going to do that, but i want to make sure these agreements are worded in flexible ways in the event we decide to change traffic patternses and need more change through technology as you mentioned earlier or if we move meters inside, off the streets, this is all contemplated we're not going to find ourselves in a difficult situation with any operator as we try to innovate think more effectively for the city in the long run i know these agreements are not that long still, just to make sure the agreements are worded in a way gives them incentive to think about these new arrangements as well as us to have the flexibility to talk to them, during the terms of the lease before they come up so we don't have to wait three years, before we think about change parking

and traffic >> yes commissioner, the agreements will reflect that. the whole issue of traffic and how we exit our lots and efficiency around or lots is important for merchant and parking operators, we will be looking for parking operators, that have some experience with traffic flow, that have worked with the city in different capacities as many of the operators of some of the lots currently do. if there are development that will be going on i think the agreement will reflect some level of flexibility along those lines as well. >> so one of the questions, i guess the agreements have been month to month since december of 2012, is there any reason it's taken us to 2015, to decide to

put them out for are you -- renewal or rebid >> we're receiving percentage rent on the operations we have increased the base rent annually, to reflect market increase if you will, while we always endeavor to get these out quick leer we're still hopefully, receiving a fair return on our operations >> okay. i just was it a delay in the thought process? we're not doing final harm -- financial harm? >> no. i was back to the commission in october 2013, i believe at that point, we got really positive

feedback from the commission itself we changed from a big process to a request for proposal process, we had the number of outreach to engage in it took longer than we anticipated to get the change and also the way we do it and get sufficient community outreacher we're here today hopefully, to move forward >> my comment just clarify, we have to consider going down that path, on embarcadero whether would be parking meters i think you did mention that in your earlier introductory comments i think that is important to consider what we could do on the road way and solve two problems at once increase the capacity of parking and figure out whether

there is a solution to some of the traffic issues we currently see. >> absolutely, we will take that into consideration. thank you. >> commissioner adams? >> i want to thank jay and bob i want to thank dr. er moyer to bring bob on i know this has taken a while to come about, but this is well crafted, you heard the commission myself and mission ner brandon, even commissioner katz said we want equal plan for trying to make it more equal, community outreach, you guys have done this this say nice piece of work this say start. i want to say thank you. >> thank you both. i'm very excited, i know it's taking a little bit of time to get here part of that is trying

to be creative and get it right, i want to thank for you eports on that, i'm pleased and excited on what we have before us. if i could take this opportunity. the amplify a little bit on the nature and the partnership -- the strength and structure of the partnership, as a significant part of the score i know that's where we're trying to be creative and do outreach but take the opportunity to amplify. the >> the reason the partnership is important, is to do two things allow for mentoring. expand the overall pool. port's parking situation is much more unique to the port mta

operator fee we have a system that requires capital investment but what we think will happen is the larger companies will share responsibilities with the smaller companies mentor the small companies, and we want to reward that so the structure of the partnership, to make sure that it's real the risk, and regard is equal, based on investment that mentor ship and training is important any subcontractors subcontractors you bring on board, there is work that is going to be done that allows them to grow, so the partnership is growth within the pool and expanding opportunities to the port to many of the other other small separators that are currently out there, >> that is what we refer to as a

leading question. thank you very much. >> i was done [laughter] >> i want wanted to put a fine point on that again that is what is particularly unique how we set up the proposal, or the rfp here is the encourage broader participation those responding this is your big clue here the nature and the strength of your partnership is significant and important. thank you very much. next item. >> a vote? >> i'm sorry. all in favor of resolution 15-20, please signify nigh by saying aye >> (multiple voices): aye. >> opposed abtensions? it carries. >> 12 b. informational

presentation regarding the fiscal year 2015-16 monthly rental rate schedule month loo parking stall rates and special event filming and public art rates. >> good evening. president katz vice president adams, commissioners, i'm jeffrey bower the ports policing manager, i'm here i think for the 15th time this is information item too, to give you an update on the 2015-16 parking and zoning special event rates. it also asks for a fee waver for public art that can be installed up and down the waterfront the know the staff report mentions pier 14, the intent is up and down the waterfront.

i also have a representative from kaiser marson marine -- reid kalihara that is next to me, or behind me. what are the parameter rates, the parameter rates are delegated authority, it allows us to function, it allows the real estate division to function it's the nuts and bolts if of i would say the port, the and the delegated authority, i won't read every one, less than five year, less than a million dollars, at least, the minimum parameter rates. here's an example of parameter rates, you can see at the bottom. they represent about -- this year they represent 17% of the total real estate revenues.

so they represent a small portion of the revenues, but a large portion of the majority of the leases i would say the majority of the tenants which in my experience are typically small businesses we have a lot. overwhelming small businesses. in the past 12 months we have completed, 66 real estate transactions, 82% which are parameter rates, equal to 440,000, 582, in revenue, equal to 5.2 million in annual revenues so a lot of work, and nice money.

this which this is our overall portfolios, the categories are are office we're in a class a, building, the port does not manage class a, we have class b, the majority of our offices are class c, this goes down to the industrial property fishing open land submerged land as well. rate setting methodology typically, we spend two months on this staff report reading commercially available data interviewing tenants talking to brokers talking to tenants, there say lot of time and effort put into the report to get it right, there is this tension of maximizing revenue, but also the idea we want to maintain our

small businesses, so there's that tension also working with kaiser marred and associated we have had lively discussions on what the rates should be they're an active partner in sets of the rates, they're not someone that is going to write an approval letter, they're definitely a question methodology. here's the overall schedule. this is our -- (audio cut out) office rates would go up 27 to class c. (audio cutting out)

just briefly. demonstrates the difficulty of translating across the street or the commercially available data. we didn't have warehouse, we have a pier shed. despite, that we have a class a location with a class c property. we're able to have a low vacancy rate and command high rates for that for those properties. unpaved land, we have experienced a lot of action actually in the last year or so, unpaved land we're running out of them, paved land we're going up in that category, and the

same with saved land we're going aggressive in the paved land category. i will be returning asking for your approval at the june 23rd meeting, and i and reid are available for any questions you may have. >> i guess setting the rate for a certain amount -- >> public comment? seeing none, public comment is closed. >> i guess in setting the rates of increases are we thinking of balance, historical, futuristic, or mostly historical in terms of future increase? >> that is say good question we can base it on historic data on current data. the nice thing, the flexibility and the value add that the parameters give us is the

minimum -- we're within our rights to charge $3, 3:50, we can't blow 2.50, but we're with those parameters >> commissioner, this is the first time we have probably raising our class b rates at one time, one of the reasons we did that is because we see command increasing in the future particularly in the mission bay and central waterfront areas, where we have class b and c space in setting our rates, at least in proposing to set rates, reaches higher on those levels than current market statistics,

suggest in anticipation of where the market's going to go in the next year, and the market feedback, we have not seen that go to the depths of our port foal yea, near the southern waterfront near pier 80 so we were more conservative in those properties. >> commissioner brandon? any questions? >> no. think you mentioned there was a dip in parking >> right. actual leer the dip in parking port employees cancelling their parking stalls, they have gone to public transportation, and traffic we all know is terrible, that is that dip, and we transferred a number of parking stalls labor intensive in

fisherman's wharf to operating parking >> thank you. >> commissioner adams? thank you. >> you are welcome >> question. i guess the class b office space we do have -- i thought we did have some further stuff not all the way down, am i missing something? >> pier 26 annex -- (no audio)

south of market class b's are typically full service, ours at pier 26 are net. so if we're getting $3 and the tenant is paying up to a buck 50, so they're actually paying 450 or $5 a square foot, you are just not seeing that >> okay that was the piece i didn't -- okay thank you >> we like to rent our property net. perfect. thank you. then you will come back to us next month, >> i will come back to you >> thank you very much.

next >> i team 13, new business. >> in the executive directors report i neglected to mention, at the but niz belling to have it as the cruise ship terminal in the intervening, time we have leased the terminal out on the june 23rd date that will not be able var finite meeting, we will keep looking for a time to do that the june 23rd meeting will be here in the ferry building other than that do you have any new business you would like to add >> i believe based on the financial forecast, you will hit another revenue milestone in another month, that should be the topic >> all right. more than happy >> 100 >> thank you for calling that out. [laughter]

>> commissioners, anything else? seeing none >> i move to adjourn. all in favor? >> (multiple voices): aye. >> meeting is adjourned. thank you