The MUNI Metro East Maintenance Facility is an integral part of the Muni Third Street Light Rail Project's Initial Operating Segment. It will be built on a site just northwest of Pier 80. Due to the State Highway Account shortfall, state funding for this project was delayed to FY2007/08. In August 2004, the California Transportation Commission approved a STIP amendment to allow MUNI to receive an advance of $22.57 million in local funds to pay for a portion of the Metro East Maintenance Facility, which will subsequently be reimbursed by the State in FY 2007/08, when the funds become available in the STIP. In August 2004, the Authority approved an initial loan of $12.059M and MUNI is now requesting the balance of $10.511M to fund construction of the Metro East Maintenance Facility. Note the CTC AB 3090 guidelines require an obligation of funds within 12 months of the AB 3090 agreement approval. Our remaining obligation must be completed prior to June 2005 to meet the CTC guidelines. The Metro East contract was advertised on March 4, 2005 and contract award is scheduled for June/July 2005. This action is consistent with the Prop K Strategic Plan adopted in March 2005.