started really any of the building work. and so it is obviously, and you know, my earlier question, was, you know, what is the fta or whoever is providing risk management guidance and recommending that we have at this point and that seems like it must be substantially under that at this point. >> so the projected balance, after and the packages that come in the cng budget and we are assuming that based on the experience with the three or four bids we will come in the estimate and the remaining balance will be 85.2 million, which is 31.8 for the construction contingency and, and 50 million dollars in program reserves, and the fta, and latest report that was in june of this year, and recommended a balance of 159

million dollars. which basically utilizing the and that the current construction should be 55 million and we should have 57 million in program reserves. >> it would be helpful if you could share that report with us. it would put some of this i think in context. and i guess to some extent we are where we are and expecting that we are going to be able to close out the rest within the estimate given what this one looks like, and i am not sure that is a good assumption, but with regard to this, and i take your point, that this is on the critical path, and this reflects the current market conditions, and but when i, and the staff report seems to suggest that, the time line, for this procurement has been long from when the first rfq was issued and the first rfp and in the meantime the market has continued to escalate, and

it sounds like we are losing bidders because other projects are locking them down, as our what seems like very long process with the very significant adenda continue and could you help us understand the time line of this procurement and why it, at least it appears to have taken so long in >> yes, we initially issued for the bid and the package at the end of january, and in order to expedite, we concluded in the electrical and nruming and before the project was done, and so, it was completed 2013 and issued to bid inan of 2013 and in april of 2014, the completed plans were done and the documents and for the rest of the transit center was complete and so we issued the

design, and as aden ta to all packages, to all bidders in april and at that point, the mechanical and the electrical as well as the plumbing, and asked for the additional time, and so we give that extend for the period a lielts bit. and we issued the value engineering, and the corp reduction in that time as well, between april and august because when we received the cng estimates in april of 2014, it showed a significant increase between the current estimate and the budget. and so we went through an exercise of the down scoping and identifying the core production measure and value engineer and so we incorporated that in july, august, time frame and during that time, the bidders asked for more time and so that extended the bidding periods and i now have steve come in to talk about the bidders, but early on from the

process, and before, april, if i could recall correctly, and steve you could come here and verify that, when you only have two bidders because we survey them and the other s told us that we are busy and hoping to get one-third by the joint venture and that did get a large contract. >> good morning, as mark mentioned we have six prequalified bid and hers we knew, very early on in the bidding process that only two were going to be bidding the project. and at that time, we proceeded out reach to the potential bidding community. and anybody that the project team knew of that worked with in the past was aware of, and that might potentially be interested in bidding the project, but had not been prequalified to see if we could get them to propose on the project. and we were unable to successfully obtain any

additional bidders. so we did do an ex-sensitive out reach effort but i think that the market conditions is what really what drove this project to only have two bidders. >> so this is just the eve of the mep and some of the rest of the big stuff coming. that i guess that i am just concerned that the same conditions that putting out the initial bids before the final designs were complete and subsequently adding in the other significant addenda to the ve or the alternate and we are swruft going to see this pattern and should we expect this pattern to be repeating? as the remaining big packages come in? >> well, director reiskin, we are done designing and the designing is done, and we have done with it and we have already awarded the plumbing, and we have already awarded the mechanical. and what we have left is our packages that are 30 million

dollars or less, and many of them are less than 20 million dollars and we expect to, and maybe you can help me here, we expect based on the current survey that web corp has we next three bidders >> when is the last big run? >> this is the biggest one. >> and this the owning is the next one which is in the 40 millen range and the glazing which are due on the awning and the design built to the budget and that is the 30 million dollars and the trade package are 20 and under. >> and so this is the biggest one and so we knew that this had the biggest exposure as well. sxim not saying that the things are going to get getter, but they may not be as they preserved right now. >> thank you. >> yes. >> and could you just drieb why there was such a big range? >> between the two bids? >> i, my opinion that we all

received one bid here and the second bid for me, and the 150 million dollars is not really a bid. and so, i think that we just have one bidder and at some point a second bidder decided not to bid seriously, we cannot find a reason why one bid would be 7 million dollars and the second would be double that. >> i get the feeling that electrical is not (inaudible) strong point. >> and with that and, we looked up there and the deduct the alternates and the values are very similar and so i don't know what else, and... >> i don't know how we would deal with this, but, you know, some of these value engineering things, are now getting into real aestitics of what it will look like, if you look at this stuff, it is reconfiguring the

beal street lobby and deleting all device and deleting the glass clading and the ceiling coffers and the gray water system and we have talked about it at the last one, and at the last one, but some of these things, i think, i don't know how to, and i don't want to inject my aesthic, but it would be nice to kind of know is there a philosophy or a strategy or an idea. and sometimes it may be something that, you know, one of us would say, wait a minute, we, that is something that is if you describe what the deleting those meant. if we knew what deleting all of those led lights meant, then we could say, if it were a big item we could say wait a minor a slow item. and i understand what you are saying, and a number of these items were brought to my order for approval when we were looking at the budget to the

live 2012, and and i think that if you could talk to the component as to how we as a team make a determination on the aesthetics and we first and foremost look to to answer your question, director harper what is designed and promised to the public. what the public expectation is very important to us and then we look to of course, the peli clark team to help us and advice us, so that we can deliver as close to the possible to the public what was promised and stay within a reasonable dollar amount. and so randy? >> good morning, and i am, excuse me, randy, pelli, and in going to the design process and we start with what, we believe will be a very handsome aesthetically pleasing functional, structurally, performance enhanced building. and to meet all of the design requirements. and we also have a budget that we have to adhere to and what

we have done is we have established more or less of the priority. of things that are of the most important on the project. and we believe that the signature items on the project are the awning and the exterior skin and the park. and the grand hall, and we are, preserved the new development and we believe, to the best extent possible. >> we have gone back and offered up as the ve items those things that are that would be nice but they are not essential. and i think that, and it is, again, a balance, and we have a budget, you know, if we didn't have a budget issues we would have everything that we wanted in here and all of the things

that are involved and not to greatly effect the aesthetic of the building and i think that we have managed to do that and we are satisfied and we are happy with it and we think that the public will be happy with it if we can continue on the path that we are on, and finish this project out. >> and maybe it will be good, i am glad to hear that it is a prioritization of what is important and what isn't and it will be good to get that in front of us, and does that make, you know, especially when supervisor kim is here to say yes, that is a good priority list. and there is no problem here, with respect to the priorities that you have, prioritis that we would agree to, i doubt that there will be a difference. >> i would be happy to do that. and i think that it is a good idea. and we as our group, have established that, and i don't

think that you know what that is, and that will be good for you to know as well. >> and it is bailsed on the public expectations yeah. >> right. >> and that is good to know. i just i was not sure myself. but if we get that idea. >> just to add to that. and i think that i think that you make a good point that, and i appreciate the work that has gone into developing the deductive alternates in particular, and although when you look and this one is an example and it was a tiny franks of the cost that it actually saved us even if we were to accept all of them. and so, it didn't and i don't know if how that compared to the cngc estimates of what the value would be and it did not buy us much. and so i think that it, and it could be helpful to understand, what those trade offs are given that they don't buy us much and i don't know, and i don't think that we will get approved any scope reductions back in july or june of 2013, and i don't think that we have approved anything and certainly we have encouraged the project to seek the alternatives, and that, the one question, and it was

probably in the report and perhaps i missed it and did we beyond the alternates that were offered as part of the invitations for bids, did we seek and receive any ve proposals from the bidders. >> we seek to the ve proposals from all of the bidders, and every trade package has a ve, and we did not receive any proposals for the electrical. >> but we received some for the plumbing and some for... >> and... >> we did not receive any, yeah, but the trade packet that we issued for the bid has it is option of proposing the bids as well as post bid, for the ve proposals. >> thank you. >> and mark, on your last slide, you had the cmgc. and the construction contingency and the changes for that, could you bring that up again? >> yes. >> because i am a little. >> what did, and i sort of had

two questions on that slide, how does this cmgc contingency go up from current to proposed, without a shift somewhere? and i presume? >> and my second, related question, is that i usually when we see these things, we have a certain construction contract, that we are approving and we are finding that it is more than we thought, and because the cmgc contract says well, there is a certain percentage that we add on, but that percentage is only like five percent or so, and so why are they, not even, why should they even be close to equal, the contingencies? >> yeah, it is four percent of the ordered trade packages. and so, we started out with the 36.4 million dollars, contingency and in the budget. our current balance, is 43.9 million because some of that is utilized for the construction

changes. we are increasing it because our award package are above our budget and so every time that we order a package we have to set aside the four percent so that additional focus on increases the contingency to 48.4 and so, part of the money that we are taking from the construction contingency to bid out the remaining packages part of that money goes to increase the contingency. >> but it does make sense, to me if we are seeing these contracts come in at higher levels than we expected, which is understood, and it is the market. why is there not a construction contingency that is much better than the cmg, based on what we are expecting. >> because we are utilizing the construction contingency to award the packages. >> but you spent it. >> yeah. >> but it seems like that maybe, when we do the budget,

there is and there needs to be a whole realignment of what is based on it. >> yeah. >> and i would think. >> yeah. >> because, at this point, the numbers don't seem to... >> coordinate, the way that they did, originally, when we said, here is our construction, and here is our cmg and our others and, it seemed to bear, a reasonable relationship. >> yeah. >> and yeah, this is the, and where we are at right now is the second column and the and this is our current contingency balance which is the 123, and in that balance, we have 54.5 million dollars, in construction contingency and 32.9, and 15 million in program reserves. and the design of the 2.7, and the 18.7 escalation and it will

be utilized as we award the trade package and what remains is the 54 and the 32 and 15. and so fund the difference between the estimates and the budgets for the upcoming trade packages we will expect that we need to draw, 22.7 million from the construction contingency and also utilize the 26 million from the pending block five and when we draw up the 22.7 million, and 5.35 of that will go to increase it and so we may not, and the construction contingency but we will be more restrictive to use. and then, if we bid everything out, and in accordance with the cng estimate and we will have 85.2 million in program reserve and contingency and of which will be program reserves. >> and if you can compare the 85.2, to the recent fdr report

and the fda recommended 159 million dollars. >> okay. >> and i did want to clarify one thing for director reiskin. the 1.899 budget that we brought to the board in july of 2013, did include, 35 million in at alternates and they were going from the ceiling to the metal ceiling so that we can achieve the 1.899. >> that is what i was referring to. >> we need a motion to approval on the last item, right? >> is there a motion for approval >> motion. >> a motion, and a second? >> would you call the roll, please? >> with the first and a second and no members of the public wanting to address you. >> director lee. >> yes. >> nuru. >> yes. >> reiskin. >> aye. >> harper. >> aye. >> and harper aye, as well that is four ayes and item 14 is approved. >> okay. >> and i believe that brings us to adjournment. >> which i am good at.

>> >> ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ it looks at good and tastes good and it is good in my mouth pretty amazing. >> ♪ ♪ ♪ ♪ ♪ ♪ i am the executive chef i've been here as a chef at la

concina since 2005 reason we do the festival and the reason we started to celebrate the spirit and talent and trivia and the hard work of the women in the la concina program if you walk up to my one on the block an owner operated routine i recipient it's a they're going to be doing the cooking from scratch where in the world can you find that >> i'm one of the owners we do rolls that are like suburbia that is crisp on the outside and this is rolled you up we don't this it has chinese sister-in-law and a little bit of entertain sprouts and we love

it here. >> there are 6 grilled cheese grilled to the crisp on the outside outstanding salsa and a lot of things to dip it knocks you out and it's spicecy and delicious i was the first person that came here and we were not prepared for this every year we're prepared everybody thinks what they're doing and we can cookout of our home and so the festivals were part of the group we shove what we do and we w we tried to

capture the spirit of xrifs. >> and there from there to sales and the hard part of the sales is 250 assess our market and creating a market opportunity giving limited risks and sales experience to our guys and >> a way of life in san francisco. when the next major quake hits, the city hopes a new law requiring seismic upgrades to five story buildings will help keep more residents safe and sound. tell me a little about the soft story program. what is it? >> it's a program the mayor signed into law about a year and a half ago and the whole idea behind it was to help

homeowners strengthen buildings so that they would not collapse. >> did you the soft story program apply to all buildings or building that were built in a certain time frame? >> it only applies to buildings built in the time frame of 1978 and earlier. it's aimed at wood framed buildings that are three or more stories and five or more units. but the openings at the garage level and the street level aren't supported in many buildings. and without the support during a major earthquake, they are expected to pancake and flatten ~. many of the buildings in this program are under rent control so it's to everybody's advantage to do the work and make sure they protect their investment and their tenant. >> notices have gone out to more than 6,000 owners of potentially at-risk properties

but fewer than one-third have responded and thousands might miss an important deadline in september to tell the city what they plan to do. let's talk worst case scenario. what happens in a collapse? >> buildings have the tendency of rolling over. the first soft story walls lean over and the building collapse. in an earthquake the building is a total loss. >> can you describe what kind of strengthening is involved in the retrofit? >> one of the basic concepts, you want to think of this building kind of like rubber band and the upper three floor are very rigid box and the garage is a very flexible element. in an earthquake the garage will have a tendency to rollover. you have to rubber band analogy that the first floor is a very tough but flexible rubber band such that you never drive force he to the upper floors. where all your damage goes into controlled element like plywood or steel frame. >> so, here we are actually

inside of a soft story building. can we talk a little about what kinds of repairs property owners might expect? >> it's a very simple process. we deliberately tried to keep it that way. so, what's involved is plywood, which when you install it and make a wall as we have done here already, then you cover it with this gypsum material. this adds some flexibility so that during the earthquake you'll get movement but not collapse. and that gets strengthened even more when we go over to the steel frame to support the upper floor. >> so, potentially the wood and the steel -- it sounds like a fairly straightforward process takes your odds of collapse from one in 4 to one in 30? >> that's exactly right. that's why we're hoping that people will move quickly and

make this happen. >> great. let's take a look. so, let's talk steel frames. tell me what we have going on here. >> well, we have a steel frame here. there are two of these and they go up to the lower floor and there is a beam that go across, basically a box that is much stiffer and stronger. ~ goes so that during the earthquake the upper floor will not collapse down on this story. it can be done in about two weeks' time. voila, you're done. easy. >> for more information on how to get your building earthquake ready, >> we've never been in so much focus worldwide and will not be this this is a the moment in

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