Cell phones and electronic cell phones and board are convening hybrid meetings that allows in person a ternd znswer and Public Comment and providing remote access. Public access is essential. And will be taking Public Comment as follows, first Public Comment will be taken on each item on this agenda. Those attending in person will be allowed to speak first and then well take those wait ongoing the telephone line. Those watching channels 26, 28, 78, 499 and sfgovtv dot org, call in number is streaming across the screen and the number is 4156550001. Again, thats 456550001. 4156520001. Enter the meeting id24995579925. Press pound twice. Youll be listening mode only. When your item comes up and Public Comment is called, those joining in person should line up to speak and those on the telephone should dial star three, to be added to the speaker line. If youre on your telephone, remember to turn down your tv and listening devices you may be using. Each speaker willing be allowed up to two minutes to speak unless stated. You may submit Public Comment and email they to the budget and finance clerk at bretn dot jai if you submit Public Comment comment my email, it will be forwarded to the supervisors and be included as a part of the file. You may send your written comments via Us Postal Service to our office in city hall, 1 dr. Carlton be good let place, room 244, San Francisco, california, 94012. The agenda will be on the can you read item no. One. Yes, item no. One. Its an ordinance for the thanes pour ation agency to issue a request for proposals for a Communications Based Train condition system awarded with a contract exceeding ten years, a washing the administrative code prohibition and issuing contract for general or professional services for a term longer than ten years and procurement procedures stating that the award of the contract will be subject to the approval of the board of supervisors pursuant to the charter and adopting findings under ceqa. Members joining remotely and wish to comment, call 4156550001. Enter the meeting id24995579925. And press pound twice. When the system indicates you have been unmuted, it will be your signal to begin your comments. Madam chair. Thank you, we have julia here to present, hello or to answer additional questions since this is the second hearing. I try to keep opening remarks very brief and really focused on the issues that you raised last time. As you know, the train control system that we have is very much on borrowed time and fixing it is a huge priority but i also really respect all the time that youre taking on this ask because how we setup this contract will very much dictate how successful we are as we go through this shared process as a city. Next slide. The technology that were looking to procure is the latest and greatest. It is a modern train control system. It is also very highly Specialized Software led by national, multinational firms that we need to work hard with upfront to make sure that were going to have a partnership that is productive and that is successful. Next slide. If done correctly, the Train Control Program will have significant improvements for our customers. Most notably that we will continue the excellent Safety Record that the Current System has without being bogged down with the reliability challenges that we have that lead to gaps in service and people being stuck between stations, which is a very low Quality Customer experience and can detract from our overall city and regions, climate goals of getting people out of their cars. The ask that we have today is to setup the contract so that we can have a negotiated procurement with the suppliers and really ask for the things that we think we need to be successful but maybe pushing the industry a little bit during the competitive procurement process. They focus primarily on the terms were going to be requesting for the support contract, specifically to try to make sure that we get regular software upgrades, that they are willing to commit to a vendor manage their parts inventory that rewards not breaking rather than what we have today where the more things that break, the more we pay for parks and makes the performance of the system a shared partnership. In some cases, we are trying to replicate what other systems have and is considered best practice and in other cases, we are trying to push the industry and thats true for the software updates, which for many, Many Industries is now Standard Practice but not something that some of our Partner Agencies were able to build into their contracts and we would remain to communicating often with this board as those discussions happen to make sure that were really able to get the terms that we think we need for success. The second piece of the request is to extend past a tenyear contract. This is something we are modeling after bart. I know getting more examples of contracts was something you all asked in the last contract. The bart contract is structured this way. They have negotiated upfront for a tenyear support contract as well as to fiveyear options. There are not a lot of other domestic examples of train control projects at all, let alone how their contracts are structured. The european systems take this actually a step further. They are negotiating not just the support but the direct maintenance. Were fortunate to have such a Skilled Workforce that we think well get a better quality of service if thats a partnership rather than trying to replace our current staff, which would be more of a european model. So with that, im happy to answer any questions you have and we do appreciate you considering this item. Thank you so much. Supervisor safai. Thank you, chair ronen. Thank you, director kirshbom. You gave the example of bart, one of the concerns i have and i just want you to talk about this, Technology Changes so quickly and i understand that part of the reason why youre asking for this longer Term Contract is because you want to have the ability to get one person, excuse me, one entity, one group that not only has control over their proprietary software but responsible for the upgrades and not necessarily the maintenance but the changing out of the software, the upgrades, all of the things you would be coming back to us in later years and then having to do a sole source contract for, so can you talk about that a little bit because my main reluctance of giving approval for a longer Term Contract is it takes away our ability to negotiate. But it seems were negotiating upfront and demanding concessions as a part of the larger contract so that would be the main reason why i would be supportive of giving a longer Term Contract, so can you talk about the proprietary nature of the software and then the ongoing ability to get the chosen contractor once its put out to bid to agree to ongoing upgrades as a part of this deal. Yeah. Thank you for that question. So, because this is such a large investment, this is, you know, hundreds of millions of dollars thats going to take us eight years to implement. Once its implemented, we want to get as much out of this asset as possible, so were not going to decide ten or 12 years from now, were going to go to a different vendor, were going to make a commitment upfront to keep this product uptodate and meeting the needs of the city and county of San Francisco. We currently have had a 30year relationship with a Technology Vendor but the terms of those conditions have been very unfavorable to the agency because once we did the initial installation, any additional improvements or changes that we wanted to make had to be done as a sole source contract because they already own the product. Got it let me interject for a second. Remind me what you anticipate the size of this contract to be . Its about the overall project budget is 600 million. And [multiple voices] the supplier contract is only about 50 of that. Some of the work would be done by existing mta, right . So, if were talking about actual physical construction type work, thats all going to be done inhouse with mta labor . Is that correct . The daytoday preventive maintenance and first level repairs will be done by mta staff. The actual construction work, detailed Electrical Construction will be done by a separately procured outside vendor. Got it. [multiple voices] that would come to you as well. That will come to us ultimately. I want to flag for you because, i see my friend jonathan here in the audience, weve had these conversations before but any type of physical work construction related work, weve had conversation about project labor agreements and i want to make sure were already thinking about that in advance. We are, thank you. Its not the internal Maintenance Work done by your employees so just to flag that in advance. So, i mean, i would just say, i think this gives us a competitive advantage. We would like to see this once you actually have negotiated the youre going to put it out to bid. Well bring that back to us for contract, please keep us informed as the negotiations go once a vendor is selected, so we can see the terms of your agreement. We cant dictate those terms but we can know the terms once they are. We vote up or down so its best to know the terms as they go, so i feel a lot better about this today than i did two weeks ago. If youre able to negotiate strong terms on behalf of the agency, so that were not stuck with a massive change order thats one way in negotiations and i think thats what youve expressed to us today. Thank you madam chair. Thank you. And i just wanted to appreciate you for taking some additional time with this item. It is, the length of the contract is unusual for this committee and youve done a great job explaining the thinking about behind and the reasoning which has made sense to me the whole time, so i appreciate it. Seeing no other comments, well open this item up. I have one other quick question, im sorry. Sure, sure, go ahead. As you negotiated the terms and its a longer term negotiation, does that then lock in the prices in terms of the type of work thats going to happen to the extent of the tenyear construction project are we negotiating a price today that is then, we know there are it would have an inflation or some sort of index link to it. Got it. Thats what i wanted to understand because if were its great for us but it might be harder to get someone to do the work in seven, eight years if we negotiated a price thats based on today. Because they said nobody can do that. So, the index can help protect both party from that responsibility. Got it. That was my last question, thank you. Thank you so much. We will now open this item up for Public Comment. Thank you, madam chair. Members of the public who wish to speak and joining in person should line up to speak. For those listening remotely, call 4156520001. Id code, 24995579925. Then press pound and pound again. Once connected press star three to enter the speaker line and for those in the queue, please continue to wait until the system indicates you have been unmuted and it will be a signal to begin your comments. Seeing no in person speakers in the chamber, mr. Lamb, can you unmute our caller, please . Can you hear me now . Please begin. Great. David pill pell. Good afternoon, so i just wanted to repeat very briefly my comments from the last hearing a month ago. I believe there may be some benefits from the train control upgrade project but it does not replace transit planning or the Rail Service Plan that has been promised. I asked last time and havent heard an answer, has there been an rfi or rfq. I hope theres a level of interest for more than one potential vendor and this is not headed to a sole source procurement. Next, this project shouldnt facilitate forced transfers of church and market or west portal or allow threecar trains on the indudo and elsewhere on the street. I have no concerns on the procurement approach here. I do note that the world is more integrated now between facilities, vehicles and technologies which had been separate ideas in the past or much more integrated now and are very inter dependent. I can follow up with that with comments or questions i have. Ill add very briefly that i tried to interact with the Shawn Kennedy yesterday following the mta Board Meeting and he apparently did not take kindly to some of my comments and doesnt want to communicate further so i may have to follow up with julie and see what else we can do to establish better lines of communication between the public and mta staff. Thanks for listening. Mr. Lamb, do we have anymore speakers in the queue . Madam chair, that completes our queue. Public comment is now closed. [gavel] i would like to make a motion to send this item to the full board with positive recommendation. Yeah, okay. Cosponsorship noted, mr. Vicechair. On that motion to forward this ordinance to the full board to the positive recommendation, vicechair safai . Aye. Member chan . Aye. Chair ronen . Aye. We have three ayes. That motion passes unanimously. [gavel] thank you. Mr. Clerk, can you read item no. Two. [clerk reading item two] members of the public who ginning us remotely and join us remotely and wish to comment, please call 415655001 tell. And meeting id, 24 the 95579925. Press pound twice and press three to enter the speaker line. A prompt will indicate you have raised your hand and unmuted. Thats your signal to begin your comments. Madam chair. Thank you so much. Good morning or good afternoon. Jonathan, chief Strategy Officer with the mta. So today, we are going to talk about our Transit Shelter Program and the Second Amendment to a 20year contract with Clear Channel outdoor for the advertising revenue and maintenance of the program. What i do want to make sure to cover with the committee, this was a 7month negotiation process. It has been a critical priority for the agency to focus on the maintenance component and the experience of the rider out in the street especially as we try to reopen the system. So some key elements were looking at the minimum annual guarantee, so the revenues that come to the mta via advertising on the transit shelters through the history of this contract, the city and county of San Francisco has made the profit. Clear channel made no money. The city made all the profit on the contract and ill talk about that a little. As part of the contract, the maintenance and transit shelter is included and we have shipped to a management approach and get additional advertising as a part of the program and ultimately the city and county will be owners of the county shelter at the end of the contract. You can see here, this is the proposed minimum annual guarantee as part of this update. It is reduced from the original contract and thats noted in the bla report. We dont dispute that in any way. However, advertising revenues have never hit those levels. In fact, if we tried to maintain the average over the course of this contract, we would have to increase advertising revenues by 60, 70, 80 which we felt wasnt achievable, so this proposed map keeps us in line with the average which is 10. Of million over five years and that matches the average over the life of the contract. This includes the period of the pandemic and you will see that it increases over the period of time, so thats a total of 56. 4 million for the agency. In addition, what we did was in exchange for reducing the requirement for the mag which is focused on cash, again, cash that has never been received through this contract, we did ask Clear Channel to increase the maintenance. So this includes taking care of graffiti, making sure things get cleaned up and the current contract is the maintenance occurs on every shelter two days per week. This will change as a result of the approval of this amendment to three days a week. Thats 50 increase on maintenance. Response time, making sure things are clean in the streets and so hopefully well see that after this is approved. Well focus on the platforms exclusively five days a week, so those are the high platforms along our muni metro system. The other thing is equity was a key component of trying to kind of fix this contract over 15 years and especially the service, so two things that we did was the prior contract was managed by contracted administrator and that was largely focused on revenue. You know, gaining dollars for the agency but again we really want to take a maintenance approach to this program, so lisa who is joining me here today is our superintendent of platform and shelter maintenance. She has 20 years of experience in field maintenance. And thats what we want. We want someone at the agency level focusing on the street being responsive to concerns from your offices, 311, and the public, and actually being out in the field. So, what weve done is we are currently conducting a Condition Assessment of the shelters across the city. Thats to be done by an independent contractor, not by clean channels. This is a score criteria associated with that and if shelters do not meet a minimum standard, they need to be cured through repair or full replacement. Were hoping to get that done by the end of the fiscal year so thats very aggressive but we want to welcome people back to muni so this is the time we want to get that done. So we estimate that refresh will be at least 3 million of Capital Improvements and then in addition, were going to be adding the digital shelters across the city in additional locations, thats another 3 million Capital Investment not a part of the contract. We talked about advertising. We are trying to welcome people back to the mun