>> but i agree with director harper. it would be very difficult for us to question that and how to lower that amount. i think it important to get that loan structure. i think it's very important to get that revenue. i'm not sure about the option of private fund raising. i'm not sure of how much of reality that is. my experience with what we've seen

with the america's cup event is not very strong. i know these are two different types of projects. i think it maybe very challenging. the park is a good option and maybe that's another place that the board can be thoughtful is in terms of thinking about what capital funds would be and private funds and promote to the public. i think that would be a great plan to go into. last three things. i agree with the board. i think that land sales were expected to be a part of the revenue for phase two i agree that i think it's a great

example of our project that has experience increased cost as moving forward with time. i think it's something that we should be expecting. as much we can say whatever within phase two of the budget is important and not pouring that into phase one. >> last two things, i'm wondering if this board should approve the in accrues -- increase to legal services. i'm wondering if staff should just live within the budget. i understand cost of legal fees and and i'm just wondering about these cost. i under the

reserve for the board of reserves. and that approval would come from the board. i no e that most would come to the board due to the size of the contracts that are given. i think that given the fact that we have not identified all of the revenue for this cost increase, i would feel better that we have somewhat control over the the contingencies. are there anymore comments before we open for public comment? >> i'm happy to bring the reserves to you for your review. on the legal fees i have concern because the project is very complex. it's not a typical project and there are a lot of issues involving many things, claims, real

estate, development, etc. i can let debra speak it to if you would like in why it's prudent to keep that amount in. >> the tjpa has a legal bench that includes council that is available for the pla. over the last 10 years. the transbay joint powers has managed the budget and we -- i believe every year have remained within that budget. i think this is separate to look forward that we are now heavy in construction what kinds of issues or concerns may come

before the agency and to prepare for those and be able to respond to those. even if this board were to approve the recommended program budget would still continue to improve the annual budget every year including the line item and to make considerations at that time as you see what issues are before the agency. >> as you see that coming back to you getting your opinions, thoughts, guidance. you could also come back evident to show you the budget line item. i would be happy to have you raise it. i think we need to keep the same amount that we've had in the past 10 years. we've never exceeded our budget. we are very prudent and very careful. council, the rates are much lower than you would get in the market. >> okay. director harper and metcalf? >> i no e that years ago when

we started out almost all the legal fees went to the county of san francisco for attorneys. what percentage now that we have a bench, is san francisco still pull down a lot? >> i don't know the answer to that. sarah maybe able to respond on how things are shifted between the work flow between the city attorneys office. >> i don't know if you were with us when we did the last bench legal contract. it was noted in the draft report. she had been assigned to our project and received a promotion. we are not able to receive the same support with the city of san francisco office. >> it's all independent? >> yeah. >> i would like to -- i don't

know if we are able to move, based on hearing this, i would like to adopt this that the draw down come to the board. >> that's a great idea. happy to do that. >> okay. great, we have a motion and second, but we have to hear public comment on this. >> you have a number of members that want to address you. if they can lineup, i will start reading off names. joseph scott. please come up when your name is called. >> good morning, my name is joseph scott, i represent the union in san francisco. we urge you to pass this budget. thank you very much.

>> thank you. >> andrew brooks, share of the advisory committee. we have been as you have been briefed by staff on this budget. we are your laymans committee. we are not experts on budgets analysis. we do understand the cost of steel has risen dramatically. our concern is that this project move, and there is in phase from a user standpoint that is essential to move forward, one is the bus story that is waiting to move forward and staff has told us and we fully expect that the increase amount in contingencies and reserves from phase one will not all be used and we certainly hope and would

wish that the at least $100 million to be moved. we should be send money from phase one to phase two and should be from reserve contingencies. i don't think that staff has shown us that that reserve amount needs to be spent at a level of a hundred percent. >> thank you and thank you for serving on our citizen's advisory committee. it might be helpful if you lineup on one side of the room. >> hello, my business is based here in san francisco. a program manager for the webcor

yab -- i want to talk about small and disadvantages business. we have fantastic businesses. of the 53 percent of the lower bidders contract are from san francisco and 53 percent are also disadvantaged enterprises. also i want to note that neighbors to our north which is a better known business and we have xkt which is a manufacturing business in ireland and they are located in a hub zone to the disadvantaged district. the numbers are great, but they manifest themselves in the small disadvantaged businesses. this is a great support for the business community and for the budget. thank you. >> good morning, tja board.

thanks for giving me the opportunity to speak this morning. i started business in 1919 by my grandfather in san francisco at 720 florida street the house he was born and died in, in 98. this contract would mean a lot to our company which employs 20 teamster members. this contract would allow us to utilize local and small and disadvantaged businesses. the economic impact goes well

beyond just our company. this is not possible without a budget. so we echo our support for the tjpa pass the budget that the staff has put forward. thank you very much. >> thank you. >> good morning board of directors. i'm with the san francisco office. yesterday i was at an event where i got to hear from kaplan about unprecedented challenges. i think just two 1/2 years ago we in the construction and design industry were sitting in our offices and looking outside to the dark clouds, no one could

have predicted that where we would be in 2 years from then. i think needless to say you can drive around san francisco and look the number of contemporaneous -- cranes and the number of projects on in the next few years in the bay area has been fortunate. unfortunately, despite the fact that it's good for us in the economy and employment, i think the contingency and escalation are very prudent. i really support that. thanks. >> thank you. >> madam chair, members of the board. my name is kevin wagner, i represent ers as a member of the team. what i want to say is

that our team has worked very closely with the tja staff and we feel this is a prudent budget. the project reserves and contingencies that are represented in that budget i believe are the appropriate amount based on the position of the project and the amount of time left for construction in the actual project itself. i'm very glad to hear that there is not any interest in delaying the approval of this budget because any delays in the project at this stage are sure to cost this project millions of dollars. so i'm very glad to hear that the intention of the board is to move forward with this. also want you to know that the entire team has spent countless hours of reviewing the alternatives in this budget to make certain we have presented to the community a project that is responsible.

that we've looked at in in terms of not only the actual project cost itself, but also the long-term impact on the operations of the facility itself. also i want to talk in terms of the project and the original vision. i think there was some initial conversation about potentially delaying the park or the bus storage facility. this all has an impact on the long use of the project and the overall characteristics of it itself. i'm a community member, i'm very close to this project. my daughter and i walk 32 -- through this project all the time. >> thank you.

>> good morning, directors, tjpa staff. i'm the principal of a small company, we specialize in quality assurance, quality control services, with disadvantage business enterprise located in san francisco in the mission district. we are pleased to say that our friends was one of the firms listed on the bids steel package. this contract means a great deal to our firm and we absolute support of the package for the tjpa staff has put forward. this you for putting forward this amazing project.

>> i'm here with my husband mica. i too want to underscore my support for the phase one budget for the transit center.