dollars to date, and this meeting we will recommend award for 3 packages at 89 million dollars. and there are the exterior auning design services only, and the electrical package and the access equipment, and what is with that, and our total awards with what is recommended to date and what is awarded is 894 million dollars. the value for the packages is 213 million dollars. and that for the direct cost excluding the fees and the upcoming trade packages that was developed in february of 2014. and 246 million dollars. the difference is 33 million, and as well as the 26 million

dollars in potential, and we continue to work with the mayor's office for the funding for the parks so that we can open the park with the transit center to be sure that the park can be opened with the transit center and issue, with what i think and the prepackage that requires the lead for the plant course and we should do that for last month, and we will bring it for at ward in january. also with the elements of the park in january and this was bringing that to the board for award in june. the contract will be paid a set fee, and once the design is completed and the total cost is agreed to and the construction cost portion which is step two

of the process will be brought up to the board for approval and incorporated to the example of the contract once the board approves the awards and as you may recall, the exterior auning and the packages that were issued for the mid novemeber, 2013, and we have the full prequalified bidders and did not receive any bids as part of the january, 30, date. and the design team and to the potential bidders and previously, and the requalified bidders and it was determined that a effort and the design built effort and the procure a method would be the best approach for this package to provide the best competition and the least price. and with this method to work with the teacher and with the design team and to design the awning to the budget and if the agreement on the construction cost cannot be received, and the design or the completed

will be the property of the tjpa and they can just issue for the bid the design package comparatively, and on a regular procurement process. and they reissued the request for the proposal in july of 2014 and we received three proposals one from crown core and one from (inaudible) and cobra and evaluated on a 500 system and 300 points of 60 percent for the price and 200 points of 40 percent graded for the qualification and financial strength and experience and other factor and so for the purpose of the determining the total proposed price, and the section fee and the percentage and the construction overhead percentage were multiplied by the 30 million dollar construction value. (inaudible) scored the highest,

and the construction fee of 18 percent and overhead fee of 12 percent. and crone core's total price was based on a 30 million construction value, (inaudible) price was 12.8 and (inaudible) and that ends my presentation for the trade package, do you have any questions? >> could you relate what is budgeted for the total amount? >> yeah, the current budget is 35 and 36 million dollars and in the budget we assumed, 30 million for construction and 20 percent, or total overhead and fee. and that is what the 36 million

dollars, and what the total cost is going to be 40.75 million dollars and so there is about 5 million dollars, and now, the 3 proposals that we received, when we interviewed each of them indicated that they could do, and they could design it for less than 30 million, and so as we sit down with them and with the crown core, and maybe we will be negotiating the best value for us. >> and the cost sharing for our project that is under $30 million is enough to offset their fee? and i mean, is there enough incentive built in so that they actually have incentive to bring it in at less than 30 million. >> and we believe that they do. and for any cost, and less than 20 million dollars, we split the difference and so if we can come up with the cost and they will get 2 million and we will get 2 million dollar back and so if we design it for 25, and the total cost will be 35 million dollars.

and so, the proposals and the crown core is that we could design it for less than 30 million, and given that we did not receive any bids on the initial for the bid we want it to be on the safe side, and assign the 30 million dollar value. >> maybe, i don't understand how this is working. we don't know what the construction costs will be, we don't know what the materials and we don't have to work out an agreement. so, i would have thought then that we said, look, there is a design services, and we will find out after it is designed what it is going to cost and then you will be bidding on that and then on that basis, i thought that is what you were saying was going to happen, and so these numbers, that crown core inc has in for the construction fee and the construction overhead, are really just plugged numbers, based on an estimate of

construction costs. and now, in effect we will say, design it, and then we will figure out the construction, and so, why are we getting into a construction fee or a construction overhead? >> okay. >> so we have asked them to bid the design services and also asked them to bid, the cost for overhead. and the cost for fees. and so, the 12 percent fee and the 18 percent fee and the 12 percent overhead and these are fixed percentages. they can't, and the one... >> they can't change those. >> no. >> because we asked them to bid because we did not know what we, and given that we did not receive any bids for the awning it was a unique trace package and we wanted to set the fees. >> right. >> and set the overhead, and set the design, and effort and sit down with them with the designer and work and we would be able to design the awning. >> yeah, and they bid, 18 percent and they bid 12 percent. >> yeah. >> and bid, 14 and they bid 32

and so the dollars don't p make me... >> no they are just a plug value. what we and the upper limits of what we want on the awning cost. >> now i understand. >> any other questions? >> no member of the public. >> motion for approval. >> second. >> second. >> and so, we will take the roll? >> director lee. >> yes. >> nuru. >> yes. >> reiskin. >> aye. >> harper. >> aye. >> that is four aye and item 12 is approved. go ahead and tall your next item. >> item 13 is approving an amendment to contract, number08-04-cmgc-000, authorizing webcor/obayashi joint venture to award a trade work subcontract to shimmick construction company, inc., as the responsible bidder submitting the lowest responsive bid in the amount of $481,785 for tg15.2: façade access equipment, thereby

increasing authorized direct costs by $481,785, and the authorized construction services fixed fee by $36,616. >> >> and mark will also report on this item. >> and this scope of work for the was it, do you see it on the screens? >> sorry about that. >> the scope of work for the package of 15.2, is to provide the david and the cranes for the window washing system on the west end and to provide the fall arrest protection systems at the various structures of the roof support and we have a lot of structures on the roof top and they will provide the full air systems for that and the scope of work provides a three year warrantcy, and it was issued for a bid on august 7th, and the budget was 334, 458 and the estimates was 387,220, and the package had a

five percent goal and prequalified and two bids, and one for 313,000 and one for 481,785 on october 15th and this is a break down of the two bids and submitted for the bids for 481,785 for the bid for $313,000, and the estimate was 383,220, and the budget was 334,458. to the lowest bid and however it did not meet the goal and also his bid included several material qualifications that renders the bid non-responsive. and as a result it is recommended to award the package to simic to the amount of 481,785 and the balance of the 147,000 between the budget and the recommended award will be funded for the program reserves and after the award, the program will be balance will be 42 million.

>> directors? any questions? >> and that is... no, it is not that much money difference in this case. and so, any speakers? >> no member of the public wanting to address you under this item. >> okay. >> is there a motion for approval? >> okay. >> we have a motion and a second. >> would you call the roll? >> director lee. >> yes. >> nuru. >> yes. >> reiskin. >> yes. >> harper. >> yes. >> that is four ayes and item 13 is approved and to your next item is item 14, approving an amendment to contract no. 08-04-cmgc-000, authorizing webcor/obayashi joint venture to award a trade work subcontract to fisk electric

company as the responsible bidder submitting the lowest responsive bid in the amount of $86,799,400 for tg10.4: electrical, communications, security and integrated networks, thereby increasing authorized direct costs by $86,799,400, and the authorized construction services fixed fee by $6,596,754. >> and mark will also report on this item. >> okay. >> the scope of work for the trade package of 10.4, and the systems includes all of the electrical and communication, and security system needs as well as the it and infrastructure needs for the transit center building and the scope of work also includes providing temporary lighting and power for the construction and activity and the scope of work does not include, work on the roof top park as mentioned earlier and we will continue to work with the mayor's office to identify the funding for the roof top park which includes all elements above the fire sorry the water proofing protection slab. >> we bid the bids were open on october 2013, and 2014, sorry, and the budget for the work was 54.3, and the cng estimates,

and this trade package this a goal of 15 percent, and 6 bidders and prequalified, and in order to maximize the chance of receiving a maximum number of bids, they held three bidder conferences two for the entire scope of the trade and one for specific to the communication and security scope. and included in the detailed discussion of the scope of work and the contract requirements by the designer, and the cngc, and all of the conferences included in the question, answer sessions to conclude that they are responded to promptly, and to the satisfaction of the bidders. and two bids received and one bid in the amount of 86.4 million from (inaudible) electric and the second bid from the amount of 151.7 million dollars from (inaudible) and in addition to the three bidder out reach meetings, the cng significant out reach, to keep them engaged and the bidding of the project

and of the 6 bidders, two bidders early on will join the venture and submit the third bid and however one of the bidders was awarded a large contract and was unable to participate. and the other two prequalified bidders indicated that they are too busy and unable to participate in the bidding. this is a summary of the two bids received. to reduce the cost and provide the best cost, proceeds nine alternative and two alternative and several cost and measures consistent for the construction costs and the plan presented to the board in may. and electric submitted a bid, and in the amount of 87.7 million and a total bid price including the alternates in the amount of 86.6 million and the value of the alternates and the bid is 1 million, 144,000, and

on the basis and excluding the alternates in the amount of 152 million and a total price bid including the alternates of 151.6 million and the value of the bids was 1 million 730,000. and this is to include the deduct alternates 4, 15, and 23, and 16, and add the alternates, 18, 8, and 21, and indicated on the slide for a total value, and incorporating this in the scope with the preserve tjpa's ability to inclose the lobby and provide the waging and the heating in the hall and previed the security booth, and the speed ramp and previed the connections for the led screens and the street lobby and the ground floor for the future incorporation and the potentially regenerating. >> this is recommended to award

the package of 10.4, and for the amount of 86 million, 799,400. and the bid is reflective of the market conditions, and the project is under the critical path. >> questions? >> i have... >> some more slides. >> okay. >> i wanted to go into detail on how we are going to fund it. >> okay. >> go ahead. >> if the board. >> yeah. >> okay. >> this is a summary of how we are proposed to fund it, and the total award a86 million, 799,400. and the budget is 54.3 million. and we to utilize 27.26 million for the reserve and 5.19 million for construction, and the balance will be 50 million dollars and also for the construction will be 54.54

million. and this is a summary of the program reserves and the budgets is a total of 224.9 million. and after that award of the three proposed packages today, the total transit center balance will be 123.8 million dollars, and based on the cost of up to the trade packages and the cng estimate and the budget, we expect to draw, down 22.2 million dollars to the contingency and as well as utilize in the potential revenues for the set of lock five. in order to award the packages, and that will leave the projects with 85.2 million in total contingencies, and 38.4 for the cng and, and 50 million in the program reserves.

this is a summary of what we have awarded to date. and since the budget was approved in july of 2013, and it was awarded, 197,000, 197 million dollars, in packages. and the budget for this package were 152.13 million and the estimate was 270 million dollars, and the difference between the budgets and the awarded before today's meeting is 45.5 million dollars. and with the recommendations today, we would award the amount since the budget was passed will be 286.85 million dollars, and the difference between the budget and that will be 78.1 million dollars. >> after all of the awards, and for the packages are completed

we would have 70.2 million dars in construction, and this amount is approximately, 3 percent, of the ongoing, upcoming work, and but it does include covering over exposure, and that is current exposure, and all other exposures. and this concludes my presentation. >> director reiskin? >> a friend of yours? >> i think that it is a big concern of all of ours including our cac. and i guess that just starting at your last point, what is the current exposure that we have? terms of outstanding change orders or claims? >> since we are in the negotiation for the claims, and some of the change orders, >> could you give us an order of magnitude in terms of what has been submitted against that 70?

>> approximately maybe half of that. >> and i am not, exactly sure of the number, to date. but i can send you the information, though. >> but just that. >> that will leave us in a very low single digit percentages in terms of availablable contingency for a project where it is just now coming out of the ground and we have not 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,