Present. Thank you. Mr. Hursh . Present. Lipkin present. Tavares is absent. Vice chair gee present and madame chair present. Directors, you do have a quorum. Go ahead and call the next item. Sure. Directors, the next item, item 3 is communications. Wed like to provide further instructions for the Public Comment process which has changed slightly from the last meeting. Members should dial into the published number, 408 4189388 and enter access code, 1466334383, press pound and then pound again. Listen to the meeting as they wait for Public Comment to be announced. At which time, members would have up to three minutes to provide comments on each agenda item. They would get into the queue for a particular item by pressing star 3. I will announce Public Comment on each item and or for general Public Comment. And that is when callers will dial star 3. It will show their hand is raised and theyll be added to the queue and called on. Lets see. Callers will remain muted until their line is open. Automated voice will let callers know when its their turn to speak. Everyone should account for the time delays and discrepancies between live calls and speaking. Turn down your television or radio. Thats all the communications i have. Unless the other members of the board have other communications . Seeing none, would you like me to call your next item . I think she means yes chair sesay yes, please. [laughter]. Directors, item 4 is board of directors new and old business. And director haney has raised his hand, madame chair. I dont see any other members wishing to talk on this item. Chair sesay okay. Director haney. Supervisor haney thank you, chair. I wanted to request an item for a new business for our next Board Meeting. To discuss the interim use of the temporary terminal site on the next agenda. I would ask that the staff and the meet time make all efforts to gather feedback from tenants and surrounding residential and commercial neighbors on desired uses for the space, which serves as an appropriate interim use. As the city reopens, the temporary terminal space will have the potential to be a neighborhood serving space on an interim basis for retailers and restaurants. Potential use to set up seating or other uses for safe social distancing activity. There have been some confusing and contradictory messages that have gone out about the use of the site. Initially, our director agreed to sort of an indefinite lease. Then it seemed that was not going to be used for that purpose. Then the latest was that the lease was going to be terminated and its not going to be terminated. So a lot of, i think, confusion amongst surrounding residents about the use of the site. I think its important we have a conversation here at the to really determine what is an appropriate use of the site. I think there are a lot of opportunities we should be exploring and i think its a responsibility we have as the Property Owner of the site. I want to request that there is preparation for that and that we discuss it at the next Board Meeting. Chair sesay thank you, director haney. Any other members . I will direct staff to work on director haneys request. Any other Board Members wishing to speak on the item . Any inquiry questions for staff . Any of the members of the board have indicated that they wish to speak on this item. I dont see members of the public that have raised their hand under this particular item. So weve noted director haneys request and well go ahead and move to the next item. Chair sesay yes, please. Item 5 is the executive directors report. Good morning, directors. Am i clear . My voice . Yes, it is. First, i would like to update you on our continued efforts to support the bay area reopening during covid19 health crisis. Our goal is to help reduce the Community Spread of covid19 by doing our part at the Transit Center. As you know, San Francisco is now in phase 2 of reopening, allowing for more indoor and outdoor activities. Were closely monitoring the guidelines and guidance from the cdc health officer, updates on protocols and update transit riders and other visitors with the most uptodate information. And our enhanced cleaning protocols remain in place. Im happy to report that we open effective this week. And while gyms are not allowed to reopen, were working with our anchor tenant on reopening strategy that we are fully that we will be fully prepared once they are allowed to reopen their facility. Likewise, were also working with them on the reopening plans. We continue to operate the Transit Center to support our transit riders as they see increases in transit ridership. The park remains a place of respite for the neighborhoods, visitors, exercise and fresh air, consistent with the bay area shelterinplace. Our active programming on the park remains suspended at this time. Were also requiring the public to wear face coverings in all areas of the Transit Center, consistent with state and local health orders. We continue our work to educate transit riders and visitors to socially distance from one another, wash hands and stay home when sick. Well continue to monitor updated orders issued by Bay Area Health officers to ensure were in compliance with all county and Regional Health measures. You will receive a more detailed update later on when john updike presents his matters. In march, the board approved the issuance of tax bonds, refinance and we pay all or portions of the city financing as needed and finance additional costs associated with the construction and design of the Transit Center. I am happy to report that on june 17th, we received we successfully sold approximately 271 million of tax allocation bonds with approximately 3. 4 Interest Rates. Far more favorable than our Loan Interest rates of 4. 57 . We received 360 orders for tax allocation bonds in excess of 3. 5 million. The refinancing will generate more than 25 million in net present value, or approximately 14 of the refunded bonds. Significant accomplishment by the tjpa given this is our first bond sale and it was accomplished in the midst of a challenging time at many levels. Our c. F. O. Will provide more details on the bond sale later today when she presents the budget for your consideration. I would like to take this time to thank erin and her team for their significant achievement during significant economic uncertainties and challenges we have been facing. At this time i would like to invite our federal Advocacy Team members with chambers, conlin to provide you with an update on the latest efforts in washington d. C. , transportation funding and stimulus discussions. Julie . Thank you, mark. Good morning, sesay and members of the board. It is a pleasure to be with you today. Together with keith and patricia, my remarks represent those of our Bipartisan Team of infrastructure experts specializing in the work before the u. S. Department of transportation. And its many modal administrations, including the federal transit administration, the federal Railroad Administration and the buildamerica bureau which finances programs. By way of background, ive spent the last 20 years working on federal Infrastructure Investments in washington d. C. , but i spent my formative years in Northern California growing up in auburn and graduating from university. Both of my parents were born and raised to San Francisco and i look forward to traveling to the city and seeing all of you in person as soon as it is safe to do so. In the interim, we appreciate the opportunity to bring a little bit of d. C. To you in this virtual forematt. My remarks will provide the development of the federal infrastructure package. So lets get started. To date, congress has passed three major covid19 relief bills. The largest of these packages, the cares act, was passed on march 27 and provided 2. 3 trillion in relief funding for broad array of critical needs, including Small Businesses and unemployment programs, as well as the transit agencies, which overnight decline in ridership, cleaning and disinfecting rooms. While there is acknowledgment another relief bill is needed, a fourth relief bill is not expected until mid july. In late march before the extent of the World Health Crisis was realized, it was hoped at the federal level we would see a quick transition from covid19 are relief to covid19 recovery through the form of a federal stimulus bill. While were still a ways off from that occurring, congress is working on a number of infrastructure proposals that could serve as foundation for an infrastructure stimulus package. Just as this team did in 2008, we have remained engaged with your congressional delegation and committees of jurisdiction to ensure that largescale, complex, multimodal Infrastructure Investments such as the sales force Transit Center, have an opportunity to compete for whatever federal funding becomes available. More specifically, the House Transportation Committee introduced the invest in america act. This legislation, should it become law, provides several opportunities for the transbay program. I want to highlight three of them. First, it modifies and expands the Freight Program to make transit an eligible applicant. Renamed as the project of significance, this is the Competitive Grant Program that is intended for large projects of 1100 million or more. The grant must be part of a funding package that funds that entire piece of the project. If this program survives the legislative process, it is likely the best opportunity for the tjpa to secure significant funding similar to the 400 million that tjpa previously secured for the train box. Second, the bill dramatically increases annual funding for stas capital grant program. They authorized at 2. 3 billion and the invest act would more than double to 5 billion annually. Both of these changes would benefit the downtown extension when tjpa enters the new start. Third, the bills rail title includes funding for highspeed rail projects, something we have not seen since the obama administration. This new 19 billion program is called prime. While all of these direct funding opportunities are promising, there are many problematic details that are important to have the tjpa apply for and administer federal financing program. Given the size and scope of the downtown extension, the awards, financing will be needed. In particular, the team has been working on modifications to the rrif program and were pleased to see language calling up tunnels. This modification would benefit the tjpa should it a apply for a risk loan. This legislation does not allow for any of the funds to be earmarked. No matter what final form the legislation takes, there will be no earmarking. The Eligibility Criteria are favorable to dtx, but well have to compete vigorously for the funds. The house is expected to vote on the act next week, but theyll do it under a new name, the moving forward act. It incorporates all House Democratic principles by including funding for broadband, housing for schools and water infrastructure. Passage of this legislation will be along party lines, but it sets forth the House Democrats negotiating positions for an infrastructure package. Republicans are equally interested in moving meaningful packages for infrastructure, but not as far along as the house. While what we are seeing at the federal level is trending in a positive direction for phase 2 of the Transit Center, i want to recognize that what youre most interested in is when you can start applying for these funds. Our collective crystal ball tells us that final passage of a infrastructure bill will not happen until after the election. If the republicans maintain control of the senate and white house, an infrastructure package could be passed in the lameduck session of 2020. If the country elects a new occupant of 1600 pennsylvania avenue, a package will wait until after january 20, 2021, when a new president is sworn in. If the democrats secure a majority in both the house and senate, it is more likely to see a package passed in early 2021. Finally, if we see the democrats maintain the house and capture both the senate and the white house, there is no question that infrastructure will move quickly. This last scenario would be very similar to passage in 2009. This includes the federal update and outlook. Keith and i would be happy to answer any questions. Thank you, julie. Please stand by in case there are questions at the end ever the report. Will do. Directors, i would like to welcome john updike and provide them with an update. As reported, john joined the tjpa as a facility director in may. He has hit the ground running and two years working in government and Property Management are already greatly benefitting the tjpa and the Transit Center. John, again, welcome, and please provide your presentation. Thank you, mark. Good morning, chair sesay and directors. So here is a list of the activities over the past month since ive arrived in this position. As you know, i had the pleasure of working with tjpa staff previously on the acquisitions for this facility on the street vacations and then on the bridge financing. So fortunately, i walked in the door with a little bit of helpful background. I want to thank the team at lincoln and their subcontractors for welcoming me and putting up with a lot of questions, as i look to bring efficiency to what we do. I want to thank the tjpa staff, who has been very accommodating, including nilla who worked with me for a couple of days to get me caught up. I appreciate that. Most informative has been oneonone discussions with each tenant who signed a lease with us, their concerns to date and the challenges they feel for a successful opening or reopening and how we can help meet that challenge. So i want to talk about the impacts that we have felt from covid19 as i think we previously mentioned. Were continuing the disinfection of hightouch areas. Were in the queue with multiple vendors along with many agencies and private entities to secure Hand Sanitizer dispensers that will roll out with the product already on hand as soon as we get the dispensers in our possession. The salesforce park remains passively in operation consistent with the guidance from the county and the state. Our signage efforts to encourage distancing, maskwearing and no more than two to the elevator have kept on pace and are supplemented by audio announcements daily. As our transit operations pitch up, our engineering and custodial team has worked closely with providers to install decals as necessary. You can see them here as an example at one of the transit stops. Most recently, weve had to approximate prepare for and adjust operations. Id like to thank all of the operators, the security team, my Facility Team and all the agencies for their great cooperation, excellent communication throughout those events. Of course, asked executive director mentioned, the commercial tenants at the time of the shelterinplace, fitness sf and others closed. While the tenants were closely monitoring the guidance on reopening, facilitating opens again. Were thrilled that they have reopened this week and we expect fitness to open in august, if not sooner should the guidance change that is currently out from the mayors office. Well like lie see them reopen their location when market returns this fall. We did experience minor delays in construction. Ill have details on that. As the executive director mentioned, in response to relief to request, well walk through the lease strategy for your consideration. On the leasing front, were focusing on some opportunities on the sales force pad site. Selfcontained food and beverage providers, with three potential prospects for use of suite 232. That is shown in green on the map. Thats where our offices are. Right next to our offices off the beale street elevators. We discussed with our leasing team the need to be flexible in these challenging times and anticipate changing market dynamics. So some firstfloor uses such as Financial Institutions and personal services may be considered along with less intense food options. Or for some or all of our remaining spaces. So those are shown in the green boxes here. We are seeking tenancies. Were going to need to be flexible and open to new considerations there. As those develop, well share more details with you. So now on to tenant improvements. As i mentioned, we only had a brief hiatus on construction and we have two projects fully under way. Kaiser permanente facility, on the second level, west end. And Verizon Store in suite 145. Thats first street. Both have targeted fall opening dates. Were excited about that and them joining the team here. The other tenants have been making terrific progress on design and permitting. Later this summer were going to be abuzz with activity through the Transit Center with possibly all of these others under construction. Working on a sequencing plan, detailed schedules with these tenants. Ill provide far more details on the timing of these efforts as well as projected openings soon. What i can say now is that some will open by the end of this year. Others in the spring of next year. Im happy to answer any questions. Madame chair, i do not see any members of the public or Board Members that have indicated via this Great Technology that allows them to raise their hand, but they can can i finish my report first . Chair sesay the director needs to conclude. I still have yeah, so sorry, can you hear me . Yes, sir. I might want john to take his screen down. We want to see you, too. Right now, i cannot see the list of panelists. Lets do it that way. Thank you very much. Directors, id like to update you on phase 2 in the downtown extension. Im pleased to report that the San Francisco peninsula rail program mum dumb of understanding memorandum of understanding has been fully executed by all partners. The executive Steering Committee meetings will be scheduled on a monthly basis. They will be they will be open to the public. Will be noticed and conducted in accordance with the brown act. Staff recommendation marked the project as included, considered or excluded. In the final print, blueprint strategies. Theyve marked dtx. Next steps as well as the bay area plan as part of the peninsula update later today. Directors, you have before you the financial report. Mr. Roseman can answer any questions you have. As i conclude my report this morning, i want to thank you for your excuse me i want to thank you for your years of leadership and support as i transition to a new opportunity. As i reported to you last month, i have accepted a new position effective this september. This was a difficult decision as my time in the tjpa and my work with each one of you have been extremely rewarding. Im very grateful to tjpa for providing me with the privilege to serve for the last four years. We have successfully accomplished a great deal together, including completing and opening a world class Transit Center, transforming a neighborhood, and making bold steps forward as we begin to deliver phase 2 of the Transit Program to the bay area, making reasonable and highspeed rail a reality in downtown San Francisco. I am committed to working closely with chair sesay and vice chair gee in a transition plan to ensure transition to the center and to continue smoothly. Thank you very much, directors. This concludes my report. Chair sesay madame secretary, any members of the board wishing to speak or ask questions . They havent indicated by raising their web hand. There may be verbally. I can see some faces. So, members . Seeing none. Chair sesay director tumlin . There it is there. Thank you. I just wanted to thank you for your years of service. Its extraordinary that weve succeeded the terminal, but then you carried the terminal through a series of catastrophes. [laughter] and i just want to thank you for your dedication to Public Service, your dedication to getting the terminal through this time period. And carrying it out well into whatever it is that were heading to. And your Public Service has been extraordinary. The work that you have done has been largely thankless. So i just wanted to make sure that your hard work and wanted to thank you directly for everything youve done. Thank you, director. Vice chair gee thank you, chair sesay. Mark, thank you for your service. Just wanted to ask chair sesay mark, this is not your last meeting, is it . Chair sesay no [laughter]. Vice chair gee youre at a subsequent meeting and well have more remarks at that time, is that correct. Chair sesay that is correct. Were not ready yet. Vice chair gee im not ready [laughter]. Mark, thank you. It was a good report. I liked the federal update because there is a lot of pieces moving. We need to be prepared for this. Thank you for the update on the facility and welcome to the tjpa. Actually, yes, im sorry [laughter] before we move on to the rest of the conversation, i did have some questions for mr. Updike. So this is a very strange time for downtown San Francisco retail, particularly restaurants. As were looking at our travel pattern data at sfmta, were continuing to see a dramatic drop in travel to and from downtown San Francisco larger financial district, basically the entire Office District in downtown. While travel is significantly picking up in the neighborhood commercial districts because of the geography of essential workers, were expecting the Office Buildings in San Francisco to be constrained in capacity for quite some time. Were expecting this to have a Significant Impact on the market strength of the Retail Services that serve downtown workers, particularly restaurants. So my question really is, what are your tenants telling you about actually opening and their expectation of Market Conditions . Thats a great question, director tumlin. Thank you. In my conversations with tenants, many of whom have other locations, some in the city, some outside the city. Those that have reopened have had pretty good experiences. That was encouraging. But youre right, there is a great concern about the return of the market here in particular. What weve talked about is really more a matter of proration of activity. If you think about the sales force tower, just to use that building as one example as a key neighbor of ours, several thousand employees when that building is fall. If we look at todays guidance when they are allowed to reopen, thats 20 maximum, thats still 1400 employees Walking Around downtown that are not here today. There will be the opportunity for some business. I think there is a challenge for all of the businesses to return. Thats why i think were seeing some major closures occur. Our tenants are excited about coming back. They still have a belief in this location as being a strong one and that they will find a way through as this business continues to ramp up over what could be many months. Thank you. Chair sesay thank you. Director tumlin and john updike. Anyone else wishing to speak on this matter . When the members are concluded, there is a member of the public that wishes to speak. Chair sesay i, too, simply want to thank the director for his report. I am excited to see that Onsite Dental is on and open and that were working through the t. I. Improvement for opening this summer and spring. And thanks, john updike, and welcome onboard. And i liked the idea of the federal update which is really helpful, just making sure were poised and ready so that were able to be just as successful as we were with phase one and getting the bonded dollars as well as accessing care. So anything we can do as Board Members to be supportive, let us know. And director, im not prepared to discuss you leaving yet, but thank you for your work today. And everything youve done. Weve come a long way. Weve worked together, this whole experience, so looking forward to what is to come for your future and then trying to get a transition in place so we can continue to do the good work and deliver on phase 2. With that, ill turn it over to madame secretary to see the members of the public wishing to speak on this item. Yes, we have thank you, madame chair, we have one member of the public that has indicated they wish to speak on the item by raising their hand. Well unmute them. Good morning, directors. This is roland from san jose. Briefly, i want to give you a huge thank you for making the executive meetings open to the public. Huge thank you to have made that happen. I do have a question to the chair and a suggestion. The question is, how will these meetings be notified and hosted . Will it be through the tjpa, mpc, or somebody else. You could answer that now or if you could answer it later under the presentation, that would be wonderful also. Let me address it under the esc. Okay great. Let me just finish up with a suggestion. Is that if you address this the same way that you address the review coming to you, that would be really wonderful. Thank you. All right, that concludes the members of the public that wanted to address you under that item. If there are any other callers, i do see them in there, they would have pressed star 3. Seeing one, we can go ahead and move into the next item, madame chair. Chair sesay thank you, please proceed. All right. Item 6 is the construction closeout update. We have ron alameda who will present on the item. Good morning. Ill try to share my screen. I have a brief update on the closeout effort. A and, okay, i think you should be seeing my full screen now. Again, a brief update as we kind of navigate through the closeout efforts with the general contractor and the subcontractors. The first slide is the usual ticking down or through the closeout of subcontractors. We have two trade groups that are now positioned for final changeup, change order process. Since last we spoke, we had four transitioned over to fully closed out, so we had an uptick from 32 to now 36 trade groups that are fully closed out. And we did see a decline from 13 to 11 trade groups that are in the category of dispute resolution and those are the ones that will continue through advancing through dispute resolution advisory or beyond in terms of trying to resolve issues. If we look at contingency, the expected drawdown on construction contingency will affect some of the closeout efforts settling up on the issues. And we anticipate or forecast with these contingencies the upcoming 10 Million Program reserve replenishment that youll hear later on in the budget discussion. And then as we look at the budget status, the estimated completion is upticked a bit. Its reflecting also the transfer of Program Reserve as well, showing the 12. 3 remaining Program Reserve. And that is inclusive or recognizing the depth of change orders from the costs of the beam repair being put on the general contractor. And most importantly, we remain within the prescribed budget of 2. 259 billion. So no real big movement there. Its all really just leaning into closing out the remaining individuals. And thats my brief presentation. So are there any questions . Chair sesay thank you, ron, for your presentation. Members of the board that have questions, go ahead. There are none. Ill turn it back over to madame secretary. Do we have members of the public wishing to speak on this item . Thank you, madame chair. No members of the public have indicated they wish to address you under this item. If they did, the members that called in or are calling in, would press star 3. Give them a moment to do so. We have no Public Comment on this item. Chair sesay thank you. Thank you. Trying to run share. Not sure what youre seeing now. Taking the ball seems to be one of the way to help get the screen back. There we go. Thank you. All right, next item, madame chair . Chair sesay please, thank you. Item 7, directors, is the cac update. Through our cac update, he has indicated there is nothing new to report and will see you at the next meeting with an update at that time. With that, the next item . Chair sesay yes, please, thank you. Item 8, directors, is Public Comment. An opportunity for the members of the public to address you on matter that are not on todays calendar. And directors, we have one member of the public that has just indicated they wish to address you under that item. Well go ahead and unmute them. Other callers, there will be a couple of callers that wish to provide Public Comment under this item, if you can dial 1 408 4189388 and access code, 1466334383, pound, and then pound again, followed by star 3 to be added to the queue to speak under this item. Well go ahead and unmute the first caller. Caller, you should be in the queue now. Hello, caller . Good morning. Good morning. Please state your name. You have three minutes once you begin speaking. My name is abbey. Im a resident of d6. I believe that the transbay terminal site is an unacceptable site. The tjpa has not been transparent with the residents of d6. I believe its in violation of the bylaw. They should focus on the planning and execution of this space for its intended use, for Affordable Housing units and public space. As the board may or may not realize, a bus within 25 feet of the daycare establishments. In the one to two blocks surrounding, there are well over 2000 units of housing and thousands of residents. The mayor herself has indicated she did not plan to use this site for a safe sleeping site. It is not acceptable for the city to hold onto a lease or for the tjpa to go along with this without adequate board discussion and a real vote. The is dense and in covid times have been more restrictive for residents as sidewalks are narrow and we lack open areas of green space. We have a navigation two blocks from the site. Residents were made aware when it was posted on social media sites. The tjpa should be more transparent with the public on this issue and others. It took two weeks for the tjpa to grant my request for a copy of the lease. They were told that the lease was terminated. There is a small mention of this lease by the director in the minutes from the may meeting, which were only for public review a few days ago. Its more like the city controls the lease, yet the tjpa negotiates the lease. Unless the lease has been amended, the terms of the lease say 30 days after the sip notice is lifted. Mayor breed has extended the shelterinplace indefinitely. This is not month to month and should be brought to the board as a specific item to include a review of the alternate ways this space can be used while the r. F. P. Of the development of this space is conducted. Including slow streets, fitness classes. I appreciate director haneys earlier call to add this to next months agenda. This has shown a lack of transparency in sourcing and projects, many of which continue to directly affect residents in our neighborhood, including, the yearlong closure of the transit terminal and questions around sourcing. Its time for the board to be actively involved with the issue and i urge that you take up this issue immediately. Thank you so much. Thank you, caller. We have one more member of the public wishing to comment on this item. Caller, can you state your name . Im tina, im 11year resident of the area and president of the Community Benefit district board. I support supervisor haneys request to have a discussion about how we can best use the temporary terminal site. We were told that the agreement [inaudible] okay, sorry. I got another notice. We were told that the agreement had been cancelled and im disappointed to learn that is not the case. This kind of miscommunication destroys the trust that the tjpa has with the community. The park and the terminal are neighborhood treasures and i want the tjpa to continue to be a good neighbor. That means much better communication and more cooperation and collaboration with your neighbors. We want to do what is best for our unhoused neighbors and the site plans weve seen dont work for a number of reasons. So i request this agreement be cancelled. I would love for those of us who live here to have the opportunity to discuss what works in the interim until we can get the park and the Affordable Housing built on that land. Separately, i would like to issue a thank you to director zeb for all the work. I know you came into a stressful and difficult situation. I hope your next role is as professionally rewarding, but hopefully a little less stressful. Thank you. Thank you. Directors, that does conclude members of the public that wanted to address you under that item. Chair sesay yes, thank you. Directors, the next item is the consent calendar. All matters listed are considered to be routine and will be acted upon by a single vote. There will be no separate discussion of the items unless a member of the board or the public requests. Im not aware of any members of the board that wish to have any items considered separately. You have an opportunity to speak that now. Seeing none, madame chair, you are just looking for move for approval. Second, tumlin. Chair sesay we have a motion and a second. Madame secretary, please take the roll. Thank you. Director haney . Motion to approve the consent calendar, oh, there he is. I think you said aye . Okay, thank you. Hursh aye. Lipkin aye. Tumlin aye. Gee aye. Sesay aye. The consent calendar is approved. We can go ahead and move into your next item. Which is item 10 my apologies, i have a text going on. Assuming im getting texts, messages and trying to read the agenda. Let me get back to the agenda. You can hear me, though, right . All right. Item 10, direct temperature is is approving the fiscal year, 20202021 operating budget in the amount of 22,425,369, fiscal year 2021 Capital Budget for phase 1, phase 2 and tenlt improvement in the amount of 90,626,061 and Debt Service Budget in the amount of 21,123,458. Let me get you the ball here in one moment. I just unmuted you. We can see your screen. Its that interesting display that we all there we go. Yeah. Toggle. There you go. Okay. So thank you, good morning. Id like to present you to the final operating debt and Capital Budgets for f. Y. 2021. Before i get into those, ill go through the time lines. These previously presented versions of the budgets in january, which was the preliminary operating budget, and the outlook in april for draft budget in may, weve had our bond sales in the month of june and today were presenting the final budget. Our bond sale has been integral into in this years budget and next years budget. With that, i want to report to you some of the results of the bond sale. Clearly, mark has told you a little bit about it and weve sent some information to you. But to recap we sold 271 million tax allocation bonds. They were rated with a minus and trip b plus lien. They are certified by the climate bonds initiative. This bond sale had unprecedented investor interest. We received over 360 orders in excess of 3. 5 billion. The Market Conditions were historic. They were on the day of pricing, they were lower than they had been in february and at the point which we sought approval for the bonds. [please stand by] [please stand by] authority. I give kudos to all the people involved in the process. It was a truly successful sale. When we came to you in march, we anticipated refinancing tifia and securing it with a net tax increment and we thought we were able to get 3. 5 Interest Rate. We were able to achieve all of those. We got an overall Interest Rate and the true interest cost less than what we anticipated. We achieved 640,000 average annual savings and a 14 n. P. D. Savings over the refunded bond. We were able to achieve our new money proceeds, 50 million for tenant improvement and tax exempt bonds. 35. 5 million for phase one Program Reserves, and 26. 5 million of taxable bonds with capital replacement reserve. Additionally, the city was successful in their bond sale and they sold 81 million in c. F. D. Special tax bonds that fully repaid the city financing, so our tax allocation bonds were not used for the city financing takeout because the city was successful in their bond sale. And all the bond proceeds are being allocated as approved by the board actions that we requested approval for in march. We folded all the bond proceeds into the budget as we had previously indicated. So ill move on to the final operating budget. So in terms of operations, our overall operating budget is riddled with reductions in revenue and expenses in relation to covid19 shelter in place orders. We have assumed there are occupancy delays for our retail tenants, and that our part will be passive through the end of the calendar year with hopefully having some enhanced programming or ramping up for programming come january 2021. The overall budget has a few additions in comparison to our current year budget. Weve added park Landscape Maintenance contracts, physical Security Systems contract, i. T. Software and hardware maintenance contracts, and capital replacement and repair dollars. As the Transit Center moves from a warranty phase, we have had to pick up maintenance contracts in order to help us maintain this facility. From may until june, weve done some revisions and added a few items. One of them would be the title iv requirement for additional signage, translation, and training for our staff here. Weve added a little bit of contingency since weve scaled the operations back significantly. And we were successful in getting a new property insurance carrier that has reduced our insurance, property insurance rate, by 722,000 from what we were projecting before. This slide represents kind of the overall operating budget, so from may to june we have increased the bottom line by 300,000. We were able to add back 300,000 in revenues, and weve programmed that in expenses also. In looking at the revenues, comparing from fiscal year 1920 to 2021, the most impacted revenues are retail leases, and were assuming the delayed occupancy and so as such that income from the leases will be delayed. We expect c. F. V. Reports down and regional measure two down by 11 and operator contributions to help offset those reductions increased by 26 . The revisions from may to june recognize an additional 300,000 in the rm2 allocation. This is a detailed look at all the different revenue lines showing from may to june that the only change was the 300,000 in rm2. We had been advised from m. T. C. To reduce our al activations by 40 previously and then were later advised to reduce our revenue projections by 30 , and so the difference between the 40 and 30 reduction yielded 300,000 more in rm2 dollars. In the consent calendar that has already been approved, the application for rm2 was in there, and it shows the 7. 4 million number as opposed to the 7. 1. For expenses, in order to balance to our reduced revenues, we scaled the operations back to very lean. Weve spread our administrative costs across the entire program between operations, tenant improvements, and phase two. We scaled back maintenance, janitorial, and utility costs based on diminished building usage and updating our using historical numbers as opposed to our initial projections before we went into operations. Weve also achieved some savings in scheduling of security. Weve changed the Park Management to a passive park for at least six months, and we have taken leasing commissions from the operational budget into the tenant improvement budget. We also added those maintenance contracts as i referred to before, and in between may and june, we had several revisions to utilize the savings that we achieved in insurance. We spread it amongst other lines where there wassane crease from the current year and held that contribution by 15,000. We have added contingency of 360,000. We increased security 240,000 and we pulled out Security Systems from the Asset Management line and made it a separate line so it could be tracked separately, and that was 560,000. We added a little bit back to maintenance and janitorial to support the additional cleaning efforts for covid. And our analysis and historical usage for utilities produced another 150,000 in savings. This slide here shows you the Transit Center operations line by line, and you can see the specific dollar amounts and how they move around and yield the 300,000 overall increase from may to june. Moving on to debt service, with the successful bond sale, we now have public have bonds to pay back beginning october, and so this budget reflects the net tax increment that we intend to receive and the principal and interest that would be due for our tax allocation bonds in addition with account servicing fees. Our overall debt payments for principal and interest are actually lower than the net tax increment. However, we have subordinate turbo bonds that are subject to mandatory redemption using all excessed alleged revenue which would be the net check increment. So that means all the net increment is pledged to the tax allegation bond, and the amount of revenue equals the amount of principal and interest and mandatory redemptions in any year between now and 2024 to 2025. Heres an abbreviated Debt Service Payment schedule that shows the different seriesover bonds without the turbo redemption. Moving on to the Capital Budgets. The cap l that budgets are phase one, phase two, and tenant improvements and the three combined total 90 million and i will go through each one of them individually. For phase one, our annual 2021 Capital Budget for phase one is 48. 9 million. The expenses are in two categories, professional and Specialized Services for 3. 3 and construction close out for 45. 6. And it includes transfer from fiscal reserve for 20. 7 million. This 20. 7 million fiscal reserve represents the amounts from last june to this from last years budget to this budget trying to account for all the shifts and projecting for 2021. This differs from the overall phase one programs as it is just a slice of one year and the expenses that we expect to make in this fiscal year. If we include direct administrative costs, legal services, project management, claims management, astute resolution, and most of all T Construction closeout. The payment to close out the construction as ron indicated the last 11 and finishing up the program. Phase two Capital Budget totals 11. 6 million, and in this budget we include tjpa administrative costs that includes new position to support the eoc and two new positions that project and along with tjpas current staff. We also have dollars for financial management, legal counsel, real estate valuation, for 1. 5 million, and engineering and Design Services 7. 5 and most of our budget is driven by our allocation of prop k, sales tax, and n. T. P. S that have been allocated to us, but weve programmed this budget to match the cash flows and the amount available through that funding. This budget also includes 3. 2 million from fiscal reserves and supports tjpa administration and some of the professional services. The third part of the Capital Budget is tenant improvement. For 2021, tenant improvement is 29. 9 million. It includes 2. 1 million for tjpa administrative costs and commissions, and then 3. 3 for soft costs, 2 for phased building, a little bit of contingency, continued payment of tenant allowances negotiated within each of the lease contracts, and then 13. 6 million in Construction Costs where the landlords work on tenant improvement. This includes a transfer from fiscal reserve in 13. 8 million to effect some of the additions that are included in the construction. Approving this 29. 9 million budget could increase the overall tenant improvement budget from 35. 4 million to 49. 5. This is a significant adjustment and will provide i will turn it over to dennis so he can provide more details as to how the tenant improvement budget shifts overall. Okay. Morning, directors. This is dennis tershawn, senior construction manager with the Transbay Join Powers Authority and i am going to complete the rest of the presentation for the budget talking about the tenant improvement. Id like to start with some of the historical items, specifically the strategy. Originally, the architects designed the original structure that had a strong food Court Concept for the mezzanine level and ground floor was going to be more of retail with very few food. They were contracted to provide these cold shell basic which is basically gives you basic utilities and function which allows for future tenants to dictate where the connections go. That is what was the strategy back in 2008. And then the asset manager was brought aboard in 2017 with Lincoln Properties and the team member colliers, the retail environment had changed significantly in the 10 year, especially around our neighborhood downtown. Market demand shifted to much smaller units and more ground level restaurants as opposed to the food court on the second floor. That was changed, so that strategy switch required a lot more walls to make smaller units on the ground level. Additional utilities and supply lines that would allow for the Additional Units with extensive kitchens and exhaust pathway at the ground level where it was initially set up for the mezzanine level which is now fitness sf the second food court was deemed not as profitable, and that is why the shift in the strategy. In 2017, a budget was determined and there were some underestimations of that particular scope and i can go through those as we go on through these slides. And in 2017 and there was a Budget Approved for 35. 5 million and that included base Building Improvements and specific allowances for the fee for l. P. C. And cross profits and set up to build up to that particular number. And it will transition into the cost drivers and these are not all of the 13. 8 million in the Program Reserve or fiscal reserve change and we are going to highlight the major changes. There is from kitchen exhaust and the louvers and utilities and retail Common Base Area and opportunities and essentially together in that related to ground level and kitchen exhaust for a type i kitchen. As we go to the next area and cleaning and cleaning or scrubbing that exhaust from the kitchen restocked. And so we have different ways to handle this and a central unit and a direct unit out to the sidewalk. The way the building is set up and there are on the west side of the alley there is a cluster of eastern side and shaw alley and 1st street. And shaft a and shaft b. These clusters originally designed by pelley to have everything go up the shafts and go out. They can use two different scrubber strategies. The main one, though, is like a main scrubber room at the bottom right and the upper left shows a direct exhaust out to the sidewalk that has an ozone type of cleaning that does it direct and doesnt go up either one of the shafts a or b. And we have to manage time on the schedule and we have a contract we put out to bid and we have an apparent low bidder for this particular kitchen exhaust work, and they are awaiting award based on todays court action on the budget. Included with this any of the exhaust that is vented straight to the sidewalk and also some louvers that need to be modified where there is glass panel today. So those are the first two items. If we go back to the next slide and that covers the next items and the significant portion being the kitchen exhaust completion taking it from a cold show and connecting it to the tenants design. There are over six or seven different restaurants identified and hooking up to this kitchen exhaust system. Along the same element is the utility reallocation. A lot of our gas lines were directed to the second floor where the food court was original to be determined and now these gas lines have to be redirected into different units. Also electrical and waste and water supply. And now that there are more units, then you have to have some additional work that wasnt originally contemplated as well from the original budget. And the combination of the splitting of units and smaller units and reallocation to different needs is the utility reallocation similar to the kitchen exhaust and we have also put that one out for bid and the market has spoken on both of the contracts. We have a low apparent bidder in team works that is awaiting award pending todays board action on the budget as well. So we have been able to get the market rate on both of these scopes, and to get the best value that we can on these items. Tjpa offerses which is the next line item, there was an increase there. And it was deemed to perform the function of the tjpa offices and some additional work was needed. And contemporaneously at the time and it appears to be savings and some of that and some of the savings was put into the offices to make them as they are today. And in conjunction with the retail common area and it was not originally contemplated in the new lpca work. And that is a build out of some of the potentially lobby areas. And get off near the tjpa officers and to allow for future rental revenue and has been identified and lastly on the expenditures and the base building modifications and there are well over 55 various different Small Projects from flash and beacon work and bus ramps and additional devices required for mail Room Security to modification to ensure a. D. A. Standards were implemented as part of the base building modification. Over the last couple of years we also have tried to identify as many positives or opportunities where clustering retail slabs as opposed to doing them individually per unit saved a significant amount of money and purchasing in bulk heat pumps as opposed to individual purchases was a savings that added up to 10. 6 million of the additions is covered by this particular cost driver slide. As we go to the next slide, really with those identified cost drivers and also the importance of implementing this and the staff recommends that the board thordzs authorized the fiscal reserve shift and for the fiscal budget approval. And with the Asset Management and part of the exhaust and utility contracts and with the current retail strategy. And to summarize the next slide and the tenant budget improvement and 35. 5 million and following the same line items and now we have broke down the changes that include contingency and so we only do this once and allows for 49. 54 for tenant improvement. And unless erin has anything else to add, and that completes the budget presentation unless there are other questions. A thank you for your presentation. I will turn it over to my fellow Board Members. Do you have any questions on this item . Director tumlin. Go back to slide 29. Try to understand some of the details here. If you can go back and share again. There we go. It is not up yet, just so you know. Do you see it . No. Also, i believe the same part on page 10 and the staff report. Let me take a look at those. Are you able to share . I think it was slide 29. And for all of us in the public offers are trending our expenditures except for things that are necessary to get us through the crisis and through the commitments that we have made to our customers. So i am assuming that the first three lines with the louvers and the kitchen graft completions and that is all all of those three line items are necessary to fulfill commitments that we have made to tenants who are continuing to invest in space improvements. That is correct. And this is necessary work to allow the restaurants that we have tenancy with. And if we didnt do that, we would be in violation of the agreement. Correct. Say more about 2. 1 million and office and why is that expenditure necessary . That was the offices were completed with the retail and the demising walls and the opportunity that is shown below and in order to complete the tjpa offices, additional work was necessary, but at the time 2. 6 million was identified as a savings and that savings was utilized as part of the tjpa offerses to complete them as they were built today with the offices and we kept it as lean as we possibly could operating on the second floor today. And this is additional 2. 1 million and understand the essential function and 2. 1 million serves in this budget crisis. And there is actually 1 million additional and this was the 2. 1 million is what it took to build the entire tjpa offices on the second floor. Director tumlin, this shows the whole picture from day one and money that has already been extended and money that will show the board the whole picture. And so you have a wholistic look at it. What is the budget request that is going into this next budget . Basically the first three items and the exhaust system and the louvers, and the utility relocation allocation. And these three items will be in the Transit Center and this is what we have executed and the 20 lease and the spaces that we want to release as well. We need to bring in utilities to the places as well. I understand that and not understanding why tjpa and the base center are being included in this up coming fiscal year budget and that includes and what this shows is what is extended to date and what we want to extend. And the tjpa offices and to be completed and to use the whole picture and not just a slice of it. That is why we showed the chart. I see. I misunderstood that then. Can you tell us what you are asking for in the upcoming fiscal year budget and how it relates to this chart . Yes. Maybe we can go down to the last slide. Would that help us explain . And which one and see which expenditure and this next fiscal year. And the cost driver would be the best and that one and director tumlin, may are referencing the first three line items and are without the contingency as well. When you take in those add up to about 9 million and when you add in the fees and contingency and the salaries now in the last slight and pass down a couple of slides down to the comparison and the tjpa administration and commissioning and this is a new change that now the salaries and benefits and leasing were commissioned in other areas and add to the overall tenant improvement under phase i budget and now the overall tenant budget improvement and then the slide is only a portion of that fiscal budget. And having a hard time understanding what of these two slides are being requested for the fiscal budget. And relate to the budget request. I believe that is slide 25. In the staff report and there are excel spread sheets or attachments and probably better answer your question and i will try to share it so that we can all see it at the same time. If i do happen to have that slide up, and let me see if i can get it. See if this will work. I will try to move this out of the way so then we can see this presents the difference and this breaks down and the budget itself and you probably can speak to this. And the next column and we spent 19 million and 19. 5 million and with the tentative improvement allowance and lon n landlords and what is left is 15. 9 and in order to complete the full retail plan and we need to add 13. 8 million. And to the fy2021 and add up the remaining budget and end with the overall tenant improvement. Is that what you are looking to see . This is now making more sense. However, the expenditure line items dont track with previous slide 29. And my question is simply looking at are there savings to be achieved without retail commitment in terms of ongoing commitments to the building . And the rising walls and already eaten up and there are opportunities for the spaces and the remaining spaces that havent been leased. We could clearly look at what options there are for not completing those remaining spaces. If they are not completed, the condition they are in renders them unleasable. Director tumlin, we have 20 of the retail spaces and put that on pause and we would not we take them off the market for leasing and we dont pay land over improvements for them and saver on that and with the utility allocation to them and we dont do reconstruction to them and that work is difficult to do in the future. Once you are built out, it is hard to go through walls and we have allowances set aside for the 20 and we have released that landlord work that we could defer, but that would be a deferrable investment in the Transit Center. This is all much clearer to me now. Thank you. Im sorry for the confusion. We should have done a better job of doing that. Awe thank you, director tumlin. Any other members of the board wishing to speak or ask questions on this item . Director litkin. And then director hirsch. Thank you for the presentation and i have a few questions. First i want to say on the on sale congratulations and great job and great achievement and the wonderful outcome and we were all hoping for and excellent work. And one small followup on director tumlins question to make sure i have this clear in my head, are we effectively being asked to transfer funds from the fiscal reserve to the tenant improvement budget and sort of as action one and as action two, approve the kitchen exhaust work on authorized contract and are those the two things we are doing today with this . Yes. And subsequently approving the overall tenant improvement budget. I think maybe for me it would be with the same bump and get the fiscal budget transfer and i think it would be better and this is Going Forward than on this item and not along with the approval of the kitchen exhaust and equivalent type actions in with the budget. And a lot of justification for why the bid is better and all those kind of things that are valuable things and probably should have been a separate item on the board of agenda and approve the actions separately. And that is, i think, more. Next time. I get what we are doing and clear in my head. And the second question and we are looking at the vacancies and a couple of different charts and talking to page eight and another mention about the positions for phase two and toward the bottom and kind of a few things coming to me. And in terms of budgeting and we are budgeting and vacant as school year positions, is that correct . And are we planning to have those available . Budget and full year and salary and knowing that there is delays in filling them and the ultimate result would be clearly not on boarding people july 1. And i would like to better understand to fill the vacancies and the timeline because once you had it up, and it is not an insignificant percentage of vacant staff and so i think there is budget implications as well as agency function implications to not having this for a while. And we are about to have another big vacancy in another couple of months and nervous about doing the things they need to do. Is there a plan how to fill the positions . The ones that are related to phase two are kind of moving along with the eoc and the funding that is available to kind of help navigate those. The ones that are more operational are tjpa administration. We have had a couple of the jobs posted on our website and actively recruiting for them and the market is Getting Better and lots of individuals who are looking for work. So we have gone through a couple of interviews and we havent settle and any one. The accounting and finance positions were actively trying to fill before december of this year. Okay. And one of the other positions was the facility director and clearly that is filled. And then there is the engineering ones that are just phase two. Director litkin, on phase two, we wanted to wait to first recruit the present director and then have the project director look at filling the position that he or she needs based on the peer review as well as the peer review and apta recommended to strengthen the in house staff for phase two and and when these positions and by what level of experience to be on the safe side and budgeted for the full year and recognize it to be at best half the year. And headed to the phase two and the general budget and approach and definitely interested and the peer review recommendations and really good things there and definitely looking at as part of the organization set up. And i guess i would like to get an update t a whatever point and talking about the quarterly update on budgets in general and maybe including vacancy report in terms of how we are doing and at least advertised or middle of the recruitment. That is it for me. Thank you. Thank you, director litkin. Director hirsch. Thank you very much. I am going to support this item and the same concern with director tumlin and has morphed into Something Different for my concern. We approved 1 million for improvements and staff has spent 2. 1 million. I have a problem in adopting a budget with a line item of 1 million that gets spent 100 more and am i missing something . Director hirsch, let me clarify this. I guess this graph confuses many. We included the wholistic picture. The board approved 35. 5 million for tenant improvement and with 3 million contingency and to improve outdoors and at the tjpa offices and as long as the committee to be able to meet there and built the initial office on that site and rearranged some of the interior of the offices to accommodate our staff and replenished back into the contingency on the top slab. And as businesses were made and were available and from the decisions and ran into the issue with the exhaust system and the allocation costs. All right. I just want us to watch authorized budget versus spending. Going forward i think there needs to be more visibility. This probably would not have gotten focus if we werent in the pandemic and economic collapse and if there are discretionary item, i would ask us to be very vigilant and we need to tighten our belts and Office Improvements dont look good. I will support the item and thank you for letting me make comments. I fully understand. I want to make sure that gets corrected in the future. Any other thank you, director hirsch. Any other directors wishing to speak on this item . Thank you, chair. A couple of comments. Number one, congratulations on the bond sales. You can begin to achieve that every time, that would be fantastic. The next time you go out for sales, the Interest Rate will be even lower. So congratulations. Also want to thank our partners in working with erin on the budget because the Partner Agencies are contributing significantly in this budget time and difficulties are not unique to any one agency. Thank you to the Business Partners on this. And my next series of questions relate to the capital side first and then to the budget side. And following up on leasing activities and i understand the premise 10 years ago and in terms of where you are first and john to chip in later to the extent we are investing in the kitchen exhaust systems with the smaller tenants on the first floor. Is there any risk to that investment given the ongoing shelter in place . Is there a potential that we improve and the leases dont come to fruition because of the ongoing shelter in place . I will start with that. And i am sure john can come and fill in because we has been working with the tenant owners directly now. And remembering that we will take time to build out this and take at least eight months and projecting until january of 2021 to complete the kitchen exhaust and starts putting us into a potentially different scenario where we are today. We dont know where it will be by january and the tenant completes the work as john had mentioned and is a q2 opening for the tenants, and as john had mentioned, they seem strong with that and at this point there is nobody wavering and on those particular tenants and that i think buying time to still have to do the work is probably a big advantage to us and know where the market will be next year. Thank you, dennis. Yes. I can add to dennis comments and that was one of the reasons that i wanted to have one on one discussions with as soon as possible to make sure they are still engaged and anxious to move forward and understand what challenges they think they have when we talk about the covid leasing strategy and get into that issue and to what we feel confident that these improvements proposed before you today and facilitate the eagerness of the tenants to get in with the operation with the return of the market. John, if you could add clarification with that analysis. And to conclude that it is very important for directors to understand the release we have brought to the board and have shared with the present value and the directtors and that would be great. That is direct, mark. We look at net present value and net cash for each individual unit as well as wholistic basis and all the effected units from shaft a and shaft b improvements to make sure that we were still positive. As net present value declined slightly and not surprisingly and we have added capital cost. And what we found is each space still performs financially. And we want to be sure that was the case before we took this next step. We did that before i started the discussions with the tenants. It was important to do economic analysis. My summary is that the risk is low based on your conversations and the investment and the tenants bullish on the market and this risk is very row low to the agency. Yes f i am allowed to caveat that with assuming we dont have a second, third, and fourth wave, yes. Your crystal ball is as good as the rest of ours. Thank you for that. Erin, i believe this is a similar question i asked at budget time and the revenue side and episodic of how they come into the agency and from the cash flow standpoint the reserves are adequate and to handle areas of costume and the revenues dont come in and all come in at one time. And as they come into the agency for revenue. The allegations of rm2 arent made available immediately. As greatly assists with the cash and with the resources with the cushion and cash capital to bridge any gaps after the rm2 allegations are made available. And the leasing uses from the operations quarterly and with those three different cash flows, were able to manage on a month to month basis. Very good. And for business we would have a line of credit. We dont have that here at pjpa but always with the multiple sources and cash flow can be the issue when they are anticipated to. Thank you for taking a look at that. Thank you, vice chair. I want to follow up and piggy back on that and extend my thanks and gratitude and with the presentation and in terms of the reserves, you outlined the way the budget is presented and operating that capital and t. I. And to stay separate and more specific to the type of budget and in that notice the draw from the Program Reserve and separate from the reserve and operating needs. And curious about the aggregate of 37. 4 million and the balance and approving from the fiscal reserves and curious after the draw of the reserves and to see what is the balance. The staff report at the attachment one, two, three, four. And there is a line and sorry i dont have it pulled up for you to reference. There is a line for the fiscal balance and the budget capital and various Capital Budget. For phase one, and would be 5. 5 million and not including the deductives and callbacks and that ron referred to. Or phase two. The reserve balance would be 32. 2 million and for phase one the balance would be 1. 1 million. Thank you. Sorry, i dont know what that is. So to quick followup, and i appreciate that and will be helpful in the future and the reserves in one place. It makes it easy for us to track and i was challenged and understanding with that balance and so thank you for that. And i did also notice in the Capital Budget the change from the may action item and substantial particularly for phase one. And wondering if something materially changed and just trying to look at them and for example, the phase one of 21 million according to the staff report and phase two and showed 9 million and can you clarify the increase of the change. And the main presentation easier to explain. And phase two and truly excited about moving forward with the d. T. X. And little overexcited in our estimations in the may draft. And then once we received the allegation and the n. T. P. S from the t. A. , we scaled it back to match the cash flows that were approved with the n. T. P. S and the allocations. So while were super excited to get forward and get moving, there is no possible way and spend that amount of money in six to 12 months and with all the phasing and deliverables and the timing that was associated with the prop k allocation. That easily explains phase two. And phase one and fiscal year budget and phase two budget compared to the overall budget and approving expenses in a 12month period and ability to make payments out in a 12month period. Some of the contracts and em cum encumbrances have been made and if we closed out the 11 tray packages and extending dollars that were already encumbered and from the Program Reserve if we imagine that phase one is going to be closed out and is in construction and construction closeout is what it would take for the remaining packages and the new dollars that were encumbered and looking at in it a slice as opposed to looking at the whole. And that is helpful. And this is my safe space and impressive and 3. 2 million and the timing and everybody wants to be a part of the project. And historically and i am glad they were able to participate in numbers that resulted in a low borrowing cost for us and is just a relief. And come with Strings Attached and to the response and the project with the financing team. No other Board Members wishing to speak on this item, i will turn it over to madam chair. Do we have members of the public . Thank you, madam chair. We have a couple of members of the public in the queue and not indicated they wish to speak on this item as of yet, press star 3 if they want to speak on this item. We will give them a moment or so to indicate whether or not they wish to speak on this item. And seeing no hands raised and have any members of the public that want to comment on this item. And close Public Comment on this item. I will move the item and the second and director hirsch. Thank you for the second. And please call the roll. [calling of the roll] and i can see you. And say aye as well. And madam chair, that is six ayes and item 10 is approved. Call the next item. Item 11, directors, is authorizing the executive director of the agreement for fiscal Security Maintenance Services with g4s for an amount not to exceed 1,050,000 for a threeyear term and the chief Security Officer will prevent this item. Good morning, directors. Rodney harris, chief Security Officer. Just a moment, rodney. Trying to get this down to you. Mark, can you give it down to rodney . I gave it to you because the screen is not large enough to see all the participants. I will keep moving it down to get down to you, rodney. Here we go. You should have it there. Thank you. Again. Good morning, directors. Rodney harris, chief Security Officer and i will be presented item 11 and physical Security Systems and maintenance. And background and issued the security for systems maintenance on february 11 and february 18 and two proposals by april 7 deadline. The Selection Committee entailed on written proposals. And equal to the 16th. And this slide represents tjpa physical Security Systems and the quick overview of them. And let us start with the subsystems first. And controls where they can enter and exist and based upon a cardholder and access privilege. The refuge phones are located in the stairwells and respondents to assist individuals who cannot evacuate and require additional assistance. These phones are to dial the Security Operational Center and directly when the button is pushed. And enables to send out notification to individuals or groups. And this is a comprehensive note that keeps everyone informed before, during and after all events whether its emergencies or nonemergency such as alert sf which is same platform and used by the city and county of San Francisco. Our video Management System collects video from our deployed cameras and records and stores video to the Network Video recorders and provides useers and interface to both view the live video and to access the recorded video. Our energy call box intercoms are found in heavily pedestrian areas within the Transit Center and these emergency call boxes are twoway speakerphones that are also a program to dial the Security Operations center and the emergency call box intercom systems are no different than what you see on a college campus. And the Emergency Communication Center correction, the emergency communication system, i apologize s the facility based system and like ever bridge, however, it delivers critical moments across multiple channels to insure immediate and comprehensive communication. For example, here at the Transit Center we have over 200 individualitial displays that explains digital content, i. E. , bus schedules and advertisement and the operators from the Security Operations center and activate with the Digital Displays and to warn the public to shelter in place and this system is the first system of its kind to ever be approved by the San Francisco fire department. The last system to speak about is our physical security Management System. And provides the operators with realtime Situational Awareness and common operating and the operator cans retrieve information, i. E. , video and retreat and Access Control history from the security Access Control and trigger alerts to the sub systems directly from the pso. And monitor activities and bring incident to resolution. The scope of work and life Management Systems speaking about. And requires applications overall system and address performance and document results and system testing requires the technician to go out in the field and verify that the devices that are operating and if not operating, then address the issues and document the results and report the findings. Server and System Health checks and verify the automated backups from the systems that have taken place before annual backups and move to separate storage and safekeeping and done on a weekly basis. While both firms are well qualified, the most effective. The contract negotiations and increase the annual budget by 75,000 to account for the fixed cost of licensing fees and the various Security Systems and tjpa is unable to source from the manufacturers. It brought the total budget to 164,000. And the board authorized the executive director to execute a professional Service Agreement with g4s secured llc for a threeyear term in an amount not to exceed 1,050,000. I will be happy to answer any questions. Thank you for your presentation. Do i have any member of the board wishing to speak on this item . I will ask questions of rodney. Madam chair, i dont see members of the board that have raised their hand. They have an opportunity and now well do we have any members of the public wishing to speak on the item . Members of the public are dialled in and have not indicated they wish to speak on this particular item. They have an opportunity to do so now and press star 3 if they wish to comment. Give them a few minutes because of the delay and see what happens. A little bit of a hidden jewel there. Hear nothing members of the public wishing to speak on this item, i will close Public Comment. So there you go. And director hirsch, please talk the roll. And director lipkin. Director tumlin. And say aye as well. And item 11 is approved. Call the next item. Directors, next item, item 12 is adopting a retail and or commercial leasing strategy and authorize the tjpa staff to negotiate certain amendments and with the tjpa and john updyke will present this item. And let me go over to john. Good morning. Still morning. Almost afternoon. So this will be a fast presentation and we had 108 since the initial shelter in place order was issued. And this is impacted some tenants quite dramatically and others less so. So with the the Mitigation Strategy seems like the next best step. This proposal before you today would provide needed direction and warranted and justified and return those to the package and for final consideration and approval. The key considerations of the strategy and develop the strategy and Public Interest in the forefront. And strong, longterm and protecting the Financial Health of the tjpa and have vibrant space activation and providing appropriate services that we serve. The neighbors and visitors and the commuters. The strategy is aligned with that and with what we anticipate seeing from other agencies in the area. And quite frankly a partnership with our tenants. The key elements of the strategy allow us to entertain rent relief packages and those might involved full rent deferral or abatements during certain periods of time or partial rent deferral or abatements. We will explore adjustments to the term and the lease as a possible accommodation for missed rent payments to address milestone delays and is clearly tied to the pandemic to facilitate the reopenings and the additional use of the outdoor space and beyond that and in the fashion for the shared Spaces Program. And to be eligible for some element of relief, the tenant must demonstrate clearer impacts from covid19 and the associated health orders. And the individual basis and that would include Financial Resources with the scope and span of operations and to secure alternative funding sources. And upon resumption and mitigating factors from applicable order and best industry practice and Market Conditions that restricts in some way the operations and thus the revenue flow. So as i mentioned earlier, we negotiate these packages on a case by case basis and develop the transactional documents that would be required if its deemed warranted and turn to the board and likely in the august meeting with the package of recommended amendments for consideration. And of course, clarity around any fiscal impacts and the package and i will say that this strategy was already in development as the the budget was being developed and worked closely to ensure we dont have large surprises relative to the packages that come forward in alignment with the budget. And in terms of the expectations. And some of that is also informed by the conversations they have had with tenants and getting a sense of what the request might be. And i am happy to answer any questions that you might have and appreciate the support and thank you for that presentation. Do we have any questions . Okay. Director hirsch and director haney so far. I think you answered my questions and initially had heartburn to propose to approve this with the amendment and the permanent rent reduction and in the slide you say you are going to put together the package and come back to board approval and not granting you any authority to execute and approving the philosophy and come back to us. Is that correct . We want to be sure you felt the tenants of the strategy and made sense and that gives us the parameters and director harris and request to proceed and that the board is in concurrence with us discussing relief with the tenants. We want to surprise the board by bringing back the negotiated lease and that we have been negotiating. This is just to get some input from you and get your authority to allow us to engage with the tenants for possible relief opportunities. And and i did the same thing with the board of a. C. Transit and encourage us a to not negotiate and to do permanent and work back for improvement. Director haney, i thought i saw you. And he had a question. Okay. I strongly support this approach and talk about the outdoor spaces and have there been particular tenants who have inquired about that and what are some of the opportunities that we might have with outdoor spaces . I think thats exciting thing that we should really be pursuing and making available to the greatest extent possible. Right. So a couple of those options i will talk about and give you an example and fitness sf and opportunities to do things outside and cannot go inside. And having those conversations and that is not start and with the directors with the perimeters and to expand that opportunity. And that can be another item in the tool box to offer tenants. And director lipkin, i dont see this sign. Thanks for the presentation, john. I think it makes sense. Obviously given the current circumstance, everyone is being affect and we need to do what we can to keep the retail Leasing Program strong and appreciate you will be coming back to us for the actual modifications to make. And as you come back, what i am seeing over the course of todays meeting is we are getting hits in a few different places on the retail Leasing Program which is not surprising and make accommodations here and the base Building Improvements and increased in costs and delays with the leases and having improvements and i wonder to come back for modifications and a full update on the status and health of the retail Lease Program and i think we certainly got what felt at the time were relatively favorable leases and proforma and since then have had to do it in chunks. And i dont know if the last prior of, hey, were doing pretty good is accurate or if we have started to trend into were not as good as we thought. And packages and the approval of the budget and package the predecessor and defined more clearly to schedule and defines with the first months rent for a number of tenants and a lot more information when we return. Thanks for input on that. Thank you, director. Director tumlin . From an sfmta perspective, i would encourage you to think creatively about this pace space. And i would like to direct you to the San Francisco shared Space Application Program where were inviting commercial businesses and creatively used in the street space. And as of yesterday and with 211 shared space permits and now processing full street use permits. And from the entire street. And thank you. And yes, we have been paying attention to the shared Spaces Program and terrific, intuitive website. And very swift approval process and that is something to do here. And with the presentations and i am in support of this item. And did that device did you want to speak . Sorry. I, too, am in support of this item. And appreciate that and to explore the various possibilities of deferral or delay and then allowing the use of spared space of the rooftop and be happy to support this item and i like the fact that you are coming back and getting to have conversations at a time like this was needed to be able to show that the tjpa is a good partner with space and from this item. With that, if there are no other Board Members wishing to speak on this item, i will ask madam secretary, do you have any members of the public . And like to speak on this item. Thank you. We do not have any members that have yet indicated they wish to speak on this item. The few callers dialled in, press star 3 if you are interested in commenting on this item. Give them a few moments to the side effect they wish to do. I understand there is about a 20second delay and i didnt actually countdown, though. And nothing and good point and dont have any members of the public to comment and close Public Comment and i do have a motion for the item . Second. And i have a motion and a second. Madam secretary, can you please take the roll . [roll call vote] six aye, and item 12 is approved. Call the next item. Yes please. Directors, the next item item 13 is the San Francisco peninsula rail Program Update and executive director will present this item. Thank you. I will upload and see here. While mark is uploading, we will remind member of the pub flick they wish to comment on this item, press star 3 and get their hand raised and ready for the conclusion and getting tight on time and we have a hard stop coming. I need to leave, but will try to eavesdrop from a phone as i am walking and the executive directors update. Everyone be well. Thank you. Thank you, vice chair. This will be a quick update just loading up. It is still loading even though it is only five, six slides. All right. There it goes. It looks like we might be having technical difficulties with mark. Mark, can you still hear us . Your screen is sharing but has that awful triangle with the exclamation point in it which is like the circle of death. Step out for a second. He is actually having technical difficulties. I am trying to see if he can go over to the screen up and he has been kicked out. The screen is black just so you know. And i can actually see it. And looks like he is starting to get and story, directors. I am using another computer now. I happen of the oldest computer in the office and the quick update on the progress for the peninsula San Francisco real program. And the high level status and the future chair and the existing committee and once it is formed and likely october and not october and the august Board Meeting. And i will move this. Did you put this up on your screen . Do you see it . I think this might be marks screen and go on and unshare marks screen. And i dont know if this is in the future and actually consider having the power point in advance or even on the website so that we can continue on while you go to the next slide. That would be helpful. Thank you. Mark, maybe you can give her the update verbally and lets do that. And one minute to do that easily and has basically do that to stop moving and give you a quick update. And the executive Steering Committee and signed the m. O. U. June 5 and get the Steering Committee meeting on the third friday of every month and at 11 00. This would be monthly meetings. As i mentioned in the executive directors report and the meeting open to the public and notice, conducted and in accordance with the brown act and similar to how is the Cost Review Committee and posting the meetings on our website and asking our partners to post the meeting times and dates on their website as well. The executive Steering Committee with the the first report to the board in august. They have been working to lay the ground work. And the Community Members as a reminder and the agencies are tc and the mayor office and the alternate for me. And then for the new term focused on items and basically most of the items we covered in the First ExecutiveSteering Committee meeting and a chair and vice chair election. And provide the project recruitment update and do that right now. And were working with the integrated Management Team and the project description. And we received input from our partners from the project description. And we also shared the project director description in the process and start with the recruitment process. The executive Steering Committee is expected to take between 3 to 6 months and the executive Steering Committee will probably go to the tjpa board and awe appointment of an interum project director at the august Board Meeting. And to draft a request for proposal and receive input from the partners to release the request proposal and give the industry eight weeks to respond in september. And give the industry ample chance to put proposals together. And cast a wide net for the most interest and best qualified. We expect to bring the procurement to the board for conversation in the november time frame. That work will include the Engineering Work we need moving forward. The executive Steering Committee and integrated Program Management meeting folks will be working on developing the work planner to road map and that progress would be shared hopefully at the august Board Meeting when the executive Steering Committee presents that to the board. And also be working as director gi requested on some kind of a study session for the Board Members and as i reported in the report to include area 2015 and to recommend in the considered category and for us to be able to see additional funding and so to work with s sfmta with the extension in the downtown area and to make sure that once this is included, it is included in the first period so not the second period. And the next area to deliver the project to the public. We will be working with the opportunities to do that and will be presented to the tjpa board. This concludes my presentation. Sorry, directors, i was not able to share with you the power point, but i will be happy to take any questions. Thank you, director. Do we have any members of the board wishing to speak on this item . With that, madam secretary, do we have any member of the public . We have money member and there is no excuse for this not to be on the website. I have been looking for three days and it is still not there. The other comment respectfully is the board prompting signing a lead agency with this project to m. T. C. And the reason i am asking for this is i have been working on this project for 10 years and the eir never took it is not worth the paper it is written on. Roland . Yes. Can you hear me . Yes, we can hear you now. Great. So this has to take priority and there will be a map that front of you and right now every side is open on the transbay side and that is open properly and this is the one so the sooner you get the independent oversite and actually, i am the one that spoke and told m. T. C. To be involved and what is going on is not compatible with what is going on there and all the stations have to be compatible with each other. So to have them taking over and the lead agency. Thank you. That concludes the members of the public who indicated they wanted to comment on that item. The other callers have not raised their hand to speak to you on that item, madam chair. That concludes members of the public that want to address you and concludes the agenda today as well. Thank you. Is the meeting adjourned . As you call it, maam. Thank you, guys. Thank you. We broke ground in december of last year. We broke ground the day after sandy hook connecticut and had a moment of silence here. Its really great to see the silence that we experienced then and weve experienced over the years in this playground is now filled with these voices. 321, okay. [ applause ] the park was kind of bleak. It was scary and over grown. We started to help maclaren park when we found there wasnt any money in the bond for this park maclaren. We spent time for funding. It was expensive to raise money for this and there were a lot of delays. A lot of it was just the mural, the sprinklers and we didnt have any grass. It was that bad. We worked on sprinkler heads and grass and we fixed everything. We worked hard collecting everything. We had about 400 group members. Every a little bit helped and now the park is busy all week. There is people with kids using the park and using strollers and now its safer by utilizing it. Maclaren park being the largest second park one of the best kept secrets. Whats exciting about this activation in particular is that its the first of many. Its also representation of our city coming together but not only on the bureaucratic side of things. But also our neighbors, neighbors helped this happen. We are thrilled that today we are seeing the fruition of all that work in this citys open space. When we got involved with this park there was a broken swing set and half of for me, one thing i really like to point out to other groups is that when you are competing for funding in a hole on the ground, you need to articulate what you need for your park. I always point as this sight as a model for other communities. I hope we continue to work on the other empty pits that are here. There are still a lot of areas that need help at maclaren park. We hope grants and money will be available to continue to improve this park to make it shine. Its a really hidden jewel. A lot of people dont know its here. Good morning, everyone. The meeting will come to order, welcome to the june 29, 2020, meeting. Im supervisor hillary ronen, chair of the committee. And with me is vicechair, Catherine Stefani and supervisor gordon mar. And our clerk today is victor young and id like to thank sfgovtv terror staffin for stas meeting. Mr. Clerk, do you have any announcements . Clerk the board of supervisors legislative chamber and Committee Room are closed. However, members are participating in the meeting today remotely. Each member will attend through Video Conference and participate in the meeting to the same extent as if they were physically present. Public comment will be available on each item on the agenda. 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