency is and relative to how it's been drawn-down. >> we can definitely bring a report that shows that, but again, that is overall project budget. so this inception to-date is showing expenditures and revenues and if we're using contingency, it would be -- it would have been converted into a particular expenditure. so it would be engineering and design or construction or what not. it wouldn't be -- we wouldn't spend it as contingency. >> right. >> we would have transfered it to another line item and spent it. >> if there is a way to get visibility on how it gets drawn-down, that would be helpful. >> no problem. >> thank you. >> great. and now directors, we have our last presentation of the year on our quarterly project labor agreement report by bob beck.

>> thank you, board members. bob beck with tjpa to give an update on the pla progress in the last quarter. last month we had our quarterly meeting with the trade unions. so this represents now one full-year since we first approved the pla. and we had updates on upcoming trade packages to make sure that the unions are informed of work that is coming down the pipeline. sorry, wrong mic. as well as reports on the progress that webcor has made in working with the veterans organizations in the bay area and we'll have ted wang from webcor come up and speak to that in a few minutes.

as well as the work as the unions have done with tech 21 and local schools. so there has been a lot of good progress made on that front and there continues to be no work shortage issues or other impediments to our project. and we had no reportable incidents in safety in the last month. in terms of trade packages as you know at the last board meeting or the october board meeting we awarded the substructure package. $120 million on that package and the slide says the bids are due january 10th. we do through the question from bidders process have requests to extend that bid date and we're evaluating those as we speak. so that is likely to be that -- that date is likely to be changed to give bidders additional time to prepare their submittals.

>> how many prospective bidders are there? >> what is that? >> how many prospective bidders are there? >> five. >> that is great. >> in terms of working with the schools, we're having communication and preparation for this summer's program. there is a new coordinator, or new coordinators with the san francisco unified school district. and the school district is in the process of identifying potential candidates that they will refer to tjpa and other employers. i mentioned that our interns in the past have had a great deal of success working on our project and have been very positive experience for them, preparing for college and moving into other activities. and we were featured by the national academy foundation in two of their recent publications, and the brochure

you see three of our interns from the summer of 2011 with their mentors from the tjpa and project control staff. so we had very positive feedback from national academy foundation looking to tjpa as a model for the internship programs that we have been participating with in san francisco unified. i will ask ted to come up and talk about his efforts on the veterans program. i'm sorry, one more slide on the efforts of the unions reported at our last board meetings with their efforts with san francisco unified. the carpenter's union is certifying the tech 21 program as a pre-apprenticeship program. and the building trades council is looking at other trades that may be able to certify

pre-apprenticeship programs as well. so that is really good news and with that i will ask ted to come up. >> hi my name is ted wong with webcor obayashi. we had two engineers being guest lectures at the technology part of tech 21. so they already had their presentations earlier this month. i was going to give you an update on our collective veterans hiring effort. i'm happy to say that we have two of our founding members in the room with us, manny flores and paula ressa of the carpenter's union. back in april we commenced a veteran's hiring steering committee, if you will, to look at issues of veterans geting

into the construction field. we subsequently had two working group meetings with alameda workforce investment board, representatives, the edd there, as well as the carpenters' union and city build, as well as mission hiring hall. and what we came up with was essentially we found out that you needed to connect the dots with veterans hiring and a lot of organizations are out there working to support veterans, but nobody is really talking to each other and they are trying to individually reach out to employers and not really in a cohesive fashion. with unions and companies and cbos we needed to develop a more cohesive hiring process and that is what we worked on. we had a success story working closely with the carpenter's union, where we have two returning veterans, i think from