and completing of construction in october of 2017. at the time, we were still looking at relatively low escalation rates particularly in the very near term, 2010, 2011. and of course, there were additional advancements in the design that were reflected in the cost estimates and we had implemented the cmgc contracting strategy and so that included both the estimates based on a cmg c contracting approach but the establishment of a cmgc contingentcy that i will scribe later in the program. and it included a rear,al location of program wide costs from phase two to phase one, the initial time line for phase one was developed, there was an expectation of a significant amount of overlap between phase one and phase two efforts, and at the time of the revised budget was adopted, it was clear that the phase two would not be in full swing until a later date and so there was a reallocation or a reaportionment of program wide costs that had an impact on phase one's budget. >> so that the revised base line budget as we adopted in may of 2010, inclu

rail level core and shell in the first phase of construction. and in february of 2009, the arab program was announced in the tjpa filed an application to pursue funding that would allow us to include that construction in phase one. and it was based on that pending application that in june of 2009, the tjpa board authorized us to direct pelly clark pelly as they moved into the development phase to assume that the rail levels would be constructed in the first phase in preparing the design development documents. and in january of 2010, we were notified of the award of 400 million under the program to allow us to construct the rail levels in phase one and it was a significant benefit to the program to allow us to mid gate both the risks of phase one, and face two construction of the transit center. to provide a rail-ready transit center to improve the ground floor design of the transit center by providing program space below grade where we could locate a number of utility and back of house programs freing up the ground level to more publicly, public

and the portal that is currently under construction. as mr. reiskin mentioned, the tunnel boring machines are fabricated and are scheduled to be arrive in san francisco in early april and is projected that the machines will be removed in north beach by the second or early third quarter of 2014. these are recent photographs of the launch box construction underneath fourth street happening as we speak imploring similar state-of-the-art technique that will be used in the proposed pagoda property retrieval shaft work site. i'd like to please note the second vertical concrete walls with interior steel bracing and studs and struts. the second concrete walls are installed deep into an impervious soil layer, allowing for the interior excavation of the box to be done without any impact to the surrounding water table or any of the adjacent buildings. this is the original location of the tunnel boring machine retrieval box on columbus avenue that was presented to you and was approved by this body in august of 2008. now, in an effort to address com

with a warded the primary construction work to shimmick. we have our structural steel package out to bid and initiated requests to determine cast note production capacity and awarded the specialty consultant contract to prepare the cast note to augment the super structure package and we have that package currently out to bid. we have completed the performance test program and started preparation of the bid package addendum. with responsibility to the transit center construction documents we completed the risk and vulnerability assessment update for the epentire program and completed the needs assessment for enhanced it and communication systems. in to 12 we awarded a number of contracts and additions to the ones i mentioned for personnel and material services, below grade structure and grounding systems. we completed five relocation trade packages which you have in front of you. and we also did a lot of work on the buttress shoring and excavation front. the wall was completed around the perimeter of the site. 1 15 plus cross-lot bracing str

the tunnel construction of 2008 is unnecessary. we can save up to $80 million by burying or extracting machines in chinatown or burying them anywhere between chinatown and northern beach, as has been done in brisbane australia, which entombed them in concrete. the tunnel in the english channel did that. new york city's two subway and rail projects are entombing tbms. there are better solutions. >> thank you very much. next speaker. >> good afternoon. my name is -- and i'm homeowner in northern beach. i think fixing the pagoda is positive and eliminating union as a construction site is positive, butume not sure that the whole approach is appropriate planning approach for the city to take. we're moving the machines in north beach is really not economically efficient and i think there was a lot of commentary on that that you have seen. the tunnel-boring machinery is just a ruse to use funds to extend the subway beyond its federally -- it's otherwise federally-funded boundaries. the november, 2008 federal document approving this explic

i work with plant construction. i have been at plant for about 13 years, construction manager and vice president on this project if there is a project. i was asked to take a minute and reiterate what is in my letter. we bid out all of the subcontract work, probably 50 subcontractors ready to go as well once the project goes forward. if you're not familiar with plant construction we want to point out a couple of things. we are a san francisco company company, we been here for 65 years. of the next 26 months there will 521,000 man hours translated in the range of 125 people average per day and up to 200 workers at the peak. if you have any questions i will be glad to answer them. i wanted to put in our support for the project. >>: any additional public comment on this item? >>: good afternoon commissioners, president fong. my name is john huang, and member of the international brotherhood of electrical workers local 6. i live and work here in san francisco. i'm in front of you speaking in favor of this project. this p

that has changed the conventional design and construction and facility operations. and in a nutshell these terrorist threats have over turned the protective design paradigm, how we go to create safe and secure facilities. what that is really meant is that there are a series of what we consider now to be industry standard best practices, the things that do to create safe places, the subject matters and urs was to do exactly that. obviously we are interested in limiting liability. that is a certain of any board of directors, it is a concern of anyone who is in the design profession. but we also wanted to make sure that we have a safe and secure facility. you will see in the bottom, the term that the safe act designation and we are going to talk about that a little bit and i will tell you what that means.. why do i mention the safety act? >> at the end of the day, there is no facility that can be built with that risk. every facility has some degree of risk. and so we make investments in the facility against the industry standards of practice, best care, intelligence ga

moving into the schemeatic design and completing the construction documents in 2011. in september of 2008, we completed the concept validation phase. reconciling the pelly proposal, and the design proposal with the base line budget and. hok scheme and we were able to incorporate a number of new ideas into the design of the transit center. of course, the signature park that is central to the pelly proposal and also a number of energy conservation measures that allowed us to move from the initial target of lead silver to lead gold and the vision that pelly had brought to the competition to the design of the transit center. at that time, we were maintaining the cost estimated cost of construction within the original $1.89 budget through a number of valuing engineering measures both with pelly clark pelly as well as osha working as the cmgc. and we moved into natural ventilation and eliminated a glass enclosure that was to go around the perimeter of the bus boarding island. we reduced the number of skylights at the park level from five to three which opened up more progra

positive and eliminating union as a construction site is positive, butume not sure that the whole approach is appropriate planning approach for the city to take. we're moving the machines in north beach is really not economically efficient and i think there was a lot of commentary on that that you have seen. the tunnel-boring machinery is just a ruse to use funds to extend the subway beyond its federally -- it's otherwise federally-funded boundaries. the november, 2008 federal document approving this explicitly lists a temporary tunnel for the extraction of the tunnel-boring machines and thus if there are no tunnel-boring machines there will be no tunneling into north beach. however, the city wants to tunnel into northern beach to get a start on the subway that will extend further. this is fine if it would properly plan. i am aware there has been no proper planning on the extension of the subway beyond chinatown, no community meetings on what path it should take and how it would be used. we are starting to build for a future subway without the careful study and approval of what we are goin

the second category again is within the construction budget is the construction contingentcy and that is a reserve that is held for the course of construction, unforeseen conditions and other change ts in the scope or construction requirements. and the reserve, against those for those changes and claims. the cmg ccontingentcy, is what we established it is some what unique to the construction manager general contractor approach to construction that we are employing on our project. >> that is a reserve to handle coordination between trade subcontractors and provide for a level of schedule recovery if the contractor falls behind schedule and needs to accelerate to stay on the schedule for october 2017 completion and related issues to the over all excuse of the work and finally the program reserve which is its own budget category and is a reserve against all other program budgetary requirements. so, in bringing an assessment in the recommendation to the board, we reviewed the status of all of the existing reserves, and in addition our recommending two additional components of contingentcy

the tunnel construction of 2008 is unnecessary. we can save up to $80 million by burying or extracting machines in chinatown or burying them anywhere between chinatown and northern beach, as has been done in brisbane australia, which entombed them in concrete. the tunnel in the english channel did that. new york city's two subway and rail projects are entombing tbms. there are better solutions. >> thank you very much. next speaker. >> good afternoon. my name is -- and i'm homeowner in northern beach. i

construction issues, construction management itself has always resided in the field. the joc program is a part of the cmb of the puc and the constructability is always resided in the field. and after the audit sort of targeted the joc management team as having not enough construction oversight. but as you can imagine to be able to accomplish the type of volume you're doing here between 25 to $30 million annually, we have to kind of keep some of these things separated. so, although joc has oversight on a lot of those issues, the constructability and cm and inspection process typically resides in the field. so, the audit kind of led us into a restructuring, as it were, of how work is managed at puc under the joc program. some of these things are being put into place and i will admit that some of the recommendations of the auditor made are fine and i think are substantial and are well worth considering and making change for. but i'm just wanting you to recognize the fact how the puc has been doing business. and as far as i'm concerned, working with all the city departmen

misrepresents the soil investigations that have been and will be performed before construction begins, and incorrectly describes the impacts of construction onto nearby properties or the associated effect on the adjacent groundwater table. in conclusion, we're very confident that the work proposed is structurally sound and statements to the contrary are without merit and should not influence the city's or stakeholders' evaluation of our proposed tbm retrieval plan. that concludes my presentation. i'm available to answer any questions you might have. >> thank you. we may have questions later. >> good afternoon, president fong and members of the commission. my name is kevin guy with planning staff. i'm here to speak to the development project that is associated and up for consideration today and the entitlement actions and the specifics on those. so, the request before you today is for conditional use authorization to allow development on the lot greater than 5,000 square feet, to allow a nonresidential use greater than 2000 square feet, to allow the demolition of a former movie theater

we don't have a construction loan we don't get the approval. if we get the approval we have a construction loan which has been totally negotiated, ready to execute. stepping back from this thing a little bit, when we were contacted by nabf well over to the years ago they issued a request for ideas basically about the project. we got extraordinarily involved. in fact, we submit it on our own dime a 700-page proposal to analyze the building. will look at this building from every possible way that you could look at it. one of the big ways that we looked at it was keeping it as an office building. it had been vacant since aaa moved out. our analysis on the office was that basically this would be a 29 dollar a foot analysis, based on talking with many of the office users and with talking with brokers and developers. here is a statement that we did all this. sorry for the % and by the way here is the plant budget which shows the 111 million dollar construction cost. what is happening the last year is that construction costs have gone up 21 million on

we have a deeper shaft currently under construction on 4th street, employing similar techniques, which is basically utilizing deep secant piles that create a water- tight curtain barrier with bracing that has no effect on the adjacent properties. >> one the public commenters suggest there had was only one public community meeting on this topic. i believe i have attended least five or six and i wonder from your perspective if you could talk about sfmta's outreach and the engagement you had with the community since last may. >> i have lost count in the number of evenings that we have spent, but i believe they are in the neighborhood of ten meetings that we have conducted with various constituents in the north beach community. we have had targeted meetings where we have met with the property owners and we have had targeted meetings with the entire community and we have had targeted meetings with the businesses, all centered around getting feedback off and on what the concerns are and how we can mitigate those concerns. >> in today's examiner there was an article regarding a restaurant and

the change of location does not in any way reduce the construction impacts to the neighborhood. it moves them just to the other side of columbus. this pagoda property faces columbus, so the disruption to traffic is inevitable and the dirt and all the other things are still there. it's not a handful of people that are opposed to it as supervisor chiu said. in all the meetings i have been to, a majority have been opposed to. one official at the community meeting was cut short by a fire alarm. it's been very frustrating to the people attending that meeting that we were not allowed to ask questions. the likelihood of a north beach stop is next to nil. the agreement with the owner does not allow for a station at that site, i understand. i would also like to dispute the idea that they keep saying it will be a 50' height limit on the project. it's supposed to be based on the conditions of the original permit, which limited the building to the existing building envelope only part of which was 50' high. i worry about the loss of that particular specific wording in all of these documents

we would expect the creation of an average of about 790 jobs mainly in construction during the construction phase, and that rises to about 1240 jobs a year on average once the expansion is completed. and, of course, those jobs afterwards are permanent jobs in tourism-related industries like lodging and restaurants and retail trade primarily. there will also be fiscal and direct tax benefits to the city from this economic growth that we just looked at. by 2019 when the completion is complete, the expansion is complete, the city should get about .6 million in new business tax, 1.5 million in new sales tax and about 10.9 million in new hotel tax revenue for a total of 13 million in that year. that is notably more than the city's general fund contribution, and that number will increase with inflation. so, what it really means is suggests every year the city will be making indirectly more in taxes than it is contributing its share to the expansion. the only thing i would note in addition and conclusion is that the city's fiscal and economic up side, if you like, is somewhat limited by the fact t

this is new construction. we have no new construction plans. we have no demolition plans that normally accompany this kind of decision. so, i'm sorry, i can't support it. >> commissioner moore. >> commissioner sugaya took the thunder away because he he eloquently basically listed the majority of points which i was planning to address. i want to pick up the last one. i believe that using the sud, dual sud is a blunt tool for justifying [speaker not understood]. i like to remind people there are other construction sites involving transportation infrastructure. not all of them requiring the extraction of a boring machine where properties were side to side for interim use. i like to remind people that the rebuilding of the cable car a few years ago for almost two years required the

we are anticipating about 3 88 in pre-construction demolition and construction and about 112 million in [speaker not understood] architectural engineering construction management [speaker not understood] and other soft costs which accounts for 78, 22% difference between the two. the next slide i'll be presenting the fiscal feasibility on behalf of office of economic and workforce development. adam [speaker not understood] who is out of town today. the fiscal feasibility and admin chapter 29 requires that the board finds the project fiscally feasible and note that determination. and, so, some of the few highlights of the net benefits to san francisco are 7 34 million in direct and indirect impact through fiscal year '26. 5.8 to 7.6 a year in additional general fund tax collections. a net increase of 33,480 jobs through 20 22 over the next eight years. * 3,400 in 7 one-time construction related jobs. the advantages here, it allows us to leverage the private sector to meet the convention demand. it limits general fund in long-term debt capacity to transfer adopt district formation. and

now directors we will conclude with turner construction giving you our later construction update. >> good morning directors, steve with turner construction. even with the holidays it was a very -- [ inaudible ] you have heard some of these statistics already earlier this morning, but the last period, the month of december there were no recordable or lost time incidents on the project. we have -- you saw the 700,000 plus man hours to-date throughout the entire project and taking into account the current work on the transit center, all the work under webcor's contract, 600,000 craft hours through the end of 2012. and that is about 38,000 completed over the last period. the most significant progress has been made in the excavation and there is some statisticks there of where we are. the ultimate news is that we're about 50% complete with the overall excavation of the project. you heard 27 5,000 cubic yards have been removed. so we're right on track. there some of the other highlights, the water, the auxiliary water system work continues on mission street, working on 2nd back towards the

, the increase in construction costs. there will be a need for increases also what we call the soft costs, delivery costs for the additional 25 months. and there are also significant risks remaining on that project. so, we are at the same time negotiating a final change order for the discovery of those features with the contractors. all that to say that we will need to go back to our commission and to this committee in about april or may. we will come back and seek from you an approval for additional revisions to the program costs. now, any increases in the program on that project in the program, we will want to compensate by with savings. so, at the same time we are undertaking a very comprehensive assessment of all remaining projects with the goal of identifying savings that will be able to compensate for these known increases that are to come. listed here are the two actions that we are -- >> excuse me, ms. la bonte, supervisor avalos. >> with the savings we'll expect there will be a need to come back or to find additi