Way to run a business. Thank you. John par, scott ellis and Herbert Winer who was the last person to turn in his speaker card. Im john par and the new suit is by george yo giorgio armani. This is called justice unsafe at any speed. This book revolutionized the Auto Industry safety and through various acts of congress, seat belts were installed in cars throughout the united states. Then the endline, unsafe at any speed. In this new book, he will highlight how men, women and children and specifically disabled people are sent into the open street to face death while emparking on disembarking into an open street in front of ten new trains every single day for nearly 100 years. There is no safe modern elevated platforms or station on that street corner. The safety of my community has been ignored and seen as normal. We are, as i have said before this board, at the back of the bus. And we are out of mind and out of sight along the end corridor. I am asking this board to allocate 16 million to build a proper elevated train station just like you did for the warriors for 40 million for the first time in my community, the outer sunset. This will be a wonder, probably, to see in the outer sunset and practically beyond imagination to do that. Im also requesting that a lowlevel Improvement Project promised and approved through any sole efforts thank you. To be approved by shawn kennedys team. Sir, your time is up. Thank you. So please have this work done as soon as possible. Scott ellis and herbert winier. Im the new operator of Business Development on the west coast and wanted to take this moment to introduce myself to you and director brinkman, im sorry i missed you at revolution. I just wanted to introduce myself if you would like to see my face around. Nice to meet you. Next speaker. The last person to turn in a speaker card, Herbert Winer. Herbert winer, please spell it weinr on the board, thank you. I had a real problem with the 27 bus last week. I arrive at the bus stop, ok, the bus is going to come in five minutes and then its going to come no one minute and then in less than one minute. And it kept changing back and forth, back and forth and one minute, and it took such a long time to get that bus. Now, you say the 27 is the success. I dont believe so. There arent enough buses on that run. What youve done is youve eliminated the bus stops, kept the same amount of buses for that run and it still runs in a lousy way. So youre not to be commended. Youre to be censored for what youve done and this should be ruthlessly examined because a lot of people are inconvenienced as a rule, but a lot of other people do and a lot peach have e been rudely inconvenienced on that line. So no thank you to the 27 bus line project. Next speaker. Thats the last person to turn in a speaker card under general public comment. Moving on to our regular calendar. Madam chair, moving on to your consent calendar, theyre considered routine. I have not received a request from any member of the public, nor a board to sever the item. Directors, do i have a motion to move our consent calendar . Motion to approve . All in favour. We have now approved or concept calendar and moving on to our regular calendar. Item 11, approving contract modification 122 to contract 1300, phase two, subway station, surface track systems with extended term by 730 calendar day and substantial completion date of june 20, 2020 and pay 31,240,000 for competencable, unavoidable delays in 8,520,000 and making environmental review. And director, the new Programme Manager will be giving this presentation. Good afternoon. Im the Programme Director for the center subway. I will go over this mod and the first light i have is a summary of the proposed modification. It extends the contract by 730 days and it commits the contractor to finish its construction by june 29th of next year. It settles the delayed claims of the contractor, completely as of september 3rd. And it settles the delay claims by awarding the contractor 31. 2 million for the delay. It also directs the contractor to follow on contractors to come in and allow them to do their work while hes finishing his work. And it also says they agree to review the remaining claims of the contractor and subcontractors. So those are the two additional things that we have to examine. It allows the radio and control guys to come in ahead of time. And sets realistic dates for construction. Completion dates as i have mentioned, the substantial completion which means the contractor essentially finishes its construction. The original date was february 10th and then it went on to become june 30th, but now the proposed substantial completion which is a contractual agreement is jun june 29, 2020 and with that completion and the systems testing, dynamic testing, vehicle testing, that takes 12 to 14 month. We should start running train and carrying passengers. We estimate summer of 2021. So that kind of a schedule. The next is project completion dates. Contract value, and this a summary. The original contract amount was 839 million. We have so far throughout the dur augustduration of this contd 8 million in increased scope and changes. And so the current value is 847 million. This contract modification for 31. 2 million added to that mix contract amount of 878 million. So that is the full amount. The next slide shows us what the cost summaries are. The original as i mentioned was 846. The work that has been completed up to now is valued at 730 million, so we have paid the contractor that amount for the work that he has done and just by looking at these numbers, you can see somewhere between 80 , plus or minus of the work, is finished. And the remaining work and the remaining budget the contractor has in the original contract is 108 million. To finish the job, they have to finish the job with the amount of money they have for finishing the job. With the change order which is 31. 2 and when we pay this from the contingency, which is 46 million, we have 50 left in contingency after we make in modification. The next slide shows, obviously, as i mentioned, we have to look at the additional claims of the contractor and the additional claims of the subcontractors. So when we look at those claims and see how much we actually owe, that money has to be found. We have 50 million in contingency and that will not be enough. So the Funding Forces is what is shown on this slide. We work with our staff, a cfo and these three areas are the areas of potential funding to either in combination of one or two or all three see what money we need. Now we dont need that money right now because we are still evaluating the claims. Once we evaluate the claims and we form our own prenegotiating position, we will at least know from our point of view what we think these changes are worth. Then we can sit down with the contractor. Obviously hell be asking for more and once we negotiate, if we can settle, and we know what the amounts are, we come back to you and say this is the additional amount of money that we need. And i would say that the time span i think it would be nice to do it within two or three months. That would be nice. So the next few slides that i have deal with th this and the assignment that i was asked to see, when this can project be finished. So what i did is i did an ec extensive review with my team of the work finished and the work thats left and for each station i examined what are the key elements of work that still need to be done and how much time will it take for these elements to be completed . Based on that, i have prepared a few slides which kind of show in summary the work thats left to be done and the amount of time it would take and the longest one is the chinatown station. As you can see, i have listed some of the seven key elements that need to be completed. And with these things getting done, this station can be finished by june. And that is the commitment of the contractor and we, of course, have had discussions with the contractor and he has committed to finishing the job by this date, as well. The next station, these stations are further advanced than chinatown and ums should be finished by april and those are the key tasks for that station that are left to be done. The ydm station also will be finished by april. We expect these things to be done. And then, the key activities that will take the longest and static integration with train control and all of those elements. And so once the contractor is finished with his job, then we get into the startup trade testing, vehicle testing and get thgetting the cpu certification and safety certification. These are all activities that we are programming to take somewhere between 12 to 14 months. And we believe that this is a good schedule. I have looked at the time and i have experienced that myself on other projects and i would say that yes, there are projects that take even longer. We have a project in our area that is taking, maybe, two years, but i do not expect that to happen on our project and i feel that we have a good schedule and by summer of 2021, we should be able to run trains. So thats my presentation. A fina final slide is a completf june of 2020, revenue service, summer of 2021. Thank you and if you have any questions, i would be happy to answer. Just to be clear with everyone, when we settled this today voting on this, even though there are outstanding further claims, those claims cannot delay the project any further because of this modification, correct. That is correct. And then related to that, you just presented a slide about testing. I know a lot of people a a question if were getting a system in june of next year, one question is, can you open stations sooner and then, two is, you know, is there any way that testing window could be smaller . Ill answer the first one. So on the issue of opening stations sooner, i have heard suggestions that, perhaps, you could open the central subway and have it not stop at chinatown first and thats not something we think makes sense from a rider point of view. Weve been talking about this subway as a connection to chinatown fochinatown for over d i think it would be confusing opening it one station first. But secondarily, i think talking about testing systems, this is a system and though the construction work is due to be work in chinatown, i would be very wary of trying to open it piecemeal. Out. I can add that i have had discussions with the contractor, with our own staff and we are also working closely with the Operation Staff and youve had discussions with julie and based on the experience they have had with some of the other projects that they have worked on, it seems like it would not be to our benefit to try to do it sooner because its a safety issue. We also have to get cpu certification. These things take time and they have to be convinced and the other thing is, theyre not committed to a schedule. Their focus is on safety and if its not safe, they will not give us one day of slack. So thats why we have to make sure that we have the time that it takes to get this done. And the other thing i would say on the stations is that the stations are not that far apart. Theres only a threemonth gap between the two stations and chinatown. So were not really gaining a lot about even thinking about opening a certain station before the other one. They should all be coming online about the same time. So its good to open all of them. So ill turn it to the rest of the directors . I do have several questions on this one. And maybe starting with the biggest one. We have a twoyear delay here and thats very substantial. What caused it . Well, i can give it a shot of what i have looked at. Number one, these are complicated projects and a lot of these projects get delayed. Two years is not an abnormal delay for these projects, first of all. I know projects delayed even longer than that. And of this magnitude and complexity. The other thing is this was very complex and different and we had to be careful about doing the project safely. One of the critical safety areas was tumbling under market street, under the bart tunnel and muni tunnels. I dont know how much was factored in or not, but thats one thing. The second thing that was a very complex operation was chinatown is in a very difficult and very congested urban environment, so the decision was made were not going to cut this station, which is typically done. You open up the street and thats how you do construction. So this is the most difficult construction method which was mining from below. One of the things that happened was that there were unexpected conditions. The soil was much tougher to excavate than even the planning and the soil reports showed. So that took a lot longer. So that was one more thing. Then the other thing is this was a design bid built project, not design build. What that means is if you make changes, you have to resign the changes and then the resign has to be given to the contractor and then that has to be constructed. So that takes extra time. So while the advantage of design bid build is that you actually get the project the way you want it, but at the same time, you are giving up on delays if you make change. So those are some of the tradeoffs and reasons it happened this way. Yeah, im having a hard time squaring that. Its a complicated project. Mining is not a new technology. Its done all over the world. My understanding was, there was a Design Change in the plaza at the chinatown station that had some kind of let me ask the question. How much of that twoarea delay did that Design Change have do and did that Design Change have any cascading effect in other elements of the project . Give us a slaye slide on the chinatown station because it shows it graphically. The path depends on activities. One is concrete work and goes through the electrical and atcs and the line at the bottom which actually shows the delivery for the chinatown elevator. Theres dus different factors at play here. Number one, its very difficult to get labor, so i know the contractor struggled to keep electricians on the property working. I know that was an issue with the chase center and other buildings being built in the city. We knew there was a large amount of lead time with the elevator. It takes a year to get components on hand and thats a different function of the large amount of high rise on the west coast. The Design Change itself, just for transparency, it was the decision to make sure that the communitys desire to have not just a station head house but a programmable plaza above the station that was a decision we did make after the project had begun. But its hard to pull out and say the elevator was 40 and the supply chain was 30 . All of the things together are what pushed the completion date of chinatown to june 2020. Did the resign have the effect of putting the elevator on the critical path. It did. It did . It did. So thats a culprit, it seems to be and as you say, its 40 , 70 . That at least is something that makes sense to me as the cause of such a significant delay. Second question is, what is the estimated cost to complete the project today . We are working on it. We have some ideas. We dont have a solid number because we while we do have the climbs from thclaims from the ce have backup, but were looking at the escrow documents that the contractor has so we know the cost items. So once we examine all of that, we will have a solid idea on what the numbers are. So if we have an estimate now, its an estimate, its a ballpark. Thats what my question was, whats the estimated cost of completion . Let me just lay it out for everybody. Theres the 32 million that were asking for your approval on today. And then theres the two other buckets of cost that was referred to. The additional cost claims that tutor and most importantly, the sub contractors might come in with and then there are other costs outside of the tutor contract costs, the agencys borne costs won, so those are e other two large buckets here. In addition to the 32, weve seen initial numbers from tutor and i dont think theyre credible or worth discussing in public. We think that do you have a credible number in the alternative, though . I mean, just so the public and the audience understands, and just so i understand, the action before us today is to resolve delay claims up to a certain date. Its not to resolve all claims that tutor and his contractor might have, correct. Thats correct. As you said tom, thats bucket one. Bucket two is wer when you takeo more years to build a project, you have to take mtas to do it, including you. So we should have an e estimatef that cost. The first one was the estimate of nontutor costs which are mta plus our Programme Manager consultants and those are, again, order of magnitude, 20 million. To completion . To completion. Ok. The second part and if you could put the slide up, the one i was keeping track of the numbers, slide number six. So that remaining contingency is insufficient even to cover the staff cost, correct. Thats correct. Which is why and then whatever we negotiate with tutor and the subs is gobbing just how deep in the hole will we go . Do you have a number on the order of magnitude of 50 million. 50 . 50. Is that inclusive . It is not. So we had tha add that to thd weve got 70 and we have 15 to apply to the 70. So now we have 55 . Right. Order of magnitude. Thats the math. The estimate you have on delay, its good to see that it has a contingency of three months . Do you know the estimate behind that contingency . Its actually on us because if the contractor delays, hes l irklibel for liquidates damag. So that three months is built in as a contingency. Are the lds trigge triggerede end of the three months. June 29th. Your contingency is after that . So if we get passed that delay point, there will be an argument about whose fault it was, this all likelihood. Yes. Two more questions, chair. You mense mentioned the other py in the region but i dont think it hurts to say it bart and bart has opened and extension to the warm springs station in Alameda County and santa clara is trying to open one and bart built the warm springs extension and santa clara built the santa clara extension but both had trouble with testing. You indicated you didnt think we would have that kind of trouble and i just would like to know the source of your confidence. Let me jump in on this, but i dont want to hold nadime fully accountable. So our approach is to make sure were ready with an internal task force of folks who have deep understanding of all of the disciplines needed for testing, and all of the rail operations that are entitled. So were forming that team now and clearing peoples workloads and premeeting internally and trying to get folks absces and s to the tunnel. One of the things is we negotiated access to the parts of the station as part of the modification. So were basically doing everything we can to prepare for that team to be ready to hit the testing hard on day