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. >> a first and second director beale metcalf aye vice chair harper and kim aye as well and item 9 is approved. >> thank you item number 10. >> debt management policy. >> directors, as i eluded to in the previous item we're

negotiation an interim financing and a competitive rfp process within the last couple of months and we received nine proposals in our interim financing and we're negotiating a direct loan with gold man sachs and the interest rates are very low right now so a variable rate loan structure may make the most sense but also may make sense to hedge against the risk of rising interest rates. however under the dodd frank act, trading commission regulation we can not have discussions of any sort regarding hedging without

having policies in place that allow us to sign a safe harbor letter for gold man sachs this was drafted with the assistance of council and we do have a representation written representation from our financial advisor it's not like the city's policy which is 24 pages long and goes into types of bonds and notes and that sort of thing so it's much more general in nature but includes what we need it to include to have the discussions that we have i'm happy to answer any

questions you have we also have bond council as well. >> any questions or comments? seeing none. >> do we have a motion on this item. >> so moved. >> we have a motion, second. >> roll call on this item. >> director beall, metcalf aye director reiskin aye that's 5 ayes and item 10 is approved. >> number 11 other related services with ross and baruzzini. >> good afternoon i want to talk about the ross and baruzzini work on the concept

of operations give you a little bit of background september 27th, 2013, tjpa issued professional services for concept of operations in support of safety and security programs at the cct and basically begin where human intervention needs to come into play where physical security measures like a cc tv requires human intervention therefore we have concept of operations it identifies operational measures procedures and response all that kind of good stuff in terms of human intervention to support any kind of threats any kind of events that would happen at the ttc these are done before the day of operations before day 1 of operation example is it would cover any kind of emergencies you can think of medical fire

crime anything that could come up. in brief, it describes how security systems work together with some of the other components that have been identified annie evacuation system and conops done day one have to be in place it's commonly done and consistently done for any transit center you can think of and the mtc bart and ac transit san francisco mta and all of these as you can see here all of these organizations prepare conops before day one of operation. so december 2013 we responded to five proposals there were

five proposals from five different teams 3 teams interviewed based on a ranking system ross and baruzzini received the highest score they have prepared conops for san francisco international airport . extensive experience in the california area san francisco area they have done a lot of emergency response work for bart, ac transit, caltrans consistently and working with santa clara bta and regional transit district. the goal throughout the nation for transit facilities are to ensure the safety and security

of anybody who will be in the ttc at any point in time during the day and night identifies documents that have operational risk based merit and an example would be how we're going to coordinate with ac transit and kind of stock of stakeholders in there so it would be any of the facilities located next door and also include how we're going to interact with san francisco fire and police department so it's anything you can think of in terms of how you operate and integrate your operations response. >> thank you so much for the presentation thus far i just wanted to open up for questions andment comments thank you so much are there any questions? director reiskin? >> so when i saw the agenda

title it seemed to be a concept of operations and i think you had spoken in the past of developing one for the center obviously absolutely essential and when i read the item correctly, this is just a kind of for safety and security so i guess the two questions are and for just that subset it's quite a bit of money so my two questions are is this meant to be a subset of an overall conops for the transbay transit center or is this it or if not when would it be done how would it be integrated why would we do this as a standalone or am i miss understanding this all? >> oh no. no. no. what quadrants will be open when for example what time would we open

or close the park so it's really all incl u.s. ive. >> it really is all inclusive. >> we're actually getting a good value. >> it's actually low cost it was higher than the number that ross and baruzzini came in with. >> what integration would be necessary or good with the transbay tour? >> primary up on the roof top let's say they have a fire how will the ttc individuals who are responsible for that deal with that? we've got connections in place now we're working with those at this point to establish we'll have connectivity we'll have information exchange so you need a response on the side of the on the side of the ttc as