structure steel bids. there was one bid substantially over budget and we elected to rebid it and it took time and incurred a three month delay to the project however we worked with tjpa to work in the purchase order than the package and we mitigated that delay. we did invoicing and recovery measures for the concrete package. that has been mitigated and could have been a five month delay. we have received approval for a water proofing substitution and that's actually approved project for the project and in the best interest of the project to do that and we mitigated a potential two month delay in the process of doing that as well. we in conjunction with tjpa

implemented a strategy for the caltrans plus a plus b where the bidders bid to schedule as well as the cost of the project. as it turned out the low bidder presented a schedule that was a year less than what we previously scheduled so that improved the schedule for the bus ramps by a one year period. we have implemented a number of lodging changes and shorter schedule durations within the current schedule to keep the project on track. and we have resequenced the design submittal packages for earlier bidding of selective trades. so there are a number of mitigation strategies we have available to us going forward. number one we're going to seek opportunities with scancaand working with ?em and that is driving the erection date. those options are over time for

steel and welding, multiple shifts and looking at street closures over fremont and first street. we're looking at shorting bidder and procurement times for upcoming packages. now this doesn't mean more time to bid the project. it's internal administrative coordination between webcor/obayashi and tjpa. we have implemented some lean scheduling processes with tjpa. we're looking to expedite a review processes for the documents before bid and the review of the documents and award after bid and we may require some special board meetings to approve trade bid packages in the future. we're looking at the option of buying shorter schedules during bidding and has to be evaluated against the potential cost and the benefit and looking at a package to see what opportunities might

be there and implement the ones that might the most sense. we're resequencing the schedule for more work simultaneously for the balance of the project. this is more trades in multiple zones and increased manpower ands supervision as a result. we have the option of work on nights and work ends. we're focusing with tjpa to do lean scheduling to focus on the critical activities that need to be done for bus operations at the ends of the project so we clearly understand what is on the critical path and the trades that need to be completed to get a temporary certificate of occupancy for the transit center so the status of the trade bid schedule we have five budgets packaged for today to be bid and we have -- from october to

december we have about 15 more bid packages that we will be receiving bids on and presenting to the board for approval. and then from january to march there's several more bid packages coming by the end of march we will bid out the bulk of the trades. we do currently plan to put the roof top land landscaping out to bid in january of 2015. that assuming that funding is available for the rooftop park and final cleaning would be bid during that time frame as well and october 2015 we plan to bid the it network and communication packages. those were intentionally delayed to take maximum advantage using the latest technology for the project so in summary with mitigations strategies our goal is to open the phase one transit

center with the rooftop park on schedule in fall of 2017. that assumes that the balance of the rooftop park is funded and we're able to award it by june of 2015 and assumes no unforeseen schedule impacts for the future that we don't currently know of. i want to point out the high risk and low grade and ex excavation work is complete and it's behind us. the below the concrete work in progress now is proceeding very well. we have three years of construction remaining so there are a lot of opportunities to pick up two months of time within the next three years of construction. and of course that does assume that the trade package procurement schedule they just showed you stays on track. any questions? >> director reiskin. >> yes it's very helpful. is

it there a reason you're not doing that type of bidding for the big ones? >> yeah and the bus ramps are a standard project. you have one contractor by themselves and no relationship with the other trade contractors and within the transit center you have 40 subcontractors and they all have to work together see to ask one to bid to a shorter schedule they're dependent on the other trades. we don't think it's viable for a project as complex as the transit center. >> okay. the second question how are we evaluating the cost versus trade off? you suggested that we could be buy savings and double shifts and weekend work. how are we -- i guess who is making that decision? how are

we making that trade off? i know we want it done on time but not at any cost and if it's cheaper to have the date slip that might be a trade off. >> absolutely. so there's really three ways of funding over time or shorter durations in the schedule. to the extent of subcontractor is responsible for the delay that is his responsibility and his cost. there are contingencies that they're used for delays or pick ups in the schedule and last we will look at opportunities to mitigate what you just mentioned which might be a delay that tjpa would have to grant a time extension for and if we can mitigate that for a cost the tjpa can see if it's a wise use of money or grant the time for the completion of the project. >> how are we going to consider

that trade off again? i know we want to keep in the 2017 date. if we open at three months later at lower cost that might be worth a trade off. >> absolutely and we would absolutely do that and mark can speak more to this, but certainly we would evaluate the trade offs. we do that at every step of the project whatever the issue is and ascertain what is the most cost effective for the tjpa to do and the agreement with the state will allow that. they're not going to be completely unflexible with the end date. if we can show them it's more cost effective to get a couple more months i think we would be ago okay and that's what we would do and we look at cash flow and all of this and make a decision on that. >> if i may add director reiskin and we look at the costs and the total cost approach to the program and see whether it's worth it or not to extend one

month or go out. >> okay. i would suggest that the total program cost be like the key decision point. >> it absolutely is. >> absolutely. >> it is and i mean that's we're always tracking the total cost, cash flow, et cetera. >> in the end of the day we want to come out ahead financially as well. >> and my last question is based on whatever the oversight there is -- i assume there is a schedule contingency from the risk review we would like to have at this point and i am assuming that the current schedule has zero so i am wondering what the desired contingency is right now for the transit center? >> he's asking about the -- [inaudible] >> yeah. it's about the float. >> yeah the float. >> you're correct. there is no float in the schedule currently. at this point in the project it would be nice to have 2-3 months of float so at this point we

don't so we're looking at metgation strategies to mitigate delays that occur now or in the future. >> okay. thanks. >> any other questions from directors? okay. thank you and i would like to ask steve from turner to give the construction update. >> good morning steve rural with turner providing oversight services to the tjpa. just's reminder how we look at the project for the new board member the western zone and down to second street and beale street. we had one incident this month, the back strain and i mentioned previously webcorwas putting on a safety fest and it was good

for the workers and how they do things and improve the procedures to keep the job safer. i wanted to point this out and i will keep it in the presentations going forward. i included statistics i could get for the state of california and will update the 2013 statistics from the feds and the state when they're available. basically and as far as the work is proceeding at the far west end of the project we're working on the lower level walls and the second lift and the column pors for the form work in that area. in the west and central area the lower concourse a deck has been pored in several areas and working on the walls on top of the lower concourse level and continuing to form up from more lower concourse concrete placements and moving into the east and central areas we are still working on the lower

walls and in the far east the foundation pores and i will give you an update on that in a moment. this is a schedule we brought to you last week. it's hard to tell because it's in quarters but it's reflecting what steve mentioned startz as far as the end date and the steel coming in october. i wanted to run through the critical path and the fab fabrication and the critical path and all of the walls and all of this is critical and has to be completed before the steel starts and that's are critical and we are looking for ways to improve that. overall the concrete guy is the prime guy on site right now. his work is continuing quite effectively and they're looking at ways to speed up their work as best they can. this is the progress slide. you can see how we're 90 and 100%

complete on a lot of the wall placement and moving into the eastern zone getting the walls in place. this is the far western end of the project. you can see where they're ready to form up the second lift walls in the northwest corner and forming up columns in that photo. the photo on the left in this shot shows some interior walls made of concrete that have to be formed up now that come off the train level that provide walls for rooms like diesel storage and fire water storage and on the right is the form for the lower concourse. moving into the central zone more of the work for the concourse and steel going in in preparation for more pores. two areas will be pored next week and a third after that. they're poring every 2-3 weeks on that level. in the central zone working on the walls and moving on -- actually

these are shots of the completed lower concourse level and see it in the photos and -- the eastern zone here and this is poor number 12 completed in june and we have four more remaining. this is the foundation for the light column there and those airchgables will be receiving the steel shortly. further east working on the next poor so these are the final dates and the thing i want to point out this is one day short of when we started. i believe the first cornerstone pour was the seventh of last year and it was to get them completed before that date and there is a lot of work

considering the amount of reinforcing steel so we feel that is fairly successful. looking at the struktsd url steel and fabrication continues up in the northwest with oregon iron works and thompson metal fab and they're working efficiently. we're looking at the dry fittings, basket columns in august and they're getting ready for that and the erections start in october. this is shots fromlet steel fabricators, some of the transfer girders. this is a cast note having connections on to it and it's wraped in blankets to preheat it for the welding and the fabrication we have done well keeping up on that and almost now almost 170 cast nodes -- i think it's 170. i have to do the math quick. cast nodes in

the delivery, about halfway through so we're looking to finish that up. more cast node shots in the inspection stages and ready for shipping out of the fabricators. we ran into one more pg&e line in the work so they have promised us -- right guy? that they will be done relocating that in july so we will finish up that work in august. the contractor is ready to move back in as soon as pg&e gives the all clear sign. going through the next couple of months we will continue the lower level or second lift wall in order to accommodate the slabs and work on the third area walls. in the east the goal is complete the pores and our goal

is by that date and completing that and the planning to be done by the end of august. this is the contingency tracking slide that we share with you regularly. if there are questions we can jump into that in a moment. laborer break down we're running true with 63, 64% of local. the san francisco numbers are holding. same with the apprentice hours on a geographic location and we're up almost to 2,000 individuals that have touched the project in the crafts area. i would be happy to answer any questions. >> questions directors? director reiskin. >> yes, sir? >> not specifically on this project but we have a bunch of items today that are drawing down -- i don't know what would be the right time to have a discussion about that. i don't know if you want to wait until the first the items. >> the items are put in order

and each item we will tell you where we are with the contingency so they're in order how much the contingency drops. we will explain it as we go through each item. >> it's the sum of them together -- >> yeah, do you want to do it now? we could be it now. the only thing that comes at a later date under the regular calendar. >> we can also call the items together if you feel -- >> i feel it's worthy of a discussion whatever the appropriate point in the agenda is. >> why don't we do that now? we can do that now if you want. we have that information. >> any constwrukz update questions? >> i happen to be down there on a saturday when one of the slabs and impressive to see the line of the cement trucks and flowing in and out of the operation and

impressive operation. >> [inaudible] . >> this is -- let me -- at the may meeting presented a mitigation plan that would allow us to fund construction of the transit center by phasing the park and utilizing the contingency reserves, $60 million from the reserves, $30 million from the

construction contingency to mitigate the difference between our budget and the estimate we received in february 2014. since that -- with the trade package we presented today this is a summary of what the estimate is -- i'm sorry. this is a summary what the estimate is and what the bids presented to the board. it shows that the roof top crane is 2.4 $8 million [inaudible] estimates. the temporary facilities $1 million below and elevates 2.9 seven and escalators -- [inaudible] and the mitigation is $2.5 million over what we anticipated at this point. the chart that we shared with you.

this is a chart that we shared with you as sth of mitigation if we stay on average within the estimate. it shows that the remaining reserves would be $15 million -- [inaudible] and the remaining construction contingency which is addition to the construction contingency and the [inaudible] would be $72 million, 72 and a fraction so right now we're off target by 2.5 million dollars. the assumption is if we're within the estimates on the award of the project we would have $50 million in reserves left and $72 million in construction contingency left. >> so if i may? i guess so you're looking first of all at

the sum of the value of the five packages relative to the estimate, but if you look relative to the budget and we're working from an approved budget from last year this is -- these are 50% higher than the budget. >> yeah. >> so that's just one concern that the budget for these items is in the low 30's and the sum of the items is somewhere around 50 million so we're off considerably there. in may i think there was 300 something million worth of work still to be bid and these five packages represent about 10% of that work. we're using about a quarter of the program reserves just on these relatively small items and it's really the big ones that are coming in october so it seems that -- it doesn't seem to me this we're just

2 million off of the may plan. it seems now we're on a trajector. if the mmp come in as high as these have relative to budget that we're going to be already far beyond our current or the mitigation plan that you reviewed in may and we still have three years of construction left so we're not accounting for any or minimal accounting for unforeseen conditions or the real construction contingencies so i -- i don't know if there is a question there and maybe you can tell me if my observation is not right. >> does this slide that i see shows on your -- this is the slide i presented in may. it shows compared to the budget the estimate is $134 million above in direct costs and $153 million

in total costs and the mitigation plan presented to you mitigated to [inaudible]. it did assume -- the plan assumes that the bids will come in on average with the estimates. obviously that hasn't happened yet and the market continues to be very competitive and we haven't receiving the amount of bidders. we pre-qualified quite a amount of bidders but this plan is contingent of getting three-four bids to get a competitive value. the three or the five trade packages, the middle stairs and elevators and escalators and elevators one bidder, and escalators one bidder and middle stairs two bidders so we have realize the true value of the packages if we had three or four more bidders. you mentioned the risk. there

is quite a bit of risk moving forward because the market continues to be hot and we don't know if we're able to get the number of bidders we need for them to be within the estimate but whatever we presented in may was based on that estimate that was completed in february. >> so the fact that we're only 2 million off from the csmc estimate from the 50 million work -- i guess you're suggesting is reasonably assuring in terms of if that same percentage overage comes in for the balance we would still be somewhere within the margin of what this mitigation plan anticipated. >> i didn't say only 2.5 million dollars. it's quite a bit of money and it's 10% of the work and that is quite a bit but the basis of the plan was for the bids -- >> on a percentage basis -- >> i agree. >> so it's 5% off of the plan.

although the mitigation plan we now understand includes deferring the rooftop park so if we bring that back into the fold we have less to deal with. >> absolutely. >> we wouldn't bring that back unless we identify new funding for it. i think the team is doing a herculean job of staying on schedule. we're still on schedule. they're doing a incredible job mit gagging in this environment. i think the board can be helpful and when applying for grants and with tiger and go to oregon and washington and discover new years for gr -- and i ask for assistance

in tiger and supporting us there and any other grants that we apply for because it's going to be needed. >> i want to clarify the approved budget from last year includes the rooftop park so as far as i am concerned the board hasn't taken action to take that out of the budget so i think staff has to come back with a revised budget or scope -- >> absolutely. we need a revised budget to add the elements that we need but in order to keep the project moving we presented a mitigation plan in may and we awarded half of the park infrastructure to date so it's want like we're not building the park and yes we would come back with a plan and a solution. we are working with the mayor's office on that and it would require board approval. >> just to confirm the mitigation in may was an informational item. >> yes it was.

>> we didn't take action on it so the board didn't talk about taking that out. >> it was an information item. that's correct. >> i guess one request is with the board's concurrence continue to ask board to continue to look for other scope reductions. i know you did a lot of analysis but i think given the trajector we're on we should continue to look -- >> i will tell you we are continuing to look but is there is no where else to go but removing walls and ceilings. we have done about everything that we can do and don't want to have false expectations here and we will brief director nuru on that soon. >> i'm sorry director i didn't know if you finished your question. before we go

director harper has some questions and comments. >> yeah, the idea of the six packages we're 2.5 million off is not what bothers me. with each one the variation was substantial. in one there was a 50% differential between the estimate and the cost and that is something -- even though they evened out by the time we got to the bottom we still have major misestimates on each one high and low and they started canceling and the management has to start looking at this and start asking why is that that in march we can't figure out what's going to be bid in june. >> the assumption -- >> may i interrupt for a second. it would be helpful if

staff can wait before they respond and not interrupt. >> i'm sorry. >> he just interrupted. >> the estimate was based on us getting three-four bidders or more. if you look at the middle stairs issued it in january we received one bid. we rejected the bid. it came in tripled estimate. rejected the bid. we did additional outreach. we increased the pre-qualified bidders and opened it up and only received two bids so we're not getting the bids that we need to be able to estimate accurately . the elevators, we received one bid each. the board allowed approval to negotiate with each bidder and reduced the price but dealing with one bidder we don't have the luxury of having three-four bids.