work. i don't have a report i was out of town for 2 weeks. assured of it was to hear about [inaudible].. that's it for me >> that concludes mission support is there any public comments? seeing none, will move the next item >> item 10 a request approval of except and expend $1 million congestion mitigation and air quality improvement funding. for the metropolitan transportation commission in california coastal conservancy through priority conservation area grants program. for pedestrian and [inaudible] improvement within peer 70 park project area and committing any necessary matching funds. >> so moved >> 2nd >> the public comment rustic seeing none,, all in favor aye.

opposed, nay. consent calendar carries. >> item 11 a informational [inaudible] report on contracting activities refers fiscal year 2013 and 14 july 1, 2013 through december 31, 2013. >> good afternoon commission. i megan wallace reports budget manager. today i'm actually going to be providing contacts update report. this report is for the 1st two quarters of the fiscal year. so, july through december 2013. just as an overview of what i want to cover in this presentation, as you made be the mother with this report really covers professional services and

construction contracts. 1st i'm going to touch upon the executive directors use of delegated authority. then go into the contract activity so far in this fiscal year as well as discussed the local business enterprise activity including new contracts, payments made, are effective effectiveness at the local hiring program, and then talk about highlights and opportunities for improving our local enterprise utilization. 1st of all, as a reminder, the delegated authority has been granted to the executive director for, it really helps streamline the process and is consistent with how other department manage the contracts processed and giving a certain level of approval to the executive director rather than having to bring everything to the court commission. as you can see there's up to $5000 of authority for contract service order so those are individual

projects within larger contract amounts that of already approved by port commission. $4000 for public works contract, so that's the approval of new contracts that are $400,000 or less. then, up to $100,000 for professional service contract. so far this fiscal year the executive director has approved $1.4 million of contract service orders all of which were $200,000 or less. about half $1 million of new contracts, which includes 3 professional service contracts and 1 public works contract. before i go into the specific contract activities, so far this fiscal year, i just want to remind you of what the local, widely mind our business enterprise participation. through administration code 14 point b,

the local business enterprise program was established and it's really intended to expand contracting opportunities for small businesses in the city. prime contractors so the main contractors applying for contracts may be given business accounts for being local enterprises. then, in addition to that additional benefit the contract monitoring division actually gives sick subcontinent goals for approved contracts. through the life of the contract, so by the end of the contract that subcontracting goals must be met. then in addition to that port staff is really starting to monitor overall local business enterprise contracts. so, in addition to watching our subcontract use you see all the reporting on how much money is

not going to prime contractors as well. so [inaudible] is really looking out for the life of eye contact our meeting of contracting goals,, but i want to engage in a conversation with you that includes the amount of money going to the ponds. primes. for the newly awarded contracts of their 5 newly awarded contracts totaling $1.818 million. one of these is large enough and so within the requirements of 14b of the administration go. there was a subcontracting goal of 8% said for that particular contract. you can see at the top of the table it's cal state constructors. it was a contract almost $700,000. in addition to that, there were 4 contracts that are not bound by the ordinance because they're too small. you can see that in the case of next contract pdb construction is less than $400,000 which is the

requirements for construction contracts. for professional services, all of those contracts are below $50,000 and therefore were required to comply with 14b of the administration go. however, it's really important to note that of these 5 new contracts 3 are actually obe themselves and i should note that david perry and associates is currently in the process of trying to become obese or certified. so things like a pretty good success there that 4 out of our side 5 contracts could be obe's. the information you're probably most interested in is how are we doing on our contract so far this fiscal year. what i found is that overall, of the $8.69 proximately that we paid to contractors, only about 14% of it has gone to lps. i

apologize. that's actually typo. it's 40% lb contractors. not just subcontractors that. so that's below the port commission's general goal of 20%. additionally, for contracts that are compliant with 14 point b, 7.5 million have been paid over all of which 15% of conduit obe, subcontractors. you can see from the table that on the far right is an average goal of 20% in our really want to emphasize average because i'm trying to provide some information general information for you, but really each of these categorizes comprised of several , many contracts. each with their own individual goals. this just a way for you to see, on average, with those goals come to. sue can see that we are performing lower than what our goals really are overall. but it's important to note,

this is just for two quarters of the fiscal year. we need to be considering what is the overall life of these contracts and you can see in the green, i have highlighted all 3 of these categories are performing above the port commission's 20% goal and above the cmd average goals for each of those categories. all in all, i want to say that even though the numbers for the 1st half of fiscal year seem low, all in all, were looking pretty good on these contracts. there are a few contracts that were monitoring closely. we either know that there's not a way to improve them, for example, dredging contract is really set to the amount of hazardous waste that we pull from our dredging materials and get it off-site. we don't have that much environmentally contaminated soil that were removing so were having a positive environmental payoff in exchange for not meeting our

goal. as far as improving our outlook am i think the message here is in addition to compliance reporting to come doing here today and having everybody look at the numbers and be aware of where we are, is thinking about capacity building. i think that the business exchange that we had recently at the local chamber is a great way of getting information and understand where there are gaps in our communication and in enterprises ability to participate in our contracts. as well as understand what our current representation is. so i try to provide a snapshot here of really, what groups are being represented by our current contracts. i do not go into a lot of detail but i'd love to get any feedback that you have as far as, that could provide after the meeting or try to answer here to help get into the weeds a little bit more about this if you'd like.

all in all, you can see that we have approximately 106 obese currently represented in all of our context. approximate which 21 are minority owned 26 are women-owned and i personally don't have data currently about the lbd to community but cmd inform either starting to have enterprises are now have the option to report on that information and i have that information will remain a crew overtime. then i also just one of touch on one other opportunity were offering at the port. you may recall the ego center we recently had a lease and new opportunity for local organizations that were competing for management of the ego center. then real estate is going to be touching upon the pure dirty 3 lease opportunity. i just want to highlight those outside of my typical reporting but definitely of course

everyone keeping an eye on. finally the local hire from that i want to highlight that the port has the requirements we had 10 projects that are required to meet certain percentages, 25% of local hiring were 25% of apprenticeships for these projects. this table shows that in a lot of cases the actual percentages are below those requirements and it's really because they are actually, those contractors receive exemptions because they provide special services that are just difficult to get local hires for those particular jobs. all in all, only wg is performing that were on track for meeting our goals for those projects. so that's the end of my report if you have any questions a b happy to answer them now or please feel free to pose questions that i can answer

individually. >> let's see if there's any public comment? seeing none,, commissioners? >> pretty good summary. thank you a much bit i don't have any questions >> i'm just wondering [inaudible] great commission reporter and terms of our reach in terms of local chambers so that strikes me as being vertically by the difference segments in the community. i am wondering, since there are industry organizations but i guess our horizontal the professional services as well as contractors and whether we've reached out to any of the industry chapters to also do something similar to explain that we are looking for lps and for them to go across the industry groupings which are very specific to the kind of work we do here at the ports. look at the average not only vertically by different groups

but also horizontally as some of these industry trade associations also may give us an opportunity that they could because these people probably are member of some trade association we could go to to make a presentation or invite him to the port. some of what we do a chamber of commerce is. >> thank you so much for a great report. i want to thank you for your reporting on the primes also. congratulations on the 94% of new contracts. that is wonderful and shows were trying to move in the right direction. i really appreciate that. i want to go back to that effort to improve page. we have 106 contract. but we reported 67 where are the other

>> i ran out of space so seemed everyone someone would ask that question. really, there are others. not meeting the minority nor women so there may be male [inaudible] for example. so that covers the range. >> thank you. >> i want to thank you for a complete information we received a form. i just really want to thank you and thank you for the sabbath. i know it takes a lot of work to compile this information but it's very much appreciated. i think that's what helps us figure out what we can see ways we can all do better job reaching out to our community or applauding the success we've had in that. so thank you. >> thank you. >> will call the next item >> item 12 a request approval of the use of track agreement specific railroad company renting port the right to use [inaudible] by iup and

burlington northern [inaudible] company. for the purpose of reconstructing the track [inaudible] for the federal railroad administration. this action constitutes approval action for the project for the purpose of a [inaudible] pursuant to section 3.30 1.04 of the same san francisco administrative code >> good afternoon commissioners. executive director moyer. members of the public, my name is stephen real. i am the project manager for the clinching the project from the engineering side. standing for jim mahoney who i thought was on vacation. jim is maritime sponsor of this project and also the main total

due role in negotiating this item. the item before you today is in agreement with unit specific railroad granting the port the right to use the queen street be tracked for purposes of reconstructing the track using fra grant funds without recommending pulling this agreement. as background, the quincy lead is a 9/10 of a mile-long freight rail spur will be tracked by the direct freight rail service to the port maritime peers 82, 84, 9296, is the only [inaudible] exiting the main line just n. of oakdale ave. and winding its way through city streets before crossing 3rd street just north of [inaudible] should. entering port property. the lead is jointly owned by burlington northern santa fe and [inaudible] and union specific role. ub is the sole operating on. there's an urgent need to

upgrade the track to increase the reliability and efficiency of rail service to the ports and provide capability for us actual locomotives to enter the port. here's a map of the lead. what have we done? the port applied for and fra rail line and relocation grant in october of 2010. we were notified of a $3 million award in september of 2011. the grant requires a 10% match making this a minimum of $2.2 million project. during 2012 and 2013 port staff completed pulmonary engine and work with the fra to develop project scope that fit the budget and meets the intent of the grant award. port staff applied for and received negative declaration from the city planning department and in april of 2013 and then in october 2013 we were here

before the commission were you authorize us to accept and expend the grant funds. it's been a while and the holdup has been with the [inaudible] process. after the port we finally achieved compliance with [inaudible]. the fra grant us a categorical solution a few weeks ago. i just want to note this is a 16 month long process. by far the longest component of this project. finally, with it cleared the fra to provide us with a complete grant agreement last week. today's request we are here before you, as a mission, to seek authorization to enter into the track use agreement with [inaudible] to allow the poor to carry out the track improvements the grant funds necessitate the port performance meet agency design and constructing improvements in compliance with the rules of

the grant. to that end, staff has negotiated this agreement which includes the following key terms: it provides port access and use of the railroad track for purposes of reconstruction. the proposed agreement does not modify the basic terms and conditions of the existing city permits and franchise agreements. which date back to 1900. the use of [inaudible] are segmented in which we will take a segment of the track, execute the work, epr will inspect it and it gets returned or accepted that bayou bar. this is really important because were going to be working on various segments of the track at a time and we do not want to take on the liability and risk of being responsible for the entire lead with just a portion were working on. continued usage by the railroad within the limited

work windows. no fees are associated with the use of the track. the term is through december 31 of 2015. the port is responsible for maintenance of the track segment under construction. i want to remind the commission today that supports action today constitutes the sequel approved action subject to the 30 day appeal. that is separate from the agreements. next up is: provided the commission approves staff osu the use and track use of track agreements. we expect to enter into the grant agreement next month subject to board of supervisors action to accept their extended grant funded in june will commence final engineering using a consultant selected from our current as needed engineering contracts. we researched the grant government requirements are confident this approach is compliance. will he

will return to the commission in december for authorization advertised for construction bids and then again in april of 2015 for authorization to work the construction contract. construction should start and summer of 2015 wrap up by the end of the year. any questions? >> so moved >> 2nd? >> 2nd. >> of the comments? seeing none,, commissioners, comments? is very complete presentation so thank you and again congratulations for getting the grant in the 1st place. i know that was quite an undertaking. >> [inaudible]. >> thank you >> all in favor aye. opposed, the item carries. thank you. >> item 13 8 request approval

to quest for proposal for a retail space located at pier 33 n. on the embarcadero for the pastry san francisco mall small businesses currently working in san francisco organization. >> one moment, please. i'm waiting for my technical advisor. good afternoon commissioners. >> good afternoon. susan reynolds from the real estate department. i'm back before you to request your approval for, to issue an rfp for the retail space located at pier 33 n. or as we call it. there is 3 1/2. i was before you integrate to give you a little bit of background on this project. since that time i have, this is this based on it here 33 1/2

and i have conducted more outreach and expanded the pool of agencies that can help us achieve this opportunity to provide access to basically, a turnkey operation for our local small businesses. i also have regina and dressy here good she is the executive director of the small business commission. we are also using their resources to do some of our outreach and this is not an exhaustive list. we are hoping that this list grows and grows and that with the partnership with our community based organization we will find local small businesses that can partner together to make this a great opportunity site to provide goods and services to

the visitors of san francisco, the neighborhood residents, and the people that worked in our neighborhoods. so, i did to find the small business definition to focus on our small businesses in our community, arts san francisco businesses. again, here are some of the pictures of the site. with the approval of this rfp we will issue the rfp come hold an open house for anyone that wants to come and visit, and see what the opportunities look like. we are going to take our time. we have, i am working on putting together a community selection review panel that is comprised of hopefully, representatives from every quadrant of our led

community and cbo community that are business owners and business consultants that can make sure that whoever takes this space is going to be successful. so it's going to work for all of us. so, i will be back before you once we have received all of these proposals, reviewed the proposals, and will come back with a recommendation for your approval. >> so moved. >> 2nd >> public comment? >> regina [inaudible] >> thank you. thank you pres. katz and commissioners and dir. moyer. i'm happy to be here this afternoon to give our support for the great work that susan has done with this space

and the concept that she's developed in the rfp that's going out and wanted to just let you know that our office is going to lend its support in working with susan to help identify businesses, conducting the outreach, could we will also coordinate with the investment neighborhood team out of the office of economic and workforce development to really help pull together a unique selection and interesting and vibrant selection of businesses to be able to take advantage of this great opportunity to be here on the space. on the embarcadero. i also just want to say congratulations on the great work that the port is doing with all bits of the hours. i look for to bring that information back out to the commission. i look forward to your support for this rfp. >> thank you and thanks for your help. next is mark bailey. [inaudible]. >> good afternoon. thank you

for having me here. thank you so much to the port staffer putting this proposal together. we think it's a way to be a great location for small businesses. it's a great opportunity. just amazing space. the one thing i would hope the commission would consider is changing the lv requirements for right now it's currently set at 3 years.. perhaps they could come in and do 6 months to 12 months. that's what the city requires some hoping we could bring that together. >> thank you. next, matthew thomas from african-american chamber of commerce. >> good afternoon commissioners dir. moyer. my name is matthew thomas and vice president of

the symphysis go american chamber of commerce. let me give by thinking the commissioners and dir. moyer and her staff were being committed to creating a level playing field here at the port. we realize this is not a one-way street. what i do our parts to help make your program as effective and relevant as possible. i'm here to request your approval for the [inaudible] being discussed. having tried to find out the last time african-american business has been located on a peer. i've got various dates. guys may know better than me but it's been a while. this rfp does create a rare opportunity for our businesses to get into a great location. as you probably know this particular space has enough room for 4 businesses to be based out of and we have actually identified

for great candidates that could be in the space. so, we would appreciate your positive vote to make this rfp to reality. thank you >> thank you. is there any further public comment? seeing none, public comment is close. measures? >> i just want to thank you for coming up with this opportunity, susan. it sounds like a wonderful opportunity it sounds like there's going to be a lot of interest. so, congratulations and good luck. >> i think we've discussed this a couple times already. i think it seems like today is how v-e day. which is great. sometimes we are the [inaudible] a theme to our commission meetings and i think this is the reality the vision and goals the lead in setting as a commission to execute against. the appreciate the public also coming and

noting that and hoping this will be a successful venture and i hopefully the outreach will be bringing as many qualified respondents and i look forward to hearing what the results are. thank you >> thanks susan for pulling this together. >> commissioner adam >> susan, i appreciate the due diligence and small business commission coming out and all the partners and i do so maybe this is a blueprint as we move forward. as the port tries to diversify, but also when the business of providing service to the community. so, i appreciate all those that put in and appreciate you coming to the chamber mr. thomas. we appreciate the realizes not a one-way street and the port is your friend here were not the enemy. the commissioners will work just serving the community. that's all we