>> >> >> madam secretary. >> here. so moved. >> next item. >> public comment on executive session. >> is there any public comment on executive session? being none, public comment is closed. >> executive session.

motion? >> so moved. >> second. >> all in favor say, "aye". >> aye. >> any opposed? we are now >> >> >> i move not to disclose anything in closed session. >> all in favor say, "aye". >> aye. >> any opposed? . madam secretary? >> pledge of allegiance. >> i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation, under god, indivisible, with liberty and justice for all. >> >> please be advised.

>> >> >> >> >> >> i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation, under god, indivisible, with liberty and justice for all. >> >> >> pledge

>> >> >> which is such an accomplishment because the cruise terminal delivers public trust and public benefits to us and to our community. i'm also very excited to announce that we have earned cruise critics award for the best destination in the u.s.. and in canada. this is a vote of cruisers sailing between august 1, 2015, and july 31, 2016. cruise critics is a leading cruise review and information site which host the largest community in the world. thousands of people visit cruise critics each month to plan

their trips. san francisco receiving this award is very important for our cruise facilities and i just want to give a big congratulations to metro who operates the cruise ship at pier 37 and 25 and to peter daly in the meritime commission. the next item is also celebratory. this involves the 2015 mother's award. the san francisco board of supervisors initiated the healthy mother award for san francisco employers that support the well being of new parents and their children. this ceremony was this morning and features advocate for health and equity and government officials with board of supervisors

wiener and katie tang. the program recognizes health and gender equity for lactation and family work balance. supervisor wiener has provided 6 weeks of paid parental leave to all employees, and private employees in san francisco. they have passed lactation rooms. this morning winning the silver award. the port received this award because we placed two lactation rooms at the port. one is located at pier one and one at pier 50. the board also developed a breast-feeding lactation policy and notice for all employees. in

our category was the by right family of businesses. nixon peabody, llp, the department of children youth and their families, the public health department and the women foundation of california. i want to thank the human resources director lavaina who sphere headed this policy. thank you very much, lavaina, we very proud to be a family-friendly workplace. [ applause ] >> the next item is the cancellation of the october 25th and november 8th port commission meetings. this is to give notice that october 25th and november 8th port

meeting is canceled. a special meeting will be held november 15th. finally i would like to end with a video presentation. commissioner brandon and commissioner katz welcome pasha to pier 80. i would like to give you more insight that this meritime agreement offers. you will see that many many members of the community came out to celebrate as well as dignitiaries who joined. let's look at what happened august 22nd.

>> [video] >> >> this is a great opportunity for the port of san francisco. for years, ships have not come into pier 80 and with pasha coming in and bringing ships with cars, they are going to create hundreds of jobs and for everyone around. the port is so happy that this is happening. >> we at city college are we excited because we see it as an opportunity for our students to train and work with pasha. >>mayor edwin m. lee: whereas a comment made to residents of the bayview can be kept with this contract hopefully for many years. these are jobs for the present and future and working class jobs that we always said we were going to bring back to san francisco in manufacturing and all the other ways that we are

doing it. it's not just tech jobs and hotel jobs and hospital jobs. these are good paying local jobs from our unions on ships like this coming from across the panama canal bringing goods. this site will be import and export. >> it's a great opportunities. they are going to offer 50% for district 10. it gives me an opportunity to have a career. i'm honored to be here. >> this has been an historic dock for our men and women to work at. it's been a long time since we've had cargo here and we are very excited about it. >> we just had a tremendous port partnership with san francisco started almost 2 years ago. >> hi, i'm current at city build right now. i live in district 10 and

it's an honor to be here as an african american female and part of this community. this right here is big for our community. it's going to offer us jobs. >> i'm so excited because it really symbolizes everything we try to do right here in san francisco. it's going to create opportunities for local people, will create striving meritime opportunities on the water here and allow a patron to come here to the area importing and exporting automobiles. most importantly it's going to bring us altogether. the community, the economic development. it's a great collaboration. it what we do best in san francisco and in today's event and our

collaboration with pasha signifies that. >>mayor edwin m. lee: over 50% is going to be targeted. that is a humongous promise. >> i'm trying to get me a career going in construction phase. i think it's a great opportunity for employment job opportunities for the low income people and family members. i'm very excited to be a part of it. >> when you were a long shore man in san francisco, you earned a lot of money to take care of your family. the longshoreman union was a grateful minority. everyone of the black churches in the city had it's share of it's members from the iowu and then the

port lost it and that was awful for us and the population started going down. maybe now with the commitment of doing 50% at least and i want them to do more for us, we'll start the population going in a different direction. >> at pasha we are also committed to good paying jobs which is why we are so pleased to bring new employment and training opportunity to the area. [ applause ] >> well i think the city has an opportunity to have a huge corporation that has global significance. it's a win win for everybody. as far as the community, economic developments brings stability to a community. it means people are going to stay, they are going to shop, they are going to raise their children. this is a good thing for

everyone involved. without families, without diversity, san francisco is not going to be what it always has been that is a leader to bring jobs to people. that's what economic development is, that is what a corporation, a group like pasha can bring. >> these plans belong to the community for jobs, for citizenship. as commissioners we have supported our staff and pasha automotive to make this a cargo laid out space and warehouse, a shipping hub for automobile of import and exports. >> this is a very very significant day for labor, it's a very significant day for the port and a very significant day for the city to have inaugurated our working water front.

>> the port of san francisco has been a great leader in creating jobs, in creating opportunities for our local business entrepreneur. >> pasha coming here is going to have a huge impact on the community committed to hiring within the community for jobs to working with people that live right nearby and that's the ideal situation where we create economic opportunities for everyone in san francisco and don't leave people behind when we bring businesses to them. >> this is going to bring jobs to san francisco residents. because of that, to be a part of city build you have to be a san francisco resident which work in our favor and the hiring of bayview district 10.

[ applause ] >> thank you. that concludes my directors report. [ applause ] >> is there any public comment on the executive director's report? being none. public comment is closed. madam secretary, next item. >> item 9b. port director's report. >> colleagues, several months ago, i want to thank commissioner leslie katz, she brought commissioners from india. anyway, i wanted to commend commissioner katz for doing this. it was a great turnout. leslie, thank you for your vision and interaction with that and may we continue

doing that. before we have a moment of silence for the late legendary rose pack, to my fellow commissioners for some comment on the late rose pack. commissioner wu? >> thank you, it is with a sad heart that we are going to talk about and obviously we are going to remember her in memoriam. my husband james and i have known her for 35 years. i did attend her funeral on saturday. she was one-of-a-kind, a trailblazer, a community leader for the chinese community and for all of san francisco. i just want to node on the community side, the things she did accomplish very briefly. she did preserve chinatown and still a destination authentic and how we present ourselves as this gateway to the pacific. she did raise $30 million for

the chinese hospital, one of her labor of love and for my husband also. she instilled the way for chinese americans to get involved in this process here. not all were successful, but many many were and i know that you all know that in terms of the history of the port. on a personal level, i want to say that i knew rose very well personally. my children would call her as she was affectionately known to my children. she would talk to the

children and give them advice and where they were going to college. she was human enough to cared. so both on the community level and very personal level. but rose was also a very tough person to deal with. as you know she was controversial and she was tough love. winning was everything to her and she didn't like to lose, when that happens, she was very unmerciful. she was known for the parade and in the newspaper. i want to say her passing is tremendous for all of us, she was bigger than life and she will be missed accordingly. i'm so proud that we are going to remember her today and for my family, we are going to remember her. aunty rose, it's very personal and professional, the journey she

had with my daughter in las vegas. there is so much we are going to remember her by. >> commissioner katz? >> she's known as a community activist in our community and also trained a new generation of active and political engaged young people and simultaneously she schooled and held the old generation accountable. i was always with a little trepidation if she wasn't happy or was happy. also struck me was her unwavering commitment to community. she will be so sorely missed. there are few people that

have the single focus looking out for the good of the people they care about. i have a couple of funny stories. of course i was one of the ones as one of the comments through the chinese new year parade. my part was at the end where she made a correction and okay, now come sit next to me. that was rose. she can also give you a big hug. coming to port, coming to a meeting with director moyer and i was going to be standing at the meeting and we had found a solution to the problem and rose didn't know yet. i was going to tell her at the meeting but i saw her downstairs and rose launched into the meeting with fears advocacy and we told her we came up with a solution.

and she had to get it out. she needed to make sure her point was made. rose has made so many points to san francisco and she will be remembered with great fondness. i'm glad we are adjourning in her honor and her memory with a great sense of thanks from all in san francisco. she made this a better place. >> i met her a few times but that was enough as i read about this greater than the life and this nature in san francisco. i guess for me i have always looked around at women leaders because they are not as common as you might think even now, although san francisco has had it's

proportionate share across the country. but it's interesting to me to see a woman to be so central in a political life in the community because it's such a competitive world of influences and ideas. i think what's absolutely clear is that she had the community always at heart. it was always about making the community better. you can see it. you could see it then and you could see it now in future generations when they walk into the beautiful chinatown hospital, when they walk around chinatown and see how much was preserved. her legacy will go on forever. her impact will be felt for generations to come. >> vice-president brandon? >> rose pack will definitely be missed and san francisco will never

be the same without her. may she rest in peace. >> rose pack, broker, icon, activist, one of the last giants. one of the four runners, 68 to me is so young. but it's not how long you live, but the mark you leave and what you did with the time you got here. clearly she paved the way and her story will go on for eternity. rose pack, with the time she had on this earn, clearly made a difference. at this time may we have a moment of silence. ( moment of silence ) >> god bless you, rose pack.

may you rest in peace. >> next item. >> item 10a transit authority strategic plan. >> good afternoon commissioners. from planning and development. i'm going to present the draft strategic plan joined by reynolds and mike geraghty. after they present the strategic plan, i will come back and give a quick update on the things we have going on with the water taxi. with that, kevin? >> thank you very much, dave and the commission for having us this

afternoon. i will just build a little bit on the scene that we heard about the introduction in the meeting about collaboration and mission. we are also a partner with you and it's a very fruitful partnership. we are the fastest growing in the bay area. we grew our ridership 73% over the year and it was 33% last year. it would not occur if it weren't for the staff here and the facilities as well as all the planning and development that we are doing with your staff in particular dave and his staff. we really appreciate that and you have been a part of that success. part of that success is from our standpoint is a double edge sword. we are experiencing the growing pains of having that much ridership with a short amount of time, we are leaving people behind and we are having trouble meeting that demand.

that's why it's critical for us to introduce the strategic plan at this time which is a vision for where we want to be 20 years from now. it's represented by the graphic in front of you which is where we are today and where we are going which is quinn tupling what we do. obviously we have stakeholders like yourself here to creating this vision which we expect our board to adopt october 6th. our mission which was created in part of this process, i'm not going to recite it, but the highlights that we are providing a service for the entire bay area and it be comprehensive in that way. our vision again builds on that. we want to build a reliable state of the art and attraction. if you look at our riders and one time riders recreation, the attractiveness

of the experience is what sets us apart from other mobile transit. plus another part of our mission is to provide emergency response capability that will be up and running after any natural event. our strategic plan, i'm not going into this. but we have seven focus areas, our expansion and funding and quality of work and leadership. i'm going to talk about our expansion program which has been an interest of yours. we have today four services operating in vallejo, alameda and san francisco. we anticipate opening in 2018 and island and lagoon, berkeley road and hercules and mission bay which i know you are very interested in. off on the horizon are projects that we consider

emerging areas in the south bay. no defined projects yet but it's on going with them. operating budget today of $33 million. we think we need to have another $49 million in order to operate this extensive of a ferry system where we start to see people using the ferry as their first choice as transit option. we have 80 projects in some form of delivery all the way from construction. we have three projects under construction right now to design and in the planning stages such as mission bay. you will hear a lot about the downtown ferry terminal. i want to say none of this is possible without the ferry's terminal expansion. this is the future expansion of our system together with two other maintenance facilities under

construction today. without this expansion, nothing is possible in terms of growing our service and that's why it's such an important project for us and the entire region as well. mission bay, we talked about before. we'll have detailed discussions in the future. it's off to a great start in terms of selecting consultant, design consultant. you are the lead, we are your partner, we'll work together towards implementation of this important project in an under served part of san francisco. on the top of the line are expansion projects in our anticipated day openings. today we carry just over two million people a year. we expect that to go to six in the next 5 years and up to 12 by 2026. within 10 years we plan to

quinn tuple our ridership. we plan to open a new terminal every other year for the next 20 years. that's about as fast as you can go given the impact we have in terms of regulation and permitting requirements which is strict in the bay area and it should be. this work has been going on for a while and really set up to deliver this expansion program. with that, i will conclude. >> thank you, kevin. the last thing i would like to touch on since we have not been to the commission meeting in a while. i would live to give an update on the port taxi water service. although it's not directly related, we thought we would provide a little update. you see a map installed on future signage to help improve the identity and understanding of

the water taxi system happening within san francisco. we have the pier 15 facility that's open and operating and being utilized by our water taxi providers. i mentioned the new signage by the end of the year. we'll continue to look at studying the mission bay area for new water taxi landing whether that's feasible or not to use the boat launch directly close by and continue to coordinate with our water taxi providers. just yesterday we med with tide line to get a better understanding of what services they have to off. with that, kevin and myself are available for any questions. >> thank you, kevin. is there any public comment on 10a? i have no cards. being once, being twice.

>> is there any additional public comment? seeing none, public comment is closed. i know ambassador couldn't wait. go ahead. >> i have seen the signs down there and looked around to see how exactly you go about getting a water taxi. my only question on this signage here. this is what it's going to look like, the last page of the presentation? >> that's the map that will go on the signage. the actual signage will be a little bit different. right now we have the banners, we are in stalling new signpost that the carry this information on where the water taxis go, there is a place for the hop on and hop off service and the next time one will be coming and the other one about how to contact tide line which is the on call type of service. >> let's say you are down at

fisherman. wharf and want to go to the island and you make the call, how long will it take for a taxi to arrive and take you. and when you want to get back, will people feel comfortable that there will be a water taxi available to bring someone back a few hours later. >> peter daly might be better to answer that question. >> i'm just trying to get a sense of how available it's going to be. so that's why i gave the example. i got the hop on, hop off. but i'm curious around these dots in berkeley and san raphael. i'm curious about how it would work? >> so am i. the hop on hop off. we see

the water taxis there. they look like a taxi cab and they are on the side. the response is an innovative new mode of transportation. the tide line director is here. if you look at their website, and we had discussions with david yesterday and byron and i to look at their planning. they have a very interactive website where you can look online to where the next boat and where it is. they have two passenger boats and two smaller 22 passenger boats. i think as they have more boats available on the water will become more of a guaranteed service. right now it's much like uber. if you want to get them, you

can get the app on your phone and you can punch in and you will know when you will be picked up. this is the director of the program. >> this particular conversation is not on the agenda. >> it's on the map. >> i think it's very exciting. >> perhaps you can reopen public comment. >> it's all right. i might have jumped the gun a little bit. i can see it's developing and it's going to take some time before we see water taxis buzzing all over the bay for the first part of the service, but i think it's really great. i spend a lot of time in greece. my family is from there and people get around like this. not from their own boats but

water taxis. it's such an incredible opportunity to liven up the bay. >> why don't we get more information and report back for the answers for you. any other questions? okay. commissioner? >> okay, i think we have talked a lot about taxis. i'm going to talk about weeda. when you say your total capital is $84 million. is that what you call now your funded and partially funded unfunded? what does that cover? >> that's the unfunded portion. that's the unfunded portion. maybe you can explain your sources of funding. being a great timeline, what other sources of funding and what are the concerns that you have that you

will not get the funding to do this? >> sure, in terms of capital funding of comes from a variety of grant sources, regional, state and federal and we rely, and our operating funding is from two sources. fares and we have a fare box recovery and tolls which was a regional measure 2 passed in 2004. in terms of where we are going in the future and where we see is an optimistic place for funding is a regional measure 3, it's a natural nexus to use bridge toll revenues to fund a transit service that specializes in crossing the bay. however, we will pursue any and all sources of funding. there are not a lot of ferry discretionary fundings just to ferries, and if it's,

it's very small and we would never be able to fund this level of expansion. >> does the revenue also cover your operating cost or is there a deficit? >> there is a deficit. the ferry covers 60% of our operating expenses. we cover the rest with the bridge toll revenue. >> that helps to operate with the capital cost? >> with a little bit of capital. yes, we have vessel purchases here and there. >> okay, and i guess in terms of this is great to alleviate a lot of the congestion we see particularly going to the south bay and you are focused on the east bay which is great. do you see in the strategy plan about where you are going in the bay. we know there is a lot of

congestion in that area? >> sure, we have a project developing in redwood city and that's the low hanging fruit in the south bay. there is a deep water port there. it's an ideal location to develop a ferry terminal. south of the city, there is a lot of unknowns and significant environmental hurdles and we have to address those in terms of technology. that's a little far reaching in temperatures of timetable. >> obviously marin is under a different service. what are the opportunities to collaborate and work together so we can see this whole planning to be very comprehensive in the entire bay area since you call yourself a regional agency and do you have conversations with them in terms of how to approach this in

collaboration working forward? >> yes, we have a regular dialogue with them. and in terms of emergency response planning as an example. we have arrangements with them in terms of how we operate. their vessels are compatible with our facilities. our compatible with theirs. for example in the bart strike, we used some of their vessels. there is a great amount of interest from the public and from our two agencies about seeing services not just direct to san francisco but to places like oakland. frankly we are in both situations and use everything we can in san francisco. the threshold is how to work in a comprehensive way and not just through san francisco. those are the things we have on the

horizon. >> thank you. >> commissioner katz? >> i'm very excited. as always the devil is in the funding you find. but like commissioner having traveled to areas where ferry services is used more widely with taxis on land. the more you have, the more people will be able to use them and rely on them. i'm looking forward to expand the ferry and taxi services on the water. thank you. >> i agree. >> i do agree. this is the exciting for both, the water taxi and what it's doing. most of my questions were answered when commissioner asked her questions. >> this is very well thought out. i agree how do we pay for it, but at least we are getting a front on it and i like that.

it's great that we are going to be dealing with fares and water taxis. when you said the bridge toll, is that going to be one of the highest forms of revenue for us? is that going to be the money we get from federal? are we getting more from bridge tolls? >> it will fund a lot of our operations. that's what we would look to bridge toll and in transit agencies how you fund your day-to-day operations. in terms of capital it will be a mix. there will be bridge tolls dedicated to funds. also private funding. private partners, we are seeing certainly in treasure island which is paying for an entire vessel and in alameda, they have committed $10 million we

have seen more of that as well as a funding source particularly for capital. >> thank you. you have a lot of great stakeholders involved. thank you. >> any other questions? >> this is an area that most of us are very passionate about and we are happy to see this is getting more and more traction. >> i would like to thank you for your continued support with your staff. it's been very fruitful and continue to see more with your help. >> thank you, next item. >> item 10b, informational update on the expansion of the downtown ferry terminal. >> good afternoon, president adams and members of the commission. we are going to walk you through the

downtown ferry terminal expansion project. can we have the images up here? there we go. thank you. we are going to describe a little bit of what the downtown ferry terminal is now and then talk about and show you a little bit about what the expansion project entails and then we'll talk about responsibilities and schedule regarding that project of what's going on. completed in about 2002 was phase one of the downtown ferry terminal. the downtown as you heard about that level of activity in the bay, the ferry terminal downtown is where most all boats come to. it is the primary destination. there is 130 boats a day carrying 10,000 passengers and you heard the number of the expected expansion of that activity is going to be. gates b and e were added in about 2002 and opened up. those are managed by the port responsible for maintenance

and capital repairs. this image shows a master plan that the port and weta years ago. this a,b and g. what we are talking about is e,f, g. this shows a full build-out. it is not how it's reconfigured to be part of this. we do expect to see it happening. the project area is south of the ferry pier. you can see it dances around the agriculture building and out to pier 14. the plan, this is a plan view of it. this plan has been going on for about 8 years to do all the entitlements and the regulatory and the sign

and the input the community has been involved. gate e exist now. it would be shifted further east now into the water. there would be new berth f and g for new boats and a promenade that is extended and a lagoon area between the ferry building and the ag building. and the port in 2015 entered into a memorandum of understanding with weta about how this would operate whenever the wta would be responsible for ownership operation maintenance of the water side and the port would take on the land side. we are going into more detail on that in just a minute, here. when you look at the facilities where adjacent was the ag building. that would

be removed. the agriculture building would stay and the gate e would also stay. directly associated with the project to accommodate f and g about 2,000 yards. a very multifaceted piece of work. if you are off the ferry building, this is the view you are going to get. the project would be constructed in phases to allow continuation of the oakland alameda service. i won't go into the details of the phasing. that's very complicated. the staff at wta have resolved these issues and convinced me of such and i think they are right. if you are at the ground level. this is the view of the

promenade. this is the sea level rise taking it to about 2070 and includes provisions to extend out to about 2100 with minor adjustments to it. to get to the boarding level we are going to be 38 inches above the conditions that are out there. the plaza next to the embarcadero is also going to be at this level. we are conforming with all the agencies with the port's goals to see we are in great condition. to the side is the storm water retention area meeting the storm water design standards. from embarcadero promenade this is for ferry passengers and emergency services, emergency gathering because it is part of the role of the facility. on a daily basis it's going to be a prime spot to look out on the

farmers market or embarcadero promenade. the finishing is the importance of the area with the grand plaza and the steps on the top and proposed quality construction throughout. there is also a high level of passenger amenity. it will have panels on top of it and helps power equipment on the ferry and information about the ferry service. and lighting and other such amenities associated with it. the project designed to dance around the agriculture building and give the port the ability to renovate this structure in the future. it stays about 15 feet away and leaves that portion of the deck intact and constructs the fence there and they

have a building there cordoned off. if the building comes back in the if to renovate that structure it will immediate the plaza on the other side of it. there will be an agriculture building and another ramp provided to gate g and the promenade in the back. this can come back to g and it's very much done in consideration how that agriculture building could be renovated in the future giving the port some options there. mr. hurley is going to come back and discuss a few more items there. >> jamie hurley with planning and development staff. i have a few slides to finish up the presentation. starting with funding and you heard some of that in the previous presentation. this project is entirely funded by the project sponsor

weta. the total project cost is around $65 million. that's true a combination of sources. again as you heard in the previous presentation. i wanted to highlight there is a piece that does involve a port contribution, a piece of project that i wanted to highlight. that relates to gate e. as dan mentioned it's the existing gate here in the south basin. it is a port owned facility and port currently has maintenance responsibility including capital repair responsibility for that facility and the total cost we think to do what is really a necessary rehabilitation of that facility is estimated 1.5 million. the transaction documents, i'm going to speak a little bit more about in the moment that we will be

bringing to you next month contemplate and recommend a port contribution of 20% towards the rehabilitation of gate e. weta has the ability to obtain grant funding, federal grant money to cover 80% of that cost. and so, they are quite confident in that source. so pending their ability to deliver on that source and pending the approval of both the weta port and port commission of the transaction documents is how we will move forward and transfer ownership to weta in gate e and they will from that point have maintenance responsibility and include deferred maintenance. in terms of ownership and maintenance how we and this again is something that is spelled out in the transaction documents that we will be bringing to you next month.

they are split generally between what we are calling water side and land side or the land side is really per deck as this project is entirely east of the seawall. so the water side facilities include the floats, the gangway, the canopies, the cover, the gang ways, the portals to the terminal, the shade structure, that dan mentioned and showed which is actually sort of on the land side, but it's considered a ferry specific improvement. it's to provide shade and weather protection for ferry passengers, and then utilities and then the port will be responsible for the plaza, the new plaza, the walkways around the substructure. there is a planter, part of

the storm water management plan and some furnishing like the benches that dan showed. by the way, we have looked at, as i know there is a question about what is the cost associated with taking care of these new improvements? pretty minimal we believe and we are working with tom carter an his staff on understanding what those cost are. we think it's about half fte or 20 hours of labor to do some washing and the planting and garbage, etc. i want to go over the schedule including kind of a look back. as dan mentioned we've been at this project for a number of years. what's exciting now is that we are getting to the implementation phase. but, it began really back in 2010. we spend a couple years scoping the project, hiring the

design team, hiring the environmental review consultants, getting public input in developing concept designs. then this project had a full eir, eis because it had to satisfy the national quality act. in the last couple years we've been really focusing on the design element and getting more public input and working with their design review panel, our port design review panel and a lot of engineering and engineering review as well with the board and port staff. so, we are approaching 2017 which is when we expect to actually get on the ground on this project and start

construction. because of the work windows and because for the in water work being from july through november, we think it will take 3 years to finish off, or two 1/2 years once we start construction. so by the end of 2020. this is my last slide. it gives a little closer look at what's going to be happening in the next. this is a year look ahead, it's really 9 months before we get under construction have a ground breaking what you see there in june 2017. i'm not going through all of these milestones that will be happening. just to give you a sense there will be a lot of activity on this project. will but to highlight a couple things, we will as a mentioned be bringing transaction documents. that's the least development and disposition agreement and a construction lease. those will have to go to

weta board next month. following that, probably in early 2017, if not the very end of this year if we can make it happen, we'll be bringing a long term lease that we'll govern after construction, the weta's operational facility. so that, january and then in the spring final design and permitting and again ground breaking in june. so that is my last slide. i do before we take questions want to again acknowledge the weta staff and reynolds and senior planner mike gourtey. it's been a tremendous partnership that we have developed and we've grown with each other an gotten to know each

other's agency and that partnership is going to continue in the future. with that, they are here to answer any questions and dan and i, thank you. >> thank you. is there any public comment on 10b on the expansion of downtown terminal. i don't have any cards, if anyone would like to speak, please at the mic. being none, public comment is closed. commissioner brandon? >> thank you for this wonderful report. this too is very exciting. just a couple questions regarding as far as the funding and the port piece. and so, we are only responsible for maintenance after everything is built? >> correct. the piece about gate e that i was highlighting, we have the responsibility for gate e as well as gate b in the north basin. we will be transferring our

current obligation to gate e to weta pending your approval and weta approval. and with our contribution of 20% of the cost that is an existing cost today of an existing port obligation. >> okay, as part of sea level rise. does that allow the total for the plaza or just that section? >> building the sea level rise would be for the new improvement but also thinking about how the plaza and back could be accommodated for that. we hope to bring a plan forward to look at improvements for the ferry plaza in the future because the ferry building is unlikely we are going to raise the ferry building 30 inches. working with our engineers and the seawall to see how to improve this in the future without the piles coming

up. the new facility will be built to that and also built to rise another foot beyond that to take the project to 2100 if that condition continues to evolve. >> thank you. >> commissioner katz? >> thank you very much for a great presentation as well. >> a couple questions. will expanding the will we have to do additional dredging. >> about 20,000 yards is the estimate between e berthing area currently and

pier 14. so it still accommodates where the shallow water exist. >> so the new dredging would be that 20,000 figure in addition to what we have been doing previously? >> correct. >> and that's the cost we bear? >> no, the $65 million the fundraising they have done and the leading of the design in the environmental effort. that's included in that. our cost is limited to participation and remodel and renovation of gate e and the future landscape on the land side. >> do we have an idea of project of ridership? >> the projection as much as

quinn tupling -- activity in the bay, i don't know about the downtown use in the ferry terminal, but very substantial increases. i don't know about the expected capacity. between f and g expands the service by having four more boats able to come in and offering flexibility as to where things can move around to. following up on commissioner brandon's question about sea level rise. is there anything that we might want to look at even extending say from a to e, what might be added to the process something like this but something on going to protect the ferry building

since we aren't able to? >> this project is a defined footprint from the seawall. it's built to essential structure standards which means if there is a major earthquake, it's going to be what's remained standing in the area. the embarcadero promenade may shift a little bit. and this project is designed to accommodate the movement of the landslide facilities and still be serviceable the day after an earthquake. it anticipates a major natural event. it also makes room to the extent that we find possible the renovations as a seawall and some of the options that the team is looking at to look at the seawall and provide the larger protection which i think you are leading towards. >> i want to follow up with

our deputy city attorney and get into a new topic. i know it's not part of this project, but thinking ahead if there is something we can plan for that would address some of the potential problems we might incur in front of the ferry building in that between space between a to e, something that might fit in that will be in keeping with the improvements that we are making to the plaza and other things that might help us protect against sea level rise. i'm thinking forward before what else we might want to do. maybe that's a topic we can bring back under another item. since we are going to this effort to think about ways to capitalize the materials and equipment and everything else being there. >> absolutely, as a reminder we are bringing the seawall coverage back to the commission more than just twice a year. we'll include this

conversation in that agendaized item. >> thank you. >> commissioner? whoo-hoo? thank you. we are talking about primarily gate e. if we could understand how the traffic with a passenger volume would be impacted as we go along with each one of these phase developments because they do take time. if you can work with weta to come back to give us a sense so we know how this is changing and we know what the capacity is because the timeline is

phases out. the second question i had, pier 2, where are we right now? >> pier 2, there is a couple of things going on. we have a bcd requirement to provide public access on the site of the former sinbad's restaurant. that follows improvement benches and other things and sections of the pier that are considered unsafe. the section for those improvements are within the next 30 days. >> we moving of the pier, i didn't see that in the timeline. where was that because we are removing it, correct? >> correct. we are removing that in the pier. the demolition is a first phase. it's about the first thing that happens out there.

the first components -- >> okay, i guess when the last slide what i did not see was exactly where pier two what timeline when that is going to get demolished. >> michael doherty will tell you from the table. >> good afternoon, this is all coming from the view. the demolition of pier 2 as well as the drudging and a substantial amount will be part of the initial construction phase. that work will be completed between june 1, 2017, to july 2017. >> i guess in the demolition cost are we absorbing that at the port or is that part of the project too? >> demolition cost is part of the project.

the demolition, dredging, all construction are part of the cost which weta has organized through state and federal funding. this has no responsibilities for those other than the 20% contribution we expect -- or are anticipating. >> that reference in the slide is that the total cost or the 20%? >> that's the total cost. >> our 20% is the amount? >> correct. >> that answers my question. commissioner? >> kounalakis?

>> thank you. i'm wondering what projects and elements are you most concerned about whether the mitigation are going to be imposed. >> i'm happy to report the project is well along all of those processes that you just described. the state ceqa and eis are both complete. there was a concept completed in 2011 and that concept design is where the gates and plaza would be and the boats. then it went through architectural review through the design committee and review board and public review with community stakeholders and other opportunities within that. that is complete. the environmental documents

were certified. the project is now obtaining it's various regulatory permits and it's taking those off at a rather ambitious pace, i might say, led by michael doherty here. the ones, the bcdc permit is a major one that's done. we expect to go to the commission possibly in october. this fall is probably a more suitable thing. the design and construction of drawings are very substantially along. i believe they are past 60% and rc for construction manager at risk is the term. the design decisions on the project have been made. it's been presented to the commission in the past environmental documents complete. some of the regulatory approvals and entitlements which is a long

list are complete, but there is a few more to go. if you have specific questions, i will call up michael and have him address those. >> that's fine, thank you. >> anything else? >> no. that's all. thank you, guys for the presentation. i think my fellow commissioners hit it. i think the environmental review takes time. i'm looking at this start in 2010 and look at it finish in 2019. we are looking at about 9 years. thank you very much. i look forward for you guys getting back to us in the next couple months as we navigate through the process. next item. >> item 10c informational presentation on the port's legislation program. good afternoon

commissioners, daley to present to the ports legislative program. as an overview, we were primarily or along with the mayor's office of government and legislative affairs. i'm sorry, one other note, if you are looking at the hand printed copy, all bullets on one side, on the screen it's going to come up at once. as an agency of the city, all of our proposed state and federal legislation goes through the city's committee on state and federal legislation. once we receive approval there, we can move forward with whatever initiatives we are working with and also participate with the mayor's contract lobbyist for state and federal advocacy. in

addition, industry organizations center around the port and water front communities. we are -- able to advocate through them. and occasionally staff get to advocate in washington d.c.. the background slide is the direct footprint from the base agency. the remaining is the what the city has had for decades. they have been very helpful in one of our more recent efforts which we'll get to in a minute. in terms of the industry groups, the port industry groups we work with, primarily it's capa, california association of port authorities. director moyer had last served as

president of that organization before she departed. we have in past years made the advocacy trip to washington d.c. with the san francisco chamber of commerce. they are an advocate of ours and we participate with them here and there. the bay area planning coalition sporadic but engagement from time to time. the slide here is the project area board development area g 1. so how the legislative program supports the port's general work program. it really comes in three groups, the administrative part, the mechanics to get staff to the clerk of the board and the committee hearing scheduled. those includes the term sheets, grant a and e's and project

specific advocate legislation. sometimes in the form of a member of the board implementing an ordinance where the policies is going to affect multiple agencies and we need to weigh in and seek amendments to that to ensure the ports are maintained. at the more strategic level, broader initiatives that impact a number of projects that are on going now are those that may come in the future including financing tools like infrastructure financing authority in the state as well as trust laws that are inner lease are and the direct appropriation with bringing resources to legislation. speaking which this is the removal of dry dock no. 1 which would never happen but for the direct $3 million appropriation to the department of defense. so just a few of the sort of bigger things that the legislative

program have pulled off 2008 geo bonds. first time the port has participated in geo bonds. in structure finance districts at the state and local level. we needed additional authority from the state and accompanying ifp's. i just mentioned this. changes around trust law and with the state land commission. which enabled us to do different kinds of leasing. americas goes back to 2011. the port stand-alone legislation that we are aware of. i think it's the official less production of congress in the republic. the water resources development act of 2007 is a little bit dated now. but it's a unique asset that we have in the whole country. no one else has this authority to allow to go

direct to construction without intervening authority and appropriations. this gives us the ability to seek funding for a number of specific projects and we are still doing that. we have one in the hopper now, in fact. those direct appropriations for wharf in dry dock no. 1. this is commission rock development which has to do with very important legislation. i will skip to that. ab 2797. i want to take a moment to say this was approved by the governor on friday. together with our partners at the giants. months and months of discussion with the state land commission to make this happen. other things we have going on in the

central basin is on going and hopefully brought to resolution at the end of the year. that water resource development act authority that i mentioned this pier 70 project, 7 and 8 for removal, we were only able to do that because of this prior authority we got. that is also in process with the corp of engineers and will provide more credits that we have applications for. national insurance plan and last one mentioned there. what we are up to in the coming year.. background slide here is a rendering of what's going to happen at sea lot 52 that will need to go before the board. we'll be moving on an ordinance to grant storm water authorities and anticipate a number of leases and other approval documents.

alcatraz on the way and will also need to go to the board of supervisors. continue on what we are up to. the seawall is going to be part of our program going forward, and this is going to require an effort, a big effort at the local state and federal level. we are sort of looking at field at the local level to capture through sacramento and a new ward authority and there are a couple going on at the federal level right now for the seawall. so i'm going to end here and conclude my presentation. i would just like to no -- note that the legislative program and the team and brad and myself, we are always open to long-term and looking forward and happy to engage with commissioners

about the big ideas we want to pursue on the legislative side things going forward. in part just selfishly to take advantage of the skill set. we are looking forward to your engagement and any questions that you have for us. >> thanks, daley and brent. i have one speaker card. anybody else want to speak after veronica, lineup, please. >> mr. president, commissioners, veronica, i promise to go easy. thank you, i'm very appreciative on behalf of our members of the support that the commission provided to the weta staff here. as you can see they have been doing a wonderful job and the funding for these projects was placed 10 years ago. the $20 million of money

going to the downtown ferry terminal is coming from regional measure 2 money and that was put the in legislation way back in 2004. so what i wanted to do is just as an addendum to the legislative program here is to encourage the commission and staff to include in why advocacy for funding ferry initiatives. funding for at the regional level for the reauthorization, for regional measure 3 and state legislation being drafted right now so you can have the funding in place to at lasts meet part of that $482 million hole that weta has. i think $42 million of it alone is for the mission of the port and for

san francisco investing. with $7.5 million. that's on track and the federal level of the next authorization bill making fta money available. there is always a need to expand that program. during my tenure we did expand it from $30 million to $60 million. that was an initiative that i led and weta federal lobbyist pushing to increase it. there are other needs at the regional level which needed support from mtc because what weta didn't tell you if they didn't use their operating funds, they lose it. this year alone, they didn't use $5 million of operating funds because they didn't have the capacity for boats to use them. so these are advocacy points. there have been times at the city level where ferry projects have taken a backseat to muni projects. this is historical from way back to

when i was there of legislative affairs director. to have the support of the commission on this at the local level when we need a sign off at the city level to apply for grants or to get a letter from leader pelosi is really important for the agency to have the commission's support. i would encourage you to consider to have ferry terminal funding advocacy in your legislative initiative. i know it's front for our union and thank you very much. >> is there any additional public comment? seeing none, public comment is closed. >> commissioner kounalakis? >> thank you very much for the very informative presentation. i think this may have a risen because we found out

about a piece of legislation that was going to affect the port significantly and was moving forward without our knowledge. i think it's super helpful not to just have an update, but also have a reminder that we don't need to have a whole dedicated item to hear if any of these lobbyist are moving forward either at the direction of one of our partners or the direction of the city on initiative that affects us. that it really should, you know, be sort of a light should go off that if there is a significant piece of legislation concerning the port that we should get an update, a brief update as you go along. so that's the only comment i would have. >> commissioner brandon? >> thank you very much for this report. so, do we have any lobbyist

of our own? >> thanks, commissioner brandon. we do not. there are currently we are an enterprise agency that does not retain our own lobbyist. >> so, how do we fit into the prioritization of other city, states, federal efforts if we don't have our own voice? >> traditionally we have not ourselves sought transportation funding because we go through city hall as our transportation agency that are getting that priority. we generally have the army corp of engineers to ourselves because of the jurisdiction, but apart from that, these are discussions that take place at city hall. >> and i guess it also goes

into how do we as the port of san francisco decide what legislation we are going after? >> director of special projects. we have historically come to the port on initiatives and we can produce for you a list of the staff reports to the commission that we have in the past on legislative efforts. commissioner kounalakis, your comment about ab 2797, we hear it and we'll be here long before the initiatives about that. our apology for that miss step. commissioner brandon, i want to address your point about having a separate lobbyist for the port. it's a policy conversation that we can engage with the commission. as daly was mentioning there is a city, state

and federal level committee. the mayor directing policy for this committee and the board of representatives on this committee. typically cities aren't allowed without the blessing of that committee. the mayor owns the city's legislative program and his to pursue in sacramento and washington d.c.. we are trying to play with the city's team and it's worked well for us. we've gotten into some controversies at the state level even with bill 2797. we needed help from the mayor's office to rescue the bill when it was caught at the senate suspense file at the end of this session. the mayor himself came to our rescue in terms of speaking to the senate pro tem to get the bill out of suspense and

out of the senate. just a few thoughts. >> so as to how the port of san francisco decide what legislation? >> again, we brought major initiatives to the port commission for you to review. >> so do legislation initiatives have to be approved by a commission or not? >> i think we've come to you on an informational basis to sort of seek your nod that should we move forward on the legislation, the big moves that we've made in sacramento. so, we want to hear how you want to manage this conversation with the mayor's office. >> i want to figure out how it gets to the mayor's office, how it gets to the committee and who you decides what legislation we are going to pursue.

>> i think if i can step in, i think it's a variety of partners. as brad was saying, we do need to come to the commission to seek policy guidance before we move any big legislative initiatives. sometimes it's a partner like the giants with this last legislation. we realize there is something in state law that will prevent the project from working or at the time of the bill passing the facts have changed and we need more flexibility. the port commission does not have a formal approval responsibility. it is the legislative body that needs to make the law change that needs to approve or deny, but we certainly need to solicit policy direction before making those big moves. >> okay. i thought this was a great presentation. it's the first time i have ever seen it. so i'm really happy to see it and really like the fact that we are so engaged in and we have so many things going on. i

was just wondering how the commission can stay knowledgeable about what's out there because we can also be a help with whatever efforts we have going. but if we don't know, we can't help. >> to that point, i think in some prior cases like the general obligation bonds, the commission was very active in helping us get those you know, through the process and to the voters. i think we are hearing that the best way forward usually the city state legislative committee meets and hears proposals from departments, all city departments in december? is that right? so, what we would like to do just going forward is bring to the commission on an informational basis all of the items that we would be bringing to that committee so we are doing it in informational presentation about those issues before we

are seeking committee approval. and then as daly was saying, we know that many of you travel to washington d.c., you know legislators at both the state and the federal level. certainly with the seawall project, we are going to be embarking on a legislative effort that is much bigger than anything we have ever done in the past and we are going to need all the force of the commission with staff to get those ideas through that are going to finance the project as big as the seawall. >> thank you. >> commissioner katz? >> you took the words out of my mouth regarding the seawall. it would be helpful for us to work with you in the formation particularly to questions and issues you want to raise and thinking about what we need to do with the sea level rise

and seawall. i was going to ask about that and less specifically we've got the initiatives for 2016 and 2017, but do you have a sense of what else to the seawall. is there anything else coming up in the next few years that we should start thinking about and the corollary to that and what we can do to help and what we can do to start weighing in on future efforts and projects? >> the seawall team has been meeting. as steven wrapped up phase one to begin thinking about the legislative program that we are going back to need to launch to support the project. we have a mayor senior fellow coming on board. a very new hire on board. we

are thinking of slotting that person to work the program. kevin borough is his name on october 3rd. next week. we've brain stormed a little bit as staff. we are going to engage with the mayor's staff this week. as we come up with our additional laundry list, that's going to fold into a program that was launched with the mayor's office, i'm sorry, i'm for thing the name of the program. the city living cohort is coming up with a plain and we will

address the seawall. >> while brad's microphone is fixed, i will step in. there is two major categories around the seawall. one is around financing and paying for the project and finding the source of funds because there is not a lot of existing programs for -- sea level rise and resiliency and getting the project permitted. i see the seawall project on the program for the next decade in terms of initiatives and effort. we already know that we will be pursued statewide isd and we

are looking for private and state funds in the local edition. >> in answer to your question, these are going to be big asks from the local and state and federal level. we are going to be doing lobbying. a lot of our bills are just local district bills affecting city and county of san francisco. as we are attacking sea level rise, we are going to talk about issues that are statewide and federal importance. we are going to need to speak to legislators to talk about that. >> thank you very much for your presentation. it's really informative and interesting. >> commissioner whoo-hoo? >> thank you for the presentation. i want to say that your back drops are quite cool. the fact that you presented that. i want to give you credit. a

lot has been discussed already. a couple of things, one is to address the issue as far as i think the executive director's report, can you give us updates as things happen. i think it doesn't have to obviously on a periodic basis and maybe such a report to give us such a bigger picture on trying to address on the legislative agenda. something mentioned, some things are very strategic and we weigh in from a policy level. others are transactional that you have to give on a particular project. we may not weigh as much but we need to figure out the strategic ones so you give us in advance and we give you input and the other ways in transactions because of trust issues

and other plans. and another thing we need to know on a periodic bases the direction you are going and i see a list of the 2004 initiatives and to understand alcatraz. for pier 38, i'm not sure exactly what the legislative issue is for instance we need to clear up on pier 38. it's good to see this because once in a while it prompts us to say we are not sure what you are talking about, some of these are part of a normal staff report. i don't think we need to have a staff report every time legislative action is handled, but we should have a better dialogue. >> that falls into that transactional budget along pier 38.

>> you have to put it on because it's going to the board of supervisors, i understand that. but i didn't know about the pier 38 that was the matter. >> that's a resolution. >> i think this is a good discussion. i like having a legislative report every three or 4 months because lobbying is very very important. we need to know what's going on in washington d.c. and sacramento. let's just cut to the chase. i will say it like it is. for so long the port has been the step child from the city as far as getting fund. it's always other transportation issues. when commissioner brandon asked the question, who is the lobbyist and we don't have a lobbyist. that's just about it. we need money whether it's for infrastructure. we have over a billion dollars

worth of piers, of ferries. i was with the secretary of transportation, secretary fox. whether there are billions of dollars giving away with grants, the city wouldn't allow us to go after these grants. why aren't we allowed? we need this. mayor has shown he believes in the port, but we have to stand and say we need some funding. even leader pelosi and others have to say how viable the port is and we have to say we understand about the trains and everything else in the city. but the ports are valuable too. how about all of this human cargo that we have on ferries and water rides and the transportation. we have to put our flag on the ground and say, hey, we've been the step child. nobody wants to say it. i will say it. we have been the step child. for members of the commission,

this is a really good policy issue for us to sit down with the mayor and say, hey, we don't want to be the step child anymore. we have issues that are important for our port. this is a valuable thing here and we need to put the this front and center. i think i will say what my other fellow commissioners and i'm more blunt about it. when brad and byron went to washington d.c. with the chamber of commerce and that was great. and when you went to leader pelosi's office, she said how is alcatraz? we want to know what's going on. we are valuable. we are hidden at the port. we need to be front and center and say, hey, share with us a little bit. i have said what i need to said. the port is a valuable transportation

part of the city especially with transport and parking. we are part of the family too. please, count us in. thank you. >> next item. >>clerk: 11 a. informational presentation of port and san francisco maritime revenue and expenses fiscal year 2015-2016. >> >> good afternoon, commissioners, marilyn yee from ports. joining me is

peter daly. i'm here to talk about the maritime portfolio and revenue and expenses. port maritime has a very diverse portfolio. we have cruise cost, special events, ship repair, cargo, ferries, water taxi, commercial, and sportfishing. marina, zone, excursion and -- the two biggest revenue generator within the maritime division is cruise and cargo. last year cruise generated about $7.7 million or 36%. cargo generated about $5.4 million or 26% of the overall

15-16 operating revenue. i apologize, the next slide is a little bit hard to read, so i'm going to walk you through. fiscal year 2015-2016 is you are place was $2.6 million in operating savings and 1.1 in operating revenue. 15-16 came in at $1 million, 1% more than budget. $900,000 in ship repair. this is the new impact from competition from oregon. repair projects in 15-16 were both

before the new dry dock went into operations in 2015. cruise went into more budget. cargo revenues were up about 200 higher than budget due to san francisco railroad cargo activities came in more than anticipated. the positive variance in revenue were offset by $300,000 shortfall in services. this is due to a resident adjustment for pier 9. when comparing year with year of revenue, the division imposed an increase of $3.9 million. the

main factors are $2.7 million cruise, due to the new passenger fee which was increased from $12 per passenger to $18 per passenger. as well as more cruise passengers came through the port in year 2015-2016 compared to 2014-2015. also the terminal hosted 21 more events in fiscal year 2015-2016 compared to 2014-2015. this is $562,000 because of the impact of the monthly rent adjustment from $87,000 to $100,000. plus more ship

repair activity in 15-16. cargo, we had $480,000 plus. this is mainly due to the strong value from san francisco railroad. the positive variance was offset by a $630,000 in the marine line. this is because oracle raising at pier 80, they were at 14-15. but their agreement was terminated in may of 2015. on the operating expenses side, fiscal year 15-16, the operating expenses was about $3.3 million or 1.6 less than budget. the main factors in the variance are

in the services line there is $40,000 saving. this is due to the actual payment to metro, the company. the previous cargo terminal operator. their activity came insignificantly lower at pier 80 in 15-16. also in salary in fringe, there is a $300,000 savings due to the time in replacing vacant positions. the puc line is a $300,000 savings is due to the over estimate of cruise ship power usage. when comparing 15-16 actual to actual in 14-15. there is a $400,000 lower. the main factors are salary

and fringe. the $300,000 is due to the timing of replacing vacant position in the division. and with a couple of studies in 14-15 that we didn't have in fiscal year 15-16. the next slide shows our meritime tennants. as you can see total revenue between the top tennants generated $4.8 million or 70% of the overall total meritime operating revenues in 15-16. prince cruises ranked no. 1 and they generated about $4 million in

revenue, 20% representing their total maritime revenue. of the 80 ports last year, 81 were from princess. on the slide it shows the trend, the cruise trend and the projection. as you can see the trend has been an upward position and gearing for 15-16 and the similar level as far as calls, however we are projecting a number of passengers we are projecting it's going to be a slight increase to 300,000 passengers. special events, for 15-16 we hosted about 48 events compared to 27 in 14-15. generated $1.2 million

in revenue as opposed to $609,000 in 14-15. >> this is a slide to show historical projection. for next year 2017, we project a 3% increase from last year 15-16. looking ahead. we are going to see a decrease in ship repair revenue. this is due to the competition from oregon as well as vallejo. we are anticipating a significant increase in cargo at pier 80

due to the new deal offset by the operating payment. we have very strong cruise spoken in 2018 and special events is very strong as well. we are seeing continued growth in bulk. this is mainly due to we have some construction projects in the city. for example transbay terminal, the warrior arena, as well as the other san francisco high rise construction. we offer san francisco railroad value remain strong. this concludes my presentation. peter will join me to answer any questions you may have. >> thank you. i have one

public card and anybody else that wants to speak. >> ellen jock, cochair of the advisory committee. i couldn't miss the opportunity to make a couple comments based on the very nice report. thank you. i'm happy to see some very positive financial report here. i did want to just let you know that the meritime commerce committee continues to meet six times a year. most of the major tennants are representative and attend the meetings and we have great discussions. i want to let you know as well that we are planting our flag, thank you president adams for mentioning that idea as a continuing theme for what we need to do here to support the port, but the maritime commerce group representing all the tennants of the port

and of course welcome a lot of public folks through outside of the port to come too. sometimes we have that and invite the department to make presentations. if there are things that we need to be doing. we did do a sail in for the board of supervisors a couple years ago. if we need to do something like that again, we will do that and that will be another task that we can take on particularly e as we get into more discussions. we are also very very active and well representative on the water land use planning group and have a strong presence there. i just wanted to let you know that. and thank you for your interest and support of the maritime commerce for the port. >> thank you. is there any additional public comment? seeing none, public comment is closed. commissioner whoo-hoo? >> thank you for giving us this report. it's great to see that we are

making progress and that we see the increases in both the revenue line in the various categories as well as we've been very judicial in our expenses this past year. some of it maybe good and some may not be in terms of the position to create more revenue for us. my question related to no. 1 in looking forward. it's great that we have princess lines, the question is how many more cruise lines can we attract to come to san francisco. that's one question. the second question is we obviously are forecasting increase in passengers. is that a result of not necessarily counting on more cruise calls from the existing clients but also more ships is how we get more passengers. the last piece is, i would like to know how many idle days to we

have at pier 27. so we know between the special events and the cruise which i understand sometimes takes 2-3 days as far as they manage that just to know what the capacity at the cruise ship terminal whether it's more cruises, more events and what days of the week are idle so we know the rational expectation we have. and it's great to see 48 events. but potentially that can go up and the question of understanding the idle day capacity and days of the week that can be marketed. because there may be some opportunity there, it would be great whoever is managing the special events with metro, if they could explain what they are doing to market within the cruise terminal. i'm not sure the city knows

that it's available for rental. >> mike, can you please take that question? >> good afternoon, mike northwestern -- from the port. in terms of the cruise lines, we are visiting -- [inaudible] >> bring the microphone closer to you, please. >> so, there are basically princess is our main clients. the other lines that targeting are norwegian cruise line and royal. those are our large fleets and we are continuing to use them and also

holland of america. i should have written down some of your -- >> the day the cruise terminal is idle? >> oh yeah. this year we have 70 calls at pier 70 and about a dozen calls at pier 35. that's on days when we have more than one ship in port. for example, this week on thursday we have one ship at pier 35 and one ship and pier 27. >> my sense is you are not going to know all the answers. one is capitalizing and know what the number is. rather than telling me is strategic because it is the future of where we can go. it's great making progress. i'm looking at the opportunities to keep growing the businesses and only if we understand where our

opportunities are in terms of capacity in the use of the terminal and direct us in terms of marketing whether it's cruise lines. >> i can help out. we will get back to you. i will say that we've looked at this utilization rate from the beginning when we had the challenge to have the cruise terminal rate break even. we know that cruise generated more money for the port but utilizing the facility as many ways as possible for events and the utilization rate for the cruise terminal has gotten better over time. but special events has been going up and up. and the word gets out and the marketing program from metro and hartman studios begins to take hold.

we'll look again at the utilization. we are having two events in the facility. so we'll look at how intense the use is and we'll continue to work with hartman to see where our potential is. we've been on an upward trajectory on cruise and special events. the one area we are still struggling with is parking. we have not met our projections in that regard. why don't we've another look at our analysis and come back with more detail. >> sorry, when you say that, you are saying we can't charge enough. there is not enough utilization of parking to get revenue at the terminal? >> right. we thought there were be many more perkers. we haven't seen the use that we anticipated when we did our initial projections. >> what are the other things that could be coming down the line in

maritime that could help in that regard, i don't want to just focus on the cruise by itself but what are the other amenities that we could see developing? >> peter daly. yeah, obviously there is some good news. i'm going to answer your questions inversely too, there is concern in the ship repair segment. bae systems, operates the yard for us had a record deal last year. they entered into a new agreement with the port a couple years ago. we raised the rent. they knew there was going to be new competition; in portland. the price between the 2 yards

has been very aggressive. and dae is looking at a significant decreases in the next fiscal year in terms of their revenue at the yard. that's an area of concern. marilyn touched about the industrial uses, the cargo and the arena. i think construction is due to begin in 2017. we'll provide significant new income for our rail operation as they take contaminated soil throughout the area and volume needs through pier 34. the pier 80 is the one with grand slam potential. it's going to take some time. there are some irons in the fire right now that could be significant economic revenue booms for

the port. we'll continue to brief the commission on that opportunity as it comes forward. we are very excited about their plan. that's probably a more significant opportunity for us. one thing about cruise also is we have been meeting with the cruise line to get more of a commitment from the cruise line to guarantee a certain amount of calls in the year to give some berthing assignments to get business from our customer base. water taxi is a good transportation but not a big money maker for us. we are trying to grow those business. what is not on this for today is south beach harbor which is a very positive revenue position right now. the way the port does our

accounting are alcatraz and other, we do a good job in managing those and there is an opportunity for revenue increases going forward. i hope that answers your question. >> commissioner katz? >> thank you very much for your presentation. and of course, how can we even make it better. a couple questions, one, we've seen a projected increase in ship repair due to competition between smaller ships and larger ships. are we doing anything in the way of added marketing to try to diminish that drop? >> yes, excellent question. we have in recent months met with the senior management team to discuss strategies to achieve more competitive nature of

the yard. the cruise segment for ship repair is a real opportunity area for bae. they have seen the yard be aggressive with the cruise line to buy that business at a loss. bae's laws. which is great. >> don't they have their own laws? >> yes. but the plan of attack, mike recently went to florida and met with all the senior technical directors from the cruise lines to help market the port, the shipyard to cruise line decision makers. we have a trip planned to holland america who is up in seattle in november to meet along joint sales calls with the executive to those lines as well. there might be

some financial incentives to get them to call. if we can do dry dock to reduce cost to them for an incentive to come to san francisco. we are trying to be collaborative with bae particularly on the cruise segment. >> perhaps there is some opportunities to have them do embarkation and disembarkation for cruise to san francisco to do the repairs. >> exactly. >> and then related to cruises, this maybe something for a future presentation, but have we thought about exploring, adding a berth to our new terminal and can we look at the expiration? >> yes. i have thought about that. we will be adding a cost to our pier 37

and part of the operating planning process and you will learn more about that. it's a year 1/2 down the road. we can certainly come before that and describe what we've learned. >> but it seems the cost of funds is probably still at one of it's lowest points. it might be a good time to explore that now if we are going to embark on something. >> thank you. >> commissioner kounalakis? >> i have had my questions answered by the previous commissioners asking questions. so thank you. >> commissioner brandon? >> thank you for this report. i think it's absolutely wonderful that cruise and cargo revenues are going up and will continue to increase. so, congratulations and thank you very much for that. i was just wondering, i was looking up the expenses and it jumps out that we have budgeted $1.2 million for professional contracts and

only spent $360,000. i'm wondering what we thought we were going to do that we didn't do? >> this is directly related to the revenue payment to the cargo terminal operator when we did the budget. we thought the cargo activity would increase 2 years ago when we did the budget, but the cargo activity at pier 80 has been really really low. so the revenue payment to metro was about $300,000. >> okay. so we also had a decrease in revenue? okay. then i also noticed that then at the -- entertainment and promotion was 50% over? >> yes.

that was because we bought some new fleet week banners and as well as we spent more money to promote our cargo and cruise business in 15-16. >> great. and sea max, delaware and concrete, are they maritime tennants? >> they are maritime tennants. >> do they ship? how are they maritime tennants? >> i believe darling and sea max brings in material by barge that they get from a committee shipping line. that's in operations. as you look it's in the marine terminal. darling has not recently but

will export animal oils to asia in a somewhat regular basis and they have a ship that berths when they have plans the do that. >> and central? >> central again buys aggregate from hanson and from bodey gravel and they have a cargo component where they have to buy from across the port in san francisco. >> okay. one other thing. i met the president of holland a couple weeks ago and i also met the president of carnival. if you need any help, let me know. >> absolutely. that will be helpful. thank you. >> i have a question on this. going back over entertainment and promotion, is that for food and alcohol and other things when

you are out promoting. that's one question i have? >> that is for example we have conference and we have reception at the great bowl conference. >> it's not providing food and alcohol? >> that is a part of it. the biggest component is promotion. with the new cruise terminal we developed new ads and placed those ads online and there is entertainment for prospective tennants. as we have the new marketing representatives in houston at the conference. at the display they have a conference and manning a booth. so, yeah,

those cost are incorporated into that. >> another one. you are $31,000 over on current expenses. i do financial reports. if i said miscellaneous, what does that mean other expenses, $31,000 itemized? >> i will turn that over to marilyn. >> this is really a place, the reason for the $31,000 over age because we spent money with the banners and we bought new emergency supplies for the ferry operations and as well as we made a new sign for pasha at pier 80. >> thank you, guys, good job. colleagues, anymore questions? seeing none, thank you very much. madam secretary, next item.

>> item 12a informational presentation on the port's contracting activity for fiscal year 2015-2016. >> good afternoon commissioners, my name is boris -- the report is for port's contracting activity for fiscal year 2015-2016. there are a number of ordinances that govern throughout the city and county of san francisco. throughout the presentation, i will discuss two, chapter 14b of the administrative code, the local business enterprise ordinance and the local ordinance. i will mention the lbe certified forms and the open and active contracts, review

local higher ordinance requirements and then discuss upcoming opportunities in the coming fiscal year. >> can i have the projector? thank you. the local business enterprise ordinance or lbe program is to level the playing field for city contracts. certified lbe advantages and goals when bidding on city contracts against non-local firms. the contract monitoring division certifies firms and member: $20 a month, just mbe's and there are currently 1706

firms. that's 130 degrees from last fiscal year. minority owned firms are classified by ethnicity. the representation remains the same. 24% american, 24% african american, 24% of the latino and this is a successor to the city women owned programs. that was enacted in 1984 to combat discrimination against women owned businesses. in 1984, prohibited the city from discrimination in public contracting through ethnicity and gender based bid preferences. it's important to know that the

program is race and gender neutral. no scores are given based on race or gender. nevertheless, the city is allowed to identify gender and race to determine how and who contracts are awarded. during the fiscal year, we awarded 21 new contracts valid at $44 million. in the first half of 15-16. we awarded approximately half a million dollars in contract. the second half of year was extremely busy. by comparison from january to june, $40 million in contracts. one contract in particular influenced our overall mbe programs which is $20 million and does not have any

l be's associated with it. when we increase the overall lbe performance is 23%. however when we excluded our lbe performance climbs to 65%. 12 of the newly awarded contracts go to lbe contractors. that's 57% of the new contracts. we also awarded 4 contracts to the set aside for competition only amongst the smallest lbe firms. this is another awarded contract divided by lbe types and contract. again, 21 contracts awarded valued at $44 million with 23% going to lbe's when we include the dredging contract. this is another look at our awarded contracts without that $28 million

maintenance dredging contract. as you can see from the pie chart on the left, our lbe climbs to 41% and 9% to women owned firms and 14% to minority business enterprises. this is an award by ethnicity. a few things to keep in mind in this slide, one, there may be some local firms that are not recognized add lbe because they are not in the monitoring division. they are under plans to getting their certification for lbe. there are some that are not currently registered. they are in the process of that and should be shortly. another thing to keep in mind, when becoming a certified lbe firm, the

firm must select between women owned certification status. during this reporting period they are represented in this chart as a minority owned firm, not a women owned firm. the opposite may also occur. non-profit firms are represented by a board and classified as obe, one of our contractors on the youth employment program contract and their dollars are also reported in the obe total. finally the pie chart on the left show the breakdown between minority businesses by ethnicity. half of the awards to mbe firms are $1.2 million out of that went to three asian american contracting engineering firms, the remainder were split between african american and

latino american contractors. other than when we are awarding contracts to lbe's, 65% is a good number and we need to come up with ways to outreach and diversify the lbe awards. that can be done in a number of ways. that is greater outreach. we hired a firm to begin that contracting now. two, we need to award more micro contracts for smaller lbe firms. for example, last fiscal year we had a 2% shop win one of our real estate economic contracts awarded as a micro lbe. this year they came back and

worked on economic pool. micro set aside as a way to build small capacity firms and we need to do more. we also need to encourage more firms to become certified. the number of certified firms is decreasing and that's something we need to be aware of and continue to promote. finally, we need to be creative with our existing opportunity. this past year's parking lot rfp where we had a large international firm partner with a small local mbe firm was a success. that opportunity was not reflected in this slide because it's a lease and not a contract. those are the types of creative things we need to do in order to diversify our lbe awards. this view is the same view as the previous slide, however we are looking at the number of the actual

awards instead of the dollars. so there is greater parity between the certified firms. 17 to women owned firms and 2% to obe firms. this slide reviews the payment of contract period. 62% award went to lbe. 's, during the period exceeded the contracting goals. it fell 1 percent below the mark but we expect it to increase in the next period. overall is 19% and our subcontracting 25% of our dollars to local firms. it's important to note that

each of these contracting goals are made available through their on contracting goals.. we have a financial advisory contract. however most of our contracts are exceeding their contract monitoring division set goals. some of these additional contracts are located in attachment 3 and 4 of your report. this slide compares awards and payments made this fiscal year against the previous 2 fiscal years. even when we exclude the maintenance dredging contract, we awarded more dollars this year than the 2 years combined while maintaining the lbe report by 6%. our percentage of lbe's has also increased. turning to the local hire ordinance.

construction projects of over $1 million subject to the city's hiring requirements. 16 projects have been subject to it. all 15 have met the city's local hire index. it's managed by the mayor's office of economic workforce and development. there are currently four projects here at the port. two of those projects are complete. one is the gateway and pier 49 sewer repair. both of those exceeded their goal. two new contracts that have come online are roof repair pier 31 and 35 and we believe they will be able to meet their local hire requirement. as i mentioned before there were a lot of contracts on the second half of the fiscal year and many more coming online in the next 6 months. on the construction side of the house, we

have a $2.8 million roof repair contract that will have an lbe goal and the next one has a goal of 20%. we have an as needed environmental series that will be coming up to bid in january and finally the seawall resilience program will be keeping us busy. the first contract associated with the seawall will be available early 2017 and anticipated to be $20 million. in conclusion, we had a busy contracting year with above average contract awards. 23% of dollars went to lbe, if we include the dredging contract, remove that from the mix, 52% of lbe

performance and 52% went to businesses. the next 6 months are going to be very busy in terms of our contracting portfolio. as i mentioned earlier our aim so award majority of the contracts to local firms and to engage the city's most dissen franchised and under served businesses. that concludes my presentation and i'm able to answer any questions you may have. >> thank you, are there any public comments? is there any additional public comment? seeing none, public comment is closed. commissioner brandon? >> thank you very much. this is a very detailed report. i really appreciate you putting all the numbers together and tracking everything. thank you very much. i think that we should be

congratulated for all that we have done with our outreach to lbe's and the success we have had with that program. but i can't really figure out the -- emotion i'm feeling right now. i'm extremely disappointed that this program came out of the city's, it's a success or program to the mbe, wbe program. >>council out of $144 million, $131,000 has gone to african americans. and $181,000 have gone to latinos. am i reading -- i may miss? >> there are a lot of

asterisks, they are certified as mbe 's. i feel like i have failed because i'm not doing something right. i'm not sure how we went from quarterly to semi annual reporting. we need the track this. i think we not only need to come up with a creative way, but a direct focus outreach program to bring minorities into the port of san francisco.

>> we need to do much better. >> i don't know how to track that. we need to stay focused on this issue because it is significant. so, my other question though is actually on the mechanics. when the law prohibited awarding contracts on this basis, it didn't prohibit tracking. is that right? >> that's correct. >> so, if we are not allowed to award

on this basis, then what can be do to be able to outreach. how do we go about trying to see the kind of diversity that we are looking for that we are after in our contractors in a way that doesn't run a foul of the law? >> i think there are ways to build capacity to outreach, engage those contractors and build their capacity slowly from small contracts on up so they learn the process of bidding on contracts they get involved and join teams that are successful bidders and winners and get out there. we can't give a big preference, but we can do outreach. we can encourage, we can issue small contracts and continue to put the word out. i think people that bid on city contracts at the port know

that we take the local business enterprise ordinance seriously. even when we have opportunities like pier 29 where it's not considered, not part of the actual project. we have firms that work with an lbe utilitization plan and they have to have a business component. now at that level, we need to go further and reach out to local firms and minority and women owned firms to do that outreach. >> commissioner whoo-hoo? >> thank you for the report. it's very illuminating and i guess some of the results and commissioner brandon said it's surprising and we need to really drill down on this. i would like to know and i'm always

looking at the bigger picture in the sense if there is anyway to know that other city agencies are also having this problem? and if they are doing better than us what are they doing that we can learn or is it the nature of the kind of work that we have that we don't have more firms like this that can qualify or interested in doing the work? because we have done the outreach. i'm wondering is this pervasive in this city or what can we learn from other departments or agencies that can be shared so that we are not struggling to scratch our heads all the time. i think that's no. 1. when you said, asian american, two engineering firms, that's one plus one equal two. asians engineering firm, i

hate to stereotype, but that goes on. the problem is deeper here and gets into other issues. we have been a model of trying to do the right things and trying to reach out. ms. brandon has been terrific in her advocacy of this. we are pushing this, but we are not seeing the results. it's like we need the figure out what's going on. i understand outreach is a tactic, but it isn't going to solve the problem unless we understand it more. that's one thing. the second piece is that we do award a lot of contracts. this is just one of your reports and i know that you report on another report. what i want to know and certainly elaine knows this, in terms

of what actually has been concluded, not award, but in terms of contracting concluding did the contractor complete a job on time. there is another lens at a we want to see because there is always a contingency and you ask the port when you need more money. i think we generally always have a little bit of a concern that a contractor comes in and bids low and change orders and find a way to move the dollars up. i guess we want to have a check on that to say, well, did they really come in on time, on budget and where are these contracts going, the top 10 besides the dredging because i understand they have the highest contract. as i read this report, there is a lot

of things i think that we need to reflect on and just talk about it more and figure out other ways. i guess what i'm saying, you keep looking at it doing the same thing and not get a different result. we have to think about this. >> if i may step in. we have 1 person that's why it went from 1 year to quarterly. there are no others that report this data in this manner. i'm also very disappointed in the numbers.

but boris presented the numbers. we didn't release the numbers of the advocate ors. we list what we have. there is issues to solve relative to who is in the pool. we need to really set goals for ourselves and achieve those. i think these numbers of disappointing, but they also reflect a lot of different outreach and a lot of different efforts that have gone into dividing these contracts differently. we don't have the lease portfolio. we can think of strategies. we want to talk to other enterprise departments to see what else we might be able to do to accomplish more diversity. but i do think there is limitations to what the port staff can provide as we are currently staffed. i just wanted to add that note. we can go back to quarterly reporting, but that has a direct

conflict with moving projects through. we just have to balance that out. >> that's fine. maybe we want to look into another position because this is a serious issue. >> it is. >> if i can add one point to the coordinating with other city agencies. i serve on the lbe advisory committee with representatives from each of the chamber of commerce and representatives from different trades and we go over upcoming opportunities and discuss ways to enhance and increase lbe participation. there is coordination happening with other cities and there is a representative from monitoring division that serves at the port and helps advocate for lbe.

this is a snapshot of the work awarded here, the contract of $6 million pool. it's a combination of all of those things. the types of contracts going out and next year there will be another series of contracting and we'll continue to do outreach and hope to see those numbers increase. >> commissioner katz? >> thank you, boris, i too know how much work has gone into actually getting these numbers up from where they had been, as i said before, we need to do better and that's what we are all up here looking to see how we can. we talked about outreach ways to do improvement, but you noted one of our big successes recently is our parking contract and we did

think more creatively there. are there ways we can get around parameters and be creative in looking at partnerships and mentoring and bringing up and training so that the next generation of contractors if you will that we might be able to apply some of that in our rfp's. >> there are some resources that are available. the puc has a center where they hold classes and there is the contract monitoring divisions and mentor protege program with international firms partnering with small and local firms and to win big contracts in the future. there are those types of programs and plugging in the

program and bidding on the contract is the goal. >> that might be where the added person can help on accelerating that. we need to take a look at how to do something a little differently and that sounds like it might be the way in looking at the success with our parking lot contract. thank you. >> thanks for the report boys. i have to say this is a very painful conversation. in some areas we have really failed. and we got to do better. and i'm hoping that you can come back to this commission. i mean you look at the disparity. it's just really unacceptable. it's bad. there has to be some kind of way to find more of an equal plan. i can't speak for commissioner brandon, but i agree with her and

commissioner kounalakis. we are not getting there. i know we have a lot of brainpower at this port. we have to find a way. i think it's equal playing field, but when you look at the disparity of the numbers, you would almost think that if you are african american or hispanic you are being left out. you would think that. i just ask that we work diligently to find a way. what's in front of us right now is just not acceptable. i would ask that you come back in the next month or two with a plan. clearly what commissioner brandon said and hue to make this work. i'm not blaming you. if someone would look at

this, you would think that african american and hispanics are being left out. this is just having the conversation. i'm fine with having this conversation. i believe that's not what the port stands for. i believe that. i would like to say, let's try to find a way to fix it. i will leave it at that. >> can we also do something. there is the beginning of the funnel when people actually submit bids. is there any way for us to know from those that have submitted is the pool out there greater than than what we actually end up with? so that will be helpful to know the beginning of the funnel is. that's another data point for us to understand. >> i can do an analysis of the firms that are registered per the work that we are seeking, yes. >> and, again, something that we sort of alluded to in the past that is a problem. when we are looking

at percentages and we have percentage goals that we are looking for lbe's, that really doesn't drill down to who is actually participating in that lbe pool. one thing perhaps that we can get at with some of the larger contractors is having them look at a more diverse pool of lbe's. there seem to be some of the same entities chosen over and over again. maybe that's a way we can look at it as we are looking at lbe participation in the contract that some lbe's that are new to the process and perhaps add extra points if they choose new lbe's instead of the ones getting the

contract. i had my own business and i didn't sign up to be listed. we need to take a look at not just finding the traditional or the same old companies that are brought in to meet the requirements for the larger contracts, but to see if we can encourage the bigger contractors from the lbe partners that they are a little bit more creative than just the standard. >> could we take a look and have conversations with the department of public works and just other departments to see what they -- i mean what they know of and if they found something that works in results? >> yes. >> frankly as i recall some of them have been looking to us for

creative approaches too. so, traditionally we've actually been a bit ahead, but that doesn't mean that everyone shouldn't be doing better. >> i think you heard from all five of the commissioners. i think this is clearly a policy issue. that's what we do as commissioners. and, you know. >> i appreciate very much the policy conversation and i do absolutely understand where the commission is coming from. i struggle with the constraints that we have with our rules and regulations, are and we only have so much flexibility. but that doesn't mean we can't be more creative and we've been creative in the past with the parking operator. with hunters point family and with many different contracts that i can think of. we have deployed a lot of creative strategies. >> which building was it?

>> queens in the northern water front. that's a lease and that's not in this report. but i think we can solve this problem together and we should keep talking about it and i think the reporting is really into solving the problem. i continue to struggle with the limitations in staffing and we have to work on that internally and we have to view the results and talk about it more and we'll be creative and forward in this area. that's our first stop. thank you. >> thank you, appreciate it. madam secretary, next item. please. >> item 13. new business? >> i have a couple of items. we will be tracking the contracting report quarterly and going forward we will do so. we will report on the forward

calendar about a second berth and pier 37, and legislative updates going forward and also a presentation on the legislative program. we will calendar a discussion on water taxi services and the business plan, and we will when we update on the seawall, we will look at other improvements that might be needed in the ferry building area that supports the water project. is there any other new business? >> i would like to amend on the contracting. i don't think it necessarily has to be quarterly, but within one of those reports i would like to know in budget on time so we do know where they are as we award our contracts that our contractors are actually performing as a group. i think that's important for us to know. the second piece is it's not under any urgencies, but i would love

to hear more about how we can work on what i said about the cruise ship terminal and where we can aim for more cruise line activity as well as special events. it's something that we spend the time and think about it. i understand we are going to have some people talking to the players in this. so it's like to spend the time to come back and tell us whether the trend line is moving more to offset as we heard the shipyard repair. >> colleagues, anything else? >> madam secretary? >> i move that we adjourn in the memory of rose pack. >> second. >> all in favor say, "aye". >> aye. >> any opposed? we are now adjourned. 6:09. thank you. thank you. [ meeting is adjourned ]

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didn't o- >> sound familiar do you keep on getting up there's an easier way. >> of course there's easier way get rid of of mosquito they breed whatever this is water no water no mosquito mosquito feed on good blood the eggs hatch and stay near the waters san francisco to breathe and the adult underlying mosquito waits on the as many until it's sexuality hardens water pools in any areas and creates places you'll not normally think of budget and any container that holds water and hidden in bushes or else were dump the water and do it over

soil not into a drain the larva can continue growing in the pooled water is sewage disthe first of its kind the area if the sewage is two extreme have a licensed plumber assist water pools in rain gutters and snaking and cleaning out the water when keep the water from pooling and keep in mind that mosquito breed in other waters like catch balgsz and construction barriers interest crawl spaces with clmg is an issue you may have is week to cause the water to collect this is an sour of mosquito so for buildings just fix the clean air act drains and catch basins can be mosquito ground it will eliminate it as a possible location keep shrubbery and growths

estimated any water to can be seen and eliminated birdbath and fountains and uncovered hot tubs mosquito breed but it is difficult to dump the water out of a hot top can't dump the water adding mosquito finish rids the source of mosquito there are also traditionally methods to protect you installing screens on windows and doors and using a mosquito net and politically aau planet take the time to do the things we've mentioned to eliminate standing water and make sure that mosquito are not a problem on your property remember no water no mosquito

support. >> i'm going to get starting this is a great opportunity a great momentum i'm using the your host with many other hosts including the residents this is grouching foreclosure transbay 78 and grand opening of gained 6 this is at first mixed income in transbay if this was a vision that our redevelopments agency ocii and the city has had of creating communities that are truly mick all the amenities you need to live a wonderful life in a transit rich location without driving a car all the time he know that we have the chief promoter of number one driving cars your mayor, we have a pot

and get you to transit 7 right now the salary didn't work we're lucky to have a couple of residents that offered to speak and give me tare perspective on what it is like tobacco live in the did you development first, i want to start by welcoming up your mayor we're particularly lucky in san francisco i think we have a cast of elected officials that support affordable housing like not other thank you and 23w7b jane kim and your mayor go comments we've here but open up to mayor ed lee. >> thank you doug for the introduction good morning, everyone today's lucky numbers 6 and 7 (laughter)

6 because we are in district 6 i know that supervisor kim know that for sure they represented this district and a partner to make sure that every opportunity we have whether that you are ocii tiffany and the the commissioners are here i see all the commissioners very proud of their role in infrastructure and investment for your communities and they have not failed on the steps of going from a redevelopment that was kind of extinguished to make sure what happens in the city and county so i want to thank you to ocii and thank doubling and mercy housing for o for being a great partner many projects that olsen and the mayor's office of housing working together in collaboration on and particularly i've been asking recently years my ocii list i need to really be on top of what tiffany and the

commissioners are doing i want to be there when they're making announcements about another 69, 100 percent unit our city this is what we're doing today with the lucky numbers of 6 and 7 as doug said we're block 6 and block 67 that is groundbreaking with another one and 11 units all 100 percent affordable to low income and middle-income families this is fulfilling promises of our city that we will build affordable housing along with the market-rate housing we're doing and we've make sure that 50 percent of all relevant units we put an there are middle-income and low income this is what 50 percent of ami is important to understand those are deep, deep substances for those teaches projects just a

year ago reiskin ca a apartments for that formally homeless was built and opted out the residents reinterviewed them i'll see a lot of smiles in their oath the streets into supportive housing we need to do more to articulate our goals for thousands of holes it on the street in between that we'll build as many affordable housing we can i know that recently you read in the newspapers i have courageous the developers to go as high as 25 percent of their market-rate housing to be affordable we have to, of course, pay attention what is economic and feasible so that number will adjust but it is still a something that the cities have to the figured out we have

taught figured with our serious investments in fights last week there blocks 6 and 7 again are examples of what we cocktail to mc as a affordable in those cases 100 percent you can't change that is not to be were interpreted any on the way than a strong commitment by the city as we gain control on the sites we'll make it as affordable as we can the people we're representing and others people that does have a vows unless what we are doing with the sites take a look at the squander for ocii over two years and see an active organization working with the mayor's office of housing and the former housing authority that are a hope sf for all the public housing and making sure we encourage anyone that owns

vacant lots in the city? if so it vacant arrest empty gas station give it up we have a need we can build and do better things are and encourage public transportation because one of the reasons we're able to gain much such a site is because of electrician transit center for the entire area it will be i look forward to being here because i want to ride the high speed rail from the basement to la marble we'll beat the dodgers as a result of that all of you in the housing development the private and nonprofit eastern working with our city agencies thank you to you all of you that's not easy to accomplish and takes a lot of different skill sets to put it altogether but now it is 69 in a few moms

another one and 11 units you put those kinds of things together with the other projects we're under construction under permit and you emigrate potentially 10 thousand more affordable housing units by 2020 and this is what we're committed to and making this another example questions are on the way to accomplishing this thing together with all of you have go solar conversations with the board to do more thank you very much . >> (clapping.) >> we're blessed in san francisco to have elected officials that are supportive and many of you know the supervisors track record on there for mercy housing on many, many occasions and building more affordable housing in her district marathon any of the

districts i want to thank the supervisor and bring her up for a few minutes supervisor kim. >> thank you doug and actually over the past year the mayor and i have been mercy housing ribbon cutting with 24th street i housing for the former homeless families in mbe the reefrment halls been an amazing promise we've eye to build high levels of affordability all the way into families to the formally homeless and lives on the street to mifrment families that can't afford to buy a home in san francisco and transbay neighborhood is within of the neighborhoods way before the mayor and i negotiated 33 percent trev o transbay had a loft i didn't gel of affordable

housing >> (clapping.) >> i want to recognize he's not here but our former state senator john burdening what is from it is in the midst of the housing crisis we're seeing units for low income and mifrment families through the work that happened many years ago and part of the solution of some of the households today block 6 and 7 were the first development up in bid i want to recognize ocii, tiffany the director and commissioners commissioner myrna melgar and commissioner singh to make sure we are building affordable housing mifrment on time and schedule thank you for all your hard work thank you for all you do and mercy an amazing participate one thing to get the funding and one thing to find

the site but to have the capability and know how and knowledge is incredibly inmental and having nonprofit that help the communities they work here already and provide services onsite to the residents so to critically important we want to make sure we're serving your families and households they can stay in the housing we're building today so i'm very excited for the opening of blocks and congratulations and thank you for choosing san francisco to build in and really xiefrtd about building blocks 7 next we'll be heading over to the groundbreaking and thank you to everyone that is involved in making it happen today. >> (clapping.) >> all right. as usual the supervisor cadet me to the punch thank you tiffany and her staff

they're a lot of people from the city does that really, really couldn't have done this project it relied on the mayor's office partner and thank you to others ben and gretchen and jean i'm sure one more name sarah price all of whom are miscellaneous those are truly partnerships this had three or four stages thank you to the commissions for your support and the ongoing support we're excited to be about to begin to mark soon with the ocii and candle stick point he can't agree with the mayor more we'll make progress i'm personally happy if the perspective that those are truly mixed income communities trying to build together to make

sure we have the right amenities as an example when the one and 20 apartments requester up in the middle a very affordable childcare center another part we need to take into account a lot of people to thank i'll entering first this if you have comments wait a minute. >> this was a very i'm not going into the gory details but a scomplashthd building more complicated than most you're sitting or standing on top of a garage a garage that is actually, the foundation for both it high-rise tower and ours so i would not say i should would build two buildings but in project sponsor couldn't have done it without the work of the team innovate because the most

important but they did an amazing job i don't see the folks but chuck sorry chuck of k l gordon and buck and others this was a labor of love sometimes a very peaceful a lot but you guys made that happen we appreciate that and our architect an amazing joint effort between solt solomon. >> prescott sanchez and societies they worked together well bruce we want to thank naomi and peter noon and i think that's our crew from the architects they did an amazing job not an easy project to coordinated but one of the things that the city and county takes an amount of prides and he

certainly merry 1:00 when we opposite side one of the buildings in a neighborhood the goal no idea which one is the favorable i can tell you from the fact every time we open your building with the ocii we have lots of people want to know how to rent our affordable housing units and people are shocked they can't sdwisht difference our partnering not only with the agencies decide this is the hallmark of work in california to make sure we make sure we're building the heist quality building for everyone involved so that leads me to a key if you have any questions, we'll be happy to answer them for block 7 umgs the ins and outs of cap & trade with the climatic change within of the features of the climate plan is trying to invest

in various different teaches initiative a key program the affordable housing sustainability community an hidden gem as jan explains to tie in detail that will not be hidden by block 7 we are lucky enough to have 6 nature million dollars the first insulate of director rubke but not the last they'll have an award announcement and i'm sure san francisco will make more wonderful things happen correct me if i am wrong we believe this is the most at the time of trial rich project in all the projects in the stating base 6 commitment to the transit and caltrain and muni and with all the great bus services to that's why the state is investing in will the system and why 9 pocketbook is open and

everyone project will continue to get more money so from the mooechlz. >> i can't get more excited than that. >> happen /* happy birthday to all and everyone loves a birthday so heads up to everyone as we celebrate birthdays together you know this goes without assessing this was an election year how many of you really realize that today is an election day yes it is because in my world he hope it will be in yours everyday is an election day not the noise we hear an tv and social media by god

but everyday is an elect day of making decisions it's a an election between self or others every day we make a decision about our lives are we thinking of ourselves or others and amy doing something that is good for society or am i being passive or creating walls you know i'd like to introduce go preserves as we celebrate this day the perspective of a planner a funder act and then a resident unfortunately, he wouldn't have the privilege of being a resident like to do my best and talk about that you know because what we're experiencing today is a wonderful example of how transit development; right? is smart planning and best smart

and they're not inclusive we realize we wrooks that planning and design must be sustainable for a future we roles that affordable housing for families and seniors is smart housing and having san martin transportation refresh infrastructure is important because infrastructure binds us together doesn't it we walk the same paths we drink the same water and were there few diverse communities last week san francisco and people are riding at the time of trial; right? and living in transit developing together tied into density housing and active translation and getting at the time of trial passes you know murphy housing was one of 28 westerns in the

first launch of this affordable housing and sustainable community program it was the pilot year we're now in the thrills of funding our second round in october you'll hear the news about that in a few weeks i'm here to talk about planning and clefks i you know have a deft opinion he recognize that has we know the governor is forceful that climatic change is a big issue you can choose to ignore it just if i choose to ignore people in the so forth but and a change the existence you see a little description of the program the agency program it's not a program about projects we use projects a lot but actually a program about project areas

translated communities because we believe in building homes and not walls amen and lightwells talk about community from the perspective of a resident at the core of words community is unity; right? we realize today that all people deserve affordable housing are regardless of where they are in the economic scale so on this election daywear taking responsibility artists we to care and invest in our community in the residents of san francisco we vote for the associate quality to pull together they can work together as we're seeing it in front of

us and will see it in just a few years. >> nearly 50 years ago a approximately candidate it was 1968 and he was on the commissioner antonini trail and that candidate was robert f kennedy junior and he had to give the hardest campaign speaking speech of his career on that day in pretty well of 1968 he had to announce to the crowd that martin luther king was assassinated there was no twitter and it was talking in front of a substantially black audience and know it was sparked into a firestorm that would further send the nation into

certain racial populartion and those are his words that resounds like today what we need to the itself not division what we need in the united states is not hatred what we need to the united states is not violence or lawlessness but wisdom and compassionate to one another and a feeling of justice towards those who suffer when they're in your country he knew the temptation of base violence was going to occur and i knew he was thinking whatever was in the minds of peep what is quality one the same law in the nation i'm sure that's where we are today you

feel the recess alsoness the vast majority of whites blakz want to live together and insure the quality of life and want justice for all human beings we declared and call on that day he would let us decade ourselves to what the greeks wrote to some years ago to tame the sageness of man and make gentle of the life of the world if we can only live that and make gentle the life of this world i think you all participating today you get that message you see the savageness and see the injustice and want to make gentle the lives of this world unfortunately about 60 days later that have speech he

helping was taken down and it was o he was in la and there was an iconic picture of him lying on the ground in the kitchen and the busboy cradling his head and told her monk his last words were is everybody okay? >> 3 simple words on election day is everybody okay. on any given day i'm not okay. he need smoking someone to say eugene are you okay please, please ask the question and do something about it last week doug and his team and this at the and your elected officials are doing

something everyday thank you . >> (clapping.) >> i feel very fortunate to work with someone like eugene people don't recognize the department of passion not feeling it agency a recovering public agency official myself i just want to acknowledge the great work that people in government do and not get enough crediting credit u dispense e general we appreciate that a lot of people at about adc i want to thank and objective the director (calling names) ellis and kim thank you for you guys making the trip appreciate our support we're also blessed

to have private partners one standing relationship with silicon valley valley bank and want to bring up fiona if i would. >> (clapping.) >> good afternoon, everyone on behalf of the silicon valley thanks an honor to be here and celebrate the grand opening our san francisco office is just a few blocks away this is a gleaming ray of light in our backyard we are proud to play a small roll in bringing this project to life and 69 new homes very worthy families that are well-designed and high quality and hopefully brings a wonderful opportunity let me share a quick joke so as a new mom he live by the words it takes a village

some days my moerpgz are helped by the many helping hands this particular morning he was navigating around the world i was trying to practice gratitude and my drive took me past our building and the engine kicked in, yes it takes a village to raise a child additional a takes a village to build an urban village and this village comprised of a qualified visionary team that led by the murphy housing and all the partners that are here today you know from the outset we knew the project will be inform testify as a first affordable housing project in is this transbay district and knew that had some unique features that at

times to - moments as doug mentions the shared space with the market-rate project and underwrite a project like we've never done and moments we called kwirm to ask his impression but keep our eye on the price pricing whether in the empire life sciences are community development we want to help our clients have you ever seen into uncharged territories and designer approaches that led to leave sxans results and today is complex problems we need mercy housing like the city of san francisco lied by the mayor and the supervisors and ocii and for your dedication to help the and make the impossible possible my team tuchd that project over the

last few years and got the successful results (calling names) and thanks also to dbi banks. >> in the presence of such commitment i'm truly grateful thank you so much everyone. >> (clapping.) >> thank you, fiona the widens is kicking up we'll get through 24 reach out and hug anybody to that will keep you warm and none will sue in this setting so we do want to thank a couple of other people katherine and the jshths they've been critically generous donors i want you thank

you for your support and federal home loan bank a grant from the affordable housing program and silicon valley bank is an important program and a peas to make the developments work and hopefully for transbay 7 as well if this is your fit on the grand opening not heard the work tax credit an ovsh secure part of irs tax code that is responsible to make those knowledge areas roobl if you don't know where their tax dollars go but this is the building plain clothes for all the affordable housing in the city and what comes with the tax credit the opportunity to work with an investor we have a long another long term fund that worked about mercy to make this

work the more complicated we turn to tattooed they'll make sure it works i wanted to bring up todd and thank him. >> thank you doug it is a obscure the tax credit a my family didn't know what i do everyone we're principles to actually be the tax credit investor mercy housing is one the long even though partners in our history 25 years doug i counted on the database and thirty odd projects across the country and is tax credits the national primary resemble to raise capital and invest into community that's right what we do on a daily basis for thirty years and $12 billion later i'd like to see is we can't do it

without partners we have silicon valley bank not only provided the financing they were trusted us with $28 million of equity thank you, fiona and thank the mercy team william i don't know where sheila with that i'll i'll leave it at that. >> so in my effort inform work it in while we're going there are projects recycle this mercy and your consultants do a lot of work together we are lucky enough to have a long term partner (calling names)

all right. i can't find page 3 but someone on page 3 okay. he found it thank you very much for all that work. >> (clapping.) >> i also want to thank this was a project that required a fair amount of trust our biggest partner the company out of chicago we took a chance we didn't know how big a chance but had we known who knows what we would have done we and the rest of the folks are fantastic people to work with and driven people it was a hard project we worked on that together and no moment did we separate from each other thank you to the company and obviously they're doing more work in san francisco and obviously b be a great interest rate to the san francisco skyline he wanted to take a moment sense it was raised

earlier by the todd to thank the mercy staff this was a really recreate it started with julia and handed to william we've had people touch this project at mercy tells us how hard it was we want to thank all the mercy staff (calling names) if you have not met the guys he's wonderful in you're from mercy if you wouldn't mind raising your hand to be acknowledged. >> also want to thank our chair the reality committee i don't see oh, and kres from the board members advisors and chris and obviously a nonprofit are driven by the volunteers that give me your time and expertise we're deeply appreciative of

they are help there are two projects we mixed up some stuff quarry crazy like this so we heard from todd that led the development investment on block 6 and block 7 we're happy to have a partner in wells fargo bank this is a tough couple of weeks this is truly a fantastic project and for us in the affordable housing there is wells fargo is a tremendous partner their construction lending and the investment that is similar to the projects and again, it takes someone with an understanding of our world and to me is excellent partner i'll bring up tim and i throughout the groundbreaking was simple

lucky i don't dress last week this but confused i think we close construction in june and here it is built already that's a joke i'm from wells fargo the equity manager and i think a number of people from wells fargo here terrance on my team and laura is here and maybe john he want to thank them and everybody and also to echo doug shoemaker i didn't have time to write everyone's name down (calling names) everybody at the mercy i appreciate your help thank you very much and thank our partners olsen lee and everyone at ocii and in the city and county of san francisco thank you so much for partnering with us along with h cd and silicon valley

bank i appreciate all the financial parnsz and thank you to you all the members of the audience as fiona said it takes a village and everyone worked hard in affordable housing and i know i think this project and to project across the street is the good work of all of us i didn't prepare a speech but thank you very much. >> (clapping.) >> and especially doug all right. we're in the homestretch i think as a said to a person none wanted to hear from us but other residents we're lucky we have two residents that have offered to share their story i don't think i bunched your last name she's with an of the newest resident and her

boyfriend; right? and baby. >> hi, everyone and good afternoon. i'm a current resident all the way up to the 8 floor he heard about mercy housing through the friends when we wereplegic for long term and couldn't get in i decided to give a shot and i applied i remember you were somewhere - sorry. >> it was my application that i turned in for housing i remember that was someplace in march he turned in any application in one today, i received a letter assessing he won and my lottery number was 54 i never won the lottery in any life i was pregnant at that time, and turned in any that

application and life was hard before moving into this amazing place within living with a parent in a one-room apartment and really couldn't afford for $2,000 to rent for every month he moved into this home right before giving birth and my baby was barron in my home we want to appreciate it and say thank you to mercy housing and they have a program that gives me opportunities to a young formally person - and helps us thank you very much >> (clapping.) >> all right. i forgot a couple of shout outs i have two more shout outs mercy one of the

things to enable us to have success in san francisco this may be different we take a lot of pride in the work we do around making sure the ground zero of uh our building contribute to the neighborhoods we have someone nancy who is in the back one of a kind person from mercy housing that does our leading thing if i like filled scoff nancy was on early adopter thank you for being on the ground floor and providing coffee and the south of market childcare that is moving in and thank you so much we're looking forward to having you in that space without further ado, a stylish guy i met him yesterday.

>> (clapping.) >> it is windy. >> good afternoon welcome everyone to my neighborhood and my name is leonard i won the lottery which is a program and he was displaced in the san jose from the western edition and me and my family had an opportunity to live here based on the cop and i reilly enjoy 24 place and people here i mean, the amenities the bus services and

stuff like that but some things i'm disappointed with but this is a great place to live and he looks forward to living here many, many years and my wife and daughter live here right there >> (clapping.) >> and they were inmental in - that my wife pushed me in putting in certificate of preference is a great place and clean and xhofsht he enjoy being here i think i have a great opportunity to enjoy this place thank you >> (clapping.) >> >> okay. not to put

pressure on leonard it is amazing you think about the certificate of preference many of you are familiar in an earlier area of redevelopment less gentle force people are displaced from the western edition and for 2, 3, or 4 is decades people had many disappoints we were critically happy to work with the staff of ocii that worked to track individuals over the year and 5 cop hollers from the commissioners to the staff thank you and letting us play a part with that, we're done with the official ceremony we have tours and a little bit of food for folks that are in the front right now come over and perch a shovel of dirt with us and

everyone else thank you for coming take a tour and ask the mercy staff they're happy to tell you the details of this building thank you for . >> working for the city and

county of san francisco will immerse you in a vibrate and dynamic city on sfroert of the art and social change we've been on the edge after all we're at the meeting of land and sea world-class style it is the burn of blew jeans where the rock holds court over the harbor the city's information technology xoflz work on the rulers project for free wifi and developing projects and insuring patient state of at san francisco general hospital our it professionals make guilty or innocent available and support the house/senate regional wear-out system your our

employees joy excessive salaries but working for the city and county of san francisco give us employees the unities to contribute their ideas and energy and commitment to shape the city's future but for considering a career with the city and county of san francisco

>> hi everybody, we down here at the /ep is a center which is our pop up space down here in san francisco where we operate a store front to educate the policy from the home owner who has center which is our pop up space down here in san francisco where we operate a store front to educate the policy from the home owner who has never done anything in the house to the most advanced structure engineers we have working around here. we we're going to here from kelly to talk a little bit about san francisco. how are you doing kelly? >> very well, thank you for having us here. >> in front of us, we have a typical soft story building. when i see this, i think this is some of the most beautiful architecture our city has. a lot of people don't know these are problematic buildings. why don't you tell us about some of the risks he we have in these buildings? >> soft stories are vulnerable in past earthquakes and the northridge earthquake to this type of building and character of building. when we talk about the soft story, what we're talking about is generally a

ground story that has less wall or other /pwraeugs to resist the lateral forces that might be imposed by the earthquake. so we're looking for something that is particularly weak or soft in this ground story. now, this is a wonderful example of what some of the residential buildings that are soft stories in san francisco look like. and the 1 thing that i would point out here is that the upper force of this building have residential units. they have not only a fair amount of wall around the exterior of the building but they also have very extensive walls in the interior and bathrooms and bedrooms and corridors and everything that has a certificate amount of brazing yea it's significantly less country /srabl in those stories. now very often, we get even a garage or storage or

sometimes commercial occupancy in this ground story. that very often not only has a whole lot less perimeter wall but it often has little or no wall on the interior. that wall is the earthquake bracing and so he see very significant bracing in the top floor and very little on the bottom. when the earthquake comes and hits, it tries to push that ground floor over and there's very little that keeps it from moving and degrading and eventually /paoerblly keeping it from a collapse occurring. so we know they're vulnerable because of this ground story collapsing >> is this only a problem we see in sentence france? san francisco? >> no, this is certainly a national problem. more acute in western but more up to california, washington,

moving out into other states. this kind of building exist and this kind of building is vulnerable. >> when you're involved with the community safety, this is a different way of thinking about these types of things. we had a community group of over 100 people involved and upper 1 of them. tell us about * how that conversation went. why did we decide as a city or a community to start fixing these types of buildings? >> there were a lot of aspects that were considered well beyond just the engineering answer that these are vulnerable. and that effort brought in a lot of people from different aspects of the community that looked at the importance of these buildings to the housing stock and the possible ramifications of losing this /houbgs in the case of an earthquake. the financial implications, the historic preserve vacation s implication as you mentioned, these are very handsome looking buildings that are

importance to the tourist city ask which make san francisco something that people are interested from outside in coming and visiting. >> it's such animation story when you think about the 10 years that the community spent talking about this /seurb but we actually did something about it. now we have an order unanimouses put in place to protect 100,000 residents in san francisco and retrospective in 2020. so on behalf of residents and employees in san francisco, we want to say thank you for the work you've done in pushing this forward and making people more aware of these issues. >> and it was a fantastic community effort. >> so in an earth quake, what happens in these kinds of buildings? >> what happens when an earthquake comes along is it moves the ground both horizontally and vertically. it's mostly the horizontal that we're worried about. it starts moving the

building back and forth and pushing on it. when you see i'm pushing on it, the upper stiff of the wall stay straight up but the lower floors, they actually collapse just like i did there. >> luckily, we can put this building right back up where it came from so it's a lot easier. now kelly, obviously these aren't real frame walls here but when you talk about buildings, what makes the property for stiff? >> the easiest and most cost-effective type of bracing you can put in is either put in a brand new wall or to potentially go in and strengthen a wall that's already there where you don't need to have an opening is where you maybe have a garage door or access to commercial space, you might go to a steel frame or other types of bracing systems that provides the strength and stiff if necessary but at the same time, allows

continued use of that area. but some combination of walls or frames or other tools that are in the tool kit that can bring the building up to the strength that's required in order to remove the vulnerability from the building so that when ground shaking comes, it in fact is a whole lot more resistant and less vulnerable. ideally, this story down here would be made as strong and stiff as the floors above. >> if i'm a property owner, what is the first thing i should do? >> the first thing you should do is find professional that can come in and help you evaluate your building in order to, 1, figure out that indeed it does need to be retro fitted and 2, give you some idea of what that retro fit might look like. and third, evaluation and design to help you determine the retro fit requirement.

>> well kelly, i can't thank you enough for being here today. thank you so much for your wealth of information on how we can take care of our soft story problem in san francisco. and you the viewer, if you have any questions, please feel free to visit our website >> good afternoon i'd like to call the tuesday, september 27, 2016, meeting of public utilities commission to order mr. secretary call roll. >> commissioner vice president moran commissioner caen commissioner courtney code enforcement is excused commissioners the minutes