operating budget projections doing back in time so we could see how they have changed. the good news is that the bottom line is holding pretty well it looks like. some of the line items are significantly different. some significantly higher and some significantly lower. i know there was a brief explanation but i wonder if you could just speak to the ones -- it seems like all the good savings that we got from the lower ones were offset by proet pretty significant increases and -- pretty significant increases and i was wondering if you can help us understand that better. >> sure. i think one of the major differences is in the early presentation, last year, last august, a lot of the property manager, asset manager, staffing and administration costs were lumped in with maintenance. that's one of the biggest difrnss is that maintenance --s differences is that maintenance number dropped from $9 million down to between $3 and $4

million. the asset management administration costs were just a couple hundred thousand dollars in that august budget. one those costs were moved do unu undown to -- down to that line item it increases. >> so it's just shifting between lines? >> correct. >> director reiskin: so the bottom line is that our projections from a year ago actually were pretty good and they are holding, is that what we should take away? >> yes. >> chair nuru: i can elaborate on that. feel free to correct me though. the three item social security are e fining systeming -- of refining system. we have almost $1 million. we associated under content management for the advertisement, not for the transit operators. we didn't have that in mind at the time. so you'll see that increase because we are working with the transit operators on developing the content.

that's not something that we allocated for. the other one was the marketing commission. in terms of impleme improvement showing $3 m.5 million. we have a restabilized year so we didn't have as much commission. this one is commission is high because we are leasing the retail center where as we would be -- the leasing commission would be moving out and new tenants moving in. so that's another one. the last one is security. we anticipated $65 million and we have $7.6 million. that's the three items that stood out. >> director reiskin: that security difference is driven by what? >> chair nuru: we underestimated the cost per hour of the private security guards. we used what we have in the temporary terminal but apparently that quote is no longer valid.

>> director reiskin: on the big question from the reserve to offset costs, it seems like we would prefer to use it to offset that operating cost which i think we could justify given the fact that the operating expenses are as -- seem to be coming in as projected and we continue to get very optimistic forecasts in terms of the main revenue streams coming in. that said, what is going to determine what the operators pay is on one side the budget and then on the other side the lease negotiations. we have one lease coming up today and i assume we have another one next month. the budgets for the agencies are probably i know for ours is already set for next year and the year after.

so what are those from your perspective -- what do the budgets of the agencies and the lease negotiations support? do they require the use of the -- whatever it is, 5 or 6 million to offset operating costs or assuming that it's not available? >> the language in the ac transit leasing agreement, which i believe is similar if not identify to the mta lease, really puts the operating reserve at this board's discretion. use of it is up to you in the reserve policy and in the lease and use agreement whether or not to charge for it and to fund it is at the discretion of this board. >> director reiskin: i understand that's the board's discretion. my question is really what are -- are the leases assuming those dollars will be available to offset costs in this next fiscal year or assuming those dollars

are not available because the board is going to fund the reserve? or do the leases not matter? >> chair nuru: they never asked for money and said they have it. if we ask they would tell us they don't have the money or they don't have enough -- as much money. but we can ask the question. we are assuming that whatever deficit that we have will be covered by the operators and we share that number with them. they haven't given us any numbers back. >> i'm sorry, i'm not following the question. >> the amount that's on the lease for the calendar for today, that i'll be recruising myself of so tell me if i'm crossing any lines, isn't it assuming some dollar amount? or is that contingent on what happens with the budget? >> i believe the answer is it's contingent upon what happens

with the budget. there will be a charge to the extent that revenues are insufficient to cover expenses. that's when a charge would be levied against -- to the operators. >> director reiskin: okay. well, i probably have to go on record of supporting the use of the funds to reduce operating costs. thank you. now i think i understand. >> chair nuru: yes, director harper? >> director harper: i want to go on support of that. i don't know where the 25% came from. ac transit has a $400 million, we have a 10% and we have go thousand employees, 600 buses and many, many buildings. we have one building and it's brand new. so the idea for some reason that we need 45% contingency to operate a brand new building i think either we don't know what our costs really are and are just trying to put in something

to, you know, bull work that ignorance but from our perspective taking our operating reserve at 10% and transferring it over to tjpa because they want a 25% operating reserve is the problem. i think getting outside of that that this is going to sound funny but this is no time to husband our money. we have got to come out of the shoot bull bore. we have to get this building operating, operating fast, getting people in there. the more we can spend to do that in the form of tenant improvements which i really appreciate the city of san francisco for understanding that issue and stepping up to the plate on that and getting buses in there, getting people in there, we can't let this building play fallow. just to squirrel money away is

not the right thing to do. i mean, at some point in the future we may sigh say when we -- say when we get experience that's realistic. putting that much money in the operating reserves when we already have money in the operating reserves i don't agree with. >> director sesay? >> director sesay: does that include operating? >> the operating maintenance -- neither, the reserve or the operating budget includes tenant improvements. tenant improvements are sitting in the capital budget. >> director sesay: so trying to follow that mind, is it restrictive to uses? >> it is for -- debra can correct me if i'm wrong but for

capital and operating for phase one. >> director sesay: so i think that we are missing a piece of the conversation here in terms of the city financing being able for discussion for ti i want to make sure that conversation that we are talking about in terms of allocating to o and m we kind of take that also into account. at some point it was specific the board in approving the city financing was very specific as to what it could be used for. so if there's a way to mitigate or limit what is used on those funds to -- for ti, we want to take that into conversation. i feel like i'm missing the piece. if we are making decisions and recognize meb recommend -- recommending moving the reserve i want to be careful that getting considered. >> director?

>> i have a question. if original measure 3 didn't pass which i hope knock on wood believe it will and hope it will does that have bearing on its decision? with regard to claims, any potential claims that we should know ant that the reserve would need to cover? is that out of the capital side? >> chair nuru: it will be out of the capital side, not the operations. sara can answer the question. she has scenarios. >> yes. on page 9 of the staff report there's a small table shows with rm3 that would reduce the operate iter contributions by the amounts shown there for both budgets. >> okay. i see that. >> the first column, staff proposed budget has the $40.5 million b budget.

that includes making a $5 million contribution from the naming rights to the o and m reserve and fully funds the reserve at 25% and then operator contributions would go down from $93 million to $4.3 million in the $5 million from rm3 is available. the second column shows the oment gnat budget. it would go from $7.1 million down to $2.26789 >> thank you. >> thank you. >> so it sounds like it has to do some reshuffling of the operating so it's a little bit more clear and probably less operating and more definite whether it's the funding for the sitting out of the the city parks or of the agencies that are here. so i would

>> if we can get more direction from the board, this is a draft budget. while it favors using the -- >> alternate. >> the alternate so we will proceed with that. so director harper's comment about the level of reserve, since the board adopted the -- >> that's correct. >> a couple of months ago. >> in november. >> november. >>s the board adopted changes to the reserve policy which included a goal of funding the o and m reserve at 25% of projected expenditures. i appreciate that that might sound like a lot to some agencies. we did do a survey of bay area agencies and 25% is not particularly abnormal. i also -- director harper, your agency does have the benefit of having moneys from other sources

that you can always move around. tjpa does not have that ability. we don't have any cash other than for operating rm >> director harper: i don't know what other moneys you're talking about. we are more subject to economic downturn because we are so sales tax oriented and we are not. so our big fear as to why we need 10% is on the basic of economic downturn because we are so sales tax oriented. >> chair nuru: i would like to offer if i could -- since the board already approved the 25%, that we would use that for the next couple of years until we establish some kind of a history of revenue for the transit center and then we can adjust that accordingly. right now we've got the projections but we have no historical data behind it. so we are not sure what to expect. but in a couple years we should have enough data to be able to determine whether a 10% or 15%, not 25% level is sufficient for us to be able to operate

effectively and efficiently. >> agree. >> i think that's a good -- something we can accept. you still with the 25% at least have some idea of tracking that and how that's going to be used. >> yeah, i was going to say, you know, if you want that learning curve, fine, just don't bill us for it. this gets back to what i was saying. it says, okay, you want that money, does that mean we have to give you the money to have the money or does that mean we get -- that you get to say, okay, ac tr tran sipt, let's have an understanding with a 10% reserve that we should be more that we'll bill you again. we have to put all our money into those buses and i don't want to put money into -- i want to put as little money as possible into the termal. i want the leases -- terminal. i want the leases to do everything they have supposed to do. we have to start out with a budget and my board made it

clear that the transbay budget and the money we put into the operations is the same budget. so we are just going to balance it out. i want to come in here with as many buses as we can get. $10,000 is a bus a year. -- $1,000,000 is a -- $10,000 is a bus a year. that's a number of different buses. >> any other directors? director reiskin? >> director reiskin: so i would say i would conquer with that and say that while i think 25% -- you know,our reserve target an also 10%. accepting that you have maybe less to work with i think 25% is an okay goal. in our first year, we have our full expenses and we don't have all of our revenues. so if there were a time to use the reserve to balance the equation and not require the operator to have to ship from service to funding the tjpa

reserve i think it's justified in the earlier years. as we get to the more stable revenue verses e expenditure evolution, ramping towards a 25% reserve at that point would make sense. i'm okay with the stick being the go -- sticking with the goa of 25. i think there's a justification for working our way towards it. then we can deal with the fact that we have less revenue in the first year and the first year is -- than we will have once everything is leased up. >> chair nuru: director sesay? >> i guess i was going to agree with the director that because of the uncertainty of launching that new endeavor in terms of hoping, having that cushion in reserve is helpful and taking into account, you know, as year

two, year three as we ramp up being able to establish, to their point they don't have as much revenue or flexibility in terms of revenues and so i want to be thoughtful and mindful as we move forward because i know the city financing continues to be a revenue source everything is looking to but that's also restricted. so the idea of having a reserve and having it thoughtful, my understanding is this opportunity to make aminutedmen to move along so making a decision today to fund the reserve doesn't take away the opportunity to adjust midstream. >> i think what director harper was suggesting was the same thing but the flip side. so rather than us taking money from service to put into a reserve we can put the money in service and if we find in months or doing the next budget that it's not adequate we can adjust.

by doing so now we are just parking that money in the tjpa bank account opposed to putting it into service to serve the new transit center. >> chair nuru: i guess chris cal clear with the caveat directors that every time we ask for money director reiskin, director harper says we don't have it in the budget. >> director reiskin: ask the rest of the board. >> chair nuru: if we put less than 25% in the budget and leave the rest of the amount of money without collecting it when we come to ask for it mid-year i assume they will guarantee that we will get that money? >> when cal train ends up here and high speed rail ends up here i guarantee you won't hear this. as long as they see that tran sipt has two-thirds of the operating losses to have to cover it's a tough knot. >> chair nuru: okay. i think you have some direction. we'll see a new lay out of what

the budget will look like. thank you. >> thank you, sara. >> sense this was a public hearing i just want today note that there are no members of the public that indicated they wanted to comment on the item. >> chair nuru: next item. >> moving to your next item, item 12, the adopt rental and fee schedule for fiscal year 18. >> this should be a quick one i think. >> good morning. marsha vales, tjpa facility manager. so the information conveyed this morning will cover two areas. fees for non-public rental in certain areas at sales force park and fees for film and photo shoots. the structure was created by beaterman redevelopment adventures brv and they are here to answer questions should you have any. ashley langworthy and inga

covine, the manager. >> so the over arching philosophy that forms the recommended structure is that as much as possible the transit center and in particular sales force park should be freely accessible to the public. serving transit riders, workers, neighbors, the broader community and tourists while however recognizing that rental fees help offset and support the cost of public programming. as such only two areas are set aside for non-public rental both in the park, the amphitheater and the cafe pad. these areas may only be available if not other wise programmed by activities that are open to the public. planned activities open to the public in the amphitheater are lunchtime or evening concerts, film festivals, exercise classes

that need room to spread out. examples of non-planned activities open to the public would be small scale and reserve private gathering such as picnics. there may be activity that is are promotional in nature however open to the public. this approach is consistent with city-owned facilities such as city hall. for the cafe pad the initialled planned use is is that of a pop up and pri will be talking about that later this morning. this is a summary of the fee schedule. as you can see, the amphitheater is divided into two areas plus the cafe pad. the minimum set fee level is intended to cover costs and generate revenue. the hourly rate structure is intended to inkrentivize a short time frame to maintain the previously stated priority of availability for public use. examples of costs are staff

time, engineering and maintenance staff time, lincoln administrative lau time, views signage and barricades, use of generators. this slide provides an over view of the fee structure for film and photo shoots. they are market-based. they are activity that is provide a public benefit. prohibited uses are noted wchl the -- noted. with the described philosophy in mind in general a market-based structure is recommended because request for film and photo shoots may be at any location within the transit center, not just the park. as such it is difficult to predict ahead of time what the impacts may be. examples of photo shoot variables are a type of shoot, the duration, crew size, amount

of equipment, complexity of set up and location. cost incurred will be similar so what is described in the previous side. so this slide summarizes the categories of film and photo shoots. the only category that has a set fee is non-compassive still photography. ass other wise it would be mashlth-based depending on the vary -- market-based depend open ceremony the variables. lincoln and brv are available through salesforcetransitcenter.com. this website is temporary while the permanent one is under construction. when that website is up and running it will include guidelines, fee information and applications. any questions? >> director reskin?

>> director reiskin: are the fees recoverable? >> i just what about to make sure -- >> director reiskin: the rental. >> so they are fully burdened with the caveat that something may come up that's not being koefred. cover -- covered vp that's why we left the opening statement to ensure full cost recovery. >> chair nuru: other directors? >> okay. >> seeing none no , any member -- seeing none, no members want to comment. >> [roll call] >> item 12 is improved. call your next item? >> yes, please.

>> item 13, authorizing the executive director.

>> the pop-ups would be in place until we have retail. we are looking at a year period. or a little bit less than that. >> good morning directors. thank you for having me back this morning. what i will present is the plans for these pop-ups which is the activation program on grand opening. there were very first slide shows you, excuse me, the ground-level location and it is comprised of many different components. so if you want to start from the bus plaza from right to left. the bus plaza activation on grand opening, well soon as we can get it out there after june 15th, will be part of our bending program where the radius bottling. there will be a combination of varying machines and i will show

you what those are in a second. they are going to be built to be very robust. and the company is confident that they are going to be fine sitting outside. the next grouping is the grand hall the grand hall on the exterior, in the pink, is our farmers' market pop-up market. so that's what we had mentioned in the presentation before. there are 28 locations and approximately 10 feet by 10 feet. we've had an enormous amount of interest from an entrepreneurial public here in san francisco to participate in this pop up program. because there is no space for kiosks or prebuilt stores, this is becoming an opportunity for those merchants to join us for grand opening and beyond. so we ha have interest from a variety of different merchants and al i'll go into the specifis and a second. we are going to be extremely sensitive about congestion and

remove aliens and how we stage all of that, and who comes and, and what they need to bring in and how long it will take them to set up as we move forward with it. inside the grand hall we will have a café caravan. i will show you some pictures of that as well. so that on grand opening there will be something to serve coffee and light pastries. we will also have a shoeshine and a florist. that is our plan and we have had interest from some interesting pop up the merchants who need to be on the interior of the building on their setups need to stay in place for a bit longer. i'll show you that as well. as we move down on the exterior of the grand hall of the ground for, whether, that is our food truck park area. so there is room for approximately eight traps and there will also be a pop-up bar alongside. so first stop is our food truck

program. this is going to be, actually it is about eight tracks that we can fit there. there's a variety of 250 tracks to choose from. as other locations in the transit centre get filled with food and beverage, we will downsize the program or alternate what they are selling. each of the trucks will have their own set of waste bins and they will be responsible for waste removal. and they will have a website. they are also going to be operating at least through lunch and dinner. the trucks may change as often as twice a day. so somebody comes in and they are only a lunch daypart, they would make it a different truck for the evening. the trucks will change daily so we can create some excitement and the local resident, customer and traveller will see something new every day. as part of this program, they are providing an on-site manager

at all times. seven days a week. so the company that we are working with to bring this in will be responsible for managing this directly so there will be somebody on-site in uniform and explain what they do and they will be responsible for not only monitoring the trucks loaded in, are there lines captive they run out of food, are they the right to use, to they look appropriate appropriate, in all the operational details, because of the complexity of this and the amount of checks and that it is daily, we will also have a full-time booking manager. it will be done through their website but then all of the trucks will be curated. there is no cost for this program at all. this is just a revenue generation opportunity. their cost to open is approximately $20,000 and includes all the permits and licensing. they will also have a luxury lou to accommodate the need for a restroom within 200 feet for the operators of the trucks.

and then their annual cost to operate is actually quite high and that is the staffing and the extent to which they need to staff that. the portable restrooms are approximately $2,000 a month to continue to operate. their initial agreement will just be for six months. that will give us a chance to understand what have -- has gotten leased and weather they should stay or should they become a weekly event, a monthly event, just to pop up for special events? next concept in the exterior will be at the bar down. that's what we're calling it for now. because it is the down bar. and that's going to be, basically, a semi drink truck. something like what you are seeing in there. but for the aesthetics of the centre. centre. they're working on the designs currently. that will be beverages only for now because the truck will have an agreement with them that

allows him to operate because they'll be surprising for supplying the food. there won't be any conflicting clauses. that will operate seven days a week and the hours are there. obviously, all of these hours are subject to change. they may need expansion based on traffic, activity cap demand frokept demandfrom the consumer. we will bear no cost -- this is a revenue only agreement. their initial cost to open is approximately $200,000 and that is to design the truck, the fencing, the license agreement, all of the different things that we need to get open. not to the inventory. when we discussed this, and excludes inventory from any of the cost to the merchant, but it includes the hard cost. their cost to operate will be approximately $300,000 and that is predominantly staff costs and insurance and some of their products.

the café concept that is in the grand hall, that is, again, just a temporary, please do not look too hard at that picture. that will be preached in to brih the grand hall there working on. the merchant here owns that unit already. so the cost to come in is very low. is one of the reasons we are doing it. it will fit through the doors of the weight is quite late and they can operate out of that unit. will surround them with tables and chairs and they will operate all day. they're meant to be your coffee place at 6:00 in the morning, and again, some of these hours may get extended a little bit later once they see what the demand looks like. the intent, obviously is that as the release of these spaces, this may not be a long-term situation for this merchants. this is also on an operational basis, they will have 24 people.

they all maintain the cleanliness, the look, in such a. their initial cost to operate is quite slow. it is basically the retrofitting of that unit that you saw her. and the annual costs are approximately $100,000 a year. it is predominantly just the breeze step. excuse me. in addition, in the ground while, and these are not exact, we will have renderings shortly, on one corner, we will have a shoeshine operation, our intent is to have a flower market so there won't be flowers and if our -- farmers' market, there will be a full time flowers market ended the -- in the grand hall. very much the old word -- or old -- old world transportation type of services. as i mentioned we had some interest from some really wonderful merchants who have to operate inside. they want to be here every day they may want to come in for a week, two weeks or months. our hope is for grand opening we

will accommodate two of them. one of them doesn't travel bags for men and women. it is a good use. they have a fixture system that they can lock up. the farmers' market t pop up market will start every wednesday right after we open on august 15th. it's from three to 7:00 pm. it will serve as the traveller, the consumer, people who are supporting their buses who can grab something. it will not compete with the food trucks in any way. so no prepared foods. nothing that you smell and nothing that is being made. no burritos. all of that be in the food truck. this is kraft foods. anything from high end chocolate to balsamic vinegars and hummus. anything that is prepared but not being cooked on sight that you can grab and go. we will have a certain amount of farmers. probably very seasonal. there is a proliferation of

farmers markets in the area and we're not trying to compete with them. a lot of unique retail and entrepreneur is. so we have a coffee roaster, we have somebody who makes wonderful gloves, we basically got pretty much one of everything. our goal here is to rotate those as well. so you won't go out there and see tenant julie merchants calculus he a couple of different ones each time you go that constantly wrote out -- rotate out and it gives a chance the local entrepreneur to participate at a very low rate, frankly. that will have a professional appearance as well. we have a marketing manager. project that will be all matching table cloths, matching signage matching chairs. there will be a package that they will put together and each other merchants complies with that within their own design it needs and criteria. we are also hoping we can accommodate a couple of the fashion tracks. they will be very seasonal based

on availability of the tracks and locations that we might have available for them. just to kind of give a little bit more retail to the location. the ground level program is the 11th largest privately held company in the united states. and they have the bottling agreement with coca-cola and all of their ancillary products in northern california. so they've actually developed a first to market series of machines for us. excuse me, two fm will be at the bus plausible and that is to take a better break machine. it is being very robustly designed and it will contain pretty much a little bit of everything. everything from coconut water, smartwatch with, juices, iced coffee, vitamin water, gatorade, it is basically a little bit of everything as well as their more robust coca-cola machines.

we will probably get two of these arata looking ones and two of the new which are not out in the market yet, will be first to market for those as well, there skinned and a black covering and it's all of the coca-cola free products. sugar-free, caffeine free. our bus stack is bending and what we call automated retail. we have approximately 28-32 locations. we will be using them judiciously. initially there will be approximately 14 of the bottling program machines. thirteen of these machines will be first to market. they will be the first time they are out there is a mcdonald's, at dunkin' donuts, will combine those. vital water, all different kinds of things emplacement throughout the bus decked predominantly

alongside the walls and a couple osmall pillars we will use as well. they basically have the number 1 sparkling beverage in the world. we will get everything from juices and teas, sparkling water, et cetera. they will service these machines at least twice a week. they will be responsible for refilling them and replenishing them and monitoring the inventory. we've done an enormous amount of work trying to develop how often that needs to be done and how much product they will go through and they will be very flexible with us if there is a product line that's not selling, location that's not working, we will work with them to change that. >> go back to that stack. have you talked to ac transit about this? from the bus stack? because there's nothing a driver loves more than to see a passenger come on with an open container. and having a container that may have been already opened at that

you can read those is one thing. what you tell a passenger on a pop top? you will not come on this us. so you need to talk to you, and i don't know what we have, but we have some pretty strong, we just don't like cleaning up sugary drinks that have been spilled all over our seats. >> director harper, all of these are twist on and twist off openings. none of them are in cans. none of the beverages. >> okay. it looked like there are some canned beverages there. >> these were just pictures that they placed on the slide so we can show the different examples. but we have explained they cannot have any opened beverag beverages. >> director harper: make sure you have some semblance and talk to ac. we want the driver is to be doing more than just telling people the that can't get on ths because they've got lips as i don't know, you know, but there is input to be had there.

>> absolutely. part of what this technology will bring as everything is smart phone enabled. you can pay with some sun and play with apple pay. what day it is the latest and greatest. will we will also monitor the inventory and help identify if a machine is having an issue. all of this is automated. financials, this is one of the key things here, this is a large revenue-generating program. this is typical commission on these types of situations, and in this case, given the size and scale of what we are offering count and they do not have an exclusive agreement, just so you understand. they can do ever -- other beverages as we see fit. we are able to get this to 30 % commission. and the annual revenue know that is projected is $81,000.

although it says targe target wo think it is at a low and based on an initial passenger count on the bus stop only. we do think will happen its otheis othercustomers and travel find machines as well. their investment is approximately $81,000 initially but around 100,000 with labours and delivery. in addition to spring we will also have some grab and go snack alternatives to you, i will show you some pictures, but to charging so you can buy a charger and rent a charger, you are about to get on an hour long bus ride, your charger is dead, you will have a charging machine. some of the thing is that we are looking at and if you have these are confirmed, we will have a few of the best by machines under electronics, we will have

two of the cvs machines. we are working on, it won't be that benefits machine, it will be newer. allure of beauty doing, you got off the bus and you thought yet -- forgot your mascara and don't have the right lipstick, we are working with you nicole so that is one of the machines that you can travel in and out is. we think it is appropriate here.

you got here and you are here and you will freezing, you're up at the park and you need a jacket, they can send you downstairs. some of these may come and go. we are talking to at flip-flop concept. they will not come with us for grand opening but they may come in next april, may or june. so on the park level, what you've heard about briefly, is the park bar and café. so there will be two identical trailer is designed for this location. one will be all beverages both alcoholic and nonalcoholic and the other will be that café question. the same organization that's doing the café and the park bar will also be doing the healthy vending machines that will have -- that we will have on the bus step levels. all packaged to go. you can take it with you to work, there will be muffins, but

they will be able to make it upstairs, package it and make sure the machines have extremely fresh product and you can refill it as they go. so they'll be designed for the aesthetics. they will be fenced, the location for this is in the caée area which is the round a circular area. they want to take up all 1300 square feet because they are just two trailers. but they will have tables and chairs. there will be liquor licenses et cetera. the cost to operate is approximately $300,000. again, now no cost to you. this is purely a revenue-generating opportunity. and something to be there immediately. yes, ma'am? >> if i may, ask about the pricing for the menus. what would you say would be some of the offerings that we have

for a budget minded travellers cleaning. >> so they will have a fairly detailed spending budget. they have everything changing from approximately three dollars, nothing more than 15. this is really meant to be a quick serve. it will be wraps and muffins in the morning and they know that they are targeting these kind of people, the tourism and the people that are coming up to the park, almost every day that they want something to munch on.

so, yeah, they are very sensitive to it. so, some of these retailers will have percentage only deals because of the level of investment that they're making and the fact that they are not here on a long-term lease. these are coming and, all of them, on license agreements which gives tee jpa ultimate authority to move them, relocate them and asked them to go which they all are expecting will happen over time as the centre matures. so, excuse me, the park bar, the down bar, and, our percentage -- are percentage only above a

certain sale space. we are giving them a chance to recover some of their initial investment. the truck park will not be a percentage deal. it will be a monthly fee and that's been based on the average amount of trucks, oh, thank you. >> that was from a vending machine. [laughter] >> that would have been the good coconut water. so, it's based on how many average trucks? anticipates that they'll have. what they're revenue is, and covering their costs because they are providing staffing to augment this. the café, believe it or not is a good revenue stream because again, their investment is very little. we are charging them a base rent plus a % over a certain amount of sales. the deal is a 30 % straight commission. we will see it from day one. they will report it monthly and

pay it monthly. they have a fairly complex reports that they will turn in. it will also let us know which of the machines are performing well which ones are not. so we can start that conversation fairly early on about what is doing well. there's approximately 66,000-dollar investment being made in electricity for the bus plaza and on the bus deck to allow us to have all these opportunities. so year one, calendar year from opening on, they anticipate approximately $210,000 of net revenue to tjpa. >> i brought this question up before, i have a number of restaurant clients. when you talk about you have base rent and commissions, is that a commission on gross sales? >> yes. it's a commission on gross sales above a certain sales threshold, yes. >> director harper: and it's just self reporting? >> we have the right to audit

those sales in the license agreement and they are reported monthly, not annually. because they are on a license agreement. >> what is your strategy there in terms of how you portion that and what you think is attractive to one vendor versus another and risk and things like that? >> what we first looked at is there an -- their investment. because these are short-term deals and we do not know how long they will be out there for, we looked at where we need to mitigate in this case their investment in risk and then the second thing we looked at was traffic and we just an estimated and the sales. interestingly enough, everyone we talked to sort of had to guess -- the same gas of sales based on an average transaction, and an average amount of customers per day. there's a huge upside here which is they will report their sales monthly and in some cases it is an eight % over $25,000 in sales. do we think that the café will

do better than that? yes, bluntly yes. but, on the same node you want to make sure they are not operating in the hole for the first six months. so this is about for lack of a better word risk and reward for the merchants. it has been a conversation with the merchant so we spoken with to understand where they're threshold is. obviously everyone looks at the southwest transit centre is an amazing opportunity. for some of these merchants it maybe a long-term opportunity. they may come in and realize it is worth the investment and they can raise the capital and want to be permanent. but the merchants we are talking to are not there yet. these are really entrepreneurs. you know, they can invest $100,000 in a trailer but they can't invest a half a million dollars and build a store. >> director harper: okay. >> i have a question. >> yes, sir?

>> chair nuru: the farmers' market seems limited for once a week for a few hours and that seems to be something that attracts people and people like. and so -- >> why are -- why are they farmers markets? typically they have a certain amount of hours the operating has to do with a series of things. one is, i will back into this. we picked wednesday from three until seven. because of three major reasons. there is no other farmers' market in the evenings on wednesday nights in the city. we have the opportunity to have one when no one else does. there are, however other farmers markets during the day on wednesday. so those merchants who are operating in the market's, if they don't want to go home at two or 3:00 in the afternoon and take that drive, we are offering them another location to come to you and scent up and maximize of their day. but, they typically, for lack of a better way to put it, they max

out the amount of customers that they want to purchase. they are maximizing their products. one of the merchants who is coming makes his own coffee beans. he is not selling his coffee or sampling it, he just makes coffee beans. he thinks that these are the world's best copy being an hero's them himself. he will have a limited amount of inventory. our hope is that he will sell out. i don't know if you have gone to a farmers' market at the end of the last hour, but in many cases, with the exception -- exception of heavy heavy produce, the berry people are out of their bit berries and the egg guy is out of his eggs, they bring a certain amount of product. and that's actually good because they want to be able, especially if it it is perishable, they want to sell out of it. >> chair nuru: i feel once a week might be too little considering the volume of people coming through and the types of

things that they would want and considering knowing some of the clients that are working closely at using the centre. i think the type of major user there is someone that would want to get fresh vegetables and things. this seems to be the trend in a lot of these large areas. i saw oakland 80's has put in a nice garland there and the giants have one and they're doing pretty well. so the fresh is kind of what people want. it seems limited. >> so, director, we have the opportunity to grow this once it's in place. i think if the demand is there, and stairs opportunity and the merchants ask for that opportunity, and the consumer asks for it, there is no reason why this can't be twice a week. one of the things that we did definitely look at was where all of the other farmers markets where. there is twice a week, it is at the ferry building. there are some that are quite

close. part of what we were trying to do is not compete with any of the area markets. we wanted to be a little bit more collaborative, and then frankly, some of the farmers markets are not doing as well as one would imagine. that is why we opened it up and said, you know, we need to include the pop up peace and we think that's going to be a significant piece of this market, more of that entrepreneur opportunity. so i do think that there is room for growth. i think we start with the wednesday and if we see that there's 28 spots and there is 50 people that want to join there is certainly no reason not to expand it, frankly. >> chair nuru: questions from the directors? >> good job. >> thank you very much spee janet we will move it to the next item. item 15 is making an amendment

to the implementation of the position of executive director. members of the public have educated -- indicated they want to public -- comment on the item. a first and a second. director armistead?. >> working for the city and county of san francisco will immerse you in a vibrate and dynamic city on sfroert of the art and social change we've been on the edge after all we're at the meeting of land and sea world-class style it is the burn of blew jeans where the rock holds court over the harbor the city's information

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>> all right. so good morning, everyone. thank you for joining us today. you know, for the past four months, as mayor of the city of san francisco, i have from reside residents across our entire city up and down the ladder about the streets of san francisco. our streets are filled with trash and debris, and it is unacceptable, and i've said from day one the cleanliness of our streets is going to be one of my biggest priorities as mayor of the city of san francisco. san francisco residents are fed up with the conditions, and i am the first to say