so colleagues can with he approve those without recommendations >> item 13 recommendations of the k prop this is an action item. >> good morning. i realized i should have had chester present this. i want to say this is a big item i'll keep that brief. it's one the core functions of the transportation authority only updated every four years. i have a quick presentation followed by quick presentations by 4 of the major capital projects. so this item begins in your packet on page 85 by you have

some power points before you also on the web. this is the heart the meat of the prop k strategic plan, which projects have how much money in each of the years. i'm going to go through this starting on page 3 of the presentation. why is the prop k strategic plan in the programs plans important. the primary mechanism is by the public board and the committee is responsible for the projects to decide which projects get funded when we it provides a good process you'll see why some

projects made it and some doesn't. the project sponsors can make reasonable decisions on the funding. on the upside at any time about stashing a strong pipeline. the other federal and state money is available. having prop k sales tax is available makes things happen. very quickly proposition k is this is what was approved by the voters it's the expenditure plan it has thirty years caps for street and main projects like central subway. it's what the voters approved.

it's the regional funding. and i am not going to get detailed you can see the bulk of the project is mostly good projects like replacing vehicles and there's a little bit of money for that he had money and a few major capitals like the main drive project as well as on the transit side. there's the transit muni project that provides half of the service funding. prop k says who can apply for fund and there's a couple of remittance. it requires specifically that we

develop a strategic plan our day-to-day plan. and it requires the advisory committee that there be 5 year plans to be adopted. before we would issue calls for projects on the board and staff wouldn't know what project were coming down the pipe. so this is the plan it's highlighted in red was in the strategic plan. there are policies for how we run the project and we're not proposing any change boos but those i call good fiscal management let's try to manage depth. and the other teaming elements are revenues, fooeft the sales

tax revenues over the thirty year program but the overwhelming bulk has to do with each project and the fund for every year. and this is the one we update this ever four years it's time to match the transportation fund so we're making sure we are matching those programs up. ongoing so here's what we're doing today two easy slides. the process of the 5 process we can't do without the project sponsors or sponsors. we call that an administrative progress. we're looking at the past four years and adding into the plan

actual financing costs and seeing where we stand. we're looking at all the allocations where the board has approved and checking in to see that our schedules still make sense. we're moving funds forward and reducing financing. the second part is yptd the programming for the trans par. those promotions don't have a 5 year prioritization project. when do they need the money and same as the transit project.

we won't have a presentation on the t third progs presentation i will notice that jackie sax mentioned that some of those are grandfather projects. we see the two projects for the cash available project. this slide if you can't read the numbers shows for all expect the last two years the sales tax receipts the equalization fees the key thing is that sales tax is available. and actually we're projecting for 13 and $1488 million which will be the highest sales tax revenue. this next slide is about projections for the next year's. we have a 4.5 percent lead way

the blue tier is the mta had done some sales tax rates it was pretty low but difference we thought it would be prudent and it landed in the middle so we're reviking it down. you can see in the let's go box what this does is we're down about $150 million in sales tax revenue over the thirty years roughly arthritis about two years total revenues projected. don't get alarmed at the detail on here. we have a complicated model you push one thing here but i told

you that revenues are down a little bit but because projects have come in at a slower rate because finance costs have been repressed that means that revenues are down we have additional fund for some things but the prop k funds liv let me explain that the line items programs or projects have to carry their own finance costs. we had about 5 projects when prop k was put together all this projects were going to move forward and that would have been in the 5 year timeframe but if that had of happened we wouldn't have the funds. so if you advance those funds we

take that out of the line female so we're basically giving that money back to the projects. i'm on page 15. this is what we did to lower costs there are mentioned a couple of grandfather projects it's a carryover being grandfathered so in terms of adjusting the subway programming and this is the bay resource we pushed the funding out and this reduces the project >> thank you for using x graphics on your slide as well (laughter) >> and here's the listly the bottom line on page 16 i know i'm being kind of funny but this

is good news because of the lower finance costs we'll be able to put an additional thirty million and this doesn't hurt anyone else. and about 27 million more that's about 2.5 more years of service in the mid 20s it will end. i'll stop right there. you can go through this appendix d but appendix g shows you how much money in financial costs. the only information are for those major capital projects. i'll ask our sponsors to come up and give a quick presentation. i'll give us a status or instead

of that i'll give you the two difference. i want you and the public to know we've updated our website and there's a good snapshot on our we are talking about. we're providing this committee with the written reports on the status of all capital projects and on the agenda we provided the specific presentation but first, we're planning on doing this in september at the committee meeting. real quickly you can see the order that we're going to do this presentation in. and again two or three quick things. the first presentation will be for the capital projects on the doyle drive and when we approved the 2009 the eir had just been

certified in 2008 and thank to working with the mayor's office we have a hundred million more for the projects that were under construction and phase one is open as of last year so the public has a facility. and the government just passed a legislation for the partnerships. and thanks to a lot of hardworking cpcs we have the phase two under construction. i think it's very unlikely that phase two wouldn't be under construction now. the subway our second presentation will be from the sfmta we adopted the amendment and the amendment was concurrent

on providing the series of thanks that the mta had to do to receive a grant from the fta and that funding has been received from the oversight prospective we have the risk managements for the project and to get the alternative funding that the authority had commented to the promise but they're not going to be in time because of the budget. the 3rd of the figure out presentation is very quickly this project since it was in hibernation in 2009 but in 2012 was the high-speed rail and

you're familiar with that mo e was the early investment project for high-speed rail with the signal system has allowed funds to flow to the cal tarantula project. we have a million and 50 some thousand dollars for o from prop k and we're working with the mayor's office office to come up with 39 million. and last but not least the downtown extension to the downtown terminal is being built in two-phases phase one is $1.89 million. when we started phase one was in the downtown extension. there's been a lot of progress

in terms of the benefits that we've had that are two scope to enable the underground structure for the future downtown extension. and this is i should add intended to be the official high-speed rail in addition to housing the downtown extension. the project is having some funny challenges and not significant with the commissioner who sits on that adopted the revised budget that increased the project to $10 million plus and to reduce the financing costs and identify other funding sources. there is about a $200 million funding gap and we're continuing to work with the folks. it is very probable that we're

shifting some of the funds from phase one to phase two. $20 million is small compared to the price of the project but this action will indirect $40 million to the project and we've got other funds from last month. i would conclude that the phase two this is where we were in 2009. we're in hibernation at this point and we need to sit down with the mayor's office and see how we want to proceed with the project. all the major projects are ♪ form of construction. i'd like to answer any questions, however, i have the sponsored here on a tight time clock >> it would be great to start the presentation. >> gum i'm lee i'm the deputy

director for the capital project. i've be providing a brief update on the project. very quickly to cover the scope of the project and funding of phase one and phase two. some summary information on the damage small business and workforce program and any questions the committee might have. as maria mentioned phase one is being done actually was done as a traditional design project and for substantial completion and in 2012 phase two is a partnership to end the

construction to be complete in 2015. the funding is for both phases, phase one capital costs was around $500 million and phase two was specifically lower and it's interesting to note that the actual mount of construction in phase two is greater than the amount in phase one so this is relative to the private partnership of procurement. we did begin construction in 2009. this is a record 11 months from the time the document was certified which was pretty phenomenal and the service safety in april of 2012 when the

sdpour was opened. phase one and two of the construction this is over the calvary area approaching golden gate bridge. this was when the traffic was shifted and prior to opening the detour the new tunnel. this was for the presidio parkway. the contract was with regard to the bird and almost followed immediately by a lawsuit. it went it's way through the legal system and reaching the california supreme court in 2011 that awe affirmed the t-3 was the appropriate way to do this.

financial closed a few months later and the construction to be complete in 2015. some photos of the demolition work that constitute a lot of what's going on the relocation of the historic properties to clear a way for construction. a photograph of a concrete machine this is strengthening the land to appropriate adequate foundation support and this will be the completed project. the advantage business program for the city of parkway accomplished a a number of innovations. during the phase one there were a lot of workshops held to advertise the project and the small advantaged community and to create what we began

referring to as speed dating opportunity for bringing in major contractors and small businesses to work arrangements among themselves. it led to what constitutes from an extraordinary participation by small disadvantaged businesses to a tune of more than $30 million which is 3 times that is typical for a project of this size. under the phase two private partnership we were be able to bring some partnership to bear. the air is to create a work plan for not only small disadvantaged businesses but ignore employment. we've entered into a memoranda of understanding of city billed it is underway.

this is the golds of 5 periods of time disadvantaged plaintiff's businesses and 5 percent so to 0 come of the local market and 24 had been replaced >> so it's a 50 percent local hiring. >> 50 percent of all imply hires is to be for this project. i'm happy to a answer any questions >> colleague any questions and the public, private partnership this is the first time we've used this and it streamlines and moves it forward quickly. >> it's the first time we've fuse in california. i'd say from the right project the ppp can be both efficient and provided early capital funding that might not be otherwise available. their track intensive and not

appropriate for smaller projects >> thank you and we have the gentleman from the mta that seems the biggest project here. >> good morning commissioners. sherman i'm the program director and pleased to report its subway is fully funded and under construction >> before you this slide is basically depicting the existing t line. introducing much faster traffic time through the downtown corridor and the capacity along the obsolete corridors in the city. in terms of provided you with a brief project update. the first tunnel machine is in

the phase and the tunnel construction is estimated to be this friday. the second machine has arrived and being currently assembled in the lunch box. the bids have been opened on the 21st of may and those precede so all the contracts that will construct the central subway have been award and those have been award for all construction work necessary to bring the project to service. to provide you with some updates regarding some future work if we go to palace work we have a new retrieve process to begin shortly within the next week. it's currently going through the

permitting phase. the station construction the contractor is currently assembling all of his presubmittal construction. the first two phases are the chinatown station and the moscone station. the stations take about 5 years to construct with and they'll be completed in the year of 2018 and revenue service will begin in 20019. similar to other projects we've got a number of small business outreach meeting too many for me to count with the consent of bringing small businesses and introducing them to the community. i'm pleased to report that over half of the work that was done

in the area has gone to small businesses. and on the construction side approximately 25 percent of the hard construction work has gone to the small business community. showing an overall percentage about thirty percent of all the work that is necessary to design and construct the central project has been awarded to small business entities. and that completes my presentation. thank you >> thank you questions colleagues? thank you. and next, we have casey from cal train >> hi i'm here to provide a brief overview of the cal train

station. the cal train corridor involves converting 0 our system to diesel. this slide highlights some of our key partnership details. in order to have a successful partnership we had to share with the corridor we can articulate what that vision is it's not a 4 separated project its a two-track position and we're share the corridor. this reduce costs and community impact. our commitment to the system has been captured in several eardrums. you'll see we're with the resemble funding and that's supports the blended system.

it recreational mo u adopted the incremental process there are 3 components there are the advanced signal system and electric indication is the poles and the electronic trains. it's a $5 billion project and we have a d b e s b e goal we have just recently given the ss c a. we expect to have the rails in service by 20019 and all future investments are yet to be determined we still have needs. this slide highlights some of the key benefits. a couple of of things of note the environmental impacts with

electrical systems will reduce greenhouse gas and other eagles with the electric indication we'll reduce the substance. here's a couple of pictures of the electrical if i did system and finally here's at the timeline so show you where we're at. it's birth control down in the signal we hope to have it finished in a few years. we're in the environmental process and we expect to have a draft out in the wurnt with a final approved in fall of 2018. we expect to have the project approved. that's a