>> i know that tma sf connects is considering an effort that we have been supporting that the san francisco county transportation authority is the lead on that is working with a number of buildings and companies, in show place square to help them consolidate some of their shuttle operations and for the reason of identifying an entity to have and to hold the liability they are working with tma sf connect, to be that over arching umbrella who is

going to be the designated operator of the shuttle they will obviously contract out on the ground operations but then, once that comes on board, they will be considered a non-profit, and entity but, the folks that they are benefiting are zenga and adobe and folks like that. >> okay, thank you. >> you are saying that they were already stopping in bus stops? >> yes, they are. >> it sounds like many of them are on one end using white zones and tend to use at some locations a red zone or just if they want to continue to use any of the muni zones and those are in this approved network, that we have put forward, they

must get a permit. >> we are not requireding them to use the muni zones and they are welcome to pursue the white zones or find other places to do their loading or unloading. >> i know that there has to be a nexus related to the fee that is charged and i would think that different axels or kind of weight of the vehicles could trigger that, no? >> there are so many complicated parts and developing something new that we have, not, that is not something that we have used as a differential. and it could be something that we look at for a longer term, proposal, but, we are keeping the fee as something that is set for an individual stop event, which is one time loading and or unloading at a stop. >> thank you, members of the board? >> director? >> no i have no other questions, thank you, you have answered all of the questions thatvy and thanks to the director for the clarifications and i am willing to make a

motion to approve. >> there is a motion and is there a second >> second. >> and i guess that i will support it but i am concerned about that aspect of it and it does seem to me that it is a different kind of a thing, than you know, the big, debate or the big corporations or i appreciate you saying that the big corporations support the non-profit and the greater good out weighs the concerns. >> and i think that i want to say that i support that as well and what i would say also, is i think that i for those people who supported the shuttle program, and the people were a bit frustrated by the fee that they thought was attached to stopping in the bus stops and i recognized that because of,

whether it is the fees or the non-profits but i am going to support the measure. >> thank you, do i have a motion and a second? >> all in favor, aye. >> and director, rubke has recould youseded on this one as well. >> i propose that we take a short break now, thank you very much, ladies and gentlemen. >> thinking about life in general and not responding. >> so... >> and this number eleven on consent? >> could we really? >> yeah. >> and it is 1.2 billion >> all right. >> we are back for the mta board of directors is back.

>> item 11. authorizing the director of transportation to execute contract no. 2013-19: procurement of new light rail vehicles (lrv4), with siemens industry to procure up to 260 lrvs, associated services, spare parts, special tools, training and documentation, in an amount not to exceed $1,192,651,577, and for a term not to exceed 15 years; and authorizing the director to enter into negotiations with siemens industry to provide financing for approximately 40 option vehicles to be delivered between 2018 and 2021 >> directors... >> and what? >> 2018 and 2021, not 2012. that would be quite a trick. >> directors as previously mentioned there is a request to amend your resolution, the first whereas, clause, and to add, the language, at the end subject to the fta's resolution

of the protest submitted by them, by caf, usa. >> and the staff, and the recommended. >> the staff recommendation. >> it is a result. >> sorry it is a whereas and a resolve clause and it is the first resolve clause. >> do we need to do a motion to change that. >> yes. >> and the motion to move the amendment. >> second >> all in favor. >> aye. >> and so now we have the amended resolution before us. >> director? >> yes, thank you, mr. chair, and as our transit director makes our way to the mic to present the item and just a little bit of context. not just because it is 1.2 billion dollars item, but, for a number of reasons, i think that this probably ranks among the most significant items that at least in my tenure have been before the board of directors along, perhaps with the approval of the transit effectiveness project in terms of the most significant actions

that this body can take to advance service and improvements and service expansions that we need to be today's demand and as well as the demand that we are going to have in the future and just so happens that within the last hour, the board of supervisors, acted to place the $500 million obligation bond on this november's ballot which will mean the significant investment in the muni system and in the street safety and in particular, to the recommendations of the transit effectiveness project, however, geo bonds by the state law cannot be used for the vehicle purchase. and we have significant needs for the vehicle expansion. and what is before you today, has funding placement of the current fleet as well as the near term extension, but if we are going to meet the demands

of the system, and in the future, and particularly the 200,000 people that are projected to move to san francisco, and we will need additional funding that the 2016 proposed vehicle license fee increase would be a funding source to help us meet that expansion and you will hear a little bit about the possible private financing options but it would still require funds for us to service the debt and my point being that this is a very significant, step forward for improving the muni service, and for the hundreds of thousands of people that the light rail system serves. and but then, our work is not done in securing the funding for all of the expansion needs that are coming sooner rather than later ha we can see as we look out on the sky line and so we are extremely happy to be bringing this item to today and i don't think that anyone on

the planet who is happier about this than our transit director john who has worked tirelessly and i think that a great procurement for your consideration and so with that i will turn it to him. >> thank you. >> and walk you through it. >> okay. >> thank you and i have made the long walk on this. and so. >> but thank you for that introduction, because it is right on point, and given the significance of this and i do want to ask that the board a question have any of you ever been in a delay muni? >> well, i would like to tell you that puts you in and that you are special and that is the fact of the matter is that you are only joining some 1500 of our riders every day that are whose life are impacted by a delay in the system and as that is said, the action that we are going to put in front of you

today, will put us on a structured, and a long term course to take care of our most immediate and impressing service need right now to fix the very heart of our transit network, but also, puts us on a footing to establish and be right in the sweet spot for all of our strategic goals and not only to improve the safety and reliability of the transit service and with the hit all other goals as well. and so, before we get into the meat of the presentation, i would ask the indulgence and i know as a board you are adventurous and i will ask you to do a little time traveling with me to san francisco of

2016. ♪

>> i think that as that said, to get right into the meat of the presentation, i don't believe that we can over state the significance of the action that we are asking to you take today in terms of its import on improving service, both long term and short term and including the process, to addressing all of the you are gant needs that we have now for

crowding and the reliability and we are particularly pleased with the process that we followed, over the last, 13 months, and in this procurement that we believed that we have ended up with the right vehicle, and it is important to know that we have a aggressive schedule, it will be delivered in 2016 and if we move forward on the schedule, and we have worked on, and we will step up in terms of standard of performance and for example, we currently in our lrv fleet operate between 4,000 to 5,000 a month, and in this distance for the breakdowns and we set in the requirement, 25,000, and the car, that we are being offered is set for 59,000, or as i said yesterday, that is

twice around the equator. and some 59,000 miles compared to where we are right now, and this is a number of components that are simply we talked about a lot about the failures up there, and one of the reasons that we want to highlight the friend, the bear and the state flag, up there, is this as you will see as you move forward, this project from planning, to engineering, to manufacturing, and to warranty support will all be done in sacramento. and this is 90 miles away from us. and we will raep the benefits of that as well as reaping the benefits of a long term partnership. and someone who is an industry leader in the manufacture of the rail cars. and one of the things that we talked to you about before that is critical in the way that we designed our process was to try

to look back 50 years ago and say okay, what lessons did we learn from the previous procurement? not to be critical but to say, how do we do better? and that i think that there is really four lessons that we should point out number one, some time ago, we, when this particular series of cars was purchased, and the cars, and we as a agency prescribed a lot of features of the car, including the doors, and what we did this time, was to take an approach that said, we are going to reach out to the major players in the industry, and we are going to talk to them and they are the ones that build cars. and so, we are going to step back and we are going to say, as much as we can, we are going to give you a performance, but you tell us how you are doing. >> and number two, when we bought the cars we did not focus at all on the, now know the white cycle cost or the maintainbility or the reliability of the cause.

and so, what we did this time, was focus on the things like how many, on the modularity of the systems and where are the parts and because we have talked about some of the things that are causing failures and the doors and the parade of cars that have over 200 parts and now this particular door has less than 20 parts. and different kind of motor requires a lot less maintenance and so we did number two, we looked at the maintainbility, and number three, we wanted to look to a company that is an industry leader, at building cars, and some 1300, vehicles, throughout north america, and established the plant, in sacramento, since the 80s and a permanent workforce, strong relationships with the subsuppliesers and all of which are important to moving the vehicle, and the procurement

forward. and so wi looked to dry to learn it there. >> these were always problematic. and this is extremely reliable and that will give you more flexibility than making and breaking trains and that will allow us to make more capacity that is needed and more effectively uncouple. and so, what we tried to do was going forward and all of this, was lefage what we learned. and the schedule, we are asking for an action today. we have received an aggressive schedule from the builder to have a car here in two years, and 2016, in the summer and there is design issues to work

out and other issues including suppliers and parts and so in order for them to say on the schedule we have to stay on our schedule, and we want to move this forward, and so, we are asking for your approval on that, today. and we went through a two-step process and you may remember, first was prequalification and we started with an industry review and we talked to nine firms and we then prequalified for, and we received two, and responsive bids and one stood out. it stood out in the areas that we highlighted number one is a very strong and consistent track record of meeting the delivery schedules and in other words, if you look back at the history and they say that it is here in december of 2016, based on the previous performance it is going to be here. and secondly, as we will talk

more about in a minute, they have a parent company that has 22 billion, and just like we have 1.22 b, with a b, and some 60,000 employees in the u.s. including in all 50 states, and there is a close relationship and they have been supportive of this and their role has already saved us money and as we will talk about in a minute they are prepared to work with us and i think that it is again, an ideal long term partnership. for us to begin the process to improve this to be the best light rail system in the country, and the other point, again, is everything is local. and as opposed to why you could say, yes, it is a german company and there are in fact no rail manufacturers entirely based in the united states but this is as close as you are ever going to get. 90 miles away, again, planning,

designing and engineering, and manufacturing, warrantty support, and all in sacramento, and the other thing that we have highlight is the price. and we got a very competitive price when you look at the price that we have compared to any high floor car purchase in the u.s. and in the last three to five years and, we did very well in that regard. so, in terms of the two proposals that we received, one really stood out. and there is a sampling of one of the cars. by the way it was not our intention to confuse you in either of the presentation or the in the slide show, and just to cause our different is not an optical illusion and the front and obviously the colors are different but that is part of what we will talk about in a minute in terms of alternative approaches, that has been offered and so just in case you thought that your eyes were

playing tricks with you, they were not. and this is interesting. and here is the final score and evaluation committee and the only point that i would make on this is generally when you have a very high-tech cal score, and a high quality car and you end up with a high price, and this process for us reversed that. and you had a high, technical score and a comparive price and the other thing to go back to highlight is the alternate approach and what we did in addition to saying that this is the car that we want, and we in this spirit of following the process, where we partnered with the industry, we said, look, we may not have thought of everything. and you build the cars for a living and you may have a better approach on the technical side and you may have a better approach on the business side, tell us what they are. and for example, on the

technical side, semans presented 35 or so potential enhancements and one of the things, for example, something called a mary pia. which was fairly common in railroads but we never tried it and what we will do is basically take and right now we reverse the ends and there is an a and a b end and there is power in each end and what it will do, is you will take the full controller out, of one of the ends the b, end and couple the b, end together and put more seats in there and increase your capacity immediately, but still give you the flexibility to operate in both directions. and so, that is something that that is a kind of creative thinking in responsiveness, that we got in the proposal. and the evaluation committee

just a summary, they really and technically and from a price perspective, thought that siemens stood out. and one of the things that we did weatherize a little bit and say wait a minute and let's go back and check the on procurements across country, this price is very competitive and how do they do it? and so we discussed it with them, and basically, we are confident that we are getting both the high caliber, and a high quality vehicle as well as a competitive price and for those reasons, the manufacturing plant, they save a huge amount of shipping, and testing costs that we will have to incur, because they are so close, proven technology, and what does that mean, exactly? 1300 similar rail cars, there is, in the plant right now, they are making cars for edmonton and cal vary and we have a similar car and what we get the benefit of helps us is

the proven, technology and design, and this car is a step up of a generation from what we had before. and for example, we will get a finally we will get a black box. and one of the issues that we have in trying to and uncover what happens in the incidents or accidents is having to pull information from the three or four sources. now, with these vehicles, we will have a black box which will provide us state of the art information as well as customer amenities and some of those kinds of things and so, again, this was says, and it was one of the things that we wanted to check closely on. and there is a shot, that what is might look like if you were to choose, that color or mme. and if you go down and you will not see that by the way. >> purposes, and again, the important point, i just say

here, that to wait, and it has been an ongoing issue for us and this car is 78,000 pounds which is difficult, when you put together when you have a san francisco environment, and why is the weight important? the noise, the vibration, the pounding to the infrastructure. and that is part of that is the weight itself, and part of what enables them to get within our weight limits which we were never able to do before, is to design of the trucks and they have a permanent truck and they have a truck that is being used all across the country, and different kinds of design than what we have much lighter and important, and we think from a quality and a technical standpoint, this car is a major step up. and the door we will talk about more in a minute, and the parts on the door, and i think that the braking system is a major safety upgrade in terms of the

brakes engaging much quicker. and in terms of the diagnositics you will see the tools that we have to diagnose a problem and if there is a service interruption as to where it is and again, the trucks are really important. and in terms of our ability to improve service and reduce our maintenance costs. and the maintenance cost reduction is something that we will focus on a lot and another version of the car. the doors, and we focused a lot in the discussion, and said, look, we on the doors, they are in our current cars are the bane of our existence and we want to see a new door and so when we see, i did try to get one in here, but the security at the plant was very good last week. and i was unable to carry the mechanism, but, it really is, much simpler and it is a series

of motors and it just requires greasing one a week as opposed to some of the pneumatic stuff movement and all of the latches and switches that are inside of a braided door and so this is one, and the other thing that i will point out on this is that it really has got an enhanced safety feature, and it is considered not as sensitive, and if we would like them to be and so, this kind, and this is both the step off, and the reliability and the performance, and the reduction and maintenance costs as well as an upgrade in safety. and part of what seems good, and i mentioned this 35 technical alternates that they provided, one of the things that they did was provide a couple of options for the interior of the car. and obviously, sensitive to the environment of the stake holders that we have here in san francisco.

and that one is really radically different from what we have now to provide a more traditional longitudinal side by side seating one as well. but, that has all of the enhanced ada features. and really reconfigures the car in which as you all know is very hot, topic, and we are committed to a very open, and processed to hit the ground listening to as what works for everyone in terms of the interior. and the way to look at the interior. >> and the operator's cab i know how important it is to you as a board, on pedestrians and visions zero, and this is this is exceptional, and all the way around and it is completely transparent and i showed it to

a couple of operators today who were here and just to get their reaction to it, and because there is a lot of even from a maintenance perspective we have a difficult time replacing the windows because of the frames and this is transparent all the way around and it will provide the enhanced visibility and therefore, the safety for everyone. and this is another alternative that they provided in the operator's cab and what is interesting about this one is that you slide the doors as opposed to open it into the passengers when you are crowded and especially in the emergency, and this will be very helpful. and from a summary standpoint, in the technical side, we exceeded all of our. it requires the reliability standards as far above the systems and what we asked for and as