>> wondering if fitness s.f. wanted to elaborate a bit more what they think is going to be happening there, a huge portion of the transit center. excited that you guys have brought this trop sal in. maybe you want to address. >> my name is sebastian, founder of fitness s.f. and c.e.o. thank you you erica for presenting that information. background for myself and fitness s.f. my brother and i are the primary owners. family owned and operated business. this coming year will be our 30th year in the fitness business. both my brother and i grew up here in oakland, california, and u.c. berkeley and operated under a previous brand, and five years ago opened up fitness s.f. we presently have seven locations in the bay area. nearly 400 employees, and we are

committed to this site, we are very excited about it. our budget for this location is between 8 and $9 billion of investment to put this deal together. we have operated successfully all around the bay area, stretching from santa cruz, up to santa rosa. and particularly focussed on san francisco. some of our other locations right now are twitter, mid market, we just opened up embarcadero center two. we are at the fillmore center, up in noe and market and the castro. ninth and division at selma. and also have locations in marin, oakland and looking forward to this location. we have already engaged our architects, already on our ninth revision of our plan and work with lincoln and colliers to come up with a really strong plan for this location.

already started positioning staff and resources to get this thing, this project going. as soon as we have your approval, we have been working on lease documentation and we are ready to sign our agreements with our engineers and architect and get this project going as quickly as possible. we have also have three different union contractors we have been working with to get pricing on this for us. and, we are really excited, and we really appreciate this opportunity and think it's going to be a fantastic location for everybody involved, and we believe we are going to draw between 2 and 3,000 visits a day from the local community, with i will provide a great anchor tenancy, helping a lot of the other retailers, coffee shops and flower shops and others in the center. and we have done that successfully now in every location that we are at. i'm here to answer any questions. >> i have one.

since you are going to be such a dominant -- i'm not that interested in your local, but transitory, a.c. transit will bring in people and take them away from the terminal. if you have information about your projected prework, postwork, load in your facility, it could have some impact on when we want to get busses in there, and how late we want to have busses leaving there. if in fact you end up with not just locals, but a lot of people who work in san francisco but commute back and forth to the east bay. >> that's a great question. i don't have any specific information about this facility or projections about it, but generally speaking, we will have a strong corporate presence, so, all the people that are coming in to work at microsoft and salesforce and trulia and other

businesses, if they are coming from oakland, a.c. transit, coming in from other public transportation, we are going to add memberships with them and corporate deals and those people will be coming in before work. if you look at our mid market location, between twitter and uber, our primary times that are the busiest is right before work, from 6 to 8 in the morning, lunchtime, 12 to 1, and then 5:00 p.m. to 8:00 p.m. i think we are going to be very strong. historically speaking, director, when we have opened up in other locations, the businesses that are around us tend to open up the earliest because we have such a huge draw and impact. for instance, like a pete's coffee, for example, when they locate next to us, they try to open as early as possible because of the huge influx of people we bring to their. >> lockers and all that sort of stuff. >> absolutely. state of the art facility. >> to make sure that we have busses in there in accordance.

>> absolutely. in addition, in addition to what we are doing there, we also have an agreement with the b.r.v. to provide fitness programming at the park that we are doing complimentary, no charge to the tjpa, we'll start that proposed right around the grand opening. it's going to be open and free to the public. yoga classes and kids programming and general fitness classes that people from the public can take for free. no charge, no commitment, no charge or expense to the tjpr or the city. we are fronting that investment, and it's part of our program to give back to the neighbors and communities that we serve. >> thank you. >> thank you. >> if i could ask erica to come back and walk, thank you very much. walk us through the financial slides. erica. financial slide in the last column, can you quickly walk us through it? >> is somebody asking questions about it? it's pretty straightforward. >> anybody have any questions,

first, before -- >> i thought we went through it very quickly, but to your point, it's all good news, better than projected. so, that's fine. >> ok. so, motion on the board? >> yes. >> good? >> yes. >> i'm sorry, motion. >> i move 11-14 approval. >> all right. >> first and second on items 11 through 14, and no members of the public wanting o comment on the items. one member of the public wanting to comment on the item. mr. patrick. >> good morning, directors. jim patrick, patrick and company san francisco. i see they have this gross sales, first of all, we made a standard lease a while back, approved by the board. the leases which you see before you don't seem to follow in that concept. so, a went to b, i don't know why. number two, you have the gross

sales part in there. i believe that's a problem. and i think it's 2%, but i don't have time to read all this stuff. the reason i think it's a problem, i think it's fraud happening. when i say fraud happening, you are asking the retailer to account for his sales. you have elaborate area in there which details what his sales are. does it include tips to the waiter, does it include free meals, whatever it is. and you are going to go in and audit all this. i suggest you are better off without that. you may give up some revenue, i would much rather have a happy tenant who is really doing very, very well because i know he will pay more money at the end of the lease cycle and will get it back. but in the meantime, these things, these gross rents in these leases are nothing but a headache, headache for both parties and then you have an antagonistic relationship, i

think you want to build a partnership relationship. so i suggest you delete the gross sales part of this lease. thank you. >> that concludes members of the public that want to comment. we had a first and a second. with that, director chang. [roll call vote taken] six aye, 11-14 are approved. with that, item 15. >> presentation of status schedule and cost estimate and funding plan for phase two of the transbay program. >> i'll provide this presentation. almost a couple years since we presented you with a comprehensive update of the phase two. last time we did that in the middle of 2016. so, i thought we would put you in time, and funding picture is looking brighter that we provide

you with a presentation. starting with the scope, looking from your right to your left, scope of phase two includes underground pedestrian connector from the east end of the transit center into the embarcadero bart station. phase two also includes thinning out of the train box we built right now with vertical transportation platforms, mechanical and electrical equipment, ceilings and other elements. and then we will tunnel between the west end of the station along second street into a new station underneath at townsend streets. so tunnelling will be a combination of tunnelling, and also looking at option to reduce cover and increase the limits of tunnelling. we also, we have included the tunnel stub box at the end of the alignment, basically, to

future undergrounding of the trains into the 22nd caltrans station in the future. purple, preliminary pennsylvania avenue extension. i'm showing the picture right now, not part of phase two, but as i walk through the presentation i'll explain to you how we want to deliver both of them together. some of the activities that took place since we updated you in 2016, refreshed the cost estimate in 2016, this on the market conditions at that time. we have not updated the cost estimate as of that time. in 2017, we undertook a tunnel option study to look at opportunities to reduce the cover and traffic disruption. updated the ridership study, to ascertain how much we can

generate from facilities charges should the board and our funding partners agree on the facility charge for the transit center, from caltran, high speed rail. and we also updated our real operation report which again confirmed we do need three tracks from the 4,000 station into the transit center. and we updated our cost estimate for rider acquisition. in 2018, we participated in the rail operations peer review, which again, confirmed we need three tracks to operate efficiently into the sales force transit center, and partially completed the 30% design for the project. we were not able to do the complete design for 30% for the project because we were not able to secure funding for the design, and advice of the funding partners we agreed that we would refresh the 30% design for the elements of the d.t.x.

that are common to the alternatives studied under the alignment at the time, looking at different alignment, so only updated common alternatives. moving forward, move into the rest. also applied for t.r.c. funding, however we were not successful. applied for $275 million, we intend to apply next year and escalate the amount by $400 million. moving forward, we are looking at achieving four milestones to complete the construction of the project. the first milestone, in turn a new program, because that's the first step to secure the $1 billion in funding, that's in the plan b area. then we need to complete our 30% design and the documents needed to support the design, as well as the new start process.

after that's completed, we will go to shovel ready milestone, after that, we'll get the full funding and start the project. i'll go into detail on these steps. for the new start process, cumbersome process, includes five steps. the first is request the f.t.a. to enter the program, we have not had this discussion with the f.t.a. yet. but early next year. once they approve, two years project development phase. we need to secure approval for the document, we need to finish our 30% design and most importantly, we need to be able to commit 30% of funding of the nonnew starts funding. if we use our current estimates of $4 billion, funding is $3 billion, 30% of that, about $900 million. and we currently in our funding

plan have that amount. once the project development phase is completed, with the f.d.a. approval, move into the engineering phase of the project. that phase will complete the construction documents. we need to secure 50% of the nonnew starts money, $1.5 billion based on the current estimate. and we also need to investigate to secure the 100% of the nonfederal money. the next step would be to request full funding and receive the funding, requesting the full funding, and budgetary actions on the part of congress, as well as approval for the administration. the next step with new starts, 30% design documents, and it includes many elements. completing the 30% design is very prominent in that.

we also need to do value engineering, risk assessment, construction reviews. we need to produce technical baseline report for the tunnelling, and during that process, we would also update our cost estimate for the project. many steps. once we reach 30% design, our next step will get to shovel ready status, acquiring the right-of-way, producing the advance contract, we want to clear the utilities out of the way before the main construction starts, so that takes place before shovel ready. we want to finish the construction documents and submit the documents for new starts so we are in position to receive the full funding of the agreement. and then we would get the full funding grant agreement once that money is awarded, we will award our first contract and go on with construction. some of the items we are working on right now, we have request

for $9.7 million as mentioned, 30% design remains to be done. also talking with m.t.c. about getting the remainder of the money from measure three and working with f.d.a. to secure approval of environmental document, i hope to get in september, but it's quite a bit of work left to do, this is under comments. and where we are at and assuming we will get money when we need it for engineering works, right-of-way acquisition and construction. we can finish the 30% design in december 2019, we can complete the construction documents and be ready for, to advertise, waiting for funding in december of 2020. this is based on a design built procurement. it's a shorter process. and we can finish construction in february of 2027 and we have, we allowed for a year for

testing and commissioning so we could be in full operation in february of 2028. doable schedule but funding dependent. for all, for all phases, meaning engineering phase, acquisition, as well as construction. it's optimistic, but it's not overly optimistic, if you take the funding as a side. our high speed rail, we want to get there in 2018, fourth and king station in 2029. don't want to go to the fourth and king station, we have a much nicer center for them to come in. developing phase two in concurrent with the pennsylvania avenue extension project. we would like to develop them in parallel. like to have the tunnelling and the construction document for phase two ready to go in case we get funding and when we get

funding while we are developing pennsylvania avenue extension project. we don't want to combine them early. if we combine them early, we will not be able to have funding for the whole project, so double up in parallel, if we ever combine it. much easier to seek funding for one project than two projects. currently the status of the study, anticipate a joint resolution approved by the san francisco board of supervisor visors and mayor breed, some time in july or september for the preferred alignment. once that's done, bring the resolution to the board for your consideration to include pennsylvania avenue extension in the transbay program. currently it's not part of the transit program with you would like to include it with the board's approval. this is a break down of the cost estimate not updated in 2016. it's a $4 billion project, $2.4 billion for construction

costs. this includes escalation for 2023 at 5% rate. it also includes a total of $918 million in contingencies and program reserves. to get the shovel ready, we need approximately $347 million. this is a break down of what's needed. a little bit more than $2 million to produce the advance utility contracts. $204 million for rider acquisition, based on the latest estimates. need about $95 million. we have included $45 million for reserves and contingency. we have had some discussions with m.t.c., on the use of the $325 million of money to get to that point. discussions were positive, but we need some additional discussions with them. if we were able to secure the

$325 million, we would have enough other funding to get to shovel ready status. this is our potential funding sources, conceptual in that we are assuming some funding from some partners that they have not agreed to yet. i would have to qualify that, since director made me aware they have not agreed to the facilities charges. with that, i can go, walk you through it. the top box are committed funds partially spent and partially not spent. what you see in yellow, what we consider committed funding for the purpose of news starts. they include tax increment, regional measure three money and the sale of black fort. in total, they add up to between $1,000,000,001,200,000,000. and next we have the new start money in the area for $1 billion. we also have satisfied or assumed $350 million in the

future for sales tax from san francisco. we are assuming we would request to get $400 million in total, we think this is a very reasonable number given what the partners got in san jose for the phase two project. $730 million. so, we think we have a project as big as that, and as important. and promised $550 million in the 2018 california high speed rail business plan. the time of that money is dependent, but document clearly shows that we are going to get $550 million. also we are contemplating passage of facilities charge, and agreed to with the funding partners, if we come to agreement, generate between

$750 million to 1.5, and $750 million assumes $2 surcharge for caltrain riders and $8 for high speed riders in 2018.

>> just like face two, phase one will generate quite a number of jobs. phase one is an area of 44,000 jobs in 49 states. -- 47 states. i was corrected by the construction manager. face two, we expect to generate $8.7 million of craft hours and 41,000 jobs. we will be talking about the economy right now.

it is very attractive since we are almost at employment. this is a ten-year endeavour and this becomes very attainable in the future. i will be happy to answer any questions. >> commissioner davis: one of your start door slides you talked about environmental certification. the document was certified at one time. >> the original document was approved in 2,004. we've undergone some ideas and changes in the design. we are seeking environmental documents from the fda. >> commissioner davis: thank you. >> i want to thank you so much for the presentation. i think it is very timely and very exciting. thank you for coming to our transportation authority. you saw the strong interest in partnering and still have a

desire to fund the design. we will note that is a small initial payment. we want to come back at the mic and our board to continue that partnership with funding support and even the city impact fee. we are in discussions on that. i wanted to note the process of 30 8% design are based on a delivery method. can you speak to that? i think that prop k. request include some funding to continue to look at that method. >> it has not been updated. i want to caution the board on that. it assumes the design has been built. as part of our 30% designed we'll be looking for human efforts. will be looking at the design to be built and design p.c. alternatives. we will bring that to the board for approval next year. we did it a study last year and we concluded that the design

build finance is the most reasonable for us. but we need to refinance a little bit more and move forward. i can tell you from the discussions we are having so far, the build looks the most attractive, but we need to go through the study to determine that. >> i am sure we will watch at the dive -- we will want to dive into that question. i am sure it is an important one for lots of reasons. >> chair nuru: director gee? >> vice chair gee: we are excited to get the train all the way downtown. this presentation hasn't come to the gp v. yet and we're looking forward to having that for the full board. my comments are just myself, as a director. i think there are three things. number 1, we've always been respectful of whatever san francisco wanted to do and how they wanted to get the train

from fourth and king or wherever it goes wherever all the way to the salesforce centre. we are in san francisco and this is san francisco. we want to do what is right for san francisco. having clarity on pennsylvania avenue is always helpful. not knowing where we are going does not work for anyone. so having clarity on pennsylvania avenue is helpful. we look forward to working together with two g.p.a. and the safety to get that going forward. and from my perspective w we hae to get the train downtown first and may be pennsylvania avenue. between pennsylvania avenue first and waiting for downtown does not work for the train. and thirdly, your last slide, about funding, no one can do it by themselves. it will take all of us doing it together. i can certainly say that gpb does not have enough money to do it by ourselves. i don't think anybody has enough money by ourselves. we need to work together and

have a lot of checks -- checks come back together. i look forward to having this come back to the gpb. >> when you are talking about alternative procurement, do we have legislative authority for the procurement? or is that something we would have to seek if we decide to go forward with a recommendation on alternative procurement to create. >> at one point we thought we did. i know there are some changes in state law. i know that it was not renewed. we have to go back and look at the p3 alternate option if it becomes feasible. it would be part of our study. as whether we need legislative action for any of the procurement methods. >> ok. >> chair nuru: director sesay? >> commissioner sesay: it is perfect timing on completing phase one and starting phase ii. i want to get as engaged as

possible in the financing strategy and solutions with face two but i also want to clarify, because you talked through various sequencing of issues and the new stats and so on. that for the purposes for your next phase of work and the approvals that will come later that you have sufficient funds, and at least committed and not subject to additional approvals elsewhere. i just want to make sure you are aware. >> right now we are seeking $9.7 million from the board. it goes to the board twice. it was favourable the first time around on july 24th. that would be the second time around. whatever the board approves is always contingent on funding partners as well as improvements. we will not issue any notice that proceeds unless those two things are in place. we have funding partners to give

us some money on the board approved contracts to do the work. >> commissioner sesay: so the $9.7 million gets you there create. >> sorry, the $9.7 million is partial to what we need to do to do that 30% design. in total, it will cost us $23 million to do. so that is the partial. we talked to n.t.c. in may. about seeking money for the design. the composition was very positive. the discussion was that we will start collecting tolls in january and we would come back early next year and request residual money to finish the design. the $9.7 million takes us to early next year. we will do that. thithis project has always beena funding constraint. hand to mouth. i expect we will continue that way.

>> commissioner sesay: i expect that as big as this project is, lessons learned from phase one. we should continue to collaborate with funding partners to rule out the process. >> absolutely. absolutely. >> i would just add, thank you for the presentation. it is seeing the future, but as you share the presentation with ascap you should also share it with partners in the region. not just the group that is here, but all around here. there are several major transportation projects that have been in the works and we should make sure we are collaborating and they know what we are thinking. what always happens is we are trying to dip in to the same bucket and it becomes difficult to make choices. >> will do. >> thank you. i think we have one member of the public who wants to comment. >> thank you. can we go back to the first slide?

but -- you can refer to your presentations. i would like to attract your attention to these yellow circled structures. what you will see is this a design that is exposing train tracks two is affecting the ventilation system. this is why you need these structures every 800 feet. it is impossible to have the same kind of event system as the bar system. if you think about it, there is no event structures. it is basically compounding itself. and then when you look at the top, this is what is causing the pattern to be short. and you can restore one train per platform. if we fix us we have enough capacity for all the trains. but in wrapping up, very quickly on the various comments, in london, th the structures are ey 1212 miles. we have not done anything between the 7 street station and transbay.

we don't need a tunnel box. this will go. we are going right through. once again, if you go back to this picture and to the structures, you will see that as soon as it gets to pennsylvania avenue, the structures disappear because pennsylvania is way more. funding, the npc approved at. they have $4.25 billion. out of that, there is 1.08 billion just a service the tee clo, for crying out loud. what are we doing here? let's see. ok. on the $550 million, there's a problem right there because you are spending $3 million in the big dig. if you go anymore -- locate this will be decided in a lawsuit

that is coming up in october. >> thank you. >> clerk: that concludes members of the public wanting to comment on this item. item 16 is authorizing the executive director to execute an arrangement with the u.s. corporation to extend the agreement to december 31st 2019 to provide program management controls to close out phase i and completes the preliminary engineering for face two for an amount not to exceed $5.7 million. >> chair nuru: directors, i can speak to this if you'd like. >> good morning. the amendment number 4 is before you for your consideration. i want to mention -- oh. i will get this. that is mentioned previous, time is of the essence. we have to move on this project and all eyes will be on this and

the timing of $200 million a year in escalation reflects to about $70 million a month for every delay per month in the project. just to keep it in perspective. the timing is so important to this project. this amendment before you extends the term and agreement from november 23rd, 2018 through december 2019 with an increase of 5.77 million dollars. the total contract value of 34 million dollars. it comes in to watch what parts. it continues phase i, services to support transition to operations and close out of phase one and increases the fee for phase i service to $200,000. this is a minor portion. this is the final close out of phase one. the balance of it is in face two. it is a continued of face two services to complete the 30%

design as described in the design and recommend implementations of the tunnel option study and rail operations to increase the fee for the face two services by 5.5 million dollars. that is for this time. a year and a half. we are talking $5.57 million. to keep this project rolling. continued phase of service, phase i services will be funded from the program reserves and the phase i program as the baseline budget. face two service will be funded for property funds. and thank you to the sfcta for consideration. we will get that funding at the july 24th boar board meeting. that allows us to continue -- just continue our operations so we can keep this project on schedule and allows for us to take advantage of the free money that comes into account that comes to us in early 2019.

so the amendment number 4, the scope for phase one is really limited, as mentioned previously. it is really close out of the project. you can see it is document control. it is closing out the environmental process. and helping with the facility readiness and t the ongoing program management and coordination that is needed to close that all out. the balance of the money is really intended -- is all for the face two scope. and as mark and his present -- his presentation had said, it elaborated there is a myriad of things that have to be accomplished. it all has to be accomplished

within a two and a half year. we want to be shovel ready. we want to have those documents ready to advertise those contracts. we want to be ready to go. so in the face two scope, really what we are doing is a coordination with the f.t.a. to finish the environmental document and to bring it to the board for the certification. that is one big milestone we need to get. we need to review the 30% pnt design submittals and all the -- that are included in that environmental document. we are doing the tunnel to reduce cut and cover construction and doing day pedestrian connector. they are involved in the dt x. elements such as the townsend second street and the transit city -- transit centre set up. these are just elements and all these things are going on

together and it requires a lot of efforts. we need to update the design criteria of risk and vulnerability assessment, manage preparation of the technical baseline report and a lot of other documentations are needed for new starts and it all needs to be done within this timeframe to give the project on schedule and have the funds available when needed. assist with the request for f.t.a. new starts. that is all part of that. we got that billion dollars that we need to have to fully fund this project. it requires upfront work at the work starts now. we need to get that underway. when he should provide program controls her face two and include updated budget and scheduling, cost monitoring, cash flow planning and continue on coordination with the coordinators. high-speed rail at caltrain and

the city of san francisco. this scope is needed. the team is well positioned to provide the necessary service within this highly skilled team. as you are aware, as presented in the previous presentation, by the end of 2020, we will be complete with a bid toe should we need to be complete with a bid document and be ready to advertise the construction packages. we are talking 2020. we have a lot of work ahead of us. we want to be shovel ready at the end of 2020. we have less than two and a half years to complete all this work necessary. time is of the essence. a tremendous amount of documentation and various plans need to be developed to not only meet the schedule for the construction, but to provide the necessary requirements for the new programs that we can obtain a billion-dollar grant, and therefore fully fund the project.

the sfcta understands this. they understand the schedule and they understand the scope. that is why they have given us that bridge. i call it a bridge tunnel. it gets us from now through february to keep moving on this project. they understand that time is of the essence and we need to fulfil the scope. >> chair nuru: when you get to the last slide, skip. >> ok sure spee won't know, go back. you've got it here. >> ok. so we are going back to this. were going back to the board in july 24th. the sfcta board gets a 9.7 that will take us through to februar. they won't pick up with those funds. as i mentioned before, at 200 million-dollar escalation every month, $17 million delay. we need to just keep moving on this project.

so the plan is to use the pmp seat to really focus mainly on the scope associated with the 30% design and then, and future scope, we were going to put out an r.f.p. this year to be able to bring in a team to transition to pick up the remainder of all the other activities. we need to continue this project through anthonys to get through all the way to the end of construction. so we need to manage this project. what we will do is we will have a new pmp c. project through an r.f.p. process and the scope will include manage the design of the dt x. and munimobile gesturing connector and the transit trai drain box. it will document require -- the third party agreements will be

very -- if they are very involved in very difficult but we need to do that and work with our partners to get that all done. that is part of the new start package that we need to do. we need to do the safety and security management plans and implement -- and also we want to use that same pmp c. team to implement the results of the study that we talked about and that was highlighted in the presentation earlier. >> i think the board has heard enough. >> ok. >> i think you major points. >> as you know, i think i am very critical of the connector at this point. i have yet to find one b.r.t. director, just one that would call me and indicate something of any interest. they still don't know what they're going to do with the embarcadero station or how such a connector would come into what

they need to do with embarcadero station in their own plans to make it functional, and i still haven't heard from anybody as to who the passenger is coming from either the east bay, or up from the peninsula that would not want to connect to bart holland earlier than getting to downtown san francisco. i don't know where these passengers are coming from and why they need to do this. at the same time, i have no indication from bart, per se,, even though they have known of my concerns, and you are at a meeting in which we had a joint meeting with bart director's. so so if we go out and we spent -- i don't mind all this other 30%. it is great. we need to do that. but i am not convinced that there's any reason to spend 30% on the part connector because i'm not convinced it is needed. and bart can't figure out how they will incorporate it. >> let me answer. one of the things is we have been working with bart. they haven't said no.

we are proceeding. the big thing is we met with n.t.c. and the $325 million we are getting from the fund is conditioned on providing that tunnel. >> i have not seen that condition. >> he is very clear -- >> commissioner harper: i have not seen that condition. >> anyway, they made it very clear to us. >> commissioner harper: you know, i have checked on that too and i have not seen that condition. spending this money back when i can't even figure out who is going to use this tunnel. it might be fine for residents who want to stay out of the ra rain, into the tunnel, get through a couple of blocks without being in the rain. that is not the point for us. the point for us is to serve passengers. and i still need to find out who that passenger is. why they don't, you know, get on the bart at mill bright and why if they are coming from the east bay, where bart is everywhere, why they haven't found barred by

the time they got to san francisco on our buses. so -- even though n.t.c., i have been in those meetings. a lot of the commissioners love bart. they think everything needs to connect to bart. but we need to figure out, for ourselves, if we are spending money that would otherwise go do dt x. and pennsylvania avenue, whicwhich is all critical. instead going to something that no one can tell me why it is needed or how it can be incorporated. i've got that problem. i would encourage, for the initial stock, that we add these people -- have these people focus on what we really have to have as soon as possible. and not worry so much about getting to bart. >> may be i can respond to a little piece of that.

i think there are passengers coming up in the south on high speed and on caltrain, who for them, the fastest trip would be through taking one of the train services to the centre and transferring to bart to go to the east bay. i think there is a viable business model there. i do not know what the numbers is of those passengers but i think it is something people would do. i do have a question on the recompete. and from what i understood from your slides, is the work, -- i'm trying to figure out how the timing lines up. in september of you coming back and taking on the pennsylvania avenue alignment, but then there would not be work happening on it until the recompete for this contract under the existing contract. >> chair nuru: th the scope of this contract is limited to face two. >> ok. >> and the idea is that we will release a fee at the end of this month or early next month to continue face two services and once we get a team on board will transition the new team to do face two.

that team, the new team, can do project management as well for the pennsylvania avenue extension should the board approve the inclusion of the pennsylvania avenue in the transbay programs and allow us to do the work. the new team will do that. >> but the new team is not the existing team queen. >> no. we reduce the scope and it allows us to continue with a 30% as little as possible. and team -- time to transition a new team in. >> so we are trying to make a reasonable break. the break is around the 30%. we are trying to have this team carry that 30% through and bring on a new team and engage them with possibly a future rabb and transitioned them over to pick up the others? all the new projects going forward, we want them associated with the new team. it is a handoff. there has to be a systematic handoff. >> the procurement studies, all

that would be the new team. we just need the existing team to carry on the 30% design drawings. so we can find an opportune time for a transition. >> ok. >> chair nuru: director sesay? >> commissioner sesay: i appreciate there is an r.f.p. going out but i'm thinking through this transition, how does the funding, the federal grant funding seems very important. how do we ensure that that actually gets delivered on with this flip or change in teams? >> we are looking for a smooth transition. the two g.p.a. is a small staff. the institution is largely with the consultant team right now. we need to get a new team on board and transitioned that knowledge and have the new team pick up all the tasks that we can do right now with the 30%

design and find a transition point between now and several months from now to transition over. it will not be, you know, it will not be a cutoff process. we need a transition time. >> chair nuru: it will be helpful for the sport understand how you think this transition will happen. it sounds like you are committing us to 30% but it may consist -- discourage people from coming in on new projects. i have said this to you. i think that should be clear on what that process is as opposed to inching and inching and then we are stuck with certain peop people. >> that's not the intent. the intent is, and the scope is to cut that. but like i said, and you feel my pain. there is a continuing. you have to cut this but you cannot leave -- you have to allow that transition to happen.

this is the best time to do it. and so we are trying to do it systematically and make it all work. >> commissioner sesay: i also want to acknowledge that this started in 2,004. over a decade. th.the opportunity to have somee come and create a competitive process is helpful, because i want to understand also, in terms of -- i know you are not the city, but in terms of the city contract and policy requirements, to what extent that would be embraced if possible as you are doing it. >> the current contract we have for the project management and project control services was done in 2014. so it has been since 2014 with this particular contract. we went for recompete in 2014 and there was a selected team that submitted at the time. >> so the r.f.p. that is coming,

the extent is to embrace the contracting requirement? >> i'm sorry let me ask sarah. let me ask the experts on the procurement. >> commissioner sesay: what is that process? >> we include all of the city requirements that are included by our federal requirement. for instance, local hiring, we can't include that -- those clauses in our contract because of federal prohibitions against geographic preferences. but we do include all of the other clauses an and yes. some are very easy for us to monitor compliance and minimum compensation ordinance, for example. we see timesheets and hours. i can tell you that minimal compensation ordinance is not usually an issue on this proje project. since compensation is lower than you will see on consultant charges. we also keep track of city

changes. so 12 acts, no travel. that became law after this contract was entered into. it is not part of this contract, but would be included in the contract entered into for the next team. thank you. >> clerk: we have one other member of the public who would like to comment on this item. >> chair nuru: ok. >> hello. thank you very much. now that we just have one project in the transbay terminal, we now have this unique opportunity to rethink the location of the townsend station. we suppose that we will relocate

the station to seventh street. everything works. dot station location works with both. but what i would advise you to do is to connect both sides of mission creek. so now you are surveying not just southern soma but you are serving mission bay, you are surveying ucsf and you are serving the new arena. but when you think this forward, it is no cost to you. you can start engineering the future b.r.t. station that will be under high-speed rail. that will connect directly to alameda by the 16th street alignments. my suggestion for you to you is you spend your money there instead of wasting this money near transbay and embarcadero. thank you. >> clerk: that includes -- that concludes members of the public would like to comment on this item. >> chair nuru: do we have a motion on this?

>> clerk: we will move to item 16. >> chair nuru: second. >> clerk: item 15, -- i'm sorry, item 16. [roll call] item 16 is approved. >> chair nuru: next item, please. >> clerk: as i noted earlier under items three, item 17 has been posed on -- postponed at this time. we will move on to item 18. >> chair nuru: i am looking for mike. i saw him earlier. come on down. [laughter] he has been an ironworker since 1985. he does not look like an ironworker.

he is an ironworker. [laughter] in 2,005 he became the secretary and treasurer for the san francisco building and trades council. he helped us immensely for us to be able to come to excuse the projecproject liberty agreementr phase one and phase two. he helped us do that. that included 28 unions that benefited the contractor and benefited the g.d.p. and benefited the unions and nonmembers as well. he has been instrumental in leading the joint administrative committee that we meet quarterly on that was formed by the p.l.a. they were instrumental in helping us get the workforce, skilled workforce that we need to build the project. he has been a great supporter of the project and he is retiring in august. i want to wish him thank you and happy retirement. >> i guess i will talk.

[laughter] before you vote. one of the things -- i'm proud of my advocacy on behalf of working men and women in san francisco, but one of the other things i'm proud of his making things work in this town. making things work for the city i love and for the working men and women i left. and this particular project and the agreements are an instance of that. early on, we were able to enlist our national organization in advocacy for some of the funding decisions that help the project go forward. and as the project began to roll out, even though we are in the depths of a recession, we insisted on a close accounting of the use of apprentices and a maximization of the use of apprentices so we were not just talking about getting journey level workers back to work. but in actually giving opportunities for new folks to get into our trades. and the transbay joint powers authority was cooperative with

that. we had excellent results as a result. you have seen them reported in the reports here at your regular meetings. and in the course of the project, you know, there were various points were difficult situations arose. we managed to deal with that. there was one in particular that i will was one in particular that i will point out where my own local, we had a wildcat strike. the members were quite rightly upset about the lousy contract that was statewide but lousy for san francisco. we were in a difficult position. i was in a difficult position of telling our workers they had to go to work past the picket lines of ironworkers. that is not a statement and a push that will make you popular in the local that has to elect you as a delegate to the building trades for me to keep my job. but i did that anyway. i've always taken the attitude, you know, look, i will stay in shape. i will keep my toolbelt and i was a damn good ironworker

before. if you make me lose this job i will be a damn good ironworker again. we got some practical stuff do done. i want to thank the board for the opportunity to work with them and i think it has worked out well. >> i want to thank you for the leadership of the building and trades. i know we received many rooms. at least on this project, you know, the partnership as agreed with the numbers initially. thank you. >> thank you. >> clerk: with that, members of the public wanting to comment on the item. resolution? >> second. [roll call] >> clerk: item 18 is approved. the next item i will not call. [laughter]

she can't leave. [laughter] >> chair nuru: i would appreciate that. >> clerkb12 item 19 isapprovinga appreciation for the tjpa chief financial officer. >> chair nuru: as you learned last month, sarah is leaving the organization for another job and wanted to thank her again for her tremendous contribution to the transbay program. i would note she started in 2,004 and she took a year off in 2,005 and came back later in 2,007. there is an opportunity that she came back -- that she may come back. [laughter] eric. >> clerk: for the time being we will assume she will not come back. she became a cfo in 2011 and she really e