working there's all the risk is shared and it worked very very well and extreme familiar with how that works ask them about the new engineering contract then take it from there. thank you. >> thank you. any other public comment on this item? >> seeing none we'll move on to regular public comment and this is for matters that are not on today's calendar. >> correct and jim patrick would like to address on this item as well. >> so seeing no members of the public that would like to speak we'll move onto our regular calendar. >> item number 7 authorizing webcor/obayashi as the lowest responsible bidder for the bus

ramps package and increasing the construction services by -- >> good morning directors here to talk about trade group package 18.1 bus ramps the basic scope of the bus ramps essentially replaces what used to be the old bus ramp that went into the old transbay terminal goes off where the west approach starting from the left to the right and enters into the transit center a big difference from the previous loop it was pretty much a unit directal way in and out of the old terminal the major

difference is starting on the left where the west approach finished there was a spur that was left so you take the fremont off ramp that's where buses today will knock that barrier off and add an extension to that and the bridge number going over harris on and also through that area at the southern end of the project is more of a traditional box girder structure and as you get through that loop which is for functional ity that's all box girder as well as you move towards the transit center itself the whole bus ramp is 1800 feet a third of a mile that's only just a couple of a

hundred feet longer than the transit center itself so it may feel very long but it's the same as the building so with that the final factor or the component of it is that the one at the far right of this facility it's the cable stay structure which now i show on this slide what's going to be going over howard street the last few hundred feet. you will see that the support structure in the middle called a pylon is essentially if you can picture you know the train box has a curve to it at the west end as you go towards second street that pylon and foundation are just outside of where that train box is so this particular bridge has to span all the way from that train box all the way over into the where the bus deck is now the important component of that too is that the bus deck and

transit center building itself cannot take a load you can not have a box girder structure that can rest on it so there's certain factors that were built into that so how you got to a cable stay kind of project so with that the bus ramp basically a summary budget 40.4 and following up in the previous conversation this is an exact example of the design contingency of the budget at the time had 38.7 million due to seismic safety you know review committees and impacts on hinges and various design components that were incorporated after the original budget that's why there's an additional 1.7 million in design contingency as as part

of the 40.4. >> prequalified bidders we prequalified 7 bidders and ultimately received five with a range of 57.2 million to 82.7 so i'm going to breakdown this table there's a lot there. at the top i show each of the bidders each of the 5 bidders along the top and along the left column is where i'm going to breakdown the various components built into this bid and the staff expands but also want to reiterate that this was an a plus b contract a being a component that's basically a contractor's base bid and the b component is the number of working days and in the contract when we put out the bid we allow them to have a range so that they can't bid 10

days and they can't bid a thousand days it's roughly within the ballpark of what's been allocated and that's to allow the ingenuity of the contractors to set their schedule if this doesn't work with the rest of the transit projects because they are too inter laced among the contractors so you can see it aligns on the working days column shimmick did -- the base bids i'll address those as well the base bids i'll start with were 57 million and 175 thousand $57,175,056 and i'll focus just on the numbers for shimmics they had an a item and as part of this process we

also had a ve and as part of the bid they were allowed 2 weeks prior to the bid to submit proposals that could be accepted or not accepted at the time of bid and they would be utilized as part of the bid selection process so that was so we had an a plus b kind of contract and value engineering so the contractors would submit 2 weeks prior to the bid and 8 were submitted one was accepted and the various components of the ve proposals were anything from bridge type changes and grade steel changes from 60-grade to 80-grade some of them were changing piles even some were trying to change the foundation for the pylon itself which is a pile that handles

the loads of that particular grade or even trying to raise tip on on on on some of the elevations and that was included in the bid selection process what happens with that number there we assigned previously we've assigned $2,500 a day for bid selection purposes it would be a reasonable amount of a b value that would be to use in bid selection only just the 1 million the 1 million and 252 $1,252,500 is not part of their bid it's part of the bid selection process only if that makes sense but it allows you to analyze the bids in a level

playing field depending on the days that they have proposed. and then on top of that the ve that was accepted by shimmick they also assigned 10 days saving so that takes 25 thousand at $2,500 a day off of their bid selection so that gets you to that the bolded line for bid selection purposes only that's the only place you will see these numbers because when we go forward with the actual award recommendation and actual award itself you will not see those numbers because you will not actually use the b value numbers when you do your award recommendations so when you accounted for the a plus b the days the ve's that were all accepted that's where shimmick was the low bid of 57 million

deeming them the apparent low bidder at this point in addition to that i'd call this a below the line bid we had part of the list that has been preapproved that would be attached to that where the contractors were to assign a dollar value in this particular case it's accent lighting on the cable structure there was only one particular on this one we asked the bidders not part of your bid but for this particular scope would you also have a deduct and this has been one of the other components of that. and in this particular case the bid that we received from shim mick was a credit and with that value we felt it was very appropriate to take that value engineering at that point with

that deduct ive alternative so before i leave the slide i'll bring you back to the upper left . that ve proposal scope was to give you an if you are on the cable stray bridge you got the pylon in the middle you have got the various cables that go into the main pylon. for design it basically attaches the cables on either side attach right into the pylon itself what shimmick proposed was to put a saddle

system that would go through we went through the seismic safety analysis of that and the engineer of record went through this and we were able to accept that one so that was the 500 thousand and the deductive alternative the accent lighting for 450 thousand so now this is how we get to the proposed award number. we accepted the deduct alternative of the accent lighting that's how you get to the award number. as part of our analysis we looked at why the number was above the estimate and initial engineers estimates the cable stray is a

unique structure it's a pylon structure requires specialized piles and it's on this particular in shimmick's package they have bencor a barrett pile is a rectangular pile it's not cased it's a hydro mill kind of process under slur ye as they go down to bed rock of course goes into bed rocktenn feet which is approximately 200 feet down down in our location. as they go down they end up -- so it's a very unique system but it's required due to the loads and

requirement for the structure and also if you didn't put a baret foundation in then you would have many many many piles with the cost analysis that the engineer of record did was this was the best foundation put in for this kind of structure so at this point the recommendation that the team behind me -- i've brought the engineer of record with me kevin clinch and i also have the project manager with me and turner and webcore and myself and the trade package is on a critical path and the scope of work doesn't lend to anymore ve's but there are the group and shimmick has proven this i think we have a unique situation as part of this award

recommendations where shimmick is building the train box and doing the above grade concrete so there's a coordination effort right where the cable stay structure and train box itself when it goes over it the cable stray structure does require temporary foundations to keep it in place and they do interface with the train box and it's recommended very well for shimmick. >> i was just going to ask if there's any comments or questions from board members on this item. >> i think it was a great report and i'd be ready to move approval i just want to commend the staff for including a ve process and having deduct ive process and this is how incrementally we'll get the

best value even though this is quite a bit over where we hoped to be i think it's a good outcome and i'd move the item. >> so we have a motion and a second. >> is that the 50 percent that's shared? >> it's being prebid it's total. >> thank you. >> thank you. so thank you for the detailed presentation and also the written report was incredibly helpful in understanding the process and why the cost is over but the process that was done to mitigate it to bring it down so i really appreciate all the details that went into that. >> any members of the public. >> harper aye that's five ayes and item 7 is approved.

>> item number 8 is a presentation of and public hearing for draft year capital budget in an amount and draft fiscal year operating budget in an amount not to exceed. . >> sara giloti just to remind you of our annual fiscal budget process typically we'd bring a narrative budget outlook to you in april so may we present a draft budget we'll take, comments any questions and the fiscal year budget is just our estimate for the upcoming fiscal year slice of the overall program budget as you heard extensively this morning managing the project to the

overall budget so this is an estimate of what is spent in the upcoming year starting july 1st it's approximately 321 million there will be some changes in the final budget that we bring to you. the concept of operations rfq contract rfp contract that's on your agenda later this morning the cash flow information for that contract was not available at the time of contract preparation so that's in addition to the final budget that you will see and we're also working with our partners at the sfcpa to keep the downtown extension engineering team under contract for on call work they are continuing to support the supplemental and environmental working with high speed rail and cal train so has

agreed to accelerate and specifically as well you will see 360 thousand in the to be identified revenue section and that's related to an estimate for work on the part of par son's engineering team to work with the city on the rail yard and i 280 boulevard study and strategizing with us as to funding sources and at this time that appears in the revenue to be identified section. >> just backing up a little bit -- as you all remember, we are a very lien staff so this is

largely a consultant and construction budget nearly 98 percent of the budget is for professional and specialized services of that nearly 90 percent is for construction and construction management activities and salaries and administration again revenues are divided into committed which is grants already in place largely encumbered and roll over to next year and planned is revenues that are in process or will be allocated in the coming year including we have a $43 million prop k allocation request that's in in process that's at their cac later this month and we also understand that ac transit their board is considering

increasing their capital contribution next year so we appreciate that so i'll transition over to the operations budget which is proposed to be 4.7 million that's largely funded by an rm 2 operating grant we receive each year from mtc you may notice in the operations budget that ac transit is not planning to make a contribution to the operating reserve this year but instead increasing their capital contribution and we're supportive of that strategy and also in june we'll come to you with an amendment to this years operating budget. they are requesting that we use this years operating contingency and there's not an operating contingency proposed but you

see a larger amount proposed for ac transit expenses. with that i'm happy to answer any questions. >> i guess just on that last point it sounds like the operating budget wasn't adequate this year at least without going into the contingency which is what the contingency is for so that's fine so we're eliminating the contingency. >> that's correct typically the operating contingency has been the amount that has not been allocated to specific line item or ac transit but would get us up to the grant the rm 2 grant amount which escalates each year. so this year rather than doing a transfer later in the year, based on what they are

projecting -- >> we're fairly confident that their costs won't continue? i know their ridership is up quite a bit. >> they actually requested more than the 2.9 million that is in this years budget this is as much as we could afford without dipping into other sources of funds beyond the grant if their expenses are higher next year we can look at whether or not it's appropriate depends on the operating reserve but we're not proposing that in the budget at this time. >> okay thank you. >> any other questions or comments? seeing none, it's just a hearing and presentation and so we can take public comment on this item if there is any. >> and there is none that i'm aware of. >> item 9 is approving an

amendment to the loan from the -- >> we're on budget and we've negotiated -- tifia amendments and that's wonderful news to us this relates to the tifia loan and that's what we're using to help pay the tifia loan with that i turn it over to sara. >> we closed on our tifia loan and the source of repayment is largely the net tax increment

and 4.57 percent interest rate and there's certain conditions in the loan that we need to meet before we can draw down the two main conditions are selling $429 million worth of land and demonstrating full funding for the project we had requested to draw down on the loan before meeting those conditions we had a proposal for a proportional draw that tifia was unable to grant however we have contract certification needs and we did meet another source of funding to keep the contract award on schedule this calendar year so tifia agreed to amend the loan they are making changes that are allowing us to right now we're in the process of negotiation and that will be

brought to you late summer or early fall the main amendments are modifying and repaying subordinate debt and also to be used for other project costs instead of being locked up for prepayment of the tifia loan and also on the full funding point, tifia has agreed to recognize the authorization to sell mello-roos bonds they are recognizing that as demonstrating full funding for the project many other tifia projects have to go through the

process of selling the bonds and along with the loan amendment we do have to make near the changes in the loan agreement and collateral agency agreement i couldn't just the agreement between us and our collateral agent which is u.s. bank all of the pledged revenues get deposits and that flow of funds is being modified in the collateral agency agreement so you are approving both the loan amendment and the amended collateral agreement today if you so approve. >> i have one question on one of the continuations on the tifia loan the second bullet point evidence that arranged

financing has been secured for the development of all formally state owned parcels that have been sold doesn't sound like we have much control over that. >> that condition has always been in the loan agreement. we are required to send that to tifia we have done so for the parcels that have been sold thus far they have not had any questions and in the amendment itself we've actually added some language to that bullet for example this demonstratation of arranged financing may include xy and z to leave it a little less open to interpretation what is satisfactory to tifia so it's not a new condition. >> but it's third parties that have to obtain this financing right? not us so evidence that these third parties have

arranged financing and that's always been in the tifia document? >> yes they are going to be paid back from the tax increment from the parcels and so they do want to know not only have we sold the parcels. >> but they have been financed? >> and director just to give you a little comfort we put together the rsp's for these properties there's a line item that requires that they can finance the project and to date they have all met that. >> okay. >> i'd just reiterate that they do work closely with the successor agency. >> yes preexisting obligation all right. >> thank you for the question. any others? >> we have a motion on this

item. >> congratulations. >> thank you. >> very good. >> so i will take that as a motion and a second role call on this item. >> and no members of the public wanting to address you on this item? >> any apologies public comment first. >> briefly before the budget adjustments the majority was a tifia loan so as long as we understand that with regard to the land sales we can not sell block 5 where the temporary terminal is right now until the mayor's office is done with the rail yard study because potentially that's going to be the location of the tracks thank you. >> thank you. >> can we take roll call on this item? >> yes.