tv Government Access Programming SFGTV November 17, 2019 4:00pm-5:01pm PST
>> two things have been brought to my attention, the cross-over on the bridge has been operating with a flashing red light instead of green, which is a passenger comfort issue and that ten-mile per hour speed limit signs have been added to the bus deck which is designed for buses operating at 20 miles per hour and that will be a limiting factor and also could be causing the bus fountains to behave
anemically. after six months of operation, look into that. we want to make sure we don't do temporary safety ideas that just get solidified and end up inhibiting our future capacity. >> ok, we'll follow up on that. >> call your next item, item 5, the exclusive director's report. >> good morning, directors. i'm pleased to provide you this morning with an update on ongoing operations at the transit center and our work to move forward. it's been a busy month of transit operations, events and activities, as well as efforts to onboard new tenants and retail spaces. first off, staff plan and responded to potential impact from the soma wildfires and outages from pg & e. we have redundant systems in place for power outages and while we were not impacted by the power outages we used this
to review our systems and protocol for power outages to ensure the least impact possible in the event we have one. as for bus plaza operations, we meet with the transit operators. and we are responding to a request for minor improvements and maintenance issues and moving forward with plans to waive findings signage in collaboration with atc and sfmta. as for the park, nice weather in september and october resulted in large grounds with exciting new events such as game meet-ups. these new events joined our regular complements joined by nearby families and seniors as well as fitness and wellness sponsored by fitness sf. as of november, we have
adjusting programming for the fall and winter months adding a movie night. the park hours are now 8:00 p.m. for the fall and winter months. and on the retail front, i'm happy to report that we are bringing three additional leases for you today. we are finalizing a fourth lease under my approval authority. if all four leases are approved and executed, this will result in 75% of the transit center p being fully leased. this is an exciting time as we will see large numbers of the public visiting with the first of the tenants opening durings to thdoors tothe public. on-site dental is opening and fitness assess has started selling memberships on site and getting ready for the grand opening on december 27th. phil's coffee is communitied too have two locations open in january.
with all of these openings, we will have 45% of the transit open for service, basically. and with these businesses open, we will have much more traffic than we have today. as a point of reference, fitness sf alone is expected to have 3,000 visitors a day under normal operations. our security and operation's teams are busy on-boarding new tenants and they are plan for the increased foot traffic throughout the transit center. and we are now focusing on helping the remainder of the tenants and working on the permit processing, making sure they respond to dbi comments as soon as possible and with their procurement process of the contractors. our facility manager with provide you with more updates on that later this morning. on to phase two in the downtown
extension, we were happy to cohost a tour with mtc for congressman rodney davis of illinois. congressman davis is a member of the house, transportation and infrastructure committee and he was in california to enlarge infrastructure projects and very impressed with the transit center and with our effort for planning ahead for the future by building the lower concourse and train levels as part of phase one in preparation for phase two and the trains. phase two peer review is now complete. we work with our partners to implement the recommendations that was done earlier this year by the tgpa, as well as results of the peer review. our hope is that these peer reviews will strengthen the project and get it delivered on time. at this time, i would like to invite dennis pearson for the
update agreements. >> good morning. i'll provide you a brief report of the project labor agreement quarterly for q3 and go through the administration and labor statistics as previous reports. so we held our 30th meeting of september 19th with the joint administrative committee where we went through a construction close-out you'll hear today from ron alamada and an improvement update you'll hear from martha valez and we discuss union updates and apprenticeships, as well, as our standing operations, with the veterans and apprentices and all of the unions at this point. regarding the labor update, we did not have any work stoppages and that affected no labor instances at all during our punch list items and zero recordables in the third quarter
which keeps our street going quite awhile now. and then lastly, statistics on how many hours we've had as of th.as of september 30, we had 5.7 million and skeletal clue cleaning up that ron will refer to, i'm sure we surpassed 5.7 mill at this point. so with that, that concludes my brief project labor agreement update. >> this concludes my report, as well. >> any questions? >> in talking about signage, somebody mentioned that the signage from the transbay terminal to bart is not clear. they weren't aware they could see it and i know i've seen in other cities where there's signage along the floor and i know we have that outside of the terminal, getting people to the bus deck but i wonder if it's directing people to the two bart
stations. maybe that's something we can work on. >> to get a consultant on board for an overreview of the signage and do some outreach to the passengers and let us know what other signage needs to be done. >> i think a lot of us use it, we know where the bart stations are. >> we'll include that. >> good morning. i'm jim patrick from patrick and company and i would like to talk about this joint labor agreement and i argued at the same podium maybe four or five years ago,
i've forgotten, that this was a mistake and we shouldn't adopt this agreement. and they stayed thank you, mr. patrick, all in favour say aye and it was passed unanimously. now we're five years down the line and how did we do? well, let's see, we didn't have a strike and that was good. did we deliver the project on time? no. this sort of assumes we agreed to pay the highest price for labor and that's in the contract. now let's see, that implies the highest quality and i'm trying to think. i remember a big hole in a beam and it caused 11, 12-month delay. we brought on this contractor, fisk, and they were a disaster. oh, we knew what our costs were. they would be easy. we went overbudget. we didn't know what our costs were. i think by not doing this, we
could have saved $300 million, could have saved the the city of san francisco and brought in ins in on time. we pride ourselves $3 million on 50 states. why aren't we spending in the san francisco bay area? doesn't that make more sense? what's wrong with us? it's a politically correct decision but your job is to manage a business. you agreed to pay 5.7 million craft hours, you just reported and you agreed to pay the highest price. for sure, we're going to have the highest budget. for sure, we're probably going to have cost overruns and it won't work very well. since this is a done deal, i would like to reference to the memorandum, which is part of what he was talking about and in the third line it says, this agreement provided -- i'm
talking about the jpl or whatever it's called -- provided standardized working conditions and wages. i suggest we need to add the word highest as an adjective to the wages because we also agreed to pay the highest wages and we're sweeping that problem under the table and i don't think that's right. thank you. item six is the construction close-out dates. >> good morning, directors, ron alameda, director of design and construction for the tgpa and i'm pleased to report that we're advancing through the close-out. now that we're open and the physical aspects of the beam are behind us, we were able to
refocus everybody on to the close-out effort. as we stand now, as you see in the pie graph, we have 14 trade groups that are in active close-out with the contractor and 13 out of 49 are goin advang to a dispute resolution meeting to help resolve those issues. we have 22 closed out and related that in terms of close-out, we're down to 26 punch list items. so that effort, the physical effort out on the site is winding down. and we expect to, in terms of timesline, trajectory, we're striving to close out the straightforward contractors with
the web core by the end of the year and we're striving to wrap up the dispute resolution activity early next year, january, february, and then we'll see the remainders, if any, that will continue on to litigation. and we'll get to that a little bit more next month when we have a briefing in closed session regarding legal matters. contingency costs in the last couple of months, it's been $400,000 worth of contingency draw-down, three of which were from the cmgc contingency and finalizing old issues going back and forth. in terms of new stuff, the construction contingency of 100,000 was generally netting out due to modifications because
of ti and the mechanical work and what have you. so small and winding down usage of the contingency as we wrap up the physical work up there. with respect to budget, construction budget, we have an uptick of 19.1 million and that's drawn from both contingency and program reserve and i think the drivers were discussed in earlier meetings and this is just a reflection of dealing with a bit of the legal matters, as well as some of the additional costs with the ti work. and the e estimated at completin was 2 million in legal that moved that needle and towards the completion, where our program reserve was reduced by
10.5 million. again, to reflect the movement towards construction. that's about it. pretty short and street and we're in the final strokes of closing this thing out? thank you very much. >> move on to your next item. item 7 is the facility operation's update. >> good morning, directors, martha valez, the facility manager. i will provide a general facility's update. sidney will give a security overvieoverview and i will discs leasing and tenant improvements. when we last met discussions
with regard to amtrak had not been finalized. since that time, amtrak decided to relocate to the street-level island at mission and fremont and it is the same island that sam-trans uses. this was effective on october 28th and they are currently vacating the temporary terminal this month. other transit activity as of note -- transit center activity as of note is the executive director mentioning on-site dental will be ready to open on monday, november 18th. the top picture is a completed exam room and it is washed in blue light because they have a lighting system that can individually adjust to each exam room according to patient's needs and fitness assess is moving full steam ahead to open on december 27th. they are currently conducting on-site membership drive. lastly, phil's is targeting the
end of january, so at that point, almost half the center will be open for business. this slide is to provide you a visual of the activities of the three tenants starting at the top left moving clock-wise. the first two pictures are fitness assess setting up an exercise area. the next two are phil's with a picture of how they wrapped the storefront at mena and front street. the picture of the inside of that same space under construction, you can see the framing is nearly finished. the last two are on-site dental and a picture of the completed interior hallways with exam rooms on each side and a picture of one of the exam rooms. when i took they picture, they were still setting up. generally, other activities of note, lincoln is working with a vendor on the european style market for the gran hall and
i'll provide a few more details on this next slide and brv has moved into the winter programming. the park is now closing an hour earlier at 8:00 p.m. and each friday in november is movie night and mostly geared towards children and in december, a half week before the holidays, a low-key winter fest is planned with activities also geared towards children, for example, time with santa and face painting and planned is silent disco and music. popular activities, such as toddler tuesdays remain. the daily calendar can be found on the salesforcetransitcenter.com. pearl work is ongoing. this slide notes the advertisers to date and the expected revenue of about 652,000. the top picture is to highlight that food trucks remain a daily routine and going up to the
park. and the bottom picture is a representation of the european holiday style market and the european market is planned for the grand hall and the outside area between the grand hall and sales force tower and boston properties is working with the same vendor to extend the market on to sales force plaza. the bottom right is how the vendors would be arranged and run through the month of december from 11:00 a.m. to 7:0s pending ironing out details with the vendor. the overall objective is to build events with annual center tradition creating excitement, foot traffic, support the businesses and by extension supports the transit operators and the general public. >> an update on security, supporting brb's new winter hours and the reduced winter park hours and coordinating with
transit operators to make incremental security improvements to the bus ramp to include additional signage and improve messaging. securities coordinating with the tenants as a part of the pa strategy to prepare for the retail transit center. >> thank you. >> the following is an up on the retail leasing. today four leases will be presented, three of which are on the content calendar and the three on the consent calendar are spring fertility, poke house, gte or mobile verizon and with the director signing authority. as a reminder, the director signing authority is leasing that are ten years or less and 1.$8 million in aggregate rent or less. and this table is a summary of the status of the center when the four leases are completed. and as you can see, the center will be 75% leased with the
average annual rent at 98% of proforma. when fully leased it would exceed proforma. this spring lease is spring fertility, on the second floor on the but florid plaza adjaceno on-site dental. the nature of the business is as it is named. a consultation office with no procedures performed other than blood draws. rent of 3.3 million over 15 years and a base-building estimate less than proforma for net proceeds the life of the lease at 2.7 million.
this next least is poke house and they feature hawaiian style poke. that's a slice raw fish served over rice and fresh vegetables with sauces. this the first san francisco location with five other locations in the bay area. to recap the deal above proforma, ten years, three months, rent of 1.13 million over ten years and three months. tenant improvement that is less than proforma for net proceeds over the life of the lease of 770,000. this next one is an outlet and to recap, in general above proforma, rent of 2.5 million, a tenant improvement in base building estimate less than proforma with the tenant
improvement at zero and offsets the rent and the lease is $1.84 million. this is the last lease, happy lemon. this will feature teas and juices and this is the first location of san francisco and others throughout the bay area. to recap the deal, above pro for proforma, a base building estimate sightly above and offset by the proforma rent and net proceeds over the life are $600,000. we're working clock-wise and we have phil's coffee, happy lemon,
suite 17 and 18 were working for initial services, hopefully a bank, tycoon kitchen, venga and pernadas and suite 135, it's a mexican restaurant, charlies, a foundation cafe, phil's coffee and verizon and suite 137 is a health food operator and sweet 133 is a space without specific interest. we have interest from two operators. and this is the second floor, as you know, above the -- below the bus, sf kaiser and on-site dental and spring fertility so the entire second floor has nicely filled in with health-related services. and lastly, the park level, the
restaurant and cafe pad. in discussing the tenant improvements, this is to provide an overview of what was originally envisioned for the program in 2010 as compared to today. and this is what the market demanded. this puts into context the work needed to reconcile the built systems to what is needed to invest in the kitchen exhaust and utility tenant improvements. on the ground level, 14 spaces in 2010 as compared to 23 spaces today and what this means to the infrastructure is capacity and scrubber and for all spaces redistribution for water, gas and sewer. on the second level below the
bus deck, a food court in 2010, fitness sf today. so this mainly means redistribution of gas lines and how configured at the source in the meter room. at the second level, adding services meant adding lines for water sewer and a redistribution for the electrical. this work has actually already been done because of needing to complete it before the ocs lines were electrified. and also note the original plan was for non-revenue generating space on the space above the bus plaza and in general smaller spaces demand higher per-foot than lower spaces. and so as impacts to overall schedules are understood with regard to the kitchen exhaust and utility work, also to be reconciled are the tenant's own schedules. on the left side of the table
are the various challenges to the schedule and on the right side are actions and/or mitigations related to the noted challenges. the top section labeled physical, i'm going to discuss that in a later slide. the bottom section lists the various areas that impact the tenant's own schedules and how addressed. and with permitting, lincoln has hired an expedited in supporting the tenants as they move through the process and a primary benefit is making sure that the tenant is responding to dbi's comments so as to not slow the process. the expediter produces weekly notes for each tenant on a weekly basis. a tight labor market in some instances has delayed the tenant in getting competitive quotes. they are working as was done
with fitness sf and on-site dental but not every tenant wants to do that. with the construction timeline, in general, lincoln is endeavoring to compress the timeline, again, to work with the landlord concurrently as just described. tenants are also experiencing sticker shock. this is also a factor in that even with competitive bids, costs are high and as noted in recent chronicle in october and this means the tenant will have to rethink what was originally envisioned in the space. lastly, many of the tenants have expressed needing to open at the same time as neighbors because of synergy needed for foot traffic generation. this is also a schedule impact in working with them to support them in their success. so taking the previous factors
into consideration, this slide is what the start of revenue may look like with the solid bar depicting the fiscal year '19-'20 and the cross-hatch indicating a projected start. even so, keep in mind revenue will be generated on 45% of the leasable space by the end of january. on-site dental, fitness sf and fills and the rest will follow in clusters. also, not every ground-floortinnant may befloore impacted. seven are leased by tenants that are type one and type one is smoke and grease and of the seven, four are currently impacted because they are at a point in their design work where specific information is needed to move forward. the rest are not as far along, so impacts to the schedule will be assessed when a decision is made as to the exhaust system type with the ultimate goal of
opening as soon as possible. as such, the timing of receipt for the fiscal year will continue. this is the last slide. the approach is considered are centralized, decentralized or a dom bcombination. whichever system is selected, aside from functionality and cost, also taken into consideration is tha that this n investment needed to be scaled to future needs and not limit future potential. as noted earlier with utilities, water, gas, electricity and they're being looked at as a part of the same exercise that the distribution needs to be reconfigured to meet the lay-out of the spaces. and it should be noted that capacity is adequate. so it is expected that in december, a summary of the findings, along with a cost
estimate will be provided, at which point detailed schedules can be developed when procurement timelines are understood. and that's the end of my report. any questions? >> yes. >> as a board of directors, i'm happy to see the information about leasing the commercial and retail spaces because this revenue will help to alleviate the payments that ac transit has to make to the center about operations, maintenance and bus storage, including those two items that you have in the consent calendar. so very happy. >> thank you. >> good news. >> no other questions, direct? >> thank you for the update and exciting to have our first tenants starting next week and that's great news. it was on one of your slides that there has been some delays and when we expected tenants to
provide -- to open their shops at the transit center and i just want to better understand the lease structure. when that happens, i assume that, basically, the normal lease -- we don't get any rent while the delays are happening, regardless of whose side of the fen they're on. whether they're our delays, providing the tenant space or the tenant's delays in finishing things they need to do. what's the relationship between start of collecting rent and the delays that people are seeing? >> so the way the lease is structured, there are triggers, but if the trigger is because we're taking longer at something, then, of course, that impacts when the tenant can start their work. but once we do our part, then the normal time frames apply, so they would be -- they would are to start rent per those triggers in the lease.
>> and do we have a good balance and handle on the things we have to do and sort of the risk sharing between us and tenants and when that starts up? >> after we're done with landlord's work, they have 120 days to open for revenue. we're trying to do here is expedite the process. i don't think any of them will be within the 1 120 days. in this fiscal year's budget, we made assumptions they would open because -- assumptions we made we would be doing landlord's work along with improvement work, working parallel with on-site dental and that's why they're able to open with sf fitness. and phil has elected to do the tent improvements until we're done with the landlord work and that's why they're opening in january but we should be in the timelines of the leases. we're trying to expedite the process. >> so, for example, we have a meeting this next week with one of the restauranteurs who wants
to work i us on seeing how we can compress the timeline, just like we did with fitness sf and on-site dental. >> that's good. it seems we have 25% of the space as we look through those trying to make sure we're not the only ones holding the bags on delays, would be what i wanted to make sure we're building into those leases. we know some things will be on our side and theirs and sorting through all of that. >> just a note, verizon actually wanted to open in december and we told them we're bringing the lease here today and so we're going to work with them and try to open in january or february. >> there's no -- i participate in calls with the tenants every week and they want to be open. >> good. >> we want them to. [ laughter ] >> thank you. >> thank you. >> i would like to make an announcement. i sat through a report that mark
devilla will be leaving us and i want to thank her for the great work she's done the two and a half years. she's our facility manager. and she's set up a good system for us to follow. so thank you. >> my pleasure, thank you. (applause). >> on behalf of the board, also, i want to say thank you. it's been quite a journey to get the center. so it's great news we're here today and we enjoy your-day-old reportyour detailedreports and e on our way. so thank you for all of your great work. >> thank you for saying that. i appreciate it. >> we have one member of the public that wants to comment. mr. patrick? >> sorry, you must be getting tired of seeing me, jim patrick, patrick and company and i want to talk about security for a
moment. i would like to develop a numeric system of some sort on our successful or lack of success in our security management. and how many homes people have we dealt with and how many arrests have been made and how many interfaces with ambassadors? right now we're saying security is great. i believe it is great and working good and i haven't seen any homeless people, so i would like to set that bar high and then i would like to do a trend analysis of making sure we keep it high. i believe we can improve on our security reporting. thank you. >> that concludes members that wanted to comment and we can move on to your next item. >> item 8 is a citizen's advisory committee update and we have the chair, derick holt, with us. >> good morning, board members.
i'm derick holt and thank you for continuing to hear the updates from the tgpa cac, we appreciate the updates from the staff including martha, dennis, sidney, chris and our guest at the cac meetings and we're happy that the transit center is doing so well with great pedestrian activity, security, rooftop, and there's clear signage that's increasing, an increasing number of riders who know where to go and get on and off the buses, the to staff and ambassadors are answering questions and there's clear security there. and center security and sfpd, the rooftop park is being use im utilized by community members and people using the center and there are great activities at the center. operationally things are smooth with significant process and the great news that martha shared about the progress there and we're excited about that.
and we still want to make sure that the appropriate parties are held responsible for the delays that have taken place over the last ten, 11-month period of time but we're glad there's a significant momentum. we appreciate the presentation from high-speed rail and the synergy transportation plan expose there arplans andthere ay high-speed trains and pedestrian safety but the high-speed rail teams say they have that as a priority, as well. our cac gratitude goes out, again, to lewis zernoga and his associates from the sfcta peer review update. and it sounds like we'll hear some supportive, positive news from them, hopefully, regarding releasing funds and moving
forward with the agreed upon plans up to the two-year milestone and we do have some concerns if we have recommendations regarding reorganizing the tgpa and the powers that be as far as that's concerned. so hopefully there's good thousands on that front. and the cac representing numerous counting speeding into san francisco highly focused on ensuring it's easy to ride a train into san francisco and easy to get into the transit to connect with mass transit within san francisco. or get off from work and easily connect from the transit centre to transportation leaving the city and that ties us into the dtx and ease of access to the transit center, especially from people outside of the city. we hear concerns from many people, from around the entire region, as well as within the city and this does affect commerce and the freedom and eight to enjoy that all san francisco has to offer. the cac believes the dtax can
help san francisco shine brighter as a good steward of the environment and taking care of the residents in multiple ways. the cac is aware and concerned with the educatio escalating ang costs and without progress on the already voter-approved progress. we're asking for your support. you're pushing the levers and buttons getting the powers to be to move forward and those are our comments. >> thank you. any questions? >> thank you. >> move on to your next item. item 9 is public comment, an opportunity for the members of the public to address the authority on matters not on the calendar and have not received any indication that members which to address this and we'll move into the consent calendar. all matters listed are radio tunroutineand no separate discun unless the public would request to have an item severed from the
calendar and considered separately and we have noted any indication a member of the board of the public wishes to have it discussed separately and your items are item 10.1, approving the minutes of the september 12, 2019 meeting, approving the bylaws to establish 425 mission street, sanfrancisco as a principal office for the business of the tgpa effective september 23rd, 2019. item 3, authorizing the executive director to execute a lease agreement with po connection houske houseon the ge transit center and 10.4, to complete negotiations and complete a lease agreement with spring fertility with 2500 square feet of retail feet for a 15-year term and item 10.5, authorizing the director for 133
square feet of retail square feet for a ten-year term. >> i have to excuse an item on the minutes since i wasn't here. >> we'll call the minutes separately. for 10.2 to 10.5, a motion in? a motion to approve? >> first and second, director brinkman. (role call). >> we have six ayes and 10.2 and 10-pointa ar10-point.5 are appr. all those in favour? the minutes of september 12, 2019 are approved. move into your regular calendar.
item 11, san francisco county transportation authority, peer review panels, sign a report. we have lewis. good morning. i'm the project management to the transportation authority and as you know, at the request of our board, we have been conducting a review of the management oversight governance and project delivery for the dtx project and months ago, you saw a presentation of the preliminary findings of that study and today, you will be hearing about the final observations and recommendations from the panel. over the last few months, we have been working with the principal stakeholders, the
tgpa, high-speed rail, com-train, mtc to develop a memorandum of understanding for the implementation of some of the recommendations. and so, that is moving well and we hope to have the finalized -- this mou in the next few months. in addition, we have been working with the tgpa staff for and allocation of $11 million to restart the engineering for the dtx and we're hoping to take that to our board for approval in december. so with us today, we have john fisher, who is one effort members of the panel and he will be making the presentation. thank you. >> good morning, directors. it's good to be back. i was here in august with an update on our progress for the panel and so it's my pleasure to be back and give you a summary
of recommendations now that the report is final and has been adopted by the sfcta board earlier this month and obviously happy to answer any of your questions. just a reminder of our process in engaging the stakeholders within the city family but also a number of the operators in the region, california high-speed rail and, as well as spur, and, of course, the mayor's office and really appreciate mr. zelvanye and his time of the stakeholders that have participated in to board that have given helpful input to shape this going forward. this is our panel members, really a diverse group of project delivery experts with backgrounds in funding and finance and procurement that came to this with the singular
goal of improving the delivery options and performance for realizing train service in the sales port transit center as soon as possible. one of our panel members, john bicari, saying megaprojects are a process of near-death experiences. the other goal was to learn from some of the similar challenging projects across the country and across the world and bring those lessons learned here to phase two, to dtx to try to put it on a track to avoid some of the pitfalls, if possible. and this is a reminder of our process, a methodology we went through in april, a series of workshops with the stakeholders and the panel on a lot of the areas of governance and oversight, project delivery, funding and finance and we k a d we did a series of interviews,
in-depth with stakeholders in the region, as well as sessions with the tgpa looking the current project information which was extremely helpful to inform our process. finally, we embarked on five case studies of megaprojects in-depth in the apendices of the report. the panel did develop a two-year plan for the agencies involved and those are-day-old more in the report and i won't go into them here but happy to engage on any questions around that if we get to it. so just jumping in, really the primary, early panel recommendation was repositioning
this project which, i think, has erroneously perceived by some as a project benefiting just sanfrancisco. there's been a lot changing in the region since the inception of phase 2, dtx, not the least of which a transbay crossing is looking at tying the region together and this project, we see as vital to that and really, needs a value proposition kind of reset to make the case of the regional importance and really retagging it a project of regional national significance which is also a hook to federal funding from surface authorizations in the past. clearly, the engagement of the elected officials at every level needs to occur and i think the panel felt that this includes engaging the public directly and really articulating the benefits, both on a social
equity, environmental and certainly economical developments that are as a result of this magnificent downtown for phase two and it's critical from the panel's perspective to identify champions, both inside the project and clearly externally and do so over generations. this takes awhile. it won't be just one person. this is a long-term investment. the panel felt that it is critical to hit this reset now to be competitive. the federal funding landscape, we in california are not just competing nationally but competing against other megaproperties in the l.a. region, but right here in the bay area and we need to be very clear on our value proposition and our funding and finance plan needs to be credible to garner that support. i wanted to underscore that this is -- these recommendations are really around just this two-year
period. i think one of the activities in the two-work plan is to dive into a look, deeper look at the overall governance long-term and project delivery. we did not embark on doing that and it was more of a focus on how to harness the agencies in the region, focused on project delivery phase and clearly there will be more discussions about that but i wanted to make that point. the recommendations, which a lot of what we heard today focusing on phase one and close-out of those activities, a lot of understanding of the operations and maintenance of the facility is clearly a core focus and that was recognised by the panel. i think the -- mr. zeranoga's report about an mou in progress, that was the panel's understanding, is there's a lot of details to work out through
that process, but the overarching recommendation was to lover strength in the regions to strengthen the delivery of dtx, including cal-train, california high-speed rail, mtc, the city and county of san francisco and sfcta, city and county of san francisco could be filled by sfmta, city planning, i think the panel was deferring that to the mayor's decision but making sure that all players were in the boat. there are in addition to dtx, obviously a number of other related projects underway, pennsylvania avenue, 22n 22nd street station, fourth and king and they're all very relate and all champions need to be a part of that process, we felt. this group would be the project delivers to this structure, the
incidenintegrated program team e end of the year. i think that's ambitious but i think as we've heard, there's been a lot of discusses on the mou to date to move that forward. within that structure, like other megaprojects that inform this recommendation, it would be development of an executive steering committee which would be compromised of the executive directors of each of the agencies i mentioned that would be developing attack or oversight body of a lot of the staff that would be responsible for helping to advance some of these decisions that comes to the efc within this two-year work plan and help to expedite inteinstead of requiring to evey board to move decisions up to this board for final approval or rejection. and i won't list all of these but a couple of the other areas
that the panel felt strongly about that would require concurrence by the executive steering committee before coming to this board would be selection of the program director for the rail portion of this project for dtx and, also, developing a phase-in plan or an initial operating segment that is fundable, affordable and is going to require some hard decisions. but the panel felt very strongly that was critical to do to achieve service by 2028, which is in our report as a target goal. and finally, i think the two-year work plan really, as i said before, would end with a procurement in 2021 and it was not envisioned this would go beyond that and that would be up to the stakeholders involved to assess and make decisions at that point.
and so we didn't opine on that in the report. the panel felt it was critical to separate some of the high confidence and low confidence funding sources in the current funding plan and this increases overall confidence in the ability to access these fund sources and that includes establishing an affordability limit to give the confidence to all levels of government that the project maybe seek additional funds from, that they're able to use them and deliver on a set timeline. >> there was a lot of discussion spent on how to do that and we offered some recommendations, but it's clearly going to take additional work. it's critically important, a --s i mentioned, this reset on the value proposition is making this a national case of the significance of making this
connection and that needs to be conveyed to the congressional delegation with very clear priorities and parameters. finally i mentioned the phasing and as you heard earlier, there is a movement to restart targeted engineering and the panel felt that this initial operating phase was going to require additional analysis and it should. i think it was also recognised and clearly understood as the rod was secured during the development of this report that any of these looks should not impact the success in that milestone of achieving the rod, so that would be the envelope upon which this second look would take place. and i think it's also important to restate the opportunity to look at dtx in the context of the larger megaprojects going on in the region.
and i will say the delivery option's report, which i think is taking another look at the procurement, what is the best procurement methods for delivery? i think the current status was a design/build approach and i think there was a lot we can learn from the industry on the delivery option expos options ak things have changed. updating the cost estimate from 2016 is a start from that. i will say i think the other opportunity is to really work with cal-train and high-speed rail and bring them together on what are the capacity needs and when does each operator need them? we did wait and receive the cal-train business plan, which was a very similar conversation with options of service and it's a robust, healthy discussion and