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Present. Chairwoman moving on to item number two, opportunity for the public to comment on any members before this jurs jiks that jurin that are not on the agenda . I have a handout. Thank you. Chairman thank you. Just to note, member patoha just walked in. Good morning, my name is jerry drafter, and i served on the civil grand jury excuse me, as a civil grand jury member in 2015 16, and im a retired c. P. A. There are many new members and i thought it would be useful to hand out a copy of appendix with legislature underpining for the City Services auditor, and the department and the position. Seago is charged with overseeing the c. S. A. I allowed two section, sf100 and sf101 that outlines tasks that the c. F. A. Shall perform. And this is important, because there are tasks the c. F. A. May perform and tasks they shall perform. I will address what the c. F. A. Is required to porm and is not performing. If you look at section 101, and on the top there are three types of assessments. Im going to deal with number two, which deals with the measures of efficiency, including costs per unit, of output or the units of service per fulltime employee. This is also important for the citizens of San Francisco to understand how the 12 billion annual budget is being spent. So, you know, are we getting more units of output . Or it costing more to develop or produce each unit of output . Thats a really important part of open government, and its not being addressed. There are also nine specific Service Areas identified in section f101a, where the c. F. A. Is required to collect data and conduct comparisons. I think if you look lieu thlookthrough the list of nine areas and the reports that have been issued this year, youll find there are major deficiencies. In conclusion, i think it is very important, as one of the agenda items is to review the annual report, that there is a more complete disclosure in the annual report as to what was done and what was not done. When i looked at the annual report, its really a statement of what you did versus what you should have done. Thank you. Chairman next Public Comment. I also have a handout. And copies of a longer excerpt. C. F. A i can go ahead while youre reading that to save time. My name is kermit cubits, and im a resident of the shermot fords neighbourhood. My comments are about the Emergency Response funding bond programme. The Citizens Bond Oversight Committee must ask for Additional Information on the bond spending, planning, and prioritization. Rather than spending additional funds on Office Buildings for lower priority services, like traffic, forensics, or medical scanner offices, the city of San Francisco must focus on earthquake preparation, specifically the auxiliary water supply system and the emergency firefighting water system. You may be aware, or you may not be aware, that the San Francisco civil grand jury, manned by citizens like this gentleman here, issued a 114page report on july 17th entitled act now before it is too late a ag aggressively handle our water system. This raises several questions for me. First, do the city, government, mayor and board of supervisors and management agree with the analysis in the grand jury july 17th report . I believe the response is due in 90 days. Second, how does e. S. E. R. Work described in the 2010and 2014 bond reports fill weaknesses in firefighting, i. E. , coverage of the city by adequate Water Supplies in the event of a nearby earthquake . Third, as funds have been allocated for some projects, should lower Priority Office projects be delayed to accelerate firefighting Water Supplies and equipment . Fourth, can San Francisco take interim measures, such as portable water systems, to fill gaps in water firefighting systems, and should e. S. E. R. Funding or other funding be prioritized to provide such interim measures. And fifth, can reports on e. S. E. R. Planning projects and prioritization provide mapping data to show coverage, or lack of coverage, of San Francisco neighborhoods rather than merely tabulation of budgets and expenditures . It is the result that is an adequate firefighting water supply, not just the list of projects that needs to be monitored for progress. And if you can switch to the computer just to show, this is a table from the grand jury report that shows which areas of the city have high reliability, and which have low reliability. And as you can see, the sunset has low reliability, and bay view Hunters Point has low reliability. And only the San Francisco bay has adequate reliability. Chairman state your name again . Kermit. Chairman any Public Comment . I have copies. Seeing no Public Comment, can you call number three . Item number three, election of chair and vice chair. Chairwoman so we did do this last month or last meeting, if it feels like we just elected. We have to do it at the beginning of every fiscal year. This is our first meeting in the first fiscal year. Are there any other nominations for chair and vice chair . Is that how that works . Thank you, ken rue, deputy City Attorney through the chair. Thats the process. I think what weve done in the past, we start with the election of the chair. We have a discussion out out of the discussion, we have a motion. Before we vote on the motion, however, we need to go to Public Comment, of course. And then we take the vote. If that fails, we repeat the process until someone becomes chair. Once we have a chair elected, we simply repeat the process for the vice chair. I would hik like to nominate kristin chu to be chair of this committee. Second. Chairman any Public Comments . Can we take Public Comment . Seeing none, can we vote . Yes. Chairman okay. Chair chu . Yea. Mr. Lurkin . Is that me . Chairman okay. Member mccue . Yes. Member mcnulty . Yes. Member patoha . Yea. Chairman vice chair post . Yes. Chairman great. Mr. Mills hasnt been sworn in yet, so he is not is voting today. Have there any nominations for vice chair. I will nominate lauren post for vice chair. Chairwoman i will second. Any comments from the members . We already have a nominee . Any Public Comment on vice chair . Seeing none, can you call the vote. Chair chu . Yea. Member lurkin . Yes. Member mcnullty . Yea. Vice chair post . Yes. Item number four, approval with possible modification of the may 20th, 2019, meeting. Chairwoman do any of the members have comments . Ill move to approve the minutes. Second. Chairman any Public Comment on the minutes . Move on to item number five. I think we need to vote. Chairman can we just do one big vote i think we need to vote on the ap priewl oapproval of the minutes . How can you do it without calling roll call you can do a roll call oraor any say any objections. Chairman any objections . Great. Moving on to item number five, present takes regarding the 2008 San Francisco General Hospital bond, and possible action by the committee in response to such presentation. Good morning, madam chair, and members of the seago committee, my name is joe chin, public works public manager for the Public Health and safety program. My last presentation was back in january of 2019. So before we i move into the presentation this morning, i just want to kind of spend a moment to acknowledge the rest of my public works Public Management team that is here today, as well as members of the representatives that are here as well as part of the bond program and to help answer any questions on that. That ill be answer that morning. I see members of the department of Public Health, homeless and Supportive Housing, as well as the Fire Department. Theyre all here. I wouldnt go through any individual names, but we do have representatives from the three Client Departments. So now moving to slide number two, this is for those members that were here back in january, or maybe have seen the report the last report that was published by the public works. So this bond program, i believe, was back in may. So ill quickly go through the bond program for those that are not familiar with the Public Health and is safety bond program. This is a slide that maps out the bond authorization for the entire Public Health and safety program. It provides the total amount for this bond, 250 million, and provides funding for three Client Departments. The lions share of this bond is for Public Health, at 272 million, and 58 million allocated to the Fire Department, and then 20 million for the department of homelessness and Supportive Housing. To just quickly walk through the graph, the redcolored bars, as you can tell by the slide, maps out the allocation by bond component, and also the orange is the allocation by bond sale, and then the yellow is the the orange is the first bond sale, and the yellow is the second bond sale. For this bond program, weve completed two bond sales two date. The first one was 176 million, and then the second bond sale was 52. 5 million. And then moving on to slide three, i think in general, from public works perspective, the projects have been doing well from all components. The bond Program Covers six bond components, and weve been making great advances from starting with a programming phase to design and moving to construction. So let me just focus quickly on the first section, which is highlights and accomplishments. There will be more deeper dive into each bond component as we move through the slide deck. For now, let me give you a highlevel view of where we are currently. So one of the largest bond components is the zuckerburg bond component, and of the 19, 16 are active. Roughly one project has been completed, and there are four projects that are in construction,and two in plan approval, and one in design and five other projects not currently in the programming phase. In the Community Health centre, were tramaticing four projects. One project has been completed, and two others currently in planned review. The ambulance project is a great success, where weve starkly issued the notice to proceed to the contractor in the later part of 2018, and as of july, we already started steel erection for the facility. So it is way into construction. And one of the first projects that weve now completed for the homelessness and Supportive Housing component way 440 church streerntled whicstreet, which we essentially completed. We are just tracking the projects to quickly move these projects from design to construction as soon as possible. This is obviously related to risks that the adverse bidding environment that is faced by all projects. This bond program, as well as other bond programs managed by public works or other city departments. Just to quickly talk about Southeast Health center and cash emission, those two projects are an upcoming milestone, really to finish our design. Were currently in the permitting phase, and well hopefully look to starting construction by the early part of 2020. In Section Three of this slide, bond sales and appropriations, i mentioned there are two bond sales to date for this program. The first bond sale was completed in march 2017. The second bond sale was completed in june of 2018. At this point were currently targeting our third and final bond sale for early part of 2020. And in section four, just risk issues, concerns on budget scope or schedule, the risk and issues continues to be the same since we started this bond program. Once again, it is not knowing what the bidding environment is. Weve looked at lot of different projects across the program, as others. It is just a very challenging bidding environment. We however, we do see some lightening up of some contracts being let out, so that could be a good sign, you know, that thats forthcoming. Okay. Moving on to slide four, as i mentioned, the next few slides is a height highlight of each of the sex components under this bond program. There are more details and photos of each project that is part of the bond component, that is part of the part that was issued as part of the slide deck. If there are any questions on that, i can talk about that at the end of this presentation under the q and a. But moving to zuckerburg General Hospital, the budget remains the same, 22 million, and current expenditures is about 46 million, which accounts for about 42 of the first bond sale amount. And then in terms of accomplishments, i. T. Infrastructure, and there are two projects currently going through oshpod plan review. Oshpod is the authority and jurisdiction for hospitals in general. All of the projects that were currently delivering, under oshpod, not the local jurisdiction it is a state agent see tha agency thats jurisdiction over the cheap care facilities. The family Health Center is one of the latest projects we completed programming, and we just wrapped up or schematic design. And this century beginning is tt attempt of or planning for seismic basically retrofitting the existing hospital after the new hospital is completed. So weve are about 95 complete under phase one, and that accounts for about 30 locations out of 20206locations, and were looking a lot. How could we maximize services while we do this very important work. 6h, the rehabilitation department, seismic upgrade, those are were looking to complete construction by the end of the year and the early part of 2020. And kind of another key activity that were looking at is what i call a request for a proposal for a c. G. Contract, and this centur is the message weve worked on with the Client Department, as the most efficient way to promote one project under the building five program in this bond component. Just moving on to the Southeast Health center component, this component comprises of phase one and phase two. Phase one was completed in 2017, which included renovation in the existing facility, renovating the Dental Clinic as well as the lobby area. And now the team is focused on phase two, which is building a 22,000 Health Center adjacent. And currently were tracking three documents, and we received a city Design Review of phase three, back in july, which then allows the project to segue into the next phase, which is to start the construction bidding. So were tracking for that to happen next month. So thats our current schedule. Which will allow croud crowks construction to starter in the early part of 2020. Moving to to the Health Center component, there are two locations that were focused on under this component. The maxine Health Center located in district five, and cash emissions Health Center located district eight. Were embarking on an upgrade to improve seismic performance, as well as to perform major interior renovation for both facilities. Maxine hall is ahead of cash emission, and we awarded a contract. We issued m. P. P. In july. The construction in the facility itself will start tending the relocation of the clinic to a temporary facility that is currently being set up by the offsight location, less than a mile away. At the l. Hill hutch community center. Thats currently what were tracking for maxine. The moveout date for maxine hall is currently in october, into the temporary facility. And the clinic will remain there for the whole duration of the construction face. And cash emissions, just wicly oquickly on that, we finishing up design, and we had to push out the bidding date, do some mec commechanical improvements and air conditioning, that has been added to this project. Were looking at starting bidding at the end of the year, and starting construction by the early part of 2020. And then moving to ambulance facility component, this is one project one big project. It is constructing a new facility for the e. M. S. Section of the Fire Department. An n. P. P. Was issued in october 22 of 2015, and steel erection started in july. Im happy to report in the early part of august, just a few weeks ago, weve completed the steel erection, and weve had a very nice and formal steel topping off ceremony with the Fire Department and the contractor. So this project is well under way. At this point, were on target to complete the project by winter of 2020. There are some photos at the become of the slide, highlighting some of the steel that has been completed now, as of today. Moving to the neighborhood fire station component, under this component, were tracking two scopes of work. The main one is the host tower removal project. There has been an assessment done that the host tower that currently at six remaining fire stations will create a seismic vulnerability in the event of a majority event, and so the project is to remove that scope tower. And the other is replacing the existing emergency generator at three fire locations. So this the host tower projects have been very challenging. Im happy to report that after a very long and arduous process, after almost a twoyear process, they received a category exemption approval from the San Francisco planning department, which al o lousallowsthe project to movem design into permitting and construction. Were tracking to have construction commencing on these projects probably by mid2020. On the generator replacement, there are three locations that are being targeted for generator replacement, at fire station 18, 37, and 44. And those are currently in design, permitting with construction also to start by middle of 2020. And then last, but not least, on the Homeless Service sites, we are targeting or tracking three scopes under this component. 44 Church Street renovation, thats one of the larger projects, where we are building out a new administrative office, as well a clinic access point for the department homelessness and Supportive Housing, and there are the three cityowned shelters were improving, and the last is the 1064 mission, which is a project among three departments. There is a mayors office, a Housing Community develop, and the department of Public Health, as well as the h. S. H. Departments. As i mentioned, 44 Church Street was completed july 31st. At this point, we are tracking the h. S. H. Group to move into this renovated facility by midtoend of september of this year. And then we are starting to start the construction work, or at least getting cost proposals for one of the cityowned shelters. Thats at 260 glen gate, also known as hamilton adult shelter. And were anticipating starting construction by end of 2019. Moving on to the last slide, which is slide 10, i wont go through all of the lines and numbers here. I think it is pretty selfexplanatory. This is what we have shown before, a summary of all of the expenditures and incumbrances for all six bond components across the board. It shows pe percentages and what has been spent to date, compared to the bond appropriation, as well as to the original bond budget. At this point, that concludes my formal presentation this morning. So myself and my team is available here to answer any questions you may have. Chairman awesome. Thank you. So i am the liason for this bond. And i met with joe a couple of weeks ago, i think, regarding this. Before i go into my report, if its not completely clear, the department of public works is working on behalf of three departments. Theyve got Client Departments. And so i wanted to take an opportunity to ask the Client Department if they have any issues or concerns that they would like us to be aware of . And in general, are their expectations being met . I believe we have members of the Fire Department, homelessness, and the department of Public Health. So were here to listen. Anything you would like us to know . D. P. H. , do you want to come up . Good morning. My name is cathy chung, and im the director of facilities and Capital Planning for the department of Public Health. I just want to say that were actually quite excited that after many years of planning we have three Community Clinics of our Health Centers going into construction by erl early next year. They are once in a generationtype projects. Weve worked very hard, handinhand, in collaboration with the public works team. So we would like to thank them for all their efforts, and just look forward to getting these done and being able two move back in. Chairman great. Thank you. Im Terry Schultz from the department of Public Health, zuckerburg Capital Planning. It is going to and transformational. The seismic project is going to be impacting, as joe said, there are 206 touch points in the building, but they usually have a column which impacts two rooms. So usually it is sandwich between two rooms. There are 400 changes or relocation that is we have to do enabling those efforts. So there is a lot of risk that is involved with that effort. And we spent a lot of time with joes team and our teamworking collaboratively, and i think it has been going very well. And weve been very successful as mitigating some large problems. I want to thank joe for his efforts. Thank you. Chairman thank you. Hi, im lindsay haddock with the department of homelessness and city housing. I want to thank joe and the department of public works for the collaboration on getting these projects up and running. 440 churchill has just completed construction. And the department is looking forward to moving later this summer. It has turned out better than i could have hoped, given some of the challenges we have with the existing building. And h. S. H. Is really excited to be under one roof, together for the first time, in our departments short history. And as joe mentioned, it is a complicated project involving the department of Public Health, along with h. S. H. , but it has been a smooth planning process, and im looking forward to starting construction on that next year. And in terms of the three cityowned projects, cityowned shelters that are going to Start Construction shortly, thats really been h. S. H. s homework, to prioritize which scope items to get started with first. Were looking forward to starting work at hamilton shortly. Hopefully in the next month or two. Again, i want to thank joe and his team for their collaboration on our portfolio. Good morning, my name is dawn dewit, and im the new deputy chief of the Fire Services support division. Im replacing tony rivera, who retired last week. Ive been on the job a little more than three weeks, and i want to add that im really impressed by the collaboration and attention to detail that im experiencing in working with the focus scope bond team fo for the and the ambulance deployment facility team, too. Im impressed with the level of care theyre taking, the organization they exhibit, and i couldnt be happier with what ive seen so far. It is really impressive. Chairman thank you. I appreciate you guys being here and your comments. As the liason, this has been in front of us, i think, twice before, and each time i will tell you that i find this bond extremely difficult to govern. When you think about whether it is on time and on budget with so many different projects and such a fluid contracting environment and decisionmaking process from our clinton departments. It is overwhelming. So i think it is fantastic to hear that the Client Departments are getting what they want. One of the things that also makes me more comfortable about that is that i know that there are commissions behind this, the Fire Department has their own commission, so there are people watching this besides us. Its hard to govern because the bond was written that way when it went to the ballot. Its not d. P. W. Who is trying to make it more complicated than it is. So a couple of things to point out there is a financial audit that will be presented to us in our january meeting, so well get to look at that, also. And in our debt calendar, it looks like, as you mentioned, none other bond issuance, probably about 126 million, so it is a big bond issue that is expected in the spring. So we will hear again from the audit group about some of the financial responsibility associated with the bond and before the debt issuance. So thats overall, im very comfortable with the status of where this bond is at. Does anybody have any questions for d. P. W. Or the Client Department. Actually, it is about this is a little bit of history, joe. The 2008 s. F. G. H. Bond, some months ago, i spoke to the City Attorneys office, elaine oneill, and she said that the subcontractor passed through claim and had gone through the g. C. , had talented did it settle . She gave us a little back story about this issue. Thank you, member lurkin for the question. Yes, this is regarding the 2008 s. F. G. H. Improvement bond. This century bond tha is the bos passed to construct a new hospital on campus. What mr. Lurkin was alluding to and chair chu mentioned, as the party was completed, there was ongoing litigation that was, i guess that the city got involved with. It started with a litigation between web corp builder, which is the general contractor, and there was an ongoing litigation between one of their subcontractors, by the name of khsns. They had filed a lawsuit again web corp, and web corp pulled the city into litigation. So it was a cost complaint against the city and county of San Francisco. So, yes, since then the settlement has been completed, finalized, i believe, and it has also been signed off by the board of supervisors. So, yes, so as of now, the litigation between web corp, the city, and k. H. Has been resolved. So there is still a followup to the piece of that. The fact it is under litigation, maybe we can speak offline about this because there is a followup litigation piece on going where the city has filed a lawsuit against the designer of record. Ill check in with you later, joe. Sure. Chairman any comments . I have a question. So you mentioned about one general contractor and five projects. Did you say lean contract bidding . I didnt hear the term you used. The contract and mechanism is c. M. G. C. , and it standards for construction manager and general contractor. We do a six step process, where we go through r. F. Q. , mean a qualification, to really perfect the phasing logistics. So weve gone through the r. F. Q. , where we have short listed four contractors. So the next phase after that is to do a request for proposal. That is based on both a cost criteria and a noncost criteria. And thats currently targeted to be issued in the next month or so with a goal to have a contractor selected by the end of the year. And then have ntp for this contract by the early part of 2020. So youre looking for one general contractor to manage five projects, or multiple general contractors . So we are looking for one general contractor. And how we would deliver the projects would be the general contractor would be responsible for doing what we call the packages or trade pac packages, and we would prequalify general contractors, and they would do the same thing to qualify contractors. And they need a competitive bid on the designed scope for each of the projects. Thank you. Thank you. I have a question. Thank you, mr. Chin. Im pleased to hear that the way youve done your presentation gave us the overall, and chair chu asked your Client Department to come up and express their satisfaction, or lack thereof. Im glad to see that format. I suppose in the future, when we have this type of arrangement, this is a good way to present it. My question specifically is that as i started reviewing your presentation, on every single page i cant help but notice that there is a very important footnote relating to the financials. And ill read it for the record. Please note the date reflects only bond sale expenditures and incumbrances and does not reflect other financial sources. People saw the Financial Data as of june 30th, 2019, subject to revision based on public works labor and nonlabor cleanup effort. As i was reading this, i would thinking to some other commentary that has been made regarding still the lack of reliability of the new financial system. And as a user and a reporter, can you help explain to us your level of comfort when you report these numbers, relating to their reliability and integrity . What concerns me are the words subject to revision. That means that theyre subject to revision, so how much competence to we place on these numbers, especially relating to the expenditures, which is the main oversight responsibility of this committee . Excuse me. Thank you for the question. Ill do the best i can to address the concern. As everyone knows, the city transitioned from a very older system, famous about two years ago, to the peoplesoft platform. The reconciliation is ongoing, as ms. Chu mentioned. We are going through an audit through c. S. A. , and so in terms of what questions may come up through the audit, i think those will provide some substance and Comfort Level in terms of how accurate the expenditures are. But it is an ongoing process where were working closely with our c. F. O. Within public works. To really understand where some of the costs may need to be adjusted. We are definitely much improved from two weeks ago, where i think we have had this note, and probably the same for all boppebond programs, where it is not 100 accurate, but at the same time, the numbers are getting much, much closer to having a set number. Can you also can you show us a little more the terminology of cleanup. Is every Single Program subject to cleanup . Or are there some programs that you report on, for whatever reason, are undergoing a cleanup . I mention this because this terminology has been used to question how far along the testing, if you will, or the fixing of our Financial Reporting system is. And since then d. P. W. Is by far the largest department, having the most numbers to actually report, im bringing these questions because we wanted you to share how comfortable you, as project managers and program managers, are in looking at the numbers reported from below, and aggregating it to report it to the public and ourselves. What ill say is, i, myself, is not the expert in the financial system, the next time we can have our Deputy Director of finance, and her name is julie dawsen, and she can definitely provide a more indepth analysis of what we are. The term you use, cleanup, refers to us going into each project and trying to assess, i think, some of the labor side, where there has been ongoing effort to true up some of the overhead, which may or may not be captured in some of the labor expenditures. The tract sid contract side is straightforward. It is really on the inhouse labor expenditures, where were still working through with the accountants, just to make sure it captures all of the necessary costs when there is labor expended. I think thats a good idea because this committee, whether officially or unofficially, we have been receiving comments from the general public relating to the soundness and the reliability of our financial system. And since d. P. W. Is by far one of the largest departments, perhaps we should use your department and your experience, that is shared by your c. F. O. S, to keep this committee up to date as to the process of the cleanup on the audits. So i think that is a good idea. Chairman yeah. I agree. Thank you for bringing this up. We are going to talk about our work plan, and i see some possibility in our october meeting. So can we get back to you on that, and maybe peg can help us figure out the right scope of an agenda item . Chairman sure, and to add a comment for those who havent been part of the conversation in the past couple of years. There was a long period of time where reporting was not reliable, and that particularly affected capital funds. And projects had to be looked at to be sure that the appropriation, dollar value, and past expenditures, and several other fields that been properly brought over from the legacy system so they could be accurately reported. And it took a long time to get that sorted out. And thats part of the reason why our annual general Obligation Bond report, which is part of your product as well, was an 18month report, running from january 2017 all the way to june 2018. That phase went on for a while. I think that is largely resolved. There are probably still always a few outstanding issues, but the underlying legacy data and expenditures brought over from that system i think now are reliable. Secondly, there is a timing issue, and i think that is probably more what the footnote in the current presentation refers to, where it usually takes at least a couple of quarters to make sure that all expenditures are all properly reported, allocated to the right project. The labor distribution that gets done by public works, again, allocated to the right project. Thats why we dont typically issue the caffer report until november on a fiscal year that closes june 30th. In this case, it is probably more the timing issue that by the time they generated this report, all of the entries for the quarter ending june 30th hadnt been completed. So, again, these numbers all get better with more time. But i wanted to remind people there are those two different issues that have affecting the reports. Chairman thank you, peg. From a very common sense kind of viewpoint, we would appreciate if you keep this committee updated. I think at some point we realize that the transition of the new system is mostly at fault. But i think that this committee would like, at some point, to be able to see this footnote removed. And please keep us updated as to the possible timing because i guess very nervous when i read financials with a disclaimer. Thank you. Thank you. Chairman any other questions, members . Thank you. Any Public Comment . Good morning, my name is Jerry Dratler. Regarding the Public Health and safety bond, i think the presentation change or format change to include the project sponsors is very positive. And i commend seago for calling out the lack of reliability in the data from the new financial system. One suggestion i would make is that seago meet with the c. F. A. Team, to determine if the scope of work, the work that has been done, addresses your concerns about data integrity. And if it doesnt, i would suggest that you ask for additional audit procedures to specifically address your concerns. Secondly, reporting Financial Data thats two quarters, or a half year old, with as many moving parts in this project is a pretty serious weakness that needs to be addressed. In terms of more general concerns nice report, many pretty production but not much bond expenditure oversight information. I thought seago determined all bond expenditure presentations should include detailed project change reporting. I dont see any project change reporting here. And change orders there are four different kinds of change orders. And change orders are a key indicator of a problem with a project. You dont need to wait until the end of the project to find out that you have significant cost overruns. When you look at the number, the type, and the frequency of change orders, thats a key barometer of where this thing is going. So addressing the types of change orders you know, when there is a change in scope, thats pretty serious. And the contractor needs to renegotiate the contract to get paid for it. And you need to know about it. Also, if there are unforeseen Building Condition change orders, you need to know about it. I think most importantly, the citizens of San Francisco, who approved this 350 million bond, need that information as well. So im disappointed. A lot of effort went into the report, but its you know, its pretty. Thank you. Chairwoman any Public Comment . Can you call the next item. Item number six, the liason report on the 2011 road repaving and Street Safety bond, and 2014 transportation and road improvement bond, and possible action by the committee in response to such presentation. Chairwoman ryan, i hate to put you on the spot. Im kind of look forg for presentation from the staff, or do you want the liason report. Chairwoman i think we want the liason report. All right. Thank you. I am the liason for the second of these two contracts, 2014 road improvement bond, assisted by brenda. We met with s. F. M. T. A. Staff o on the 7 financial o7th of thismonth, and we have a review of the report that is in your package. I will say generally theyre in their third bond issuance now. And in deference to some of the availability of contractors to do work now, the issue we heard about from the previous bond report, is affecting them, too. And what they, m. T. A. , are doing is trying to space out their bids, putting their contracts out to bid, so as to not be affected so adversely by the lack of available contractors. One of the problems of this nature manifested itself in the contract for the geary road improvements pardon me, the geary pedestrian improvements, and they got three bids, all of which were over the engineers estimate. They regarde regarded that contract as being so important to pedestrian safety, theyre going to go ahead and award it nonetheless. As a person who lives on geary and is of a certain age, im glad to hear theyre going to do anyway. There were several contracts that i wanted to ask questions about that i didnt get into the detail on until after i had read the report. But generally speaking, we heard that there be no pending major contractor claims on any of the work that theyre doing. Thats good. Some of the things that i read about in the detailed report here, the report that is in your package. Looked like they could be potential claims, but if they resolve the issues by the aforementioned by Jerry Dratler changeover process, then it isnt a claim. If you settle with a change order, its not a claim, and thats the best way to do it. In my previous question about the s. F. G. H. Bond, there was a lawsuit, and there was a lot of legal talent involved in that and by g something with a change ord, all of that is resolved. In this case, the city of San Francisco gets their project late, and the only benefit they get for paying for having it delivered late is a chance to look at a bunch of guys standing around leaning on shovels on the citys dime. Thats, to me, what is important to avoid, and thats what i follow up on most specifically, most ardently. It doesnt seem as though there are any bad ones coming up, though if the staffers were here, i would ask them a little more about a couple of contracts. Contract 64, in particular, where there is a rightofway issue at merapose and pennsylvania. At king street, substation work was suspended due to pg e issues. This kind of thing is on the citys lot. The city will be responsible for paying for those delays. It may have been caused by pg e in this instance, but the contractor wont know a thing about pg e. All the contractor knows is what the contract is with the city. So, again, i would like to find out what is going on there. Again, they, muni, are experiencing the same difficulties in getting bidders to respond to their request for bids and also getting reasonablypriced bids. There were fires up in sonoma county, and it was in all of the papers last year, and a lot of contractor work in particular is going up there. So getting contractors to work, and for those contractors to show up for work down here when they get more money up there is a continuing issue. One of the contracts in the report said this is on the 22 filmore east two mission bay expansion, and they need added funding to finish the contract, or ultimately will need to complete the contract. Thats a question on which i would like to follow up with them. Let me just check my notes that i had coming in here. I think thats it. Chairwoman questions . There are two different bond program managers, and im not sure if any of the ones you have questions about are the subject of the m. T. A. Bond, but i know mr. Lee from the m. T. A. Program is here. Sorry, public works. So let me back up a step and say, congratulations, mr. Lurkin, youre the first deliverer of a liason report in the format we talked about for this fiscal year. There has been a little bit of confusion about how to deliver this content, but i think our conversation, when we were developing the work plan with you

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