operations and maintenance, then pedestrian circulation, that is all their problem. >> right. >> so they need to make it all work and if they can make it work with -- not having to fit in the little orange box, i think we would want to give them that opportunity. >> yes. i didn't mention the second-level above the grand hall is that two-story open space. there is not a floor there, which is the upper left-hand rectangle. >> okay. >> and we are pretty much allowing that flexibility that director yee and reiskin spoke of was my understanding. >> yes, for example, director reiskin on the bus-levels plans we're not showing any retail, but we certainly expect passengers that wait there to take their bus and master lessee might come back to propose a small kiosk program

for example. and on the street-level, for example, i think the master lessee will have opportunity for retail, especially food and dining to spill over on the pedestrian side of natoma way. so there is -- there are some parameters in terms of where we think in the first and second floor the retail needs to be situated, but also there is a tremendous amount of flexibility in terms of the what could happen and in terms of merchandising that the master lessee could recommend. >> this is a view of the natoma pedestrian way, where there is the predominant amount of restaurants and retail. i think you have seen this before. this is shaw alley is the gap that you can kind of make out, that leads through to the north side to the minnow street side

and closer view shows what we have as a facade, what we call pop-outs, which are the proposed entrance areas into the realize spaces that could be for individual retail spaces or if a tenant came in and wanted two full bays or something, they would only need one of the pop-outs. they wouldn't have to use both of the pop-outs for their entrances, if they didn't want too. on the second-level you see there, it looks like a little apple with a slice out of it? that was the food court kind of operation up there. where the kiosks and the food and things that are available to the people down below, they can see up there and see it's up there and they can get up there easily with the escalators and elevators that we have provided, all in the intent of making this a very viable, workable operation. out in front of the

restaurants, as was just talked about, you see some umbrellas and we envision seating out there, umbrellas and nice weather as they love to do in san francisco, get a lunch and sit outside and enjoy their lunch. again, back to the grand hall. this is the main circulation area, the light column in front of us, right behind us the escalators that go to the bus-level and to the park. at the far west end, underneath the escalators we envisioned the wine bar/coffee bar kind of retail, but again, this is our intent. we have put the infrastructure in for these, but the flexibility remains that other things could be done as well. this is our vision of the restaurant on the park. the 5,000 square foot restaurant with another 4500

square feet of terrace-level on the roof. the full service -- we see this kind of as a signature kitchen, a signature chef that would bring a real amenity to the park, and activate the park and get people to come up there. it's a destination point, we see, in the facility. again, we often times state when we come here, the hotel vitali and the active bar scene would probably give vitali a run for their money. we were up there yesterday, fred clark and i looking at with a we were doing and walking on the metal deck, but it's a terrific view. it's a terrific environment and we think it's going to be very much appreciated and welcomed by the people who will be using it. this is the main plaza area. we have a cafe 1500 square foot cafe that would be provided by

the master lessee. currently envisioned it to look something like this if you were inside. it's very glassy and very open to the park. people can see into it easy and obviously out into the park. that is the end of the retail. if there are any other questions? >> randy, one other thing. >> sure. >> you are the expert at this, but one of the things that i would like to know in the bigger-picture of things from your standpoint? >> yes. >> is to what extent can that flexibility be built in to the terminal at this stage? that kind of flexibility that we're talking about in terms of -- like some of these things that you show, like the counters, that are that one counter in the grand central area. >> right. >> and i don't know to what

extent -- i don't know the difficulty and the costs of putting that in versus doing other things? i think maybe you can sense the theme here from the board here is that we need some thinking on the transition that this center is going to go through. >> yes, yes. >> and in doing that, we need some help from you in terms of saying okay, given that transition and that this is going to be happening in those timeframes. >> right. >> what can we do or what should we be doing to maximize the -- not just the revenue -- but the feel of it? >> right. >> i mean, the worst building in the world in my opinion is the state building in oakland. because you walk in there and they have this massive open center and there is nobody there and what a waste -- >> for sure. >> i don't know what they thought would be coming through

there, but now it's just a security thing. this is going to be -- eventually it's going to be 80% or let's say 70% transit, 20% park, 20% whatever. but it's going to flip eventually and it's going to be mostly for retail and the neighborhood, much as i love ac transit, and we have got some great customers that are going to be coming through. but i understand the realities here. >> yes. >> and i would like to maybe come up with some plans here that recognizes this. because what i see in here is not enough, in my opinion, recognition of the transition that will be taking place, so we can put it out there to whoever our master lessee or venture partner is going to be in this and understand it's a long-term proposition here and it's going to be evolving and to put that education out and

first of all, starting with you, i think, do the thinking behind it so we can do that. >> right. i believe we have done that and i hope we have done that. but i went back to this slide, because this is the main chunk of retail here, the two-levels here. we have our -- the hardest thing that the retail, particularly restaurants is the plumbing, is the hvac, all of these spaces have to be heated and cooled and the electrical and what we have created is loop systems of circulating hot and chilled water for the air conditioning and heating of the spaces. we've circulated or looped electrical with big main peanut panels that distribute out to the space and have submetering for all the spaces and the thing we know that the restaurant that moves in day 1 may not be there year 2. so we

have to able to adopt to whatever else comes along. we have plumbing under the floor. we have got the ability to come up through and put in new toilet rooms where we didn't have them originally and the ability too cap them off, if we want to take toilet rooms away from the interior of the spaces. sail for the second-level and i will point out on the second-level, the eastern quadrant there. that largest orange area. we have a big grease duct that runs down the center. the people can tap into. so if they have these little kiosks and a burger kiosk, bring a duct up and tap into that and it goes up and out, and if he doesn't, he doesn't. we have tried to bring that whole thinking and procedure into all the of our thinking in how we're laying out these areas for maximum flexibility.

because retail is a here-today-gone-tomorrow kind of thing and we have to have it to someone moves in and they move out, we have an empty space. the worse thing we could have is empty small spaces or large, open empty spaces. one thing about the grand hall there is currently, all things considered, nothing on the level below that would preclude us from being able to put in additional infrastructure, if that was a viable thing to do. >> good morning directors. my name is greg jordano with sensory interactive and our company helps clients to put digital media and hardware and

software into the built environment and in this project it takes the format of creating a -- defining a promotional platform, mostly digital, that will maximize the available revenue from sponsorship advertising and naming to the tjpa while also improving the quality of the visitor experience through the facility. so what is a promotional platform? it's language that we have had pop up it's a relatively new form of advertising developed for large venues such as stadiums and entertainment facilities and transit centers. they are made possible bit emergence of new digital technologis that allow us to integrate different types of media from digital and static signage to new types of technology, mobile applications, websites and architecture itself in terms of event spaces and to create a valuable branding. promotional platforms are different from traditional

advertising models. and primarily that they are sold to a small number of sponsors who sign for multi-year deals in return for the opportunity to reach a strong demographic audience, which you have here, through multiple channels, digital signage, events, the web applications, the mobile tools. promotional platform delivers greater value looking at the first point, to a sponsor, than traditional advertising does. three particular ways: a sponsor is guaranteed exclusivity, meaning that no competitors to that brand will be in the facility. a sponsor has the opportunity to dominate the advertising environment; which means that at defined times the of day or year, a brand can take possession of the displays in a venur and make sure it [rao-efrp/]s all sets of eyeballs moving through the facility and lastly immersion. many will see the brand's posters and video advertises and see events that are happening and see the name on

the mobile app. this culmination of different ways creates a deeper connection that visitor have with blands -- brands more valuable from their perspective. and with a venue like this, they create content specific to this venue and rather than traditional posters that they hang around the planet, they'll generate specific ads that are timely, that are tuned to san francisco, that are part of the culture, and what is happening in san francisco, sporting events, political events and things that are happen ing will get reflected. for a brand like this they have a stake with the people and the content should be more than what people typically see in a station and the result is that they pay attention. second point, exclusivity, dominance and immersion create the ideal conditions for

advertiser to engage with the consumer and these traits along with content, focus the consumer's attention and increase the amount of time that consumers spend engaging with the ad. a system that is designed to deliver exclusivityity, dominance and immersion will return higher revenues to the tjpa and the third point it's important to note that a promotional platform is not possible just anywhere. this is not just anywhere. this location is going to be very interesting to brands, the high-traffic expectation and excellent demographics. that is why we have recommended that you proceed with a promotional platform rather than simply is deploying traditional advertising. we have expanded the feature list of the content management system, which includes computer servers, video processers, wires cabling, networking equipment that allows us to program exactly when ad will show up on which screen with

which content at what time? examples of how that can bring additional value: it allows us for example to dedicate the morning rush hour to a coffee company that would push their message at a time that the audience is receptive and pull in video to present to people waiting in bus lines and allow visitors to engage with the brand while waiting. it allows us to connect point-of-sale systems to visitorez and mobile phones and allows us to integrate emergency messaging, if necessary. a broad range that we expect to reemergeover the lifetime of the promotional platform. these give the promotional platform the real value and tailor the way it connects to its audience. content management system will be part of what is provided by the master lessee. so how will

the promotional platform enhance the value to the tjpa? a number of goals and objectives that we think will help to drive revenue and the no. 1 goal is of course to focus on revenue. this is at the prov that will maximize the advertising sponsorship and naming abilitis and position tjpa as the premiere advertising opportunity in the bay area. the demographic is very interesting to advertisers and one location that the brand can reach a very, very broad section of that demographic. by investing in this location, people from marin county, san josé, san francisco, oakland, the full demo[tkpwra-fbgs/] demographic come through this facility and it's a wise spend through the brand's perspective. third, there are retailers that would be more interested in paying more for retail space

for access for a tool like this you'd outside of their facility and fourth, help the tjpa and master lessee to attract and maintain media sales partners will want to have this property in their portfolio. this will be a crown jewel for them and they will focus their attention on selling this property and that will drive number and of course, the return to you. one specific point 5, change we have made in the plans is to dedicate additional advertising space solely for the purpose of advertising and separate from wayfinding and transit information, that people are going to rely on to figure out languages and how to get to coit tower? that belongs on the screen and so that it

doesn't disappear and get replaced with a burger ad. >> the ac transit passengers will know their way in and out of this thing, doing it twice a day. >> absolutely. 6th point, because advertisers will have multi-year sponsorships in place will investment in better content, digital, static, et cetera. and that will deliver more engaging experience for passengers. lastly and perhaps most importantly by doing the design now, we're able to place it now rather than create a sense of clutter that conflicts with the quality of architect here. >> is the package that is on the agenda today those digital, physical assets that support this platform? >> yes.

yes. we have developed the plan for infrastructure. i'm sorry -- >> the package today is basically for static signs. wayfinding signs for the transit center. >> you are talking about the other package sorry. >> that is the base to the building does not include any of the plans that were shared with us today this. is just for wayfinding and we have included the those for the transit users and kiosks. >> they are not this and we say that in the staff report, first page. >> there is a paragraph in the staff report. >> yes. >> thank you. >> okay. so quick visual images that display some of the promotional platform assets on the left-hand image a portion of the main grand hall scheduled board will be the upper portion devoted to advertising. the lower portion closer to

eye-level with more detail on it is devoted to train and bus information and easier to use and read. upper right, the small blue square adjacent to the elevator doors is an additional asset we're proposing to allow us to separate advertising content from event information. so that is under the glass pavilion enclosur at the elevator bank and in the center of the image is a pair of interactive kiosks, the basic form factor of things that will be in the public way, in the building and around the building, double-sided metal boxes. lastly, some basics on the economics. the headline is master lessee will bear the hard and soft costs related to the newly proposed assets, to answer your question, director reiskin and modifications. so if the master lessee wants to bring in a new activity or audio to a

specific location is part of their piece. estimated gross annual revenue from this investment is quite significant, and will be used to offset the costs of operating and maintaining the transit center. :how much will be on broadband? >> it will be very broad. >> wi-fi. >> probably not using wi-fi, but fiber optics. >> so there will be cables? >> yes. >> ten years from now? >> very probably due to reliability, yes. supervisor kim was hoping to get a look at the second meeting and i can tell from the time thing, we're going need one on this anyway, what time do we have to be out? 12:30 and we have a number of things on the agenda. so i'm in consultation with the vice-chair. what i want to do

is cut this presentation here, and get it at our next meeting, whenever that is. so we can get on to the contracts that we have to address, and get that done, and at the same time, allow supervisor kim to look at this. you know, in the future, i just want to say, it would be great to get as much material ahead of time as we can. just speaking for myself, i want to listen to the people talking and i want to get a sense of them and the feeling for it. when we get this much material, which is very dense in term of its information, i'm always caught between listening to the person, trying to get a sense for what they are saying and looking at the maybe what they are saying or jumping ahead, so i can ask an intelligent question about something coming up in the future, which i can't do, really, as i try to keep up with this. one thing this will allow that the fact we can now digest all

of the information that has been about this whole thing because it's huge and there is is a lot of ramifications to this and that will help us as well and we can come back and finish this up. >> right. if the team before we close this, if you could close with the main relevant points? again, then i know that our cac chair wanted to make a comment about this. if you could just close with the main relevant points. >> sure. >> so there is some closure without going through -- without going through the slides. >> okay. so i'll just talk about sort of the deal structure that we have envisioned for the master lessee. this is a critical point. we envision the tjpa entering into a long-term master lease with the master lessee and the master lessee will have a set of role and responsibilities and obviously one being providing the o&m over the term of the lease and capital

preplacements for the facility as and when they are required. the master lessee will pay obviously have the opportunity to achieve revenues from the retail, from the promotional platform, from events. and they will pay a fixed and participation rent to the tjpa and that is something we'll negotiate with the master lessee on and finally, the master lessee will also propose on an annual o&m budget and five-year capital budget for capital replacements of the facility over the course of the lease term. the tjpa will have certain role and responsibilities. the tjpa on behalf of the purely public portions of the building such as the bus ramps, will reimburse the master lessee for running those public portion where the master lessee has minimal to no able to capture revenues and pay a management fee for that portion. then costs, because this is say new facility without any kind of operating facility, the

costs between -- if they are different between the annual budgets and the five-year capital budgets, those will be shared between the tjpa and the master lessee, again, something that will be negotiated as part of this longer-term process between the tjpa and master lessee. maria, anything else to speak to in regards to timelines? >> in terms of next steps we have many, many community meetings scheduled for the month of january to present to the various community members. and then we'll be meeting again with director kim separately, early part of january as well. and then we'll be bringing back to the board as another information item at -- we're going move our january meeting to later in the month, probably january 21st. i believe, and >> and the reason is? >> director reiskin? >> can't make the 14th? >> yes. >> that is a good reason. >> as we discussed earlier, we

would be looking after the second information item to the board to release this latter end of january/early february. that is the plan. >> what i would like when it comes back to us is a little more of the joint venture model. as i say, once this building is gets to the point it happens and have the tjpa full focused on phase 2 and would like it not to be involved as little as possible with the running of the building, because we need a lot of energy to getting the rails in here and even with that, it's going to take some time. >> yes. >> i would like just for this in particular, i would like to hear more about what the joint venture might look like? to enable us to do that. because i would just dread having meetings in which we're talking about the sprinkler system that didn't work at the

wrong time, you know. >> that is the idea. >> okay >> i think i would also suggest as you do your outreach to talk to our airport that has done a good job with retail and marketing and the parking lot. >> we have done that. >> you have done that? >> yes, director we have talked to the airport and the port. >> how does that fit in? >> if you could speak to that, please? there are different models on one end of the spectrum, the airport being on another and if could you speak to that? >> we had a number of conversations with the airport and port authority. as you well know director nuru, the airport runs their own facilities, their own retail. they select their own tenants and they have relationships with their own tenants. in this model that we're recommending over here, we are, as i just described, we're going to enter into -- again

in the airport model, all of the risks and all the rewards from running the place, paying for the place, as well as finding the right set of tenants lies with the airport. in this model, we are selecting a master lessee, and our anticipation is that we can move a lot of risks to the operationing and maintenance side, as well as capital replacement side to the master lessee side. >> and then the port, can you speak to the port? >> yes. the port, i mean same conversation with the port as you are well-aware of. for example, the ferry building is a port property, and they went through a prioritization process with equity -- equity office -- it's a similar sort of long-term sort of lease, that equity has where they came in and put a significant amount of capital investment to redesign the facility. they had -- they put together

a very robust and creative retail vision and they have executed on that. so that is kind of feedback from the port that we received and we also spoke to equity office as well to understand how they went about executing it. >> san francisco has a port. [laughter ]. >> never mind. i know oakland has a port. sure, always good to know. >> if i could, following on that point, first of all, i concur with chair harper's comments about this is a great comprehensive presentation and i really appreciate it. we have justifiably been focusing on the construction for the last few years, but how this is going to work going forward is equally important, and to try to absorb this much information in this short a period of time is challenging. and our ultimate goal is not just to build a beautiful

building, but to have a well-functioning one. so i think we are going to need time and information to be able to do our due diligence on this. but to director nuru's point, i won't speak for him or anyone else on the board, i don't have any expertise in retail management or anything along these lines. but we do have folks in the city, and in the other counties who do have that. so what i would suggest is that we take all of the information, the assumptions in terms the pro forma, not just for this, but for the overall building, the proposed approach of rfp, the proposed -- the procurement approach of rfp. the proposed structure of master lease. and have some folks who have that expertise do a peer-review

of it between our port and airport and our economic development office, and i don't know if alameda county folks with expertise to validate this approach before we go ahead and issue the rfp. i would make that recommendation that we get that information and make the consultant available to a group of peer-reviewers, so those of us who aren't experts, as well as the staff, can have some validation that this approach, which is really the future of this building, that we have all been working -- that you all have been working to get built is strong and viable as it possibly can be. >> we will certainly do that and i did want to -- i meant to mention that we have been working with counsel, as well and i know joan is here today and has had a lot of experience in this area as well and can

certainly speak to her concurrence on this recommendation, but we'll be bringing all of that back to you again as informational at the next board meeting. >> i think in order for us to have an opportunity for that kind of external peer-review, we would need all of this information packaged and available to folks from some of those organizations, like i talked about. i don't know if there is going to be time to have all of that done so that we would be ready to authorize this in january? i still have a list of questions that i understand we don't have time for now. >> all we can do is try. >> one of the things that i would kind of like to know, because our deal with tjpa, ac transit's deal with tjpa, we participate in operations costs. so on ac transit's behalf, i kind of would like to have an idea of what that total nut looks like? so that we can talk -- when you come back, and we can say okay, of that total guess or total as to what

the operations and maintenance of the facility will be, that since we have no other transit operators in the building for a while, i want to be able to tell my folks at ac transit say, look, okay, we have got a sense of the operations and maintenance costs and look at our agreement with the tjpa and here is how much is being cut out by the master lease agreement. i would kind of like to know what our nut is, so i can kind of indicate to my people that yes, we have got this under control, and ac transit won't be stuck with a whole lot of operating expenses that it can't possibly meet. >> we'll be looking for the master lessee to tell us what it's going to cost, right team? >> there is some analyses and costs and revenues that sort -- that we have been working through. but the whole notion is

chairman harper the master lessee is going to bid on what it's going to run this project in a safe and secure manner befitting the transit facility and also going to bid on the retail and revenue opportunities that they are going to get out of this. s it is our goal is to sort of for a robust process to push that process and negotiate hard to get the mostly maximize amounts of revenues and [speaker not understood] >> i'm glad to hear that and i heard about the super security service carved out and i want a sense of that to pass on and anything else that we think of. >> on the security, we're going to be looking at them to provide a cost; right? we're not going to have that do you

want to speak to that denise? >> i think the point is that before we launch this, i think we would want to see the overall operating pro forma? so we know what revenues we expect, their projections, i presume for this and projections of the operators and what mtc and whoever else is going to be bringing in on the revenue side? then the cost side is going to be looks like the only other big cost is security and presumably we have an estimate of that. >> right. >> i think we want to understand not just what this piece is, but what the overall operating pro forma looks like. >> i can defer to counsel or shubert team on the issue, but again, we're not going to publicly -- we want the bidders to tell us what it's going to cost; right? we don't want to presuppose something. >> we should still have an idea what it's going to cost, a pro forma, what there generate?

>> can you speak to that, or deborah? >> our hope was that -- >> joan. >> our hope was, directors, that we have done the analysis, and we can certainly go back and relook and sharpen our pencils in the analyses, but our hope was to keep it at this point not making that public, so that we can -- so as not to give potential respondents any guidance on what costs or revenues are likely to be? so really, when they come back, we're asking them as part the rfp actually as an appendix, puting a real pro forma as part of the aearnings per appendix to substantiate their economic offer is a viable offer. so we're hoping that the numbers that we have, that we have sort of looked at so far could be

used -- could be not be made public and used as guidance internally for us in our negotiations when the respondents come back with their offer and their pro forma of revenues and costs of operating the facility. >> this is joan story, attorney for the retail lease and facilities management portion of this project. but part of -- the difficult of difficulty of providing a pro forma with any sense of accuracy the revenue stream portion of it is dependent on part on what each of the bidders is projecting is -- you know is anticipating as the likely tenant base? the revenue that can be generated from the tenants? they are the people because they are largely realize

operators who have that experience and in part, that is part of what makes their offer competitive or not competitive is how much revenue do you think you can actually generate from the retail spaces and the promotional spaces and events? does that sound realistic to our experts? and then i think as was said, there are some generalized numbers now about costs of operating the base building, but again, the costs of operating all of these services that are going to generate revenue we're looking to the bidders to give us their estimates of what they think it's going to be. >> so i guess what we'll need then to work through -- i understand the desire to not put all of the assumptions out in the public, but i think in

order for us to be able to have a legitimate peer-review, we would want to make all of that analyses and assumptions and draft rrp available to folks who are peer-reviewing and would just work through counsel to figure out what mechanism we need to make sure that we can protect that information and still stay consistent with whatever brown act requirements apply. >> okay. >> all right, thank you. a lot to digest. the next item, madame secretary. >> do we want to give a minute to -- >> yes. >> directors thank you. at the cac the other evening, we commenced the presentation that you just saw and like you, it generated tremendous participation from every member of the committee. and i only wish i had chairman

harp's wisdom to have divided the presentation. we went for another hour beyond our allotment, which you don't have that opportunity to do. but like you, we had -- we appreciated the breadth of this, but it's more than can be consumed in a single time. thank you. >> thank you. >> looks like we have one member of the public that wants to comment on the item. jim patrick. >> hi, jim patrick with patrick and company. i think we're make something strategic mistakes here. we have estimated the plumbing costs, we have estimated the hvac costs, the steel costs, and the notion we can't estimate the real estate costs or rental costs, i think is not right. that we should know how many dollars are available and what we're thinking here? and the idea of keeping it quiet is nonsense. because all the people that work in this business know -- i know what the price of file folders are everywhere. i think that is a mistake. no. 2, i'm really concerned

about we have 100,000 square feet and 50,000 is on the ground floor-level and i don't think you can generate the synergism that you need to get this really going and off the ground. sounds like the parcel left sale of it fell through and if you are going to go back and sell it again, include the other side retail and retailers in the area, so you have a much larger package to sell to create the synergism that you need to create the retail environment. right now you are looking myopickally and 50,000 square feet on the first-level is nothing and you will not attract the traffic. the other side is the traffic, the people who just don't buy and don't buy from us and are rushing to the bart station and

won't stop to buy office supplis and other things in the area. the poor customers in my experience are the commuters and you have to attract not only the commuters and because it's a small percentage of a big number, you also want to get the people living in the area. if you want a guchi there, you'll have to have more people than guchi. retail is a critical element and i could encourage this really be thought out. and understand the synergism and ability to make this retail thing work. so i think we're making a couple of mistakes here. thank you. >> thank you, mr. patrick, who i note is a retailer. >> all right we'll go ahead and call your next item. >> yes please. >> item 9 approving amendment to contractor no. 00-cngc-000 aauthorizing webcor/obayashi joint venture to modify the

trade work subcontract architectural design and designs, inc. for the construction efficients portion of design-build contract in an amount of $4,553,729 and [th*-rb/] increasing authorized direct costs costs by $5,553,729 -- , et cetera. >> this is a design-build package and awarded the design portion of that package in may, and we have now completed the negotiations, design, and negotiations with the contractor. we're here to recommend for award the construction portion. the scope of work includes static signs basically with the exception of the what is put in the kiosks. the work is related to wayfinding, to orient the passengers and the users of the facility how to get to their

reach their destination in the fastest way possible. this does not include any possible future work by the master lessee in adding monitors would be at their own cost as previously mentioned. >> this contract is based on phase 2 usage; right? >> phase 1 usage, phase 2 later on we'll add more. >> in other words, we're contracting on the basis that everybody is there, trains, buses, passengers; right? >> we would have to come back and add signs for lower concourse, train box and additional signage >> but everything on the floors that are active will be part of this contract, the way finding, directional signs and everything will be there as sufficient for all of the trains that will eventually be there? >> yes. this is what we envision right now. >> is that the way to go?

>> well, coming into the transit center, they within want to go to the park and need direction and want to go to ac transit, they need direction [speaker not understood] again, these signs are to help are static signs. >> they are not even electronic? >> no, they are static signs with the exception of -- let me go back -- with the exception of the monitors that we're putting in the kiosks areas for transit users. so they are for the use of the building. >> is the wayfinding will be simple for a few years, as i pointed out earlier? >> you have newer users coming in and the park is 5 1. 4 acres and know where the restaurants and amphitheater is and garden and playground

>> i don't want to install a lot of technology that won't be used and by the time it's used will be way out of date. >> the static signs are now and will stay for a long time to come. >> all right. any other questions on this? this is one we have been expecting for a while. >> so basically our budget was $3.46 million. we negotiated the base cost for $3.6 million. during the negotiations with the contract on the design side, we decided to include the monitors that were installed in the kiosks. >> a million dollars of monitors? >> we have a lot of kiosks. it's a four-block building. >> all right. >> so we recommending to fund the cost of the monitors from the program reserves. i did contemplate that when i

introduced the interim budget last month, that we would possibly put monitors in and put moneys in the reserve to do that. the recommendation is to award this package for 4.5 million dollars. >> why don't we wire it out and buy the monitors as needed from computer discounters? >> it was $1.46 million. >> and five years from now, the next estimate will be $.9 million for more and mores. monitors. >> they are needed for transit. >> i will stop hassle you, but part of the thinking to install that the nature of this is one thing, when it opens, and it's going to be a whole other thing

some years thereafter and to the extent that we're building for the hereafter, you know, that may not be smart. >> just to let you know, this accounts for tourists. we want tourists to be here. we want regional usage from throughout the region and we need signs for that, too. yes, the commuters may know their way around after a couple of months' of usage, but we want this to be a regional hub as well and we need the signs. >> ac transit will appreciate, believe me. >> i will move approval. >> second. >> i aa motion and second. you need roll call. >> the first and second, and no members of the public wanting to comment, we can go ahead and take a roll-call vote. director gee? >> yes >> director riskin. >> aye. >> vice-chair? >> aye.

>> director harper. >> aye. >> item 10 is presentation of the audit financial statements for the fiscal year ended june 30, 2015 and report to the board of directors. >> before the presentation, i just want to mention that we're now in our 12th year of receiving nothing, but clean audits. so i do want to commend our financial team for their excellent work on that. please. >> thank you, directors. my name is nathan with the external independent financial auditors of the tjpa. we have looked at the financial statements for the year ending june 30, 2015. we look at the transbay compliance with federal awards, and we look at the internal controls that are in place from the financial perspective of transbay. and i am happy to present to you that we had no internal

control-related issues. the financial statements are fairly as stated in all material respects and it was really a very clean audit. there were no adjustments necessary for us to get to this point and they work with us very closely in a very timely manner. so my presentation may not be as exciting as these prior ones and thought-provoking, but the reason i'm here, if you have any questions for me regarding the audit? then i am happy to answer them to the best that i can. >> well, i just gather required supplemental information, when we ask for more information and we receive it, we are not going to check on whether or not we're getting the truth? is that the essence of why you are disclaiming required supplemental information? >> required supplemental information is in addition to

basic financial statements, the balance sheet and "required" as required by governmental accounting standards board gasb and they say for transbay to include this additional information and while it's not audited to the same extent that the basic financial statements are. in the basic financial statement audit we get records and ask questions to management and evaluate the underlying assumptions that lend to that information and drill into the details. required supplemental information is in addition, to the financial statement and they put it into predicts, perspectives, but not audited to that level of detail, but make sure it's consistent -- nothing can be miss leading and has to comply with gasb, but didn't come to the level of the financial statement. for any and all financial

statements throughout the entire united states, nothing unique to transbay in that respect. >> any questions or a motion? >> it's just a presentation. >> oh, we don't have to accept it. that is nice. [ laughter ]. >> >> well, -- >> for the record, i have had a lot of problems with the audit -- just kidding. do we need more of a presentation? this was in the packet. so i was able to go through it and impressive audit. >> great. >> thank you. >> thank you very much. >> go ahead and call your next all right. >> yes please. >> highlight 11 is approving mine changes to board policy no. 009 investment policy and board policy no. 17, debt management policy and authorization to invest moneys in the california state treasurer's local agency investment fund. >> sarah will address you on this item. >> good morning, directors, sarah, and in recognition of the time constraints, perhaps

it's best if i just answer any questions, if you have time to read the item? these are relatively minor changes proposed to the investment policy and the debt management policy. >> seeing none, we do need a motion and approval on that; right? >> right. >> move for approval. >> director gee. >> great. moved and seconded. >> and no members of the public wanting to dress you, director gee. >> necessity. >> director reiskin. >> aye. >> vice-chair nuru. >> aye. >> chair harper? >> aye as well, that is four ayes, item 11 is approved go ahead and call your next all right. >> please. >> item 12 approving an agreement with 41 tehama lp for a payment to tjpa to grant certain temporary and permanent easements over portions of tjpa property generally referred to parcel h, et cetera. directors we're always looking for revenue and when this opportunity came, we jumped at it. andrew is here to answer any

questions. >> andrew outside counsel for the tjpa. this is 35-story building 398-units that is being built right on the property line between the 41 tehama property and parcel h, which is t jpa property and it's long-term use is for park. these are five temporary construction easements and permanent easements that are basically the air rights above parcel h. this building is going to provide tax increment, cdbg payments, and is going to provide housing. so it's in the tjpa's interest to accommodate the construction of the building by granting temporary and permanent easements. i can -- if the board wishes,

i can go into greater detail about the easements and the safety precautions that are built into this easement agreement? >> we're also getting a quick claim of the 3" gap between the two properties. 170 million dollars that was based on an appraisal. >> 170,000, excuse me. based on appraisal. >> i had no problem -- [laughter ] >> i'm used to it. >> the developer is pay -- has paid for the post of the appraisal and all of the costs for attorneys and consultants to negotiate the agreement. that will be paid out of escrow. >> these construction easements are really beneficial. i'm glad we're on top of them. can you get a lot of money for

the rights to somebody to pass their crane over your property i found out. good, we're making use of it. any questions? that is it? any public comment? >> no members of the public want to speak on the item. i heard a first, do we have a second? >> first and second, director gee. >> i. >> director risk yip. >> aye. >> vice-chair underey u yu. >> aye. >> chair harper? >> aye. >> four ayes, item 12 is approved. next item. >> yes, please. >> item 13 isaproving the minutes of the november 12, 2015 meeting. no members. public want to address you on that item. >> okay. so move to approve. >> yes, please call the roll. >> first and second, director gee? >> abstain. >> thank you. >> director gee abstaining director reiskin. >> aye. >> vice-chair nuru. >> aye. >> chair harper? >> aye. >> as well, that is three ayes one abstention and minutes are approved.

ready to head back to item 3 on your agenda. >> yes. >> item 3 is communications. >> i'm not aware of any. >> i'm not either anymore. seeing none, item 4 is board of directors new and old business. i'm also not aware of any. >> actually, at last meeting, we amended the bylaws to provide for additional support to the staff and the team working on the construction of the facility. and we did it with some haste, because i think there was a sense of urgency getting them into place and wondering in we could get an update where we are with that process? >> is that next meeting you are asking for that or now? >> now. >> so i have tried to schedule a meeting with you. >> the next step we'll be meeting with director nuru. >> okay. do we have a timeline? >> next week sometime. >> okay. because again, i mean the

reason why we brought that with some urgency now had a month ago, so we could get the additional resources on to assist the project to get done. >> yes, we'll be meeting with director nuru next week. >> good question. >> all right. moving on to item 5 is the executive director's report and may not be aable to get through all. >> i'm going to try to move through this quickly because we have to be out of here soon. i did want to start by announcing that the applied technology council and the structural engineering institute of the american society of civil engineers commissioned an independent jury to identify the nation's champion of earthquake resilience and have projected our project, the transbay transit center as the recipient of the award for extraordinary innovation and seismic protection of buildings. so that is a huge honor. and we're very proud of that. we'll be presented with the award this friday at a gala

event at the san francisco maritime museum, and as you know, the transit center is destined to be operational for buses after major earthquake events enabling people to safely evacuate the city and the target is immediate occupancy performance level arch 975-year earthquake, which is approximately equal to 8.0 event on the san andreas fault. it was critically important to me from the outset to have a facility where thousands and thousands people with ultimate capacity of 46 million people a year that it be safe. as you know, the design incorporates state-of-the-art seismic analysises in study energy dissipation during earthquake you and advanced modeling of interaction with

the box with [speaker not understood] [tpra-euplt/] work steel cationings, design, using advanced sign and analysiss to demonstrate that they are stronger than members they connect to and i meant casings. so earthquake resilience and becomes we hope a catalyst for a new wave of development in the immediate neighborhood and i hope other people follow our lead. so i want to thank the council for this award as well for their hard work as well on this. also in the interest of time, i think instead of going into the construction update, what i wanted to do, directors as you know, last month we presented you with our quality control/quality assurance program which is very robust and one thing that is very critical and very important to us is the waterproofing of the transit center. we have done a lot of work on that and a lot of work from the design standpoint and also the methods we're using through

quality control/quality assurance process and wanted the board to get a quick briefing and if we could have the team come up, please and present on that? i think we start with randy. go ahead, randy. >> we're going to go through the waterproofing system overview and particular emphasis on the roof park where rain falls and irrigation. we'll touch on those as well. we have some of the systems that we have put in place on the roof to protect the building from the water. going to go through the quality measures and timeline for installation. this is a good time to talk about this because we're about ready to start the above-grade waterproofing at the bus tech-level. so this is an overview. again, in the interest of time, spent a lot of time on the train box. which has waterproofing

membrane that is basically between the shoring wall and the foundation wall. it's a sandwich that is between the slab and protection slab below it. it's in place, obviously, the foundation is there. the mat slab is there and it's working well and it's a very secure system that should last us for the length of the duration of the building. at the bus tech-level we have the structural slab that is forward. we'll put down a hot asphalt water proofing and 5" slab that the buses actually travel on. at the park-level we have what we call waterproofing membrane no. 3, that we'll go into a little more detail here. we have a waterproofing membrane 4 that doesn't show up because of the location it is

in the park. but this is the park as you can see, we show the slab below, the red dashed line is this waterproofing membrane we'll look at. it turns up at the edges. we have either soils, sand and soils or the geosynthetic fill, a lightweight structure that creates the mouths without adding a lot of unnecessary weight to the project. i'm going to do this with a visual aid. you see a structural slab that slopes to drains. first thing we have down there, and i'm available if anybody wants to look at it afterwards a protection layer goes down to separate the all waterproofing membrane from the concrete. there is an 80-mil thick

waterproofing membrane over there. so any movement or seismic event, and the seams are overland and overlapped and welded. and before they proceed on, they'll take the protection board off and test it again electronically and actually we're going to do some spot-flooding of the area, just to make sure that the electronic testing is proving out. that the system is solid and secure. we'll then put down an electronic mesh or mesh between this layer and the second layer, which is again the same thing. when this gets down, this gets tested in the same way and then we pass electricity through the mesh, test it again to make sure there is no penetrations,

no built-in potential for leaking there. there is another protection layer that goes over that and then a little thinner, but still robust and durable protection later, followed by drainage mat here and 4" of protectionconcrete slab on top of that. the last item on the graphic is a rigid drain mat as part of the landscaping work. that then -- any water as it comes through the soil or geosynthetic fill is directed to get the water as quickly and efficiently off of the roof. we think we have a really good system. we think it's going to be a long-lasting system and it's going to be murder to get to if there is a problem. so we have

built into that a -- yes -- you can barely see it over to the left. it's a monitoring system, to tell if we do have a problem and that monitoring system -- i have lost my ability to go forward, ed. >> go ahead, randy, just start speaking to it. >> that what i am pressing. i'm frozen. okay, that is -- we have what we call a monitoring jar system. that is throughout the entire length of the park. we have 32 areas where we've subdivided into kind of a grid by raising some of the waterproofing up as it's installed.

32 discreet zones and through the structural slab is a tube that connects down to the monitoring jar. the monitoring jar as you can see are in these locations. they are approximately 85' down the length of the park as two of these jars at every location. the jars allow somebody, the maintenance crew to walk around after the system is installed, and look up to where the jars are located, which is tucked into the area between the column and the ceiling. there is a reveal in there and these little jars are there and they can walk around and check if there is water in the jar that is a bad problem and able to be fixed by taking the jar off and injecting urethaneinto that that would flood that entire 80' by approximately 50' area. to seal the leak that has occurred up you there.

this slide shows during construction we have the electronic monitoring and testing and flood testing and after the membrane is installed, we have the jar system to monitor for leaks, which would also then be able to be used to repair any of the leaks. the fountain, which director nuru brought up before, every fountain in san francisco leaks. we have gone to great lengths to take into the trough that runs the length of the fountain to put in a primer coat. it's either mopped or troweled on base course, two intermediate and top course of materials that creates in

effect an envelope throughout the length of this trough; which will -- the water as you can see in the little image shots up and comes down and down into the trough and pumped back in and recirculated into the fountain system. if we have a leak in that, we have in place below it the first system that we just went through. so we have got more than bets and suspenders type of operation with all of the layers of membrane you we have to protect the building from water. >> what is the life of the material? >> 20-year system and the same in the fountain itself. >> so if you could speak to the quality measures, quality control, please? >> steve, webcor/obayashi.

the installation subcontractor has proven experience in the transit center and installed all the below-grade waterproofing and contracted to install the others as well. he will be certified by the manufacturer and his installers will be manufacturer-trained prior to performing any work on the project. this product data and submittal were reviewed and approved by the construction team, as well as the design team. mentioned the manufacturer administered training, we'll perform a mock-up on-site for installation and any work that works out the specific details related to penetration and wall flashings and special conditions. we have manufacturer technical field support on-site periodically and there before installation and on a weekly base. we have a 20-year warranty on the waterproofing system.

>> what happens after 20 years? >> the warranty is up after 20 years. >> and the life of system it sound like is up, so then what happens? >> if it were to fail or leak, which is probably unlikely, you would have to replace it? >> and master lessee will do that. [laughter ] >> okay. that is what i have learned. >> continue, steve. >> yes. construction monitoring throughout installation. we have our quality control team that will be continually monitoring the installation. there are many steps along the way of quality control. everything is documented and 360 is our quality control system. to make sure there are no open issues remaining after the work is complete. this is a rough timeline of the installation. currently we're handling our preparatory meetings in preparation for starting work. our initial meetings happen in

january. manufacturers-administered training starts in january as well. mock-up waterproofing done in february and all the materials delivered to the site march and april. and installation will start in may. there are many steps in the process. i won't go through it in detail, but to say every step has quality control and testing at each step of the way. it's mentioned it's a two-layer system with redundancy and each layer is electronically tested with spot-water testing. and really, essentially continuous inspection all the way along the way. with that i will turn it over to steve. >> good afternoon. steve with turner construction and just one more slide, just to reinforce the quality control and quality assurance aspect. as steve mentioned through each step in the installation, there will be inspections. we have also engaged a firm for

their waterproofing expertise and they will provide oversight and inspection throughout the installation process. they have already been doing that for us from a quality assurance point of view on the train box and waterproofing the product, as well as starting to do that on the top of the train box process that is getting started now, too. so they will continue that, monitor the various tests and inspections and keep that going throughout the process. we or i would be happy to answer any questions. that is it. >> so in the interest of time, if the board has any questions on the quarterly financials, otherwise my next item to report is that mtc reported the results of their cost review of the rail extension part of our program. they completed that study in november. they brought it to their committee in november, but they had a lot on the agenda and weren't able to hear it. so they brought it to their committee yesterday and heard the item. and since we don't have much

time, mark if you want to say a few words about that? next steps as the board knows we have and a process we're working through and we'll be briefing director gee and that is excelled to be released for public comment later this month. >> can we just push this item to the next meeting? >> we will. i just wanted to the board know it will be released pore public comment next month. that concludes my report. thank you. i will just go ahead and call item 6 citizens advisory committee update and ted olson let me know we had nothing else to report. >> item 7 is public comment to address the authority on matters that are not on the calendar and have not received indication that anybody wishes to do . >> that is it. have a great holiday!