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 well as a response on the side

of the towers fremont or 181 so we'll have to coordinate with them we'll have to deal with which evacuation route we don't want all of their individuals coming onto our roof top parks so also there's how do you transit information is it going to be on a screen like this how will you send people which way are you going to go there's a lot of linkages that need to be dealt with but if you can think of trying to move people from sfo out quickly they have already done some of this so you are in good hands. >> do they do wave finding.

>> it includes that as well so signage anything you can think of and a major component of it very important is a staffing plan that will need to be done fairly soon that impacts the cost all covered within your current budget and i think you are getting a very good value for your dollar. >> what will the process be in terms of from here when we see this developing? >> you mean what are the deliverables due? >> yeah when do we see. >> we're looking at about an 18-year period for everything to be done you have emergency operations plan you have a staffing plan you have the concept of operations that will need all the stakeholder involvement and agreement and they will need to coordinate

closely with ac transit you have their patrons coming into the transit center so an enormous amount of work that has to be done up front. >> is part of the scope what happens after an earthquake in the bart tube goes down and we're trying to surge on the bay bridge -- and deal with ac transit -- >> yes because we are connected to a critical lifeline structure the oakland bay bridge that's part of what we're looking at what happens if everything shuts down what happens if the fifth street off ramp is no longer operable. >> or the next bart strike. >> the strikes are important anything to do with civil unrest at all. >> okay. >> any other questions? >> i don't see any thank you very much.

>> thank you. >> i've not received any indication that a member of the public -- >> we have mr. patrick. >> i was concerned with one thing she said and that's with the transit tower and the park if you have a crowd control problem you have to be prepared to handle it from wherever they come from and it's kind of narrow to say we'll put up a barrier so i think that needs to be rethought a little bit. >> thank you. >> thank you. so at this time is there a motion on this item? >> so moved. >> a first and a second we'll go ahead and roll call vote director beall aye director metcalf aye director ris aye

harper aye kim aye as well that's five ayes and item 11 is approved. >> thank you can we move on to item number 12. >> approving the recommended applicants to the citizen's committee. >> i'm not sure we need a presentation we're looking at reappointing five existing members and i believe most of us reviewed the resumes one has applied several times i'm glad we're able to appoint here are there any more questions on this item? >> no public comment on this item. . >> can we take a motion on this item? >> so moved a motion and second. >> director beall aye vice

chair harper aye that's five ayes and item 12 is approved. >> item 13 is approving the minutes of the march meeting and members of the public indicated they want to address you on this item. >> approval of the minutes. >> so moved a first and second director beall. >> . >> may i have a comment first? i have read the minutes and the representative for cal train that was here talked to me about that meeting so therefore i'm comfortable with it and therefore i'm going to vote aye. >> chair kim? >> aye. . >> that's five ayes and the minutes are approved. >> a resolution of appreciation. >> directors i want to thank

mr. lloyd he was always courteo u.s. and i want to express my appreciation. >> any other comments? >> i'll just add and you know i've only been on this board for 3 years but really appreciated director lloyd's dedication and his credible long career and i don't know how he had 60 years of experience unless he started very very young a very very well deserved retirement. >> agreed move approval. >> so we have a motion and second. is there any public comment on this item? >> seeing none we'll have a

roll call on this item. >> that's five ayes and item 14 is approved. >> thank you so at this time we'll recess the regular meeting to go into closed session but before we do so is there any comment on this item? >> no members of t