whether it's on overtime or they're regular straight time, but they have committed to providing those officers. and i recognize, i think we all recognize that in extraordinary circumstances, they could pull an officer somewhere else. emergencies happen. big emergencies happen once in a while, but we're -- we've worked very hard to get this agreement so that they are committing to providing that, and they consider the transit center to be a very high priority, and so they are in -- they're motivated to be there. >> just to add to that that the budget is certainly based on an expectation of a certain level of service and to the extent that service isn't provided, tjpa won't be compensated for services it doesn't receive, the process calls for invoicing as well as auditing, so there is a process to make sure that it's getting the service it needs and has contracted for. >> thank you.

call the roll. >> clerk: all right. i heard a first and a second. [ roll call. ] >> clerk: that's five ayes, and items 8 and 9 are approved. go ahead and call the next item? >> item 10 -- >> this item will be presented by sarah dibord chief financial officer. >> good afternoon, officers. sarah dibord. for the benefit of our new director, this is a new director for us. our usual policy calls for us to come to you with the fiscal year budget, a narrow in april, a final in may, and budget

adoption in june. as we're putting in agreements of leases, they call for the formation of a primary tenants committee and obligate us to provide us to the primary tenants committee in the fall and for the board to approve those projections by january of this year. so that's why this item is before you. again it's not a final fiscal year budget. but at this time, based on what we know, and again, very preliminary because lincoln is still in the process of bringing on service contractors for the transit center, so these are estimates of expenses, estimates of revenues. the total is just over 54 million for fiscal year 19. we show three scenarios. the -- there are -- as has been

presented to you before, there are some base building and tenant requirements that are needed to get the center ready for retail operations, and there are some different funding scenarios for funding those improvements. at this time, we have approval from the cost review committee that was formed through the interim city financing to spend at least up to 25 million on those improvements. the scenarios that are shown before you, scenario one shows what would -- what the situation would be if the city financing funded all of the improvements. scenario two shows the number if we used half of the early naming right payment for the -- towards the improvement. and then, scenario three if all of the early naming rights came in as used. so we'll continue those discussions with the trc. our next meeting with them is

in february . i will keep you posted on that, and the final agreement would be reflected in the budget that comes to you in may and june of this year. with that, i'm happy to answer any questions about the numbers and the development of the numbers. >> yes, mr. harper? >> yes. i have one very big difference with this, and i've talked to mark about this already. the first level, the first round of tenant improvements should not even be an operating expense. that is part of finishing the building and doing the building, and we should make that distinction because that's the way it's made in the private sector. when you get four or five people together as an llp doing a commercial building, they're expected to give all of the money necessary to get the building up and running, and that includes tenant

improvement allowance. successive tenant improvements are then considered operating expenses. it's considered if you've been operating, you have built up a reserve and you've done all those things so when tenants change, then, operations take over. that's the way it works most of the time, and that's, you know, what investors want to see is an end to their duties, their contractual duties to contribute money until the building is finished. so i think this is just -- this doesn't comport with that. it doesn't make sense. i mean, the building has to be finished, and then we start operations. i mean, we've been talking about that, and finish means getting the build out in terms of retail. and the more we can devote to getting, you know, tenant -- good tenants in there, the more tenant improvement allowances we can do, the better tenants

we're going to get. that's one of the rules of the whole thing, and then, we can start building up through better rents the reserves we need for successive tenants if they're necessary. and of course, there's going to be turnover as it comes in. so i think applying tenant improvements to an operating expense budget at the first round is inappropriate. and then, the second thing that i've got a problem with here is that i think, at least speaking for ac transit, that the operators have an expectation that as -- that all the revenues -- operating revenues will be devoted to cover operating expenses, and only the shortfall will be actual. and so there's no reason why the naming rights shouldn't be applied to revenues as much as necessary so that there's no shortfall that the operators have to cover. there will come a time, probably where the operators are going to have to come in

and do that, but i think the expectation we have is reasonable. you can't all of a sudden take your naming rights is what you're doing here and essentially creating a great operating reserve right off the bat. that can be built up over time, but in the meantime when we operators are trying to get as much operations off the ground as possible right away, we'd appreciate having the -- and require having as many of the revenues as possible devoted to covering the actual expenses so that we don't have to contribute. so i would say -- those were the two corrections i would make or two changes i would make to that, is talking about tenant improvements. and san francisco's already said 25 million, which was more than this, any way, they're going to cover as part of their building completion, that we go along with them on that.

it's the way it should be done, and not even have that as an operating expense for this year. and then have and apply the naming rights over to covering at revenue as much as necessary so that the operators don't, in the first year at least have to come up with a shortfall when a shortfall doesn't exist. >> i'll take your second point first. actually, a shortfall would exist in the first year. the scenario one assumes, again, using city financing to cover all of the tenant improvements, and i'll get to that in a moment. but it also assumes using the full balance of the operating and maintenance reserve, and as is pointed out in the staff report, that's not necessarily the best or most prudent financial practice, so that's not necessarily a recommendation we would make in the drost budget that comes before you in may, but you can see in scenario one, use of

operating and maintenance reserve is nearly 17 million. that assuming you putting the naming rights payment into the operating reserve and using the full operating reserve to offset expenses in the first year and that minimizes transit operator contributions if all of those expense numbers came to fruition. on the first point, we're not the private sector, nor do we have investors. we have discussed with the city. it can be done both ways. i have no preference. we can -- if it's the board's preference, we can put the tenant improvements -- we can put the initial tenant improvements in the capital budgets, but the full budget which may include the naming rights, those funding sources would also move to the capital budget, so it would be a zero sum gain in terms of operating

expenses and operator contributions. >> well, ic concede from the city's standpoint, but the naming rights have always been presented for the last three, four years in all we've been talking about when we're talking about operations. naming rights have always been fully allocated to -- fully allocated to cover operating expenses, no questions asked. so if in fact the city's coming in and -- as it is and covering tenant improvements for at least the first round, then i think all the naming right should be devoted. now you say they are -- >> in the first scenario. i'll remind you of the item that i presented -- i don't recall if it was in november or december of last year. last fall, we presented on the tenant improvements, base building improvemented. the total is estimated to be about 36 million. at this point, we only have commitment from the city to fund up to 25 million. >> right. >> so there's another 11

million as was presented in the item, the naming source payment is the best source for that gap if the city declines to allow the use of city financing. tjpa would have to come up with the money for that gap. or as you stated, if we didn't offer competitive tenant improvement allowances, the rents would not be -- would not rise to the level that we've estimated in few tour years. >> but the first year is being completely covered and then some with the 25 that they've agreed to, so successive years, they'll have to decide apparently in the next -- whether they'll go the full 35 or not, that's going to be in february ? >> we'll be discussing that with them in february . >> so i'm just saying that it's -- it's going to be rough on us, and it's okay. but last meeting, we talked about having a zero for the first year, 18-19, and now we're up to half a million for ac transit and that sort of

thing, for essentially that half a year of operations. actually, it should be a full year here, but it starts at june. but that's going to be our expectation, that naming rights fully applied, and so i'm going to be looking for that to make sure that they don't go to tenant improvements in the first round because it doesn't make sense. that's part of the build out. and san francisco's been recognizing it. i greatly appreciate it for doing that, and that's what we should be following in these things. so as this comes, i'd like to see that addressed. >> yes, director. >> just -- if i could clarify. i don't disagree on principle, but when this board approved the deal for the city financing when we went to the city, we did not have these costs included. so whether the private sector does it or not or whether it

was the right thing to do or not, the deal that we made with the mtc was to complete the building. so now subsequently, i think mark has been successful in convincing the city through this cost committee that the base building improvements that are needed to -- in order for a tenant to come in are legitimately part of the construction, they've greed to come in now and allowed tjpa to use city financing for that. but there's still a delta. that's only 25 of the additional 36. the additional 11 which is really the tenant's part of the tenant improvements. i think it we're all agreeing it would be ideal if the tjpa would do, mark still has to convince them through the city, it's based on the fees that the city would receive from

buildings, some of which haven't started construction yet. so it's extending the city, so i understand their caution there. if they don't agree -- i think one question is, would any kind of support from maybe the transit operators, in terms of letters to this committee be helpful, because ultimately, if they don't provide it, then, the naming rights is the only other source of funds. so we can all say we'd rather those go to operating budget, but that's the only other source of funds. and then, the transit agencies are going to be left making up the gap, and that's what the scenarios reflect, so i don't support options two or three, but it's not our unilateral decision at this board. we're kind of asking the city to give us more than we originally told them we needed in terms of scope for them to cover what they're financing.

so i fully support and i'm hopeful that you all can be successful in working with the city so that we're in the option one scenario, and if there's a way that we can be helpful in terms of just making it really clear in terms of there will be an adverse impact, in terms of ac transit, that's just a reality. we can direct staff to do this or that, but in reality, we're kind of relying on the folks that we're asking for money from. >> what i'm saying is it would be great if staff had these numbers out. all of these numbers should have been presented to everybody much earlier. >> i think they've been presented all along throughout 2017 at least. >> within, tenant improvements have only been talked about for the last six or seven months, without any real number as to what it is. but everybody should have been able to understand that a number was going to be required to finish out the first floor

and the second floor. i mean, we're not going to leave it so that, you know -- and the -- a number's going to be required to put in retail, and these things should be put in ahead of time so that we can come to adjust it. because what it does, it get expectations otherwise when those numbers are missing. >> dr. harper, if i could clarify a couple of things. first, we're going to be advocating to use all of the tenant improvements, money from the city financing. the cost review committee was very flexible last time we met, and they told us we can take 25 million for both building improvements and tenant, so she showed quite a bit of flexiblity. they did not rule out giving us the additional 10 or $11 million. they have to think about it. in february , we're going to be making the pitch for more money, and i'm optimistic about

that, but when we presented the asset management's agreement to the board and the board approved it in march, in it, we had identified 27 or $28 million as needed. we had indicated we would seek reserves as funded by city financing to fund that. after we talked to crc, cost review committee, they wanted to think about it. so we did present a number. initially before that, our thought process was that we were going to -- [ inaudible ] -- that's why we're at where we're at. as we received information, we provided it to the board. granted, it's -- continues to be refined. and you know, you've got my commitment that we're going to continue to look for operational funding for our operations, and you'll see in the -- in our year in review

that we were able to get approximately $11 million this year just for operations. 5 million from mtc -- and another million from a human rights agreement. so we are going to be getting a significant amount, but i know it does not solve the operators issues for the first three years. i recognize that. >> there will come a time when all the retail and operators are going to benefit greatly from ac transit. there's no question, but that won't be for a few years. for the first two, the great part of the tenants that are in there are going to go to the community, and i know that, but it's difficult to sell ac transit on the notion that for these first couple of years when essentially as a practical matter you can look at it and say we're not getting any benefit from that.

it's just a little harder sale. and i'm trying to get ac transit to realize you're going to benefit and you're going to get the money, but i'd like to get a running start at that. >> i would look at it director harper, this is a running investment that's going to save money in the future. if we have a robust retail and market opportunities, we should not be asking the operators for money based on the numbers -- based on the numbers, the projections that we have right now and thesubsidies and numbers that we've projected, we should not be asking you for subsidies. >> would it be helpful to have a letter, or us to appear at the committee meeting to help you make your case, i'm sure both agencies would be happy to do so. >> it's a public meeting, and ac was at the meeting last

time, so we'll keep you informed. >> i do think it would be helpful to have letters of support from the operators if you can't find time in your schedule to come to the meeting. i want to thank you, director reiskin for your comments. i want to highlight a point mark made. these numbers do not assume regional measure three. >> do we know what the timing would be if it gets on the ballot and is approved in june, what the balance looks like for us? >> i don't know that information. i'm told if it does pass in june, there's a chance of funds being able in fiscal year 19 but certainly 20. >> could be as early as january 19 that we would receive -- >> any other questions from any directors? okay. call the rolls. >> no memobers of the public

wanting to comment on the item. there is a first and a second. with that. [ roll call. ] >> clerk: that's five ayes. item 10 is approved. your next item is item 11, approving the minutes of the december 19, 2017 meeting. no members of the public have indicated they want to comment on the item. >> november . >> second. >> clerk: no objections, all in favor? the minutes are approved. we're going to go ahead and go back to item -- we're going to move back on our calendar to the executive director's part and we'll do a restart on that. >> happy new year's, directors, again. my report, as i mentioned, will include two presentations that will cover three items. the first presentation will be the annual program status

report that we present to you the accomplishments in 2017 and goals in 2018. it'll also include the project labor quarterly agreement that you have a copy of. second presentation will be a brief report by collier international on the retail leasing update efforts so far, so we'll start with the first presentation. this will be a team presentation. i'll -- i'll share with you the highlights and accomplishments, and then we'll follow that with program-wide accomplishments in 2017. we'll have the construction update, and we'll have two updates as well as operations update and then we'll move to 2018. can you...so starting with our accomplishments. under the leadership of mayor ed lee in 2017, we were able to fully fund our construction in phase one. in january we closed the

agreement with the city and mtc. in november in partnership with the city, we were able to sell $146 million of community facility district bonds that completed the funding picture for us. that was a great success for us. also in -- also in 2017, we were able to secure significant amount of operations funding as i mentioned earlier. we secured $3 million from proposal 2, and $325 million for dtx. also, it will provide a significant amount of funding for operations in total. as i mentioned, we secured $11 million annually for operations in 2017. we also awarded the asset management agreement with lincoln that helps us to be in a position to manage the

property when construction's completed, and we increased or staff. we hired a facility manager and a chief security officer to help us manage the facility. next slide, please. we partnered with ac transit and the golden gate transit district and received a favorable lease with caltrans for the bus storage facility. that lease saves approximately $1.6 million a year for ac transit for the bus storage facility. we also partnered with ocii and negotiated a very favorable lease with caltrans also for the underground park. we received that from caltrans for $1 a year. that results in significant savings for the underground park. and we continue to help with the -- creating economic opportunities, and we also added the high speed rail to our board last year.

the addition of high speed rail was significant for us because as a member of the agency of the board. it gives us a statistic leadership and partnership necessary to develop local, state, and federal support to bring high rail to our region as soon as possible. with that, i'll turn it over to sarah. >> i brought the checkbook. >> with that, i'll turn it over to sarah to talk about the program wide accomplishments. >> i can give you the wire information so you don't have to write that check. >> thanks. >> mark already hit the funding for us. fully funding, naming rights agreements, operations funding. another operational source that we procured this year was licensing fees from the neutral host. basically the cellular network

antenna system in the building. that will continue to generate revenue as we move forward in operations. and we were able, after a very long process, to finally secure some funding to continue to advance to preliminary engineering. our dbe and sce programs, we continue to have high numbers in the design and construction phase, and i'm certainly looking forward to seeing those numbers continue in operations. overall over the life of the program, we've awarded about 21% of our contracts to disadvantaged or small business enterprises. that equals about 350 million, and that equates to payments so far of nearly 250 million over the life of the program since 2004, that is. we currently have 35 professional services or architectural type contracts in place and nearly a third of those are primed by small or

disadvantaged businesses. in the -- on the construction side, web core obiyashi put out a total of 15 trade packages, and a majority of those went to sbe's. the vast majority of the lower tiersubs are sbe's, and you can see that we also have some good participation on the bus storage construction, as well. and with that, i will hand it over to dennis. >> good morning, directors. we will go through the phase one 2017 accomplishments related to the temporary terminal, the transit center, bus storage, the project labor agreement. i will present a few items, and

ultimately ron will cover the budget schedule and risks going forward. the temporary terminal. it had its seventh full year of activation. we also had abm start the negotiations and coordinations with our new asset manager. started that handoff process and discussions, and also negotiated a two year lease agreement with tischman-superior for the gifting greyhound building that's over at the temporary terminal after the operations are shifted off the temp terminal. in regards to design and improvement for phase one, there was some procurement. we had the neutral host, cellular das, the cellular service was awarded. the physical security, and the emergency notification was awarded, and also an amendment to the public works agreement to have the mission street bus

island scope added. and also for the second street project, adding the natoma extension and the bicycle parking area also was added to the second street under that agreement. now, phase one construction. this graphic, we have been developing over quite a while now. the park has a lot of trees. continues to show that. when you move down to the bus deck level, the yellow area and the left area shows that an important part that the coding that was on the bus deck was completed. moving down to the second level, a lot of activation for core and shell. the webcore is completing out their completion of the contract for tenant improvements. and at the ground level, you'll see most of the yellow is the muni bus level. going down to the lower concourse, a lot of the yellow

you'll see is just basically concrete finish work, punch out, cleanup. and then, on the left side portion there, you see continued the interior finishes such as carpeting, paint and such in all those rooms that are in the lower concourse level. and then, the train box, that was basically the build out. they're almost finishing out on the punch out activities. here's the pictures. the one on the left is the picture i used as an actual of all the work shown on december 9th, 2016. if you look at the one on the right, that was taken last week. major differences such as the awning, and all the work that's up on the park. a lot of work has happened in 2017. what you can't tell is even the replacement of the temporary beale street bridge, as well. going into some of the highlights of construction, all the topping slabs were

completed, all by the third quarter. doors, framing, hardware installings, all installed and for the most part. the bus stop, commuter island, all those coding systems completed. and especially the grand haul, raidi radiant heating was completed in 2017. also, the exterior awning, the entire awning as perthis picture here is all installed. all the items, the vertical glass curtain wall, like around the grand haul or level two, all the sections west of first street are all installed. when you go up onto the roof, the w-8, which is the glass canopy is also installed. and also the sky light and the glass floor up on the roof was all installed in 2017. the roof top landscaping commenced in earnest and worked hard in 2017.

the trees. there are 76, over 75% of the trees installed. and boston properties started installing the major parts of their gondola. and the pathways, they're almost done with that half mile pathway that goes around the entire park. it's almost completed and is going well. onto other elements. ac transit commenced their bus testing on the bus deck in december, and that will continue. and then, the bus plaza, we opened the 5 fulton service on december 26, and this picture was early january for that operation that's happening in the bus plaza. other items of note in construction, the plumbing and hvac installations made progress throughout. electrical power distribution has been a focus of many of our conversations, but switch gear, transformers and such were all

delivered and installs. escalatelores, elevators and installation. the 12-k power into the building was completed september 23rd, and then, the water connection actually happened as well. moving over to the bus ramp, the bus ramp is complete, substantial substantially complete. they finished that in 2017. all the walls, testing to the bus ramp was completed. and then what's really left with the bus ramp is commissioning and elements, security elements such as the cameras and antiram barrier that are still being commissioned once the soc is fully operational. and then, our phase one, moving over to our -- our outreach for pla, this is part of the project labor agreement. we continue -- woebcore continued to work with hard

hats. turner and webcore hosted a veterans lunch on november 11st. we were expecting 30, we ended up with over 50. it was a successful event just for the veterans on our project. and then, they continue to get the outreach to bring veterans into the construction industry. the labor hours in the -- our breakout for the various -- from east bay to san francisco continues. it shows our milestone of over 4.4 million hours now of craft, which is cruising right towards 5 million by the time we're done in craft hours. it it's an amazingly large number. we had three safety incidents in the third quarter. we had zero lost time, we gave us a total of 11 incidents for

the years. but zero lost time. it was very good on the team's part. we had a total hours in 2017 of 1 million hours of craft. we had well over 700 workers continuing to work on-site every day throughout the entire year. moving onto -- so in labor and the safety, i do want to note that there had been continued to be labor harmony throughout the year with the pla. the pla provided a process for resolving issues such as jurisdictional disputes that were all resolved and worked through. and in the bottom right, shows some of the labor elements, safety week back in april. that was extremely successful

for the staff, especially the ronnie lott motivational speaker part. every one of the workers showed up for that one. our goal is 16.7%. we're holding at 19% after all those years, so we're more than 15% over that average at this point, and it's been going very well. the design procurement for the bus storage, we obtained approval of our plans, we executed an air space lease with caltrans. we awarded a contract to gelati construction and completed all of the archaelogical work at the bus facility that was remained after the west approach project. in regards to construction, we started on may 1st. we completed all the excavation. the bridge deck, the bridge

itself over second street is already poured. it's already done. we obtained a calfire permit. it took us a while. it was a hard fought arduous process, but we got it for the administration offices, and we are still holding a late june 2018 schedule and held schedule throughout. regarding community outreach, we ended upholding regular meetings monthly. we had the ten-day look ahead. one will go out today that i'll send out after this meeting. we have our newsletters, we have our social media highlighted. we continue to have the faces of transbay. we have a 24 hour hotlines for the transit and bus storage facility. and then, the graphic on the right shows the number of complaints has been trending down. that very first year was the highest.

we did have in 2015, a blip, which i would call it during the year of steel, and also our bus storage facility -- the bus ramp, i should say, so our footprint doubled in 2015. but in 2017, we only received 12 complaints the entire year for the massive amount of property that we're working on out there. it's a huge testament to the team working hand in hand with the neighborhood. and then, the student internships. had a great summer with them. can't wait till they come back. they'll have a very different kind of setup because they'll have more operations next summer than the construction you see in those photos. and then lastly with my point, we have updated our jobs map. we are now over 22,000 jobs created throughout the country. we have touched 45 states. we're still the elusive

wyoming-south dakota-montana -- hawaii, but we're hoping to get those as soon as possible. so with that, i'll turn it over to ron. >> thanks, dennis. it's always enjoyable to hear about the progress and all the accomplishments in the year and then i get to come up here and bring down the mood a bit. but i only have four slides and then we'll move forward. in terms of budget, we clearly are holding our own. the eac hasn't changed. we're at 2.15, well below our budget. in the last month, we expended 25.4 million, which is just shy of what ought to be paced in terms of work in place, and an uptick of compliment of 39.5, so holding our own on that front. and then, we get onto schedule,

which continues to challenge us a bit. since last month, we slid into may, unfortunately, showing a substantial completion date of may 11th, as opposed to the april 23rd for the transit center, so we have clearly some work to do to keep reigning that back. the work also slipped up a bit, less apt mitchell on the transthe -- aptimism on that, but again, not reigning that back again. we'

we're -- looking at the more details streams of activity associated with the construction, most everything slid out a bit in the last month, and it's really the mep continuing to be the drag point. i am hearing that some milestones are being met better with the exception of electrical continuing to be the -- the true drag point in terms of constraining the next steps of commissioning and placement of other mep equipment. in terms of risk and mitigation, where are we with risk? clearly, there's an erosion of confidence on webcore's ability to partially secure a schedule recovery. the reliablity of their

schedule has been pulled down a bit by some unanimous participation by fisk electric. in terms of -- i hear in the last week it has shifted and we are starting to get fisk electric to participate a little bit better and dialing in what's it going to take to get this done and support the operations in june? on a side note, we did have a very positive meeting with ac transit upper management a couple weeks ago. i think we have better alignment on expectations and what our associated constraints are, and a strong commitment that if we reach substantial in march or even as late as april, they've assured me that they'll be operating in june. so that -- that alignment is

stronger. as soon as i heard that, i'm hearing about the stepping into may. so we still have to keep working on that. again, the production rates need to be improved with fisk. we've had some success with mitigation in terms of maintaining other streams of activity and stepping up on meeting milestones for substantial completion. so what are we going to do different? you know, i've been talking for months about the mitigation, about augmenting and supplanting under forming contractors. i think we've seen some success there. short of substituting companies, which i don't want to do, i have been started working with webcore what i

call hypervigilance and looking for better metrics to measure in the coming weeks and looking at a weekly check in. i had received earlier about 25 key electrical milestones to trend through the first week of february so we can speak with more confidence with the operators and the agencies whether we're going to make it or not by measuring these -- these milestones. just this morning i received an expansion on that. i have over 70 milestones going through february to check in on a weekly basis and measure the misses and the makes and recalibrate forecast. and we have remedies alled contractual measures in place,

and assessing liquidated damages, which are starting to tick off in the beginning of december and is reflective in the current pay app, and that is ticking off at $5,000 a day and soon to transition into 10,000 a day. come april, it's $50,000 a day, so hopefully, that will get the attention of the under performers and start seeing a turnaround and a better firmer grasp of where we need to be. with that, i can take questions or we can move onto phase two with skip. >> if we could finish the presentation and then present questions, if that's okay. okay. phase two. >> good morning. skip sacco, engineering manager

and design manager for tjpa. i wanted to give you an update of phase two dtx accomplishments for 2017. tjpa secured fundings allowing the design elements common to the rav design, plus the tunnel options study, which -- which addresses the concern of the cut and cover issues within the city. so -- limits, so -- cover limits for the project to proceed. we also -- we did the 30% design on the common elements to rav, and to date in 2017 completed about 70% of that work. the tunnel option study was completed on november 8th, and we delivered that report to the board in october, at the october meeting, the details of that. and then, the rail operations study was completed on october 31st, and those details were

also presented to the tjpa board at the october meeting. we submitted the draft scir to fta for the final review, and we completed a final update to the phase two ridership study. and the updated study found the data that we presented in 2008 for the forecast cambridge registered study was done, it confirmed those results -- it confirms that those projections were accurate. caltrain and high speed rail will be updating their studies -- their ridership studies and we'll again update the information for our study again this summer. and this is all valuable information needed to -- in updating the potential funding coming from the passenger

facility charges and how that -- so all this information is needed for our projections for funding for the future project. we continue to work closely with the city so that the -- to make progress on bringing their rav study to conclusion, and we continue to work closely with california high speed rail authority, sfct, and the city. okay. and i'm going to hand this off to martha for operations. >> good morning, directors. happy new year. this is martha velez with the facility manager, and i will be doing the section and be followed by sidney. so a major focus this year was getting key organizations in place to start getting -- to start work on getting ready to open. a first step, as mentioned earlier, was to contract with the asset manager, lincoln, to

lead the way. lincoln's agreement was signed in may. lincoln's agreement also included partnering with specialized experts to support running the center, brb to run the park and to make it an attractive engaging environment by programming it with activities, collier's to manage the retail leasing, and pearl to design and operate the digital media platform which includes transit and way-finding information as well as selling advertising on the 200-plus screeni 200-plus screens for revenue generation. lincoln in turn signed major contracts that would support the operations planning as noted on the slide. i won't read the -- won't read the entire list. so with lincoln in place, an

important next step was to setup a framework to manage the literally hundreds of tasks associated with opening a site. this took the form of implementing weekly monday afternoon transition meetings and creating transition schedules, of which you see the highlights every month. with major contracts in place, as noted on the previous slide, solid progress was also made by township who created approximately 50 rfp's for other needed services. however volume dictated that these be staggered in issuing them, so 28 were posted on the tjpa website by the end of the year, with the rest of them to be posted this week -- last week and this week. examples of services are pest control, water feature management, locksmith, and sog i had progress was also made by the architect with plans for

greyhound and amtrak completed. ordering the furniture for soc and operations hub is noted here because it is a long lead item and key to setting up the back of the house operations in a timely manner. i think you heard sidney earlier mention that this is going to be the hub of operating the transit centers, the security operation center. finally, the first step in establishing an identity for the transit center was purchasing the appropriate url's to enable us to develop a robust website. a main focus for brb in 2017 was getting to know its customers so they could ascertain what types of activities to program. as an example, one of its outreach activities was to interview riders at the temporary terminal. they were asked what they would like to see at the transit

center. every single one of them said they'd like to see a place to have cocktails. so this and other outreach efforts informs their plaping for the creation of the activity zones as shown on the map. and you can take a look at the map, there's different areas that are colored to represent areas of active activities and passive activities and then just gathering places. with regard to sponsorship, it's been noted in earlier presentations to the board that approximately 30% of the organizations that are contacted turn into actual sponsors, so over 100 contacted thus far in 2017. the expectation is high for 2018. perfectly's wo pearl's work in 2017 was

focused on the design in the management system. refinement continues; however, the design work is basically done. what you see on this slide is a sample of what one of the interactive screens could look like with each box representing a point of entry with information on it. similar to pearl, kol letter's focus in 2017 was -- colliers focus in 2017 was going out to market to fill the retail spaces. the retail merchandising plan was developed and approved. the marketing campaign was launched. a key aspect of the marketing campaign was creation of the collier's website, so a prospective tenant can go into the website and register, view a video of the site, read the lease template, arrange a tour, and then, also submit a letter

of intent. and finally, a financial performer was developed that included read parameters and tenant improvement allowances perthe market that in turn generated the budget that you saw earlier. with pri, it was recognized early on that aside from activities in the park, activity and service was needed through t out the center for visitors while the retail spaces were under construction. as such, lincoln hired pri to develop a popup program. the program is well underway with additional details to be discussed in 2018 -- in the 2018 section. with the transit operations, a

first step was to establish the financial framework with regard to how ex-pans projections would be treated and creating the expense allocation structure. this was setup in april, and again, this was the structure that you saw on sarah's budget presentation. this was followed by creating a weekly transition planning framework meeting that included developing some of the work that came out of that -- those weekly transition meetings was developing operating protocols for the bus deck. like who was responsible for calling 911 if a small fire was to occur. again, there was a collaborative effort of all of the operators to develop this framework. also, negotiations were commenced for the various agreements needed to operate out of the transit center with greyhound completed and approved. also completed was the entry for the number five bus to begin operating out of the bus plaza. and lastly, and i think this

was mentioned earlier, successful bus tests were conducted on the bus ramp, bus deck, and bus plaza. sidney? >> in 2017, staff coordinated with the american transportation authority to approve a review of the tjpa security plan. earlier this morning, you authorized the executive director to execute this agreement. staff negotiated the mou with law enforcement services for law enforcement services with sfpd and also earlier in this meeting, you authorized the executive director to execute this agreement. staff conducted a multiagency panel discussion of potential quality of life issues at the transit center during the december citizens' advisory committee meeting.

panel included the executive director of homelessness and housing in san francisco, multiple command and staff officers from sfpd, andrew robinson and myself. staff also issued an rfp for information security, cyber security services in november and developed rules and regulations for tjpa's park in october and now i'll turn it back over to martha for the master plan. >> so this is a schedule that is usually in ron's section. you have seen it many times before. it is intended to provide an over -- an overview of operations readiness as compared to construction and transit readiness. so for if a ilt isefacilities,s been to be ready by the end of march with the exception of

display, so the deadline continues to be the end of march, and sidney will say a few words with security. >> now that you've authorized the executive director to execute agreements with lied and sfpd, we'll have security in plan to manage security at the transit center which flows into the second part of three. the operational training is designed to ensure the transit center stewart staff is ready for operations by integrating the training that the security team will have to manage normal operations and respond to emergencies, and there will be completed prior to the transit center opening. and then, the third item, the security integration. this will be through the psim, and that will be complete in june of 2018 and now i'll turn it over to sarah.

>> so 2018 funding shifts to focusing on identifying full funding, seeking full funding for phase two, as well as seeking additional securities for operations. at the end of this week, actually, tomorrow, we'll be submitting an application for the state's transit and inner city rail capital program for construction for dtx, 275 million. the cellular network operator, boingo will continue to work to sign carriers. we've talked about supporting the rm-3 measure which would not only provide those additional operatal fund but include 325 million for phase two, and we are closely monitoring all of the infrastructure discussions going on in washington and

what's happening at the federal level. >> for phase one construction, i have two slides that are both actually pretty straightforward. we're going to be substantially complete in 2018. items that are happening this year are really the starting up and maintaining of critical systems. complete the installing, the integration of all the data networks. the systems, the neutral hosts, the cellular, that'll all get installed this year. audio video will be installed. way finding and digital signage, that all gets put up this year and of course the artwork will be going up very shortly and being commissioned. and then ultimately the roof top landscaping will be done in spring of this year as ron mentioned. moving over to the bus storage, same item. it's going to be substantially complete this year. finish the bus link r