within the district. and at the public hearing at the board of supervisors on september 9th, last tuesday, on the formation of the cfd, the board of supervisors announced a tentative settlement, with the developers, and the general terms of the settlement are, that the developers will vote to establish the cfd. and the developers will pay the special taxes at the rates, stated in the rm a. and the rates at which the rm a rates will be escalated for the period before, the developers, start to pay the tax, and where the escalation, formally could go as high as four percent per year. and lower, and but it will be fixed at plus, 2 percent per year and that is until each developer gets the certificate, and starts to pay the tax. and in exchange the developers will pay the special tax for 7 additional years, in other words, from 30 to 37 years.

and seven years of additional taxes. and or it will wave all time lines or the cfd to expedite and they will not sue the city. and for the two weeks to allow the details to be worked out and we will be looking closely at the terms of the agreement to determine that the final agreement is consistent with the terms proposed at the board of supervisor's hearing on september 9th. >> and the proceeds, with about 665 million of that going to the tjpa. and we, the city projects, that the net of the lower escalation, and the tax

payments, will result in the same revenues, to the tjpa to the cfd. and if the settlement finalized the staff, though, and will present the settlement to the board at the next board meeting with the resolution that will instruct the executive director whether to vote in favor of the cpd as modified at the settlement and that could occur at the october nine meeting. >> thank you, and unless there are any questions from the board, moving on with my report, i have previously reported to the board that the u.s. department of transportation has referred to our project as a national model. and identified a lot of our work as national best practices. and as a result of this, we were invited by the federal rail road administration to present that the first delivery conference in washington, d.c., and our own scott delay and mark presented on our behalf and both presentations were very well received and

generated positive feedback both from the audience as well as the fra itself, additionally, it was very complimentary. and when they came and conducted their construction, site visit and review of our program. and they identified as a national best practice, our risk and management, and as well as the buy american jobs map and i have provided one to you in may and we are updating these every two months and in may, we have 6140 jobs that we have create and in california and across the united states, we are adding about 500 jobs a month as a result of the transbay project and right now, we are at 7121, jobs. and in california, and across the united states. and that is about, 16 states in the u.s., that are employing people as a result of our project. >> i also wanted to let the board know with respect to the downtown rail extension, supplemental that we are going to be bringing more information

to you some time in october and at this point, the administrative draft has been released for comments and we expect to provide a release to the public for the public comment in time to install in part to present you more information, and i also want to let the board know that we concluded the internship program with the motivated and inspired students that was gratified for all of us involved as well as the contractor to see the good work of the students and we can see the remarks on the website, under the transbay. and finally, you are going to hear about the construction progress from steve in a moment, but i want to highlight that this month will be completing all of the utility relocation work and it has been many years and it is a milestone to have that mind us, and i will report on that in october, and the in addition, the train levels and it is schedule to be poured on september 27th, and also, a huge milestone, again you will hear more about that from steve.

and now, regarding block five, we have good news today, and here to present, on the block five is courtney, of the office of community investment and infrastructure. good morning, and the successor to the redevelopment agency and as you know we are responsible for propairing and selling certain state-owned parcel to third party developers. lot five is one of the state owned parcels in zone one of the transbay, redevelopment project area and it is located on howard street between main and baoel, and it is zoned for a 550-foot tall office tower, and as you can see in this diagram, the block is oddly shaped with two private parcels

on either side, because the typa and the oci, could not come into terms of acquisition, the rfp was issued to develop the western most piece of the block while making parcels m1 and three available for the project required open space. on april second, of this year, ocii issued a request for proposals to the sale of block five, and proposals from the development teams were due on june 25th, 2014, and the development teams were asked to submit the qualifications and basic development, and the financial proposal. and four proposals were received and evaluated by a selection panel, comprised of the staff and a representative from the transbay committee and, representative from. tjpa and the planning department and also input was received from the ocii

compliance staff and the architect of planning and real estate consultant firm on contract for ocii. and the second, and the selection panel reviewed all of the proposal and interviewed all of the development teams and each team is based on the criteria out liepd in the rfp and the selection panel scored, the development team, comprised of the real estate, and who partnered with the john buck company and with the architect sketch partners and benz and worked with the compliance and consultant butler enterprise group the highest. >> and as you can see that it the selection criteria was heavily weightd on purchase priel, golub had the highest prize for the site. and the next itest was boston properties at 135 million, and jay, poul at 115, and kill roy at 107, and golub received high

scores for developer, experience, and they are the developers of lot six. and a residential parcel, also, in zone one, of the project area, and they are partnered joe and buck has extensive commercial experience in chicago. and they also were scored well for their dedication to meeting or exceeding the ocii contracting goals. >> and as i said, the proposal from the team, included a purchase price of 172.5 million dollars,., 665,000 square feet of rental office space and 550-foot tall tower and also includes the approximately, 15,000 square feet of publicly accessible and open space on parcels m1 and m3. and underground parking garage, for up to 117 parking spaces. and street scape improvements and including the extension of the street and the improvements

on howard and main and beal street and the ground floor retail space of 5700 square feet and a minimum lead goal certification for sustainability. >> and now, the team had the highest over all score and, it did not receive the higher score on the design and the selection panel has had, and an oci staff and request that they look at things of the ground floor and the building and we have begun working on them on kind of refining the concept designs and they will be going back to our commission with the revised designs, and for the purposes of this presentation, i am going to show you, what the over all concept is, and this is the their ground floor and the building tower from on the left is looking north, and on the right, it is looking south. and this is the ground floor.

and increase the retail component and decrease the lobby space. and and one of the things that we really like is the addition of these sky balconies for the tenants in the building and again, one of the things that they are proposing in their revised designs is to have them on both sides of the building and the balcony can relate to the park on top of the transit center. >> they are going to hearing the ema, at the special meeting at noon tomorrow and then we will go back with the presentation on the revised concept designs, and then, we have a lot of work to do between now and march to finalize the dda and get the

team to the scematic level and one of the requirement is to pay a non-refundable good faith deposit of $2 million and we anticipate the full amount of the purchase price in september of 2015. and then they will start the construction, and soon as they are ready but more likely than not, april of 2016. >> with respect to the purchase price, when we presented the budget we identified, 241 million in funding and assuming the price of 172 million holds for block five that will get us to (inaudible) in land sales for phase one or 26 million more than what we presented to you in july of 2014. , the additional 26 million to

increase the budget, and we would wait until the financial close of block five to do that. >> we are going to have steve here to update on the report but he was called to jury duty and he will be here next time to present that. >> absolutely. good morning, steve rule with turner construction, and providing the construction oversight for the typa and as the jective director mentioned some great progress made this month with the last two months we have not, with the meeting in july, and so, but, the success as we have had in the field and also, off site and also with the start of the column sit up and we will show you pictures of that. and change things up just a little bit in the presentation and put some of these issues up

front so that we can get into that and this is of course the schedule that have you seen before and the critical areas are really in these structural steel fabrication, and that is the next most critical areas are continuing the lower, concourse, and the concrete, as well as the third lift walls or the first lift off of that lower concourse and all that have work has to be in place for the steel to begin and that is where we are heading towards right now. >> and this is the slide through the packages approved in the board meeting and mark will update this with the release of the request that are for you tonight with request for the new packages. and the safety statistics, and we did have, unfortunately, two recorded incidents in the last two months, since our july meeting and one trip and fall with an injured wrist, and was a modified duty and so it became recordable and the individual whose shoulder got

dislocated while doing the work and that become a recordable incident, and we are up over 1.1 million, craft hours and we have put in place, nearly 70,000 craft hours in the last two months, and again, the lower concourse. is over 80 percent complete and that is the kick off for the structural steel and that is going very well. and some of the statistics and of the lower course, there are 36 in total from the west to east and we have completed some of them and they are pouring another section on monday and that foundation is almost complete with the upcoming pour on the 27th and this will track the progress of the walls and columns and you will have it at your laser and get through to some of the construction photos here? >> and this is in the western zone and again, the being poured and we have completed all of the level one and two walls and the first and second

and, we are completing all of the columns and it is time to get that over and start to put in the lower concourse, and that is the primary focus and you can see that on the entire is almost decked over with the lower concourse and the first pures there will be starting next week, and moving on through and a completing of the western zone, and poureds. >> sxh and in the central zone this is the core of all internal bracing and shores, and we are thinking about revenue generating like go cart and basketball and while we are waiting for the train to show up. >> and the executive director about those ideas. the third wall allows us to

take the level of bracing close to the street and bring that down to the third lift and that opens everything up for the structural steel start and you can see that work happening in two right-hand photographs and in the eastern zone, we are all about the first and second lift walls. and i want to show you the super structure and steel and concrete and the current schedule indicates that this below grade is getting started at the end of october, with the structure rising out of the ground in the first part of november. and we will keep you up to date on that and the cast notes continue to be delivered as-needed up to oregon and we have a team up in oregon this last week, and our qa team and our qc teams working through the fit ups which i have some pictures, up here in a moment and these are just some of the work going on, and oregon and

both for the robotic welding and the attachments and pieces that go to the notes and, prior to erection, and this is the structures, all the way around the structure, all of these are dry fit in oregon in this frame that they have set up and the first and the second one is under way right now and the first one went very well with the structural engineer and the qa team up there beginning this week, and dennis accompanied them and the reports were that they were doing a very good job and it was exactly what the structural engineer was expecting. >> some of the other fabrication, and this comes from the xkt and we are working on the light column system in the subpoena mer land hand

photo in southern california and, that is one of the tapered beams that helped to form the park level. >> and this is the catnote and 139, and of the 304, and they are keeping up with steel production, quite well. >> and yes. >> this is the last shot to the fabrications and the cast nodes and so i did want to bring up the exciting news with the start of the bus ramp that was happening in july and it is now actually happening and we have demolition going, and we have mobilization for the foundation piles and the cidh piles and the brett pile that makes up the pile on the support for the bridge, but i did just want to recap how that works and this screen line represents the route from the bay bridge, and highway 80 down to the transit center, and this is just an overview of that to remind you, of the scope of work and of

course, that includes, the cable state bridge, and the main work that is happening and so far we are about to go into the cdih, and the deep pile of the foundation work up on the via duct route and we are also starting the brett pile work or the preparation for the brett pile work which is this whole here, which is completely shored and that equipment is moving in shortly, to start work working on that. >> and as far as the utility relocation, and the executive director mentioned that we are going to get that water line finished this month, and ptand e get out of the way but msquared had other work in the city that they needed to finish up before they could remobilize and they are out there at night completing that work. >> and so, over the course of the next, 30, 60 and 90 days, prepping for the structural steel erection and getting that big slab poured down and done in the east end and the walls and columns in the east, moving

forward and of course in the next 60 to 90 days we will see the structural steel, and delivered and a continual operation after that, gets rolling. so a lot of good things happening there. on the labor break down, consistent with the previous reports and with the apprentices and we are up to 2,000 workers who have worked and logged into the time system, worked on the project, here locally. happy to answer any questions. >> >> i have questions back in the block five. >> and yeah. >> whatever, >> and we can, and we can do that right now. >> we don't have to. >> do we have any other construction questions before we do that. >> thank you very much. >> could we have her come back up? >> what is the exclusive

negotiation agreement, attempted to attempted to do. >> it outlines the terms that were in the developer's proposal. and commits ocii to negotiating exclusively with the selected development team. during that time, the ena time, the team will work on the designs and negotiate the finer, that will be executed in march of 20 is 3, and they are required to pay a $500,000 deposit to pay for the staff and legal costs. during the negotiation they have to meet the contract requirements and things like that. >> i just would not like to see a repeat of what happened on the tower, the transbay tower, where it came in with a tremendous price, and everybody was delighted over, and over

the course of the next 18 months, kind of went down about 100 million dollars as i remember, and through, the property valuation and the market valuation that they said and i remember that the first time it went down, we were kind of in agreement, that the things were rougher than anticipated, but the second time that it went down, we were in quite a disagreement about how that happened, now, and what did we learn from that, process? that this is going to go into this process? >> well, we have the ena and we, have successfully closed on transbay block six, with this same developer at the purchase price that they offered, $30 million. and we have excel rated the time frame and we have less than a year to get to dda, and but, i think that a big part tf and we have partial and i mean that we were in economic times,

excuse me, and so, you know, >> it could happen again. >> it could happen again. >> but. you know, this is, we put in a strong of language as we could. and in the ena. and >> what is the $30 million that you mentioned before? >> for transbay block six. >> okay. >> block six. >> it is the residential. >> is that fixed? >> that is all right done. >> it is already done. >> they already have that money, and that was, the first rfp that the ocii did, for the residential block, and we issued it in 2011 and, we actually did not he is cute it, but we closed on the dda in the middle of last year, 2013. >> i know that there is only so much that you can do and i hope that we pay attention to it. >> okay >> thank you.

>> thank you. >> and now, scott will give a construction out reach, update on our bus ramp work. >> as steve just described the bus ramp is by the nature, a geographic location from the footprint of the transit center where most of the activities have occurred thus far and so we have a new set of neighbors that are directly adjacent to the noise producing activities and so, in july, when the bus ramp work began, our out reach team began to do the out reach, and we targeted 14 buildings that we would like to meet and we have face-to-face and we have three that are not responsive so far, but all of the neighbors in the impacted area are on all of the out reach lists which means that they receive our ten day, construction out look, with the detailed descriptions of all of the work that will be occurring around them. in addition, we held two meet ands one at lunchtime and at

noon, and at djpa and another at 6:30 and we had 21 community members attend, and the presentation was provided and gave a description of the bus ramp work and the construction methods and the schedule, and any description of the potentially noise producing activities as well as the potential night and weekend work and of course, we will continue to provide, the detailed update on the progress of the bus ramp work at our regular community out reach meetings which are held the third wednesday of every month. and at noon, also at tjpa and our next regularly skeled meeting, is this coming wednesday on the 17th at noon. >> and are any of the buildings that you mentioned residential buildings? >> some of them are. >> and so our office has begun to work with, a noise meeting that is being convened by some of our departments and so, it would be great to have you engaged in that. because, we have so much

activity in the area now, not just tjpa because of all of the activity in the transbay, joint powers area and we are getting an increased number of complaints and feedback about how we can better coordinate all of the different construction activity in the neighborhood and so i know that there is a meeting at 2:30, and i will make sure that our office connects with you because we would love to get everyone in the same room together. >> thank you. >> we would be happy to participate. >> and finally our quarter by financial will be presented by craig borey. >> this is for the quarter ending june, 30, 2014, which is also the fiscal year end period and the year end and the preparing in the financial statement and the auditors will be in the field for october and so it will be five report and the first is the budget actual report and compared to the

actual expenses to the board approved budget. >> and for the capitol revenue and expenses, where we are at 76 percent of budget and for operating revenue and expenses we are at 88 percent, of budget and the second report is the contract status report and this report presents amounts that are authorized and present for tjpa contract and it also presents dd activity through the likes of the program highlighting the contractors who have exceeded their goals, through june 30, 2014, tjpa has distributed 242 million, in payment and this report also shows the upcoming bid in the ward activity for the contracts and there is a substantial portion happening through the remainder of the calendar year. and the third report is the investment report, which shows how tjpa manages, it and we use a series of us treasuries and the paper to manage the funding, and the primary goal

is capitol preservation along with liquidity and so we have a series of maturities determining when we have the near term expenses, and the exception and it shows the capitol revenues and the exception of the program and the final is the status report and this shows the draws on the various reserves, and the report shows the activity based on the recent contract awards, and change orders and this report is also, in the construction activity, report that you saw earlier. >> and that that concludes my reports and i am available for questions. >> any questions from the board of directors? >> thank you, directors, that concludes my report. >> before that we do hold the public comment for item five and there is one speaker,

roland lebron and if there are any other speakers please do line up. >> thank you and good morning, the first thing that i would like to do is to echo the director's comment and i really congratulate, supervisor kim and the board and the mayor's office for which an agreement was the office, and that is remarkable achievement. and so that allows us to move forward and in regards to block five, the first thing that i would like it remind the board is that on block five was a phase two, and supposed to be a phase two transaction and supposed to be funding the dtx. and right now, what we are doing, we are making a cross over on phase one, and the real issue that we have here is that if you read, the rfp. and it basically, predicates, the suppliment of the eir and the extension of the trained box, and between the beal and

main street and that is a couple of serious issues where first of all that eir has been approved for the board and it is whether it will be approved by the board in october or later. but the main issue, is first of all, after the design, it will be impossible for cal train to (inaudible) period, and it will not be possible. and the second issue is, that, design with the region's long term intention to connect the transbay terminal to the east bay and the final ramification of that, if you make it impossible, to the term to the east bay, you are compromising between the 150 and 300 million dollars of our (inaudible). and that is my final comment and i hope that you will pay this in mind thank you.