tv Government Access Programming SFGTV June 11, 2019 2:00am-3:01am PDT
lives better more people get a job here not just a big firm. >> you don't have to go anywhere else we have pocketed of great neighborhoods haul have all have their own uniqueness. >> san francisco has to all >> good morning, everyone. welcome to the transbay joint powers authority board of directors meeting for thursday, may 9th. call the role. >> i can call the role. i will note for the record that director chang is sitting in as director haney's alternate. [roll call]
>> mr. chairman, -- mr. chairman , you have a quorum. shall i call your next item? >> yes, please. >> item three is clean occasions i am not aware of any. seeing none, item four his board of directors, new and/or old business. >> none. >> seen none, item five, executive director's report. >> good morning, directors. i would like to first update you on the efforts to reopen the transit center as soon as possible. in order to do that, we should repair fremont and first street. i am happy to report work is now complete in the streets have been restored to their original condition. we will continue opening up street closures for the next few weeks to restore ceiling panels. we install overhead lines, we in store -- install safety light systems in the area. we are currently focused on continuing to provide information as requested to the peer review panel so we can complete their work.
in addition, we are substantially completing commissioning the entire facility, which as you know, is intensive quality assurance process that ensures we are ready to be ready for occupancy. once we peer-reviewed, the panel finishes their work. we are retesting and re inspecting fire and light safety systems, retesting the building mechanical elements such as elevators, escalators, and retesting the electrical elements of the building. this work is expected to be completed on the end of this month. all of this work is been done with oversight from the san francisco fire department and the department of building inspections and others. you will receive an update on the status of the effort as well as the repair and recommissioning this morning. as we have achieved this major milestone, tjpa staff, property managers, park managers, and others continue their planning to ensure smoothly opening for the transit riders and the general public so we are able to
open the transit center on day one. we continue to meet regularly with staff so we can resume operations immediately after reopening. we also presented to the transit board last night the status of the repair efforts to reopen the transit center. i do want to thank director hurst for extending that information to us. in addition, we have developed a copy hence of communication plan to inform transit riders and the public about the reopening. the plan improves media, social media, a worksite presence, e-mail marketing and limited ambassador program. our goal is to educate and reassure transit riders on the public, rebuild trust, and reaffirm the center's value. we are eager to welcome the public back to the transit center as soon as possible.
moving on to phase two of the downtown extension, i will start with the status of the environmental document. the board approved the ceqa part in december. we have since been working diligently with the federal transit administration on approving other parts of the document. yesterday we received edits and comments and a decision from staff. we plan to address the comments by mid next week, and hopefully this will be the last step in approving the record of decision and completing that about -- the documents. in regards to the status of the peer review by the san francisco transportation authority. staff and consultants continue to hold workshops as planned. the peer review panels have requested additional presentations, documentation, and other information, which we have submitted, and we stand ready to provide additional information if necessary. based on the current schedule, the peer review will be completed in june.
the tjpa will continue to work closely with the transportation authority staff so that the funding can be reinstated, and work on phase two can resume as soon as possible so we are able to compete for funding at the federal and state levels as they become available. the san francisco county dismissed the lawsuits against regional measure three. and the process concludes on june 24th. if all goes well, it may become available later this fall. as you see in the agenda today, we assume regional measure three to be available in the next fiscal year in our budget so we can resume activities on the d.t.x. as requested by the board in december, the transportation association has concluded a peer review of the project management and oversight of the tjpa and would present their findings today. this peer review was led by the
technical services and innovation department. the scope of the peer review includes an evaluation of the processes, procedures, and organizational structure implanted in phase one, and recommendations for improvements were phase two and the pennsylvania avenue extension. i would like to thank them for providing such valuable services , and i also would like to thank the peer review members for working hard to get the peer review completed in such a short period of time. you will get the pleasure of meeting them soon. as for leasing, as you know, they have been executed for the transit center. we currently have six leases of negotiations. i hope to bring two or more at the next board meeting. we also have another six leases that we are negotiating the letter of intent for. once that is done, then we will
complete these negotiations, and expect several of them to move through negotiation soon. we continue to make good progress. i believe that once we announce the opening date, the pace will pick up significantly, and we will be able to become -- to complete these shortly. last but not least, i did attend the caltrain executive director meeting for the business plan. it is almost complete. it is expected to be presented to the caltrain board later this year, in the next two or three months. with that, this completes my report. >> questions from directors? okay. >> seeing then, i will call your next item. item six is the update on construction the tempera closure of the salesforce transit center >> good morning, directors. ron alameda, i will give a presentation today focused on greater remediation and the repair status of contract work
to complete, and there will be a follow up on that. progress on the rest of the building wide review, and where we are at with that, and then finish up with a contract closeout process and how that is coming along. what actions have happened since the last time we met? freemont and first street, the repairs and remediation are complete. the shoring has been removed at the street level and pretty much throughout the rest of the center it is gone. is a huge milestone that happened since our last meeting. at this point, the contractor is reinstalling all of the facilities that were surrounding it such as the lighting, steel panels, the o.c.s. all of those are going up at night. right now we have fireproofing that is going in at night, and will continue to happen over the next month or so as we stitch everything back, as we call it. the project team has provided information to the peer review for information to the peer review panel.
a significant amount of information has been provided, and we are at a point in time awaiting their comments. we have a few important meetings the rest of this month to have that worked out, so there's a lot in the works right now now that it is in the peer-reviewed 's peer review's hands to comment and proceed. and then also the l.p.i. is still being reviewed by the peer review and still awaiting comments, but that is independent of opening final comments. the facility review is our final milestone. to give you that drawing quickly of what the remediation looked like that this graphic here, this is a picture from first street, this is what the plates look like. these will get coated with fireproofing and then you will not see them because they'll be behind the ceiling panels, but they are bolted up, installed, and complete.
with the shoring now removed, this is the deck that was removed recently, all the shoring that was there at fremont street, but especially for the travelling public, all that shoring that was street-level was removed on fremont street on april 26th with all the traffic lanes put back to original condition, and same at first street on april 30 th, it was all but back to original condition. as you will see, the ceiling has an access element to there. that is what i'm talking about with the stitch back. they finished up the fireproofing last night, and they will be having closers on first or fremont at night to fill in that hole, which includes putting back lights, and ultimately those panels will be filled in and you won't know that was there at the end. so what is our next steps? the next steps is expect to receive those peer review panel comments. that is really where we are at this point this month. and then as needed, the project
team will provide additional information as the peer review digests and reviews, and comments on what they have currently, and then we will submit additional information as they need to complete their review. here's the schedule that is updated. essentially, except for the very top line, the design, the peer review for the remediation, the permanent fixed installation, and the shoring removal now are all retired. the shoring removal shows tomorrow, and they will be finished tomorrow. that would be all the shoring that is done in the train box, those final pieces will be gone and hold off tomorrow. leaving only those three items regarding the reinstallation, and then the peer review verification. and the last item, the on-site building structural steel, what we have chosen to help in the process is because of its ease of access, we have chosen to go
forward and open certain areas on the lower concourse to show physically the peer review what the conditions are out there. not only the paperwork, but because of its convenience and its confidence in showing what it looks like out there, and we still see no issues. all has been shown to be very good, in good shape by the project team, and the peer review will be looking at that very shortly to get their concurrence. switching over to the work to complete and what else is going on in the rest of the center, the westend breezeway, the alley , these are the same elements that i keep updating, and also the pathway. i have some pictures to show. at the westend breezeway, which is the far west and, is just about close to complete. some little ceiling panels you will see at the upper left picture, but for the most part, the progress has been made there shot alley, the concrete, this
is looking down -- these are all the light fixtures. this is the jamie carpenter art display. the concrete was poured. this rectangles in the floor are light features. the benches are light features, all part of jamie carpenter's concept, and now the concrete is secure, and in about amount -- a month, all the lights will be up it will be sealed and will be completed. traffic signals. this is the challenge we've had with getting those activated. pg and e., my bullet in the upper right says may 21st. they just informed me last night that they will have their parts until may 24th. but at least it only slipped three days, so that was the way i looked at it, but m.t.a. is queued up as soon as pg and he finishes their work so they can fire up those signals to get the crosswalks straight, get the signal timing and all the pushbuttons all activated. m.t.a. is anticipating in the
winds, waiting for pg and eat to finish their work, then we can get the three crosswalks on first street going and remove all the public works barricades which are all along the first street barricades at this point. ceiling panels have made some significant progress where there are just a few minor pieces left and then the pathway. we were disappointed in the performance of the installed pathway. multiple attempts to patch the pathway were made without satisfaction, as we have discussed in previous reports. patches were monitored through the rainy winter months, but given on the -- based on the given conditions, we determine the material needs to be replaced, and that was the best course of action. and now concrete was chosen. it is an elegant grey concrete because of his economics, and its durability, and that will be starting this month. so we are actively in the process of doing that right now.
i will have some very good photos for you at the next month 's board meeting regarding the pathway. switching back to the facility wide validation, this is my final that i have been showing you for a few months now as we work through this process, as we progress, we have been in the tc q.a. documentation mode for a couple of months writing the paperwork. there has been significant amount of effort of paperwork received from all the suppliers, the fabricators, and gathering all that information, and providing it to the study to complete the review. we have actually decided it was beneficial to move to the green level, which is based with the on-site visual inspections, mostly down at the lower concourse level where the girders are easily accessible. all they had was fireproofing on them, so it was easy for all --
for the details to be identified and the type of work product we have out there, and they are all coming back very good. that is where we are at at this point, and this has all been provided to the peer review and they will be able to see for themselves here very shortly what those items that we have opened up. with that, i will turn the rest of the presentation over to ron to bring it home. >> thank you. >> good morning, directors. ron alameda. thank you to dennis, is always. what a clear explanation of what has been transpiring in the last month. my presentation will be rather brief today, as you can tell. the focus and energy has been mostly on getting the building back into a state of readiness for occupancy, budget, and the schedule has not moved all that much. we are continuing towards close out as well. to focus on this slide, the
first three bullets of reaffirmed structural steel, the test and inspection records, and the building management system. they are all complete, with an asterisk that we still need p.r.p. concurrence on all the items, and we are in continual dialogue with them, and there's a couple of meetings already scheduled for this month to hopefully bring that to rest. and the full validation of the fire and life safety system, as i mentioned, it has been fully operational the last number of months, and it is really just the piece that peace that is associated with the stitch back of the vicinity of the beams. so we are really ready for reoccupancy once we get a nod from the p.r.p. to reference dennis' final, we are clearly at the bottom of the final, and i'm eagerly ready to
exit the funnel and reengage the building. we will be beginning dialogue as of today with m.t.a. and a.c. transit on scheduling the return of buses to react mate -- react mate the drivers to the facility while we finished off finish off the closure of the p.r.p. reporting and analysis. in terms of close up process, just about all of the as belts and warranties have been received. the punchlist is down to about 400 and some odd items, mostly all regarding paperwork, and some -- a bit of revalidation to
be filled out, but primarily paperwork. the noncompliance is are buttoning up now that we have the beams all repaired and done. in that regard -- and commissioning and training for systems are all complete, as well. the handoff of the building management system occurred, i believe, last week, so we are clearly getting into a state of normal operations. that leaves us to the final closeout of change orders. i was hoping to have a few more trade packages closed in the last month. there was a lot of banter and back-and-forth amongst lawyers on nuances of language for closeout. i think that chatter has come to rest, and i keep being promised about a dozen trade packages on
my desk to sign off on, so i expect it to be eminent. in terms of the stats, we have 21 trade packages that are in place still. thirteen will go to dispute resolution. the first dispute resolution meeting or advisory convening in the d.r.a., we are targeting for july to address the dispute around the pathway material, and then the other trade packages will follow in terms of trying to resolve our differences. eight train packages are involved, and the goethe repair. so now that that is done, i see momentum on that front to start closing out those trade packages , as well. and then today, five trade packages are completely closed out and gone. that concludes my segment of the
presentation. dennis and i can entertain any questions you may have. >> questions from board members? >> first, i want to acknowledge the good work that the director and the whole team and all in all the different folks to restore the beams. i know from identifying the cause, designing -- to designing it it was a lot of works and restoring the streets accordingly. i want to acknowledge that. great to see that progress. the one thing that i didn't hear , and i apologize for coming late, maybe i missed it in the director's report, is what was the substance -- were the conclusions of what you all submitted to the peer review panel? you said you submitted the final report and are awaiting comments , but what were the conclusions of the report that everything else was good?
bye when do we expect comments back, and when did we expect to be able to reopen the sector, assuming there are no other changes needed? >> what was submitted has no new data from what was presented previously from l.p.i. in terms of when it will come to conclusion is kind of in their hands. we're trying to support and address of every question that comes up. i think it is on the 12th and 13th and we are convening a handful of them to come out to the site and look at things. as dennis mentioned, we opened up more of the details that were identified that were of interest , rather then continuing to rifle through the paper. we noticed on grid line 11 and nine that we were able to readily remove fireproofing so we can lay eyes on it and understand it. what they have seen thus far, i
think there were five or six locations on grid line 11. l.p.i. was impressed with the state of the details in terms of being shiny and bright and properly perfected. really it is now that whatever last nagging questions various members of the peer review may have. hopefully it will put those to rest with the visit on the 13 th, and convening everyone in new york on the 22nd, hopefully that is the final huddle. we have it on the 22nd to give us enough right-of-way to make sure that all of the paperwork is in hand, and i believe it already has come to rest in that respect, but we wanted to make sure that all questions are day lighted and the appropriate documentation is identified and obtained from fabricators and/or
designers and put it to rest on the 22nd. that is our target, and that will afford us an opportunity to start articulating and opening date, but in anticipation to that, i'm eagerly looking for our partners to react mate and really start reenergizing. mark has a little bit of work in terms of wrapping up staff again , so we are just starting now on that timing as well. >> the p.r.p. request had a request for quite a bit of information. was the designer able to give the information, analyse it, address the comments and send it to the p.r.p. the designer were satisfied with the status of the building, and it have indicated that once the p.r.p. is satisfied, the
building can be opened. so right now the p.r.p. is going through the analysis that the designers have provided them and have they addressed -- and helped address the comments. i think was the p.r.p. is satisfied with that, we can move forward. >> yes. if that happens, optimistically on may 22nd, what does that mean in terms of an opening day? >> we would need ramp up plans to staff up. we would need probably about a four week period to be able to get bus training, at buses inside, and staff up and so forth. >> what about park or returning the food trucks? >> if p.r.p. returns on the 22 nd, we would get the food trucks on the 23rd. that shouldn't be a problem. that area is available for them. this is staffing up for building engineers, janitorial his, park parking fasteners and so forth, and also we need to clean up the
bus deck so that a.c. transit can do some training, and we also need to clean up the bus plaza for buses to start training as well. if we are able to start training before that, then we will do that. we are working on several levels and able to move, but right now we are working -- waiting on a signal from the p.r.p. >> okay. it sounds like given somewhat optimistic views and knowledge of what has been submitted, i would think that you could start some of that ramp up now. >> we have cut staff quite a bit we have cut them more than 50% in some areas. we are waiting for some key positions. >> thank you. >> yes?
>> i will do my comments in reverse. we're getting back into the terminal. i appreciate staff is working with a.c. transit and recognizes training. we also have to coordinate with our union. we have hired a significant number of new operators. there is a union coordination operator sign-up and retraining -- retraining -- training of -- working closely with tjpa staff to figure out when we can pull that trigger, and then the second comment is i thought it was a very productive presentation with my board last night. much of the staff was there. it took a big step forward in assuring my policymakers and staff that work very close to be ready -- to being ready to come back in. >> any questions from directors? thank you. >> thank you. >> i will go ahead and call you next item. >> item seven is the citizens advisory committee update. i believe. is with us -- i believe we have
a representative here with us. >> good morning, directors. thank you for continuing to hear updates from the tjpa's c.a.c. made up of many communities. our meeting tuesday evening was productive given the closure of the transit center last fall. the c.a.c. is pleased with the retail leasing. the c.a.c. was also pleased with the comprehensive presentation by the new tjpa c.f.o. we appreciated the robust q. and a and in increasing our understanding of expected revenue and expenses over the next 12 months. we are also optimistic based on the construction update,
including the installation of the girder plates. the progress of the stitch back, plans to minimize traffic interruptions around the transit center, and feedback regarding the peer review panel. a noteworthy word, they surrounded the responsibility and liability for the replacement cost of the rooftop walking paths, the assessment and recommendations in the peer review panel is coming soon, so that is good. we're not only looking forward to when bus service will resume, but also want to make sure we don't fall too far behind the schedule for the phase two d.t.x. project. like many throughout the community, we are interested in the phase two d.t.x. moving forward, and we are aware that the lawsuit against regional measure three will lead to availability of funds this summer that will go towards phase two. we appreciate the comments from the program manager of the san francisco county transportation
authority. review representative. there was interest raised making sure the stakeholder group involve someone connected to the local community or located -- connected to the c.a.c. community. right now we are also getting feedback from them. enclosing, we are anxious for the robust feedback from the peer review groups, with meaningful data, that is specific, measurable, actionable , and constructs movement on the reopening of the center. i'm excited to hear about what maybe coming soon. and of course, progress with the d.t.x. and phase two. we mean -- we remain highly interested in making sure the cost for any repairs or passed on to the entities responsible, and not the public. that is it for my comments. >> questions from directors? thank you for the report. [please stand by]
>> yes, please. >> where all matters listed are considered to be routine would be acted upon by a single vote. there would be no separate discussion of the items unless a member of the board or public requested and in which the -- in which it would be removed from the consent calendar and considered separately. we've not received any indication that a member of the public wishes to have any items considered separately, nor from the board. first and second. [roll call] that's seven ayes and the consent cal is approved. go ahead and call your first
item on the regular calendar. presentation of and public hearing for draft fiscal year 2019-20, operating budget in the amount of $38 million. and draft fiscal year 2019-20 in the amount of $99 million. >> director, our chief financial officer will present this item. >> hello. good morning to you all. that was a mouthful, right? $38 million, 700,000 something. it's a big number. so, today i'll present to you the operating and capital budget for tj pa for fiscal year 19-20. previously we've been to you with our february meeting with preliminary numbers and april i came back with an outlook, a general summary of what to look for and today i bring to you the draft budget with all the numbers that you've been waiting for.
so i will preface the operating budget assumes full operations from -- for our full fiscal year, july 1 through june 30. in this draft budget, you'll see a comparison from february to may. there is a large difference at $6.5 million. $6.5 million is debt service. and our february projection we did not include it because the february preliminary number was operations. previously before i came, our debt service had always been in capital and i made the -- made the decision to move it to operations as phase one is closing out and there is no more capital once this year ends. it fits into operations at this point. so, the difference between february and may is the debt service. that debt service number is fully paid for by the next tax increment so there isn't any
difference for the operators or any other sort of revenue differences that negatively affect anyone. >> what is the debt that we're servicing? >> our first payment is february of '20. in terms of the revenue for this draft budget, you'll see there is $8.2 million in rm-2 money, which was one of the items on the consent agenda was to apply for that. $1.6 in regional measure three so we have good indication that m.t.z. will national convention allocations -- will make the allocations this year. the next revenue would be the c.b.d.s park maintenance. at 1.7 and then the debt service for the next tax increment revenue and then you see the wonderful number of 4.8
million. that would be the contributions from the operators and i would like to point out that it is a reduction of $400,000 from our february number. additionally, we have revenue generated from the transit system so it's the naming rights, retail revenue which includes leases. we have our sponsorship and events, advertising revenue and our offices sublease. there is a few deltas there. we've had a little bit of increase in retail revenue and increase in the sublease space. so, overall, the revenues have increased by 21% but clearly the majority of that is the debt service. here is a different view of our operating revenues and see 81%.
the international governmental revenues encompassed the largest portion of the revenues for operating budget with 12% being from the operators's contribution of 7% from our operating and maintenance reserve. in terms of expenses, the transit center has the majority of the operating expenses, 63% and administration being 2% debt service and being 17% of the total operating expenses. when we look at the transit center operations, there's several red numbers. so, we've been able to reduce a lot of the categories and we made those reductions to offset that one big number that you can see there that $900,000. we had a miscalculation -- a
formula and able to offset that miscalculation with savings and other lines. and you can see the budget matches, $38 million revenue and $38 million expenses. moving on to the capital budget, the capital budget assumes that phase one will be completely closed out, all claims taken care of. and that will start into phase two. so the capital budget is $99 million with a $67 million in committed revenues. $31 million in planned revenues.
and the expenses totaling with the lion share of expenses being in construction and engineering. we take a deeper dive into the revenues, you'll see $62 million comes from c.f.d. reimbursements and little small amounts that are either residual amounts that we had leftover from small amounts from rm-2, the bridge tolls and the prop-k sales tax. we have a few dollars allocated for -- from the impact fees. the total is $67 million in committed revenue. in our planned revenue, we're anticipating possible allocation of rm-3, more impact fees and prop-k revenue to get us started on phase two and to
help with a little bit of close out of phase one. in terms of expenses for phase one and phase two, you'll see the total administration of our capital projects is only 2% of our budget. the largest portion is construction, which includes tenant improvements and phase one close out punch list, all that sort of thing. looking at administration, we have $1.9 million in salary benefits, office expenses. just your general overhead. and then another $10.5 million in administrative professional services. so that encompasses legal services, legislative virginia beachsingsinger, auditing, those sorts of professional services that support the administration. going to the meat of the capital budget, you'll see that
we have more professionals, specialized services, 18.3 in engineering and design. with that being comprised of pmpc which helps with close out of phase one and then moving for phase two the d.t.x. extension. we would also do r.f.p. so it is not necessarily our existing pmpc, but apmpc going for phase two. the d.t.x. and then permits and fees all in support of closing out phase one and having the transit center being a full operation. then we have 2.1 on construction management and dispute resolution and as we heard, there's some disputes that we definitely expect. so we'll have the construction management to help get those through.
then there is construction and that is the close outantenanltz improvements for phase one. real estate services and then the pennsylvania extension. if it's included into the program later on. all these expenses for the capital budget will require -- not all, but a good portion of them will require a transfer from program reserves. we expect the tenant improvements, architectural and engineering and some of the administrative costs will necessitate a transfer from program reserves. but we bring those specific numbers and items to you in june with the adopted budgets. do you have any questions? >> director riskin. >> thank you. it was a clear presentation. two questions and i know we discussed the contingency and
level of contingency previously. but in reading the report and seeing the presentation, maybe i'm not understanding. we have about $3.5 million allocated toward budgeted for contingency in the operating budget. i guess my question is given the fact that we have a reserve, why are we budgeting contingency as opposed to budgeting without contingency and knowing that if we need to access the reserves, that we can take a subsequent act to do that? it seems to me that, because we're budgeting that on the expenditure side, that we need a revenue for that. and anoning other revenues, there's $4 million plus from the operators. it seems like if we weren't budgeting for contingency, because we know we have reserve, then there would be less need to tax the operators to fund that need. >> let me go back to operating.
ok. there is a line at the very bottom. use of fund balance in reserve is $2 million. that is how we fund a portion of the contingency. so, the contingencies and the expenses, $3 million that you pointeded out. the contingency is partially funded by the use of o&m reserves so i know exactly what you're saying. >> partially what it sounds like. we're putting it in the operating on the other side and the 3 1/2 level, but 2 1/2 of it comes already from the reserves. so we're just prealoe indicating it as opposeed to allocating for i. >> mark answered this question from the c.a.c. the other day. what are we doing with this?
so we've -- as he mentioned before, we staffed down at the transit center so the janitorial and some of the other staffing. and we know we want to get to a certain -- a certain staffing level. if we need more than we have this contingency to staff up. if we don't intend -- if we don't need to staff up, then we won't dip into the contingency and it's already essentially funded. >> that answers one question. i might have a recommendation on that. but the other question of, again, on the expend chure side, we have about $3.5 million of contingency. we're using $2.5 million from the reserves to partially fund that. but that means there is another $1 million that is sfrong other sources such as transit. [laughter] >> and strong from other sources such as rm-2 and rm-3, but i get your point.
yes, you are -- you could be contributing to that but we'll do our best to keep our expense down so we're not having to use the contingency. >> if i could add something, director. given that we don't have an operating history, our staffing is very lean when it comes to building engineers, when it comes to janitorial and others. we give it a hair cut. the reason we did that is because it's harder to figure out whether we have one extra person and then we have one less person. if we have one less person, then we can see that in the reduction and use the contingency to add the person that we need. so we cut the loose lines and move into a contingency to give us the ability to react and once we have an operating history, we don't have to do that anymore. but this will begin the first year and we need that cushion so we put it in the contingency.
i realize that it comes from the operators, but also the operators -- it is only 12%. it's a significant amount of money but 12%, and we'll do our due diligence to minimize cost. >> so, i know when i build my budget, i have revenues in expend -- expenditures that match. we have an operating reserve and we talked about this before. if i want -- if i need to during the course of the year go back into my operating reserve, i go back to my board and actually have to go to two boards. the board of supervisors, too, to access those funds so we could be taking that approach where we're not preauthorizing the contingency, where we're authorizing the budget and should the contingency be needed, there is a mechanism, only one board to go through, to come back and request those funds. so, i just put that out for consideration of my fellow board members. i hear your point.
you don't have an operating history, more unknowns. if i were in your shoes, i would want to have that flexibility so i appreciate that. perhaps a middle way would be that we reduce the amount of contingency on the expenditure side to match the level that is funded directly from the reserves and reduce the tax on the operators by that same amount on the order of $is million so we can provide the service to the bus terminal which is, i believe t purpose for which we built the bus terminal so that would be a friendly recommendation for us to consider so it would be essentially reducing the budget by action $1 million on both revenue expenditure side, on the revenue side, from the operators on the expend chure side from the contingency. >> director, as long as she agrees, i don't think he will.
>> i fully agree. [laughter] >> [inaudible]. >> any other? >> thank you for the presentation. two quick questions. ton slide you just showed with the revenues, we have learned through experience all the money doesn't show up on july 1 of the fiscal year. so has yet expenses and monthly khex and payments happen s. there an issue with cash flow and sensitivity when these revenues do come in since they're not really known clearly that we have enough reserves to bridge anything and is there a mechanism to deal with the rm-3 money doesn't show up until april of '20 instead of fall of '19 and different dynamics like that because there's no guarantee when those moneys do show up on the revenue side. >> absolutely.
so, yes. we have considered the cash flow and we're comfortable with our projections. on the capital budgets side, where it's a little -- >> both sides. i mean, just don't know all the time. >> so, for most of the phase two revenues, we definitely have enough in reserves and cash flow to cover our administration needs. if the planned funding doesn't come in for phase two, then we won't expend, we won't start those activities until we know -- >> i'm more concerned about the operating side because of the -- where the money is coming from and we don't control that here at tj pa. >> we're comfortable that our reserveser and our cash flow will support us. if there is a delay in the rm-3
money or if it doesn't show in the fiscal year. >> the second question i have is, if i recall, and it is harder to recall everything these days, that when the sfcta -- hopefully i got that right -- initiate the peer review, there are two actions that were stopped. one was funding for phase two and the other one was issuance of bonds to replace financing. is there -- there were two items on the agenda that were stocked when that happened. where are we going to go with that second piece? we talked about phase two funding. >> i think the second piece was -- the controller's office doing a lessons learned. it was not the bonding. the bonding proceeded and it was done with some restrictions. they restricted the use of the c.f.d.s could not be used for the repair of the girders.
>> i'll go back and look but there is a mechanism to reduce the debt costs by reissuance and taking advantage of the bond market. i'll go back and look at that. debt financing is a big chunk that we need to kind of monitor and -- because it goes on and on and on. refund and lower that debt costs. i think that will help the operating -- >> yep. yeah. director? >> thank you for the presentation. the slide you were showing about the operating budgets -- and this is my first time going through the budget cycle. one thing i didn't see was what is the balance of the o&m reserve. the $2.5 million that we're using up this fiscal year, is that the entire balance of it or what set aside -- >> no. no. we haven't -- we're not using the total amount. we project about $8 million at the end of this fiscal year in our own reserves. >> we have about 10 -- roughly
10 right now, we'll use up to 2 1/2 of it? >> by the end of this fiscal year of '19 we should have -- >> so we'll have eight and proposing to use two and a half the next fiscal year. >> yes. >> if all the contingency is needed. >> yeah. understanding that we don't want to assume -- >> we don't want to -- it might make sense to tap into some of that. that could be something that comes back to the board. understanding that we want to include it in the budget for approval coming back as those contingency items come to the fore. >> so, we'll do two things. double check on the cash flow next fiscal year taking into account. we'll -- we'll look at the changing the o&m reserves to match it with the contingency.
i do want to give the board a heads-up that we were extremely in putting the operating budget together. so expect us to probably -- there is a good possibility we'll come back for the contingency and we elected to do that because, like i said, we don't have an operating history so we cut back -- i personally cut back staffing and told them to come back and get into contingency if you need it. i just want to highlight that. >> i did have one other -- he reminded me with reference to the controller's work that, if i recall -- and it is getting harder to recall as time goes on -- the -- we were seeking -- you were seeking from the cost review committee authorization to use some of the city funds for tenant improvement work which would reduce the burden on the balance of the tj pa
budget. can you remind us where we are with that? >> yeah. we are seeking 10.5 -- another $10.5 million from the program reserves for tenant improvements. we will be presenting that to the c.r.c. at the next meeting. >> what have we assumed in the budget with -- are we assuming that c.r.c. is going to approve that? >> yes. c.r.c. will approve it and operator don't have to. >> i like that assumption. thank you. [laughter] >> thank you. >> don't go anywhere. you have the next item. >> we'll note for the record since this is a presentation and public hearing, we've not received -- we have a member of the public that wants to comment on the item. mr. patrick? >> thank you, board of directors.
jim patrick, patrick and company in san francisco. on page four, we have a contract compliance officer and that position is vacant. data point. on the market -- on the leasing commission, we have a budget item of $2,600,000 that will not be ongoing because we'll lease and we'll don't pay that. that is important. operating revenues, we're talking about operating revenues of almost $13 million. and i look at our staffing. i fail to see a marketing director, someone who's going to be a salesman, someone who's going to sell the transit center to everyone, including our potential funders and including other people that come in here. i think that is a big gap.
i don't know about you, but the first thing i -- we have a phone -- [phone ringing] we have a company, we hire a sales manager and we have to go out and make a call. we need sales. we need excitement. we need excitement about the transit center. we want more people coming down because that will increase our lease ruff gnu. we want more people coming down because of more transit riders. we want more people coming down because it will increase the demand for the train box -- not the train box, but for the train to get built. i think there is a big gap there. i encourage you to rethink this budget and include in there a marketing or sales director. in case you forget, can you say t-j-p-a, go transit! thank you. >> was that your application for the job? [laughter] or audition. [laughter] >> all right. that concludes members of the
public that wanted to comment on that item. we can go ahead and call your next item. >> yes, plea. >> item 11 is approving the draft for federal fiscal years 2019-20 through 2021-22. authorization of the release of the draft adpl30-day public review, 30-day public process and small business enterprise small participation goal. i have all the mouthful once. >> it is. another one. so, we're asking you to approve d.b.e., a disadvantaged business enterprise goal and release it for 30-day public review. it is a requirement if you have f.t.a. funds and you have to have a goal for three years if you intend to spend more than $250,000 in federal money. we have a very small amount of f.t.a. dollars left, but for good measure we wanded to go ahead and set a new d.b.a. goal for the next three years and if
phase two stars up, we wanted to make sure we had something when phase two starts up. i apologize. we wanted to have something in place and seeing that we got more federal dollars. any questions? >> all right. questions? >> move for approval. >> second. >> the first and a second. members of the public wanting to comment on the item? [roll call] item 11 is approved with seven ayes. go ahead and call your next item. >> yes, plea. >> item 12 is the american public transportation association peer review update. >> director, this would be a team effort presentation. jeff hoight assistant vice president with technical
services innovation with apta will introduce this item. jeff? and i want to thank team and you'll see their work product did an excellent job. >> good morning, directors. thank you, mark, for the brief introduction. my name is jeff hyatt and i'll forgive mark for mispronouncing my last name but i'll mess up his last name as well. which is why i call him mark z. [laughter] but we appreciate the opportunity to present the findings from our peer review panel to you today and i'm going to talk a little bit about just what our peer review process is and then let the panelists go over the observations and recommendations that came out of our review a few weeks ago. just real quickly and i guess i should briefly say, i think you're aware of the american public transportation association, we are a 1500-member association that represents the transit center. some of