we still need fta certification that we have our federal environmental clearance. we've been working with them all through this process. they've been at the table from the start. so, we expect to be able to secure that. and then with the final action of the board of supervisors once that special use district goes into law, we'll be able to move forward with the demolition of the building starting within the next couple of months so that we can keep our original timeline, which you'll recall that was to have the shaft built in time for the tunnel boring machines which are set to arrive about 12 to 15 months from now in north beach. so, that i think summarizes what we have before you. i just want to thank the many staff and the mayor and the board president for their work to get this done, and happy to take questions either now or after public comment. >> we can certainly ask members of the public to come forward at this point. do we have some names? >> yes, for item 11 greg gi ber, howard wong [speaker not understood]. those are the first three. >> good afternoon, s

we will be working with the fta to secure their approval for consideration of use of contingency. another public speaker indicated to the extent we have contingency in the project to refund the city for that amount. you know, we believe certainly the $6 million of our costs extending the tunnel is fully part of the project and we hope would be eligible for that reimbursement, but that's something that even if the fta were to approve it in concept at this point, it really wouldn't be until they had a sense of where we are relative to contingency. they wouldn't want us to draw down contingent is towards that. but towards the end of the project we may. we hope in the end to get that money refunded, but that's currently the plan for our funding this. >> commissioners, any other questions? director bridges? >> my question was along the same lines. i understood from the meeting director reiskin had planned he would go back to the fta for reimbursement on this wrote et and request it at the end. >> that's correct. we'll be working with them before the end to try to get these accepted as

please welcome fta administrator peter rogof. [applause] >> well thank you mayor lee and let me just say as the federal transit administrator it's great to be in a federal transit city. as many people know a rail connection was promised to the people of union square and chinatown going on two decades. they made that promise because this quarter is the most densely populated quarter in the entire western united states that doesn't have an adequate rail connection and that promise was made because we have the opportunity here to cut the commute for tens of thousands of people everyday in half by this investment. the vast majority of the people don't own a car. they depend on transit. well today through president obama's leadership, secretary lahood leadership, the vision of the leaders on the stage we are here to commit $942 million to fulfill that promise. [applause] >> with the signing of this grant agreement we are taking $942 million paid by california taxpayers and to create jobs now when we need them. we're also using those d

and i know that fta is really pushing this element. but i do believe it's making dbe participation come down, because the dbe certification is so much more cumbersome. that is just an anecdotal observation on my part. >> thank you. that seems like an odd requirement from the federal government that you can't take the very relevant past practice and apply it to the develop of your program, but so be it. just two questions on the earlier part of the presentation. one, i appreciate on the cost slide you included a note saying that in addition, to the 20 of reserve there is $75 million of contingency. i guess a couple of questions. in total, there is less than $100 million of contingency plus reserve for still $1.6 billion program. i'm wondering if like the reserve draw-down curve you have, is there a contingency draw-down curve we're working from? and what is the basis for us knowing if we have enough contingency and reserve >> well, as you know, fta and fra have certain requirements for how much contingency and/or reserve you have to hav

2012 we received a little over $77 million in grant allocations from ac transit, mtc, and, as well as fta. as the executive director mentioned we finalized the purchase and sale agreement for the tower site, which generates money for construction, of course. the details are included in the draft rtp and the transit center district plan was enacted, which is going to be a source of melaruse funding and developer fees for the project. we also had our real estate consultant and the concord group conduct a study to demonstrate the benefits to adjacent propertis from the project. and the study found that the project will add about $3. 7 billion in value to the real estate development within a three quarter mile radius around the transit center. this slideshows just the detail of the new source funding plan that is currently in the draft rtp and that would be approved later on this year in 2013. and in 2013, we currently have pending grant applications totaling $60 million. the security ibonds are state security funds that ac transit is allocating to us that we're using for security aspects of

carried escalation rates of 3 and a half percent per annum and construction costs and we had done an fta process to establish the levels of contingentcy in the budget at that time and looking at commencing demolition in august of 2009 with the phase one construction to be completed in just under 5 years in january of 2014. as we brought the architect on board and we moved into the design one of our first activities was to go through what we called a concept validation phase where we would contrast the hok scheme with the work being developed by the architect pelly clark pelly to identify any discreptcies in scope and cost and to reconcile those before we moved into the scheme matic design. >> and so as we moved into the budget and to revise it there were a number of miles stones that we went through. may of 2008, we awarded the contract pelly clark pelly to be the architect and set forth the design schedule at that point which included the concept validation phase that i discussed which was going to be our first four months of work with the architects. moving into the schemeatic design a

reviewer, but what we can do is we can be presented this to our funding partners and to the fra and the fta and happy to bring you any comments that they may have. we have many third party reviewers looking at this at the request of the fire department for example. as the director mentioned we brought this number down and just to give you a perspective. we were upwards in security and other costs and we are down to 164.5. and the rva item is down from 64 million to 56 million that is what the recommendation of going to a metal skin. we went from the gt ceiling making it metal ceiling making it safer and we recommend going to a glass skin to a metal skin which will be lovely as well and we will show you the rendering. we have just about cut as much as we could possibly cut but do think that it is important to present the information that kim requested and we will do that at the next meeting. we are also, i want to director director metcalf's comment. we are not in terms of phase two, it is only about ten million dollars or so, that we are looking at accelerating in it and maybe a ten million

the fta reporting it will record the biggest loss in spanish history next week. the cac 40 adding about 1.3%. the ibex up better than 1%. the xetra dax adding 0.7%. this follows the ifo survey just out at the top of the hour. ftse 100 adding about 0.8% for its part. we'll see if this positive move carries over to u.s. markets when they open in just a few hours time. as for the bond rates, it's been surprisingly quiet were as well. same happening with spain to 5.15%. so some movement out of gilt. that yield up to 2.12. it's moving out of bunds, as well, although we're still below 176%. no major change from trade levels that we've seen for the last couple of weeks. finally, forex, let's take a look at the euro. this has been important setting the tone for the trading session here and again in the u.s. the last couple of days today. it's adding 0.3%. 1.3233. we saw it jump up nearly 0.4% after that ifo data. the dollar/yen, the yen is weakening again today within adding about 0.4%. so we'll see what impact that has had on trade across asia. let's get straight to li

as you point out, if you are a non-fta country, essentially before they send fashion x releases can beapproved, there has to be a best interest finding. i think it's fair to do a full on review of what we have established. having said that, i have been to the one that believes it is in the nations best interest to encourage greater export, most specifically our lng. i'm very cognizant the world looking to try to keep prices down and that's going to make key components is the affordability. so you want to make sure as a mystery skater expert feature nonimpact game the affordability piece. i think it is fair that they be considered review of this and i would expect nothing should be considered review. i will suggest this match, that as we are looking to those friends and allies who do not have free trade agreement, specifically japan as they have experienced a national energy crisis following the tsunami and earthquake in march of 2011 the leash of the critically to how we can help our friends out the export licenses. [inaudible] i was wondering, is there room for compromise -- [inaudibl

>> i know fta is very concerned with the damage to the tunnels working with the operators. >> we have 15 minutes left. kathy. >> a quick question and follow-up. in the standard e made it clear you are enjoying your job but as the white house spin in contact with you read all for a job? >> there is a lot of speculation and that is what you do, but my job is to do with the facts and with the ntsb that is what we focus on. the fact is this is my job, the chairman of the ntsb and i'm happy to talk to about any activities we are working on. >> but has the white house been in contact with you? >> i am very happy -- happy to talk to about any ntsb activities and stay focused on the work i am doing now. >> what is the most concerning -- concerning thing you have seen with the investigation with the 787 dreamliner. >> two weeks ago tomorrow we did issue findings and we identified short circuits in the cells of the battery and a thermal run away, multiple cells where resaw uncontrolled chemical chain reaction. those features are not what we would have expected to see in a brand new battery, in

i know the fta has been working to address those, but this point, the substitute is not an investigation, so i don't have an opposition and i refer you to the inspection being done by the regulator and the operators. >> are you concerned about vehicles make an impact on the method this saltwater damage? >> personal vehicles? >> yeah, we've certainly seen in the past some consumer issues with respect to natural disasters and i will be important to deal with. it's not the ntsb's role, but we've are up in new jersey after hurricane sandy this fall. there is a train derailment in paulsboro but 13 right at the end of november, beginning december. unwearied areas for something like that has happened, part of our investigator committees determine how high the water level had been at that rage. there was a derailment on the bridge. were they affected by the surge, so we do look at those issues that we have an investigation. you're just asking things that are investigating activities tend to be react to after an accident is happening. we may not get involved in any of the questions are asking abo

you're interested in exporting natural gas and exporting to non fta countries would help stabilize internationally traded -- it will health has added transportation and also the refining shipment facilities here. partnerships between us diversify the sources of supply. biofuels and energy-efficient these are areas that are already identified. grid management, heating and technology with the capacity to bring renewable energy would be mutually beneficial areas of the exchange. large projects are being reexamined by cabinet committee. among the first that the committee has taken up, relating energy to oil and gas, the focus is being made on oil and gas exploration blocks. u.s. companies have recognized strengths and we hope that as we move ahead, we can draw new players. i believe the exciting new finds of the coast of east africa will lead to greater interest in other areas of the indian ocean. an extraordinary transformation could also bring larger quantities to a global market facing supply constraints. i think that there is much we can talk about. education is also a strategic area for partnersh

i encourage a review of the export policy, if you are a non- fta country, there has to be a best interestng. it is there to do a full-on review of what is established. i believe it is in the nation's best interest to encourage greater exports, most specifically, of the lng. i am cognizant that we are trying to keep prices down. that is one of my key components, affordability. as we move toward greater exports, we are not impacting the affordability peace. i think it is fair that there be a considered review of this. i would expect nothing short of a considered review. but i will suggest this much. as we are looking to those friends and allies that do not have free trade agreements with us, specifically japan, as they have experienced a national energy crisis following the tsunami an earthquake in march of 2011, we should look radically of how we can help our friends through export licenses. >> i was wondering, within your division you laid out, is there room for compromise if drilling isn't expanded off the coast? would you be willing to support taking revenues from -- [inaudible] >> is t

i encourage a review of the export policy, if you are a non- fta country, there has to be a best interestwhat is established. i believe it is in the nation's best interest to encourage greater exports, most specifically, of the lng. i am cognizant that we are trying to keep prices down. that is one of my key components, affordability. as we move toward greater exports, we are not impacting the affordability peace. i think it is fair that there be a considered review of this. i would expect nothing short of a considered review. but i will suggest this much. as we are looking to those friends and allies that do not have free trade agreements with us, specifically japan, as they have experienced a national energy crisis following the tsunami an earthquake in march of 2011, we should look radically of how we can help our friends through export licenses. >> i was wondering, within your division you laid out, is there room for compromise if drilling isn't expanded off the coast? would you be willing to support taking revenues from -- [inaudible] >> is there room for compromise? i stand before y

you're interested in exporting natural gas and intention to export a non-fta countries, even if justgreed upon, would help stabilize internationally traded lng prices which are at historic highs. indian investment i in the oil d gas sector will not only help add the image transportation linkages, but also to refining and shipping facilities here. long-term partnerships between us in energy will also help us in india diversify our sources of supply much more globally. biofuels from nonfood crops and energy efficiency are two areas which are already identified in the bilateral dialogue. good management, self-healing and smart grid technologies, and the capacity to bring renewable energy onto grids could be mutually beneficial areas of exchange. our regulations and processes involving large projects are being we examined by a cabinet committee on investment. among the first which the cabinet committee has taken up are those relating to energy, specifically to oil and gas. progress is being made on simplifying the approval process for oil and gas exploration blocks. u.s. companies have w