c.a.c. relates the following. the evaluation and review by the comptroller office in sfcta's staff be conducted with sense of urgency. chair peskin mentioned he expect this review could be completed within a handful of months. second, we recommend that informational updates be provided to both the sfcta commission and the tjpa board on a regular basis. possiblyevery 4 to 6 weeks. based upon the updates, that the earliest time possible, when the commission and board are assured the intent of the resolution's conditions have been met, make the appropriate changes if any, recommended by either the sfcta staff or comptroller's office

then lift the funding expense and restart the work of the 30% design for phase two. second, we moved on to the staff report. we were pleased to hear that the project team is making the finishing touches to the supplemental e.i.s. and e.i.r. we look for a presentation in our next c.a.c. meeting. as far as the update, we again want to thank the project team for their diligent work to this point and appreciate the thorough update on the work progressing to identify the root cause of the fissures in the steel beams specifics the process to extract the samples testing to be done by the l.p.i. labs. we also appreciate the precautions used not to jump to any speculation of root cause,

associated fix as well as not speculating on when the transit centre will be open. it is appropriate to wait until the necessary information is available so make an informed forecast. we were pleased to see the closeout project is continuing to move forward. last, feedback on the retail update. i want to prep my comments that we ran out of time at the meeting. we didn't get the full update. we are pleased to they are there continues to be high level of interest to leasing in the centre and services that will be available. with that said, we do have concerns with the timing of finalizing the leases. as its forecasted, 26 leases are

to be signed by year-end. only ten has been executed. there's still six weeks before the end of the year. using this information as a reference point, we have concerns of potential impacts on forecasted revenue generation from these leases to cover forecasted portion of o.n.m. cost. we did not have time to discuss this in detail, this may not be the case. we look forward to hearing more about this at our next c.a.c. meeting. in addition we'll provide recommendations at our next meeting focused on potential refinement of the information in the presentation integrating the timing of the signed leases, tenant buildouts with forecasted baseline versus actual revenue generation and o.n.m. expenses. thank you for this update and i'll be happy to answer any

questions. >> thank you. >> i want to thank you for conveying c.a.c. and wish for this review to happen expeditiously. that is our intent as well. >> next item. >> item eight is public comment an opportunity for members of the public to address matter not on the calendar. we have jim patrick. >> thank you board. jim patrick, from patrick company here in san francisco. two issues. i was sorely disappointed when we delayed this funding to continue. right now we have zero funding and for the d.e.x. and it stopped. period. i was particularly disappointed in our supervisor, ms. kim, member of this board, who had a chance to defend what was going on in this organization at the

meeting said zero and voted to delay it. i don't know where she is today or whether she's still on the board. it was terrible. i was embarrassed. number two, there's an article out, which i like to share and distribute to you, it came this morning. sure we can do it about tunnel under san francisco. the notion is, he and mr. vinny hoff can have some good ideas. we have little down time now. we should challenge them and take them up. i encourage the board to say, hey, if they got some great ideas, let's sit down. we want to listen. they got a lot of money. i don't know. you know as much as i do. i suggest we pass this on to the board for your reading. that's off the internet i saw this morning. thank you. >> thank you.

>> that concludes members of the public. moving into red eregular calendar. >> i'll present this item to you. this is $510,000 cost to reimbursement man m.t.c. for the

>> this money will come from the program reserve. we intend to capture the cost later on when the results are out. we know what caused the fissures. >> i like to moved item. >> members of the public wanting to comment on the item. [roll call] item nine is approved. >> item ten is authorizing executive director for lease

agreement. >> good morning directors. tjpa facility manager. i update today will focus on retail leasing update. i'll present one lease for approval and provide a tenant approval schedule overview. i'm going to focus on the signed leases metric, similar to last month's report, the numbers do not reflect a slow down in interest or activity. rather they reflect a slowing in the amount of decision-making and negotiating time. lincoln is reporting that a general increase in construction costs potentially means higher out of pocket cost for the tenant. as such, the care and decision-making in particular. for the small business owners

targeted. we are revisiting the per formas developed over a-year-old ago. you will see one of the upcoming slides we are still doing well as compared to pro forma. steady stream of lease will continue as demonstrated on this next slide. this slide is illustrative. we are showing the ground level. it is a snapshot indicating the level of activity in multiple interest in many of the spaces with the red indicating the serious interest. callers keeps this tracking and it is updated as conditions change.

the second floor have multiple interests. these maps are reviewed and discussed with the tjpa on a weekly basis. today, the tjpa is presenting one lease for board approval. charlie's philly steaks. we are happy to present this one, the owner expressed interest in the transit centre very early on. this is a local minority owned business run by experienced proprietors who have another location in brentwood, california that they've been running since 2007. even though it is just 971 square feet, it is coming before the board because it is a 15-year lease. the deal is 15 years to provide additional revenue to cover above pro forma tenant improvement cost.

the deal ends up reasonably with overall net proceeds of $142,000 over the life of the transaction. the additional tenant improvements will be applied to electrical work, drains, etcetera. therefore, the recommendation is if the board approves this transaction. this slide provides a financial picture of the lease transactions. the top box is for the leases executed thus far and compares actual to pro forma. it outlines rents and the estimated build out cost. the rents are exceeding pro forma by 8.5 million and buildout cost by $2.7 million. the middle box includes charlie

deal. estimated buildout cost are under pro forma $2.3 million. this is the lease summary to date including charleys there were two board-approved leases that have not yet been executed. one backed out due to design issues. the other one is wrapping up negotiations and expected to be completed soon. however, the total executed leases includes two that within the director's authority. the number of spaces ends up being the same. finally, this slide is to indicate estimated construction time frames and at what point the space maybe occupied. the blue bar demonstrates the original assumed construction and occupancy time frames outlined in the 2017

merchandising plan. the merchandising plan included estimates based on the location of the spaces. as you can see, the most remarkable is the second floor. that concludes my report. any questions? >> i had a question. in the writeup, there was a lot of discussion about the net present value in the report that you had. it was referenced here what we seem to have having in trying to assess whether these are good deals or bad deals. we had the original pro forma which was based on a 10-year lease assumption. lot of the leases have these 15-year terms. what we're seeing is we're making up for lost revenue by adding extra five years to the lease term. if you look at it from

$1.6 million over ten years, that will be about $2.5 million total over a 15-year term, we're getting about $2.2 million. some of the sam thing happening on other side tenant improvement. how can we get better information some of the reports that give us a sense how we're doing on a year by year basis? it feels like we're falling behind the pro forma. >> win we do the net present value analysis, we also have the lincoln team taking a look at the aggregate. we're actually -- we're doing well. i can include that in my future reporting. right now all i'm doing is giving you the raw number. i can include that in future reporting so that's clear for you.

>> it looks like this is the overalling a gayleall aggregate. >> the net present value is intended to have the apples to apples comparisons if it's 10-year lease or 15-year lease. taking into tenant improvement allowance. it's not shown here. as i said earlier, when lincoln looks at individual deal, they're looking at the aggregate number. the net present value numbers are consistent with the pro forma and the aggregate.

>> maybe we can have offline conversation about it. >> i understand your question, by adding five more years you're bringing more revenue. you're looking at 10 to 10 or 15 to 15 plus present value. >> that present value will be higher than the 10-year value. it's more interesting in terms of budgeting, how are we doing orthe ten years? >> we'll look at that. usually if you have a 15-year lease versus 10-year lease, the 15-year lease gross less per month. >> the additional revenue is also capture the higher t.i. costs. that's why the net present value is a key number.

you need it to do apples to apples comparison. >> okay. >> any other questions? >> move for approval. >> second. >> any members of the public wanting to comment on the item. [roll call] call your next item. >> item 11 is resolution of appreciation for greg harper. >> directors, director harper is here as well. this is a resolution to thank director harper for his service on the tjpa board. he was one of the founding members of the tjpa board in 2001. he was on the board from 2001 to 2007. he decided to come back in 2018.

i want to thank you very much for your service on the board. >> i do have the last two senses to say. you know i couldn't resist. actually three. regarding where we are on the building, there is an important thing that has to be done with respect to what director lipkin alluded to, which is we've got a document that everybody is on the same page. that has to be really established because we need to maximize the value of what's being discovered. we don't want to go through all of this and then in the course of litigation, have to essentially justify that this is really good stuff. this is the answer. we want to avoid that. i know that's the first thing.

the second one with respect to the secondary things, everybody is concerned about, once you find out what the root cause is, there's a who that comes to that. once you get the who, then you can can find out where else who was working in the building. that will be some first step into trying to check out other aspects of the building. there are two levels of who. there's the direct actor and then there's a possibility that there was a supervising overseeing who that may have caught something or should have caught something early. who is that? where elsewhere they doing their overseeing work. you knew i had to do that.

i wanted to say, i really appreciate the recognition because i love this project. you don't start 17 years ago and stick with it without loving it. up to this point, my job -- doing that was easy, communicating that to a.c. transit. communicating the mornings of this. i had great depictions and then a great building eventually to say, wow. this is it. it wasn't costing a.c. transit much money. it was a great benefit to them. that's over now. now you're get into the operations and a.c. transit operations. what i can do on the board inspirationally is a lot easier than doing that operationally because a.c. transit has to

recognize its responsibilities to the region more so than ever now that we have a station that can take lot of capacity, can do all their stuff. we're going to have to make a lot of changes. i couldn't do that as one board member. maybe somebody who can is the general manager. that's going to be a big job. he does understand the job. you have to keep his feet to the fire. you don't have to get him too close, he does understand. i'm very happy with my replacement. i'm very happy to be able to, long last, say, okay, my job is done. now, it's up to getting a.c. transit operations living up to the terminal that essentially has so much to with. thank you very much.

[applause] >> members of the public that want to comment on the item. mr. patrick. >> thank you jim patrick. i watched mr. harper for a long time. i think he's added a lot to this board, ask great questions and has been the leader we need. i take my hat off to mr. harper and say thank you very much. >> i echo mr. patrick's comments. i want to thank director harper for his many years. first tour before i got here and second tour after i got here. it was always a little bit more lively and interesting of a meeting with director harper here. he brought up a perspective that brought up his particular seat

at a.c. transit, i think from his professional background, brought lot of value to the board and a perspective that rest of us different have. he was a great complement to the rest of the board members. certainly passionate and outspoken and creative. i think the project is better off for his having been on the board for all these years. i want to thank him for being a colleague and for his many years of service. >> i want to echo the thank you. it's great to have been a partner with you. i wasn't sure if it was about dr. seuss. i'm okay with that. a project of this magnitude and the complexity is a journey. that journey is ongoing but you been part of that journey for many years. i think it's 11 or 12 years. that's a long time. so thank you for your commitment, your passion, your

inspiration and for making a difference for the region by helping this project come forward and to be almost where it is today. so thank you and best on your next chapter. >> on behalf of the board, i would want to say thank you. i learned a lot from all the trips to oakland and difficult discussions and insights. thank you for everything. >> i want to add my thanks. thank you for loving this project. thank you for your commitment to the project, your vision for advocating for the project, the regional perspective and also advocating for a great fill for a.c. transit and those amazing customers. >> move for approval. >> second. [roll call]

>> call the next item. item 12 is approving of the mips of the september 13th meeting >> can we do all three together? >> we have some attendance. >> they are separated out. >> move the item. >> second. >> mr. chair, i'll be abstaining. >> we go [roll call]

that's five ayes. item 12 is approved. item 13 approving minute of the october 2nd meeting. we have a motion. >> move for approval. >> second from lipkin. >> was that the special meeting? >> october 2nd >> that's a special. >> i was in l.a. >> abstain. >> director kim was here. >> at that meeting, lot of alternatives were here for the agency. >> she could have voted for it.

>> but now that we're approving them, even though the director wasn't here, the alternative for that agency was here. >> any member of the board can approve minutes even if they were present at the met meeting so long as they approved the minutes. >> i don't know if we're going to have enough votes to approve the minutes. i will acknowledge that i have not reviewed the tape or the minute. i will not be in position to support them. we may need to continue this so that those who weren't here can review and approve. >> folks would like to continue october 2nd meeting. let's continue those. call item 14, approving minute of the october 11th meeting with the exception of hursh not being on the board why the and

director nuru absent. everybody else was here. >> move approval. >> second. [roll call] item 14 is approved. >> we'll moved into your closed session. you are scheduled to go into closed session. we'll clear >> the tjpa board of directors meeting is back to open session. in regards to item 19, there's

nothing to report. that does conclude the agenda today. >> at this time we'll adjourn the meeting. >> thank you.