images and bigraphical information about commissioner herman. the installation also features a directional sound system that provides highlights from commissioner herman's speeches. when a person is in close proximity, the ambient pattern on the sculpture will respond to their presence, the touch screen will prompt spruers to interact with it and various quotes will appear on the sculpture. this is what the tribute will look like when no one's near it and then this is what it will look like when someone comes near it, it will animate. the port that james r. herman and floating point collective have knee gauche yited gift agreement that provides the terms under which the port can accept this unconditional gift. this gift agreement will give the port the following

authority -- full ownership of the tribute, and secondly the approval of the content and any content changes. this agreement also contains customary releases and waivers for the committees and artist rights to allow the port unrestricted use for the tribute. in order to accept this there is a process. it has an estimated value of 250,000. this includes the gift for installation and replacement parts for a 20 year period. this subject to acceptance under the board of supervisors under the city's administrative code. todz i am seeking the commission's acknowledge of this gift and approval of the gift agreement that is attached to the staff report. with the commissions acknowledge of this tribute

gift, it can be presented to the board of supervisors. so the next steps are presenting this to the board of supervisors and then the artist, the floating point commitment submits [inaudible] approve this building permit once the city accepts is gift. and assuming and 85 day installation and fabrication period, we can have this tribute inside of the cruise terminal by this october. and the audience today is the chair of the james james r. herman memorial committee and shawn farly would like to make some remarks now about james r. herman.

>> thank you very much. just one little thing we wanted to add. jimmy was president for local 34 from 1963 to 1977 and then was the international president from 1977 to 1991. just wanted to kind of give you guys a sense of how this committee came together. this committee is a cross section of everybody who's a san francisco citizen and it's a cross section of everybody who was supported and mentored and taken care of by jimmy her man. . a man who was amazing. as you look at the people who were on that committee and every one of them when you sit down and have a committee meeting, people talk about jimmy and some people are close to tears when they talk about him and his legacy. we thank the port commission and the staff for the ability

to do this tribute. ultimately we came together and we had the assistance of auto desk and i want to make sure that people understand that this tribute would not have been possible without their assistance. they helped us find our artists, they helped us through communicating what our design and wants were directly to the artist and set up all of our initial meetings. we had roughly five different artists who came in with a broad base of different projects and we had a very clear mandate that we wanted one to reflect what jimmy was about, his values, his history, his legacy, social justice movement that he participated in and his time here as a port commissioner. all the facets of who he was in his life. with that very, very large grocery list, we also had to take in concept with what pier

27 is, a cutting edge facility, a world class facility. when you walk into the facility, a tribute that is commence rate with that facility and we think we've done that very, very well. i want to give credit to floating point. usually in the lwu and our different committee meetings there's discussion and arguments and rarely anything comes out with 100% consensus with virtually no debate. last point, we expected 90 days for the completion of in. during this time we'll be doing additional fund raising to support this project and we

thank you for the opportunity and ask for your support in the vote. thank you very much. >> can can i get a motion and a second. >> so moved. >> second. >> public comment? >> hello, maybe i was on mute. any way, i think it's very moving to hear about this tribute and obviously we've known that this terminal was going to be named after him for some time, but it seems like

it's been continuing celebration about jimmy herman and what he represented for the city of san francisco and what he did for the water front [inaudible] here in san francisco and so i think we're very [inaudible] tribute of this nature will keep his memory alive and i think the nice part of understanding this tribute is it's a very dynamic tribute, not just a bust or statue where you just look at it, but very much of the digital age, and it will be very much current in what today's generations and young people and the future can play with it and that's very exciting to hear. i think we're very supportive here and very pleased we have this opportunity and thank all the parties that are involved with auto testing and others that have contributed to make this happen in addition to what

you all have done on the committee. thank you. >> i too want to -- is my mic working? i want to thank shawn and the committee, auto desk, and floating point to help with this gift. james r. herman is a wonderful person and did so much for the nation, the city, the port. this is just such a wonderful gift and it's so nice to be able to accept this gift. we love gifts here at the port. [laughter] i just want to thank you again and i can't wait to see it and i'm really excited about this. i did have one question and that is, what happens after 20 years? >> basically the term of the gift agreement is for 20 years. during that -- after that period if there was a need to do something different, we would be coming back again to

address that period afterwards. but once the gift is given it belongs to the port so our goal long term is to make sure it stays relevant and make it up to date constantly. so 20 years you guys will be going, wow, we still love this. but that's basically it. it's just we needed a term to look at a useful life of all the components so that's what the term is, tabt useful life of components and addressing that piece. >> once the gift is given to us the port can do what it wants to it. it can turn off the sound if it needs to when in's a cruise ship visitors in or have the components featured differently, but for the life of it the port can do what it wants because it's an unconditional gift. >> it has a 20 year life span or i'm wondering after 20 years will the port be responsible

with the upkeep and will we continue to make it relevant. the >> is port isn't obligated to maintain it in the state that it's given, but the committee has formed a [inaudible] and they're going to continue to fund raise to keep it up to date and keep it current. >> great, thank you. >> i want to say i'm very proud of the committee for all their hard work. jimmy herman was a true working hero. he wasn't a bureaucrat. he had a third grade education, grew up in the streets of newark, new jersey. he went to sea as a young man, was a cook on the ships, and it's amazing he used to lecture college kids. he thought them what common sense was, taught them what social justice was and about responsibility, but thought them the art of you can be

whatever you want to be and also his work with the lansing street, with the two burton brothers, jimmy was very instrumental with that. jimmy marched with cesar chavez. i mean, today if jimmy was alive his accomplishments are so much he wouldn't want any recognition. he left his townhouse to a person. he just donated because he was the type of person that didn't believe much in money. he was the type of person that believed your mark is what you left behind, how many people that you helped in your life. i think jimmy herman was like the maya angelo of the water front. even with the lansing street when it was over up at cathedral hill, pacific heights, people in that area didn't want the street there so

jimmy, as president of the commission and him and the [inaudible] and leroy king, they were able to get delancey street where it was at. he said if we're not wanted over there we'll go where we're at. he said everybody in life deserves a second chance. and jimmy felt that. and even within our union we had a time where drugs and alcohol was very rampant and jimmy stepped out and said just because a person's an alcoholic or drug addict, they deserve a second chance in life. he set that program up at shipping companies so people could go and get help. today we have one of the largest program of recovering alcoholics and drug addicts in our union that are sober 20, 30 years because jimmy herman said

give the average person a break. give them a chance because they got a family to feed, they got kids, and jimmy was a guy that was for the little guys. i'm really happy and say portive of this. i want to say a very special thank you to the committee and also to director moyer. this thing got off track more than once and [inaudible] fruition. 30 years ago i never thought we'd have a world class terminal and it's here now. anything worth having in life, you have your ups and downs, gets off track. everybody stayed the course, veronica sanchez, peter daily and people who just kept pressing on until this day happened. i want to thank everybody involved and not giving up even when we agreed to disagree. this is a part of the process sometimes. sometimes just 'cause you don't agree on everything, that don't mean you're not on the same side.

sometime you have to have three or four different looks until you get it right. >> thank you so much. thank you for your kinds words. the last meeting, he's just been remarkable and this is not his day job and contracts between the port and anyone are not intuitive, they're not simplistic and they're not always fun and shawn has always brought his great sense of humor and commitment to it and put himself in a position of having a second full-time job out of his hov and respect. love and respect. and the fact he's wearing a stunning suit today, jimmy would be so proud. thank you for all you've done and your committee and veronica and all. and we're really excited by the

art. >> thank you shawn and dave and rene. all those in favor of resolution 1349 say i. >> i. >> opposed. >> resolution 1349 passed unanimous. [applause] next item. >> item 11a, request approval of contract terms and authorize staff to execute a contract with dock wise in an amount not to exceed 2.97 million for dry dock number one plus $270,000 incurred at loading subject at board of supervisors approval, a waiver of competitive sitting and other city contracting requirements. >> good afternoon commissioners. daily with the special projects group here to present on dry dock number one.

i'll start with some background on the project. it's been with us a long time. dry dock number one was constructed for the world war ii shipbuilding effort. it was in operation for a little over 60 years, declared unfit for service in '99, coming up on 75 years old. said on its last operational lift. we've been trying to find a proper home or final disposition for it ever since. we caught a break in 2009 with the assistance of minority leader, congresswoman nancy polosi and the department of defense to assist us with our effort. and set aside over the

intervening years, $3.8 million to complete the demolition of the dry dock. so where the money came from in the beginning was a complicated matter and this speaks to why we are here now after that and why it came about in 2009. initially it went to the department of defense, but moving from square one to square two in a year to fight the right agency to administer it. from there, finding a federal agency to execute it between the [inaudible] and the u.s. navy it took almost that amount of time again. once we got there we had a great project manager, a great project team. they contracted with titan salvage. , their previously competitive bidder [inaudible] sub contractor who we have long relationship with and who does

great work. a little bit of work, what you're seeing here, just to get a sense of the scale of it, those are four backhoes on the side of it. and then hauling it out at what's the future site of pier 70 where we had some room to dispose of the end sections. unfortunately it is about 12 feet too narrow to handle the mid body or we'd be doing that right now. phase one took the dock down from this original length down to 408 feet which doesn't seem like a lot for half the project budget r but bringing the foot brint down is the critical component of phase one because it opened up possibilities for phase two. the key part of phase one was the close out report. out report.

we requested that they [inaudible] are vied provide us with technical information of what to do with it once they're done. the most economic option with the least technical risk overall continues to be semisubmersible dry tow rarely found outside the united states. we took that recommendation and proceeded forward given the expertise behind it. in fact they made that recommendation not only once, but twice. the first time we reviewed all the alternatives and said please look at more and this was still their clear first choice. so the scope of work for that, semisubmersible dry tow is a service contract and really for sale of the asset, transfer of title and for transportation to an appropriate site overseas, but for purposes of our

contract, the contract terms, the key elements are that it transfers all liable from the port. . from the time they pick it up it is no longer ours. that's a particularly attractive point for me. what's going to pick it up? the vessel that we have in mind, there are only a few of them globally that can handle this kind of work, are the [inaudible] vessel operated by dock wise companies, which is a dutch heavy lift company. you can see here hauling about-i never confirming what those are, i think they're ferries, seven of them. container cranes, i believe that's a destroyer and offshore oil rigs so this is their business, they move big things all the time. and to my surprise they do it with not a lot of room on either end so this is the

loading plant for dry dock number one. it has 3.5 feet of room on either side so when i called heavy lift master and asked if he was comfortable with that and he said it's no problem, they do it all the time. as so where it's going, our contract is really about transfer of title and all the financial, poe exposure that remains after that. really we do have an interest in where it goes because part of the contract terms are that they deliver to us proof that they did it in a green environmentally responsible way. i'm going to handle it to the utility specialist with the real estate division and green

environmental guru. >> good afternoon commissioners, rich burrman. the location that dockwise proposed and ultimately that the staff has found to be acceptable is a recycling facility near shanghai. that's the name of it. the reason that we of course, took a great interest in it, is because most of us have seen films and videos of less than ideal ship recycling facilities in places like pakistan and bangladesh where you have places running rusty metal without any ppe without any management tools for handling the hazardous materials. we tried to vet this and think we found a very suitable location. i would venture to say this is the new convention for

international recycling standards for ships. this was a new shipyard that came online in 2011 and was designed specifically for recycling ships and the goal was to recycle into the highest international standards. those standards were set in 2009 in development with the hong kong convention under the interventional maritime association. it sets out a number of protocols that include how ships are managed while they're in service. a prejudice or portion of that is the [inaudible] hazardous materials and you have to renew that over a series of years. before you take a vessel out of service you have to do a final inventory for hazardous materials and you're looking at structure and waste that's

generated throughout the vessel itself. so 14001 has a standard for environmental systems management. there is one for quality management and then there is -- i guess it didn't make it on there. there's also an international standard for occupational health and safety and the international ship association has confirm that had the shipyard is fully compliant with the hong kong convention and these other certifications. the port has done a series of environmental testing over the course of four years as we've explored various opportunities to dispose of it. we have a very good profile of materials on board at the moment and we are going to use that as a way of establishing the [inaudible] is the world's

leading environmental monitoring association for ship recycling.

of all the materials at the shipyard. then you have the green certifications, which is essentially the environmental monitoring proof that everything that took place within the shipyard was in concert with the ship recycling plant so you tie it all together with that finance certification. and i will turn it back over to dayly. >> so the approval we're requesting today. the reason we're here asking for you to approve material contract terms instead of the contract itself is because the contract itself is still underway, we're still working out the details and the reason for that is that i can't stress enough how unusual this

contract mechanism is. the heavy lift companies don't typically do these types of things and it is a fortunate set of circumstances we're able to come together on this. we're asking you to approve do not exceed a limit of [inaudible] for those who are familiar is unexpected idle time. we frankly don't expect to need to use any of that because the terms of the contract we're negotiating now give us four free days for bad weather. anything beyond that would accrue at $45,000 a day up to a max imum of six days and it's not our liability anymore. we don't expect that.

we've planned it for the best time on the bay to do this type of removal. all financial exposure from transferable liability. i'm going to ask to make an errata change to the clarify a little bit. in the contract discussions the transfer of liability is really a technical term and what we're really talking about as another one of the strange accommodations with the insurance companies on the dookwise side is that they have asked that the port and the city carry insurance for the voyage for the vessel because we're the charter of the vessel for their insurance carriers they can't carry themselves.

that's advantage. strange. in talking through with them we came to the agreement they'd cover any deductibles, any overage, anything if the policy become insolvent, so it's a technical adjustment but i wanted to make sure that we're -- that was a recent development that we're clear when it comes time to sign a contract that we have your proper authority to enter into it. the third is that any indemnity provision that we come up with, there's some massaging done to it. and lastly that it includes retention of sea to cradle. they're really a third-party. they don't work dockwise. we're funding them through the project, but they oversee great

shipyard with a great track record. so with that, i'll leave it open to any questions and then make the errata changes after that. >> you can read it into the record right now and then when the commissioners makes a motion to approve they can make a motion as amended. >> thank you. so there are two changes, one is on the second page. second whereas down, subsection 2 which currently reeds title and all transferable liability associated will transfer upon completion of the heavy lift operation. i'm inserting four words to that. it will now read title and all transfer from associated so that captions the idea that there may be some technical way of we s