the title in the staff report, those options would be exercised if there was a need to further amortize any substructure improvements. that was one of the challenges of this lease. you have a small footprint. you have a large investment and a short-term to try to amortize those improvements. the lease also provide for a cpi every five years. there is a floor no less than 10%, no more than 20%. the rent is equal to the greater amount of the base rent or 15% of effective gross income. an effective note, if you would care to know, i can discuss that. the lease provides for a 15% net proceeds on the sale or transfer. there is a minimum, as amy said, minimum investment of $7.2 million.

there is the ability, as the lease provides, for lease credits. total rent 50% of the total rent may be applied for is rent credits. for base building and [speaker not understood] only, there are no credits for tenant improvements. there is also an additional 25% sinking fund. we haven't totally worked out how we're going to address this issue, but there is an additional 25% credit that will be used towardses additional -- additional substructure repairs. there is a -- port has the right for an early termination. this is unusual. and the lease encourages local business enterprises, climate change. we anticipate the term of the lease, that this will not be impacted in the short term of

the lease, 25 -- potentially 35 years lease. there is a street deposit that is due, $50,000, and there is all performance in contractor guarantees for completion of the project. and that concludes my report. >> public comment? the first person i have is john cain from [speaker not understood]. is he still here? hi, commissioners. monique. my name is john cain, owner of [speaker not understood] restaurant pier 28-1/2, one of the closest restaurants to this project and i'm here to strongly support this project. i think the restaurant is a great idea there. i'm from the school of

restaurants, more is better. i think the more people that come down there, especially during that window of two-hour before the game, two-hour after the game is a great opportunity for more people to feel comfortable walking down towards bart or any other form of public transit to get to the game. and then the special events opportunities here is great for the whole neighborhood i think. our biggest weekend ever were this last world series, this past fleet week and with america's cup last year. and i think this is an opportunity for those kind of events to bring greater impact into the neighborhood. i strongly support the plan and urge you to approve it. thank you. >> any other public comment? seeing none, public comment is closed. commissioner murphy, i know you need to leave shortly, so, have

you ask questions first. >> what is this escalation mean on this spreadsheet? 170,750? i know what it means in real estate terms, but -- >> is that the cpi you're referring to, the escalation? the minimum rent, the base rent, there is an escalation. it's every five years. we do a cpi. the minimum is 10%, the maximum adjustment would be 20%. >> and the hard cost? >> yes. >> sorry, it's confusing. it's in the cover of construction hard costs, you're referring to rental payments? i'm not sure whether those are -- >> just the construction page. >> what page is that? >> project exhibit b.

>> i am not reading that part of the lease permit. >> commissioner, i'm going to jump in and try to help. i think i know what we're talking about. this is on exhibit b. when we do projections of costs, when we do the initial projection of costs, we do a projected escalation based on when we think construction will start, based on where we think construction costs are going. however, the actual initial improvements cost which form the rent credit amount will be based on actual costs. so, our escalation estimate may be high, it may below. this is just an estimate for now since these -- we had planned construction out there doing this estimating probably six months ago. we're not going to start for a few months. this is just an estimate. the actual costs will be based on the actual contract and the costs will be verified by your staff.

>> there's no de-escalation, no? >> we would you all like to see some de-escalation construction. ~ >> we typically plan about a 15% annualized escalation and construction cost. >> thank you. >> commissioner brandon? >> is there any percentage rent on this lease? >> yes, 15%. the rent is calculated 15% of net effective income. >> what is that -- base or 15%? >> the greater of. >> the greater of. >> the greater of. we're guaranteed $25,000. on the up side, we participate the greater amount of 25,000 or 15%. >> is there a [speaker not understood] on this project? >> there is [speaker not understood] respond?

>> not yet, but there will be. >> when we bring this project back to you, there will be a cmd goal. >> okay, thank you. >> assuming we go through with the approval process, this is informational, and the final approval, what is the timeline for when we will see tenants in this building? >> we would hope to have tenants in the building next fall. it depend on our ability. we have to get the lease approved, state land wrapped up, bcdc approval. we have to get our permits. so, as you all know, that takes time, but we would hope that by next fall we would have tenants in place. >> and are you in negotiation with some prospective tenants now or you're waiting? >> we are in discussions now. >> and at what point would you be able to disclose so we have a sense whatv kind of tenants are coming in? >> i think after those leases

are signed. >> prospective lessees you would have a lease first before they could conclude anything with you. >> i just want to clarify [speaker not understood] on the cmd growth. the lease doesn't have a cmd goal under the administrative code, but the port commission does and that is correct, we are discussing that. your feedback discussion begin at the bought many of page 6 of the staff report. so, i just want to clarify. the city's official contract monitoring division, cmd will not be setting the goal, but the port staff will be negotiating a goal. is that responsive, commissioner? >> thank you. i had a couple questions with respect to some of the improvements around the apron. so, it was highlighted that

there would be some improvements and extending out public access along the apron area there that there would be some impacts potentially, improvements on substructure. was that contemplated initially in the area or would that -- >> [speaker not understood]. >> that's what i'm getting at, just substructure costs and responsibility for that area. >> the area that you see in yellow is the area that had substructure repairs done by the prior tenants which is why that is the limit of repairs for us. we believe that we have inspected it. we believe it is generally sound. there will be repairs to it, but it is structurally appropriate. going beyond that it will be virtually impossible without doing a full-size mike upgrade. this area is reusable and we believe will support the use very well. ~ full seismic one of the questions i had in

terms of the expansion into the area c, i guess it was termed, and the inside of the shed for sort of potential events, that sort of thing, have we determined -- so, that would be some additional fund whether there would be a split on the revenue generated from those events or how that would work? >> any revenue that we earn from that would also become part of your 15% participation. so, if we do -- if it goes well and we are earning revenue, you will be as well. >> would that be the separate from -- >> yes, it goes into the whole thing. >> i think i got the sense of it so far. excited to see this project moving forward. and i think as is pointed out, it's an area that is becoming more and more lively. it's a great time to see it

getting back up on line, so to speak. so, commissioners? next item. >> thank you very much for presentation. >> thank you very much. >> item 13 architects, request approval of fiscal year 2014-15 executive director salary. >> good evening, port commissioners, elaine forbes, [speaker not understood]. set the salary and working conditions for the current fiscal fy 2014 and 15. the port's executive director position is somewhat unusual in that it's not represented by a union agreement. an mou, nor is it covered by a labor contract as with department head of the [speaker not understood]. the charter grants this body exclusive authority to set the compensation of the port director and the charter also provide that the executive director's compensation will not exceed prevailing salaries

paid to others who are in similar positionses in comparable maritime employment. in prior years we have provided you with a salary survey, port directors of major west ports. and entered as departments similar within the city and county of san francisco. we recommend consistent with past practices that the benefits and working conditions for our executive director be in accordance with the municipal executives association and the mou, memorandum of understanding. most city department head are represented by nea. to the salary survey, we surveyed eight ports and really looked specifically at five of those which are sea ports. they have a salary, $272,000 as of november 5th of this year. and it ranges between 225 in stockton to 350,000 in long

beach. the other salary is 279,000, nearly 280,000, 2 19 for public works [speaker not understood]. our director salary is lower than the average of other sea ports by 21,43 2 and lower than the average of similar department head in the city and county of san francisco ~ by $29,000. as a matter of practice, you typically set our executive director's increase consistent with mea. this year, all mea represented staff have a 3% increase effective october 11th. that is really equivalent to a 2.07% increase for the current fiscal year. we do recommend that you increase our exec ~ executive

director's salary. you have the authority to increase the executive director salary in the range of other ceqa directors. you can set the salary for budget year fy 2015-16 since the mea m-o-u is set for next year. the resolution is currently crafted is just for the current year. we also recommend that the benefits and working conditions for the current year be the same as our mea m-o-u provide. and i'm here to answer any questions. thank you. >> so moved. >> second. >> is there public comment? seeing none, public comment is closed. i think in looking at the numbers here and the restrictions that have been placed on salaries the last several years and that our executive director salary is

significantly out of sync with other sea ports and department heads, i'd like to explore increasing that recommended salary number to something a bit higher in the range of 2 62,000, which would be not quite 4,000 over what was recommended ~ in the staff report. commissioner, if you have any thoughts. >> could you translate that into a percentage, overall percentage? ~ from her current salary? >> i can do it in my head. [laughter] >> it's $12,000 over my current salary, which would be about 5%. >> and i guess elaine, just so we under from a forecasting

standpoint, i think the preference of the commission is not to do [speaker not understood] increase at this time even though we know the budget process allow us to do that. so, we just want to under if we were to increase more than the current percentage that you recommend according to the mea guidelines, that would not push us into having to do something less next year. you know what i'm saying? >> it would not. the port has a certain level of salary savings. i mean, we certainly budget by position and then we have vacancies and attrition and it takes sometime to hire. so, we always have a little bit more salary allocated than we have physically budgeted. not every employee is pulling on their salary every day. so, we can certainly afford a slightly larger increase. >> we would want to hear next year because of the budget, we have an issue now that -- >> no. >> so, we need to just make sure we under the consequences of the actions we take now.

>> absolutely. our salary saving is in the hundred thousand dollar range. >> even if the budget cycle gets reforecasted or forecast? >> it did you. we do what's considered administrative. so, if there are changes in health benefit costs or retirement costs, they'll get more through the system. usually that hits our fund balance if it's bad, or to the good. but for change of this magnitude, we wouldn't need to adjust the budget because we have enough flexibility in our salary line. >> okay. >> and it's 5%. >> so, it's 5%, okay. >> so, i guess we need to amend the motion, then, to amend it to -- i think it's best to put it in percentage terms, not in

dollar terms, but percentage and dollar terms. and if it's 5%, it's an increase of $12,000 over the current. and the resolution does read today that it is just for this current fiscal year, correct? >> correct. >> and that we are saying that we want to continue to do an annual review on the future basis so that we're not necessarily in a multiple year increase at this time. subject to annual review. and it would not necessarily be in keeping with mea requirements that would be for subsequent salary refuse. ~ reviews. it would still be in the commission's discretion. >> mea has an increase in 2.5% in october. we would recommend 3.25% increase on the similar adjusted base and the commission could then decide if it is within their discretion to accept that recommendation or modify it. >> thank you. >> so, based on the amended motion?

>> i second. >> all in favor? >> aye. >> kraft nabiscotionv. [laughter] ~ congratulations >> thank you. thank you very much. >> we shall all of your hard work and dedication and turning back a lot of items that could have been utilized when we were in a budget crunch. so, thank you. >> thank you. i appreciate it very much. >> item 14, new business. >> any new business? >> may i ask -- we talked about it not necessarily, but i imagine -- what's happening with pier 29-1/2? the bulkhead or whatever, or is that something -- >> it's not agendized so i can't answer you, but i can put it on a future calendar to discuss. the short answer is nothing at the moment. >> okay. can we put it on a future calendar? >> sure. >> seeing no other new

business, we can adjourn in memoriam, in memory of jeff salter and tarantino. motion? >> second. >> moved. >> in favor? >> aye. >> meeting is adjourned. [your]

>> this is the meeting of the commission on the environment and today is tuesday november 25th, and it is 5:05, roll call, commissioner arce is excused. commissioner king is excused. commissioner gravanis? >> here. >> stephenson? >> here. >> commissioner wa*ld? >> here. >> commissioner wan. >> here. >> and as a point of order, arce has appointed gravanis for this meeting due to his absence. and the next item on the ago ahead agenda is jennifer kas, and the director this is a discussion item. >> this is on, great. wonderful. >> well, good evening, everyone and good evening, all of you.

and this is a wonderful opportunity for me to introduce to you somebody you have known perhaps, for years. but she is taking on a whole new level responsibility in the department, jennifer cast has been with the city for 13 years and before that, she has worked for elected officials in a number of public service capacities throughout the country. and we are incredibly lucky to have somebody of her caliper at the department of the environment and we have always been lucky. when i thought about who would make the best fit for a deputy director, in light of the fact that nobody can replace david osmond and that is a given that we know. i thought a lot about the fact that this person needs to compliment me. that really what i am looking for is an executive team. someone where the number one

and two together, will have the traits that will be most beneficial to the department. and so as i interviewed candidates and brought in other people outside to help me in that interview process i was doing it with the filter are what are the attributes that i am lacking or that i could use help in, or that somebody else can strengthen along with me? and so i was not looking for a subject matter expert, somebody who would be expert in all of the mutia of policy, i can do that and we have a lot of great program managers on that i wanted someone who had the strategic ability to look at systems, and improve them, and help us strategically place our department in the larger context of the city, city family and the city agencies, and non-profits and partners. and jennifer rose to the top very quickly. and frankly i was not sure she

wanted the job when i started and when she told me she might be interested, i was thrilled, we did an extensive interview process and jennifer was the number one pick for all of the people on the interview panel and i was so pleased when she said yes and i hope that she feels pleased about her decision. and she has had quite a lot on her plate, the last month or so. so with that, i am going to let her say a few words to you, come on up, jennifer. >> thank you, thank you, director raphael and commissioners i am very excited to be here and this is a good challenge for me and i am looking forward to working with you all and director and the rest of the department to move us forward. one of the first things that i have been doing is getting my head around the budget process and our budget and what our

programs need, and for the next fiscal year, and so joe and i have been digging in deep on that and i have also been supervising the energy efficiency team and during their transition period. and so it has been exciting to get to know our programs a little bit better. i am going to be looking at systems, but i don't like process, but i like it when it improves efficiency and really taking a big look at the way that we are dealing with all of our processes and how we get them down and who we need to involve to make sure that we check all of the boxes and making sure that we are doing it in a way that is efficient and effective and that is a lot of what i have been thinking about in the first month or so. thank >> thank you so much and congratulations and commissioners any questions or

comments for jennifer or for debbie about the appointment? >> yes, commissioner wald? >> yes, i will just say that it is a terrific choice and i was thrilled when i heard it and i look forward as i know my colleagues do to working with you, jennifer, in this new role, going forward. >> thank you. >> if there is no objection, can the record show that the commission very much welcomes you to this new position. >> thank you. >> yeah. [ applause ] >> thank you. thank you very much. deputy, that was great. before we go any father i just wanted to introduce our commissioner secretary monica fish and also, our deputy city attorney, thomas owen who as you can see this evening is a rose among thorns. next item please? >> the next item is there any

public on item two? next item is approval of minutes of the september 30, 2014, commission on the environment reschedule meeting commissioners in your package you have a copy of the draft minutes of the discussion and the action item. >> are there any comments on the minutes? any directions or any, omission? s none from the... >> none from the commissioners? any members of the public who wish to comment on the draft minutes? >> is there a motion to approve the minutes. >> moved. >> moved by commissioner wald and seconded by commissioner stephenson, and i know that in the past we have often been approving the minutes sort of by acclamation and just looking over her wonderful guidelines that she put together and i see that we are expected to do a roll call vote. so if you want to do that, . >> approval on the minutes, commissioner gravanis? >> yes.

>> commissioner stephenson. >> yes. >> commissioner wa*ld. >> yes. >> commissioner wan. >> yes. >> the meeting minutes have been approved. >> next item are public meants, members of the public may address the commission on matters that are within the commission's jurisdiction, and are not on today's agenda. >> are there any members of the public who wish to speak in we have speaker cards for specific items but if you want to speak on anything that is not on the agenda, i here no one, so next item. >> review and approval of the draft resolution, 2014-16 coe, approving the department of environment funding recommendation for the grant award to support the used oil community mural project in bay view hunter's point and a copy of your resolution and funding recommendation, director and speak ner place of anne, eng is justice coordinator and this is a discussion and action item. >> would you like to introduce the item?

>> i would love to. as you may know bay view huntary's point is one of the neighborhoods that suffers from the largest incident of illegal dumping. and that illegal dumping is not only garbage and trash, it is electronics and toxic and motor oil, and we have written a grant to cal recycle, the state agency that over sees funding of household hazardous waste, collection initiatives, to increase awareness in the area for proper disposal and the challenges of what illegal disposal dumping has on the community. and one of the items that we wanted to do was to put together a mural to highlight and utilize local talent, that would speak in a way that the community would be inspired by. so, in order to do that, we