. >> that is our cue to go ahead and call us to order. >> all right. well good morning everybody and happy new year. welcome to 2025. it's hard to believe that the month of january is just about done already. it's pretty amazing how fast it has gone. i like to call the tga board directors special meeting of january 30th to order. i'm jeff gee honored to serve as chair. the board meeting is being held in person at san francisco city hall. members of the public may attend the meeting in person watch on cable channels 7828 or 99 depending on your provider or visit s.f. gov tv website to stream the meeting live. and i'm secretary would you call the roll please? >> thank you chair prior to calling roll i'll note for the record that director alta wants is absent and her alternate david mitchell was expected but unfortunately is ill and just

let me know he's not going to make it direct. >> director lipkin is absent and we're grateful to have director gailey with us this morning. and along with our new ac transit alternate director gene walsh who we'd like to welcome to our board next meeting we expect to welcome chris and a check of the ac transit primary representative. >> so with that. director forbes here. forbes president director galley here. galley present director brewer's present where were present rector walsh here at walsh present vice chairman allen is expected and in route should be here any moment and chair present present as well. >> directors we do have a quorum we can go ahead and move it along please. all right with that. item three is communications and we'd like to note the process for members of the public to make public comment. members of the public may comment on the meeting during public comment periods in person or remotely. the call in line is provided as a courtesy and its availability

may be disrupted due to technical difficulties or otherwise in-person public comment will be taken first remote public comment will be taken after the public comment call in line is printed on the agenda and instructions should be scrolled at the bottom of the screen on s.f. tv. i'd also like to note that the february 13th meeting has been canceled and the official notice has been distributed and posted. >> with that i'll also note that we have been joined by vice chair randleman and are there any other communications ? >> seeing none. >> your next item please. all right. next item directors is item four board of directors new and or old business. >> if i may, i want to take a moment not only to welcome everybody to 2025 but only take a moment to thank our directors that have served and have gone on to other adventures and other things they may think i said last year.

this board is owns the salesforce center and the detox project and that's a tribute and honor to the board members that have served. and i want to thank director siad director tomblin, director john baptist for their commitment to the city and county of san francisco to the jpa and toward making a difference in the region when it comes to public transportation. it is a tribute to where we are . having closed out the project, having gone into engineering and it's a combination of our staff, the leadership and this board and i want to say thank you to those three directors. i just want to share that as a token of our appreciation of the board each director will get a framed section of the salesforce center and and the margins on the side we get to all say thank you and add a note to each director and our secretary will have that frame where we can add a comment and a thank you so again to

those three directors thank you and to our new directors welcome because the work isn't done yet and given the landscape that we have in front of us it kind of seems to change every minute. but that's why we're nimble and committed to success. >> so thank you and welcome to our new directors. >> all right with that if there is no other business, i'll go ahead and call your next item please. all right. item five is the executive directors report. >> good morning, directors. happy year of the snake and welcome to our first meeting of 2025. i want to echo the secretary and the chair's welcome to our new members and appreciation to our outgoing members. a lot of political change at every level of government so the nimbleness comment is an appropriate one because we're working with new mayoral administration. congratulations to vice chair flynn as our new president of the board of supervisors with

five new members of the board. we have about 35 new members the state legislature, a number of new members of the metropolitan transportation commission commission and of course a new federal administration with a new secretary of transportation sean duffy and his new administrators at the fda. the affray and on down the line. so a lot of new faces to familiarize ourselves with and bring up to speed on the history of this project. projects like this are our marathons not sprints and they're decades in the making so we continue to assemble the funds and work with new parties to realize their many long term benefits. so welcome director walsh. we look forward to working with you and director andrew scheck . i also want to acknowledge murphy macaulay who was director said alternate times will be also signing a cross section for him and his time here as well. let's see in terms of a couple of things. director john jean-baptiste has taken a position in the lurie administration and as his

policy advisor on climate mobility and infrastructure so we'll have good representation in room 200 here in city hall and the mayor is also appointed her as his representative on the metropolitan transportation commission. so great to have that continuity with her leadership here in city hall and throughout the region. so we look forward to working with her at that level. at the state level we have former supervisor katherine stephanie who was going to is replaced phil ting as part of the san francisco delegation. we look forward to working with her on state interests including the state rail plan that was released last month which highlights the portal project as a project within the ten year horizon. obviously funding funding dependent and really calls to focus the the connection of standard gauge rail utilizing previous state and federal investments in multimodal stations like the salesforce transit center. so the cal state transportation

agency is making a lot of progress and momentum to capitalize on that investment and connect it to future investments such as link 21 crossing the bay so good news for us and for the portal. we'll be working with the state delegation on cap and trade reauthorization which we've discussed here at length which is a major source of our remaining matching funds and we think will be a big topic of conversation throughout 2025 as the legislature wrestles with the many policy issues contained in that decision. there's a lot to do. >> director lipkin is in sacramento i believe today for an industry forum on high speed rail where they're going to be meeting with industry experts on everything from operations and maintenance input to funding and financing power generation geotech tunneling tech and innovation and other topics. so we look forward to what industry has to say about that and how we can apply some of those lessons learned to the portal project at the federal

level. >> i'll be heading to washington on monday to meet with some of our new federal delegation. of course we have sam mercado down the peninsula latif assignment in the east bay adam schiff representing the state and others that are aware of our project but haven't been involved in their new federal roles yet. so we'll be introducing ourselves and then meeting with members of the house transportation and infrastructure committee which is critical to the funding of the project at the federal level in early january the agency joined 17 other bay area agencies and firms and 91 total nationwide and formally signing a pledge to equity and infrastructure. in doing so we reaffirmed the commitments that we established in early and phase one which is to break our packages into smaller packages to make it more accessible to smaller and disadvantaged firms and really get the local employment benefits of these types of public works projects at the regional level we're continuing to work with the metropolitan transportation commission on moving the portal to tier one of their major

project advancement policy. we're working with staff now on the details of that and expect to take that to committee and then to the full commission in march. this will be after the board selects their representative on mtc to join director john baptist there to represent the region's interests and we look forward to moving into the first tier so we can be more competitive for our discretionary funds that flow through the mtc. we're tracking the progress of the regional transportation measure. i know many of you are very involved in those details and there's a number of items moving forward relating to that effort. senators weiner and are again have introduced sb 63 as the legislative vehicle to enable that and are working with stakeholders and participants on it's details. there's a lot of polling out there and we're working to ensure that that is represented in those discussions in two ways one in the limited operating capacity that we do

we of course do not run operational transit service but we are the largest transit hub here in northern california and we want to make sure that our operating costs are secure going forward and then of course to the extent that there is capital funding in that regional measure making sure we prioritize the portal because we serve eight operators today and will be connecting to more and adjacent to bart for a total of 11. so really knitting together that seamless transit network. finally the four our annual process we've launched our 2025 citizens advisory committee recruitment in mid january we had a meeting on tuesday and encouraged our existing members to reapply and we will until february 14th to be accepting applications at morgan. so we look forward to bringing you some robust community representation at the cac. finally finally i'll be providing an annual report on our our accomplishments in 2024 and our goals looking ahead to

2025 and i'll be doing that with the various team leads on those various issues. but before we do that happy to take any questions or comments on the executive director report and thank you for the report. >> directors director forbes thank you for the report. director vander water i wanted to take this opportunity to talk about values of the agency and i really appreciated you talking about the local small business work that we're doing . i think it is a difficult time for many of us that feel attacked relative to race relative to lgbtq plus and relative to immigrant status and i can only imagine that the employees in the agency are feeling very much as my employees and my agency are feeling and i wanted to reconfirm our values and commitments despite this difficult time. finally, i want to talk about jeffrey tumlin because i have the opportunity to do so. he was a fantastic colleague of mine and i had the opportunity

to work with him through covid and i saw how he pivoted with his agency, the bus network to bring the people who needed to go to essential positions his very, very what would you say resourceful, creative and tenacious and i will miss him very much from the board and from the city. thank you so much. director forbes thank you very much for for speaking about director tumlin and our commitment to equity and inclusion. so thank you very much for that. directors, anything else we'll take public comment after all the reports are done. >> all right. so the second part of our report today is our annual progress report and plan for 2025. so if we could pull up the slide deck we want to start with a reminder of our overall commitment to transit in the bay area. we like to think of the transbay program in three

primary capacities. one is the completion of the salesforce transit center which as you know we completed all elements of phase one and 2024 and are delivering service not only to the transit rider but to the community in terms of retail activation programing and park space. two is the the portal the detox project which we're working to connect caltrain and high speed rail into the the basement. and the third is to continue to activate the transit oriented neighborhood with housing open space and retail. we are committed to downtown's economic vitality and recovery and connecting riders to their important destinations maintaining an safe and clean transit center every day and hour of the year and providing an iconic public destination with that free programing that i mentioned. so if you go to the next slide in terms of transit center operations, i'd like to invite ari walsh, our facilities

director, to walk through some of the highlights. >> thank you director vander water and good morning chair and directors. >> happy to be here with you in the year of the snake. and 2025 is looking very exciting but let's take a quick look back at 2024 we reached over 1 million visits in 2024 with an average daily stay of 36 minutes which oc which represents 20 more than 20% increase year over year which is great. >> we brought back some vendors like the shoeshine guild and opened a new restaurant named moti italian mexican fusion. if you haven't gone you got to go and check out that birria lasagna. we also worked with some great vendors like gio gelati and joyride pizza to provide some seasonal bites in the park. we stabilize facility operations and management by transitioning our property management services in-house

under direction of the staff and we performed various five year maintenance projects including elevators and fire life safety systems. we also completed replacement of over 200 media players these little computers that go in our digital wayfinding kiosks to help make the system more robust and reduce any outages. so we've also successfully updated our data center and network infrastructure here and also expanded our zero waste program with assistance from the department of environment in recology. >> next slide activations in salesforce park so similar to the transit center we saw a 20% year over year increase in visitors and hosted over 640 events in the park with over 43,000 attendees. we added new seasonal celebrations to go along with things like spring fling and winter fest by adding fall harvest festival we also hosted

suds francisco san francisco's largest beer and music festival in partnership with beer bottle brewing who will be opening a new space in the grand hall very soon. we also produced a sold out concert which i very much enjoyed with noise pop celebrating the transit center's six year anniversary and we're already working on planning the next party for this year. so again a lot of nice stuff to look forward to. we also continued to reinvigorate downtown san francisco by activating the natoma pedestrian walkway with help from the san francisco small business office and then we all have also been working with into the streets east cut cbd yerba buena cbd on the monthly downtown first thursdays which i think hit its highest number last month with over 20,000 people. so if you haven't checked it out yet, get out there and we'll see you in the streets. i also wanted to make a an announcement that we've recently come to an agreement

with bear bottle in the san francisco brewers guild to host the beer week kick off on february 22nd in the park. >> if you're not so much into beer and you just like the live music, come on down and check it out it'll be free. but if you do want to enjoy the unlimited beer tastings tickets are on sale now through the beer brewers guild for around 75 bucks moving right along to our 2025 goals for the transit center we want to continue to support downtown revitalization and the reimagining of downtown by working with strategic partners like the cbd's and other community partners. we also need to open some new retail spaces including the one i just mentioned with beer bottle in the grand hall as well as with our colleagues at jimbo's and juice bar. we need to sustain our attendance in the park and enhance our offerings and just ensure quality events are being produced. we also need to maintain

and enhance our safety accessibility in the state of good repair that we're experiencing in the transit center now we also as director tumlin would have agreed with we need to enhance our digital wayfinding and our physical wayfinding at the center and that is something that is not complete and it's something that we're working on improving every single day. we'll also do some back of the house improvements with it infrastructure including a next generation firewall, some land networking infrastructure and a new gateway router. hopefully all those things get done but it's all very important things even though you may not see it every single day. and then we also want to connect our programing to downtown revitalization efforts . we're actually working with the east cut cbd and into the streets and doing an event in the park recurring for later this year and more news will come out on that. with that i will hand it off to my colleague rodney harris. >> chief security officer thank

you very. >> good morning chair directors rodney harris chief security officer transbay joint powers authority 2024 was really a good year from a security standpoint. we were selected by the transportation security administration for exercise what is known as the ice step is the intermodal security training exercise program in partnership with the transportation security administration. does this demonstrate our excellence to national safety and security? this ice step was hosted by salesforce corporate security at the salesforce tower. we had over about 80 participants from federal, state and local law enforcement agencies as well as some of the intelligence agencies as well and our bus operators. this allowed us to really look inward at somewhere on our operational plans and then we had to redevelop some that was missing some of the gaps. so that was a good exercise.

thus internally we develop and elevate our security program by creating a comprehensive safety and security plan that seamlessly integrated our robust safety protocols and security measures. this was done from taking some of the language from our concept of operations and incorporate it into our safety and security plan. also tsa base base baseline assessment for security and enhancements inspection we scored over 90% across 17 critical security and emergency preparedness categories thus demonstrating our dedication to excellence in proactive risk management as we are already in 2025. we're looking forward to 2025 by continuing coordination with department of homeland security ,transportation security administration through their monthly security enhancement through assessments. these assessments are on a monthly basis are unattended bags, suspicious persons,

suspicious activities and things of that nature. and so we're out there testing the public facing contract security personnel that you see on a daily basis as well as our response from our security operations center and our delivery from assess speed. how are they going to respond to these unattended bags are suspicious person also they should we're going to complete our upgrade of our video management and access control server infrastructure that's going to give us reset our life cycle management for for those two critical physical security systems. and then we're going to continue to strengthen our collaboration amongst our security operate security operations team, s.f. pd operators, tenants, neighboring communities to ensure a safer environment for the transit center. >> this concludes my presentation. if you have any questions. okay. thank you. thank you. >> writers as we invite alfonso rodriguez up to speak about the

portal, i just want to say really quickly the mayor lowry yesterday and previously as as continue to emphasize a return to basics making sure we have clean and safe streets and frequently cited example of a success story there is our center and that's thanks to rodney and his team as they continue to secure the facility but also adapt to new programing with 1500 people drinking in the park or 20,000 people partying at the adjacent second street and doing so safely, happily and collectively so alfonso, thank you all for answer. >> rodriguez project director for the portal good morning chair directors i'm happy to report 2024 was a successful year for the portal. the project was accepted into the engineering phase of the federal transit administration capital investment grants program with a funding commitment of $3.4 billion. this represents being in the engineering phase the final phase of the new starts program where we have to complete a number of tasks in order to

request our grants. we also began procurement of the largest of our seven construction contracts for civil and tunnel scope. we shortlisted three qualified teams who will receive an rfp in the coming months. we completed our work on a six on the successor mou outlining how we will advance the portal together with our five agency partners all the way through the construction year. consideration of this mou is on today's agenda we're able to more than offset the escalation impacts of the adjusted full funding grant agreement target date with cost reductions and program cost adjustments. and finally we completed utility trenching and areas along the alignment to assist with our utility relocation construction work that is expected to occur next year subject to funding availability. next slide. and we've got a lot to look forward to this year to formally adjust our project cost estimate resulting from the scope adjustments i just

mentioned will complete environmental assessments of the changes which reduce construction impacts in reality we're jointly developing with caltrain a concept of operations task to help us define staging and phasing work and requirements for our construction at the fourth and king rail yard. it's and what's especially challenging is to make sure we do this during live rail operations. and then of course this concept of operations considers initial service. we expect to soon release the civil internal rfp and as i mentioned in the coming months . and then finally we will advance this year durable work such as utility relocation design, our real estate tasks wrap up our critical third party agreements and update all of the management plans required by the federal transit administration to request our full funding grant agreement. of course all of this runs alongside our commitment to

complete our local share in order to request the grant. that concludes my update for this year. >> we have lily maxwell next. >> good morning lily majlis with communications and legislative affairs director and it's my pleasure to talk about our public engagement and advocacy for 2024. >> next slide please. >> we had a very busy year as you can imagine with all the different things we were working on with the community and our elected officials with tours and events along with some advocacy efforts locally in sacramento and d.c. as you can see here we increased and continued our behind the scenes tours with our partners stakeholders, elected leaders resulting in over 50 tours with over 600 attendees. we also had various foreign delegations join us including a visit from a taiwan official

with california high speed rail that also included japan and korea. we were fortunate to participate in the world economic forum during their urban transformation summit in october and offered a transportation panel including chair ji and others and provided them a tour as well. >> our behind the scenes tours were supplemented with public tours which we have an mou with s.f. city guides and they hosted over 90 of them with the public and brought over 700 attendees. >> so in addition to the activities events we're also doing the tours informing the public of the role of the salesforce transit center in the community. and we also expanded our transit month celebration as you all know is in september beyond a tabling event. we had been working with california high speed rail on a 3d decal unveiling which as you can see here is a picture of

it. >> it's for fan to gram and it shows the train box beneath that's already built and what it will look like into the future which is a pretty cool event. >> it brought out a lot of people including some content collaborators on social media and along with caltrain who we had a tabling event with plans for 2025 goals will conduct more of the behind the scenes tours in addition to the public tours expand the center's branding and marketing, increasing our continued community engagement on our services and additional activities that will have and we'll work with the project team as we're out in the community as we prepare and plan for those activities into the new year. director forbes's point one of the enduring legacy as a director tumlin is our tagline uniting the bay connecting california which you saw there in the slide is also on my lapel and i want to offer to our newest board sorry. >> next slide please.

>> now for advocacy we were busy on that front as well. as you can imagine, advocating for operational funding of the salesforce transit center and capital funding for the portal we submitted for federal grant applications and also one federal project i mean community project funding focused on wayfinding and we were happy to receive an award of $1 million for our wayfinding efforts and also nearly $25 million for a christie award which we're working to obligate now because that was received end of 2024. as for 2025 as executive director van de water mentioned, there's a lot of things happening as we brief and tour new members of different levels of government. in addition to participating in different conversations on funding for the local share for the portal so that's the state cap and trade program. that's the regional measure transportation manager as it

advances and working to also apply for discretionary grant funding for both operation and capital funding needs. last slide please, t.j. in the neighborhood we like to highlight this because we do have a very important role in the neighborhood that i know we tout all the time and speak to and as you saw in the image before the transformation that has occurred in the neighborhood due to the salesforce transit center and the parcels from the state to us and the city and county of san francisco. so we have a large footprint in the neighborhood and as listed here we continue to advance and transfer development opportunities as we're a partner in those processes including working with the office of community investment and infrastructure and the east coast community benefit district for the east cut sports and dog park. >> and then also and i know we've already mentioned aligning our efforts with the

city and also the bay area in terms of increasing transit ridership, attract and retain businesses and promote and bring workers downtown. so that's a big effort that we continue to do. this concludes my report and i'd be we'd be happy to take any questions. >> thank you. i would just note that caltrans has released some positive trends in their ridership with a 41% increase i believe in overall ridership year over year from last year as as well as noticing that the weekend ridership has exceeded pre-covid weekend ridership. so that's a result of the new electric modular units in service as well as matching headways to demand which is a great sign of of recovery for one of our primary future operators. >> any questions directors on the multiple reports that we received today director forbes i'd like to make a comment. >> george i'm really impressed

with the safe, clean and vibrant strategies. it's beautiful around the center. it is well attended and everyone is very supportive and appreciative in the neighborhood and i think it's a testament to staff that this has been an ongoing strategy that's really been deployed. so congratulate asians. >> thank you director for director walsh and welcome. thank you. it's wonderful to hear about this great work and i just wanted to share a personal anecdote the other day i took the transbay f four bus of ac transit into the beautiful transit center walk downstairs, noticed the new restaurant that i made a note that i need to try and popped right across the street and it was first thursdays and it was a very enjoyable night when i was done i simply walked upstairs. i had about 15 minutes to kill so i took a beautiful spin around the park and i took the bus home. it was so easy. so i encourage anyone from the east bay to do just that. >> so great work, right? thank you. you're nice. thank you. director walsh. any one else you know if i

would underscore any one thing is i think really it was your slide 13 in executive went and what are you going to washington dc next week we as a region have been very blessed with seniority in our congressional elected delegation from the bay area we don't have that seniority anymore and so we need collectively to be present in washington to make sure we're advocating for our region, for our projects that are federally funded and even more so given the time we're living in right now. so please feel free to reach out to all of us to help with that advocacy because as we all know in washington seniority makes a difference and with the changes that have happened our many, many years of service in washington has now become new members serving. and you mentioned some of them that you'll be visiting with that's very, very important that we support our new elected congressional delegation

members and so we just need to be present. so thank you. absolutely. and if i could we we speak a lot of uniting the bay and connecting california but in d.c. we need to also talk about the national benefits and you'll recall on phase one we had labor and materials from 47 of the 50 united states created 26,000 total direct indirect and induced jobs and we're projecting close to 60,000 for the completion of phase two. and so that as contractors that are specialty contractors, some of them international and tunneling but national suppliers that are national and operators that are national one of my anecdotes i often refer in to in d.c. is the operator of caltrain taxi is headquartered in the district of the republican chair of the house dni committee sam graves in missouri. so this is a project that benefits san francisco. it benefits the bay area, it benefits california but it also benefits the entire united

states. and we need to be able to tell that story when we're in washington and get thank you. seeing no other director comments or questions or any public comment on the reports, go and check for public comment in the room seeing none check online taking public comment on the executive directors report see none. >> let's continue please. all right. we'll go ahead and move on to your next item which is item six, the citizens advisory committee update and we have our cac chair brian larkin with us this morning to address you . >> good morning board members chair g. vice chair mantel gentleman. belated happy new year to you. i'm here to talk about our most recent cac meeting which was this past tuesday the 28th. >> our agenda included only one item that is on your agenda and that is the annual progress

report and plan for 2025. >> i think we all took wary note of the uncertainty that the new administration in dc brings to the project and just about everything else beyond that. we we did have a question from eric schott meyer about the transition of the project on mta's list from tier two to tier one and what effect that would have on the chance of it getting progressing into getting final funding. and i think the answer is yeah, it does. i won't answer any more of the questions because you've got staff here to do that. >> charles lavery asked about the possibility of bringing a farmers market to the facility and r.d. walsh thought it was a good idea but it takes a lot of planning so we're not going to see it tomorrow. we also heard an update on the

portal master schedule and funding plan. >> the update was like a massive amount of information. you heard a little bit of it just now from alfonso rodriguez. >> but i did ask the question about in the area of what they're calling a beginning work and i name that wrong enabling enabling work. that's it. thank you, adam. i don't leave home without him but i asked whether there was a large amount of contingency for the underground work utility relocation and he says that there is that they've done a lot of site investigation but i also said that, you know in my experience you're going to find things and you'd better have plenty of money to relocate them to deal with them when that occurs. our final agenda item was

future agenda items and eric schott meyer said he'd like to hear if the caltrain electrification program has resulted in increase in ridership. in other words, a report from caltrain. further to that brian shaw, our vice chair, asked if we could get annual reports from the different tenants in the transbay center that is caltrain, muni and ac transit. >> well that's it for january. on this penultimate day of the month we made it in. very good. thank you. any questions? directors? >> yep. very good. happy new year. thank you, david. but also happy lunar new year. >> so yeah, i didn't if i didn't mention that i'm sorry that all right goes i intended okay. >> all right. well, i'll see you all in march. thank you. please. all right. we will double check to see if there's any members of the public wanting to comment on the item and this would be on the citizens advisory committee update and we do not have any members of the public wishing to address you on item six so

we can move to item seven please. >> all right. item seven is the public comment two for members of the public to address the authority on matters that are not on today's calendar but in your jurisdiction. we do have a member of the public online. we will double check and make sure that there is nobody in the room. there is not if we can let the caller through caller please state your name. >> your two minutes begins now. so this brought some of the and so i like to do very briefly to reiterate a comment and a question i had at the cac is as you know brian signed with that kind of building two and 19 mile section between just north of l.a. and then las vegas including four stations. each one of these stations have their platforms which are 1350ft long, which is what the high speed platform looks like and currently our train box is

over 1500 feet long which means, you know, we all set for high speed rail. the the issue we have with the current alignment as to essentially t-boned the transit center at 90 degrees is that we are losing i would say at least 500ft of platforms which leaves us with 850ft a maximum and quite frankly staff causing issues within 21 as we attempt to connect to a future, you know transbay connection. so in closing my question was what is the operating plan here when these las vegas trains eventually arrive in san francisco but we're going to be leaving half of the train back in san jose or is there some alternative that somebody is looking at? thank you. >> thank you. caller. we have no other members of the

public wishing to address you on the item. >> we can move into your consent. >> okay. we'll move on to your consent calendar where all matters listed are considered to be routine will be acted on by a single vote. there will be no separate discussion of the items unless a member of the board or the public so requests in which event the matter would be removed and consent calendar and considered separately directors have not received any indication that a member of the public or the board wishes to have any items considered separately. >> they have an opportunity to do so now we'll double check online that there are if there are any members wishing to comment on the consent calendar seeing none your items are 8.1 approving the minutes of the december 12th 2024 meeting item 8.2 approving the amendment of board policy number 21 capital improvement plan policy item 8.3 authorizing the executive director to execute an extension of the alternate rent period contemplated under the third amendment to the lease with fills coffee for commercial retail space on the first floor of the transit center item 8.4 authorizing the executive director to execute an extension of the alternate rent period contemplated under

the sixth amendment to the lease with transbay fitness a fitness s.f. for commercial retail space on the second floor of the transit center item 8.5 authorizing the executive director to execute an extension of the alternate rent period contemplated under the fourth amendment to the lease agreement with vega and bananas for commercial retail space on the first floor of the transit center. >> thank you directors. what would you like to do? their motion to approve. thank you vice chair amendment for the motion to approve their second i'll second thank you director galley thank you. >> hopefully the first and a second to director forbes i or i director galley i galley i director ruiz i ruiz i director walsh i director walsh i vice chairman of men and women i and chair g yes i as well the consent calendar is approved. >> go ahead. move into your regular calendar please. all right. item nine directors is a presentation of the audited financial report of the transbay joint powers authority for the fiscal year ended june 30th, 2020 for i will note that there was a typo in the

auditor's report that was realized after the item was posted and distributed. therefore our auditor will speak to that and we will post the corrected report this afternoon with i'll turn it over to whitney crockett. >> thank you. good morning everyone. my name is whitney crockett and i'm an audit partner with mason associates. we're the external independent auditors for the jpa and i oversaw the fiscal year 2024 audit. >> next slide please. i slide. oh, sorry. manager okay, cool. >> yeah, perfect. thank you. so a bit of a background if you read our audit opinion that's on page one of the annual financial report you'll notice that we are required to be independent of the jpa as the external auditor. in addition to that we are our audit is conducted in accordance with auditing standards from the u.s. and if

you read through all the verbiage in there you'll also see that our opinion for the fiscal year ended june 30th, 2024 is unmodified and that is the highest level of assurance that we can provide. so that's really the only thing that is important and there there's no other special items to call out in the audit opinion. so clean opinion that's good news. next slide please. so page seven and eight or i guess page four starting with the annual financial report is management's discussion and analysis. and so what that is is really a high level overview of the balances and activity during the fiscal year. so it's a good read to kind of get a grasp for what changed. and as neela mentioned there was an error in the published mdna and the table on page eight so i just wanted to mention that in the table on page eight on the statement of changes in that position there was a line item that shouldn't have been there above the total

i guess below the net operating grant. there was a line that said contribution from ac transit four and that shouldn't be there. so sorry for that confusion and i'll work with the team to make sure that that gets revised. so in terms of the highlights so statement of net position for jpa at june 30th, 2024 was 1.8 billion and $90.5 million decrease from the prior year and that was driven largely due to depreciation expense. so the capital asset balance decreased during the fiscal year and that's because there was a high level of or a high amount of depreciation expense on the transit center and also there was a decrease of restricted assets due to increased activities related to the phase one closeout. so that's kind of the big driver there for the change. next slide please. so on page eight of the management discussion and analysis is the summary of

what changed from prior year on the statement of revenues, expenses and change in that position. and if you read through that you'll see that the operating loss increased by 10.6 million or about 7% during the fiscal year. miscellaneous revenue decreased by 15.4 million or about 94% and capital contributions decreased by 10.8 million or about 37%. next slide please. oh, perfect. okay. so behind the annual financial report are two documents from us the auditor. so the memorandum on internal controls and the required communications. so the memorandum on internal controls is basically a memo from us the auditor where we document any internal control deficiencies or other matters. we don't have any to report to you. so material weaknesses, significant deficiencies and other matters are the three categories. we didn't have any exceptions

in our testing and so no audit matters to report there. if you need some good late night reading you can read the gadsby pronouncements but there's really nothing that exciting coming up. so i just wanted to point that out. and then the required communications is just us reporting anything that was unusual or unexpected or any issues we had with management during the year. but there's nothing in there to report. so it's all very standard language and i guess before i turn it over for questions i just wanted to thank shima and devina and their team for all their help during the audit and being so cooperative and responsive. so yeah, next slide. >> any questions? great, whitney thank you. directors. any questions? i loved the word unmodified. there's i love the sound of that. so thank you and sheema thank you and your team because this is not a one person effort. it takes a lot of effort to do this every year so you get to take a break for two months and get ready for next year so anything else directors, any

public comment we'll check for public comment seeing none in the room we'll check online. no members wishing to comment on this item and this is a confirmation on yes there's no action required just information. so thank you whitney again sheema thank you and your team. appreciate it. >> all righty. we'll go ahead and move into item ten approving the fiscal year 20 2526 limit operating projection in the amount of 28,344,000 and our chief financial officer xi members i will present the item. >> good morning directors.

this presentation is to provide an overview and also seek your approval for fiscal a for a preliminary operating budget projection of fiscal year 2526 in the amount of $28,344,000. next slide we can get the presentation now we go. >> thank you. looking at our budget calendar in september tgp submitted the preliminary operating budget projection to easy transit and mta and addressed their questions and received their letter of support for submission to mtc. to extend this supplemental our mta funds today we're seeking the board's approval of the preliminary operating budget projection as required by our use and lease agreement with transit operators following board approval tgp is staff will work through april to develop the operating and capital budgets that

service budget and capital improvement plan also known as cip in april as staff will present a budget outlook to the board followed by draft budgets at a public hearing in may and finally in june 2025 the tjp board will review and approve the final fiscal year 2526 budgets. the preliminary operating budget is projected at $28,344,000 which is approximately $618,000 less than what was provided to the transit operators in september. >> the projected total operating revenue has increased by close to $2.6 million resulting in a total reduction of $3.2 million. the transit operators contributions. next slide please. >> the increase of 2.5 million

in revenue is due to the extension of the supplemental arm to funds for another three years to offset transit operators contributions. mtc has staff completed a thorough review of the five year budget outlook and evaluated the financial necessity of continued supplemental room to additions for additional three years. this recommendation will be presented to the mtc programing and allocation committee in spring. the reduction in expenditure is mainly due to the termination of the asset management agreement with the lpc. >> tjp decided to assume direct oversight of the transit center asset management through internal staff as well as an mou with sfm to to select for select as needed services. this resulted in a reduction of $580,000 in expenditure. in addition with the closure of

fiscal year 24 and finalizing financial statements, we revise the budget projection to reflect more accurate and data driven estimates to provide transit operators with a precise forecast for their expected contribution. however, i need i need to note that the use and lease agreement with sfm ta must be renewed and is currently under review by the city attorney's office to be submitted to the board of supervisors for approval. this is expected to be completed by april 2020 five. >> the operating revenue projection includes reimbursement of approximately $13 million from bridge total funds and $1.6 million from community benefit district assessments. >> the projection also includes $13.7 million in operating revenue from the transit center of which $5.4 million is from

use and lease payments by transit operators. >> total expenditure includes $26.3 million for operation of the transit center and $2 million for operation of the park which will be reimbursed by cbd. as previously mentioned, the expenditures line items were updated to reflect the most recent data as a reduction and also a reduction to the asset management fee and administration compared to what was provided to transit operators in september. >> looking at operating reserve the fiscal reserve is projected to stay at the policy level of 25% of operating budget which requires transfer of $183,000 from fund balance. >> from now until a draft operating budget is presented to the board in may we will be

looking at updates on autumn to an autumn three funds projections from mtc to adjust our reimbursement revenue accordingly. we will work with mta staff to secure the allocation of the atm to a supplemental fund by reprograming and allocation committee. we will revisit rental, retail and advertising revenues for the updates and market changes and we continue to seek means to reduce operating expenditure and consecutively transit operators contribution. that concludes my presentation and i'm happy to take your questions. >> shima thank you very much. it's it's a great presentation and just as a reminder to particularly our newer directors, we will see the budget three more times i think yes, including the final approval in june. so this is the beginning in progress and then finally approval. so this is a lengthy process for us. i'm not used to seeing it budget that many times. any questions come? >> just one quick question. director rivers shima so the

question on the r.m. two allocation so what i just heard in your presentation is that it's extended for three years but if it is not extended beyond that then it would be on both the sfm today and ac transit to make up the difference in the future. >> it all depends on the transit center operating revenue so they expect they extended for three years to go back and take a look at fiscal situation of the transit center to see how we can make up you know for the basically lost you know, revenue for the lease, you know, for the rental offices that we have and also for the advertisement and all the other components of our transit you know like center operating revenues and then yes, the remaining balance between the operating budget and operating revenue will be covered by transit operators. >> so then it's in those operators interest to continue to work with mtc to make sure that that our m2 is extended

beyond that period. >> absolutely. our request was for a permanent actually you know allocation of the supplemental funds and they accepted you know, these requests for additional three years so far. >> okay thank you. and their directors thank you for that segway i was going to just bring that up is that i think it'd be helpful for ac transit and s.f. mta to offer letters of support to the mtc committee as well as the lay if we can and we can make sure we have a letter from the board supporting and advocating for that three year extension. >> thank you. >> that would be great. i think the more letters from our partners the better. and thank you for working with our transit partners and thank you our representatives for the collaboration because we're tied together on this and by being able to reduce the contributions from 20 the first

pass in 2024 to now i think is helpful because i don't think any of us have enough money and if we can reduce it even further by the time we get to the final that even be better. so but thank you and again to our partners. thank you. thank you. >> director van water. you look like you're ready to say something if i might. this is a priority for us. we talk a lot about the detox, the portal in our capital projects but maintaining a safe, clean and secure facility and reducing the operator liabilities particularly during the current fiscal cliff discussions is a major priority for us. so the letters we just reference are critical to us. advocacy at mtc is of course critical to us but we're simultaneously looking at ways to increase revenue and reduce costs and you'll see that peppered throughout all of our discussions. we are currently working to retain our tenancies in the building through participation in alternative rent. we're monitoring market conditions to see how we can phase that out over time while continuing to see those tenants thrive and succeed but also to improve increase advertising

opportunities, special event revenues, other things that could offset that operating contribution. our long term goal and the initial design of the center was that it would be still self-sustaining over time and we're still dealing with the long tails of covid and what that has done to ridership and revenue but that is continues to be our goal and so you have our word that we're working to look at it from all angles. >> i just heard you say eat more lasagna. but yes directors this is an item for action. what would you like to do before that? and if there's any public comment, yes, we're going to double check for public comment. >> no one in the room will check online and then online i make a motion to approve. thank you, director forbes. i'll second thank you directors. >> all right. with that we'll go ahead and take a roll call vote. we've got director forbes. i or side director kelly. i really i director brewers i brewers i director walsh yes

walsh i know that vice chairman i'm in stepped out and will be absent for this vote and taji yes guys well item ten is approved go ahead and call your next item please. >> all right. item 11 is approving the amendment of board policy nine to the protest procedures and our cfo she members i will present on the item. thank you, directors. i'm presenting your request to approve updates to board policy number two protest procedures which was initially adopted in 2003 to provide a guideline for managing protests related to federally assisted third party contracts. the proposed updates include expanding the policy to cover all contracts that meet a certain threshold regardless of the funding source and also to clarify the rules and procedures for submission of protests related to solicitation

and prequalification and evaluation processes including a specific details on a standing timeline contents and the process itself. also in these updates for aligning the fda's role in reviewing protests will the with the latest federal regulations and we're recommending a title change for the policy from protest procedures to protest policy to better reflect the content and purpose of the policy i request your approval of these updates and i'm happy to take any questions you may have. thank you shima any questions from the directors? the only comment is thank you and i suspect given the number of executive orders that have been issued so far that you'll probably be back before the year is out with some more updates and changes. fortunately but it will keep you busy.

directors you know other comments and the public comment we'll go ahead and double check for public comment seeing none in the room i can see behind the podium so thank you. >> we'll check online as well members looking to comment on this item. >> all right. directors is item for action. is there a motion? >> i'll move approval. thank you dear careers is there a second? >> i can second. thank you, director galley okay with the first and second director forbes i forbes i director galley i galley i director brewers i brewers i director walsh hi walsh i and g yes guys well i'll note that management is absent for this vote as well but he is on his way back so we'll call you next item please. all right. item 12 directors is the portal master schedule and funding plan update which will be jointly presented by executive director van water mr. rodriguez and cfo merci

directors. >> we're pleased to bring you our master schedule and funding plan. update this is something we've been promising and leading towards for many months and reflects a lot of significant work on behalf of both the project team and our cfo. you've heard quite a bit from our cfo so i want to take a moment to acknowledge her and her team's efforts over the last few months because they've had a number of overlapping workstreams between completing the audit and preparing the preliminary operating budget, looking through the protest procedures and crunching a lot of numbers on a lot of complicated colors of money to bring you today's master schedule and funding plan so well we'll give to you the the policy implications and seek your feedback but just know that there was a lot of detailed work that underpinned this and i just appreciative of the staff's hard work over the holiday season to complete it. so if we could go to the next slide i want to kind of set the table here a little bit with some of our key objectives.

so our focus here is on the next three calendar years starting here in 2025 and going through our proposed full funding grant agreement target date in 2027. >> we're going to look real quick at our project cost and funding that should look very familiar with a few small modifications as a result of that intense effort and then director rodriguez will present the master schedule for the delivery of the work and cfo. ms. i will present the master funding plan and we'll come back to you with hopefully some understanding and comfort as we approach the release of the request for proposals for the largest contract this agency will consider which is the 40 or civil and tunnel contract are eager to get that contractor on board to advance the design as we do have a progressive design build delivery mechanism. so the next slide is something we've shown sorry we're back to i got ahead of myself. so the key objectives as we approach this work are a couple of fold.

first of all we we need to focus on our advocacy to close the funding gap. this is a common theme that predates even my time here three years ago and continues to permeate all of our work which is to get ourselves to a full funding grant agreement so we can start work and as our speaker emerita often says see the dirt actually fly. we're focused now in the next couple of years on completing the design and engineering work so that we are ready to capitalize on those funding opportunities and to complete the documentation to begin those negotiate options. as you've heard previously, it's about a six month negotiation period to secure a full funding grant agreement and they will look to see that we've completed our all of our critical third party agreements with the city and county agencies, with our operators in terms of master cooperative agreements and all of the other documentation to complete those negotiations. we are active lee completing our procurement and as i mentioned looking to onboard that civil and tunnel contractor. our schedule as you'll see shortly is at that about a year out from now and then we're

looking to initiate our pre-construction and right of way acquisition. we keep a risk register for all of the things that this project can and will face and on that is both schedule and budget for some of the things that have been mentioned utility relocation, right of way acquisition and we want to start that work in earnest again so we're ready to take advantage of those funding opportunities. and finally as we've discussed quite a bit we're working to manage that work to durable milestones as we seek that additional funds and what you'll hear today is we have those funds to complete the work just described for the next several years and the focus of the use of those funds is to get to a durable milestone such that if the new funds don't arrive on the schedule we hope they do we have a work product to show for that that will have a useful life going forward so that we don't have to have interruption from the various consultants and contractors helping us complete that. on the next slide you'll see a very familiar pie chart. this represents our capital investment grant amount in blue which is the federal transit

administration's commitment to the project made last spring of $3.38 billion includes the 2010 investment of $729 million and the existing train box or another 8% our committed and budgeted funds totaling 890 million committed and 533 million budgeted or about 16% we've taken about 10% out of our scope through scope production cost actuals ation. these are the items that director rodriguez has been presenting consistently for some months now to reduce scope and actualize interest rates going forward and then we have about 28% remaining in funding to seek a good chunk of that is planned through the state's cap and trade reauthorization and 10% is as indicative of projects of our scope and scale for the hard costs that come from the greenhouse gas reduction fund whether that's through the high speed rail

authority, transit intercity regional capital program or other sources. and so that's why that's reflected here. and then the remaining 18% while it looks like a large wedge of the pie is actually a number of smaller slices that are too numerous to name here but they include things like downtown recovery and land secured financing impact fees, other sources of state and federal discretionary grants that will get us to the full pie. so this should look very similar. there's a few small modifications based on the award of crissy grants and other things in previous months but this has remained very consistent. on the next slide you'll start to see the master schedule and i invite director rodriguez to walk through the details. >> thank you. director of enter water. with the board's approval last year to adjust our full funding grant agreement or what we call an ffg a target date to july 2027 we completed quite a bit of work to adjust our pre-construction activities

with a revised full funding grant agreement target date as well as update our schedules for the seven construction contracts. so while i won't go into detail on each of the construction packages listed, we have updated our construction and procurement start dates and will proceed accordingly contingent upon our ability to fund necessary these contracts excuse me we call this our unconstrained schedule the adjusted schedule results in a new revenue service target date in march 2035. ashima will go into more detail on which of these elements we have currently funded. next slide please. so here are some of the major activities over the next two and a half years while we work to fully secure our additional matching funds and complete the documentation to request the full funding grant agreement. they include real estate activities separated into different tranches based on the schedule advancing design for the construction packages proceeding with the construction contract

procurements as adjusted here pre construction activities in partnership with the selected contractors which include design completion and potentially early procurement of long lead items . we also plan some enabling works during this timeframe such as utility relocation. so i'm going to turn it over to shima to cover our financial status and then i'll come back and update you on 40 c to thank you this this actually table and presentation as is in response to board's request for a jpa financing to come back you know with a funding plan associated with the master schedule and also to provide board with an update on the financial situation of the dti before any of the rfp for delivery packages is brought to the board you know, for approval. >> i hope i can address those two questions through this presentation. this table shows the year over year funding needs aligned with

the project's master schedule milestones within a five year that alfonzo presented. basically what it needs and what it takes to complete and achieve all them all the milestones in master a schedule to meet ffg target of july 2027 tgp must secure $2.5 billion by mid fiscal year 2027. the blue and solomon color sections in this chart represent the total funding gap that must be filled through the cic grant as well as additional state and local funds to stay on a schedule and achieve master schedule milestones. the need begins in fiscal year 2026 and escalates reaching to nearly $100 million in fiscal year 2028 if we fail to obtain the required contributions whether from the state cap and trade program or a regional transportation measure or other

fund sources, the portal will face a significant funding shortfall in fiscal year 2028, posing a major challenge to the project to continue beyond 2028 . >> the current funding strategy is in basically driving our focus at the federal level. our primary focus is securing the crissy grants in coordination with f warrior staff and completing the necessary steps for the new starts agreement. we are also actively pursuing additional competitive grants as they become available. however, with the continuing executive orders that we received in the past week from the office of management and budget to freezing and freezing you know like all the federal funds and programs and loans, it is uncertain to us that what funds what programs and projects, you

know, could be affected. so we're closely monitoring developments to understand potential impacts to the project at the state level we're advocating with callisto and legislative partners to prioritize the portal in the cap and trade reauthorization program and secure inclusion of the portal in the capital funding component of the 2026 regional transportation measure at the regional level we are currently in the process of elevating the portal to level one to level one of major project advancement policy and also to reallocating our m3 funds to 40 cities civil and total contract at the local level we're exploring the means to pledge the future tax increment revenue to the transbay program and extend the transbay cft funds to the project area. >> these are strategies are based on currently known potential funds sources but because we are uncertain about

any of these strategies and fund sources and the dollar amounts we are unable at this time to develop a fully fleshed out, you know, funding plan to shows how we're closing the gap in each fiscal year and by what funds source although a major priority for tjp and partner agencies is to confirm the remaining matching funds to close the gap under the project's recently updated work program, tjp will lead a funding strategy and advocacy program. we partner agencies to focus on securing the extension of cap and trade and other potential local funds sources in the during this journey we will seek the board's guidance engagement and support for these advocacy activities. of course over the next as our executive director mentioned over the next over the next

three years our primary focus will be on achieving durable milestone while continuing to pursue future funding. that means our near term funding must funding plan must prioritize completing the design and engineering of the portal that includes advancing 40 to 60% design to get the project ready for construction we must also secure finalizing the documents necessary to request the fully funding grant agreements from fda in close collaboration with the project team who provided the cost and a schedule for each delivery package to finance the finance team. develop the cash flow and funding plan that is strategically uses current available fund sources to reach these critical milestones. the funding plan which i will present in the upcoming slides is based on the following key assumptions it is assumed timely expenditure of the funds as some of the funds sources have limited spending window.

>> it also assumed you know like the cost and it also considered all the funding constraints as some of the funds sources are only eligible for certain scopes and cost. we also assume timely allocation of the funds but by our funding agency that helps us deliver you know, each package on a schedule on time there is there is also that there is also another assumption that there will be know a cost discipline and cost control throughout the funding plan meanings that are final rfp that you know is brought to the board will not exceed the estimated cost that's presented, you know, to funding to finance next. >> so with those assumptions the current funding plan will cover the completion of design and engineering for utility

relocation for sinking site clearing and building demolition. i must note that the value of each package as shown in this slides include the costs of design and construction with allocated contingency escalated to midpoint but do not factor in the on allocated contingency . so slide four the civil and tunnel components the funding plan will support completion of 60% design ensuring the project is ready for a construction contract a key funding source is the 75 million reallocation of item three funds by mtc which will be directed towards pre-construction activities for 40 city looking ahead if jpa is unable to secure the sig grant by 2027 but successfully obtain cap and trade funds we will implement an alternative strategy advancing the design to 100% completion.

this approach will reduce contingency costs in the guaranteed maximum price for 40 city construction and making the project more cost efficient . >> assuming christie funds are secured and remain unaffected by the executive order, the funding plan will support the completion of the track and rail systems including the for sinking at grade track and systems. however, due to funding strains the station fit out has been deprioritized and will only move forward once new and additional funds become available. >> finally achieving our key milestones over the next three years will require robust program support. the funding plan is designed to cover the administration and management of engineering and design as well as preparation of the necessary documents for submitting the foia request.

in addition, as indicated funding for right away acquisition is secured and could be used once the acquisition process is complete i will i will pass it to our sponsor to talk about the are 40 city you know rfp process. >> thank you sheila. so the largest contract of all of our construction program is for civil and tunnel scope. we call that 40 c t and it is through this contract that will be able to address and mitigate project risks jointly with the selected contractor and we'll be focusing on the most significant potential cost and schedule impacts the areas of those impacts. to do so we'll progress the contract into two phases through separate authorizations and tp1 for pre-construction services and then tp2 for construction. >> just want to remind you that this is a progressive design build contract which means the contractor we select with will

not only build the scope but will also refine and complete its design in ntp1 the progressive design build contractor will advance the design from its current preliminary engineering state to a 60% level roughly for certain scope some design elements will be further advanced such as that the construction costs will be advanced such that we can have certainty in pricing, in estimating construction cost. the reason to advance the design beyond 60% of those select areas is to reduce risk pricing in our cost negotiations with the contractor. this again all occurs during the first phase before we authorize the second phase will negotiate a guaranteed maximum price with the contract later at that time we'll also have the contractor's construction schedule and sequencing to inform our outreach and engagement program and better manage interfaces with the other contracts with overlapping schedules such as that at the transit center the fit out of the transit center

and our tracking systems contracts. note that phase one takes us all the way to mid 2028 which is beyond the date we presently expect to have our full funding grant agreement. and as sheena shima pointed out, we have secured funding to complete phase one. we also show on the graphic an alternative scenario if we fall short completing our local share or securing our full funding grant agreement during this time frame. and that strategy is to advance construction to 100% and begin construction when we have secured funding includes our presentation shima and i and i'm sure adam are available to answer your questions. very good, adam. alfonso shima thank you. this is exactly what i think the board's looking for in the public to see where we're headed and to be able to kind of see where the risks are. and so directors know i'll open up for your first questions. >> vice chair mandolin. thank you for the presentation and for your work. >> i guess i got a couple of

one is there is this gap sort of before the full funding grant agreement and i guess i'm curious about what's in that gap and what's what is the likelihood that it gets filled and what happens if it doesn't get filled and what is that what does that mean? the gap before fully funding grant agreement that starts in fiscal year 2026 that gap is related to the construction of utility relocation construction management and also our program management construction management component. it's exactly $8 million $1.5 million for utility relocation construction and $6.5 million for 4 p.m. sqm to basically complete you know like and help us with that construction management that they both have been deprioritized with the current, you know, available fund sources. >> so that gap is basically on a very perfect unconstrained you know like kind of situation and scenario that tgp has all the funding to implement the

entire master schedule but because we cannot and we have you know we're just working with current available funds so that gaps is basically will be covered through the prioritizing of utility relocation construction and you know on the me if i may is does that mean that that risk gets pushed out to a future phase because we're not doing the work now and it's going to be tied up in the near future phase? >> that is correct because currently with the available funding and the color of money that we have available, we decided instead of you know, simultaneously take the you know, design and enjoy and construction at a same time so we deprioritized the construction to complete the design and engineering phase first. so the gap that is shown in the first two years is mainly related to construction of utility relocation. thank you. sorry which has been pushed out if i could there that means we're not planning on doing it

during during this time. so that gap is actually like a it's not like we're projecting we're projecting a gap but we think we're going to close it. we're not thinking we're going to close that. it's like that is getting deferred and i think there's and that's 8,000,000 in 26 but then there's another chunk in 27, right? >> so if i could there's there's really two parallel streams that we're focused on here. we like to think of the full funding grant agreement and the start of construction and building this wonderful sustainable infrastructure. in order to do that there is multiple years and multiple millions of dollars of pre-construction work design completion and other technical capacity that needs to be done. so what i think the presentation is designed to show is we have the funding to complete that ladder stream the design and engineering and master cooperative agreement negotiations and pre-construction work through roughly 2027.

there is a need for some additional funds to complete that work. so you saw 40 getting to a 60% design but not 100%. we'd like to get that to 100% and we'd like to complete some of the pre-construction work utility relocation and other things high among them. the second and more challenging bucket is closing that larger funding gap to get into construction and that is a series of we're going to have to bat a thousand on a couple of different things to close that and that's state, local, regional and federal to do so. but our focus is to complete that work and make sure that we are doing it in a durable capacity such that if we don't bathhouse and we are completing work that has a shelf life to it but if we do we are fully ready to start that construction a project of this scale and magnitude. it's the last dollar in is often the easiest dollar to get. everyone wants to get you over

the finish line and into the ribbon cutting getting from where we are today at 72% to 8590% is our real challenge and that's where we are now. but what i think we're we're telling you today is we have a couple of years where we are funded to do that technical work as we approach that secondary challenge and move forward and then we have various off ramps should we not be successful securing some of those funds for the construction component? my second question is i noticed there's a star by the regional measure meaning that we think the regional measure is significant for this project and could you talk a little bit about that or what your i mean i don't think i understand what's going on with the regional measure. so what do we think is happening with the potentially happening with the regional measure for t j pay and the portal? >> where is the star next the regional measure on slide 14 it was on a timeline. >> it was just like you know

regardless the there's been much reported on the the challenges of bringing the region together around the regional measure. and while we're not in all of those conversations and some of you may be i would characterize the challenge as a couple of things one operating versus capital and there is a significant operating need to keep our partners at ac transit at muni, at caltrain, at bart, at all the operators throughout the system running with robust service to attract the ridership and with the headways they need to get them moving. the other side is capital. there aren't that many projects that are as ready to go as the portland they are 30% design. they're environmentally cleared. they're in the pipeline with the fta and others. we'd like to be included in consideration of the capital side the metropolitan transportation commission, the various operators, the many elected officials throughout the 101 cities the bay are trying to sort through this now given voter propensity which is not likely to to fund any old

measure at the ballot, it has to be a surgically well-designed measure that provides a benefit to the riders and to the community to get to that passage so we we are a part of these discussions and as i mentioned at the top of the meeting in two different ways one is the operating costs of just keeping a safe and secure facility which is a fairly small number and the other is the capital as a source of match for the portal having done regional bond measures in san francisco and elsewhere, voters tend to like new things with new money and so capital is a likely component. what percentage that is what what the projects are on that list is still under discussion as we mentioned. sb 63 is just the legislative vehicle to authorize it. i believe the operators are seeking multiple paths here. one is to go it alone should they need to. one is to do us subset of the bay area for county measure one is to try to unite the all the counties and i'm simplifying

very complicated conversations over the last year here but capital is one of the things that voters tend to be supportive of because they see new things as a result of their new funds and i totally see the benefit of that and and i think it would be great i guess and maybe it's just because i'm only hearing this about this conversation in the context of these operators who are feeling a lot of anxiety. >> jonathan yeah and i guess i'm just either i'm i'm i don't i don't know how the capital conversation and it sounds like i mean i know i know there's advocacy around it from the from the building community and i know that there's probably support for it in the political community i mean among politicians and maybe among voters. >> i just don't i feel like i've heard a lot about different models of the different of the measures and how it would help this

agency or that agency. i haven't seen in any of that. and here's what it would do for for the following big here's some of the big construction projects in the region that we're thinking might and maybe that's going to come in at some point or maybe it's happening already and i'm just not hearing about it because it's not part of the conversation part of it. >> so yeah, well where we are with the regional measure is the metropolitan transportation commission. mtc is out in the field with a poll now on their options. option one is essentially a ten year option that really focuses on dealing with the operating issues of the region option one a which is a hybrid which they're also polling on polls on a longer 30 year measure in that case you know depending on how that works out, there is an assumption that a component that would be capital and that there would be a component of those dollars that revert to the counties to decide how they want to use those dollars for

capital investments. so the conversation of what those are i think so san francisco and san mateo and santa clara would presumably be i mean deciding all amongst themselves whether this is an important investment that how that would the theory is right now that the counties would have a huge say over how that component of the funding would work. i do think moving into tier one and plan bay area helps with the regional conversation. i think this board represents a lot of the parties involved that would have dollars to contribute if that type of regional measure emerged but i think we will know more probably in late february and march once the polling is done and mts intends on making that public. so that will give us a sense of the feasibility of that which kind of leads into my question and you know director of land water you brought it up that

there are two parallel tracks here so what is smart in what we have received today is that shima as you said considering timely use of funds and durable work, we're using the cash on hand and now to do work that would happen come what may and would be valuable the day we get any type of money and we get a full funding plan for construction. >> so that's the smart move. >> what is not in this presentation which i think at some point in the future it would be good for the board to get is this schedule of securing those dollars to achieve the full funding grant agreement because my understanding is that those dollars need to be committed for the fta to give you the full funding. well i know because i had to deal with central some way but those dollars need to be committed and there's a schedule kind of working backwards from the full funding grant agreement on like

regional measure at some date some date in a schedule we will need to know if those dollars can be committed in order to get the figure so the scheduled today is very good in laying out the schedule of work maximize the dollars that exist. but i think as you noted adam at some point we need a parallel schedule of the milestones of at what date do we need to secure that source? at what date do we need to know this information because that that's a risk evaluation with regard to the ability to secure the figure and do the additional work. so not not right away. i think that would be another phase of this work. but i think that that parallel work track you're talking about i think it would be good to get a schedule of those milestones in the future. thank you. directors vice chair did you have more questions? >> i know there's a lot going on. i just i don't i don't love that formula for either san francisco or ti or ti jpa. i mean it sounds like a for a

formula to come and ask san francisco to you know close close gaps with you know our share of the of the measure and you know we're believing this is a regional measure and so if the capital money goes to counties that's just concerning to me. i wonder if there's a way for for jpa to insert itself into the conversation and be like no, we are an agency and we should be getting a share of some of this somehow. i also want to mention actually one of the components of this you know, current funding plan that we were trying to fund and accomplish is advancing the 40 city to 60% design because we believe that right that we can lower that contingency and with that, you know, the lowering the contingency would lower our matching funds need you know, for ffg so that would be also that's why you know the

focus of this funding plan is to secure the funding for advancing 40 city to 60% today . >> can i ask yes alfonso in the in the fta put kind of a large requirement of an allocated contingency on this project which is causing you know, some of the issue but you are using progressive design build so you will get a fixed price. do you feel that the fta fully understands that the risk in construction should be significantly reduced if you get a fixed price so maybe that can unallocated contingency requirements a little too high? >> no i, i agree absolutely. the fta and their consultant the pmo c they work with us every month. what if in progressing the project evaluating our risk we talk a lot about how alfonso can gymboree please get to my you know i use the word risk but what i really should have

said is how does it affect contingency? because when we met with fta summer of 2023 we looked at our risk register preliminary engineering, we evaluated the evaluated the risks and we quantified it. we are carrying 43% of the overall project cost and contingency allocated in allocated most unallocated that's over $2 billion. so the importance of being able to hire the contractor that's going to complete design, build the work and price it yep is paramount and we can and the fta does recognize in the pmo c does recognize that that is a strong risk mitigation approach . thank you. vice-chair any more directors any other comments? um then i'll i'll jump in because i'm involved in many of the regional conversations also and it's and there's no easy path right now. i think there's a lot of conversations and from a

pragmatic standpoint with some of the legislators i've talked myself tax if that's the choice is right at 9.8 and i don't think there's any advocacy to go above ten in sacramento so if you live the ten and many of us are 9.7, 9.8, 9.85 whatever there's going to be winners and losers and the formula. and so we need to look at different different ways to move beyond this. and santa clara county has already said i'm not in and so that leaves the other four counties and i can my counties leaning to be not in but we'll know more in the next 30 to 45 days because there are multiple polls out in the field not just mtc but caltrans out in the field. i think bart is going to be a field we're all trying to figure out what the tolerance and support levels are from the voters because no matter what we come up with it's up to the voters we can we can dream all

we want but the voters have to say yes to something. but this is a great presentation because in those conversations is what i find helpful is i got this right slide seven where you have the cash flow needs and i would marry that with the other slides ten, 11, 12 to be able to say to our bay area legislative delegation if you can find $8 million $10 million to keep this project going, this is what we will get done because the important thing alfonzo this is what you just said if we can get the shovel ready with a high degree of certainty money will show up. i mean i've lived this capital improvement construction long enough that if i would get phone calls jeff somebody couldn't use $20 million. you have anything you can use it on? i'm i mean those are great phone calls to get and say i'm ready, i've got engineering

done, i've got permitting, i've got environmental clearance. i can use it right now. and so if i understood this series of slides correctly we need probably in the range over 26 through 28 somewhere in the range of $50 million or i'm talking round numbers to keep things going to get to 100% engineering or 100% certainty of engineering. the big numbers is construction which we don't have enough but to get to that shovel ready point with a high degree of certainty is a tremendous value and the state legislators that i've talked to are very supportive of the project. they don't have $3 billion to give us but i think they might be able to find a way to incrementally get us through that short term gap to get us to shovel ready. so marrying those slides together would be very helpful for adam and lily to go to sacramento and inform our bay area legislative delegation

what our needs are 26, 27 and 28 and can you help? so i think and then for all of us to have those same slides be able to talk in our conversations because we talked with everybody a lot right now because of the regional measure this is what we need and that's how that conversation came up. my my last question and i'll start with you, adam. >> this is you know, on a scale of 1 to 10 where tens everything perfect and everything is going to show up when we need it to one is will make budget on bid day with good bids we're pretty think this presentation winds up you know is it one is it ten or somewhere in between the presentation yeah i mean the funding and the present you know the are we overly optimistic are we over the conservative are we realistic? where are we?

we're in the range of the world we're living in today because it can change by 12:00 where where are we? >> where's where's this timeline and schedule and funding set on? yeah, i mean i think it would be an understatement to say anything other than we live in very turbulent political times at every level right? we have voter uncertainty at the regional measure. there's not enough funding for what we think voters would approve to meet all of our operating and capital needs full stop. so that is a challenge at the regional level we have a federal administration that is making dramatic moves and subsequently rescinding them, making additional ones and you know, changing the landscape quickly and arguably beyond the individual authorities that are making those pronouncements. so it's a topsy turvy situation there at the state level we have a governor with two years remaining who wants to secure some of his obligations specifically around cap and trade.

that is a big and challenging statewide conversation at a time when voters don't prioritize transportation as their number one concern. we're still working our way through turbulence, working our way through inflation and all sorts of things that affect people's quality of life and cost of living before their commute and they're not commuting and moving in the same way they did pre-pandemic. so there's a lot of turbulence but in that turbulence we need to be prepared and we need to keep our head down moving forward. so what is presented to you here today is an aggressive but potentially achievable schedule. is it likely we will see given all that turbulence? but we need to make sure that we are continuing that work because we have selected a method that is increasingly the industry standard of progressive design build and our priority is to get the empty seat in this room which is the contractor who will build it. only that contractor can tell us exactly how they would phase

it, how they would stage it, how they would fund it, how they would deliver it. we are at 30% design and we are stuck at 30% design. until we can bring that contractor on board we are carrying a very large contingency because our design is not close to 100% because we don't know exactly what is underneath the street that we need to relocate from utilities we have done trenching and we know what is roughly there. we've presented that to you in 2024. we did that at townsend street and at second and howard but until we advanced some of that work we were carrying contingency both on schedule and on budget. so as the chair mentioned, things change, they change quickly and if you're not ready to seize those opportunities then you haven't prepared your project for success. so we are trying to prepare our project for success but do it in durable ways recognizing that it is still an aggressive schedule and there are many pathways here that could either lead to success or require an off ramp. but if we have to do those off ramps we we want to make sure

that we have something to show for that that we have mobilized our contractors, our consultants to deliver a good that will last. we will have completed design. we will have completed a master cooperative agreement. we will have completed right of way negotiations. we have completed work that is necessary work to deliver this project. i think the region remains committed to this project. this project's been decades in the planning. it's been a century and the thinking it's just now at a very turbulent time where there is opportunity and risk so we're not can you give me a number i know 10i want to go back to one. i think the only person that answers questions directly anymore and that's okay and that's okay. >> but i'll go back to what i said earlier and tie it to a decision i made at my council meeting going to our legislative delegation and in the bay area asking for that bridge for those three years is going to be critical because i

yeah, i'm hopeful that there'll be a change in 28 that we can then be ready for with perhaps a new administration. and so i think not kicking the can down the road. i think we need to be ready but i think there will be support and this is where i'm optimistic in the bay area delegation in the state to keep this project moving forward in this turbulent time. yeah, we're not asking for $3 billion. we're i don't know what the number was 50 to 60 million over three fiscal years. i think we can find that through our advocacy in sacramento and i'm pleased to report up director magisk you and i were in sacramento a month ago december having exactly these conversations and there's a lot to be hopeful for callistus county state rail plan really focuses on the delivery of this project in the next ten years and taking advantage of the investments that the state and federal governments have made in the salesforce transit center

and the electrification of caltrain in the proposed standard gauge rail crossing of the the bay and planned and infrastructure at dearborn station and seeing this as a big part of the vision of our climate goals going forward we have translated that momentum into a request that in the next couple of fiscal years we will need funding to complete some of this design and engineering and that was heard and received with a thank you for the clarity and that is within the realm of possibility both by the agencies, by the state delegation and by the governor's office directly. so we've been fairly clear and i take your point that these types of presentations and charts kind of clarify that need so that we are taking advantage of our moment in time and the federal investment to finally deliver this project. thank you. this is a great presentation and looking forward to having this in our monthly reports and perhaps quarterly updates and hopefully not more often

than that given the turbulence that's going on right now. any other questions directors vice chair go ahead. >> i mean well i mean i just it's sort of you know, let's you know, we have we have to be aiming and it's good you are aiming at you know what what currently looks possible but aspirational and given the the reality of the world that we're in you know there is a there's a there's certainly it's with i mean i think we're all hopeful cap and trade gets renewed in 25 or conversation right i mean we're we're back to 26 i think and so you know we keep seeing that time going back and and

the real deadline is 30 legislators being legislators you know why do something early when you can when you can particularly when it's hard and so you know 27 is not an election year is another year where you can see this getting pushed into 27 and getting renewed. then. but you could also see a bunch of challenges with this administration and we're all we're not i'm sure we have some trump we do have plenty of trump supporters in the bay area and san mateo and around the region. but you know, you could imagine this not as basically trying to keep the lights on until 2029 or 2030 which seems like a very realistic and actually also aspirational like like that's also optimistic like 29 or 30 we're actually going that would not be our you know, our our

number one choice but it's better than never goes. >> so yeah, a couple of quick comments. one, let's remember the two paths here. we continue to focus on the larger gap because that is the bigger challenge but there is the short term and we need to keep having the conversations to continue the design and engineering which both reduces contingency and risk and advances our readiness. and then two is as i mentioned to the examiner a couple of weeks ago, this is a corridor that the last three administrations including the first trump administration have invested heavily. and so our train box was 400 million in the obama administration electrification the full funding grant fund agreement was signed in the trump administration. our federal transit administration coag commitment was in the biden administration . and so these take you know, sometimes generations to deliver through multiple changes in leadership and that's just the focus we have to have on these types of projects.

>> director galli so i just want to say having been kind of part of the process of getting this this here, i think that this is a really good plan that takes into consideration what we know now which is pretty much the best that we can do. we can always speculate and to take what we know now to advance the project to a place that will be ready when more certainty is there. and i think that's the best that we can do when delivering these big megaprojects is that we always want to just be ready for the next opportunity, the next infusion of funding and this is a plan that allows this project to do that very good. anyone else any other directors ? this is an information item so we'll see more of this as we as time marches on not public comment or check for public comment not in the room.

we'll check online and seeing none so we can go ahead and move into unit wrap up our meeting here at the last business item. >> yes. our next item is authorizing the board chair to execute the portal project implementation memorandum of understanding with partnering agencies to support implementation of the portal also known as the downtown rail extension in alfonso rodriguez, the port a project director and jesse kaylor, the county transportation authority rail program manager will jointly present this item. >> thank you. before i invite mr. kaylor up to join me, i do want to mention that the item before you is the result of a great deal of work and in my view continued partnership and cooperation among the five agencies to develop this implementation memorandum of understanding for the portal. now the task was co-led by the san francisco county transportation authority and the metropol ten transportation commission. the agreement is considered by the fta as a critical third

party agreement as it addresses support in advancing the project. i'd like to invite mr. kaylor cty, a rail program manager, to provide an overview of the mou . >> thank you. director rodriguez good morning chair g. and director is jesse keller s.f. cta i will say that we are really thrilled to be here this morning and i will say in the context of your preceding item that we see this mou as unqualifiedly positive and in fact in the context of the uncertainty we are all confronting i would characterize it as something that helps to fortify the firm foundation of local partnership that will be particularly necessary as we confront the turbulent times that director vander water spoke to as director rodriguez noted i am here on behalf of the joint mtc s.f. cta governance team underneath or as part of the entire integrated program management team. i do also want to offer and add my gratitude to the entirety of the ipm team for their hard

work on this mou. it feels now as if we had innumerable meetings and conversations on this topic over obviously the last four years and i'll also thank our leadership at all of our agencies through our previous executive steering committee and now our executive working group for their continuous counsel support and direction to prepare this document. i have a brief set of verbal remarks to seek your approval to authorize charges to execute this new six agency memorandum of understanding. the completion of this mou is the culmination of one of the key tasks from our prior mou mou the san francisco peninsula rail program mou which was originally executed in 2020. the purpose of that mou was to bring the project to a ready for procurement status as well as to advance it through the fta process. that mou described an organization structure at the staff and executive levels and defined a work program with a set of agreed tasks including preparing governance recommendations for this board. we brought forward initial recommendations in summer of

2023 followed by this board's approval in august of 2024 or august. we brought initial recommendations in 2022 followed by this board approval in summer of 2024 of the governance blueprint. that blueprint identified policy recommendations for the governance of the project through its completion and proposed that the agencies replace the previous mou with a new mou to serve that project over that period. since preparation of the blueprint the ipm team has worked to prepare a pair of agreements to implement the blueprints recommendations. the first of those agreements was a management administrative agreement executed by director van de water and his colleagues at the chief executive level which described and memorialized the administrative structure through which staff and executive will continue to collaborate to support te jpa and delivering the project. that management agreement was fully executed in november of last year and also included a work plan describing activities over the next three years consistent with the funding and schedule update which you

just received. the mou now before you this morning also describes and references that administrative organizational structure as well as contemplating this board's future establishment of the portal board committee as as recommended in the blueprint with that committee to be established as a standing committee of this board to support the project as it moves into construction. the mou calls for that committee to be established by this board prior to the award of any construction contract for the project including the preconstruction phase of the progressive design build 40 seat contract. this approach also reflects a through line in both agreements which is the phased implementation of the blueprints recommendations so that we are able to continue our existing structure even as we start to build out the working groups and bodies necessary to support interagency collaboration as the project eventually moves forward into construction. these agreements also provide for an annual process by which the agencies at a staff level

will review and update that multi-agency work program in support of the annual budgeting processes that all agencies must do to bring forward their own resources to the project. with that i will finally note that all of the other partner agencies have now completed execution of this mou and in fact a number of you saw this agreement in other capacities including at caltrain, the board of supervisors and the transportation authority. with that director rodriguez and i are happy to take any questions and we look forward to your comments and action. >> jesse, thank you very much for all the hard work and i think adam, you probably felt like you met forever on ending this but you're here and now it's up for board action. >> any questions? directors vice chair so on on on behalf of the san francisco county transportation authority even though i'm not the chair anymore, i do want to thank our employee jesse kaylor for all of his work on this. thank you, vice chair. any other comments? >> director galli as part someone part of the sausage

making, i also just want to say thank you to everybody and all the partners for the collaboration and kind of this respectful way that we were able to move this process through. and also jesse is just kind of steadfast dedication and organization to the whole process was so helpful. >> so thank you so much. very good. thank you. any other directors you know this can only help when it's all signed with our grant applications and seeking additional funds to have all these agencies in lockstep saying we need your help and support and we're working together collaboratively. >> so before we take action, any public comment we will double check for public comment online. >> i don't believe there's any in the room directors and just because there is a slight delay online and we have a frequent commenter i just want that he has a chance. >> all right. please do if you can make sure

that it's about a 15 second delay i think 10 to 15 second we'll just make sure that he has an opportunity to comment and it does not appear so. >> so directors oh yes. >> there we go. all right. we'll be on it. all right. color come on through. >> i call her this is roland. in the interest of time i do not have any comment. >> thank you. okay. thank you, roland. all right, directors, is there a motion? vice chairman edelman move approval. is there a second? >> i second. thank you, director forbes. roll call. vote, please. all right with that? director forbes ai forbes ai director galli ai galli ai director ruiz i was i director walsh i walsh ai vice chair mandolin ai management i in chair g yes. ag as i as well. item 13 is approved. that concludes your business. >> very good. thank you directors for your time and gifts of your commitment today we're done and we are not meeting in

february so we will see in march. happy lunar new year. welcome to earth snake and we will see you in a few weeks. meeting adjourned. >> thank you. thank you >> everything we do in the tenderloin, we urban outfit. here, this gives us an opportunity to collaborate with

other agencies and we become familiar with how other agencies operate and allow us to be more flexible and get better at what we depo in the line of work in this task. >> sometimes you go down and it's hard to get up. so we see ourselves as providing an opportunity for the unhoused to get up. and so i really believe that when they come here and they've said it, this right here is absolutely needed. you can't ask for nothing better. >> the tenderloin is the stuff that ain't on the list of remedies, liked the spiritual connection to recovery and why would i? why would i recover? what have i got to live for? things like that. and sharing the stories. like i was homeless and just the team. and some people need that extra connection on why they can change their life or how they could. >> we have a lot of guests that will come in and say i would like -- you know, i need help with shelter, food, and primary care doctor.

and so here, that's three rooms down the hall. so if you book them, they get all of their needs taken care of in one go. this is an opportunity for us here in the tenderloin to come together, try out these ideas to see if we can put -- get -- connect people to services in a >> meeting will come to order. 2025 regular meeting of lafco i'm acting chair hope willi