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tv   Government Access Programming  SFGTV  June 17, 2019 5:00pm-6:01pm PDT

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out with confidence. so there was multiple levels depending on the type of weld and access to the weld and that is why we opened up so many so we could have that very high level of confidence. >> who would be the consequence should one of those welds at some point in the future since you said they were identified because they are susceptible to being brittle if at one point one of those in the future developed a crack or failure. what would be the consequence to the structural integrity and the building. >> i could probably defer that to dr. vecchio if needed, but it was determined even if there is -- because these welds that we ended up looking at especially on the bus tech were related to seismic type elements because we are looking at the welds, just the transitions between two pieces and it wasn't base metal that we were looking at. just a weld transition. so it was from strictly seismic concern that we were looking at.
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it was not -- it wasn't from a load bearing element. >> so after a seismic event, but would likely re-inspect the welds. >> there is a program of inspection that we're in the process of working through and that you would have an engineer and we would include those probably locations as part of within 24 hours and any large structure to re-review. >> right. and then to the mon the organize and we know what we know now and the building will wear over time to be subject and that is excellent. and i hope it is as comprehensive as makes sense. have you thought about how to report the results of the monitoring to the public to the board on a regular basis? and it would be help fg not in a technical way and the high level
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and green, yellow, red, and some way of communicating on an ongoing basis that were monitoring the structural health of the building and that it's okay and we found an issue when we're addressing it. >> and there is the first milestone when we get the monitoring up and running and start having buses run, there will be a correlation to confirm that the original design assumptions and the effects on the structure versus what we are reading and would probably be a milestone point and maybe that would be a point that we could get an update with that kind of information. >> i would suggest that whatever the initial milestones and on an ongoing basis, the information that popped up on the website somewhere so that we're being transparent and any lingering doubt cans be assauged by seeing that we're monitoring and everything is good or monitoring and when we see an issue we're addressing it.
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>> we can do that. i want to point out that the monitoring was over and above and we have no reason to believe that there is any issues whatsoever in the building itself or the retrofits. and like dennis mentioned, we had the area opened up. we took the opportunity to put some string gauge in there just to monitor. but we can put it up on the website and also is green all the time. >> sure. >> and i want the public and sta f to recognize what an incredible job that you have done and i was very adamant about the importance of regaining the public's confidence and the reputation and the peer review panel, l.p.i. and staff's vigilance combined with mttc support really has achieved that goal that we established.
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i am comfortable going back and excited to get there. i don't want to contradict myself and i am an operations guy and i like contingencies. i would encourage us to hold on to the temporary terminal for a few months to ensure there is nothing else that might be there so thank goodness we had the temporary facility and congratulations. it is a good day moving forward. >> thank you. any other director comments? thank you. >> item 7 is the facility operations update. >> thank you for presenting this item. mark has been working with the operators as well on the transitioning back to the southwest transit senter from the temporary terminal. >> good morning, directors. martha valez. today's update will cover four areas and an update on activities associated with
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reopening to include operations and security, a brief summary on the kaiser release transaction on the consent calendar, general retail update and a brief summary on tenant improvement work. the bus plaza is baseball and the ceiling tiles were reinstalled and removed for the plumbing andt.i. work and plumbing lines to the vacant spaces to not reopening the ceiling. and also this week, the area is being thoroughly cleaned to include restrooms and offices
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and the fending machines will be restocked. >> the areas are stocked with tenant improvement activity. the tenant improvement activity to the topping slab on the second floor. and this work will be completed by the end of june. with regard to web core, they are moving quickly to put things back together. any material needed for work beyond june will be placed in the center island beyond the yellow strip. some of the work is putting back the ceilings and column covers. so the general plan is to use the beginning of august to thoroughly clean the bus deck so it is pristine for riders. and the tjpa was sent the formal
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communication they will not be leasing the second floor space from tjpa. the talk is for a couple of bus bays on the bus deck discussions continue. >> the next few slides will cover fail fails and security operation -- will cover facilities and security operations. with lincoln t primary staff reductions were in cleaning and building, engineering, and maintenance. with building, engineering, and maintenance, we started out with 10 ftes or staff and are up to eight, but will not increase staff at this point until the commuters are back. we will not automatically go back up to 10 but carefully assess at that point. with cleaning, we started out with staff in excess of five per shift. this was reduced down to two per shift. we are now back up to three for ramp up. and on opening will increase to
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five per weekday shift with less on the weekend. and as with engineering and maintenance, we'll pause at that point to assess when the commuters are back. with regard to service contracts, key contracts remained in place throughout the closure. those with, of course, engineering and maintenance, cleaning, escalator, elevator, and pest control. and the fountain services, the service provider and a host of on call vendors such as plumbers and electricians. cleaning for the entire center is underway and the website has been relaunched as christine mentioned. saleforce transit center dot com. i al going to go to the digital media. with regard to transit information on the digital kiosk, a brief overview. there are three areas related to
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the digital kiosk. it is static information, like maps. the commuter information, which includes schedules, fairs, and bus assignments. and then the interactive screens. so starting with the interactive screens, these screens are located in the grand hall. the bus plaza and the bus deck. in general, content will be available by touching the screen to include maps, way finding around the transit center, and transit center stakeholder content. the stakeholders in the transit sent rer the operators. the tjpa and then eventually the retail tenant. much work has occurred over the closure to design and refine the structure of the interactions and it will be live on july 1. however, even though it will be live on july 1, refinements and enhancements will continue as we settle in and understand the user. with the static information, it was in place when we first opened. and muni is working closely with
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pearl on minor adjustment which is will be completed in early july. with a.c. transit f any adjustments are needed, the deadline for content to pearl will be communicated at the monday operator meetings so that pearl has enough time to load the information and be ready for display in early august. and with regard to commuter information, muni and pearl are working closely to be ready in early july at the bus plaza with a.c. transit for the bus deck and similarly will communicate deadlines and work through the information at the monday transit operator meetings. with other transit operators, they have been working through a.c. transit or muni and the information is also incorporated. >> with the park, i am going to focus on the programming. by july, brb will have the core schedule in place. this is about 20 programs a week
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that regularly occur, like fitness classes, toddler tuesday's, crafts, hobby, and live music. also in place will be the games, the reading room, and the art cart. and example of other activities that the r.v. is working on are the silent disco, salsa dancing, and live music. and booking bees and signing contracts was dependent on the announcement of an opening date. in particular, this first week will be special because of the fourth of july holiday. with regard to access to the schedule, even though the website is live, they need a few more dates to load the information on salesforce transit center dot com. lincoln is working with an organization called hubert who is affiliated with off the grid. and cubert is depict and the bottom right-hand of the slide. this is currently on the ground level in front of the grand hall facing salesforce plaza. and is a new type of
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self-contained mobile unit being piloted at this location. the general plan is to place three units on the park about the first week in july. however, the date is somewhat fluid pending all the appropriate permits from the health and fire department. as noted on the slide, the food trucks will return. and the other amenities will be activated and recall that the vending and the the operators when we first. and decisions underto activate them and to turn over to sidney
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for update on security. the director of security and the preparation and reopening and the sport wills provide and and we would like and before martha continues. >> question? >> director hursh. >> the public and the riders were quite vocal about the clipper machine when we moved. it sounds like we're going to be in two locations for six weeks. there is a plan for clipper ad value to either get it back in the facility or have machines between the temp terminal and the facility?
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>> it to follow and there's two machines and we may move one and lever one in the temporary terminal. >> and we will discuss that. >> thank you. director? >> with regard to amtrak, small question, what are you going to do with the space that you are anticipated to use and now not going to use? and concerning question, is there a risk that amtrak and so that happened a while so change the model and they were going to to reduce the footprint by a couple of ticket vending machines in the passenger area and that is no longer the plan. in terms of the risk,
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negotiations are going well and that is between a.c. transit and amtrak. >> my only comment would be, if you think pg&e is slow, you should work with amtrak. >> i think it would be nonacceptab nonacceptable if we build this center and folks can't access the main commuter center on the east bay. >> i think they are working closely. director hursh, i got the impression that they are very close. >> that is good to hear. >> thank you. >> i had a question. thank you for the report, and i assume that the costs as we have discussed previously at the board are being track and eventually that the director can bring the report back to the board about the full range of financial impact from the process that we can follow up. >> yes.
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>> and i will move to the leasing update at this point. this slide is a summary of the kaiser financials. it is in all aspects a good deal for the transit center with above performer rent and below performa expenditures as demonstrated by the overall proceeds of $1.9 million and if you can see by the graphic, they are in the vicinity of the greyhound space and it's a 10-year lease. it's about 4,000 square feet. its medical offices at the c.a.c. meeting on tuesday night were asked if it was urgent care. it is not urgent care. it is not an emergency room. it is a basic primary care facility. and on the backside of the space
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will be the doctor's offices and the front side will be exam rooms. you have seen this before, although i slightly modified it. it is a summary of the retail activity at the top box is current where we are currently. and whereas the bottom box is what it will look like when the kaiser deal is finalized. and so that will be, then, at 59% occupancy of the square feet will be leased. of the spaces, it will be 39%. and at the annual base rent will be at 62% of base rent as compared to the original projections and that is what will be realized. this slide is the leasing report shown when we last met. however, it was updated as part of the fiscal year 19-20 budget
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process so the final budget presented by erin reflects the general information. the kaiser lease is shown in the second quarter of 2019. this is the leasing activity on the ground level as of about a week ago. the logos indicate the signed leases and this is for the ground level. two sales copies -- the tycoon kitchen, per diem, charlie's cheesesteak, and eddie rikenbachers. the rest are in various stages of discussion and negotiation with six really solid prospects that are on track and we think will come to fruition. these six represent about 10,000 square feet. in addition, another two for about 9,000 square feet are considered serious. so we're expecting to bring
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anywhere from 1 to 4 leases to the board in july. this is the second level and mention this at the cac at the meeting tuesday night, there was a positive reaction. this floor is shaping up nicely with fitness asset, on site dental, and kaiser. not shown are early discussions with a nail salon adjacent to on site dental. finally, this is the roof level. discussions with the full service restaurant are progressing with the letter of intent in negotiation. for the cafe pad, this operator is also in discussions for a space on the ground floor and we are considering this one a serious prospect also. this is the last slide. it is a brief snapshot of the
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tenant improvement work. i will have a schedule next month that will reflect the fiscal year 19-20 budget. under active construction are fitness sf, on site dental, and phil's, and the topping slab. the rest with in various stages of design and/or refining the construction budget. any questions? >> questions from board members? thank you. >> thank you. >> all right. go ahead and call the next item. item 8. >> 8. >> citizens advisory committee update. and i believe chair holtz is with us. >> citizens advisory. >> good morning, directors. i'm derek holt and thank you for continuing to hear updates from the tjpa cac. given the announcements monday
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and tuesday regarding the planned reopening of the transit center, the meeting tuesday evening was exciting and joyous. we're exstat that i can the center will soon will opened with a clean bill of health. and the hats are off to director zabaneh, dennis, ron, the review panels, and of course, the tjpa board of directors, yourselves, and everyone else involved with the review of the transit center's safety and the re-opening including the mayor's office. we appreciate the positive flow of information that began to be provided monday and tuesday, including the metropolitan transportation commission's independent peer review panel, and the conclusion by thornton, thomas eddy incorporated that the structural framing is sound and the new transit center can be placed back in service. the staff report given by christine walked us through the initial overview of the communication plans which you just heard, which sounds like it's right on target with key details and using some of the same effective tactics that worked last summer, including the ambassadors, the email
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blasts, social media, etc. from a retail perspective, the cac was very pleased -- -- very pleased with the commitment of kaiser medical offices to be located in the transit center. we feel like there is a growing underlying theme of health and worldness when you consider the fitness club, dental office, medical offices on the second floor and the walking path and yoga type activities on the rooftop and sounds like it will be a destination place for many. we appreciate martha's retail update and projections of when the transit center retail space will be fully lease and we appreciate the comprehensive security plans being put into place by sidney security team. and we're confident that the security will be appropriate not only for the transit center, but also for the surrounding community as well. the cac did have questions regarding the significant cost of insurance from a capital budget perspective, but those were eloquently addressed by the chief financial officer, but gosh, those insurance rates are
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kind of high. from a construction update perspective, and the facts regarding the 47 weld points presented and the cac also appreciated the additional information regarding the 175 weld points. during the past eight months plus there has been a couple of requests regarding some type of structural safety monitoring system, and so of course, we're pleased to hear that one is being installed. and just to wrap up in closing, the cac is ecstatic that the center is being reopened soon. hats off to everybody and excited about the clean bill of health and happy that this facility will bring commuters, residents, and visitors of san francisco and the entire bay area to the area. and we did have a couple of four, five closing thoughts and with the center being closed since last october, questions of clarity continue to be raised regarding who will bear the numerous costs of the closure and repairs stemming from the cracks in the steel plates. and we're grateful for the
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update and the rooftop walking path that we have asked about in the past and sound like this will be a great improvement in repair. we are looking forward to further updates and details from the peer review panels that assess numerous elements. and we're looking forward to bus service through the transit center including reliable service to treasure island and the east bay. lastly, looking forward to progress with the phase two. >> thank you for your time. >> any board member questions? thank you for your report. >> thank you. >> all right. go ahead and call the next item. >> yes, please. >> item 9 is public comment and members of the public to address authorities for matters not on today's calendar. we have not received any notification that the pub have requested to speak. and can move to the consent calendar.
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>> move approval. >> second. >> first and second. the director chang? director lipkin? director sesay? vice mayor ji? and that is seven aye's. the consent calendar is approved. go ahead and call the first item on the regular calendar. 11 is the presentation by the metropolitan transportation commission peer review panel on the temporary closure of the salesforce transit center. before he starts, i want to thank m.t.c. and stephen wolf for helping with this process. m.t.c. was invaluable and managed it very well to go to
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the -- to get to the point where we are. >> executive director at m.t.c. the m.t.c. appreciates the trust the mayor has put in our assignment, and we put the assignment seriously. we stated we would be expeditious and thorough and stated we have met the goals directly. there is remaining workk to done in terms of completing reports and addressing completely areas of interest they were identified by the peer review panel. these are not necessary to support the j.p.a. decision -- the tjpa's decision to open the facility. m.t.c. will follow through with the complete assignment including assisting the peer review panel with providing input to industry. we believe there are several improvements to be made to the various code requirements to help the industry avoid problems like this that have contributed to the closure and affected other significant public work projects in the bay area and across the nation. we have been clear that our
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assignment does not address culpability and that that requires more thorough and independent review of the contract and the contract administrative efforts that are outside of the assignment. and we are also very supportive of the tjpa's team and the contractors using the dispute review process outlined in the contract. for the ultimate resolution of that dispute. finally, while i wanted to mention that the jpa has reimbursed the mtc for all the costs supporting the panel and the panel, the fhwa and m.t.c. have provided their support services with no indication or no interest in reimbursement. we think that is part of our assignment and responsibility. and i do as mark mentioned want to thank steven wolf of m.t.c. staff for his work in managing the work of the j.p.a. team and the peer review. and he successfully navigated a very difficult path through at least three time zones an kept
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the progress going smoothly. and for their efforts in getting us to this point, mark provided incredible support and they were really dedicated to the problem and they worked all hours and commuted across the united states several times. and just a reminder that they all have other professional tudyes that are part of their -- duties that were part of their assignment, but they were extremely helpful and dr. engleheart has published well in the engineering documents being provided. thank you, chair nuru, for your support, and with that, i would like to have chair englehardt present his update and we will be available beyond that point. thank you. >> thank you, andy. good morning, everyone. what i want to do is briefly review what the peer review
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panel has done to get us to where today and the things that we have left to do before we can answer any questions. listed on the slide here reason the peer review panel that should be done and successfully completed before the center can be reopened. and with the review of the temporary shoring on fremont and first street. and with the sampling and testing plan that l.p.i. executed. and the mechanics of the fracture. and that occurred last year that we agree the mechanics and the
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fourth item was looking at calling it the impact of the adjacent elements. with the time the fractures occurred. to reach the low dynamic effects and is a sudden failure with the thorough analysis and we concurred that there is no collateral damage from the fractures. >> the fifth item is agreeing on the repair strategy with fremont street and i will call it the retrofit for first street. that was all successfully navigated in our panel. we concurred with how that was designed and installed. and another one is time consuming and having looked
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thoroughly and to look at the transit center and the unique conditions at fremont street that led to the fractures and really heard today and many things were looked at and many spots were opened up. and it was a very, very exhaustive process and undertaken by tjpa, and thornton lpi and many discussions on the 47 different elements. and just mentioned the last of those were closed out a few days ago and since then we have been documenting our concurrence. so i am happy to say at this point our panel concurs with tjpa and the as a result that the structure is safe and ready for reuse. so we are quite pleased with the
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final items and slight documentation and one is l.p.i. is finalizing the detailed report and the cause of failure and are going back and forth and no disagreement to feel the report should be thoroughly documented and is the key technical record of what happens and what happened here that will allow industry to consider improvements and so we're just working with l.p.i. to make sure and another item mentioned today and is the re-assessment of fatigue for the steel structure. another design consideration with the start of the process
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and that can be done after the center reopens and takes decades to accumulate the final damage. and tjpa and the team will present a plan on how to assess the redesign criteria and the peer review panel will concur or go back and forth until we concur on that plan. and let tjpa and the consultants execute that plan. the last thing is a to provide a report from the pan toll m.t.c. and to the public with the lessons lurned and the recommendations and things we think the industry and code writing committee should be considering to try to reduce the incident in the future.
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with that i could be glad to answer any questions. >> questions from the board members? >> i would like to thank the peer review team for the great work and great insight on this facility and the m.t.c. also for leading the effort and to learn about the building and quite a few things that we have learn and are putting what is at track and appreciate that. >> very much want to echo the thanks on behalf of the entire organization with the dedication and the m.t.c. and your work and very much appreciate how hard you work under the tight time lines and the sheer amount of embassy range of activity
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represented by the six tasks. thank you so much, director zabaneh, for making this happen. >> all right. go ahead and move to the next item. >> adoption of fiscal year 2019 and 2020. operating budget not to exceed $$38,719,021. >> good morning. i hope you enjoyed all 21 pages of the staff report and the pages that go along with it. it's great reading and very interesting to all of you. today i am back to show and update you on the proposed final operating budget. i'm sorry. i should have introduced myself. erin roseman, chief financial officer. i assumed you all knew me, but i am sure there are a few who
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don't. and from the capital budget and the operating budget aseems we will be in full operation on july 1 and that that will be true from the last meeting in pay, a couple of changes to increase the revenue and expenses and i will go through how we got there. in the revenues, a decrease of $152,000 and c.b.d. park payments with the reduction due to the proposed budget taking it down to their number. but since they have developmented their budget, we found out that they've added an additional $300,000 that will be able to reimburse the more
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expenses. so to aprove of the expenses. and additionally we have increased the contribution from operators by total of 486. and that increases due to insurance increase on the expenditure side. all the other revenues remain unchanged, so it was 1% increase from the may draft budget to the proposed final. and in terms of the operation expenses, you can see the corresponding numbers and the revenues and expenses stayed in sync. and the additional $486,000 in insurance. to go to market to get quotes, we were told that the natural disasters and hurricanes, tornados, wildfires, the cost is
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being passed on in premium to new policies and so that was the main source of the cause. a 48% increase from last year. and $1.5 million from $1 million. >> so in response to a question we got last month, you wanted to know about the cash flow. so i modelled a worse case scenario cash flow and if the revenues are lower and the timing of payments are slower and expenses are 20% higher. and we still are solvent and can make the money flow work. awe thank you. >> you're welcome. >> and providing a three-year operating project. and on this slide, you will see that the bars are revenue and the lines are the orange line is
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expenses. the blue section of the bar are revenues that are operating revenues. the projection reserve balance and you can see the revenue and expenses match. this is concerning for some and the operators increases significantly so that shift and drawing down the up front neighboring rights. so in 1920 and and the contract and picks up back up in 2022.
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that is the measure major shift in revenue distribution there. and notice that 2021 the total revenue and expenses will decrease a touch and that is due to the leasing commission's up front payment and done in 1920 and so that expense goes down. >> the red line is what. and the financial policy and the goal for reserves. and you can see how it compares to the yellow section. so for the capital budget, our capital budget assumes phase two is fully funded. >> and there's only one modification for the 19-20 capital budget, and it's -- we've gone up a million dollars
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from $99 million overall to $100 million. and that is the revenue has been increased in the cfd bonds from $62 million up to $63 million. >> and here's a more detailed itemization of the revenues that we expect for the capital. >> and in terms of expenses, the extra million dollars is shown in construction management and where it went from 2.2 to 3.2, but still a small percentage increase of the overall capital budget. >> and to kind of refamiliarize you with the expenses in capital, there is tjpa admin, salary benefits, professional services including legal and financial advisors and legislation and such.
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>> and professional services geared towards the construction part. and so we have pmpc, the downtown extension. and the construction management cost and the administrative task and closing out the phase one. and finishing the punch list and getting us through december of this year. and a little bit of a contract extension for them to get us through the final closeout of phase one. and then the construction of $64 million and the majority of that is the still the final close out and then the improvements. >> and we're requesting $31.2 million draw with the program we serve.
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and the reserve and if the requests are approved. and there was a table that shows you where the program draws are immediated in comparison to the budget. and then a history of all the program reserve draws that we have had so far. >> and are there any questions? >> director reiskin? >> i did read the report and largely enjoyed it with a few exceptions. >> of course. >> one was i share the cac's dismay with the insurance jump. it is nearly a 50% increase which i guess not surprised we're experiencing some of the same, but that is unfortunate. with regard to the discussion that we had last time about use of reserved and contingency and thank you for addressing that
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and the report. i still think that the logic of what -- or my logic still holds in terms of matching the amount of contingency with the amount of reserve on the revenue and expenditure side. i saw that the cfd revenues and the insurance is what it is. and cars with regard to rm3 revenues. and so what i would recommend is that we reduce the amount of contingency on the expenditure side down to the amount of
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reserve we are using on the operating side. we're proposing $3.4 million of con sdwrin si on the ex-- contingency on the expenditure side in the operating budgets, and $2.0 use of the reserve, so i would recommend on the expenditure side we reduce to 2.0 which would be a redestruction of $1.38 million on the expenditure side. i would recommend we reduce the operating contributions by that same amount. because basically what is in the proposed budget is we're funding a contingency in part from the reserves and in part from up front operator contributions. so what in effect you are asking the operators to do is reduce their budgets and the services that they are providing to the public. in the event that tjpa needs more money at some point. i would suggest as i did last time that should we get into a position that tjpa needs more
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money next year, that come back to the board and at that point seek funding from the operators or maybe there will be other sources at that time. so i will remake that ask, i guess, in this case in terms of a motion to amend the proposal. >> director reiskin, i thought we did that. i thought once we go # 50%, and deplete the contingency, we will ask the board for approval. >> so planning to come back to ask for that, then what i am asking is that you don't ask us to pull the money out of our operations in advance. >> i see. as long as -- >> so you are pre-budgeting it. >> yes, because they think we need it. >> i am all for the come back to the board should bit needed. what i am not supporting is the budgeting for it in advance. i get that you are trying to be
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conservative and having a large contingency and i would suggest it is even more conservative to live within the budget and then come back to the board should the budget prove to be inadequate for whatever reasons. so i would make that motion. i will say on the side that i didn't appreciate the fiscal 2021 impact of not having the naming rights, so we probably don't have time to do this now, but an alternative would be to leave the operator contributions as they are, but reduce the naming rights revenue by the $1.38 instead. and reserve that for fiscal 2021. that would be another alternative. >> chair mohammed nuru: that would smooth things for the operators and leave the operators contributions as
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proposed. i don't know, looking at my fellow contributor -- >> i would support your second proposal. i, too, am concerned about the out year. and candidly, we have not afford it. we are not a billion dollar agency. >> well, we can't all be. >> i will retract my motion and i will make a motion that we reduce the contingency on the expenditure side by $1.381 -- that amount. $1,381,700 on the expenditure side and reduce the use of naming rights by the same amount on the revenue side moving that into the fiscal 2021 to help move the operator contributions. >> an i'll second that motion. >> and second the motion that you wanted to make to the director and normalizing the naming rights? that is a very important point.
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and to reduce and to move that amount and one other community and the last slide in terms of use of contingencies and the same discussion with ron earlier. with the number of things that look like they anybody recoverable expenses. we still want the pressure to be on staff and this is really kind of back to the construction folks to do whatever we can do to cover the construction expenses that many appear to be related to the closure. >> the reason that ron showed the e.s.e. and we wanted to be transparentally clear that we have included everything knowing
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that we intend to recuperate some of that and bring down the program reserve. awe thank you. >> yes, director sesay. >> thank you so much for the nice read. i, too, read it and appreciate and echo director reiskin's comments. i am not as familiar with the rm2 and 3, but you seem to imply that it's possible and they will get it this year. and i am thinking what the structure is. and on the city side for revenues and projected and uncertainty on reserve. what is the internal process in terms of managing that if it doesn't come? and secondly, i am curious about the community benefit and wanting to understand what led to that reduction. is it projected assessments being lower?
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is it a concession that you agreed to? so the c.b.d. is supposed to fund that and i am concerned if there are -- i am wondering if there are concerns that it won't be a reliable stream and tjpa potentially will have to subsidize. i know it's a lot. >> okay. so on the c.b.d., their proposed budget had the $1.6 million number in there. when i did the draft budget, i didn't know the exact proposed budget. >> okay. >> then i knew what it was and matched it. once they adopted their budget on monday, then they actually increased the number. so there was a little bit of opportunity to get some more. so it's kind of a mismatch in now that we now more information. >> the second question is the
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rm3 money. in the cash flow projection, i am assuming that i didn't get the rm3 money until the last month of the fiscal year so that we could still manage and would be all right without it and we could use our operating reserves or whatever we needed to throughout the rest of the beginning part of the year until they came in. and then if it didn't come until even the next fiscal year, but another month later, we could still be fine with it another month. and then you had a question about the c.b.d. payment. so i think by formula, they have to -- they agree to 79% of the expenses. our expenses from what we project would be higher than their 79%, and i believe the assessments are somewhat of a surplus in their budget and in their reserve that should be
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able to help us smooth for the out years. >> a question from director lipkin. >> i have a few comments and question. first, a question from director reiskin and director hursh and it seems like the path on the contingency would be if it becomes necessary, you will come back with a budget amendment at that point explaining what need is, but it seems to make sense to reallocate some of the naming rights on kind of the similar vein where you showed that slide. is there a way to also look at whether it's tapping into the reserves or through another method, tapping into sort of the reduction that we see in, i think, 2022 and 2023 and basically smoothing out that curve for the operators a little bit more? i think it was on slide 7 in your presentation if you want to put that one up. so when we kind of look out at those number, they start to
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really shrink afterwards. so besides bringing that amount into this year, can we spread the remaining cost out a little bit by tapping into whether it's the reserves or something else to make the ride for our friends a little bit easier over the next few years? at least something to consider. >> in 2021-22 and 22-23, the increase in revenue is generally -- the retail revenue t sponsorships, the advertising, because we are using initial projections. we assume things will be booming then, but i can't necessarily transfer those over to earlier years. but i completely understand what you are saying about trying to smoothout the other part. >> you can't transfer the revenues that you haven't received obviously. and maybe the idea of considering this is more medium term financial planning is whether it's prudent and if we are depending on the confidence that we have in the revenues at this time and obviously projecting a couple of years, so
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subject to change and that. that these are reserves or other methods that then get replenished. when the additional revenues come in, and then we have a two-year budgets process that we look at in this way that it's a little bit more predictable because i am sure for you guys who have budgets to manage on a day-to-day basis, spikes are a problem versus a smoother curve would probably be helpful. that's just one thing for kind of medium term congratulation. and i think on slide 6, it would be good to explain this as sort of the worst case assumptions that you are showing. i think it would be great to have that somewhere noted on the slide just because you gave us that verbal presentation, but in case somebody is looking at this and this has -- it's really close in some months. and understanding that this is a sort of worse case gives confidence if things -- things shouldn't get worse than this basically. that would be helpful. and then on the last thing i had
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is on slides 12 and 13 and this gets into the conversation around rm3 and other things. it would be helpful to understand which pieces of work are sort of subject to appropriations or funds that have to come in from others and which would be sort of base level of things we have to do versus things we will take on should funding become available. and i know there's at least a couple of things in that second bucket that we would like to do. we think they are prudent and should be budgeting for them, and understanding that they require funding from whether it's rm3 or somewhere else and for us to actually take that on. it would be helpful to have those distinctions made because that gives us a little bit of ability to understand. we're definitely signing up for this and might be signing up to the other things. >> chair mohammed nuru: if you can go back to the first slide on the revenue.
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>> other than that, i think we are good to go. >> okay. no members of the public willing to comment, all right. [roll call] >> that is six time mac. item 12 is approved. >> do we need to vote separately on the underlying item? >> the action was to approve the action as amended. >> thank you. >> i'm just making sure. >> thank you. >> we will gloat -- go into closed session. there is no members of
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>> we are now back in open session. in regards to eight and 16, there's nothing to report. >> very good. thank you very much. meeting is adjourned to a new date in july that will be a different delay due to conflicts thank you. everyone have a great day.
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[♪] [♪] >> the meeting will come to order. welcome to the june 17th, 2019, meeting of the rules committee. seated to my right is supervisor shamann walton and to my left is gordon mar and we're joined by rafael mandelman. i would like michael for staffing this meeting. mr. clerk, do you have any announcements? >> yes, please silent all cell phones and electronic devices.