Transcripts For SFGTV 20130215

To support glass and to make it safe from a bomb threat or a seismic theft. We are recommending lets go with a metal skin and that reduces the risk and vunerbility costs and that is at least the 7 and a half line item. Never mind the cost of the glass because it is custom made and it also would reduce our Construction Costs because the glass alone, the productivity rates will really quite high and the construction schedule any longer but if you just go to the perferated metal skin it is less expensive. We have been doing our due diligence, we dont have the money to pay for a third reviewer. It is very expensive, it was done by the u. S. Security team and done by dbs and a whole slew of other consultants. We dont have the funding to bring in yet a third reviewer, but what we can do is we can be presented this to our Funding Partners and to the fra and the fta and happy to bring you any comments that they may have. We have many Third Party Reviewers looking at this at the request of the Fire Department for example. As the director mentioned we brought this number down and just to give you a perspective. We were upwards in security and other costs and we are down to 164. 5. And the rva item is down from 64 million to 56 million that is what the recommendation of going to a metal skin. We went from the gt ceiling making it metal ceiling making it safer and we recommend going to a glass skin to a metal skin which will be lovely as well and we will show you the rendering. We have just about cut as much as we could possibly cut but do think that it is important to present the information that kim requested and we will do that at the next meeting. We are also, i want to Director Director metcalfs comment. We are not in terms of phase two, it is only about ten Million Dollars or so, that we are looking at accelerating in it and maybe a ten million zlars and that is only if we dont get that grant. If we dont get the tiger grants and so for every dollar, we dont get in federal funding and we are not made the number one priority for the city, we have no choice but to go to another Revenue Source and i have to add that while what is included here from phase two does not effect the new starts pot. But we wanted to finish that presentation. This presentation because i think that it answers your questions, director metcalf. In terms of what or i mean what else can we cut . It answers, what we are looking for in terms of additional revenue and we have a plan to first and foremost go to our pot. That does not compete with anybody else. That is our property sales. And so, if you can allow us to juflt finish we are almost done. And we will answer and at the next board member i will certainly bring all of the things to you that the directors asked for. Thank you. I want to make a clarification. I am not interested in the Third Party Oversight on the safety measures. I am interested in someone who can make recommendations to the board as possible ways to reduce the 502. 6 million yet to spend on the project. Okay. And actually want one more clarification that i pour got to make. It could be that we could also save the security end as well and you probably have already looked into it. We have. Just another question. I just know that initially. We will be running ac transit and golden gate and etc. And then down the line, we will have dtx and down the line we will have high speed rail and so i know the numbers that were put before the board were kind of what we expect the maximum usage to be. But i am not sure that if the cameras could be phased over time. We certainly are going to. We have phased out everything that we can for phase two, absolutely director kim. And one other, there is another element, i mean in terms of phasing. We could phase the park in later. That would save costs. We want to phase the bus storage, but we could phase that as well. There is just some other elements that we could phase. Okay, as well and we could present that all to you at the next Board Meeting. Absolutely. So bob . It is to build on what you said about the implementation of the rba criteria, and design guidance criteria and we have attempted to explore all of the opportunities for phasing there and there are elements that we have built into the plans for phase two but certain things like the perimeter protection. And that ended up being built into the structure from the beginning. It is very difficult to retrofit later. But others are more amenable to that. So just building on what maria said. We are looking at the. We have tasked the design team with taking another look at the w, or called a w1, the awning system that encloses the buildings and that has a potential to bring down the rva impacts by as maria mentioned roughly 7. 5 million or 12 percent of the total rva impact if we go to a different solution there. And so, we are actively explore thating and look forward to bringing that to you next month. The other thing that is a component of the recommendations for budget adjustment that we are bringing to you or presenting to you, is an examination of the over all budget contingentcies in reserve and where they stand and if we are to make a budget adjustment, assuring that we are putting in place the contingentcies and reserves that will allow us to complete the delivery of the phase one program. And so, within the budget today. There are a number of components of contingentcies and reserves within the budget and the first is the design contingentcy. It is embedded within the Construction Costs budgets and it represents a reserve for unknowns in the design at any status and any point in the design process. So that the typical expectation is that as you move through the design process, those design contingentcies, are reduced to 0. But at the same time, additional detail comes in to the design and is reflected in the design documents that offsets that contingentcy. Our contingentcies are not currently at 0 as we have not completed the design. But, we are carrying roughly 8 million in the design contingentcy bucket at this point. The second category again is within the construction budget is the construction contingentcy and that is a reserve that is held for the course of construction, unforeseen conditions and other change ts in the scope or construction requirements. And the reserve, against those for those changes and claims. The cmg ccontingentcy, is what we established it is some what unique to the construction manager general contractor approach to construction that we are employing on our project. That is a reserve to handle coordination between trade subcontractors and provide for a level of schedule recovery if the contractor falls behind schedule and needs to accelerate to stay on the schedule for october 2017 completion and related issues to the over all excuse of the work and finally the Program Reserve which is its own Budget Category and is a reserve against all other program budgetary requirements. So, in bringing an assessment in the recommendation to the board, we reviewed the status of all of the existing reserves, and in addition our recommending two additional components of contingentcy being incorporated into the budget. The first is a schedule contingentcy and as i mentioned there is a wide range of costs associated with managing and delivering a program of this nature that our timedependant. And if we for some reason do not meet the october 2017 completion date, those costs will continue to be encured and we will believe that it is prudent to recommend that we have some reserve for those time dependant costs as we move forward. The second is a Market Recovery adjustment. And this is a significant recommendation that we are making. It is on par with the cost impacts of the rva. And it is reflective of what we are seeing in the current market place Construction Market place. And it is consequences for our estimates and for our construction budget moving forward. I know that the big indicator that we are seeing a shift here was with the substructure bids that came in and what we are seeing is an increase in activity in the Construction Market in the bay area, particularly around issues of steel and concrete. That is having a consequence for us of fewer contractors pursuing some of these packages. And where two and three years ago, contractors were pursuing work at little or no profit margin. In order to maintain a deployment of capitol resource and personnel. Now, there is more of a return to normalcy in the margins that subcontractors are pursuing. And those are having consequences for us in terms of decreased competitions and higher bids going forward. So we are expecting, we are looking at the super structure package where we anticipate receiving bids next week. And we are actively evaluating our engineers estimate for that package at this time. Mr. Beck, if i may just ask, how much is the Market Recovery adjustment roughly of the increased budgetary costs . It is a good segway. This slide, we are recommended an adjustment of 55. 4 million in basically escalate in market reserve against the remainder of the construction budget. And the Program Reserve today stands at 20, the balance in our Program Reserve line item stands at 21. 4 million. And recommending restoring that to a level on par with when we set the 1589 budget by adding 25 million to the Program Reserve account. A slight increase in the construction contingentcy equivalent of 8 percent of the tobebuilt work by increasing that by 25 million and by introducing the schedule category as a reserve against time dependant costs on a level of 5 million. Could i ask a question . Yeah, director reiskin . I think that restoring and adding to these contingentcies make sense. I think that this is the right path forward. I am interested in the market adjustment and how you arrived at that number. Have you all looked at when we awarded the last package, you had indicated that even for this next coming package we may see higher bids, we are all seeing these cost escalations happening. Do we know what our packages are and we have budgets for each package and we know the timing of each . So have we kind of revised our estimates for each one and is that where this 55 came from and how does that relate to that . Why are we doing that separate from a construction . Or just revising the budget for each . Yeah, it, we have kind of taken a couple of that is that we are asking that we are projecting, both long term and their own indexes and other markets eand r and others going forward. To see if we are seeing an adjustment in pricing, and we have reviewed the current schedule as for the various trades to see if we are seeing any trends on the labor side of things. There is a significant portion of this which we believe is exposure on the structural steel package right now. You have asked in the past about the number of prequalified bidders that we have had and we have had four on the steel package but two of those firms have indicated that they are not going to pursue it as a prime but going to submit the bids to the other bidders, so we are seeing the consolidation and what we are hearing there is that it is a level of resources a contractor want to commit to a single pursuit as opposed to a diversity of pursuits and us being such a large project. Whereas some of the later packages that are more ubiqitous drywall contractors we are not seeing shifts in those market places at this time. And we are quite frankly, the number of firms in the market place give us a level of confidence that some of those later packages will not be as impacted. But, because it is such a fluid situation right now, we are recommended this as a reserve against these exposures rather than it is very difficult because we are just in the midst of a transition of how it should be allocated against the packages. I observed that the increased Construction Costs from being almost exactly matches the increased land sales, we think that we might get on the revenue side from being in the boom. So that is nice. Those are in a sense canceling each other out tl. Is a chance that you could get more money out of the land and control the construction bids and come out ahead. There is also a chance that the reverse could happen and that the land is not as good. It seems like this is going to be fluid. But maybe we could hope that those kind of balance each other as we have here in this document. Yeah. That is coincidencal but you are right. The forces that are effecting our costs also fortunately are effecting something of our others. Mr. Beck, a poll guys, we have been ten minutes remaining before at least two of the Board Members need to leave. So i think that clearly this is of great interest to everyone in this room. Both staff and the board. I think that we will need to continue the discussion until march. I actually feel like we need to just talk about the budget in a meeting and so, normally you have subcommittee and all that have and we will talk with the director about how we might have a workshop just on the budget so that we can ask all of the questions to the members of the public can have an understanding of where these increases are coming in, some of which of course, make a lot of sense. We are seeing all of the projects costs go up currently because the economy is doing well, which is a positive thing for the city, but it also means that our cost increase particularly on the public projects and this is not exception from that. So if it is okay, with members of the board, i would like to also continue this item. And i will work with the director to see maybe the best way for us to have a more robust discussion just around the budget. And it is good that it is coming to us now, before we have to approve the budget in may. We are looking at march. Approving the budget in march because we are finalizing the construction documents in may. When will the bids be in for the big package . March 7th. Director. When we open them on march 12th. Right we may want to it seems like we would want to look what that award value is. We could do that. We. Based on where that is the biggest area. We could have a continuation of more information brought to you at the march Board Meeting and then have like a maybe a later meeting in march a special meeting. I think that might be a appropriate. We could call the Team Meetings in march. I think that this is incredibly important and i am happy to have two meetings. So we can continue this item to the call of the chair to give the flexibility. Yes. We will have at the regular march board information more meeting that you requested and then at the special meet ng march we will bring you the information on the structure and the steel structure and the item for the budget and item. I want to thank the staff, i know that an incredible amount of work has gone to this and it is clear and i know that the staff is working hard to contain as much as possible. With rising costs. I just want to appreciate that and i apologize that we were not able to make it through and to the rail presentation and i know that they worked hard to get that ready today as well. Thank you for your comments. Just as a final note. We are looking at additional 164. 5 million for the budget which we will give you more information on in march i did ask for a motion if we could normally. Motion. The motion to continue to the call of the chair. In the amount of 1 billion, will be continued and presented at a later. Without opposition. Okay. So we do have a member of the public . That would like to speak on this item . Comment on this item. Thank you, madam chair, briefly i am aware of the constraints here. This was a very impressive presentation. But what impressed me even more is what was not there. There was no discussion of tunnel safety, in other words, the dtx. And the way that this starts is with our design and mr. Reiskin is a very familiar with this. Because this is the way that the central subway is designed. You use the tunnels with the cross passages and i will give you an example. People talked about the madrid bombings and london and they ever talked about the tunnel fires. And the third of them, at a reason was that there was no fatalities and i will give you the example. The 2008 fire was exactly on the 7th anniversary of 911. It was to the minute of when the first plane hit the first tower. That fire burned for 16 hours that tunnel was out of service for nine months and cost 190 million to repair and no casualties and very briefly, the bonus that you get there, if you use the same tunnel design techniques as what you are using for central subway, the savings would be in the billions of dollars, mr. Reiskin knows the subway tunnel of up to 253 million, in closing, with regards to the safety aspects of the glass, and the transbay term terminal you may want to look at other materials. Plastic and another one is called etfe, thank you. Okay with that said, that does include the members of the public that want to address you. As the board earlier approved to continue item eight we will move into item nine thank you. Authority sizing the executive director to execute the amendment number two to the agreement with the San Francisco Municipal Transportation Agency sfmta. I think that i need to recuse, myself. If you have any questions you could respond or a defer to you. Second, apologize. We do have a motion, to move this item forward. With recommendation, i do believe do we have a take a motion to recuse director reiskin . No. We dont. The members of the public that wanted to address you under that item. And so with that director lloyd . Aye. Metcalf in aye. Reiskin. Abstain. We have one more. Thank you. Director ortiz. Aye. And chair kim. Aye. As well. That is 4 ayes and one abstain and item nine is approved. The final item for the vote today is excuse me, it is not the final item. But number one is authorizing the payment of current and future eligible and approved Relocation Assistance claims over 100,000 in the ago go gate for wooden spoon and fork and members of the public have indicated that they want to address you on this item. Thank you. Is there a motion on this item. I am sorry. If you have any. You need to come up. If you have any questions. I know that we have three minutes. So. I guess that i want to make sure that i understand, we dont know what the final pay out is going to be in is just a preauthorization . Correct. We have our internal estimates. Relocation Services Consultant and they are still well under that estimate from the consultant, but we would be obligated under the relocation law to say whatever expenses are eligible and there is no cap in the relocation law at either the state or the relocation law. Thank you. Thank you, director. That was my question, i was wondering why we were preauthorizing without know. We could of course come to the board with each claim, individually but that does make it hard for the business to move forward with moving and trying to pay the contractors okay. Thank you. Approval . Resolution . So moved. And a second . The first and the second. Director lloyd . Aye. I will note for the record, metcalf has departed. Director reiskin . Aye. Vice chair ortiz. Aye. And kim. Aye. That is 4 ayes and item ten is approved. Do you have a motion to approve the minutes of the january 10th. So moved. First, second. And all of those in favors. Aye. I will go ahead and note for the record that director metcalf was absent with that it is approved and that will conclude your agenda for today thank you, see no other items the meeting is adjourned. Director brinkman . Djourned. Present. Principle. Director heinicke . Director heinicke is anticipated. Director lee . Present. Lee present. Director ramos . [speaker not understood]. Ramos present. [speaker not understood] . Mr. Chairman, directors, you have a quorum. Item 3, [speaker not understood] producing devices please be advised that the ringing of nuisance cell phones, pagers, any Electronic Devices are prohibited at the meeting. Any person responsible for one going off in the room may be asked to leave the meeting. Any person any cell phone that is set on vibrate does cause microphone interference so the board respectfully requests that they be turned off. Thank you. Item 4, approval of the minutes of the january 15th, 2013 regular meeting and the january 29th 2013 special meeting. Thank you. Is there a motion to approve the minutes . Motion to a preform. Second. Any discussion on it . Erctiontion all in favor say aye . Aye. So ordered. Okay, thank you. Item 5, communications. Mr. Chairman, i know of none. Well, i would just like to members of the board, like to mention the workshop we had on the 29th and it was thai day long event. We were in the Southeast Community center. It just was an excellent presentation. At the end of the meeting i commented and a number of people had already left at that point about how fortunate we were to have the caliber of staff we have here in this agency. Throughout the agency, the people who presented did an excellent job. A wonderful overview. Wish all the people of San Francisco could have had an opportunity to see that. It just seemed like a very well worthwhile day. So, other members have communications or anything . Yeah, i just wanted to say i thought the workshop was great. It was a good overview in terms of connecting the dots. And i thought the ta did an excellent job and really showing us the big picture. The other thing i wanted to do was to thank the department for their work with the chinatown flower festival. It was last weekend and it was a fabulous event. There was some moments of nervous us in that we knew we were going to get the [speaker not understood] for the flower festival. Department did a great job in that [speaker not understood]. Thank you very much. Thank you. Director burgess. [speaker not understood]. I just wanted to offer my congratulations to chairman nolan for being reappointed by mayor lee to serve another term on the mta board and continue to serve as our chairman. I know were all looking forward to another fouryear. Are you speaking of everybody here, four more years . I think i can safely speak on behalf of everyone. [laughter] thank you, it was very gracious, very kind. Okay, director regis. Yes. Very quickly i,