million. the marginal wharf is a 50 foot swath on the bay side of the sea wall running along the embarcadero. part of it was built in 1914, the other was 1965. we tried non-destructive concrete piles. so far found to be suitable for advanced construction projects. if you recall, from our last phase, the first is what we intend to deliver for the america cup. at that time we did not have to deliver the plaza transportation

area. there would be elements of the building not expelled at the time. with of those changes, we are able to fully fund phase one. reducing the shortfall of $12 million in face to. as we progress the design, we are looking at other value engineering phases. possibly deferring some element into the future. these changes could be implemented in order to keep the project on schedule, something the department of public works could be amended to enable so that it could continue its role as project manager and have the design team continue in its role for the next page of the

prague -- next phase of the project. they have met our schedule and to deliver the drawings and specifications as required. park staff proposes to utilize an innovative project delivery approach for the services. a major general contractor for this purpose. our project manager with the department of public works explains this project delivery. thank you. >> good afternoon, commissioners. edward lopez. before i give my presentation, given the project managers with the vw -- dpw, she has been

working very closely with the project. i wanted to provide some context of project delivery for means of building up the project. public projects in san francisco are done in a traditional way. this method tends to work well for projects that are fairly straightforward. for the projects that are more complex in nature, we have been using a new delivery method called construction manager general contractor. we were successful in using this project for the california development academy of sciences, including the general hospital headquarters and the veterans

building. the new police headquarters as well. this method helps projects where there is a certain amount of complicity. contractors are hired to look at the drawings that the design team put together and help with coordination on that effort, resulting in change orders, in turn resulting in savings to the project. chapter 6 of the administrative code describes the process for using this delivery method. in summary, it is just a process where we issue requests where contractors are screen and evaluate and test basis for contractors deemed qualified in

order to respond to a request for proposals where we have a prescriptive criteria for evaluating proposals. 65% of the evaluation is based on cost. the rest is based on non-cost items. those include looking at their commitment to comply with city goals for the human rights commission, complying with local hiring requirements, quality of staff, purged to deliver savings that might offer as part of the project. because we are working on an extremely aggressive deadline to deliver this project i and i'm for the america's cup, we wanted to highlight the provisions of the contract. they contain a certain level of

financial risk. immediately after selecting the contractor, we would direct the contractor to provide construction services. as mentioned earlier, this is when the contractor oversees a portion of the document coordination. costs estimated to make sure we are tracking the fixed construction budget limit. they also became a process of qualified trade contractors. every single one is pre- qualified, enabling us as they know how to perform the work. all of this work does not

require pre-construction work. this is prior to port clearance. if the port were to cancel this, the money is spent during the service, we would have to get value of the project is not moving forward. the next phase of the project would be to allow the contractor to begin ordering items for certain, specific traits. these packages to but we require anywhere from 14 weeks to 16 weeks of lead time before the application begins.

subcontractors prepare shop drawings. they are in dialogue with our design team. working out construction details and so on. if the project were not to clear and the phase was completed, the port would be at risk of having spent seven% to 8% of the construction costs, for which we would get very little return. that is the level of pre- construction services you have seen being performed. none would take place prior to seaport clearance. getting into the construction contract is the proficiency to not get ourselves ahead of it. i think this covers representation. would you like to add anything?

>> one question, the cmgc approach has been successful in other projects, what about delayed the damage claims that the end of the project? >> sorry, can we finish the presentation? >> if we are done, that is fine. >> the presentation is complete. >> may i answer your question? >> ask it again? >> it has helped us on other projects. methods in which we finish on budget, we started construction

in the middle of services. we are saving money, solving issues as we go along, before starting fabrication. >> may be just another question, this would be 7%? >> we are talking more than that. >> there are two levels. >> cost estimate -- cost estimating vetting of documents. the next phase, the worst case

scenario would be if we had a canceled contract and we had spent money on preparing the shop drawings and placing orders. that is worth 7% to 8% of the construction contract. >> is there public comment on this item? >> passage? >> thank you. >> all in favor? o>> aye. >> thank you very much. let's it>> item 10a. informational presentation on the ports maritime industry

preservation policy. >> good afternoon, commissioners. at the first commission meeting this year, the day i have an informational presentation for the commission. we have put the guidelines together. this was a fun project to work on. this was informational, getting information from you, taking this policy to the advisory committees. hopefully we will come back to you relatively soon for a vote

on the policy. this has a " in it that mirrors my views about the port of seven cisco. a complex entity that has always connect the waterfront to the larger city beyond. when we envision the port, first we think of the dearth of ships that were loaded and unloaded. that is how i see the port of san francisco. we have done this for close to 148 years. for over 100 years, the port was the primary industrial port of the west coast, really developed

because of our assets here in san francisco. shipping technology has obviously changed. obviously we were obsolete by the late 1950's. in the late 1960's the container age hit. spatially it could handle that kind of industry. so, after that point at which the port was concerned over how to protect the water front and we put together the land-use plan, the official policy document of the port commission, it set forth goals and got policies for port approval and public open spaces before

maritime industry needs. since the initial adoption in 1997, the port commission has demanded that went a couple of times to look at public access issues and architectural guidelines. the deal has been tweaked to realize the rich maritime heritage of the embarcadero as a nationally recognized historic district, preserving the waterfront and historic buildings. the proposed preservation plan goes to the next step, and it really is protecting uses. i think that court staff agrees. it is needed in a lot of different ways.

as defined in the land use plan, those require access to the water in order to function. does it really have to happen? does it need water access to thrive? the policy experts presented today, it is for formal and more specific policy direction, measures to foster financial and other strategies to support current and long term protection of valuable and limited connections and facilities. our days as a dominant cargo port are over.

we still boast a very proud maritime portfolio, passengers moving across the docs. we don't of the largest commercial floating died drop -- dry dock in america and our home to pilots and marine exchanges, as well as others. it looks like after decades of effort, we are very close to building a middle-class cruise ship terminal. playing host to the 34th america's cup, i hope so. i look forward to that. the preservation policy as proposed in recognition of the changes that continue to hit -- continue to occur.

the first policy espy to encourage development and rehabilitation for current commercial uses or poor priority areas. to protect the natural deepwater berths for active maritime uses requiring such groups to utilize vessels no less than once per week and for a static maritime museums, etc.. 3, historical projects that incorporate facilities and or incorporate facilities to incorporate maritime industrial

activities. discouraging the location of modern, water-dependent commercial use facilities other than parks outside of waterfront access. five, maintaining adequate water depth of current deep water areas to accommodate activities by prioritizing funding of minimum levels in the annual counterplan. 6, promoting marine recreational uses for current developments and recreational uses. 7, prioritize independent uses for the purpose of accommodating non-maritime uses in public access corridors as otherwise identified in the land use plan. leslie, part of this policy was

the creation of a maritime policy fund, the purpose of which would be to create revenue sources for preparing neighborhoods and facilities that support numerous maritime needs. we will continue to work with our stakeholders to define funding options for this purpose, such as development contributions for rehabilitation projects. there are other ideas that we have that we welcome back to the port commission with at our next meeting. the policy is meant to guide staff in the importance of maritime assets for current maritime activity in accordance with long maritime history and perpetual mission.

why this policy? what is at risk? i would look -- i would like to quote another from port city. another from our architectural heritage. still working on the docks, i think this policy tries to look at the risk. "the tragedy for maritime use at the port is that you can prevail over particular issues hundreds of times, but you " -- you can only fail once and everyone is gone forever." thank you. >> thank you. public speakers? >> good afternoon, commissioners. my name is [unintelligible]

and i am the general manager for the shipyard in san francisco. thank you for putting together this maritime preservation policy. i see it as another example of the carnival splendor. a span of pop tarts and media. that ship could not have been docked here if it had not been for the forward thinking of port of san francisco in 2006 when they put together an agreement that allowed us to expand dry dock no. 2. that provides jobs, working closely with the port of san francisco. today we continue to work closely with the fort to maintain access to the shipyard.

i appreciate the hard work and effort that court staff has put into these challenges. i see the maritime preservation policy is another step in the process we must. i applaud the port and the commission for their efforts on the san francisco waterfront. thank you very much. >> thank you. >> i have got to. [laughter] -- i have got you [laughter] >> you did not read my card one time. one of the things when i worked at the presidio was i wrote a lark -- a lot of articles on history. so, you have to remember that before big ships came here, they

were all ready using raids. they voted from island to island -- boded from island to island. we need to connect the dots from the middle of nowhere. start with people. another aspect that your commissioners should delve into, the role of the coast guard's. someone that used to go to alaska to see the new with, thousands and thousands of them. they were introduced to alcohol and were dying, left to right and center. he introduced protein and saved

the villages. before the bay bridge was built, there was a connection between this area called the ferry building and our transportation. looking at the san francisco grid you can see that it lends itself in this direction. but i can go on and on, but the main thing is that we have to learn to connect the dots and we have to learn to be true to history so that future generations know what happened here. at one time they built ships. many of them were black. they came from haiti. they built some of the best ships. these are the guys, even though they were people of color, they

were given and were embraced by kings and queens because at that time anyone who could build a good ships, they could generate a lot of money. i am saying that because this area played an important role in the past. as peter was saying, we were not ready for the container shipping industry. but we can regain it. if we do creative financing and we think outside of the box. thank you very much. >> thank you. pola nixon? >> commissioners, director, my name is paul nixon. i am a new member of the central

waterfront valley committee. i think it was more than 10 years ago. at the same time that the central waterfront advisory committee began, about 10 years ago, the people on that committee, we got together and came up with the idea of a powered boat water trail in san francisco. that has gone through the legislature. it has gone through a process that could take years and years. just last month, $1 million was given to [unintelligible] for the beginning process of setting up a water trail. this $1 million that was given

for what they call, in the plan, non-motorized small boats, this million dollars contains a lot of money for education. this is why i am speaking on this particular issue. the sixth point had to deal with oceangoing vessels. as far as human powerboats, processes are being set up already for education of the boaters, kayakers, like we have many of here. out rigging to new people. a process set up to help them understand the needs of others in the area. in the past we have worked with

the harbor safety committee on these issues. i think that we thoroughly endorsed these ideas because we need some education. oceangoing vessels, the maritime industry here, needs some education on how these things work. for example, what do you know about swimming from candlestick park to hyde park? when would that be done? would that be an interference with shipping? well, i piloted one of those swims. they happen at 6:00 i am in the morning and there was not one boat out there. the swimmers swim right under the bay bridge in the middle. there are a lot of things that do not conflict and a lot of communica