| Special Citizens Advisory Committee - March 10, 2010 |
SPECIAL CITIZENS ADVISORY COMMITTEEMeeting Notice Date: 6:00 p.m., Wednesday, March 10, 2010 Location: 100 Van Ness Avenue, 26th Floor Members: Jul Lynn Parsons (Chair), Peter Tannen (Vice Chair), Glenn Davis, Chris Jones, Brian Larkin, Fran Martin, Jacqualine Sachs, Robert Switzer, Wendy Tran, and Rosie West
6:00 1. Committee Meeting Call to Order 6:05 2. Chair's Report - INFORMATION 6:10 Capital Projects/Policy and Programming 3. Adopt a Motion of Support for the Adoption of a Baseline Budget, Schedule, and Funding Plan for the Municipal Transportation Agency's Central Subway Project - ACTION* attachment In 2009, the Municipal Transportation Agency's (MTA's) Central Subway Project completed an intensive risk analysis as part of the Federal Transit Administration's (FTA's) New Starts review and evaluation process. As a result of this review, FTA recommended that additional cost and schedule reserve contingency be added to ensure the project's success. Specifically, this review resulted in a revised project budget of $1.578 billion compared to the original $1.3 billion and a new completion date of December 2018 compared to the original of June 2016. Also as a result of the assessment, FTA indicated that it will support an increased federal share for the project and higher annual funding allocation levels, both of which helped to shrink the project's funding shortfall. In January 2010, FTA granted the MTA permission to enter the final design phase. In anticipation of beginning the final design phase, the MTA has undertaken an extensive review of the existing funding and expenditure plan for the project, which has included active participation by Authority staff and our project management oversight consultant. Having reached these critical project milestones, we are now recommending that the Authority adopt a baseline budget, schedule and funding plan for the project consistent with the requirements in the Prop K Expenditure Plan for major capital projects. This action will support our efforts to monitor project progress, including cost and schedule trends and the project's financial status. It will also serve as a useful check point for the Authority and the MTA as we work together to ensure that the MTA can satisfy all the requirements necessary to secure a Full Funding Grant Agreement (FFGA) from the FTA in December 2011. A FFGA is FTA's official commitment of federal New Starts funds to the project and it is a necessary milestone that signals the project's ability to move into the construction phase. In addition, the baseline budget, schedule and funding plan-along with the recommended ground rules for financial management of the project (Attachment 1)-also helps us to better forecast and manage financing needs for the Prop K program since the Central Subway Project is one of the primary drivers affecting the timing and size of debt issuance. The recommended action is conditioned upon approval of a proposed Strategic Plan amendment since it would trigger financing costs at levels higher than contemplated in the adopted Strategic Plan. We are seeking a motion of support for the adoption of a baseline budget, schedule, and funding plan for the MTA's Central Subway Project. 4. Adopt a Motion of Support for the Amendment of the 2009 Strategic Plan and Fifteen 5-Year Prioritization Programs - ACTION* attachment In July 2009, the Authority Board provisionally adopted the 2009 Prop K Strategic Plan in order to allow approval of allocations for major capital projects and categories like paratransit with no Prop K 5-Year Prioritization Program (5YPP) requirement to move forward with planned Fiscal Year 2009/10 allocations. Adoption of the Strategic Plan was provisional because based on review of project sponsors submittals, we expected that subsequent adoption of the 2009 5YPP updates would trigger a Strategic Plan amendment. Specifically, our review of schedules and cash flows proposed by sponsoring agencies indicated they may be more ambitious than warranted by those agencies' project delivery track record, funding plans, project readiness, and resources. To date, the Board has approved 17 5YPPs, and conditionally approved two 5YPPs pending the subject Strategic Plan amendment, leaving two 5YPPs yet to be finalized. On the whole, the adopted 5YPPs have more realistic and less aggressive cash flow assumptions than are included in the adopted Strategic Plan. However, since July 2009, sponsors have made requests for advancement of programming and cash flow in several programmatic categories, which are proposed for inclusion in the subject Strategic Plan amendment. We also are including a significant advancement in the use of Prop K funds for the Municipal Transportation Agency's (MTA's) Central Subway project consistent with the project's baseline budget, schedule and funding plan which are the subject of another agenda item at the March 10 Citizens Advisory Committee meeting. To help offset some of the aforementioned changes which would increase financing costs for the Prop K program, we worked with sponsors to incorporate an additional $18.4 million in de-obligated funds from completed and/or inactive grants and we added actual capital expenditures for the last two quarters of Fiscal Year 2008/09, which continue to lag behind project sponsor projections. Despite accommodating a more aggressive cash flow schedule for the Central Subway and a few programmatic categories, we are pleased to report that the proposed Strategic Plan amendment would result in less than a 1% increase in financing costs compared to the current Strategic Plan, with $842.6 million in debt issuance at a cost of $858.6 million in financing as compared to $825.7 million and $852.8 million respectively in the adopted plan (See Attachment 3). We are seeking a motion of support for the amendment of the 2009 Strategic Plan and fifteen 5YPPs. 5. Update on the Disadvantaged Business Enterprise/Small Business Enterprise/Local Business Enterprise Program for the Municipal Transportation Agency's Central Subway Project - INFORMATION The MTA Equal Opportunity Office on the Agency's overall Disadvantaged Business Enterprise, Small Business Enterprise, and Local Business Enterprise program goals and achievements, followed by information on goals and achievements specific to the Central Subway project. This is an information item. 6. Adopt a Motion of Support for the Allocation of $9,000,000 in Traffic Congestion Relief Program Funds and for $27,418,669 in Prop K Funds, with Conditions, to the Municipal Transportation Agency for Final Design of the Central Subway, Subject to Adoption of the Central Subway Baseline Budget, Schedule and Funding Plan; Amendment of the Prop K Strategic Plan; and the Attached Fiscal Year Cash Flow Distribution Schedule - ACTION* attachment On January 8, 2010, the Federal Transit Administration (FTA) granted the Municipal Transportation Agency (MTA) authorization to enter final design for the Central Subway Project. The total cost of the project is $1.578 billion, of which the final design phase is $119 million. As part of the project's baseline budget and funding plan, the MTA has divided the final design phase into two sub-phases: Design - Plans, Specifications & Estimates (PS&E) and Design - Project Management. The first sub-phase, which is the subject of the MTA's current request, was budgeted at $63.6 million. The scope of work deals directly with development of plans, specifications, and estimates associated with completing final design of the project. The second final design sub-phase, which is projected to cost $55.7 million, covers work that includes project management (by both City agencies and consultants), insurance, legal permits and surveying required to complete the final design of the project and move it into the construction phase. The Design - PS&E scope of work will be accomplished by three contracts: Design Package 1 (tunnels), Design Package 2 (stations) and Design Package 3 (trackwork and systems). There will also be a separate contract for Program Controls. These contracts will be supplemented with the MTA and other City agency work. The four contracts are in various stages of approval and the MTA will reconcile the final negotiated amounts with the project's baseline budget and funding plan, and has indicated it will hold to the $119 million budget for the entire design phase. With Authority Board approval of the requested Traffic Congestion Relief Program (TCRP) and Prop K funds, this sub-phase will be fully funded. The final design phase schedule is geared toward obtaining a Full Funding Grant Agreement from the FTA in December 2011 and starting revenue service in December 2018. The recommended action is subject to a number of special conditions including approval of a baseline budget, schedule and funding plan and a corresponding Strategic Plan amendment, both of which are the subject of separate agenda items at the special March 10 Citizens Advisory Committee meeting. We are seeking a motion of support for the allocation of $9,000,000 in TCRP funds and for $27,418,669 in Prop K funds, with conditions, to the MTA for final design of the Central Subway, subject to adoption of the Central Subway Baseline Budget, Schedule, and Funding Plan; amendment of the Prop K Strategic Plan; and the attached fiscal year cash flow distribution schedule. 7. Adopt a Motion of Support for the Allocation of $9,753,356 in Prop K Funds, with Conditions, to the Municipal Transportation Agency for Four Requests, Subject to the Attached Fiscal Year Cash Flow Distribution Schedules - ACTION* attachment Due to a crowded March Special Citizens Advisory Committee (CAC) agenda, we have grouped four Prop K allocation requests from the Municipal Transportation Agency (MTA) into a single memo. The MTA has requested a total of $9,753,356 in Prop K funds for the following projects: rehabilitation of worn track and upgrade of other infrastructure for the California Street cable car line; track replacement and related system improvements along Church Street and Duboce Avenue; construction of two bulb-outs on Duboce Avenue at Sanchez and Steiner Streets; and purchasing and installing a new fiber-optic communications network and advanced traffic signal controllers for Franklin and Gough Streets. Attachment 1 summarizes the applications received, including leveraging compared to Expenditure Plan assumptions and project phases included in the current request. Attachment 2 provides a brief description of each project. Attachment 3 provides a summary of our staff recommendation, highlighting issues of potential interest to the Citizens Advisory Committee, such as recommended special conditions. Our recommendations for three of the four projects are conditioned upon approval of the proposed Strategic Plan amendment and related amendment to the Guideways 5-Year Prioritization Program, both of which are the subject of a separate agenda item at the special March Citizens Advisory Committee meeting. We are seeking a motion of support for the allocation of $9,753,356 in Prop K funds, with conditions, to the MTA for four requests, subject to the attached Fiscal Year Cash Flow Distribution Schedules. 7:50 8. Public Comment 8:00 9. Adjournment
* Materials Attached Next Regular Meeting: March 24, 2010
CAC MEMBERS WHO ARE UNABLE TO ATTEND SHOULD CONTACT ERIKA CHENG AT (415) 522-4831 This meeting location is wheelchair accessible. In order to allow individuals with environmental illness or multiple-chemical sensitivity to attend the meeting, individuals are requested to refrain from wearing perfume or other scented products. All times shown are for information only. Items will be called at the discretion of the Chair. If any materials related to an item on this agenda have been distributed to the Citizens Advisory Committee after distribution of the agenda packet, those materials are available for public inspection at the San Francisco County Transportation Authority at 100 Van Ness Avenue, Floor 26, San Francisco, CA 94102, during normal office hours. If you prefer receiving future agendas via email instead of regular mail, please send your request to
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