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[gavel] i call this meeting to order. -- oh i see. sorry about that. i call this meeting of the transbay joint powers authority board of directors for thursday march 12 to order. would you call the roll. >> sure. i will note for the record that director sartipi will not be present and director kim is on her way. >> director. >> present. >> director. >> present. >> director. >> present. >> mr. chair you have a quorum. >> next item. >> item 3 is communications and i wanted to note that the board will meet on 10:00 a.m. on april 9 versus the normal start time and we will send an official notice later this week. >> thank you. go ahead.

>> just an announcement from the san mateo transit district. some press went out yesterday. some of you know we were in search for a new general manager for our district and jim harnet is our new general manager and hired by the board, and his responsibility will not -- only be on managing that business, but also executive director for caltrain as well as the san mateo transportation authority. >> harket. >> yes. he has history with us. he has been on our boards for several years. he's known locally as well as regionally and he has been serving on the high speed rail board as well,

and so he's familiar to many of us, so we're very anxious for him to start will be towards the end of this month, and looking forward to some stability with the transition of the you new general manager. >> so he's been at the center of a lot of issues. okay good. any other communications? >> okay. i wish to thank sfgtv for broadcasting us worldwide and board of directors old business. i have some. i think we will be getting in april but maybe in may a presentation -- i don't know if it's by mtc but sponsored by them. they have been doing a study much major corridors for the last several months and one thing in the study is an idea of a

contraflow lane on the eastbound level of the bridge that would be dedicated for a.m. commute and restricted to buses and perhaps trucks and commercial trucks, and vehicles with more than "x" number of people or something like that. that's just being looked at, and some of the initial stuff has been done and i thought because that contra-flow lane as least as it pertains to the buses would be tied into our terminal in some manner it would be good to get an early indication of the issues around that and probably coming to us next month. we will see when it's ready. it's an interesting study. it has been used in washington, d.c. -- those that have been there have seen it there and some other

things and the idea is it might work on the bay bridge. okay. next item. >> all right. item 5 is the executive director's report. >> good morning everyone and happy year of the ram. we had our chinese new parade last weekend and our own supervisor kim was there as well as our vice chair nuru who was the grand marshal. of course it was always a wonderful event and wanted to make sure they mentioned that. now as we start our year of the ram i am pleased to report that we continue to make good progress on our jobs. we have 9,000 men and women working in 20 states in the united states in the construction area with our project from california, nevada all the way to pennsylvania, delaware, texas, florida. we're proud of the numbers so i wanted to make sure that the board had the recent update. we were honored by a visit from

president obama's cabinet from sba and secretary sweet and heard a lot about our project and wanted to know what we were doing as well as our outreach for veterans businesses and women owned and lgbt businesses and we have paul here, the lead team member to give an update. >> thank you very much. i want to quickly go through a powerpoint presentation and nila will you put that up there? we will go through basically a program update tond what the initiatives are that we're employing in this project and why it's a national model for other agencies to model themselves after and take a look at what are the brass tacks? where we are with measurable

results? we have a large project with this construction package. you need mack sure you're innovative and engaging with the communities and the minority women perspective and local and regional and we have the program from the department of the transportation we accept the certification from all 50 states in the united states, so that represents those three certifications so the lbe, the sbe at california and national level at the do t. we want to be innovative and the bottom line people want to do business with who they go and we try to cut through the noise to make sure that the small businesses build relationships with the larger contractors and we do it with an online tool and small businesses can use this form about their projects and bond and client history so that way we start the relationship off

with the small and large companies. another tool that has been great -- in fact this is the [inaudible] line car but we sent outreach events. don't give people a lot of time to interact and we have these cards to help people tell their stories and you have done great work in the past and this cuts to the chase and tells the larger businesses why they should be employing small businesses. we continue to work with 72 chamber of commerces throughout san francisco and the bay area and some of the california based organizations because we know that information is best received when it comes directly from the source of the san francisco african-american chamber of commerce, the asian american contractors association and so forth so the bottom line we don't leave any stone unturned regarding those 72 chamber of commerces. we wanted to be innovative and we know needs and technical assistance are needed on small business.

one of the programs that we have been successful with is the mental program and if bijan sartipi was here he would talk about this and we took the model and with women owned businesses in construction and steel. we're working with a wonderful african-american business and right now she's seeing great results as communicating her value to large businesses so this long-term six month and one year relationship and the mentor program has been really successful. we worked with a lot of the organizations in the city to kind of up line cards, and help with the interest and so forth and working with them on the local level as well. veterans really are a key component and we have been successful with the number of veteran owned firms. in fact one of our veteran owned businesses,an vil builders which received one of the large contracts of their history to the tune of $10 million was

recently recognized by e and r magazine on a national level as one of the top 25 firms to watch in the united states so they started out with a $10 million and received another contract for $15 million so bottom line their business as grown because of this project. they went from 10 employees to now 83 employees and located here in san francisco. they're also a minority and veteran owned business so it's a triple win. they have been able to parlay the success on this to working on the lenar program at the shipyard and they can grow here and take success in other projects. lgbt. this is the first project in the history of the united states that recognized there were lgbt owned businesses that could provide value to a public works project, so two years ago on september 26 2013 thanks to the

leadership of maria ayerdi-kaplan and it was so successful and one year later that governor brown signed a new letter into order that recognized that lgbt businesses shall be in the procurement process of the 41 public utilities company throughout california so what started here is creating jobs across california in a new and innovative way. and as the director said we are proud to be recognized by president obama's cabinet member maria contierra sweet and worked with the department of transportation and housing under the gray davis administration and a key part of making this project happen. she has been in washington, d.c. and tracking the project and wanted to know what is going on and how we're so successful with small business in regards to this project and it was fantastic.

it was spent with eight firms and they got to talk directly to the cabinet member to say this is what is working with the project, here's the challenges and here's what we can do better so it was unvarnished input. as you know we track on a monthly basis the participation so we know it's not just promises. the process that we have seer points out the fact that we have a 17% goal on the construction phase and it's a robust goal for a mega project like this. currently we have $258 million that has gone to small firms. to date people have been paid in excess of $160 million. those dollars are going to creating jobs on the local and regional level so for that you can be very proud. what is exciting from our perspective as policy folks in small business we have

144 businesses, small businesses that are working on this project and some of them have multiple contracts so we have 167 contracts that have small businesses participating on them and what is more important -- you can't tell because of the line there but on the first tier subs and those operating as prime contractors there are 17 non sbes but we have 14 small businesses acting as first tier subs which other contracts are called prime contracts and that is important because that's the part as a small business you could grow your business. as a small contract you're at the behest of the larger contract and having this is enormously helpful in designing their own destiny and we are providing beyond just promises and with that i ask if there is any questions.

>> good news. >> thank you paul. this is a passion of mine working with small businesses and disadvantaged communities, disabled veterans as well as the lgbt community so i want to thank paul for the great work as well on this. we should be very proud for what we're doing. >> thank you for the leadership of webcor/obayashi and also turner. >> i would like to ask steve rule to come up and give our construction update. >> good morning directors. i am with turner construction. great month. we had no recordable no loss incident this is month in the western area. the focus has been primarily on bracing removal and the bike and vehicle ramps. just quickly on the schedule the milestones remain the same. things are working according to plan right now. the key milestones we're tracking in the short term are the completion of the first

below concrete package or the packages everything up to the 30 lift wall as we talked about. that's on track for a early finish from the november date to probably late summer and the structural steel erection a little slower than we anticipated at this point but catching up so we're looking for good things there. contingency slide that you have seen many times before and there were a couple change orders out of this but no startling changes. as far as our safety statistics as i said before there were no reportables or loss time this period and up over 50000 hours for the year so far. again in the west progress has been primarily on rebracing, the bike and vehicle ramp. in the central section of the project the primary progress is obviously the structural steel. we're go to cross first street. you will see that in early april as a complete write up and move

the crane to the other side and that's a bit of a dance with closing a lane during the day and doing most of the work at night and soo and in the eastern zone the focus is on the completion of the far east end walls and concourse work and rebracing and getting everything ready for steel and the projection being ready in summer for the final eastern zone. in the western zone the next step is steel erection and the crane for that at the western side, at the backside of the steel that we call it as you look at it from our end of the project will start next month. that crane came in and erected last week so that is all ready to go. just some of the pictures here again is the vehicle ramp and the pedestrian ramp being placed, and the bracing removal in the southwest corner. we have the bracing left in the northwest corner. the white braces that

you seen for so many years will come out shortly and the bracing be removed from that end. in this zone it's about structural steel. the wells are so great there is preheating going on and you can see that here for final welding here around the cast node and we're progressing the fourth lift wall now which is separate contract with waterproofing and reinforced steel and you can see that here. in the zone here and concurse and walls going in and rebracing at the lowest level. structural steel fabrication continues. one of the important pieces is the light column we will be getting closer as the erection goes across first street and there are the cast nodes being welded together up in vallejo. as of the end of last week we

were shipped 275 and so just a very few left to ship. they all have been cast. they're receiving the final machining and there is a picture of one of the largest cast nodes on the project getting ready to ship. those are 20 tons. on the bus ramp the work is we're above the ground on the viaduct poring the first column and getting ready to first the first stage of the pylon for the cable state bridge and you will see steel going across first street. we will see more columns pored on the bus ramps and the standard walls and rebracing, much of what you have seen previously going forward for the next 90 days. we will see the start of the [inaudible] trades and with the structural steel as they follow that area. great numbers in addition to what paul brought up is good participation. we're

still at 65% level of the local labor for the project. the apprentices are still doing well with 31 coming from san francisco alone and overall about 2400 workers have hit the site specific to the project. any questions? >> one quick question s there any risk that the east -- that the concrete work on the east side won't get done on time that the steel folks will be waiting? >> webcor is working with the folks on that and we came up with a acceleration plan. this is a strategic use of that to make sure that the area is clear. we are confident the concrete was done. we wanted to make sure it was done far in advance for the rebracing to be done and it will be difficult as we get to the end of the trestle and more congested and need

three cranes for the work to keep moving so getting the concrete done early we hope to avoid that. right now we're putting a lot of emphasis on the fabrication and watching the steel getting fabricated so there aren't any delivery hiccups there. >> thanks. >> anything else? >> thank you. i would like to ask craig to present the quarterly financial reports. >> good morning. i am here to give the quarterly financial reports and five in the package and following is a brief summary. the first is the budget actual report and through the end of the second quarter of the fiscal year we were within budget. capital expenses were 36% of the capital budget. operating expenses were 27% of the operating budget of the second report is the contract status report and this shows amounts authorized and spent for tjpa contracts as well as sbe

and dbe activity. tjpa has distributed 162 million to these groups over the life of the program. the third report is the investment report and we invest in a variety of different investments such as treasuries, commercial paper, certificates of deposits. some of our certificates of depoiseits and commercial paper matured since the report and in january and february. a portion of the proceeds have been moved to the money market move funds for payment and the remainder was reinvested. the next report is the inception to date report and presents capital expenditures and revenues since the beginning of the program and the next is the program reserve and contingency status report. this report shows draws on the various contingencies and program reserve for construction contracts and change orders and that's my report and i will take any questions if you have them.

thank you. >> great. our next item is the budget revision schedule. we have been working with the mayor's office and others with the timing and processing of what we need to did to bring to the board, informational items for the budget and the final budget for the board's consideration. everything is tied to when we need to open the station concurrent with the park at the latter end of 2017 and here to give the presentation is our ceo. we presented this to the cac this week and it was very well received and they concurred with scheduling and process approach. thank you sara and mark. >> good morning board directors. the board has

awarded 90 knife -- >> >> $905 million for phase one. $20 million for utility location. $16 million for the demolition of the old terminal. $20 million for the temporary terminal and funds for the bus route. later we -- [inaudible] design services of the middle seating system to be awarded so the total amount to be awarded [inaudible] approximately $906 million. the budget for the remaining transit center [inaudible] for direct costs excluding the [inaudible] fee and bonding is approximately $187 million. the estimates for the packages for direct costs is approximately $214 million. the difference between the budget and the estimates for the

[inaudible] packages is approximately $27 million. as a result this difference and as a result of some of the packages that came in above budget the costs have increased by approximately $15 million, 15.$8 million. this increase includes a increase in the fee, $5.8 million increase in the contingency that we need to add to the contingency and approximately $5 million for the increase in bonding cost. the cost of the [inaudible] does not include the cost of the roof top park, elements and heart scape and landscape and other elements. the cost of completing the roof top park is $38 million. for the bus storage the 65% contract estimate that we have indicates

$2.4 million increase. our budget for this is approximately $16 million and the estimate is approximately 18.$4 million. we will explore engineering alternatives as we move the development to the bus storage from the 65% level to the 95% level. our current contingency balance and reserves as steve shared include $53 million for construction contingency. [inaudible] for the contingency and [inaudible]. this month we will be updating our risk assessment to determine the level of contingency in the reserves needed to complete construction take into other known exposures and potential future risks. the plan schedule for the budget update includes a presentation of the budget outlook for both phase one and the annual fiscal year 15-16 budget at the may board meeting

and done as an informational item and include a narrative briefing in accordance to policy. in the june meeting we will present to the board a draft for the phase one budget and for fiscal year 15 15-16 budget as an informational item as well and we will recommend for approval the month -- july month for the 15-16 fiscal year budget. we are doing so in order to combine the phase one budget update and the fiscal year 15-16 fiscal budget development and approval at the may board meet ago sorry, july board meeting. with they will turn it over to sara to talk about the -- to present to you the schedule for the budget update and the drivers behind the schedule as well as the process by which we're going to develop the schedule in the fiscal year 15-16 budget. >> thanks mark. so those of you that are familiar recall our

budget policy will have noticed that schedule is a month behind our typical fiscal year budget schedule and so i wanted to talk what's driving that schedule. as mark mentioned in march we will do a risk management refresh. it's one of our regularly scheduled quarterly risk management meetings. fta and their project manager oversight contractor will also participate with us in going through the risks and reassessing, and then our risk management consultant will rerun the model to help determine what the appropriate amounts of contingencies and reserves are as mark mentioned so that will be done in march with the results available in april. also in april the sponsorship proposals will be received towards the ends of the month so we know how much funding is available from that source, and

by may we will have bids received for all packages except the ip network which is a later package to take advantage of advances in technology and then in june we will be coming with the construction costs of the design packages you will be awarding or considering and the curtain wall and ceilings. you will have awarded the contracts and the costs will be finalized by june so those are the drivers behind the proposed schedule with the outlook in may, drafts in june and adopting the one month interim budget and under our policy is 1/12 of the previous fiscal year budget and then final in july for both budgets. the process that we will be going through tjpa staff and consultants and staff and

the turner construction management team as well as our stakeholders particularly fta and rfa will update the modeling to inform the contingency levels and primarily tjpa staff and the consultant working on the up date based on the known bids, those recommended contingency levels and of course funding availability. for the fiscal year budget the program management team updates the projected cash flow. of course that will be updated on the recommended phase one overall budget and our finance staff takes the slice we always call it, the amount of the projected cash flow that's projected for the coming fiscal year. that's for the capital side. for the operating side we work with the facility manager and consult with ac transit on what the needs are for the operational

budget for the temporary terminal, so again presenting in may the budget outlook draft budgets in june, and that concludes our presentation. we're happy to answer any questions. >> sara, one of the things i did after i became chair i reread our organizational documents, and what struck me is an unusual situation and you you're a board officer, and i'm not sure exactly what that means in your mind but it probably means that at least one of our agencies thought it important that you have some sense of independence and responsibility with respect to the financial things, the financial situations and the financial decisions, and the financial modeling. is that your