Well resume the meeting. This meeting is now in session. Item two, opportunity for the public to comment on any matters within the jurisdiction that are not on the agenda. Good morning committee members, im dr. Derek kerr, a whistle blower. Why do organizations retaliate against whistle blowers . Its because whistle blowers have inside information about wrong doing and there by represent a threat. Whistle blowers are viewed as Insider Threats. Unfortunately the Whistle Blower Programs Quarterly Report issued in december includes a bulletin warning about Insider Threats. We are told these are employees who negatively affect organizational assets. That definition could qualify whistle blowers as Insider Threats because it depends on who defines what is a negative impact on an organization. The term Insider Threat is derived from National Security programs that were installed after the Chelsea Manning and Edward Snowden revelations. Importantly, it applies to intelligence agencies that handle classified information, not to city agencies that handle mostly public records. This bulletin targets disgruntled employees without the difference of those who want to fix a problem and those who are criminals. Even speaking out is labelled as a red flag. The bulletin doesnt mention non disgruntled managers who contented contentedly harass subborednants, although they are true Insider Threats. The Whistle Blower Program promotes retaliation and deteres lawful disclosers of misconduct. So i hope youll Pay Attention to this idea when the whistle blower presents to you at the next meeting. Thank you. Any further Public Comment . Item three approval with possible modification of the minutes of november 20th, 2017, meeting. So is there a motion to approve . I move to approve. Second. All in favor . Aye. Public comment. Public comment on the minutes . Seeing no Public Comment, the minutes are approved. Item four presentation from public works regarding the 2008 and 2016 health bonds and possible action by the committee in response to such presentation. Can i go ahead, are you ready . Yeah. Good morning members of the cgoboc committee. Im here to give improvement Bonds Program from 2008 and health and safety from 2016. Let me go ahead and start with the 2008 program first, its a little shorter and hopefully wrap that up quickly. In this first slide, just wanted to point out that the original bond authorization was 887. 4 million, the new amount of 900. 2 million reflects additional interest acure for 10 years and has been appropriated to the bond program. For all intended purposes, the rebuild bond program has been completed just as a quick recap. The zuckerberg General Hospital was completed in may of 2016. Patients moved in and then the final project close out was completed that same year in july. The last remaining task before we can close out the hospital project at least in terms of oshpod is final reconciliation of permit fees and at this point, the team is working through the documents to get that completed most likely the First Quarter of 2018. I want to mention one item, there has been ongoing litigation between web core builder, the general contractor and one of the subcontractors. Web core builder has served the city with a cost complaint, primarily due to subcontractors claim of errors of omission. At this point, the claim has been forwarded to the City Attorneys Office for further review and direction. Just a quick recap of some of the accomplishments beside the new hospital being completed, the team has also been progressing three of the larger projects including the San Francisco building five tunnel and connection project, m. P. C seismic upgrade and low voltage installation project. All three are in project closeout phase. And the teams goal is to close out all three projects by First Quarter of 2018 with the remaining funds in the project, the team continue to work closely with the department of Public Health on any additional projects that involve operational enhancement and or patient safety. And then just moving on to the last slide, the only thing i want to point out, the total expenditures to date is 98 of the bond authorized to date. As i mentioned earlier, the remaining funds will be used to closeout the project, primarily focus on the permit fees as well as delivering any additional projects requested by the client. Should i go ahead with the 2016 or wait for questions for this program . Lets talk about 2008 first. Id like to why dont you start first. You know, i didnt have questions joe, i just wanted to report to the committee on the phone discussion we had last week about this project and closing out there of. I want to elaborate a little bit more on the subcontractor claim that is outstanding from khss, joe . Correct. Against web core and the action that web core has taken to involve the city. Im just going to say based on what joe told me, it doesnt sound like a real strong claim. Joe gave me the contact name of the woman, the person in the City Attorneys Office, elaine oneil. Ken, do you know her . Okay. Ill talk to you later then, about the scope of the claim and it sounds like whats called a total cost claim and theyre going to have a real hard time prevailing with that based on my experience. So as i said, i will follow up with ms. Oneil with the particulars and follow up. What is the total financial risk of this claim . 1820 million . Thats correct. Thats an estimate. I have not seen the actual documents from the subcontractor but there has been discussions of up to 18 million claims from the subcontractor. On a subcontract worth about 100 million . Thats correct. They have a tough road. But this is not a risk to the bond program itself, the bond program doesnt have 1820 Million Dollars left. Is that interpretation correct . Anybody know . I mean, i was just looking at this, its june 30th financial report. Back then there was a balance of about 12. 2 million. I can quickly talk about the 12 million remaining in the project, the biggest portion of the 12 million is for set aside for soft costs, for remaining project management and the permit fees. We anticipate about 34 Million Dollars of fees that need to be paid out still. Whats remaining outside of the 5 million is about 3. 6 million for construction contracts. Theres about 3 million of additional setaside for fall on projects and then about 3. 2 million of funds that are setaside for audit, csa services and another 1. 1 for program contingency. Do we know the legal fees being paid to pursue or defend against the claim . Are those being paid by bond funds . To the extent that the project Program Still has funds, we are allocating the City Attorney fees toward the project. This is my observation, in the very unlikely case that this suit against the city prevails, i would think that the contract is really between the contractor and the city. They dont care who pays the fund. If we have depleted the bond funds i would assume it goes to general funds, im not a lawyer, but were all at risk here. Further on that, the claim that brought is against the general contractor, i would say a good part of the exposure is to web core and not the city. Web core has named the city but it doesnt mean the city has that much responsibility inevitably. Even if its 5 of the value of the claim, they would name the city. A number like this, and given that they have already had some change orders that web cores that given via the city, the city has given via web core some change orders to kksns, this is a total cost claim, you guys have abandoned the job, im speculating a bit. Based on what i know, it will be hard to prevail. But again ill follow up with ms. Oneil. So given that brian is following up on the last issue with the bond and talking about it for about 10 years, i would like to propose that this doesnt make our agenda again unless brian brings it back with this issue. Ill follow up but i think we have heard from joe that theyre really close to closing it out, even though the final amount of close out with oshpod, any other agencies . Not to my knowledge. And the hospitals and service. Thats correct. Only. Thats what we like to hear. And has been for years. I think its agreed that pending this report that you talked about earlier, what is the next step we would deem to formally close this bond. The project on the bond. I think we had a final closing report in the past . I would have to check with our auditors to see if they scheduled this one for a closeout audit or anything of the type. Tonia will be here later this morning and might be able to let us know that. That would be the last item that would logically come to your calendar. I think the decision of this committee is pending anything that blows up, we will follow the normal kind of bond closing procedures that would be in reporting style and not be presented to this meeting for this discussion. Agreed . Yep. Sounds good to me. Thank you. Im done. Okay. So with that said, let me proceed on to the second half of the presentation, the 2016 Public Health and safety bond program. Good morning again. The public Health Safety bond program quickly consists of six project components that span across three departments, Public Health, Supportive Housing and the lions share for dph of 272 million, homeless support housing 20 million. Moving on to executive summary, the teams have been continued to focus on completing the design and permitting of the various bond projects with the goal of starting construction this year with the early part of next year, including seven of the 19 core projects that are part of the zuckerberg component. There are six fire stations in the neighborhood fire station component and 440 turk street for the site of the new homeless resource center. In terms of next bond sales, the team is working on the cash flow analysis so that we can sit down with the office of Public Finance and talk about the next bond sales. One of the risks in terms of risks for the entire program i think continues to be unprecedented bidding project that all projects are seeing probably due to lack of sufficiently skilled trained individual and subcontractors bidding. And the recent fires have made the situation worse because its pulling contractors to the north bay. Another risk that weve identified thats putting a strain on the Bond CommunityHealth Center component has to do with the poor performance for many of the existing Community Health centers. This poor seismic performance is necessitating the need for projects to add seismic retrofit as part of the base scope for projects at this point. And jumping to update for each of the individual bond components. First one is the zuckerberg hospital component. Overall budget and schedule remains the same as previously shown. Expenditures have been fairly low, primarily because activities have been on the design phase of all the projects. The team will be starting construction in the First Quarter of 2018. We currently have two projects that are in the award phase one is ready to be ntped, the second project which is right on the line of being awarded, unfortunately weve had to deal with a bid protest, so we had to rebid the project. This is our first time rebidding, were in the process of dealing with the bid protest again, only have two contractors, so you can kind of see the bid environment at this point. So thats the two projects for zuckerberg. The team is working on rsq, were intending to on board a construction manager general contractor to help deliver the next four projects, including seismic retrofit, Department Relocation and it infrastructure. All four projects amount to about 3040 Million Dollars of construction scope. The idea behind using the cmgc, minimizing schedule impacts to hospital operations. The zuckerberg component is completely different from the rebuild program primarily because all the work were doing is in a functional hospital, every project we deliver requires close coordination with the Clinical Operations and theres a lot of call them domino affects, in order for one project to start, it requires others to get out of the way. Were going to have the project is working on a lot of enabling projects that in order to allow the Construction Projects to proceed. Moving on to the next slide, this is the southeast Health Center component. Its located off of third street and keith street in the bayview neighborhood. The team is working on the design phase of a new two story 22,000 square feet new building adjacent to the facility. Construction anticipated to start in 2019. Here is kind of the most updated rendering we have for the new building whereas as a matter of fact this afternoon well present to the city Design Review for the first phase with cdr. Okay. And moving on to the Community Health center component. Theres two projects that the team is primarily focused on currently. Cash emission Health Center at 17th and pawn and maxime hall at pierce and ellis in the western edition neighborhood. Both are targeted to Start Construction december of 2018 in a couple of months. As i mentioned earlier, one of the huge impacts or risks on this component is the fact that we have added seismic scope to both Health Centers. Both projects have been deemed to be a seismic hazard rating of three plus to four. Four is a building that is subject to partial or total collapse in the event of a major earthquake. We did similar assessment on chinatown public and the results came back very similar with seismic hazard rating of four as well. So what that means is chinatown public will most likely be deferred to a future bond project so the team can focus on delivering a complete project for cash emission on maxime hall. Moving on to the facility, i do want to point out this slide does include a revised component budget 48. 6, showing allocation of 5. 1 to the fire station to adf allowing the team to deliver a complete adf. The original project budget was inadequate, it didnt include enough funds to address the conditions and market condition risk. So the team has been working closely with the neighborhood fire station project manager and the Fire Department so that the 5. 1 million can be allocated to adf. So at this point, the adf project is moving to 100 construction document in the Second Quarter of 2018 with construction to start around august of this year. And then moving on to the neighborhood fire station component, likewise, the project budget shows a reduction of 5. 1 million which has been allocated to the facility. Overall, the Fire Department budget remains 58 million, there really has been no change to the overall budget, just more of a reallocation within the two components. At this point, there are six fire stations identified for the seismic improvement, which includes the host tower removal scopes. That will then improve the earthquake performance of the six fire stations. The next big milestone, because of some historical issues associated with the fire stations, is to go through an Environmental Impact report process, which will take approximately a year to be completed and with that approval will allow the construction to start. And then the last component well talk about today is the homelessness and Homeless Service sites. The current project thats been in development for a while is the 440 turk street, this includes the purchase of the area of the space i guess. And also on board a designbuild contractor to help deliver this critical project. The current schedule is to have the rfq advertised by the spring of 2018. And then the last slide i have is a slide regarding the status of the budget and financial plan, as i mentioned earlier, look at the percentages across the board of the components, relatively low and the reason for that is because its primarily driven by expenditure toward design fees. As we move from design to construction, there will be a ramp up of expenditures for construction contract that will be awarded. So at this point, that concludes my presentation for the Public Health and safety bond program. Im here as well as other members of my project Management Team that can help specific questions you have about each bond component. Joe, i wanted to get a quick review of what is included in project controls, you have that pie chart. Okay. Is this in general or particular well, i have to say in general, it looks like the range is a quarter to a third of the construction costs. I wanted to see what was in there. So in project controls, this is everything outside of the construction contracts. So it includes all the design fees associated with design of the project, includes the Construction Management support services, which also includes additional inspections, whether for special inspection, in particular for the oshpod components, theres a laye