Good morning. I'd like to call the meeting of the contract review subcommittee to order. We may have a roll call, please. Board Member Grebel. Here. Board Member Baden-Fort. Here. And Chair Galvin. Here. Okay, let the record reflect that all board members are present. Just a reminder to the committee members, there's only three microphones that can be on at the same time, so please mute your microphone when you're not speaking. Item two on our agenda is public comments. We'll now take public comments on item two. You're in the room, please move to the microphone and wait for the timer to appear. See no one rise. That'll take care of public comments. We'll now move to item 3.1. Director Burke. Thank you, Chair Galvin and members of the subcommittee. Our only item for the meeting today will be a progressive design build contract for the Lana trunk rehabilitation phase one contract number C02403. And making the presentation will be Rachela Mayeda, Associate Civil Engineer. Welcome, Ms. Mayeda. Good afternoon, Chair Galvin and Board Members Baden-Fort and Grable. My name is Rachela Mayeda and I'm an Associate Civil Engineer with the Transportation and Public Works Department. Today I'm here to discuss the award of a progressive design build contract for the Lana trunk rehabilitation phase one project, contract number C02403. During this presentation, I'll start off with a little bit of project background. I'll provide a brief refresher on what design build is. I'll discuss a form of design build called progressive design build. I'll touch on how the process of securing a design build team went. I'll discuss the project cost and schedule and conclude with a recommendation. Looking at the map on your right towards the bottom of your screen, you can see the Laguna treatment plant. Todd Road is at the top and Lana Road runs north to south between the two. That green line indicates where we have approximately 8,100 linear feet of 66 inch sewer pipe improvements that'll be rehabbed using trenchless technology. Along that stretch of pipe, we'll rehabilitate 12 manholes and in order to do this work, we anticipate needing to set up a bypass pumping system that can convey up to 20 million gallons per day. The pumping system will need to cross both Todd and Lana Roads, some private property, and will require 24-7 monitoring. And then primarily because of the bypass pumping system, we do expect needing permits from the California Department of Fish and Wildlife, the Regional Water Quality Control Board, and then also the County of Sonoma. We expect that one of the California Department of Fish and Wildlife permits will take an extensive amount of time and effort because we have both protected plant and animal species in the project area. For compliance with the California Environmental Quality Act, we expect that we will need an initial study mitigated negative declaration. So to describe what design build is, I first wanna provide a brief reminder on how we typically deliver projects through design bid build. So on the left, you can see we, the owner, have a contract with a designer who may hire other consultants to develop and design the project. We then get construction-ready documents from those designers and put the project out to bid to contractors. The city then goes into contract with a builder or a contractor to construct the project. In design build, however, we have a team that's made up of the designer, the consultants, and the contractor from the start of the project, and then they all work together as a unit. We originally selected design build for this project because we've seen lining projects in the past where a consultant designs the bypass pumping system only to later have the contractor completely reconfigure the system and sometimes add a cost savings to the city. So since the bypass pumping system can sometimes be about half of the total construction cost, any savings or additional costs incurred during construction could be pretty significant. So ultimately we thought it would be in the city's best interest to have the contractor, the designer, and the environmental staff all collaborating as a team from the start of the project. Progressive design build is a form of design build and California Senate Bill 991 was passed in September of 2022 and authorized local agencies to use progressive design build for certain water and wastewater projects. And the team structure you saw in the previous slide still applies to progressive design build. So now I wanna kinda touch on what design build is again as a basis for describing what progressive design build is. So in design build, we start off with project scoping. We then go into the 30% design. After that, we go through the procurement process of procuring a design build team. And during this phase, interested design builders would provide us a proposal that includes the cost of engineering services as well as the cost of construction. At that time, we would then go into contract with a design builder for both phases of work and they would finish the design and do the construction. And this delivery method is really good for projects where the scope can be clearly defined early on in the design process. In progressive design build, again, we start with the scoping but then we actually go directly into procuring a design build team. As part of their proposal, they would provide us just the cost of engineering services not the cost of construction. So at that time, we would then go into contract for the design services phase. The design builder would then take the project to around 75 to 90% design and then provide us with a construction cost. At that time, if we cannot agree on a construction cost, the design build team would still be required to finish the design of the project and then we could take those plans and put them out to bid as we normally would with design bid build. If city staff do approve the construction cost and we can come to an agreement with the design build team, we would then present this to the board as a contract change order for approval. If the board approves, the contract would be amended to include the cost of construction at that time. And progressive design build is a really good delivery method for when the scope of the project may change as the design progresses. So the main difference between design build and progressive design build is when the construction cost gets determined and when that gets included into the contract with the design build team. We opted to change to progressive design build after that Senate bill was passed because we realized there were just too many unknowns associated with the bypass pumping system. So input from the California Department of Fish and Wildlife or findings from CEQA as well as cooperation from private property owners could all significantly change the layout of the bypass pumping system which would significantly change the cost of construction. Once we are under contract for the cost of construction then the design build team would finish the design and construct the project. To select a design build team, we began the process with issuing a request for qualifications. Interested design builders provided their statements of qualification and we then pre-qualified or short-listed qualified teams. The request for proposals was then issued only to those teams that we pre-qualified. We received proposals and a selection committee ranked those proposals and I am here today discussing the contract award. We received a total of six statements of qualification and we actually felt that all six teams were qualified to do the project. So all six teams did receive the request for proposals. Four of those teams provided proposals and then all of those were scored based on their responsiveness to the RFP, their proposed design and permanent approach and their capacity and approach to deliver the project as well as their pricing schedule. And I just wanna point out here that this can be a potential advantage of design build. You get to select the consultant and the contractor based on their qualifications and experience, not just their fee alone. Each selection committee then reviewed and ranked the proposals on their own and then we all met as a team to discuss each of the design builders and we unanimously decided to move forward with SAK Construction and Corrollo Engineers. SAK and Corrollo provided the shown cost estimate for the engineering services or design services phase of the project, totally in about $1.3 million. It's anticipated that the total project cost will be approximately $15 million and this includes the cost of construction as well as soft costs. And that includes the cost shown in the top table as well as inspection and construction management services, permitting and administrative fees, contingencies and then also in-house labor and overhead. The majority of this project has already been funded and the remaining amount is programmed in our year one CIP budget for fiscal year 2024, 2025, which the Board and Council will be seeing later this year. Looking now at the project schedule and starting at the top row, project management will be ongoing throughout the duration of the project. Pre-construction services are those services provided by the contractor during the design phase of work and that would include things like doing constructability reviews and scheduling reviews as well as providing a cost estimate. That work would begin this summer and go into next spring. The design will begin shortly after the contract award and go into early spring of 2025. Permitting and SQL will begin after the preliminary design is complete. And then construction services will begin in March of 2025. And at the beginning, this will mostly consist of procuring materials as well as doing submittals and the majority of any ground-disturbing work actually will not begin till around mid-June. It is recommended by the Transportation and Public Works Department in Santa Rosa Water that the Contract Review Subcommittee recommend the Board of Public Utilities approve a progressive design bill contract C02403 in an amount not to exceed $1,302,657.45 with SAK Construction LLC of Rockland, California plus an additional 10% contingency amount of $130,265.75 for a total not to exceed amount of $1,432,923.20. Thank you for your time and I'd be happy to answer any questions you may have. Thank you for the presentation. Open it up for any committee member questions. Go ahead. Thank you. Yeah, I'm new to this committee. So I would love to just learn a little bit about in terms of the progressive design bill because it seems like on the one hand there's obviously lots of benefits there. Does that, part of the Senate bill mentioned and other things is that bypass some of the previous California public contract code and the invitation for bid process, you can do it all in one instead of going back as a notice, an invitation for bid. And as the phases come, you can keep it together in one sort of progressive bid. So my question on that then would be because I know we've discussed this in the past when we do design builds, do we get even fewer respondents when we put out a notice for that? I think it just maybe depends on the project and what kind of industry there is for the specific project type. For this project, I think we were a little surprised that we did receive a total of six interested design builders. And we were really happy about that. We did receive proposals from across the country actually. So we got some good interest with this project. That's relatively high for what we use it, right? Cool. Okay. Thank you. Sounds great. The only question I have, if you know I'm curious, six of them went through the qualification process and only four bid, do we know why the other two didn't submit proposals? Yeah. So one of them, at least one of them, let me know why and they thought they weren't going to be competitive for this project. They thought that their method to doing rehab of this kind wasn't going to be competitive with say what we're more used to, which is that CIPP lining rehabilitation. So we got some other different types of rehab methods that maybe they just thought they wouldn't be competitive for this project. One more wonky question. When these respondents were bidding on the CEQA costs, was there much variation? I'm just curious, was there much range of variation in what their estimated CEQA and permitting costs were? Cause obviously we have the native plants and the species and other things, but then you bring in the cultural resources and other things that sometimes are very hard to estimate on these projects, right? Did we see a big range there or were they pretty tight? That I don't remember, but I can follow up with you if you'd like to see actual numbers on that. All right, if there are no other questions, I'll entertain a motion to approve the recommendation. Move to approve the recommendation. Second. All right, we have a motion and second. Before we take a vote, we'll open it up for public comment on item 3.1. If you're in the room, please move to the microphone and wait for the timer to appear. See no one rise. We'll close the public comments and go for our roll call vote, please. Board Member Grebel. Aye. Board Member Bauman-Fort. Aye. And Chair Galvin. Aye. And that passes unanimously. Very good, that concludes our agenda for today's meeting. Thank you all for being here and we are adjourned.


J-E-L-L-O. The Jell-O program starring Jack Benny with Mary Livingston, Phil Harris, Dennis Day, and yours truly, Don Wilson. The orchestra opens a program with Moon Over Tarzana. It's so exciting, quick, and thrifty, and inviting. Full of flavor, rich, and mellow. All together, this spells Jell-O. Yes, friends, Jell-O is certainly an all-around good dessert.  Flavor so pleasing, so refreshing, so downright satisfying that it rivals the real juicy ripe fruit itself. Jell-O is easy to prepare, too. One of the simplest and quickest desserts you can possibly serve. And of course, you can treat the family to a delightful Jell-O dessert for only a few pennies. So order Jell-O tomorrow, choosing any or all of Jell-O's six delicious flavors. Strawberry, raspberry, cherry, orange, lemon, or lime. Incidentally, strawberry and raspberry Jell-O are now better than ever. Both have a new, improved flavor obtained by using a natural flavor base artificially enhanced. Try these grand flavors and enjoy Jell-O's rich, distinctive goodness. Serve a tempting mold of Jell-O tomorrow. And this being the fifth day of Jell-O, a man who is still doing his Christmas shopping, Jack Benny. You thank you. Jell-O again, this is Jack Benny talking, and Don, when you saw me in that department store yesterday, I wasn't shopping. I was exchanging some of my Christmas gifts. Well, that's quite a coincidence. I was doing the same thing. Would you believe it, Jack? Three different friends gave me electric razors. You think that's bad? I got enough bottles of cologne to have people whistle at me for the next 10 years.  No kidding, Don, I must have gotten 25 bottles of that stuff. What are you going to do with it all? I gave it to Rochester and he's gonna throw a cocktail party. He mixes it with orange ice and calls it a Central Avenue lullaby. But when you saw me in that store, Don, I was only exchanging the gift Phil Harris gave me. You were, why Phil told me, he gave you a lovely present. Oh, it was lovely, yes, but I don't know, I didn't feel right in it. Oh, well, you shouldn't have exchanged it, Jack. You'll hurt his feelings. I don't care whether I hurt his feelings or not. I'm too old for an Indian suit. I don't know, what's the matter with Phil? He gives a darned his Christmas present. Last year, he sent me a manhole cover. Imagine a manhole cover. Oh, yes, I remember that. What'd you ever do with it, Jack? What could I do? I put home sweet home on it and hung it on the wall. And I wish you could have seen what the... Oh, hello, Mary. Hello, Jack. Happy New Year, Don. Same to you, Mary. What about me? It's a wonder you wouldn't thank me for the swell time I showed you New Year's Eve. You didn't even phone me. I wanna do it big, I'm gonna hire a sky rider. It won't be necessary. You know, Don, I took Mary to the Wilshire Bowl. And boy was I raring. At the stroke of 12, I grabbed a horn and blew the old year right out. You did, huh? Yep. And at 12-01, Jack put the horn in his pocket and said, let's go home. Mary, the only reason I suggested going home early was because I didn't wanna have a hangover the next day. A hangover from what? Breaking balloons? Listen, Mary, don't try to give the impression that I'm an old dodo. I was the life of the party. I had you on that dance floor every minute. Anything to keep me from eating. You ate, sister. Believe me. You had the special T-bone steak with french-fried potatoes and choice of two vegetables, including tax $1.29. You know, very well, you had a swell time. Okay, I had a swell time. You darned tootin'. Say, Mary, is Jack a good dancer? I couldn't tell. That was the first time I ever did the turkey trot. That wasn't the turkey trot at all. I was doing the laconga. The laconga? Yes. Couldn't you hear me going? One, two, three, uh, one, two, three, uh, one, two, three, uh. What'd you think that was? I thought your rheumatism was giving you the biz. That was very funny, Mary. You know, I wonder why you and Phil don't quit this program and get one of your own. Harris and Livingston, every week, an audition. You're too smart for this show. Oh, hello, Dennis. Hello, Mr. Benny. Happy New Year. Same to you, kid. Is anybody a Naspren?  Why, Dennis, I'm ashamed of you. I bumped it getting out of my car. Oh, oh, I see. I'm sorry. That's all right. You can bump your head. I thought you meant you'd been celebrating too freely. By the way, Dennis, uh, where did you go New Year's Eve? I went there. Don't worry. Oh. Okay. Say, I wonder what's keeping Phil. You went where, Dennis? Never mind.  All right, all right. Say, Don, have you seen... Dennis, where have you been going every night? Mary, it's none of your business. It's a good picture all right, but, gee, I can't laugh all the time. I'd rather go back to mowing your lawn. Now, Dennis, I don't want to hear another word about it.  Mary, I don't know what you're talking about. Anyway, Dennis, it's time for your song, so let's have it. My girl laughed at Fred Allen, but don't worry, I kicked her. Now, Dennis, everybody's waiting for your song, so let's have it, please. What's it gonna be? A brand-new number called I'm Gonna Round Up My Love. That'll be fine. Go ahead. And by the way, if your girl thinks Fred Allen is so funny, get another one. Mary, stop looking at me like that. Do you hear? Oh, brother. I wish that kid wouldn't babble so much. You've always called me Mr. Benny. Well, I saw so much of you last week, I feel like we're old friends. See what you mean. But you know, Dennis, I kind of like the idea of your calling me Mr. Benny. It adds a little dignity to the program and shows your respect for me.  That won't be necessary, Mary. Gee, I can call him Jack. And now, folks. Wait till the girl's at the May Company here about this. Now, wait a minute. Don't get smart, Miss Livingston. Oh, do call me Mary.  You asked me a question, I answered it, now let's forget it. Well, look who finally breezed in. Hiya, Jackson. Am I late? No, Phil. We realize that taking up a half hour of your valuable time once a week is quite an imposition. Now, hold on, Jackson. In fact, Phil, I think that next Sunday I'm gonna have a microphone installed across the street in the pool room so you can say hiya, folks, without putting your cue down. Would you, uh, would you care for that? Now, before you ball me out, Jackson, I want to tell you that I'm a changed man. You're looking at the new Harris. Oh, I am, eh? I'm not kidding. On January the 1st, I made a resolution.  Well, I'm glad to hear it. When are you gonna cut out running after women? When they stop running. Oh, so, well, Phil, here's another resolution for you during this new year. Why don't you learn something about music? You mean I should be like Stukowski? No, Phil. All I ask.  Little as they know, it embarrasses them. Okay, Jackson, that'll be another one of my resolutions. Speaking of resolutions, Jack, I have resolved that during 1941 I'm going to find new ways to tell people about Jello. You are kiddo? Yes. Instead of telling them about strawberry, raspberry, cherry, orange, lemon, and lime, I'm gonna mix them up and say, strawberry, lime, raspberry, lemon, orange, cherry, and. Oh, oh, the and at the end. Gee, they'll never dream it's the old Jello show. Anything else, Don? Yes, remember how I always used to say, look for the big red letters on the box? Uh-huh. Well, this year I'm going to say it backwards. Oh, for heaven's sake. Box the on, letters, red, big, D4, look. Well, mouth my shot. That's a very novel idea. Oh, thanks, Jack, I'm awfully glad you like it. I'll see you get a raise for that, backwards. And now, ladies and gentlemen, we will have a number by Phil Harrison as orchestra who will play it not backwards, not forwards, but in their usual manner. They will start in the middle and blast both ways. All right, Phil, let's have it. Okay, say, by the way, Jackson, I got my expense account on our New York trip all made out. You want to see it now? No, Phil, I'll look it over later. What does it total up to? 3,427. Give me that. Let me see that expense account. There you are. I got the whole thing itematized. That's itemized. You don't mind, I'll look it over. Let's see here. Hotel room, $42 a week. That's reasonable. Meals for two weeks, $63. That's very reasonable. You don't have to read it, Jackson. It's in perfect shape. I'll just give it a little quick glance. Now let's see. Hey, Jack, look. There's one item you can't complain about. Where? Right there. Laundry for two weeks, $0.37. Yes, that's not bad. Let's see what else he has here. Bottle opener, $0.10. Ice, $2.50. Bromo, $135. What do you want us to play, Jackson? Wait a minute, Phil, I'm not through yet. Taxicabs, $11.50, that's OK. Charles Bagby, musical arrangements for orchestra, $0.37. $0.37. That must be the same guy that does his laundry. See, what else is here? I-G-R, $45. $45. Phil, what's this I-G-R? I got robbed. You expect me to pay for that? You don't expect me to pay for that, do you? Oh, what are you beefing about? I never even charged you for bailing out my guitar player. Oh, well, that's very sweet of you. Now let's see. Well, here we are again, Bromo, $100. Phil, you and I will talk this whole thing over later. In the meantime, let's have a band number. OK. Look at this next item, Mary. Elevator, $400. What could he want with an elevator? See, some changes made.  OK, Jackson, but as long as we're on the subject of the dough, how about that $50 I won from you from the Rose Bowl game? That you can take to court. I didn't see the game, Phil, so the bet's off. I thought you'd squirm out of it. Well, Jack, I thought you told me you were going to the Rose Bowl game. I did go, but I didn't stay. Tell him what happened, Jack. Mary, Don wouldn't be interested. Oh, yes, I would. What happened, Mary?  Well, anyway, Phil Dennis and I took a cab. But when we got to the bowl, Jack wasn't there yet. So we waited, and waited, and waited. You should have seen the crowd, Don. Programs, programs, names and numbers of all the players, program this. No thanks. Come on, fellas, let's go in. We can't go in. We've got to wait for Jackson. Yeah, he's got the tickets. I don't see why he didn't come with us. Well, you know how romantic Jack is. He's bringing his girlfriend Gladys to the game, and they're driving out alone in the Maxwell.  I think that Jackson's stuck on her. You said it. Yeah, he said it. Why don't you go get lost in the crowd? Don't think I couldn't. Mary ate that Jack and Gladys coming this way? Oh, yes. Jack would be wearing a beanie.  Gee, Gladys, I never saw you looking so good. You're sure pretty when you're all dolled up. Thanks, Seedy. I mean it. Get your programs here. Program Mr. 15 cents. Oh, Seedy, can I have a program? You darn right you can. Here's a half a dollar, buddy. Keep the change. Oh, boy, now I get my two pay out of Hock. Game, Gladys. Hi, you fellas, all set for the game? Yeah, I've been waiting on you, Jackson. Come on. Say, Gladys, you know Mary and Dennis, don't you? Sure, hello, everybody. Hello. Gee, Gladys, that's a pretty fur. Did you trap it yourself? You know darn well, I gave it to her for Christmas. Oh, pardon me, honey. Do you know Phil Harris? Do I? Hi, you Gladys, I'll have a ham on rye. Now, Phil, cut that out. Not working today. Come on, fellas, here's our gate. Let's go. Take it, take it. Hold your own stubs, please. Here you are. Oh, hello, Gladys. For heaven's sake. Here's tunnel 16 over this way. Oh, yeah. Working at the Shamrock Cafe. What's the use of being in California, not enjoy the sun? It's great for you. Yeah, night shift. Well, here's the entrance, kids. Say, look who's here. Yeah, you want a hot dog, Gladys? OK, we'll get him inside. Better get one now, Gladys. You know seedy. That's speedy. Look over and buy the hot dogs. Everybody wait here so you won't get lost. Hey, mister, five hot dogs, please. Five puppies coming up. Are you running a hot dog stand now? Look at my signs, Jackie boy. All the hot dogs you can eat for $0.10. That's fine, but how can you make money with an offer like that? Taste one and you're tasting the answer. They're pretty tough weenies, eh? What suitcase handles they would make? Well, they still look good to me. Give me five of them. OK, what kind of mustard do you want? Mustard? What kind? Yeah, sure. I got strong, mild, and channel number five. Oh, mild, I guess. How much do I owe you? Five hot dogs, $0.50. Well, that's fair enough. Here's a dollar. Here's a quarter, thanks for the tip. So long, Slap. So long. Get your red hats here. You ain't kept till you dine with Slap. Here you are, kids. Take your hot dogs. Thanks, Jack. Here's my dime. Keep it. Everything's on me today. Gladys, put that back in your pocket. Just for once, why don't you see a football game where four teams aren't playing? Now, where's Dennis? He'll be back in a minute. He's got his own ticket. Let's go in. Here's the tunnel. Gladys, you have to talk to every fellow you meet. Oh, Seedy, you're so jealous. I'm not jealous. Here are your seats, Mr. Thanks. Minus teams in the country. And it's a love by neighbor on it. A way of something, don't I? You know, I kind of like Nebraska. Well, I'm for Stanford. You want to make a little bet, Jackson? Yeah, I might. Don't you know anybody that's right-handed? Well, I used to go with them. Used to, used to. You're going with me now. I wish you wouldn't talk to everybody. Hey, Jackson, what about that bet? OK, Phil, you've got Stanford and I've got Nebraska. Oh, yeah, pal. Is this seat that can hold, pal, hold, pal? Oh, fine. Yes, the young man has it. He'll be here in just a minute. Oh, don't mention it, pal. A friend of yours is a friend of mine. This would happen to me. How much dough do you want to bet, Jackson? Any amount you say, brother, just name it. OK, 50 bucks. Hmm, 58. Take another number, Phil. Oh, no, if he wants to bet 50 bucks, it's OK with me. Quiet, quiet! The game hasn't started yet. No, that's, I'll never touch it. It comes the Nebraska team. Oh, yeah.  Yeah, listen to that crowd. Yes, sir. You know, Gladys, I'll bet there are 90,000 people here. That's terrible. Run into one of these guys. Ignore him, Gladys. Where speak to her? Here, hold my coat, Mary. He's on the floor already. What do you want? Well, he can't talk like that. Hey, look, Jackson, here comes that good old Stanford team out on the field. Don't they, too, don't they, Gladys? Oh, let me tell you something else, Gladys. The next time you go out with me and say hello to every Tom, Dick, and Harry we meet. Exactly what happened at the Rose Bowl game on New Year's Day. Dick really lost his head, huh? He sure did. OK, I'm a fiery, jealous nature. What can I do? Play, Phil. OK, speedy. Before dessert at dinner tomorrow, why not serve the family a real surprise, something delightfully different, like apple snow jello, a delicious combination of cold spicy apple sauce and crimson raspberry jello, or try apricot pecan layers. Crunchy pecan meats and golden canned apricots molded in shimmering orange jello. These are just two of the many grand treats that you'll find described in the new Calendar of Desserts book. In this big 48-page recipe book, you'll discover 365 suggestions for all kinds of novel and tempting desserts, pastries, puddings, cakes, cookies, and of course, lots and lots of swell desserts made with delicious jello. And this unique calendar of desserts is just as beautiful as it is useful, too, full of lovely paintings and handsome photographs and brilliant blowing colors. So all be sure to send for your copy right away. Just mail 10 cents, just 10 cents, in coin or stamps to me, Don Wilson, care of General Foods Battle Creek Michigan, and this handy day-by-day recipe book will be forwarded to you at once. Don't wait until tomorrow, friends, send 10 cents for your copy tonight. We're a little late, so good night, folks.


Greetings! This is Gerald Friedman, Professor of Economics at the University of Massachusetts at Amherst. And I'm here today to talk about elasticity of demand. That's a mouthful. It's the kind of phrase that you can use with your parents. They'll ask you, what did you learn in college today? And your answer, you learned about the elasticity of demand. And they'll be impressed. They'll be so impressed that they won't know what to say. It's hard to say. You can practice. Elasticity of demand. The elasticity of demand is the relative change in the quantity that people buy when there is a change in price. So if prices go up a little bit, do you buy a lot less or a little bit less? If the price of your puppy goes up, dog food becomes more expensive, vet bills get higher. Do you get rid of your dog? If the price of your puppy goes up a lot, do you get rid of your dog? There are two extreme cases. Well, this isn't quite extreme the way I've drawn them, but we have low elasticity, very little change in price in quantity. When prices change, you get prices go all the way from here up to here. You buy somewhat less. This is low elasticity in elastic demand. This is high elasticity, big change in quantity when you have the same change in price. Now there are two big things about the elasticity. One is the standard model. And if you had this in high school, chances are they talked about elasticity in terms of can you do without the service? How essential is the service to you? Can you live without your puppy? Probably not. So your puppy will be in the low elasticity category. That's actually secondary, though. The more important factor is can you find a substitute for the service? This might be gasoline from Cumberland Farms. Sure, you need gasoline to get to work and to shop and to live in the suburbs and rural areas, but you don't need Cumberland Farms gasoline because if Cumberland Farms raised the prices, you'd just go to Sitco up the street or Sonoco across the street. It's not only about whether you need the service, the product. Donuts, you don't need donuts, but where else are you going to get donuts but Dunkin' Donuts? So Dunkin' Donuts, low elasticity. Penicillin. You think, yeah, you really need penicillin. You'll die without it. Yeah, but you don't need Merck penicillin. There are other antibiotics. There are other companies that make penicillin. If they raise their prices, you just go to one of those. Companies want inelastic demand and that allows them, inelastic demand, allows them to raise prices a lot without worrying about losing sales. So companies want to make demand inelastic and they do this by reducing the possibilities of substitution.  No, what is important is to tell you that you can't get it any place but with them. That prescription drug is the only one that will deal with whatever it is you need. Other prescription drugs may seem to be the same thing, but they'll say no, they're different. They come in a different color. You can get music from lots of places, but only Taylor Swift music is like Taylor Swift. It's actually, well, no comment about that, but that's what they'll tell you. They'll tell you that Miley Cyrus music is unique. That's a whole lot of crap, but that's what they do to reduce the elasticity of demand, making it harder for you to find a substitute. You can buy music from iTunes, you can pay for music from companies, or you can copy music from your friend's computer. Copying allows you to make demand more elastic. The record industry of America and the whole Hollywood establishment is working to make high elasticity into low elasticity by reducing the possibilities of the substitution. They want to create scarcity. Created scarcity is the key to profitability. Make it so your consumers can't get the product any place else. Things you can do. If you're in business school right now, you want to write these down. You want to brand, brand your product, put your name all over it. You want to control access to the technology. Patent your technology. Patent your ways of making things. Trademark. You want to get control over access to resources, essential resources. You want to lock up all the engineers who know how to do this thing so that nobody can copy you. Nobody can create another product. Capitalism, remember, is about profitability, not creating useful things. Every time companies restrict access in order to reduce the elasticity of demand and create profits, they are making the world worse. All these things that companies do to make it harder for you to copy your friend's music are making the world a less happy place. Thank you very much. Have a nice day.


2. A bigger partner as Nigerians continue to decry the unavailability and low circulation of the newly redesigned notes, the CBN has mounted surveillance on commercial banks to ensure adequate disbursement across the counter. Plus, CBN's correspondent Habila Darifi filed in this report. It is a few days till the January 31st deadline set by the Apex Bank to stop the use of the old 1,000 Nara 500 and 200 Nara notes as legal tender. Some residents of Kaduna state began to shut down their businesses to avoid losses. They are avoiding transacting with the old notes. The Central Bank of Nigeria, Kaduna branch, made a visit to some commercial banks in the state to ensure the disbursement of the new notes. We had a meeting with the major banks that are supposed to engage their agents this morning and we have an understanding that today they will issue all these new notes to the agents. We will do a follow-up. What I mean by a follow-up, we need to know their locations, their contact numbers, so that we can go along with them and see the disbursement of these new currency design notes to the public. What we have seen now is that there is a lot of improvement. The banks are dispensing the new currency across their ATMs and also the banks are complying of not exchanging currency across the counter. Some of the POS agents embraced the money for cash swap while lamenting the majority of residents do not have bank accounts. Many customers come to your location as you need to swap. You can collect the money you come to swap for you. If a person brings 20,000, you can swap him 10,000. You can open account for him or wallet with the main money you can swap to you to put the main one inside his account. Then later on you can go back and do the process that will draw the money. When a customer comes to you, those that have no account, maybe they wanted to change their money from old notes to new notes, then they will give us a maximum of 10,000. We swap for a person. So when we receive the old note of 10,000, we now give them the new note of 10,000. We now bring it into the bank. In a twist, some traders and farmers express the smay to get the new notes. The APICS bank insists there is no going back on the 31st January, 9th.


Hey nerds, it's Jared. Hey guys, I'm Ryan, and we're talking about So for those of you who don't know who Del Toro is, Blade 2, the Hellbone movies, Pans Labyrinth, Pacific Rim Des Moe Crimson Peak, the Shape of Water, which he just won a whole boatload of Oscars for and His style is immediately recognizable. Imagine Tim Burton that came out in the early 2000s This is what Gell-Moldo Toro is. He is Basically the millennials version of Tim Burton. He should be winning stuff for production design The look of films directing and writing. He is killing it And so we're gonna riff off the top five movies that we think are worth you guys checking out Starting with Pacific Rim. This is Gell-Moldo Toro with a budget with all the money backed into a film He can talk and bring out all these big monsters big robots and just have an absolute fun fest And just make it this massive action blockbuster. Yeah, but he doesn't forget the people either So he still has those little character moments. It's not a perfect movie by any stretch of the imagination But it's a lot of fun. There's some great action sequences. And yeah monsters versus robots Who wouldn't like that me? I love that. Let me let me in. I want to watch this a thousand times over However, Pacific Rim 2. I'm not sure if you're gonna be as good I'm watching you. So number four would probably have to be Blade 2.  So if you love vampire films You love Gameral Del Toro if you love Worsley Snipes and just action movies Blade 2 was an unreal movie to check out for Del Toro's unbelievable directing and production style So number three Would probably be I can't pick between the hell boys So I'm gonna lump them both together. You need to watch both of them.  Once again Monsters, awesome production design Great hell boy in Ron Pullman Also, uh, Doug Jones is Abe Sapien was I don't know if it was the first time he worked with Del Toro But they've they've gone on to work with each other a lot Doug Jones is Gamorro is the reason why the his career started and started taking off in being his character pieces and character And he's in the shape of water as well. So he is he keeps using the same people. Yeah, he is the shape in the water. You might say Number two probably has to go to pans labyrinth if you haven't checked out this movie yet Then where the hell have you been for the last 15 years? This is the movie that if you've seen any characters or any special effects work for happening in any kind of Magazine or even on the internet it probably came from this film This is one of the most original and most unique films that have come out since probably the 80s And it flies into that realm of classic cinema like stuff like never ending story the labyrinth exactly All those movies that you remember as kids in dark crystal. Yep This film fits in well with it So definitely check out pans labyrinth if you're an 80s kid and just love classic cinema Word of warning though, it is in spanish So you have to read subtitles unless you can find a dubbed bird. Yeah, it almost doesn't matter No, it doesn't it you're watching this film for the visual not for the not for the um the dialogue And number one Obviously, we have to give it to the shape of water. You can't go past it. I mean it's it's a four-time winner for oscars It's got best director best picture Best original score and best production design, which I mean he's won for all the reasons What we just went through if you need to see a movie it's directed by del Toro and you haven't seen this yet Then we're not sure what you're doing, but check out. Why are you watching this? Why are you watching this just check out this movie? You know, it's one you like hang on I've heard about this movie so many times. I just watched the oscars, but I want to check out something else Then what do you do and check out this movie first? So that's the top five gemeral del Toro movies that we think are worth watching for you guys to check out I'm rime. I'm jaren and we'll see you nerds at the movies


Welcome, traders, to another Tickmeer weekly market outlook for weekmencing the 20th of March with me, Patrick Munnerley. This week's Federal Reserve policy meeting is going to be a very close call. On the one hand, inflation continues to run hot. The jobs market is strong and the Federal Reserve chaired Jerome Powell's testimony, which opened the door to a 50 basis point hike, suggested a desire to get interest rates a fair bit higher. However, lending conditions were already tightening and the fallout from recent events surrounding Silicon Valley Bank, Signature Bank and now Credit Suisse will only make banks more cautious. Regulators are also likely to recognise the need to be more proactive in this environment, which could in turn feed into more pressure on the banks and greater caution with regards to who they lend to, how much they lend and at what rate. This is a de facto tightening of monetary and financial conditions in the US, which could weigh heavily on economic activity. The Fed may be wary that a no change response could signal that they have finished tightening and the next move will be lower rates, but they can head off that by signalling in the text that this is a temporary pause and they stand ready to tighten again, should conditions warrant it. Moreover, they also have the updated forecast this month, which could continue to show their central tendency is for rates to end the year higher than their current level. Nonetheless, with the European Central Bank hiking by 50 basis points last week, without causing too much market disruption, this is likely to embolden the Fed to move by 25 bits on Wednesday. Moving to the charts, Dollar Index has rejected the 10550 level as anticipated. We now have the first leg of an impulsive decline there, corrected up into the 10470s. As this area acts as resistance now, we are looking for an extension down into an equality objective 10189. We also have weekly projected range sport coming in there, 10190s and the high volume note on the four hour chart here, 10170. I'm looking for an extension to the downside into this target zone from there. I'm going to be watching the bullish reversal patterns to engage on the wrong side, looking to play for a correction backup into test trend channel resistance. Come in 10350s. At this stage, it would take a close back through 10470s, 10480s to suggest the correction is complete. And then we would look at a retest of the price cycle highs into those 10580s. Moving to the Eurozone for this week, really all eyes will be on the PMI consumer confidence data for signs about how the first quarter is shaping up. So far sentiment data has pointed a relatively positive picture of the economy in February, but hard data for the first quarter shows little signs of a strong rebound. Also interesting will be the trade balance for January, which has seen big moves in energy import volumes and prices. From a technical perspective, Eurodollar in an interesting position here. A couple of key areas I'm watching as we head into the beginning of the week. This 106 level, if we can hold there and continue to find a bid, I would look for an extension up into the validation level for the equality objective, which is down at the 10430s. So a retest of that 108 handle could be on the cards. However, if we can't maintain support of the 106, we look for a downside extension, take out the triple bottom and trade to our target at 10430s. Moving to the UK. It's going to be a big week there in respect of central bank decisions. The Bank of England signaled it might finally be done with tightening, or at least that was it was close to being done to tightening. It said it would be monitoring signs of inflation persistence and hinted the burden of proof was on seeing inflation fall back rather than vice versa. Since then, the data has been encouraging. Wage growth is finally showing signs of having peaked. Though it's early days, the bank's own decision maker survey has suggested firms pricing strategies are becoming less aggressive too. We'll get one more inflation reading this week before Thursday's meeting, but last month saw a surprise dip in core services CPI. Until the recent drama in the financial markets and on the basis of recent BOE communications, markets felt that this data was probably quite enough to steer the BOE away from a 25 basis point move this month, but markets also seem to be of the opinion that those encouraging trends could continue and the committee could pause in May. Markets still leaning towards that outcome, though clearly a lot of change in the days leading up to the meeting. It's clear from recent communications that the bar for pausing is much lower at the BOE than it is at the ECB or at the Feds, with officials noting that the impact of past hikes is still largely to feed through. On the flip side, last September, October's volatility in UK markets after the mini-budget saw the BOE use targeted measures to address financial stability issues, which policymakers indicated would allow the bank's monetary policy to continue focusing on inflation. I suspect that the philosophy of at least trying to separate inflation fighting and financial stability, which is also adopted by ECB President Christine Lagarde, this week will again underpin this week's decision making. In short, I think the meeting is on knife edge and to a large extent it will come down to whether stability in financial markets starts to return, either way expect the committee to remain heavily divided. So from a technical perspective, Sterling held our support area at the 120-20s and we have extended to the upside. So I'm looking for now any pullbacks to find again additional sport 120-120s to trade up into our target zone here at the 120-260s. Now we have monthly projected range resistance just above there so we watch for any bearish reversal patterns in this area to engage on the short side and I would anticipate that we could see a move back into test the pivot here at the 120-120s and then we'll see if by a step back in and we can target that weekly trend line resistance coming in 126-70s. Now moving to Japan, very light on the data docket this week in Japan really it's just Thursday's nation might call CPI year on year. It's seen 43.1% from 4.2% the time in Tokyo CPI showed inflation declining from 4.4% to 3.4% in February thanks to the government energy subsidies. And let's say Capco anticipates a nationwide decrease from 4.3 to 3.2% and suggests that despite the drop in headline figures underlying inflation is expected to increase from 3.2 to 3.3% driven by food inflation and a slight pickup in services inflation. Food inflation is projected to rise from 7.6 to 7.8% and national services inflation to increase from 1.1 to 1.2% the highest since April 1998 when accounting for tax impacts. So from a technical perspective the dolly yen we got that initial move to the downside we were looking for three wave correction into that 135 handle which we got we were rejected from there and we've since broken down we're now testing the weekly S1 into 130.50 I'm looking now for a move to the downside to get a test of the equality objective versus the 135.20 swing high that should take us down into 129.40s as the next downside objective for the dollar yen. Moving down under to Australia what do we have in terms of data again very light on the data front the only release of note this week is going to be the RBA minutes on Tuesday minutes from March meeting are due to recap the central bank delivered a 10th consecutive raise increase in which it hyped the cash rate target by 25 basis points to 3.6% as expected. The RBA noted that the board remains resolute in its determination to return inflation's target and expects further tightening of monetary policy will be needed which was a slight tweak from its previous guidance that the board expects further increases in interest rates will be needed while it also stated that monthly CPI days to suggest that inflation seems to have peak the RBA added that growth has slowed and while the labour market remains very tight conditions have eased a little and uncertainties mean that there is a range potential scenarios for the Australian economy. Furthermore it noted in assessing when and how much further interest rates need to rise the board will be paying close attention to developments in the global economy trends in household spending and the outlook for inflation and the labour market from a technical perspective Aussie dollar has pulled back into test the support area that identified in last week's review into this 66 70s I'm looking now for buyers to step in here and extension up into the resistance at 67 70s then as pullbacks remain supported by the 66 90 the 67 handle we look for an extension to the upside and I'm targeting a test of the 68 50s as the next upside objective for the Aussie dollar at this stage you can take a close back through 65 80 suggest a false upside break and a correction that's complete and then we'll be talking a retest of price cycle lows into that 65 60 and let's just quickly check in with Bitcoin this morning Bitcoin has been on a tear here of of late through this banking crisis and what we are looking for now is as support is maintained into 27 200 I'm looking now for a test of the psychological 30 000 level from there watch for bearish reversal patterns and we would ideally like to see triple momentum divergence develop there from that I would then be looking for a pullback into test support back into the 26 500 level and that concludes the weekly market outlook for week commencing the 20th of March as always traders plan the trade trade the plan and most importantly manage your risk until next time thanks very much