>> madam secretary? >> roll call, commissioner willie adams. >> here. >> kimberlee brandon. er >> commissioner woo ho. >> item 2, approval of the minutes of the february 14, 2017 meeting. er >> all in favor, say aye. er >> aye. >> opposed? >> item 3, public comment on executive session. >> is there any public comment on executive session? hearing none, public comment is closed. >> executive session >> >> so moved. >> second. >> all in favor, say aye. >> aye. >> opposed? we are now in executive session.

er >> conference with legal counsel regarding existing litigation matter, and conference with legal counsel and real property negotiator. >> executive session. >> seconds. er >> all in favor, say aye. er >> oppose? ed madam secretary? >> pledge of allegiance. (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 the the use of cell phones and electronic devices are prohibited at this meeting, please be advised the chair may remove the order of the person any person of the ridging of,

pager or sound electronic device, please remember that a member of the public have up to three minutes unless the committee adopts the shooter period. >> is there any public items on any items not listed on the agenda? going once, going twice, public comment is closed. next item? >> 9a, executive director's report. >> good afternoon, president adams, vice-president brandon, i'm elaine, the port director, today i have one item to report. tomorrow, this port of san francisco is hosting a contracts opportunity open house which will be at pier 1 from 8:00 to 10:00 a.m., this event is to let business and trades know about upcoming contract opportunities with the port and with our development partners. the port's project managers

will be on hand to explain upcoming contracts in areas of construction, engineering architecture, real estate development, environment and communication services. this is an excellent networking event to establish partnerships and to learn more about navigating the city's bidding process, we will have the contracts monitoring division on hand. the event will feature 9 tables with representation from port communication, engineering, environmental, real estate x the city's contract monitoring division and we'll have partners for the city and the san francisco giants. each solicitation, upcoming solicitation will have a fact sheet that will include the synopsis of the scope of work, the schedule of the rfp, the lbe goal and is the port staff contact. upcoming contracts have a big dollar value, we have crane cove park construction valued at 20 million dollars t sea wall resiliency program valued at 30 million dollars, and of

course for city development, 200 million in infrastructure improvements, mission rock phase 1, 100 million in improvements, the sea wall resiliency project communications consultant, 1.7 million and other as need contracts. last year we distributed 44 million in contracts and this year, we expect 50 million in contracts. last year, if you don't include dredging, 65% of all contract dollars went to lbe businesses and we hope to do just as well this year, so please come tomorrow from 10 a.m., from 8-10 a.m. to pa*er 1 if this is an area of interest to you, i would like to thank willie adams and kimberly brandon for jienbacker joining us tomorrow and the commission's support. thank you, that concludes my report. >> is there any public comment on 9a, executive director's

report? seeing none, public comment is closed. >> item 9b, port commissioners' report. >> anyone have anything to say? commissioner brandon? >> i would like to thank director forbes and the staff for hosting the contract opportunities open house. i heard there was a huge response and i think it's a great way to get out the word of what opportunities are available at the port, so thank you. >> i also thank you and i want to report to my fellow commissioners and to the public and to director forbes what i've been up to since the last meeting, after our last port commission meet, i went up to sacramento on the 15th and 16th for the california maritime leadership symposium at the citizen hotel, we talked about transportation, real estate, that wednesday night, had dinner with senator pro tem o'donnell and state senator mendoza, the four most cities

in the world with the most congestion and they rank like this, los angeles is number one in the world with congestion, moscow is number 2, new york city is number 3 and san francisco is number 4. and on the 16th as the conference concluded, we went to a port commission meeting and had lunch, [inaudible] was also there with me from the port and brandon [inaudible] from maritime, and we talked about money and transportation, there's close to a billion dollars in transportation projects that stand at the state level that we have to go after as we all know that jerry brown only has two more years, but the state senate and si amiably, they're working on long after governor brown is going on, so we have to look forward to going after those dollars. the afternoon of the 16th after that, i flew up to see a*lts, i had a meeting with elected officers friday the 17th and

went to olympia washington to have a meeting with governor jay hence lee, governor jay and kate brown have met several times with mayor ed lee, they are also a sanctuary city, they had to deal with sea level rising, i've known the gofrn nor for many years and he sends his best to mayor lee, he said he'd like to stop by the port and say hi to attorney general bob ferguson, he took on the trump m*irns ration on the travel ban, he went up to the federal district cart up to washington state and came to the 9th district court and was victorious, he is still prepared if he has to go to the supreme court to defend that travel down up in washington state, i've known bob for a long time, i think he has a great career in politics if he

should chooses. and i flew back to san francisco on tuesday the 21, i had a special guest here, united states senator angus king of main, he's an independent, he and susan collins are the two u.s. senators for maine, senator king was a two term governor, he joined elaine and byron and myself and naublt and the labor council for breakfast, he worked with senator fine tien stein in the u.s. senate and myself and byron took the senator out to a tour of the bay, he was impressed with what the port is doing here, he works closely with the port in maine and is supportive of some of the issues we have, i think elaine gave a good explain nation of what we're trying to do on sea level rise, he's an environmentalist, i look forward to visiting with

senator king in washington dc, that night after the meet, i flew to cape town, south africa, my god daughter got married there on saturday but i landed friday morning, i met with the port of cape town, the port of cape town is a lot like our port, i met with the top officials, hopefully one day we can inform of a sister city and a city port with the port of cape town, they are now just starting to get into ferries, they're trying to build their cruise business, they roughly within their port get about 26 million visitors a year and they would like sometime to come out and see how we do. they're very impressed that what we have out here that you can walk down the pier down here and you can go to the explore y*um, you can go on the cruise ship, we have the park, and no waterfront is tied into the port at one time, it was, they have since sold their port

off to dubai world and they're investing more money in containers, l and g and other products, the water taxis and ferries and infrastructure really -- they really seem to like that. i got in this morning after a 40 hour flight from cape town and made it here today for my port commission meeting and then i talked to my lobbyist today on the phone on the way and in front of president trump right now is a wish list for governors, right now there seems to be at the top of the list that governor brown wants his high speed rail for california, not much for ports but the two states na are really pushing for ports are virginia and south carolina, senator lindbacker lindsay graham and senator scott are pushing for ports and south carolina, so i wanted to give my commissioners and everybody an update what i've been doing as the president, it's been pretty full on and i'm glad to

be here. thank you. >> i got tired just listening to your report. thank you for everything you've done. >> item from the consent calendar, item 10a, request approval of travel for a san francisco port commissioner to travel with port staff to fort lauderdale, florida for the sea trade cruise global conference on march 14-17, 2017, item 10b, request approval to issue a request for qualifications soliciting as needed public relations, communication, media s*ftses and related professional services. >> so moved. >> seconds. >> any public comment on 10a, resolution 1709 or resolution 1710, is there any public comment? seeing none, public comment is closed. colleagues, all in favor of resolution 1709 and 1710, say aye. >> aye.

>> opposed? resolution passed unanimously, 1709, 1710, next item, please. >> item 11a, information presentation regarding the proposed lease renewal with golden gate scenic steam ship corporation located at piers 43.5 in fisherman's waf. >> good afternoon, jay edwards, senior property manager division, i'm joined with demeet ri o moral, he's our m*irns creative analyst and also we'll have joe bigord, the vice-president of residents for the red and bhiet fleet presenting some background challenges from their existing site as well as their proposed improvements they hope to make at pier 43.5 and at fisherman's hater f, so as amy read, this is the first step towards a long term lease with red and white fleet at their current

site, pier 43.5 and they're currently on a month to month month lease and they have been spending a lot of energy and effort developing plans, hiring consultants, going through all the steps necessary to really get their project to a point where they can come up and make this presentation to you today and seeking your input and guidance on how we move forward. so, the goal of these improvements is to secure the long term lease and they're going to make approximately 4.6 million dollars of improvements into water and shore side floats, ramps, a new ticket pavilion and joe is going to describe that in more detail, and in exchange for that, they are requesting a long term lease that we enter into and that with a couple of goals in mind, they would like to -- this project, they believer and we believe will enhance the business efficiency of the operations, it will provide

improved aesthetics and circulation of the site and it will also hopefully increase the capacity in ridership and that has been growing rapidly here for red and white fleet, they've almost doubled the ridership in the last six years i believe, and now it's currently up to approximately 500 thousand passengers that are going out enjoying these excursion cruises, the bay and has really been a very well received -- they bought new vessels, they're investing in environmentally good stewardship in terms of some of the new vessels, joe is going to talk about that as well and all of these improvement ares going to flow back to the port in termser of increased percentage rent to us as we're paid on the gross sales and really help keep this long term tenant, they've been at this site for many, many years and it will keep their future here

tat port of san francisco and that's our goal too. as you see, i've also included the maritime excursion lease renewal policy which adopted in 2010, and that policy was developed specifically to help retain our maritime excursion operators and just to -- there's a lot in that policy, i'll give you a couple of highlights here on why we think this pertains and the relationship to red and bhiet's project in this policy, so there are numerous conditions and obligations and in terms of the conditions, the improvements can't be amortized within an existing term, that's one of the conditions and they're on a month to month lease, so clearly that couldn't happen. the use is to remain relatively consistent, this is primarily a maritime birth, this is what they do, this is their specialty and that's what their intent is to continue on with. they have -- must be a tenant

of good standing which they are, the improvements will be done at the tenant's expense which that's what red and bhiet is proposing and that the lease renewal must be reviewed and approved by the port commission and the board of supervisors as necessary. and then in terms of the obligations on the tenant, they must be an excursion operator, so they are, they must be -- the lease will be at market rent and that's what we're going to take on in our next step is negotiating the term sheet. the port will see participation rent on all sales. the tenant will disclose gross revenue and the port will have audit rights. the port will participate in proceeds from the sale, transfer or assignment of the lease. the tenant will comply with all ceqa provisions, and then finally the port has a right to renew -- not to renew the lease if we have proposed projects that would be in conflict with this and this site as you may

recall at one point was being considered by the national parks service for the alcatraz embark kaition landing and we have now through a number of efforts refocused and are moving forward on pier 31 and a half, so this site is free to move forward with this long term lease and with that background, i'll have joe come up and provide his project overview. >> good afternoon and thank you for the opportunity to address you with some information on our project. i'm going to start with a little background on the red and white fleet, i manl that many of you are familiar with who we are but i'm not sure you all know that our roots go back to 1892 when thomas crowly first rode out, his grandson, thomas usher purchased the company in 1997 and throughout

that time, it's been a san francisco family owned and operated company and we continue to be that today. we're in the sightseeing business as jay mentioned, i believe you see a slide that shows some of our history in the upper left corner, this is our original ticket booth, pier at pier 43.5 where we are today, you see the cost of bay cruise with one dollars, we're charging a little more today, it gives you context of our site and the ticket booth, you could see that ticket booth did evolve, but stayed the same from sometime in the 1950's to the 1960's when the picture in the lower right hand corner shows the francis can and an older stage and the ticket booth with the iconic red and white fleet signage there which

we plan to continue. today we have a ticket booth located there, you can see how it came in about 1980 on a forklift, it has three windows, this is the same ticket booth with operate today, we've seen considerable bro*et and ridership and revenue and we're really stretching our abilities to continue to offer an efficient and good service with the current infrastruck xhur so we like to incorporate infrastructure improvements with our lease renewal. a little bit about who we are, we're in the business of selling memories, our product is really of the experience, our passengers have on board are boats and they get to take pictures of the garden gate bridge and lots of scenery but what they always remember and what they tell us they enjoy most is our employees. we value our employees greatly,

that's who we are, and you can see the diversity of our staff. we promote people from within, up there is a picture of one of our ticket agents who is now a captain of our fleet, we're unionized with ibu and our ticket agents are unionized, all of our employees get 100% of their health care premium paid for by the company which is quite generous in today's climb massachusetts -- climate, we employ veteran and is we're committed to our folks, they are who we are, that's what we sell. we also are committed to the environment and have been throughout our tenure as operators in the bay, we're making our living off the bay, we want to make sure that is a safe place. in the report, there's many of the initiatives that we have

done throughout the years, and this slide shows a new vessel that we signed to have billed just a few weeks ago, it will be delivered in may of 2018, this is very forward-leaning in its technology, it will be the first vessel this size in the united states to be lithium ion plug-in hydrogen -- excuse me, this one is not hydrogen, this is more of a plug-in prius type hybrid vessel and some of the vendors there are shown oup there. this will be built in bellingham washington, a u.s. builder with u.s. parts, and we're expecting to see a 20% fuel efficiency with this. there's other -- this is phase 1, we'd like the get our fleet starting with this vessel to full electric operation. this puts us in context of the location of our operation,

we're right in the heart of fisherman's wharf, these pictures were sited where our booth ares today, you can see the san franciscan along the waterfront where the pier 43 promenade project was complete in 2013, you can see the ticket booth there, and this is a top down view of what we're intending to do, i'll speak to the water side first which is the area in blue. the area in light blue shows our current water side lease area and the white infrastructure there, those are our current float, there's two floats and two gang ways, that creates three births, we're proposing to move our eastern float to the east about 40 feet, that will remain with two floats but four girthbacker births, this will increase our capacity, serve our guests, great access for the public to get out on the water and also will be -- this is a functional site for the water emergency

transit so it serves as expanding the port's ability in order to respond to emergencies as well. on the short side, the area in light orange is our current -- you'll have to connect the light orange with the gray area to the right of the area, that's our current lease line, you can see the gray aware abut it is san franciscan, there's not really a clear walkway providing access for the pier 43 promenade, with the port staff input, we thought that if we gave up some of the shore side area and moved it to west side, we could extend our queuing to better reflect its current usage, disburse our crowds during peak time improving access there, and it shows the new ticket pavilion as well which is slightly larger than our current footprint but not significantly so. we are at about 430 square feet

and this ticket booth was 580. this next slide shows some of the shore side improvements we plan to conduct, we would like to enhance the queuing for peak summertime on the weekends in july and august, we have large crowds, we're doing 18 departures a day in the summertime, and this arrangement would allow us to basically what's being provided today is the queuing only on the eastern side of the ticket booth, if we split that, we can sort of shrink the congestion and disburse the crowd somewhat. we're looking at doing surface treatment to make our area unique, it will continue to be public access. this image kind of shows the expanded view at peak times but all the equipment that's shown for queuing and barriers are movable and would be able to be

retracted during winner time and off-peak times. i think that covers it. there's a proposal there in the lower corn e we'd also like to provide some shade, we can provide additional information on that request that we're proposing some limited umbrellas along the perimeter of our lease. >> this is a good depiction of the queuing status and in the wintertime, so basically november through march, we're in a more -- much smaller ridership profile so we would probably just use the eastern boarding area, we can board out of gates -- both gates that way, there's an ordinary queuing line for that, we can -- as ridership increase, we can move to the west side and do do* simultaneous boarding.

part of the improvement includes the sea wall or excuse me, that's the wrong term, it's really the handrail, the access area for the public to make improvements to the railway, you can see in some of the images, there's chain link fence and an old timber rail we'd like the update to both reflect the improvements to our infrastructure in the way the building and also continue with the improvement nas the port has made at the promenade. this next image gives you a sense of the massing change of the building itself, it is slightly larger, but if you can see, we're proposing removing part of the -- there's a disused non-accessible platform in the tripod, just above the build ining the upper image, you can see a view blockage, that would be remove and had

the building essentially stays the same size, same position, the signage remains, and part of the height that we're include lg in the building is to contain the ac equipment which is currently exposed so this would improve views from both the san frin scan and the [inaudible] which is the neighbor to the south of us. here's inspiration for the design of the ticket booth, this is the standard oil gas station located at jefferson and taylor some years ago, and you'll see in the design of the building as i bring it up a little closer we're harken back to that art deco time, this is consistent both with the wharf's history as well as red and white fleet's history along the area. that concludes my presentation and we're available for questions. >> great, thank you, joe, i

would also like to let the commission know that tom usher is here, the owner of red and white sitting over there with his red and bhiet shirt and his red socks. so, thank you, joe, for the presentation, the next steps are really two-fold, one, red and white is going through all the regulatory approvals, they're listed here in the report and they've been actively and diligently pursuing those with some very great competent help from ellen jonk and cle and mk think, so they've got a good team and we had hoped to also in the -- pursuing those regulatory approvals working on a term sheet and getting all the business terms here back to the commission and present our term sheet and finalize the project scope and of course based on your feedback today, so that concludes our presentation. thank you. >> okay, is there any public comment, tom, why don't you

come on up? with tom, i got a chance to see tom up in sacramento in the leadership symposium at the citizen hotel, tom gave a presentation, one of the guys was on the panel, so tom, welcome. >> thank you, i just wanted to thank the port staff at this stage, i'll thank the port commissioners after we get a signed agreement, the port staff has been very helpful and cooperative and it's very frustrating for an operator or tenant to deal with the port staff because they're stretched very thin, we've been very pleased with the support they've given us so i'm available to answer any other questions or anything else that we can do but we basically want to improve our facilities so our workforce can be more efficient so that the public still has access to the port and access to the water. >> is there any other public

comment? anyone else on 11a? seeing none, public comment is closed. tonl, why don't you stay there, commissioners might have -- commissioner woo ho. >> thank you, i don't have a lot of questions but i guess i just want the know the direction of the term sheet because this is now having going from month to month to a 20 year lease and what are we -- are we -- the base rent is going to be reconsidered or is -- is it basically fixing this for 20 years or are there other terms that you think are going to be changed? >> so, right now, red and white pays a base rent and percentage rent, so we have recently through -- i exercised and instituted an increase in the percentage rent so that has been brought up to be consistent with our other maritime operators, and we are reviewing the base rent, what that appropriate level should

be, we've had some preliminary discussions but, yes, everything will be looked at in terms of market value and market rent. >> okay, so then my question now, this is very helpful to have the informational background but it seems if the next step is to bring us the terms and approve it, i might suggest that we want an informational presentation on the terms so we can consider them before we finalize. >> if that's the way you wish us to do that, we'd be happy to did that. >> -- do that. >> thank you. >> i think i agree because it's kind of hard to understand what you're proposing without the terms, and understanding how long it's going the take to amortize the 4.6 million and what exactly we're getting in return for that. >> agreed. today's item was really an informational on the project itself and to seek any feedback from the commissioners about the proj, and to seek any feedback you all have about deploying the maritime policy on this lease, staff is recommended that we deploy the

maritime policy on the lease, and other than that, we will come back with a full report and recommendation for approval of the lease and it sounds like the commission referencebacker preference is an info item and followed by an action item which is not a problem at all. >> right, and i think the policy because what it says is sort of in line with what you just said, the policy said we should be treating all of our maritime clients on this basis, so that get tos the market value, right? >> that's correct. >> okay. but i appreciate and i don't want the take away the thund e we appreciate that red and white is going to improve the facility and make it a better experience for all those who are coming to the waterfront, so that is the purpose i think of today is to appreciate that and ix e i guess we should say we appreciate that >> >> yes, we do. >> well, i think it's incredible that you have in your hands a half a million people a year who go and board your ships and your staff tours

them around the beautiful bay of san francisco, so thank you for providing that service and helping to contribute to san francisco being one of the most important tourist destination ins the united states, and i also just want to commend you for giving your employees full health benefits in this day and age, i suspect that's not something you agreed with us or anybody else, that's something that you do as a matter of your business practice and i think it's incredibly important to acknowledge companies that are willing to do that and provide that. and then i also just want the see the terms as they get negotiated. the other thing i would be interested in seeing is what the cost is to the port over the 20 years, what we're expecting that we're going to need to contribute, so for instance, if we're getting an estimate of how much we're

going to be compensated for the use of the port property it will also be important for me to have an idea of what we are budgeting for expenditures to maintain it or where that is in the negotiation. and then i guess i have one more question for you. you've been operating for -- since 1980, you're looking at operating for another 20 years, why three births, why four boats? is that the the sweet spot, do you think about doing more, is it that there's competition within the bay? is that the 20 year plan to continue with the three boats or do you look at the opportunity as a partner of ours to do -- to expand? >> yes, so we're currently at

two berths and three vessel, we have three vessel ins the fleet and we're buying a fifth vessel, and we're keeping the number of floats there, that is the least amount of fill that we can do and we get 25% more, we get a fourth berth in there, so there is increased ridership, the arrangement allows for simultaneous boarding and disembarking which we don't have today, so there is -- it's designed to accommodate the growth we've seen over the last 40 years but most recently even the last six years, we've doubled our ridership but it looks further out, so it's a 20 year design and what was the other feature i wanted to mention? i thinkbacker i can't think of it, but we are looking to expand -- i know what i wanted to say was, you mentioned 1980,

we've been operating at the same facility since the 1930's. >> oh my gosh. >> we're looking to -- the ticket booth is the same as 1980, we're not talking about -- we're really doing business out of a tent, we'd like to do it out of something nicer, we're using a facility that's been there for a very long time, we'd like to upgrade it and expand it and that expansion does anticipate considerable growth from where we we are today. >> well, the 100 year anniversary will be the timeframe of [inaudible]. >> [inaudible]. >> that's great. >> thank you so much for the presentation, and thank you for the diversity and your staff x the generosity you have to your staff. i think it's great that you guys have been such a great

long term tenant and have been great partners with the port for so long, and i look forward to the terms of this deal. thank you. >> commissioner katz? >> i concur with my colleagues' comments and i also want the thank you for the movement to the hybrid vehicle and cleaner technology, i think that really sets an example for others on the water and something we've tried to do with our shore power, and also along the waterfront is really reducing the emissions to the environment, so i appreciate those efforts as well, and the terms of the design that you're proposing, i like the blend of the old and the new and modernizing the booth, i think it's a nice way of indicate toing the public what the history here as well as that we've moved into the modern age and i look forward to seeing the lease terms when they come back to us, thank you for all you do the visit our visitors on the bay: i want to thank you for the presentation and tom, i

want to thank you for being progressive with the hydrogen and where you want to go in the faou khu, i liked the presentation up in sacramento in the the sim poem yuz, you think out of the box and we appreciate, once again, i want to say thank you. >> thank you, commissioners. >> item 12a requests authorization to award construction contract number 2784, pier 23 roof repair project, to pioneer contract toser inc. in the amount of 2 million 269 thousand 800 dollars and authorization for a contract contingency fund of 10% of the contract amount for unanticipated contingencies for a total authorization not to exceed 2 million 496 thousand 780 dollars. >> good afternoon, president adam, fellow commissioners and director forbes, my name is

wendy proctor, i'm senior architect here at the port of san francisco. i'm here to request authorization to award the pier 23 roof repair project, construction contract 2784, to pioneer contractors inc., the lowest responsive and responsible bidder for the amount of 2 million 26 thousand 800 dollars and authorize the con stin generals ski fund of 10% of the contract amount of 226 thousand 890 tlaursbacker dollars for a total authorization not to exceed 2 million 496 thousand and 780 dollars. basically what amy said. so, this slide shows the location of pier 23, it's circled and indicated with the air owe, it's worth noting it's next to pier 19 which is the

adjacent sister pier because it has similar characteristics and structural composition which was reproof in 2010 using port revenue bonds, so this would be a continuation of similar type of work. pioneer contractors is a local business enterprise contractor locate ined the bayview district of san francisco. pioneer's bid includes 22.77lbe subcontractor participation which meets the requirements of the admin code, chapter 14b. through this contract, pioneer will also be committing to meet the requirements for the city's local hiring processes for construction. the project supports port strategic plan strategies of renewal by rehabilitating an important historic resource in the embarcadero historic district. it promotes liability bying living wage jobs and providing opportunity for local business

enterprises to meet local hire requirements in construction prints and also sustainability because the project will use best patsies during construction. this project will provide a new roof for pier 23, it will restore the windows and it will also be an important part of maintaining our port resources. that concludes my presentation on pier 23, if anyone has any questions? >> so moved. er >> second. >> is there any public comment on 12a? is there any public comment on 12a? seeing none, public comment is closed. commissioner katz? >> thank you for the presentation, both the brevity and also really appreciate the work that was done to ensure that we exceeded our lbe hiring goals, the numbers are really impressive and really demonstrate what we've been talking about here so i want to thank you for that, and a quick

question on the goals during their nesting season, given we're having such a rainy season, will that change the timeframe in which the goals might be nesting or will they come in while it's still pretty -- do they only come when it gets dry or are they a time certain? >> they're very time certain, they basically go from april through september and they start getting very territorial in march, so it's we've been doing on many of the roof project iss to get the contractor on board prior to the start of the nesting season so they can disrupt the territory. each pier i found over the ten years i've been here has a very different demographic, some are more popular than others. this particular one is while we're out there investigating, you can get a sense of how many

birds love our the site, and this particular one is not as well loved as say pier 29 .5, very well loved, but this one is not as much. >> thanks very much. >> commissioner kounalakis. >> so, i'm new to looking at these, so my question to you is, when you have an authorization to go up to 3.74 million for a construction project, i think that's what i'm understanding from the report. >> the not to exceed amount, which is -- you might be looking at -- >> what is the not to exceed amount? >> the total authorization not to exceed would be 2 million 496 thousand 780 dollars. >> that's the bid that came in. er >> the contract amount is --

the contract amount is the bidding amount which is 2 million 269. >> before you went to bid. >> we had a budget. >> yes. >> this came in under our budget. >> right. >> that's what i see here, right, is that the budget was 3.74. >> right. >> and it goes out to bid, it comes back at roughly 2.5. >> yes. >> which is substantially less. my question for you is how confident are you since the construction budget, the million dollars more than the bid amount, that they're going to be able to do this for the amount that they say and we're not going to run into extensions and cost overruns and other issues? >> i am confident on this one because if we were to compare -- a lot of people are wanting to compare this to pier 31 because pier 31 has just happened.

pier 31 is not a model project, it is an anomaly that the port, it's the first time the port has made a decision to put that much investment into a pier that was deferred maintenance since world war ii. this pier that pier 23 was built and pier 31 is exactly -- well, it's 99 years old, it was built in 1918, sorry, yes. so, this pier was built in 1930's and it was last roofed in the 1970's and it was occupied by the foreign trade zone up until -- it's in the report. i want to say 2007 i think. so, it was lived in which is really important, so it

haddock pants, the occupants are going to be watching the maintenance. another huge difference that i plainbacker explained to people frequently is that all the piers are a little different from each other, like pier 33 and pier 31 are like sister piers, they're completely made of wood, the columns, the beams, the trusses, the deck, all made out of wood and -- >> you don't know what you're going the find once you get in there. >> the wood is going tor more extensive damage. >> the sister piers were same structural damage and it was steel with steel trusses as the primary structural support and it has wood decking and when you walk inside, you can see there's very little staining which is one of the indications when you have extensive water damage. >> so, i understand your basis for thinking it's not likely to go over this or the 10%

contingency, but why very briefly would the construction budget be significantly more than what the ultimate bid was, the winning bid was? >> we base the construction -- when we designed -- we do the construction drawings and we send it to a professional cost estimator for cost estimating so we base it on their -- that's the budget, we get the cost estimate back and we say, do we have that money to fund it, and -- >> i understand the process, i'm saying, is 30, 35 percent typical in terms of what the estimator comes up with versus what the bid ends up as? >> part of it is also contractors n the bid summary which i believe is attached at the end, you can see the range, and the crack tersest or drk contractors are across the board, this particular

contractor is a local business and they've done a great number of projects with the port, so they have that to their advantage, they're local, they don't have to drive across the bridge, that's time and resources, that makes that easier. they are very seasoned roofing contractor and general contractor, they roofed pier 27 cruise terminal, they roofed pier 21, they roofed pier 45, they've done some other project ins the city, so they have a good reputation, so i'm confident that they are not -- >> i can make a couple of comments about this. our projects come in under an over engineers estimate, they go in both directions, the more bidders we get t more likely we are to come in under engineers estimate and here you can see that while this is clearly the lowest bidder, the second

lowest bidder is approximate or it's a cum hundred thousand dollars more, so as you look at this five bidder portfolio, it wouldn't bring a lot of red flags because bidder number 2 is close to bidder number 1 and while there is a range, they are clustered around one another. >> sure. okay. that's it. >> commissioner brandon? >> thank you for your presentation and i support this item. >> thank you very much. >> commissioner woo ho? >> i think we've gone through enough discussion here, i think it's fairly straight forward and i think the answer that you just gave that this crack tor has worked with us a lot already and has a good reputation i think then gives us confidence that this bid is a good bid and they will perform and the quality will be up to expectation, so i think that's probably the important part and i guess the questions i think that commissioner kounalakis raised sfarsz how we estimate, we're just check tog

see that we don't see any problems down the road but i think you answer ted question that this is a reliable contractor that we've worked with before. er >> thank you. >> colleagues, if there's no more discussion, all in favor of resolution number 1711, say aye. >> aye. >> opposed? madam secretary, next item. >> item 12b, request for authorization to modify construction contract number 2762r, pier 31 roof and structural repair project to increase the contract amount and extend the substantial completion date. >> thank you, good afternoon again, president adam, fellow commissioners and director fosh poses, wendy problem tor, i'm here to request authorization to -- sorry. i provided a status update -- >> 17. >> did i say 16? >> no, but we aren't in 2017.

>> on december 13, 2016, last year, i provided a status update to the unforeseen critical repairs which required additional time and funds to complete the pier 31 roof and structural repair project construction contract 2762r. port staff has worked closely with the contractor regarding the additional work and negotiations are complete. today i return to you to request authorization for a contract modification to issue a contract change order to complete the contract -- to increase the contract amount by 286 thousand 874 dollars and the contract duration for substantial completion by an additional 87 days. the tables here show the

amounts, i can go over those or i can point out the table. the proposed contract change order is necessary to account for delays and additional costs due to the unforeseen conditions beyond the crack -- contractor's control. pier 31 is indicated here with the arrow and the tables here show the original amount, the contingency amount t not to exceed amount, the amount that we went in excess of that and then the original duration, the contingency duration and the additional days needed beyond that. staff worked diligently with the contractor to manage the additional work and now we are completing -- the project is substantially complete, it will be final completion on march

19th. the project supports port strategic plan strategies, the strategy renewal by rehabilitating an important historic resource in the embarcadero historic district. sustainability, the project included best practices for construction, so this shows a little bit of before and after and hopefully you can get a sense of how long the deferred maintenance was and what an improvement this has made for this important resource. this also showing a little bit before and after, so people will be occupying this pier now after it was red tagged in 2009, so this supports economic vitality, at this site, the port will develop the long term lease with the national park service supporting the alcatraz tour operations and will provide for leasing in the shed to steepen the port's revenue base. the port is also negotiating

with the department of elections, will be occupying the shed and ongoing public parking in pier 29.5 which will now be dry, and then lastly, livability, this project has promoted living wage jobs and provided opportunity for local business enterprises to meet local hire requirements for construction projects. the lbe contracting orients for the base project was originally at the bid time was 20%t contractor came in for the base bid with actual participation of 32.77, and with the increase of work with this change order, we are now at 37.67% of lbe participation. and it's worth noting the prime contractor and one sub crack tor that was in the additive alternate bid which is not

counted twaords twa*dseseder the lbe participation are also lbe certified contractor and is they're locate ined the bayview district. the prime contractor located in bayview self-performed 53% of the local -- of the total completed contract work. that concludes my presentation, if you have any questions, i'm here to answer. >> so moved. >> second. >> is there any public comment on 12b, any public comment on 12b? seeing none, public comment is closed. commissioner woo ho? >> thank you for this report. i guess number one, i'm pleased to see the lbe percentage has been exceeded, so dually noted for the commission which we always encourage that. i guess just a couple of questions given that the other one was much more straight forward, does the increase and the delay -- you mentioned that in the staff report that

there's more deterioration, so when they started to do the work, did they find more work that had to be done to fix the issue and then, secondly, can you explain what unforeseen conditions in termser of the delay factor? >> i'm going to go back to this slide that shows the -- >> is it just basically the actual deterioration or is it also other unforeseen conditions, i'm trying to understand? >> yeah, unfortunately commissioner woo ho was not here for the updates which has a lot of information, kind of embellishing everything, but in general, many of the unforeseen conditions were related to the dry route. >> that's all you need to answer, and i also wondered whether weather has also been an issue? >> this was deferred maintenance since world war ii, so water has been coming into this roof. >> but just the weather, it

being difficult to work under these conditions in the last two months, we've experienced bad weather. >> it was primarily to finding more structural members that had to be replaced, a lot of it had to be special ordered, it's special sizes because it's historic, the terms that you buy off the shelf today don't match historical materials. >> we have used robot construction in other project and is have found them sufficient? >> it was not an issue with the contractor at all, it was an issue with a lot more structural damage than we had anticipated. >> okay. that's all my questions. >> commissioner katz? >> i think it's pretty straightforward. just in terms of increased costs, did that come out as change orders or general contract modification, i couldn't remember? >> the way it works is we have the original contract amount, we have our authorized 10%, with when we exceed that 10%,

then we have the ability to negotiate beyond that 10% and that's what this is which is the amount above and beyond the 10% contingency, it is issued as the final change order. >> now it all makes sense to me and i know we went through it a while back. >> when the roof ares redone, do we do anything -- i know we have a history i guess of deferred maintenance as this demonstrated, when we put on the new roofs, are there new materials that will potentially give us a longer life span or do we address some of the issues that caused some of the deterioration when we bid these out, or do we have to stick to some sort of historic -- >> we use a standard sheet for the flat roofs, we use a standard sheet product which is at a 20 year warrantee and usually you can go a little bit beyond that. >> is there anything that has a longer warrantee or is that about as much? >> you can still get a 30 year

warrantee, that would probably be more expensive. >> okay. thank you. >> if i may say one thing about pier 31 is it was last reproof 70 years ago, so this is an example of the port not roofing timely and letting the roof leak for sometime which obviously caused much more structural damage and when i arrived at the port, we were considering demolishing the building so we didn't have a plan of finance for it for sometime and we thought we wouldn't be able to repair it sh we let it go for far, far too long. in our capital project review and when we bring you the budget, we often look at improvements that if we delay will cause us more money down the road and this is a perfect example of delay costing more money down the road but i just wanted to put that on the record, that it's been 70 years since we've reproof this facility. >> and i would that i don't think we have any other that is

are quite that long. >> commissioner brandon? >> thank you for the presentation and based on this, it seems like we're lucky that we're only 300 thousand order contingency. >> yes, thank you very much. >> thank you. >> commissioner kounalakis? >> it looks good, yeah. >> great. >> thank you for the presentation, colleagues, since there's no more comments, all in favor of resolution number 17-12, say aye. >> aye. >> opposed? resolution 17-12 passed ewe nan nous. >> our next item. >> item 13, new business. >> colliding, is there anything that you would like on the forward calendar? okay, i just wanted to give a shout-out to s gov tver, thank you for being in the house and thank you. >> i move to reconvene in closed session. >> second. >> all in favor, say aye. >> aye. >> oppose? ed weexecutive

session. ( >> i move to reconvene in open session. >> second. >> all in favor, say aye. >> aye. >> i move to disclose that in closed session, the commission unanimously approved the proposed terms of the tolling and interim operating agreement between the port and mriek ka engineering inc. as described in 4a1a, towing agreement will allow the shipyard to remain operating for the next 90 days bhiel the parties work on an operating plan for the shipyard while the litigation proceeds. the commission directed the executive director and port staff to work with the city attorney's office to prepare the towing agreement for the port and plague gas sixty and not to disclose anything else discussed in closed session. >> second. >> all in favor, say aye. >> aye. >> opposed? >> i move to adjourn. >> second. >> all in favor, say aye. er >> aye. >> opposed?

it is 8 -- no, 13 after 5:00, thank you. ( meeting is adjourne - >> san francisco is known worldwide for its atmospheric waterfront where spectacular views are by piers and sight and sounds are xhanl changing we come to the here for exercise relax ball games

entertainment, recreation market, exhilaration a wide variety of contributions easily enjoyed look up the bay the waterfront is boosting for activities boosting over 25 visitors every year the port of san francisco manages 7 may have million dollars of waterfront from hyde street and fisherman's wharf to the cargo terminals and name shoreline the architecture like pier 70 and the ferry building is here for the embarcadero and a national treasure the port also supports 10 different maritime industries alongside with the recreational attractions making san francisco

one of the most viable working waterfronts in the world but did you think that our waterfront faces serious challenges if earthquake to damage the seawall and the embarcadero roadway rising seawalls will cause flooding at high tides and major repairs to a safe many of the piers the port is at a critically turnl point time to plan for the future of san francisco's waterfront this year the port is updating it's marts plan the plan working group to invite a wide variety of poichdz from the city and bayview and other advisory teams to share their expertise if

intense and maritime operations the waterfront land use plan has guided the use and development of the lanes for the last 20 years major physical changes take place along the waterfront and now is the time to update the waterfront plan to continue improvements that will keep our waterfront vibrate, public and resilient the biggest challenges facing the waterfront are out the site an aging seawall along the embarcadero roadway and seawalls that will rise by 21 hundred to provide and productivity of tides seawall is built over weak soils and mud the next earthquake will cause it to settle several feet without the urgent repairs that will damage the promenade and other things we've been fortunate over the

last hundred years less than one foot of seawall over the next hundred years scientists say we'll have 6 feet of seawall rise imagine the pier 30/32 will be floated, the embarcadero will be flooded our transportation system is fog to be heavy impacts unfortunately, the port didn't have the financial resources to repair all the deteriorating piers let alone the adaptations for sea level rise. >> it is clear that the port can't pay for the seawall reinforcement or deal with the sea level rise on its own needs to raise money to take care of the properties at take care of the maintenance on the properties no way absent anti funding the issues of sea level rise or the schematic conditions

of seawall can be development. >> as studies talk about the seawall challenges the working group is look at the issues please come share our ideas about recreation, pier activities, shoreline habitat, historic preservation and transportation issues and viral protection. >> we know this planning process will not have one question and one answer we need the diversity of the opinions how people feel about san francisco waterfront and want to hear all the opinions. >> the challenges call for big decisions now is the time to explore now and creative ideas to protect and preserve san francisco waterfront. >> now is the time to get involved to help to shape the future of our waterfront. >> we need the debate please come forward and engage in the

process. >> this is your waterfront and this is your opportunity to get involved be part of solution help san francisco create the waterfront we want for the future. >> this is really to dream big and i think about what our waterfront looked like for all san franciscans today and generations to come. >> get involved with the planning process that will set the fraction for what is coming at the port. >> find for in upgrading dates on the ports website. >> (ship blowing horn in distances)

>> the meeting is called to order at 2:06 pm. the small business commission thanks sfgov tv staff for televising the meeting. which can be viewed on sfgov tv to channel 78 or live stream@sfgovtv.org. sfgov tv are we ready to go? okay. all right. members of the public please, take this opportunity to sounds your phones and other electronic devices. public comment is limited to 3 min. per speaker and us otherwise established by

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