>> roll call. >> commissioner president kimberly brandon. >> here. >> commissioner vice president willie adams. >> here. >> commissioner doreen woo ho. >> here. >> item two, approval of the minutes for january 30 and february 13, 2018. >> so moved. >> second. >> an any public comment on the minutes? all in favor? aye. >> the minutes from january 30 and february 13 have been approved. >> public comment on executive session.

>> no public comment. >> okay. executive session. >> can we have a motion? >> so moved. >> a second. >> an all in favor? aye. >> okay. legal counsel regarding existing litigation matter around proposed settlement. and conference regarding >> and not to disclose anything else discussed in closed session. >> is there a second? >> second. >> all in favor? okay. the pledge of allegiance. i pledge allegiance to 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 that the ringing of cell phones and pageers and devices are prohibited at this meets. the chairman will order the removal of any person responsible for the ringing of or use of cell phone, pager or other similar sound producing electronic device. be advised that a member of the public has up to three minutes to make pertinent public comment on each agenda item unless the commissioner adopts a shorter period on any item. item 8, on items not listed on the agenda. >> is there any public comment on items not listed on the agenda? seeing none. >> item 9a, executive director's report.

awe thank you. good afternoon, president brandon, vice president adam, members of the commission, members of the public and port staff. i'm elaine forbes the executive director. today is not -- well, not exactly today, but this month marks the two-year anniversary of our adoption of the strategic plan, and i have the great pleasure of letting you know how we have done in the past. you are advancing the goals of the plan, highlighting some challenges that ewith see on the horizon, and going over changes that we're proposing to the plan. the strategic plan is the operating guide to achieving your, the port commission's, vision for a vibrant and diverse waterfront. i do want to say the photo on the cover of the strategic plan does reflect much of what port

staff do, while 24 million people visit the port every year, and there is so much maritime and commercial activities, our port staff really is doing the plumbing underneath the piers, working on the condition of our facilities, and making what is so enjoyable and vibrant on top a wonderful experience for the public. and we hope that the hard work that we do with our 250ftes in some ways goes unseen. the strategic plan really is a complementary set of goals and objectives to accomplish our long-term plan goals and our adopted policies. the big is the wider front land use plan, and today you will hear an update from our staff accompanied with stakeholders that have been working to update the 20-year-old waterfront land

use plan. this is a comprehensive vision for how portlands are used. and we have come such a long way in executing that plan and are looking now to the next set of improvement improvements going to bring the report into the resilient future. the 10-year capital plan is an expression of the overall needs and values in terms of what we're going to spend our money and other sources on. it also catalogs all the various needs that we have that we do not have purses to pay for. i believe the total now is about $1.5 billion in capital need. this five-year strategic plan takes your goals and objectives and sets our focus on what we're going to accomplish in the five-year term to achieve the many results in advancing the plans and policies. and with the reports projects, leases, and finances. and it communicates a shared

policy platform for the public, expressing your values and for me and my staff, and it establishes priority tasks and projects for the port to pursue in the five-year term. it includes a vision and mission for the report which you're familiar with. it's expressed in seven goals, and several objectives for each goal. these goals together, the seven values, guide the port work to rehabilitate the waterfront, integrate with the city, and deliver on the adopted policies and long-term plans and policies that i have described. there are four to seven keyword efforts to achieve each goal coming under the objective. the first is renewal. and i'll just read to you the value that renewal expresses. enhance the balance and supports maritime and economic purpose, rich history, and changing relationship with the city so

the waterfront continues to be a treasured destination. in the past year, we've made major efforts for this goal. you will hear today the completed part two analysis in the waterfront land use plan and update effort and both parts one and two are complete. and we will have 150 recommendations to consider to bring us into the next era of a positive and pry vooi brant port. -- of a positive and vibrant port including leasing for resistance, us is tansability. and for mission rock and pier 70 we have had two major projects approved on the heels of two decades of effort. it is 12 years for mission rock and 20 for pier 70. and this signals a transformation of the neighborhood visions and mixed

income neighborhoods rich with public benefit. in our historic pier 70 project, we have seen private equity and investment go into renew and restore 20 port-owned structures. these are very historically significant. we've also completed the first phase of the park and go by the side and is graded and improved and ready for the construction of the park. this will be a jewel in the blue-greenway and an important piece of the pier 70 improvements. we completed the pier 31 roof and structural remare project. this may seem like a smaller effort, but is a very important work and where we took a pier slated for removal based on condition and saw its value in the embarcadero historic district. and now it is ready for redevelopment and repurpose. we have also initiated work on

the request for interest process and this will realry look to the 14 imimproved or underimproved port facilities in the district. we are doing maximum district to invite potential users to tell us what kind of public serving use cans we see in pier restoration projects. there may be ideas that we don't have and we need to test market-based concepts and as we rehabilitate our remaining that have not been improved, we maximize the public's use in the piers. we do have a major risk to the renewal objective for the maritime and economic purpose and this is the shipyard at pier 70. and commissioners and public, you have been aware of what's been going on at the shipyard since its closure in may 2017 after 150 years of continuous operation. we are looking to put out a

second r.f.p. and attract an operator to bring back those important maritime jobs and see that shipyard renewed. but i can't discuss renewal without points out the risk of the shipyard operation. the next goal is engagement. and the specific value is representing to promote the richness the port has to offer through education, marketing and maintaining strong relationships with the port user rs and stake holders. and in the time that i have been serving as executive, i have learned that we accomplish almost everything we do at the port not alone, but through our partners. and we have been working to put formal initiatives to outreach to the public and to engage the public more. in one area we had our first contract open house which brought a huge swath of

potential bidders out to the port to see what kinds of businesses opportunities we have and we're putting on a second and we will annually put on a contracts open house thursday, march 18, and it is important to commission and port staff to get word out about opportunities we have at the port and to engage our surrounding businesses in port work. we adopted the pilot fish sale policy which i understand is bringing more public to the wharf to purchase fish. we have had lots of social media efforts including the king tide campaign and the earthquake safety program is a new way to engage san francisco residents about the port organization but also the major risks we have in our seawall which is very vulnerable to earthquake damage.

the value is to ensure port improvements involve in advances in the environment, social equity, and quality of life for san francisco san francisco residents and visitor, and i would emphasize in this goal about social equity and quality of life because we have also a second environmental goal. and here we have done efforts to increase local business participation in our contracts, but also in major leases. i would like to point out the work that we have done with tasha automotive and 50% of hires from district 10 and ferry landing and advancing a key project to bring improvements to that neighborhood and needed ferry landing. and we also have partnered with the city on the homelessness issue. we provided shelter at pier 80 a couple of years ago. but we also were able to move into business opportunity when it emerged. clear encampments in a humane way, and opened a navigation

sent cher opened in may of 2017 -- the center which opened in may of 2017 and 64 formerly homeless people are now sheltered in the navigation center. in the area of resilience this, value here is to lead the city's nefrt addressing threats from the earthquake and -- the city's effort through the seawall and other port property through earthquakes and other damage. i don't think i can overstate the level of efforts and results we have had in this area of our plan. we've had really incredible results bringing the city together, understanding the risk. we completed the vulnerability study and have the executive steering committee up and running. we have our consultant teams up and running and achieve the federal interest determination from the army corps of engineers which is key to the project's long-term success and earned a placement on the november 2018 ballot. this project has been pole vaulted from an idea of a

seawall that needed repair to a real program that is going to see improvements to the seawall for decades to come. 20 years specifically is the program we're working on. we've also been involved in the sea level rise adaptation plan, and our chief operating officer has co-chaired this effort to really lead the city's ste level rise response efforts. and as part of that, there is a vulnerability analysis and a database of port facilities to support the sea level rise adaptation plan. we're leading on the seawall project with the help of the city family and playing a major role in the sea level rise conversation. in the areas of sustainability, and the value here is to limit climate change and employ strong environmental stewardship. stewardship, 500 plus tenants

and very, very diverse operations. we have environmental division that works very hard to go above and beyond and get the lightest touch and kindest use to the environment from all of our tenants and ourselves. as part of the effort, and part of that is putting planning and environment together and putting planning and environment together, and this is really to support cross training, collaboration, and greater efforts on the implementation of the sustainability programs. major efforts in the past year. first speaking of ourselves, we have a three stream recycling and that will result in 80% diversion from our facility from the landfill. we have converted the vehicles and equipment to reknewable diesel to -- renewable diesel. and i am very proud to esay we

achieved the port's first beneficial reuse of drudge material sending 65% of the sediment to wetlands restoration in 2017. we have encouraged the ferry operators to adopt renewable diesel and some have done so. we are looking at the feasibility of electrical vehicle charging station, an item you have seen. we continue to implement the under pier utility inspection program to protect the bay, and we have put a lot of effort and will continue to put effort on our leases with the tenant for tailored, site specific obligations that protect the environment in including the san francisco bay. and for sustainability, the goal is to protect the port's financial position and strengthen the port's financial position. as you know, we have a major structural deficit.

we just do not earn as much money as we need to repair the facilities we have. so it is always a challenge for the entire organization and for our finance team now led by katie to find ways to tackle the structural deficit. we will not be earning as much as we need to repair our facilities, so we have to target that we have in a very, very careful way. we target our capital reinvestment to maintain and improve the financial performance, so we continue to thrive as an enterprise. we invest 25% of operating revenue and actually more in the budget you are seeing today. and in prior years to capital. our fiscal policies for the reserve operating reserve and debt coverage keeps our operating budgets small, which also pressures our staff. we did hire 72 new people including division directors. and we transitioned to people soft which is a very important

move to integrate with the city and what this looks like when we transitioned over from the state and now moving into the city's people soft system, and that will help us get more data faster. we're also getting major legs and getting financial support from other people for our projects and the seawall earthquake safety program, 2018 bond question is a key example of that as is general fund support for the mission bay ferry landing. in the area of economic vitality t goal here is really business development, attraction and retention. and here we've seen very good results in the past year. the first i would note is the risk we took and the efforts we've made on pier 80 in attracting automotive and import

and exporter and is increasing ship calls to the facility, and this year we're projected to earn already 1 million from the facility. it is growing, and we will see that growth over time. we've also been working hard to compete for other cargo that really harnesses san francisco's competitive advantage, and that includes proximity to the big bay area markets and can overcome infrastructure challenges like rail. and working toward a berthing plan to support the growing water transportation network. and more and more bay areas are commuting and we want to be there to support that and other commercial calls as part of the reorganization plan which is made whole in the budget this year. i moved real estate and development together, and i consolidated and created a chief operating officer position to guide the real estate development division and the

maritime division so they align business objectives and strengthens asset management and strategic initiatives and is the next generation of the maritime leasing program with we're not looking for interim uses but for intermediate and long-term uses that bring value to our organization and to the public. to the waterfront. there is some strategic plan updates in the report. they are shown in attachment one. it includes water transportation, specifics about the ferry and transit partners, and an excused plan. transportation safety. we have gotten increased calls and the m.t.a. is point on this issue, but we are aware there is a safety issue on the embarcadero and are working with our partners to implement changes for a safer waterfront for walker, bikeers and motorists. and then the asset management

strategy which is begun in earnest to address short and long-term uses of port facilities, integrating maximum maritime wherever possible, or trying to attract a shipyard operator. and then really working on the cargo leasing opportunities. and releasing the other activities to bring jobs and enhance community benefit and attract capital investment and in bad shape. and they need a lot of investment. and are initiating the economic study to the city and the extra study needs to be updated and hasn't been updated for some time. and with 600 f.t.e.s at work.

the strategic plan, i kind of made that number up. i haven't done a full analysis, but we need a lot more people to do what we have before us. the strategic plan is a really good document to help us prioritize where to put the attention. but the efforts for the port will take a lot of time and effort. and you have seen that as commissioners and multiple agencies and a lot of effort and that is the risk and don't earn enough to buy the people or the capital investments we should be doing and the capital backlog is a real risk to the organization. and 247 f.t.e.s work their hearts out for this organization. and we work at a fast pace. it can be tiring. and putting the objectives

together and understanding where we put our efforts is very important to maintain a positive work environment. and very, very talented people and continue to be our employees. are there any questions on the strategic plan? >> thank you. >> public comment. >> i'm sorry. is there any public comment on this item? >> ms. woo ho. >> thank you. kudos to you and the staff. when you see how much we have established and how much we have done and sort of stunning when you said how recently we have finished t finished the strategic plan and so many people to thank. i don't want to go through the litany, but once again, our staff is able to do so much with

so little. a little daunting when you look at the work ahead of us. and one question, and i don't want to go into great detail in a lot of it, but sort of overarching kind of look at it. are there things that we missed? are there things that we should possibly have augmented to the plan or tweak it, or is there anything that would be helpful or useful from that standpoint? or were we more or less broad enough when we did our strategic plan that it covers and encompasses where we're going? >> that is an excellent question. thank you, commissioner katz. we have been thinking about that. there are two areas that are not fully expressed in our strategic plan. and one relates to safety and security.

and so port staff probably next year can recommend a series of polls and objectives that relate to safety and security. i am not talking about infrastructure security like the seawall project. i am talking about the day-to-day work we do to keep our visitors and everyone who comes to the waterfront safe. and the other item is really to focus more on because of the strategic plan was developed through a commission effort, and it's very good on expressing the values and the vibrant and diverse waterfront and operational pieces related to maintenance, and the work we're doing to bring in different crews so we can prepare the in-house support and structures and understand where certain work that the maintenance division performs that isn't in a goal here as currently -- as

is currently drafted. so every division, i with point to a goal that belongs to them, but not to maintenance. we would likely suggest in an update to include a maintenance goal or morph a goal to belong to maintenance and include more on safety and security. >> you sort of touched on and i missed some of the numbers. the existing staff versus what would be ideally or the number of people. >> and then i said i made up the number. i know how many we have for sure. and we have 247 f.t.e. and i think it is at least only 1/3 of what we would need to do in the work we have. so we've had -- we've constrained our operating budget for a long time. and that is because of our earnings. but in terms of the work, we're growing, so we've constrained our operating budget, but because of our good capital

policies, our dollars for capital is so much higher and like the seawall and earthquake safety program. and these are programs we have not had in the past and city wide, multigenerational projects. and the development project and two redevelopment areas here with the plans moving forward. and the same staffing model. we just are very, very stretched. and trying to address that is taking away where we can and focussing on what is most important. so setting priorities is really, really key. and also just being very effective teams. i don't know if you are -- you probably are aware, but this organization really works well together. they advance the ball well together. and these are some of the best, hardest working teammates i think that the city has. >> we've all said that up here.

we're aware of that. i guess along those lines of where i was going is and maybe i don't know whether this would be part of the strategic plan, but perhaps it is, which would be interaction and maybe extraction, if you will, of support from other city departments. so figuring out where a lot of what we do benefits the port, but also the city as a whole, and there is a little bit of overlap. perhaps we could figure out a piece of it that would have that kind of interplay and work with other city departments to pick up some of the effort there or to assist with it where possible. and have perhaps some additional f.t.e.s or support. >> i think that is an excellent comment. part of the plan really expresses the value of an integration with the city. and in some areas with integrated really fully with the city and in other areas we still

maintain our force mains. we still have plumbing and water infrastructure that i would argue the p.u.c. would be much better to maintain than our staff. i think our engineering group would agree with me. we are still building, maintaining, and programming parks and open space. and maybe our competitive advantage is something we want to do or may want to work more closely with rec and park department on some of those operational needs. and then those are just two examples of where we are really a port city in how we manage ourselves. >> bigger than a lot of cities. >> yes, i agree with you. integration with the city would take load off staff and help us grow the work diminish and us catch up with the work at hand. >> so maybe to that point, and again, i am not sure if this would be the time, but perhaps request that we have some staff come up -- you tossed out two potential examples, and maybe as

part of the strategic plan is have staff look at whether there would be some opportunities to either move something to another city department or bring them in as partners with us, or whatever potential hybrid situation there might be that would be beneficial for all of us. overall, very exciting. thank you, again, everyone, who has worked on this. just blown away by how much has been accomplished. and even though we have been sitting here and listening to the updates throughout the year, seeing it all in one body really is how incredibly talented, as you said, our staff, our teams are, and thank you for your leadership. it really is a wonderful group here. and i think the rest of the city is figuring it out now, too. >> commissioner woo ho. >> first of all, i want to compliment, again, the framework to do a strategic plan which we

established is great in terms of all the various categories and to go into a framework that we understand and also the fact that you have adopted it in every staff report and all the categories and know how it connects together and helps to prioritize as well as along with tied directly with the waterfront use plan and which is under development. and in terms of what has happened and the things that already recaps the excellent and in that regard, and i think it's a good framework of thinking and as far as the updates and the only one area to kind of point out a little bit in terms of moving forward, we talk about the financial condition of the port and make sure we have a strong financial condition in terms of the capital. and our policies related to

either the port capital or fiscal policies. but what i still think is a missing puzzle for me is a going forward and financial strategy, which is not about how much can i borrow. it's not about how much do i put aside in reserves. it is really understanding the pace of revenue, the pace of expense, a little bit of what commissioner katz said. could we become more efficient if we delegated our tasks to other city departments to redeploy our resources and that translates into financial strategy. so a little bit uncommon in public sector to talk about that which is because everything is done with cash counting and very different public sector and the accounting is different. but i still think this is an enterprise department and we can still use what i would consider

and one of the other things in a going forward basis is not just policies regarding capital and argue with the guidance and in the f.t. e. and are not totally dependent, but i think we do not have a financial strategy for the port. in term of it does feed eventually into stability or sustainability. we do have to be us is staining and don't have access that happening with the seawall. and we need to understand how to survive on a self-standing basis with the fact we have so many needs. it's not just the bans. it's the income statement and is something that is a missing pea peace. and spend more time on that

going forward and is not a budgeting exercise. >> i hear what you are saying. i think you are strongly suggesting during the stability goals and objectives to have a strategic financial strategy and have that reflected in the goals and objectives under stability. >> we have some elements and they are all elements of it, but i think we can go forward. >> yes. and i think as we think through the financial strategy, it really is a port wide effort because it really involves the asset management strategy. and the property strategy because they are very, very closely connected. what we do at piers 80-96 or how quickly we get and for what purpose to get the historic piers up and running are very

key efforts that will hit the income statement and balance sheet. i will work with the finance team and the real estate and development team to put in place new statements on financial strategy. >> ls an it ties to -- and also it ties to the waterfront land use plan and we just had this discussion on the settlement with the state lands commission in term of also being able to sort of work within the framework of the public trust and what is trust consistent and where we can have more employ l and does tie into the financial strategy of sustaining ourselves and do the things we want to do for the public. i am talking also about parks and other things and open space. if we don't have a strategy, we don't know unless it's transactional. each time we have something and do the bond issue and is about

knowing how you manage your future. >> thank you for the session. staff and i will work on it. >> director forbes, your report. >> i'm glad that a lot of transparency in the report and good that the public is out today. and our public and our community are our shareholders. i'm glad we talked about what we're going to have to do for the shipyard at pier 70. those are 350 good june i don't know jobs that we -- union jobs that we lost. we will have to get creative to get another customer in there pier 70 and revitalize that. it's about local hire. and i was going to ask you about -- chris is here from local 10. and come to the end of the commitment of 50% local community hire wauz because it's about hiring locally in the community and being able to live in the city of your birth. how are we doing in that aspect

of hiring people from the community for local hire? and being able to exist and make a good wage living in san francisco. do you have anything on that? >> thank you so much, vice president adam. that is a key part of the economic purpose in the industrial lens is to provide skilled jobs. historically the port provided many, many skilled jobs from the industrial land, and our numbers are down because of economic changes and changes in our tendencies. pasha automotive has met the requirement of 50% and actually exceeded it. i believe -- is peter, our maritime person here? no. okay. i am willing to get you a report, but i am going to speak from what i know and then i will follow it up with real numbers. the number of jobs that we projected when we came to and ask for approval and come in lower than what we said and the

pasha said at the time. they are not doing the level of auto processing that we had thought as early as we thought. and planned to grow in the arena and lots of auto processing and require not as much auto processing. and the staff they have on site and are from the district 10 community with excellent employees and the numbers aren't there. i would say we're in the 15 to 17 employee range and thought we would get into the 30 to 40 range at this point in time. it has much more to do with the kind of work they are doing and more exports and less process i ing. and it's critical to bringing up

the jobs numbers. >> thank you. i'm also excited about the ferry terminal being built and also with the crew's business and the water taxis because it is amazing the congestion we have in the city. we have the third worst congestion in the world is san francisco, and we're trying to get as many people to go by water or turning to pemethods o transportation. and that is something we will have to figure out to take less people off the road. 20% of the people come to the giants games by ferry. that is an economic and we have a beautiful bay. but we don't talk a lot about the human cargo that goes and that takes the ferries. and i think that's good. and i know we're commissioner woo ho, that is important to her with the congestion. forest city and the giants, not too many ports are you going to see partners of yours that are dedicated to affordable housing.

this is pretty rare to san francisco because of the homeless problem that we have here. and it's something that we all have to get our hands around because anything can happen to any of us. we all could wind up homeless. something bad could happen to you in your life. i really like it that they're running a business, but they haven't forgot their humanity. and not all people are probably tenants in the port have that humanity, but the giants do. you can make a lot of money and get rich and do something good for your fellow man, brother, and sister. and with the project and what they're doing and just really happy about that and we can have people that live in the city and so many people have had to move out of the city. this is the most expensive city to live in in the united states, and i'm glad that the port is participating in the project. anyway, thank you.

>> director, thank you so much for the report. and i want to thank the port's staff for helping us achieve a lot of the goals over the last couple of years. and it is great we have this strategic plan for the guideline as what we're trying to accomplish going forward. and my fellow commissioners have had some great recommendations on how to make the plan a little better. and also commissioner adams and i just met with our contracting management division and the office of contract management. and the contract management division regarding our contracting and how we do contract, so one of the ideas that came up was what we want from our contractees should be in our centraling plan. it should start there. we should have a stated goal of

what to accomplish in that area. and other than that, it is a great document. a great item to be followed. >> item 90 for commissioner's report. >> commissioners, anything to report? 9b, anything to report? >> items on consent calendar, a. to authorize for competitive bids for construction, contract 2786 pier 94 backlands improvement. this constitutes the approval action for the project for the purposes of ceqa pursuant to 31.04h. item 10b authorization to construction contract 2771r public restrooms and pier 45

shed a and islais creek park to g.y. engineering for $673,000 and authorization for a contract contingency fund for 10% of the contract amount for total authorization not to exceed $740,300. item 10c requests approval to execute an amendment to the contract with aecom technical services incorporated to increase the contract amount by $770,000 for an amount of $4,079,396 and extend the contract term for master planning preliminary design, and final design and construction support for phase 1 of the pier 70 crane cove park project. >> i have had a request to take item 10c off of the consent calendar. can i have a motion? >> so moved. >> second. >> to approve item 10a and 10b.

thank you. was there any public comment on item 10a or 10b? commissioners, all in favor? >> aye. >> aye. >> an any opposed? >> resolutions 14 and 18 have been approved. and can someone give a presentation on 10c? >> good afternoon, commissioner s, i am steven reel, the project manager for crane cove park and this is an action item to request approval to execute an amendment to the contract with aecom to increase the contract amount by $770,000 for the total amount of $4,079,396 and to extend the contract term for

from august 31, 2018 to june 30, 2020. the park is located within the pier 70 area and upon completion will be one of the signature new parks in the portion of the blue-green way. crane cove park is being delivered with multiple construction packages. and the long site preparation and surcharging is complete. construction contract two park improvements was advertised for kids in july of 2017. the results were unsuccessful. and coming in much higher than the estimate. since rejecting all kids, that was prepared a strategy through the engineering of the park design. attracting more competitive bidding by reducing the number of bid alternates and separating out building 49 to the stand alone package. that would be the fourth bid package. the new strategy requires additional design work and

extension of the project duration. this proposed contract amount includes the following additional services. detailed design services for additional design and engineering and modify the design to reduce construction costs. including a simple i willfied design and the additional design and to develop separate bid ak packages and to the management and design studies. and the total funding today is approximately $35 million and this contract is being funded by the 2008 parks bond. and except for work associated

with 19th street parking lot and the city contract monitoring division and from the project and is currently exceeding the goal with an lbe participation of 24%. the prop posed contract amendment incluz 53% lbe -- includes 53% lbe subcontractor and we fully expect this amendment to be the last. the project planner and the contract administrator are available to answer your questions. >> thank you. can i have a motion? >> so moved. >> is there a second? >> second. >> is there any public comment on this item? >> seeing none, commissioner woo ho? >> i guess i am trying to understand. when this initially start ed --i

understand the last piece where you said you couldn't get the right bids in and break it up and it's going to cost us more. but it started out as a small project and just gotten bigger and bigger and bigger. each time we are incurring more and more cost. that is the reason i want to have more discussion to hopefully understand what we are approving. and it's going to cost $35 million. what would be the equivalent with other parks that we have developed in terms of the cost? >> the wharf park was working and about $26 million and building a new pier and park on top of that pier. actually a much smaller area than crane cove park. the other parks are much smaller and simpler than franco.

franco includes transformation of what was the prior shipbuilding area into a new jewel of a waterfront park that includes building a new beach and shoreline work. renovation of historic cranes and historic slipway. there is an historic building that is also part of the park. and there is construction of a new roadway for the 19th street roadway extension which goes from illinois street and over to 20th streets. and then we also added construction to the park project, and that is what's as seen as some of the contributions. >> so we split this project up into various phases and it sound like what we're approving now is just getting us through the design and -- it's not actually building the park yet. >> this is not -- this is for design services only. and it includes redesign work,

and it includes design support during the construction. >> when we initially conceived it, what was the cost we thought to get us to this point? what was the original estimate? >> i believe it was $2.6 million, about that, and at the time the total park cost was, i want to say -- 20 and david may have to help me out. but i think $28 million. >> now at $4.7 million and $35 million in total. that's a little, i guess, trying to reconcile how we went so far off. >> and the parking lot and the parking lot was an addition to the park. after that was $2.6 million and with the addition and then we also got additional funding through the general obligation bond for 2012. >> is part of the answer we

changed the actual what we want in the park? >> this scope grew. as part of the conceptual master planning process and went through with the community, and david can speak more to this. the desire of the community, we had originally envisioned the first phase of the park to be confined around the slipway and to not include the northern beach area. and the community really requested that we deliver the beach area in phase 1. that drove up costs considerably. >> david from planning and environment. want to add that the projects have been going on far long time. when we originally started this contract in 2010 and hadn't been to the voters yet for the 2012 bond. just a quick kind of timeline of the total project funding might help. in 2010 when we brought on aecom

t total budget project was $80. we knew we were close to the 2012 bond and set up the contract knowing that the contract amount may grow because the project budget may grow. in 2012 we went to voters again and got an additional million for the project. we continue to pursue additional sources of funding. we went to the coast conservancy and a prior to conservation grant for $1 million to help us with the 19th street roadway. we worked with the transbay cable project folks to put community benefit funds into the park. and that added an additional $5 million. and we seek other capital fund for the 19th street parking lots and other projects that over time have gotten our project budget up to $35 million. with that project growth and

with the successful bid package, too, we have had to go back to the consultant team and said, all right, we are extending the duration of time to deliver the project. that costs more money. we're dividing it up from three big packages to the project now into four bid packages which takes additional time and resources. and we also have to look at value engineering. steve mentioned crane plaza. building 49. and to some extent other park improvements that we have to meet regulatory requirements. >> i am definitely in favor of having the park, so i don't want misunderstand how it got developed and in terms of reading it through the staff report, it looked like one more,

one more aem and letting the costs run run faster. my community is obviously we want community imput. and like the check, then they can ask for everything, so we have to write the check. i understand and i participated and was co-chair of the bond issue in 2012. and very happy to know this is one of the projects that we're not worried about the funding side. usually we worry about the funding and that is one of the biggest issues of the project. this is not where we don't have the funding. we do have the funding, but we have to worry about what we are spending. that is the reason i have asked these questions. >> is that it? >> yes. >> commissioner katz. >> commissioner touched on most of the issues. my understand is we have already improved one of the major

increases in the contract from the initial and august 16 i think it is. and fourth amendment. right. so -- >> this is the third. >> sorry. >> so this is really -- i mean, it is an increase, but the change and some and the change of the scope of work has changed. this helps us decrease the construction costs in theory if i understand correctly by improving the design or reconfiguring the design. it may cost a bit more in the design phase but hopefully keep costs down in the construction phase. >> there should be a net savings. >> and this is roughly and a 20%, a little more.

>> thank you. i'm excited to see the park come about. >> and you reference that and refresh and with respect to the crane cove park? . >> and to 19th street and between stewart court and 19th street. there is aecom and for efficiency sake bringing that project into their contract as well as bidding wit the park would provide us the most efficient and cost effective way of delivering it. and -- >> so the parking lot has nothing to do with the park.

>> we're delivering the project as a way to support the arena project. but again, it is the port capital project that is scored well and part of the capital planning process and was approved by the commission prior. >> we're lumping in a parking lot and a park together? >> one of the good things from the bid package that we were not successful with is that our theory that that project may come in a little bit under bid by delivering them and that was the one part of the project that came in under the estimate. so our theory worked. it was just the rest of the project that didn't come in successfully. >> thank you. >> commissioner adams. >> nope, i'm good. >> i, too, had several questions regarding this contract because i just couldn't imagine how it went from $700,000 to $4 point some odd million, so i had

several questions. i think i am okay with the responses, but i also know that the response is different. and to keep giving contracts to the same contractor and the issue that we have sometimes. and so i think i've made it very clear that this is the last time i want to see an amendment to this particular contract. and maybe it's time for us to have an update on what's going on with crane cove park and our growing cost. where we are, what we think it's going to -- you know, and now that we've put out a proposal and came in way over. are we working with park and rec on this? do we have -- this may be one of those things where we can get other city departments to help

us with it because we have never done anything on this scale before. a great time to have a presentation on this project and where we are and where we're going with this. >> we can certainly do that. >> thank you. >> a commissioners? >> an all in favor? >> aye. >> and resolution 1818 has been approved. >> item 11a, request approval of the port's fiscal year 2018-19 and 2019-20 biennial operating budget. >> good afternoon, commissioners. i'm megan wallace with the port's finance and administration section. and happy to be here today to seek approval of the proposed

fiscal year 2018-19 and 2019-20 budget. i was last year on february 13 and provided informational item and today i'm going to actually address some feedback and questioning that you had provided about the budget. in particular, i want to touch upon some trends in terms of looking back and providing details about positions and seeing if there are any additional questions you may have. so first of all, i do want to touch upon the overview of the port's budget in the larger city context. city wide we actually are projecting as of the time of the mayor's instructions coming out, the mayor's office was projecting a general fund shortfall of about $88 million in the first fiscal year and $173 million in the second fiscal year. it's really due to concerns