Directors new and old business. No hands waving, next item. Item 5 is Public Comment which is an opportunity for member s of the public to address the board on matters that are not on todays calendar and we have mr. Robert, followed by mr. Finebaum mr. Robert . Good morning, my name is Steve Roberts and im a member of the Rail Passenger association of california, a Public Transportation advocacy group. I thank you for the opportunity to address you this morning. Because of the benefits of reduced automobile usage, fully leveraging caltrains electrification project which thereby will increase caltrain ridership and its revenue performance and financial performance, also reducing Green House Gas misses, facilitating transitoriented development, the extension of Caltrain Service to transbay terminal is one of our associations key priorities. Any actions that delay this vital project and snarl it in endless planning reduce its Operational Flexibility or capacity are of a concern to our association. The Rail Passenger association of california recommends a focused effort to begin construction of the approved shovel ready extension to transbay terminal. Thank you. Mr. Finebaum good morning, im bob finebaum, im a member of the citizens advisory council, but i am not speaking on behalf of the council, i am speaking only on behalf of myself. Id like this disclaimer to be carried over to any other testimony i give this morning. The cac was supposed to have received a presentation from the Planning Department on the rail yard study on tuesday. That was abruptly taken off the agenda and i understand it was supposed to have been presented to you as well but is not on your agenda. This study is a feesibility study, its part 1 of a 5part study envisioned by the Planning Department. This part 1 is already 8 months overdue. It was supposed to have been delivered in june of 2015 and its february and it still has not been delivered fully. Anticipating that this is going to be the time lag in producing the results of the other 4 parts of the study, were looking at the possibility of applying for funding under their timetable of sometime in the middle of the second trump administration. Now, as fiduciary duties of this board i think one of them is to see that the caltrain comes to the downtown terminal as quickly as possible. And i urge you to consider carefully what impact this protracted study is having on that goal. Thank you. Okay, that concludes members of the public that wanted to address you on this item. Closed session . Go into closed session. Pursuant to government inaudible scheduled for discussion in closed session so we can go ahead and. All right a, the tjpa board of directors of march 10, 2016 is back in open session and we will report on the announcement of closed session. I am pleased to report that the Transbay Joint Powers Authority board of directors has unanimously approved an agreement with f4 Transbay Partners for the tjpa sale of parcel f for 160 million in cash at closing and 115 in closing at f4 with the adjacent property at 540 howard and build on both parcels. F4 is a joint parcel, limited partnership, and affiliate of heinz and broad street principle Investments Llc an affiliate of goldman sachs. Urban and heinz own a combined 10 percent. Par tell f generally with a height of 750 feet sat last height in San Francisco for a super Tall Building and the last high rise with rights to connect to the transbay Transit Centers roof top park with a pedestrian bridge. The closing otd 160 Million Dollar sale will occur no later than the summer of this year. The proceeds of the sale of par tell f will be used for capital cost for phase i of the transbay project. The sale of parcel f is contingent on the oci board and r giving f4 exclusive rights to negotiate a disposition and Development Agreement of fci for the Purchase Price of 4 Million Dollars. Alternatively f4 may attempt to negotiate a fair market price market price pars3 with oc would retain absolute and xwlet discretion over every term of a disposition and Development Agreement with f4, other than price and the outside closing date, including project design and a number and type of Affordable Housing units to be included in the development of block 4 so that the tjp and the city meet the requirements that 35 percent of the Housing Units built in the transbay district are affordable. Parcel f is not entitled, f4 will be required to apply for entitlement from the San FranciscoPlanning Commission. F4 currently plans to build up to 200 residential units in the parcel f tower in addition to two to three hundred hotel rooms apblds 250,000 to 425,000 square feet of office space. The number of Affordable Housing units in the parcel f tower will be determined by the Planning Commission and ocii that concludes my report out. Next item, please. Moving into your regular calendar, eye 1010 is authorizing the executive droetor to execute an agreement for independent Auditing Services with varinek, trine, day and company for an amount not to exceed 144,000 for a period of 3 years. Motion to approve and a second. Are there member s of the public wanting to aye. Isis, aye. Director, five ayes, 10 is approved. 11 is approving an agreement with the California Public employees retirement system to join the California Employers Retiree Benefit trust program. Sarah is also here to answer any questions on this item. Yeah, what i want to know is whats the legal requirement for us here . Post Retirement Benefits is killing ac transit, so i want to make sure before we get involved this is something we have to do. Yes, tjpa does promise a portion of retirement, we do not cover dental or vision for most employees because we purchase our health care for active employees from caliper we fall under the Public Employees hospital care act, so under that we are required to pay the minimum towards Retiree Health care. Right now thats 125 a month, it goes up a little bit every year based on the cpi, the medical portion of the cpi, so usually each year its a 3 or 4 dollar a month increase. We dont currently have any retirees eligible for this benefit, but if we did, we would be contributing 125 per month for that retiree for their health care premium. Health care benefits for them. Yes. Is there a tenure requirement before you are eligible from day one, am i eligible . Yes, you are eligible from day one, there is no vesting requirement, but to be eligible you need to be retired from tjpa and you need to have Health Benefits at the time you retire. What governs this agreement between the tjpa and its employees . Individual employment agreements. I think the city a number of years ago in going to the voters changed its Retiree Health benefit vesting requirements such that i think it used to be immediate vesting then they changed it to 5 years you are partially vested and kind of work up, i think 20 years or something to get fully vested. It seems like at least for new employees something that we should adopt here. I think thats been becoming a best practice. Remember, we are under calpers, we are not under the citys retirement. Its not a matter of city or other calpers have done the same. We should explore vesting, we should benchmark against other cities or districts in the state. I think the city found that its liability was much it could manage the growth of its liabilities significantly by changing the vesting. Obviously different for a 29,000 Person Organization than one that has a dozen people, but still a good practice. Certainly, thats absolutely something we could look at for new agreements looking forward. We dont, because we are so small, tend to hire very often but we certainly can take a look at that. Whether new employees have a vesting requirement or not we would certainly still recommend prefunding the liability through this trust. Can we thin item for a month while we figure that out . Because i would figure more comfortable if kupb sifrt stepbt with the city. We can. I would say those that making a change to the template of the employment agreement wouldnt change the agreement with calpers and it wouldnt change our liability. The actuary who did the valuation did so on a current basis, so only tjpa employees. Employees hired within the next 10 years would be considerd on a new valuation. On a pay as you go basis is approximately 206,000 and on a prefunded bases at 6 1 2 Percent Discount rate is 40,000 less than that, so we certainly can make changes to our employment agreement template moving forward, but that wont change the amount of the liability that we currently report. I would feel more comfortable with knowing that was in place before i approve this agreement, even if it doesnt impact the doesnt impact the pars3 agreement itself. This time sensitive . We made to make the payment to calpers before june 30th. Id say we can wait for that. Continue this with that amendment. Okay, next item. Continuing item 11 to the april calendar. April 12 is approving the minutes of the february 11, 2016 meeting. Move approval. First and second, all those in favor. Aye. Seeing none opposed the special miplts minutes of the february 29 meeting are approved. 14 is a presentation on the operations study. In 2014, directors, ises corporation was hired to prepare an operations and maintenance report. Now that weve issued on march 4 its important for the public and members of the board to see the assumptions that went into preparing the operations and maintenance study report. To that end id like to ask john thomas of ises corporation to come up and give the presentation for our phase i study. Thank you, maria, and thanks to the board for having me. Its an honor to be a part of this exciting project so im going to present the operations and maintenance reports. Again, my name is jonathan thomas, i work with ises corporation, ive been heading up the operations and maintenance Planning Operations for the past 15 years. Ises is a consulting and Management Firm that works for several municipalities, corporations, were based out of atlanta but we work a lot in the pacific northwest. Today well discuss the design of the facility and the impacts on maintenance, the methodology behind the report, the basis for the cost estimates, well have a renewal estimating then well talk about funding. For the Transit Centers design for a hundred year operation, to that end, durable materials have been selected, these are low maintenance Long Life Cycle materials such as Metal Panel Systems around the exterior, wear resistant surfaces sufrp as stainless steel on the interior, hard floor surfaces and High Performance coating for steel which can withstand some flex. Theres a relatively low maintenance hvac system per square foot that incorporates natural and low energy mechanical ventilation up on the bus deck. The use of water source heat pumps distributes maintenance out and cuts down on the need for Central Utilities generation. Utilities are submeters so tenants can be billed for their usage. Well talk now a bit about the model in the report. These are the line items we estimated in the report. These came from some of them and we collected some of them as well. Essentially the report is intended to present a total cost to the ownership model for the tjpa all estimates foertd report are in current year dlars, contract or overhead is included but please note that the retail and tenant space is excluded because thats envisioned to be covered by the tenant. For the maintenance , janitorial and ground estimates we applied cleaning standards to come up with our staffing estimate. We applied localized 75th percentile wage rates to come up with the costs and this wage rate is expected to anticipate full union employment. Driving the report are these Service Levels so this slide shows some quaul litative points on the Service Levels expected through the model in the report. Maintenance activities are estimated to be based on a comprehensive preventative maintenance program. For the janitorial, the surfaces are expected to look clean to most of the users. Its not expected to be maintained to a showpiece facility level, but it is expected to be a welcoming environment for users. Same thing with the grounds, up on the roof park in particular, the grounds will appear neat, plants appear vigorous and disease and pests will be maintained upon observation. The security estimate, which denise will talk about in the second part of this presentation, is based on the 2015 conops report and anticipated a mix of employees and Police Department staff. We applied estimated loaded rates. This also excludes the submetered tenant spaces and includes utilities such as electricity, water, sewer, fuel oil for generators and trash. Information Technology Services were also estimated, including the twoway radio das, the Virtual Network license, data Network Service and basic data and telecom service. External Service Contracts that could potentially be managed directly by the tjpa were also estimated. This includes the phase i elevator and escalator maintenance, the Mission Square sculpture stability testing and the roof park landscaping which is going to be managed by the installing contractor for the first two years. Multiple Insurance Products and policies were also estimated by the tjpa insurance carrier. Facilities renewal was also estimated. This is also known as capital renewal. And we estimated this in a similar manner to the maintenance, janitorial and grounds where we measured and counted Building Components and we applied localized life cycles and costs then we annualized 50 year costs by year to come up with an average annual cost. Administrative costs were also included. These are to account for the normal operations of a facility such as this, so the tjpa management was estimated as well as an estimate for operations contingency and the operations contingency accounts for annual nruk waises in annual o and m costs. So the basis of the cost estimates, we estimated by Program Component so weve got separate estimates for the phase i of the Transit Center, the bus ramp, the roof top park and we also included operations contingency and tjpa management. On this slide youll see the estimated staffing required for each line item. 108 total staff anticipated, 73 of those are anticipated to be security and denise will expand upon that. So in the tjpa line agent item it is anticipated these services will be covered. These are normal Services Expected for an organization such as this managing a facility such as the Transbay Transit Center. And i will talk a bit about facilities renewal. Examples of facilities renewal costs are, these are the costs to renew the life of systems and components of the building. So when systems and components reach their, the ends of their Economic Life cycle, that means when it makes more sense to replace them than it does to maintain them, these are examples of those points such as interior lighting replacements, switch gear replacements, multiplex pump system replacements. In 2053 we have a big spike in supply piping networks, park level skylights, for instance, then in 2058 we have a large spike when major systems are going to be smraited for renewal. This klus the hvac networks , the Electrical Networks and the drain pipe systems. The reality is these replacements arent necessarily made on a onetime basis for the whole facility, they are typically phased in as needed so the costs are actually smoothed out a little bit more than we might model. Well talk a little bit about funding at this point. Though the confirmed operating revenue covered the operations and maintenance costs, 4. 7 million from the legacy rm2 fund for the old Transbay Transit Center, which will be covered over, also Community Benefits district will be putting in approximately 1. 5 million, so currently around 6. 2 million is confirmed annually. Other anticipated operating revenue to close the gap from the master lessee retail rents will be coming in, the use of the promotional platform will generate some revenue for the tjpa as well for advertising, the master lessee will kupb tripbt to the operations and maintenance costs for certain portions of the