francisco is increasing that added to the adjustment we also got additional money from prop k there's a certain amount of money but it flows over time so when we're accelerating those funds to use them for currently construction costs there's a downtown rate the transportation authority found out they're lower than anticipated so our prop k revenues increased by $40 million. we had a lot of money in new revenues and the 3 hundred and 10 adjustment that leaves the monies that were going to be receiving from the mel ruse $28.5 million towards the construction of the park and another 2 hundred million from

the mel ruse. phase two is the tunnel it connects the tunnel into king and the new transit center. on this map first of all, you see alignment 4.3 miles going up targeted downtown i up to the new trait center another thing the need for the d t x extension a lot of people that don't use caltrain they don't see that but you'll see on the slide the area half mark radius there are one hundred and 80 thousand jobs

compared to other figures of jobs open fourth and king about a tenfold difference the other thing on the aerial part of the city this is a few years old the area north of market is built out not a lot of room to grow it's a long term grossly goal to shift into the south of market neighborhood. you saw this slide earlier during adams presentation but it shows that we're having tremendous success many buildings underway and another 8 residential buildings south of the district plan in the rincon point hear so the shifting

development of south ward this is a major generate our of the revenues for the attributing project it was parcels we're able to sell and those revenues go toward the funding of the project and a tax increment from the tjpa that's zones one and 2 the 6 red dots are the parcels that were up zoned so again, it's been discussed that up zoning allows for taller building to be built and their worthy a lot more money and in exchanges for the benefit they have to agree to participate in the cf d special property tax so this specifics we'll receive 82.6 percent of those revenues.

and just before i go into those numbers in a little bit more detail quickly we've had apace two budget that was at roughly $2.6 billion and the revision we found the bid approach that amount will increase to $3 million and it's potentially a private-public partnership be weeping we'll reduce those costs but a $3 billion it's $130 million at to accommodate one of the city's goals they're interested in bringing the tracks from the south bay underground in mission bay

street and that $20 billion allows us to build a tunnel so if the tunnel goes through it will be easier to build and list disrupt to rail alienations. side to side to the 2008 budget in the middle column you have the regional plan bay area that's the transportation plan that was passed by m t c in july of 2013. we had a big success in the area that relates to the overall fund we were designated as the regional priority that was a long term goal for tjpa it's the largest funding stream that exists and the way it works your regional metropolitan planning

committee they designate the priorities our region a typically carried to new start priorities based on what the region as historically receives. many, many years it was bart to other agencies that was from the planned bay area those two slots opened up one went to d t x and the second bart so we're going to receive $600 million the way we assess those is to see how long we quickly we work with the city aligning up the other fund. and this m t c committed to providing $300 million for the bridge toll for the d t x that

puts us at $950 million we had one hundred million that was funds we've received that's a total of over $1 billion and the way the numbers translate your heard earlier the 9 hundred and a 98 net bond precedes from the cf d we've received 82 percent that's 8 hundred and 18 million if we use $18 million that will leaf for phase two will be $618 million >> when you add those together we're at $196 billion. >> just a few questions now we're on slide 36.

so the total current projector and let me back up. this project to the transbay terminal even though we call it phase one and two we're not going to build something massive and not send a train to it, it's incongruous acceptable there's no way we would agree to build that terminal without the few information we'll wish having that train go throwing so fast two the fact on my roll at the m t c helped to come up with a reasonable mou stating wire doing the rail to downtown san

francisco when regionally there was a push to say fourth and king was good enough and we put our foot down and is said no way. we're on a positive path i have serious concerns about the funding we committing to making it happen but because the significant costs increases we're seeing money funds that would have been used for d t x moved over to the terminal itself. in terms of the d t x the current budget is $3 billion >> under the traditional design bui built. >> yep. and you said how much >> the of 50 in new starts once

we'll move through the $300 billion increases for m t c you add the $600 million there's a a couple of others to rounding run through. >> obviously the funding is contingent on the bridge toll increases b will have to go to the voters. >> yeah. itself it path forward. >> absolutely and also with my there's not on a larger transportation project in the country that hadn't costs in determining whether the highway system or the bay bridge we understood the costs change by so in terms of looking at accident slides number that 36

phases one and two in terms of the proposed use of the mel ruse cf d there's $118 million available for phase one and two and this indicates that $618 million will be going to phase one and then the phase one in terms of the cost overruns that's why the funds are going to phase one. >> it's due to the two adjustments i've mentioned the rb a and is additions to our other project. >> otherwise would have gone to downtown extension. >> yeah. >> the $618 million for phase two when tjpa analyze this the train box being built in is that

considered phase 1 or 2. >> that's where the $200 million will be going to its going for the component o exponent of the d t x but for the train box. >> is there anything in the transbay center considered phase two or is that phase one. >> theirs certainty components in the transbay center not being built out we have our senior program manager here to explain. >> i want to know what's need insides the center that's phase two. >> i'm the senior program manager for the tjpa. if you consider phase one for on the populations then the green box is part of the phase one is

for phase two use. >> right but being paid for by the phase one budget. >> the terminal box is much more. >> i understand. >> so there are other items that are phase one and two are the escalators and elevator we go up and down and some of the electrical systems that will be used by both phases. >> so my question is in terms of what's inside the terminal center out the the phase two budget kwhats the cost? >> 62 hundred, sir repeat and in terms of traditionally when we think of the phase one we think about the train so

anything within the transit center out of the phase two budget what's the total amount of money? >> i don't know that information. >> i'd like to know that information. >> can i just. >> we went over - can i just- so we talked about the phase one and two budget what might be detailed for the box and terminal i heard we're detailing some of the security cameras the trains might not needs that details but nothing on the actual that building itself you could. >> there's nothing being

delayed supervisor kim our correct the deferns over the electrical elements required for phase one that's for phase two we're going to defer that to phase two the cameras in the lower concourse we're striving to have those but deferring to phase two we put the cameras in the train box but will be obsolete. >> if i could get something within the four walls or how many other walls that are being paid for to be transparent my concern being the given the increase in costs for phase one every time costs increases in phase the one phase two costs

come out of that. we're going to get this amazing project done and it will be amazing for the transportation please get those to us >> we'll be happy to. >> i know we've been and, of course, this is a question for the colleague there. >> some of the changes that have been made to the phase one project physical changes and changes to the budget due to the costs increases the removal of the park from phase one and then or the issue of the park and the public design amenities can you talk about that. >> yeah. the park is definitely stale part of ptosis phase one and ken rich said we're working with the mayor's office to get

the park opened cellular a they and that's scheduled late 2017. >> how is the park being paid for . >> we're going to work with the mayor's office. >> i've heard $29 million gap is that the - >> the total amount direct and indirect. >> the total amount it $37 million. >> so through the grapevine you'll meningitis the $37 million for the parks will or may come out of the mel ruse a that's another $37 million less for the downtown extension is that fair. >> you said 16 is an equivalent

amount. >> so 618 minus 37. >> you see sort of the pattern of my questions i'm concerned with since this project is it will be out of the ground zoo soon but there's plenty of opportunity for cost changes. i'm going to predict every time the cost change or some increased costs that's we've got this pot of money that would have been $818 million to downtown and now down to 6 hundred plus million dollars now the shortfall from the park comes out of the mel ruse you down to 581 i see the number diminishing and diminishing further you know urge to get to

the next page and i know you'll get there i know you're as passionate about the dp x i want to make sure we're not shooting ourselves in the foot by viewing the mel ruse you funds instead of trying to gaud them, you know, zealously for use in the d t x, x but use them to make up shortfalls i'm concerned it might be used to pay for the parks. it's the easy way out to take it out of the mel ruse >> i agree with you supervisor wiener we're surfacing a robust market we've got $6 million for the building of the transit

center. it depletes the number of contractors that are able to bid that's if you have less contractors bidding it becomes harder. we've come up with a thirty miles mitigation plan cost reductions but i agree with we need to deal with the construction confidence increases >> the costs so in addition to the park issue we have to go into the downtown extension funds to make up the quest some of those costs are toubl to me a to make this a masterpiece so talk about the measures. >> and what they total in

costs. >> the proposal the plan we presented to the board at muni it talked about the phase two. >> is that - that's going to be paid out of phase two. >> it's deleting the costs. >> it will be paid for out of the downtown costs and if we need it this is electrical work that is above but we during phase two we'll very visit it and see if it's necessary or not the park is $5 million so we've looked at the need for phase one and reduced our scope for the information technology and the irrigation plan we know what we need as he mention we've deferred some of the equipment and the xhaerments from phase

one to two we want to make that simpler. we also removed the glass concrete covering this is g f r.c. to reduce concrete make it nicer we'll paint the concrete and take other measures to achieve some results. we've also number two, of using stainless steel we're going to use the galvanizing steel. we are reducing our ceilings designed to make p that more off the shelf and designer made. we're redesigning some of the barriers on the bus tech it has a steel barrier and we're going

to replace that by a steel barrier so a lot of the cost reductions the public will be able to use the park and this transit center >> it won't look as good. >> well, it will be very nice. >> in terms of those cost-cutting measures that will impact sort of the aesthetics and experience that people not the transit experience but the experience of people insides the center using the center what's the total costs in terms of the downgrading of those aesthetic amenities. >> presidential approximately 10 to $15 million of the numbers it's in that range if you take the electrical scope. >> so we'll get that list so

see the phase two and some of the amenities and the total of the amenity that have been downgraded to save money? >> we like to call it valley jerry. >> if i call it either one. >> supervisor kim. >> thank you. just wanted to talk about since we're talking about phase the one budget the largest increase was not the construction but the r v and the security plan. i know it's a point i've brought up over and over to the joint powers authority board i know we've it look at outing how to take a to the a the increases

largely match the dollar for dollar that's a place we should continue to examine the board has questions we had one consultant look at the plan and it's a difficult position for us we don't want to sacrifice security, of course, a very dense area of downtown it didn't help the department of homelands security for what that means it's important to look at that. i'll add that i'm happy to see we'll have an altitude oversight that manages prongs in the city what's particularly telling the projects starting around the savings time same time as the general hospital when the cost of were lower. what supported the general hospital staying on time and

under budget was the fact their bids are not or went out earlier and our bids have been detailed we can't cry over split milk but it's best we have as many have our best thinkers in the room in terms of how we can reduce some the costs so there's a major concern we know we'll get phase one done but not at the expense of the terminal d t x. >> sir. >> certainly we agree, of course, on the importance of phase two as we move forward with ptosis phase two we have

not creating a situation we can't move forward with that phase but some of the things in the pipeline we'll have to bid toward a future bridge tolls some of the funds for the mel ruse. i mentioned the property tax increment that is committed to the project that flows from 2005 to 2050 and although the redevelopment agencies have been developed that's considered a enforceable obligation we're using those funds to repay one hundred and 71 million for phase one, however, the number of tax increment over the 45 year period is much more than we need to repay the $171 million so our financial advisors say depending upon when we seek out a second

loan it would be in the area of 3 to $40 million. we're going to expend the period of those that property tax increment is allocated to the project even though redevelopment has dissolved to the plan are will expire in 2050 the property taxs will be collected and we will allocate those from 2050 to 20060 that generates another million dollars and we're going to look at down the road when the d t x is implemented collecting the passenger fees a that's the as far on the tickets for high speed rail that depending on

with it begins could generate several hundreds of million dollars and we've got two parcels that are valuable pieces of land in downtown san francisco we can't sell because it's the temporary terminal and the sequa second for construction phasing so that's on the $120 million so adding that you can see a path towards having a considerable amount of phased two that funding lined up and if we look at a different method like a public-private partnership it would be possible to reduce those costs and many of the funding streams i've mentioned do flow over time so could lend themselves to an availability payment so we could use o for a milestone payment

>> one final question in terms of the arrangement i guess that's in place with dpw as supervisor kim mentioned how do you see that impacting the main project we obviously want to make sure we can't predict the cost overruns it's the nature of the transportation project but how do you see that in a completion of the project with dpws roll. >> we welcome their expertise to work with or mitigate our risks and deliver a project that is as closed to budget and possible so we welcome their avoidance. >> the director of dpw was jus