The record that vice chair gee will not be present due to a scheduling conflict. [ roll call. ] clerk mr. Chairman, you do not yet have conform. Well go ahead and call the action items. Item 3 is communications. No longer have any. Seeing none, well go ahead and call your next item. Item 4 is board of directors new and old business. None. Then move into your executive directors report. Directors, happy new year. 2018 will be a very exciting year for the tbpa. My report today will include two presentations. First intention will be an annual year in review presentation that we present to you at the beginning of every year. It includes our accomplishments in 2017 and more importantly our goals in 2018. This presentation will also include the quarterly agreement reports, which you have a copy with you. Second item in my report will be the brief presentation on the Colliers International efforts for the leasing of the Transit Center. Lets go ahead with your report. About an hour. Your report is about an hour . Looks like were going to be shuffling the agenda around if thats okay with the board members. Okay. Well note that director kim has arrived, and with that, were going to go ahead were going to be losing quorum. So were going to be taking our regular calendar first so were going to be taking our regular calendar items out of order. Well come back to items 4 through 7 prior to going into closed session. Okay. With that, moving to your regular calendar, its also been suggested and concurred with the chair that we all items 8 and 9 together since they are related. It would make a lot more sense to present them that way. If there are no objections, questions, well go ahead ill call the item, so item 8 is authorizing the director to execute a universal agreement for unarmed Security Guard for the Transit Services with an option to extend the term by up to two oneyear extensions. And director, our chief Security Officer will present both items. Thank you. Good morning chair nuru and board members. The Transit Center security plan. Following an extensive review, the initial staffing plan was developed in consultation with local Law Enforcement and Security Experts as part of tgpas safety and security concept of operations. Over a period of several months, staff reviewed the proposed staffing with San Francisco sheriffs department, conducted a comparative analysis with major metro transit agencies, including Metro Atlanta transit authority, washington metro transit authority, and denver union station. Nearly 2017, the staff was Peer Reviewed by the National Association of transportation, which assembled a panel of Public Transportation leaders. The five peer reviewers spent three days onsite reviewing the documentation and familiarizing themselves with the facility. The panel concluded the plan represented the plan was adequate. They also recommended that we periodically reassess the periodic staffing plan to assure the Staffing Levels remain adequate. For scope of Services Following a multistep procurement process, tgp staff h doing business as allied universal Security Services. This contract will provide an experienced Security Guard presence for phase one of the Transbay Program including the sales force Transit Center, the bus ramp and the bus storage facility. They will fill security posts, roeving security and ambassador positions. Security staff will participate in training and exercise programs simulating real world daytoday operations and also train to respond in exceptional circumstances such as natural disasters or human caused events. On opening day, the Transit Center allied will provide unarmed Security Guard staff including stationary patrols. Theyll also have the supervisory management staff in place. In addition, the Security Operations staff will monitor and manage the Security Centers enacted at the hub for security transactions. Ill be an active part of the Security Team, which is composed of staff already mentioned. The tjp security staff will work cooperatively with the tjp asset manager staff and those managing the Transit Center, retail tenants, the department of emergency management, personnel from sfpd southern station and other federal state and local first responders. Tjpa staff completed a multistep competitive procurement process to select a qualified Security Guard contractor. On july 5, 2017 we advertised a request for qualifications for unarmed Security Guard services. The rfq was posted on the tgpa website and firms listed as safety act certified or designated on the department of Homeland Security website. Six firms submitted applications, and three firms met all of the qualification criteria and were invited to submit proposals. On sept 5, staff sent the request for proposals to the three firms. All three submitted proposals on october 3rd. The prices ranges from 4 million to 5. 1 million. Three firms were asked to provide a first year cost proposal based on the first year staffing plan in the rfp. It is brokendown into labor costs and other direct costs such as training, uniforms and equipment. Following the interviews allied received the highest score from the Selection Panel and also has the lowest price panel. Their price was based on a 19. 50 wage rate, a 13. 2 overhead for payroll cost, and a 3 profit margin, and the rates for the g4s in securitas is listed on this slide. So in the fy 1718 budget, we have just over 1 million, and this assumes those operations start on april 1st. Any delays to the start of bus operations will significantly reduce this amount in fiscal year 1718. In fiscal year 1819, the budget is 5. 2 million. Allieds contracted amount in fy 19, which was the first steady state period that we have to look at for 12 months is higher than their first year price proposal which was the 4. 4 million, because Ambassador Services were added during negotiations. The fy 2021 budget is 4. 4 million. The budget includes a not to exceed amount of 350,000 for Additional Services over the term of the agreement. Staff anticipates that 1u67 Additional Services will be required for special events and in the case of emergency. Tjpa anticipates recovering such additional costs from the event sponsor. The total not to exceed amount for the 3. 5 year term is 18 million. The budget specifies not to exceed amounts for the two oneyear option periods should tjpa elect to exercise that option. This agreement and the mou for sfpd to provide Law Enforcement services willen assure that tjpa has a security staff in place to manage security at the Transit Center. The staffs recommendations, to authorize the executor director to execute a professional Services Agreement with allied universal Security Services for a 3. 5 year term in an amount not to exceed 18,191,100, with an option to extend the term up to two oneyear extensions, and the staff recommends the board to authorize an mou with sftd at the new Transit Center and related facilities under the tjpas control for a 2. 3 million annual rate, escalated by 3 each year. Im happy to answer any questions. Yes. First of all, its great to see these items. Its obviously one of the most important aspects of the operation, so commend the staff for getting us to this point. Just a few questions. Kind of overall, we have a blended approach to security with San FranciscoPolice Department and private, which i think is a good approach. Its something obviously i think the board had endorsed last year. How will the joint training happen . How will they communicate on a daytoday basis . Can you give us a sense on how these two items kind of flow together in operations. So ill start with the Communications Part because the soc is really going to be the Communications Hub for both security and then anything thats going on in the center that needs to be broadcast to a large number of staff through various different organizations. Within that, sfpd, we will have communications directly with sfpd through the soc. Well have communications with allied, and allied has the two layers, so they have the Security Guards and the ambassadors under the same management structures, so that simplifies the control part of the unarmed security, and then allied will be monitoring the communications. And then, allied has guard tracking software, and that will allow the soc to be able to see where all the Security Guards and ambassadors are at any one time so theyll have an idea of where they need to send people if something is going on, and theyll also be able to let sfpd, their staff, if theyre needed, they can be quickly pulled in, instead of coming down from three blocks away. So will there be any kind of meeting surveillance, so that theyre aware of issues that theyre happening, people that theyre seeing, problems that are emerges. There are. Well have daily briefings, so were looking at midday when its Something Like that period between commute hours, and in that we will discuss operations and security so well have everybody on the same page. Theyll know whether theres events going on, sharing information with the neighboring businesses, so well know whats going on with their security and their operations. Because with sales force, we share a common area with mission square. And so we want to have Situational Awareness in the situation, both horizontallyvertically. Well share that information with our neighbors so they know whats going on. And then, sfpd, whatever information they want outside of the Law Enforcement unit at the Transit Center, then they will be able to get that information as well. And theres at least some of the Police Department staffing will be dedicated or consistent; it will be the same people . We still havent gotten into the details on that but were expecting that we will see a lot of different people. And frankly, we want to be the employer of choice for both sfpd and allied, so we want people to come to work at the Transit Center and request those jobs. I think the continuity in the relationships between the Police Department and the contractor will help a lot, whether its a dedicated sergeant i dont know what rank the senior pd person will be, but at least thats consistent. I know they change out every few years, but at least consistent over time and not a different person every day. And were expecting definitely on the lieutenant level that well be dealing with one person all the time and were already in communications with how were going to manage security and getting their input to various different rules and regulations, code of conduct. And will there be any joint training or training by the sfpd Security Teams in terms of how to deal with certain situations and when to engage sfpd . There will be. We havent gotten into the details on that. Weve just identified that thats something wed like to do and theyre willing to do. Were already going to do the training, so the day we turn on the lights, it will be another day at the Transit Center. And then with the contract itself, it seems weve been lucky in a lot of these where the highest rank is also the best the best cost, so our value of the one were selecting is significantly i just wanted to note they were the highest ranked, but the separate, by far, it seems they stood out by far. Its of benefit to the public to know that great news. And just my last question, the 350,000 for things that we havent foreseen and possibly which would just be support for thirdparty events. Its great to have in there. It seems over the term of this contract to be a pretty small number and if there are a lot of events where the event users need or we require them to have Security Services, it could even though its not our cost, it could chew up that allowance in the contract pretty quickly. I wondered how you got there, and if you all could figure outweighs which somebody having an event could rent directly with the Security Firm as opposed to our contractual mechanism and then up our cost. I think if it becomes a big enough event we would be looking for ways to do that. And i have done that before where we had the sponsor go directly to the same contractor. And i guess i hadnt thought about this before, but same with police. Rather than eating into our agreement with the Police Department, they could contract directly for ten officers. I just want you to think about that. Also gets you out of the middle of all of the administration of filling out an invoice. And in regards to we did some research. We think that most of the special events that would require additional security would be roof top events on the park, and so i got input from brb, how often, what size of events, what sort of work that they need. And then based on that, we just multiplied it by the hourly wage rate or the hourly rate we would be charged to get that number. And then if its Something Like a natural disaster, completely unforeseen. Thats something we would be coming back to the board for, and we would also be expecting that we would be reimbursed by fema for those costs eventually. Okay. Thank you. Yes. Just a quick question related to the sfpd mou, and the personnel available. The memo talks about ten shifts within the confines of the existing policing Community Efforts in the neighborhood. What does that translate into in terms of actual sfpd personnel committed to the Transit Center . Because the actual security plan is classified, i cant talk about it in a public venue, but were looking at getting the coverage that we need for the times that we have different activities going on in tin the transit park, becaue it will vary during the commuter periods. Once we get the mou in place, well be sitting down with sfpd and really getting into detail on who, what, where, when, how. Thank you. I i am unfamiliar with this ambassador security thing, and i dont know that ive been in a Transit Center that had ambassadors. Either theyre well hidden or this is something thats kind of new. What wheres is there anybody else, a major Transit Center thats that this is modelled on . Its not. Its actually modelled on the Community Benefit districts, and looking at what our unique issues are here in this city and what our neighbors concerns are, and so quality of life is huge. Its probably the densest part of the city or it will be when its completely built out. So we looked at fishermans whafsh, we looked at yerba buena gardens. The ambassadors are going to be a friendly, nonthreatening presence. Theyll probably be in polo shirts and khakis. We want them to create a relationship with the people that are coming into the Transit Center on a regular basis. If they need help from City Services or if they even just need help getting to their bus or wheres an event going on, so theyre going to be that friendly first face of the Transit Center that everybody will see. Theyll be very apparent by their uniform that they are, with the Transit Center in that theyre ambassadors. Our security people wont be armed . No. Law enforcement is armed. Security is the contract security. So im wondering why everybody cant look friendly . Its more the uniform. Yeah, thats what im getting at. And theyll be getting additional training as well on how to deal with people that may be impaired. I mean, if i think of the models that cities are now going through and have been going through for the last couple of decades, the ambassadors on your street are the cops. And the whole idea of understanding that the police force is something that the neighborhood has to come to integrate, accept, everything. And when i see this, where it looks like the ambassadors going to be a whole different thing from security, i wonder if were not taking a step backward in terms of what most cities have figured out. And there, youve got armed people that are trying to be your neighborhood ambassadors, right . So if ours if our security people arent armed to begin with, why cant we why cant they all integrate and be a separate why does it have to be two separate workforces . cause those ambassadors dont know how to be security and security dont know how to be ambassadors . Why not have a single thing with a single uniform and get everybody crosstrained on all of that . cause this looks like were headed off this way, which is what cities are trying to get away from. Were really looking at trying to have as many tools in our toolkit as possible. So we expect that the ambassadors are going to be very intensively involved with the population that comes into the Transit Center that needs that assistance and getting to know them better while other Security Guards that are not trained ambassadors are going to be doing the roving and the stationary security patrols. Theyre going to be checking doors, monitoring cameras, out on the bus ramp, that sort of thing. So by having this specialty, we think that were really going to be able to get to know our Homeless Population more, those that are in need of assistance, and get to know them. Get to know their history, get to know their situation. Get to build some relationship and accountablity with them so that theyre more willing to accept the services and the assistance that the city has. cause the city is so resource rich and its just how do we get people to accept those services. It seems to me youre selling people short a little bit, and the cross training would be beneficial to everybody because a security person is going to run into a lot of situation where ambassador is called for, and am bar do remembers are going to run into the same situations where security is called for and theyre all on the same pay grade. Interesting, because ambassadors will have their guard card, and then, in addition theyll have the training to deal with people that need that sort of assistance because they have the time. Because theyre not on a round where in a certain period of time hit a certain number of doors and make sure everything is locked down or open. Theyll be able to focus on the human side in the Transit Center. Its just another tool in the toolkit. I would argue for variety. Look for that opportunity if it comes up in the next year or so, and start to work with people and figure out if youve got something. Because if someone has a complex job, and it changes a little bit as the week goes on or as the month goes on, theyre happier employees, so thats all im saying. Absolutely. Thank you. Well make sure that happens. Any other questions . Director harpers question triggered one for me. How will we figure out the three tiers of Police Services, Ambassador Services how will we know its working, how were doing . Well have a i call it a guard tracking system, but its more than that. Theyll have incident reports on that, theyll have a daily activity report, and thats where every guard, every ambassador will write up what theyre doing, and so well be able to start tracking whats going on with them, and especially to link with other city departments. So with sfhot, sfpd to identify people that really need help and are resistant to accepting it, then were able to get more about them and get them to accept the services, but we have to know who they are and pass that down from shift to shift, so well be doing that through the and how about the Police Services that were purchasing . They have their own separate system of tracking and weve already talked about how we will be briefing it could be from daily to weekly, from criminal statistics to human statistics, everything from hot spots to areas that we need to either police are concentrating on or that we as a Security Team need to put more attention on, so its going to be a moving target, and we recognize that and so were trying to get in front of it as much as possible with the contract and the mou how we have it written. And then, well just shift as necessary as things change. Okay. As were shifting into being an operating entity, you probably should start thinking about what the skey Performance Indicators are so theres a role up of what those metrics are that you just talked about it so we could report it to the public when were up and running. There are other nonmetrics that you would be thinking about, as well. Thank you. Id be happy to move for approval. Second. We have a move and second. We have one member of the public that wishes to comment on item number 9. Mr. Patrick. Good morning, ladies and gentlemen. Jim patrick, patrick and company. I want to direct your attention to the police mou as written. Youre right. It calls for ten preliminary to policemen to be there. What happens when the police doesnt have the people to supply that . It seems to me the budget keeps rolling. Z its a fee for a number of people, number of shifts. We would have to make adjustments accordingly, so if were not paying them perhour. I think without having to go to breach, i think we mr. Patricks point is well taken. We want to pay for what we get, and for whatever reason, theyre unable on a day or a month or a quarter unable to deliver 100 of the hours, we should be paying i dont think we should i dont think we should go to a breach of contract. We should have a procedure by where theyre providing us a verified number of hours. Time card. And ranks of people providing those and we should be paying based on that, i would guess. I think the way its been setup is they use a minimum for sfpd but then as part of the blended program, theyve actually extended Police Protection with the various district stations to support the center. Is that right . Yeah. Our expectation is that sfpd will provide those ten officers every day regardless of how whether its on overtime or theyre regular straight time, but they have committed to providing those officers. And i recognize, i think we all recognize that in extraordinary circumstances, they could pull an officer somewhere else. Emergencies happen. Big emergencies happen once in a while, but were weve worked very hard to get this agreement so that they are committing to providing that, and they consider the Transit Center to be a very high priority, and so they are in theyre motivated to be there. Just to add to that that the budget is certainly based on an expectation of a certain level of service and to the extent that service isnt provided, tjpa wont be compensated for services it doesnt receive, the process calls for invoicing as well as auditing, so there is a process to make sure that its getting the service it needs and has contracted for. Thank you. Call the roll. Clerk all right. I heard a first and a second. [ roll call. ] clerk thats five ayes, and items 8 and 9 are approved. Go ahead and call the next item . Item 10 this item will be presented by sarah dibord chief financial officer. Good afternoon, officers. Sarah dibord. For the benefit of our new director, this is a new director for us. Our usual policy calls for us to come to you with the fiscal year budget, a narrow in april, a final in may, and budget adoption in june. As were putting in agreements of leases, they call for the formation of a primary Tenants Committee and obligate us to provide us to the primary Tenants Committee in the fall and for the board to approve those projections by january of this year. So thats why this item is before you. Again its not a final fiscal year budget. But at this time, based on what we know, and again, very preliminary because lincoln is still in the process of bringing on Service Contractors for the Transit Center, so these are estimates of expenses, estimates of revenues. The total is just over 54 million for fiscal year 19. We show three scenarios. The there are as has been presented to you before, there are some base building and tenant requirements that are needed to get the center ready for retail operations, and there are some different funding scenarios for funding those improvements. At this time, we have approval from the Cost Review Committee that was formed through the interim city financing to spend at least up to 25 million on those improvements. The scenarios that are shown before you, scenario one shows what would what the situation would be if the city financing funded all of the improvements. Scenario two shows the number if we used half of the early naming right payment for the towards the improvement. And then, scenario three if all of the early naming rights came in as used. So well continue those discussions with the trc. Our next meeting with them is in february. I will keep you posted on that, and the final agreement would be reflected in the budget that comes to you in may and june of this year. With that, im happy to answer any questions about the numbers and the development of the numbers. Yes, mr. Harper . Yes. I have one very big difference with this, and ive talked to mark about this already. The first level, the first round of tenant improvements should not even be an operating expense. That is part of finishing the building and doing the building, and we should make that distinction because thats the way its made in the private sector. When you get four or five people together as an llp doing a commercial building, theyre expected to give all of the money necessary to get the building up and running, and that includes tenant improvement allowance. Successive tenant improvements are then considered operating expenses. Its considered if youve been operating, you have built up a reserve and youve done all those things so when tenants change, then, operations take over. Thats the way it works most of the time, and thats, you know, what investors want to see is an end to their duties, their contractual duties to contribute money until the building is finished. So i think this is just this doesnt comport with that. It doesnt make sense. I mean, the building has to be finished, and then we start operations. I mean, weve been talking about that, and finish means getting the build out in terms of retail. And the more we can devote to getting, you know, tenant good tenants in there, the more tenant improvement allowances we can do, the Better Tenants were going to get. Thats one of the rules of the whole thing, and then, we can Start Building up through better rents the reserves we need for successive tenants if theyre necessary. And of course, theres going to be turnover as it comes in. So i think applying tenant improvements to an operating expense budget at the first round is inappropriate. And then, the second thing that ive got a problem with here is that i think, at least speaking for ac transit, that the operators have an expectation that as that all the revenues operating revenues will be devoted to cover operating expenses, and only the shortfall will be actual. And so theres no reason why the naming rights shouldnt be applied to revenues as much as necessary so that theres no shortfall that the operators have to cover. There will come a time, probably where the operators are going to have to come in and do that, but i think the expectation we have is reasonable. You cant all of a sudden take your naming rights is what youre doing here and essentially creating a great operating reserve right off the bat. That can be built up over time, but in the meantime when we operators are trying to get as much operations off the ground as possible right away, wed appreciate having the and require having as many of the revenues as possible devoted to covering the actual expenses so that we dont have to contribute. So i would say those were the two corrections i would make or two changes i would make to that, is talking about tenant improvements. And San Franciscos already said 25 million, which was more than this, any way, theyre going to cover as part of their building completion, that we go along with them on that. Its the way it should be done, and not even have that as an operating expense for this year. And then have and apply the naming rights over to covering at revenue as much as necessary so that the operators dont, in the first year at least have to come up with a shortfall when a shortfall doesnt exist. Ill take your second point first. Actually, a shortfall would exist in the first year. The scenario one assumes, again, using city financing to cover all of the tenant improvements, and ill get to that in a moment. But it also assumes using the full balance of the operating and maintenance reserve, and as is pointed out in the staff report, thats not necessarily the best or most prudent financial practice, so thats not necessarily a recommendation we would make in the drost budget that comes before you in may, but you can see in scenario one, use of operating and maintenance reserve is nearly 17 million. That assuming you putting the naming rights payment into the operating reserve and using the full operating reserve to offset expenses in the first year and that minimizes transit operator contributions if all of those expense numbers came to fruition. On the first point, were not the private sector, nor do we have investors. We have discussed with the city. It can be done both ways. I have no preference. We can if its the boards preference, we can put the tenant improvements we can put the initial tenant improvements in the capital budgets, but the full budget which may include the naming rights, those Funding Sources would also move to the capital budget, so it would be a zero sum gain in terms of operating expenses and operator contributions. Well, ic concede from the citys standpoint, but the naming rights have always been presented for the last three, four years in all weve been talking about when were talking about operations. Naming rights have always been fully allocated to fully allocated to cover operating expenses, no questions asked. So if in fact the citys coming in and as it is and covering tenant improvements for at least the first round, then i think all the naming right should be devoted. Now you say they are in the first scenario. Ill remind you of the item that i presented i dont recall if it was in november or december of last year. Last fall, we presented on the tenant improvements, base building improvemented. The total is estimated to be about 36 million. At this point, we only have commitment from the city to fund up to 25 million. Right. So theres another 11 million as was presented in the item, the naming source payment is the best source for that gap if the city declines to allow the use of city financing. Tjpa would have to come up with the money for that gap. Or as you stated, if we didnt offer competitive tenant improvement allowances, the rents would not be would not rise to the level that weve estimated in few tour years. But the first year is being completely covered and then some with the 25 that theyve agreed to, so successive years, theyll have to decide apparently in the next whether theyll go the full 35 or not, thats going to be in february . Well be discussing that with them in february. So im just saying that its its going to be rough on us, and its okay. But last meeting, we talked about having a zero for the first year, 1819, and now were up to half a million for ac transit and that sort of thing, for essentially that half a year of operations. Actually, it should be a full year here, but it starts at june. But thats going to be our expectation, that naming rights fully applied, and so im going to be looking for that to make sure that they dont go to tenant improvements in the first round because it doesnt make sense. Thats part of the build out. And San Franciscos been recognizing it. I greatly appreciate it for doing that, and thats what we should be following in these things. So as this comes, id like to see that addressed. Yes, director. Just if i could clarify. I dont disagree on principle, but when this board approved the deal for the city financing when we went to the city, we did not have these costs included. So whether the private sector does it or not or whether it was the right thing to do or not, the deal that we made with the mtc was to complete the building. So now subsequently, i think mark has been successful in convincing the city through this Cost Committee that the base Building Improvements that are needed to in order for a tenant to come in are legitimately part of the construction, theyve greed to come in now and allowed tjpa to use city financing for that. But theres still a delta. Thats only 25 of the additional 36. The additional 11 which is really the tenants part of the tenant improvements. I think it were all agreeing it would be ideal if the tjpa would do, mark still has to convince them through the city, its based on the fees that the city would receive from buildings, some of which havent started construction yet. So its extending the city, so i understand their caution there. If they dont agree i think one question is, would any kind of support from maybe the transit operators, in terms of letters to this committee be helpful, because ultimately, if they dont provide it, then, the naming rights is the only other source of funds. So we can all say wed rather those go to operating budget, but thats the only other source of funds. And then, the transit agencies are going to be left making up the gap, and thats what the scenarios reflect, so i dont support options two or three, but its not our unilateral decision at this board. Were kind of asking the city to give us more than we originally told them we needed in terms of scope for them to cover what theyre financing. So i fully support and im hopeful that you all can be successful in working with the city so that were in the option one scenario, and if theres a way that we can be helpful in terms of just making it really clear in terms of there will be an adverse impact, in terms of ac transit, thats just a reality. We can direct staff to do this or that, but in reality, were kind of relying on the folks that were asking for money from. What im saying is it would be great if staff had these numbers out. All of these numbers should have been presented to everybody much earlier. I think theyve been presented all along throughout 2017 at least. Within, tenant improvements have only been talked about for the last six or seven months, without any real number as to what it is. But everybody should have been able to understand that a number was going to be required to finish out the first floor and the second floor. I mean, were not going to leave it so that, you know and the a numbers going to be required to put in retail, and these things should be put in ahead of time so that we can come to adjust it. Because what it does, it get expectations otherwise when those numbers are missing. Dr. Harper, if i could clarify a couple of things. First, were going to be advocating to use all of the tenant improvements, money from the city financing. The Cost Review Committee was very flexible last time we met, and they told us we can take 25 million for both Building Improvements and tenant, so she showed quite a bit of flexiblity. They did not rule out giving us the additional 10 or 11 million. They have to think about it. In february , were going to be making the pitch for more money, and im optimistic about that, but when we presented the Asset Managements agreement to the board and the board approved it in march, in it, we had identified 27 or 28 million as needed. We had indicated we would seek reserves as funded by city financing to fund that. After we talked to crc, Cost Review Committee, they wanted to think about it. So we did present a number. Initially before that, our thought process was that we were going to [ inaudible ] thats why were at where were at. As we received information, we provided it to the board. Granted, its continues to be refined. And you know, youve got my commitment that were going to continue to look for operational funding for our operations, and youll see in the in our year in review that we were able to get approximately 11 million this year just for operations. 5 million from mtc and another million from a human rights agreement. So we are going to be getting a significant amount, but i know it does not solve the operators issues for the first three years. I recognize that. There will come a time when all the retail and operators are going to benefit greatly from ac transit. Theres no question, but that wont be for a few years. For the first two, the great part of the tenants that are in there are going to go to the community, and i know that, but its difficult to sell ac transit on the notion that for these first couple of years when essentially as a practical matter you can look at it and say were not getting any benefit from that. Its just a little harder sale. And im trying to get ac transit to realize youre going to benefit and youre going to get the money, but id like to get a running start at that. I would look at it director harper, this is a running investment thats going to save money in the future. If we have a robust retail and market opportunities, we should not be asking the operators for money based on the numbers based on the numbers, the projections that we have right now and thesubsidies and numbers that weve projected, we should not be asking you for subsidies. Would it be helpful to have a letter, or us to appear at the Committee Meeting to help you make your case, im sure both agencies would be happy to do so. Its a public meeting, and ac was at the meeting last time, so well keep you informed. I do think it would be helpful to have letters of support from the operators if you cant find time in your schedule to come to the meeting. I want to thank you, director reiskin for your comments. I want to highlight a point mark made. These numbers do not assume regional measure three. Do we know what the timing would be if it gets on the ballot and is approved in june, what the balance looks like for us . I dont know that information. Im told if it does pass in june, theres a chance of funds being able in fiscal year 19 but certainly 20. Could be as early as january 19 that we would receive any other questions from any directors . Okay. Call the rolls. No memobers of the public wanting to comment on the item. There is a first and a second. With that. [ roll call. ] clerk thats five ayes. Item 10 is approved. Your next item is item 11, approving the minutes of the december 19, 2017 meeting. No members of the public have indicated they want to comment on the item. November. Second. Clerk no objections, all in favor . The minutes are approved. Were going to go ahead and go back to item were going to move back on our calendar to the executive directors part and well do a restart on that. Happy new years, directors, again. My report, as i mentioned, will include two presentations that will cover three items. The first presentation will be the annual Program Status report that we present to you the accomplishments in 2017 and goals in 2018. Itll also include the project labor quarterly agreement that you have a copy of. Second presentation will be a brief report by Collier International on the retail leasing update efforts so far, so well start with the first presentation. This will be a team presentation. Ill ill share with you the highlights and accomplishments, and then well follow that with programwide accomplishments in 2017. Well have the construction update, and well have two updates as well as Operations Update and then well move to 2018. Can you. So starting with our accomplishments. Under the leadership of mayor ed lee in 2017, we were able to fully fund our construction in phase one. In january we closed the agreement with the city and mtc. In november in partnership with the city, we were able to sell 146 million of Community Facility district bonds that completed the funding picture for us. That was a Great Success for us. Also in also in 2017, we were able to secure significant amount of operations funding as i mentioned earlier. We secured 3 million from proposal 2, and 325 million for dtx. Also, it will provide a significant amount of funding for operations in total. As i mentioned, we secured 11 million annually for operations in 2017. We also awarded the Asset Management agreement with lincoln that helps us to be in a position to manage the property when constructions completed, and we increased or staff. We hired a facility manager and a chief Security Officer to help us manage the facility. Next slide, please. We partnered with ac transit and the golden gate Transit District and received a favorable lease with caltrans for the bus storage facility. That lease saves approximately 1. 6 million a year for ac transit for the bus storage facility. We also partnered with ocii and negotiated a very favorable lease with caltrans also for the underground park. We received that from caltrans for 1 a year. That results in significant savings for the underground park. And we continue to help with the creating economic opportunities, and we also added the high speed rail to our board last year. The addition of high speed rail was significant for us because as a member of the agency of the board. It gives us a statistic leadership and Partnership Necessary to develop local, state, and federal support to bring high rail to our region as soon as possible. With that, ill turn it over to sarah. I brought the checkbook. With that, ill turn it over to sarah to talk about the program wide accomplishments. I can give you the wire information so you dont have to write that check. Thanks. Mark already hit the funding for us. Fully funding, naming rights agreements, operations funding. Another operational source that we procured this year was licensing fees from the neutral host. Basically the Cellular NetworkAntenna System in the building. That will continue to generate revenue as we move forward in operations. And we were able, after a very long process, to finally secure some funding to continue to advance to preliminary engineering. Our dbe and sce programs, we continue to have high numbers in the design and construction phase, and im certainly looking forward to seeing those numbers continue in operations. Overall over the life of the program, weve awarded about 21 of our contracts to disadvantaged or Small Business enterprises. That equals about 350 million, and that equates to payments so far of nearly 250 million over the life of the Program Since 2004, that is. We currently have 35 professional services or architectural type contracts in place and nearly a third of those are primed by small or disadvantaged businesses. In the on the construction side, web core obiyashi put out a total of 15 trade packages, and a majority of those went to sbes. The vast majority of the lower tiersubs are sbes, and you can see that we also have some good participation on the bus storage construction, as well. And with that, i will hand it over to dennis. Good morning, directors. We will go through the phase one 2017 accomplishments related to the temporary terminal, the Transit Center, bus storage, the project labor agreement. I will present a few items, and ultimately ron will cover the budget schedule and risks going forward. The temporary terminal. It had its seventh full year of activation. We also had abm start the negotiations and coordinations with our new asset manager. Started that handoff process and discussions, and also negotiated a two year Lease Agreement with tischmansuperior for the gifting greyhound building thats over at the temporary terminal after the operations are shifted off the temp terminal. In regards to design and improvement for phase one, there was some procurement. We had the neutral host, cellular das, the Cellular Service was awarded. The physical security, and the Emergency Notification was awarded, and also an amendment to the public works agreement to have the Mission Street bus island scope added. And also for the Second Street project, adding the natoma extension and the bicycle parking area also was added to the Second Street under that agreement. Now, phase one construction. This graphic, we have been developing over quite a while now. The park has a lot of trees. Continues to show that. When you move down to the bus deck level, the yellow area and the left area shows that an important part that the coding that was on the bus deck was completed. Moving down to the second level, a lot of activation for core and shell. The webcore is completing out their completion of the contract for tenant improvements. And at the ground level, youll see most of the yellow is the muni bus level. Going down to the lower concourse, a lot of the yellow youll see is just basically concrete finish work, punch out, cleanup. And then, on the left side portion there, you see continued the interior finishes such as carpeting, paint and such in all those rooms that are in the lower concourse level. And then, the train box, that was basically the build out. Theyre almost finishing out on the punch out activities. Heres the pictures. The one on the left is the picture i