Beale metcalf aye vice chair harper and kim aye as well and item 9 is approved. Thank you item number 10. Debt management policy. Directors, as i eluded to in the previous item were negotiation an interim financing and a competitive rfp process within the last couple of months and we received nine proposals in our interim financing and were negotiating a direct loan with gold man sachs and the Interest Rates are very low right now so a variable rate loan structure may make the most sense but also may make sense to hedge against the risk of rising Interest Rates. However under the dodd frank act, Trading Commission regulation we can not have discussions of any sort regarding hedging without having policies in place that allow us to sign a safe harbor letter for gold man sachs this was drafted with the assistance of council and we do have a representation written representation from our Financial Advisor its not like the citys policy which is 24 pages long and goes into types of bonds an
We asked the bidders not part of your bid but for this particular scope would you also have a deduct and this has been one of the other components of that. And in this particular case the bid that we received from shim mick was a credit and with that value we felt it was very appropriate to take that value engineering at that point with that deduct ive alternative so before i leave the slide ill bring you back to the upper left. That ve proposal scope was to give you an if you are on the cable stray bridge you got the pylon in the middle you have got the various cables that go into the main pylon. For design it basically attaches the cables on either side attach right into the pylon itself what shimmick proposed was to put a saddle system that would go through we went through the seismic safety analysis of that and the engineer of record went through this and we were able to accept that one so that was the 500 thousand and the deductive alternative the accent lighting for 450 thousand
That deduct ive alternative so before i leave the slide ill bring you back to the upper left. That ve proposal scope was to give you an if you are on the cable stray bridge you got the pylon in the middle you have got the various cables that go into the main pylon. For design it basically attaches the cables on either side attach right into the pylon itself what shimmick proposed was to put a saddle system that would go through we went through the seismic safety analysis of that and the engineer of record went through this and we were able to accept that one so that was the 500 thousand and the deductive alternative the accent lighting for 450 thousand so now this is how we get to the proposed award number. We accepted the deduct alternative of the accent lighting thats how you get to the award number. As part of our analysis we looked at why the number was above the estimate and initial engineers estimates the cable stray is a unique structure its a pylon structure requires specialize
At the time of contract preparation so thats in addition to the final budget that you will see and were also working with our partners at the sfcpa to keep the downtown extension Engineering Team under contract for on call work they are continuing to support the supplemental and environmental working with high speed rail and cal train so has agreed to accelerate and specifically as well you will see 360 thousand in the to be identified revenue section and thats related to an estimate for work on the part of par sons Engineering Team to work with the city on the rail yard and i 280 boulevard study and strategizing with us as to Funding Sources and at this time that appears in the revenue to be identified section. Just backing up a little bit as you all remember, we are a very lien staff so this is largely a consultant and construction budget nearly 98 percent of the budget is for professional and Specialized Services of that nearly 90 percent is for construction and Construction Managem
With a hawkish Federal Reserve pushing higher interest rates to fight inflation, the design market could be a canary in a coal mine for what some economists say will be a “mild” recession later this year.