>> bring the meeting to order. okay. roll call. [roll call] >> clerk: item 2, the minutes will be presented at the next meeting. item three, public comment on executive session. >> president brandon: is there any public comment on executive session? seeing none, can i get a motion to go into executive session. >> so moved. >> second. >> all favor. >> president brandon: can i have a motion to reconvene in open session?

>> motion. >> second. >> all in favor? >> aye. >> i make a motion that we don't talk about anything that we talked about in closed session. >> president brandon: all in favor? [voting] >> president brandon: pledge of allegiance. [pledge of allegiance ] [agenda item read]

[agenda item read] >> president brandon: is there any public comment on items not listed on the agenda? seeing none. >> clerk: item nine, executive director's -- >> president brandon: oh, corrine. >> hi. my name's corrine woods. i'm a long time port watcher, and i'm here today to honor and appreciate leslie katz, who was a port commissioner for at least six years, and i wanted to ask the staff to plan something that we can, in fact, show leslie how much we appreciated her service here. she not only brought intellect and knowledge, she brought

heart to this commission. and i really hope the port will hon honor her. thank you. >> president brandon: thank you. corrine. [agenda item read] >> good evening, members of the port commission, public, port staff. i am elaine forbes. today i have the pleasure of welcoming back our two commissioners and two new commissioners. the mayor's office confirmed the reappointment of doreen woo ho, and willie brown. the mayor's office has recommended and the board of supervisors also confirmed the new payment of gail gilman, term ending 2022, and victor makras, term ending 2020. miss gilman has over 20 years of housing experience.

she joined the community housing partnership chairman in 2010. [inaudible] >> -- an equity framework. miss gilman is involved in regional and national public policy efforts, including serving as the california's homeless coordinator and finance council, which is a governor appointment, and she was most recently a dbi commissioner. mr. makras has 30 years of civic experience. his first commission was the board of permit appeals. he was a puc commissioner twice, police commissioner, and was very recently serving on the retirement board, which is a $23 billion fund. mr. makras also has 30 years of experience in real estate. he served as the president of 4,000 member association of realtors. since 1990, he has led makras

real estate which specializes in all types of real estate properties. welcome, mr. makras. we're very excited to work with our reappointed and new commissioners. we appreciate your wisdom and insight. they have experience on a broad range of topics. we know we have a big job ahead for our port. we are bringing and serving many diverse communities here in san francisco, and we need to prepare our waterfront for the next generation so it continues to be a place for everyone. thank you for your service to the residents and visitors of san francisco, and welcome back, and welcome aboard. thank you. >> i would just like to again, welcome, commissioner adams and commissioner woo ho back. it's been a pleasure serving with you guys for the last

eight -- >> seven. >> seven years. it's been a real pleasure serving with you two, and i'm so happy you have been reappointed and are back to continue all the great work that we're doing. we're also extremely fortunate to have commissioner makras and commissioner gilman and their years of real estate experience that we definitely need with all the projects that we have going on, so i think it's absolutely wonderful that we have a full commission for the first time in i don't know how long, but i do want to say we are going to miss commissioner katz, all of her words of wisdom, all of her -- her great ways in all that she contributed to the port, so we will miss her, and i hope that we can plan something for her to recognize her service here at the port. >> absolutely. we'll work on that, madam president. thank you. >> i would just like to add and thank you, corrine for making

that recommendation for supervisor katz. i also wanted to, because we didn't have a chance at our last meeting, which was leslie katz' last meeting to say anything about her service on this commission, so i'd like to take a minute also to commend her for her service. as corrine aptly said, her heart. i think going back when -- she preceded me brief plea before i joined the commission. i think she was appointed by mayor gavin newsom, and luckily, we haven't had a lot of issues that she spent a lot of time helping us with. we had a lot of litigation, we had a lot of issues, and her expertise, she was able to guide us with her background. she had issues that she was passionate. she was passionate about open space, she was passionate about making sure we took care of dogs, and that was something i never forgot. i think she was passionate about the seawall, and she was

passionate about a lot of things that we've done on the port, so i think we want to thank her for her service and wish her well going forward, but i just wanted to commend her and say we appreciated her being on this commission, as well. thank you. >> anyone else? >> okay. thank you. >> okay. i have a couple more items. i'd like to announce the san francisco heritage soiree at pier 70, which will be on may 19 from 6:00 to 11:00 p.m. this event is a popular spring event in san francisco. this year, the event will be at the port's 20th street historic building core featuring the union iron works historic district at pier 70. the project is as a result of the partnership between the port and horton development, and it will showcase the

amazing rehabilitation, so i encourage everyone to find out more and consider joining this event. also i'd like to acknowledge that our president, kimberly brandon will be recognized as one of 2018's most influential women in bay area business by the san francisco business times. it's a great honor that our esteemed leader has been named among these very, very flu influential economy. the event already on tuesday at 5:00 to 9:00, and congratulations, madam president. we're very proud of you. thank you. >> thank you. >> and finally, staff would like to ask to adjourn today's meeting in memory of two

notable people. first in memory of doris ward, she became a spiefr and she was the first african american women to serve the role of board of supervisors president. she lived a life of social justice, and she was a very kind person. she was certainly a trailblazer. we'd also like you to adjourn in memory of lee radner, who passed away this past sunday, best known for fighting hard against the project across the street. but he was a very kind and generous person in the community. he was the sponsor of many charitable events that brought kids to the bay club. he was a passioned -- a passionate waterfront lover.

he swam, i think, 300 days in a row and was honored at the board of supervisors for doing that. he just did that just this last year, so staff asked that you adjourn please, in his memory, as well. that concludes my report. thank you. >> president brandon: thank you. thank you very much. is there any public comment on the executive director's report? >> clerk: item 9-d, port commissioners report. >> president brandon: commissioners, do you have anything to report? i know -- commissioner woo ho, do you have anything -- >> i just want to say on behalf of my felly commissioners that we want to congratulate you again on this -- fellow commissioners that we want to congratulate you again on this award that you're going to be receiving june 5. we've worked in leadership together, we've travelled together, and i think it's certainly long overdue. so congratulations, and i intend to be there to cheer you on june 5th. >> as a recipient of the honor in the past. commissioner gilman?

anything? okay. commissioner adams? >> first of all, i also want to take time to say a very special thank you to leslie katz. having the time to work with leslie, she was very hard working. her heart and soul was in san francisco. being a former supervisor, being a commissioner, and leslie's commitment to social justice and politics, and leslie was always very proud that her dad was one of the attorneys that represented dr. martin luther king, and so we will definitely miss leslie. thank you, corrine for that touching shout out about leslie. well deserved. i want to say to commissioners gilman and makras, welcome. you jump right in. thank you so much for that. and doreen and kimberly, thank you for the time that we've had on the commission. i just want to bring the commissioners up to date on what we were doing. i missed the last meeting. i was in melbourne, australia,

and i went to nashville, tennessee for the anniversary of the assassination of dr. martin luther king. we need to talk about the seawall commercials and to use it right here and bring it down home so that we can really get the seawall going. and then, this morning, i flew in from sydney, australia. i spent the last three days touring the port and brisbane, and as always, it's good to be bad. >> okay. thank you. amy? [agenda item read]

[agenda item read] [agenda item read] >> so moved. >> second. >> is there any public comment on the consent item? commissioners, all in favor? [voting] >> resolution 18-26, 18-27, and 18-28 have been approved. [agenda item read]

>> good afternoon, president brandon and commissioners. my name's kenny chu. i'm the project sponsor for the pier 94 bad lands project. we are requesting authorization to award the construction contract. so just a couple of points, couple page. [inaudible] >> of the backlands area.

the project return the vie can't land at the balance into approximately 16 acres of these properties for construction lay down, storage, and equipment staging and other industrial support uses. the project's goal include grading the side, construction of an access road so the access road is shown in the green. the access road is from the embarcadero extension. so if you can say embarcadero street and go to the extension and go to the side. this project is also including

construction of storm drain systems. so this side is going to be shift flow with some of the piping and the -- [inaudible] >> this project is also including street lighting. this is also going to come from embarcadero street extension and go to the side of the access road. this project is also including the landscaping surrounding the area. and under them, the major area of construction's capping the regular landfill area, so you can see this at all, it's the northeast corner of the area.

[inaudible] >> liveability. the project for most living wage goals, so the goal for the project is 20%. sustainable. the project will include best practice for construction. economic viability. the project will provide the port approximately 16 acres of leasable property. abilities. the project, you give the port the opportunity to lease the area for long-term tenants. port commission advertise stop -- [inaudible] >> on april 17, the port received four bids. of those four bids, the price

of the base bid ranging from 6,712,203 to 700 -- to 7,864,280. the engineers estimate for the base bid was 7 million, so i bids all come in very close. al hoseley corporation submitted the lowest bid. you can see this, the hoseley's bid, the base bid, 6,712,203. we have one alternate bid that cost 256,800. so the total bid price is $6,969,003. the total cost with the 10%

contingency is 7,665,903. that's the amount we ask for the commission to approve to award the contract. so the construction costs, as we said, that number. the soft cost included the sign, some of the funding be transferred to dpw for the design and other consultant's help for the project during the building design phase is 667,302. so during construction from now on, we still estimate some soft cost for construction support, so that amount is still 765,000. so the amount for this todd

8,093, -- for this project, 8,093,765. so you have record -- regulatory permitted for the project. we have ceqa's category exempt for the project. we receive water port approval for the land cap cover design. [inaudible] >> -- for the project. report of commission's authorization, we anticipate the project schedule as follow: we're going to award the contract in this amount may 2018. start construction, june 2018.

substantial completion, november and toward get the project completed construction by the end of the year. port staff recommends port commission authorize to award the position contract pier 94 backlands construction project to hoseley corporation in an amount not to exceed 7,665,903, and authorize the city to accept the work when it is completed. so i have someone here from the

office to continue to tell you about the project goals. >> good afternoon, commissioners, president brandon, director forbes. i am the assigned contractor compliance officer for this project, and i am going to provide a breakdown for you on the mvewbobe availability of lbe sub contractors that were available to do this type of work. as you can see in the first column, we have concrete, cleanup doors which means activated doors, earth moving, landscaping, and pipeline. -- pipe laying. as you can see, we have listed the total number of lbe's who are available to do this work. the designation of concrete

construction cleanup doors for the electric, etcetera, those designations come from the port. they send that information to cmd. we have a discussion, and we look to see about maximizing the lbe opportunities on the project. here is another graph starting off on electric. you can see the number of mbe's, wbe's or obe's by specific discipline. you can see for the electric, we have approximately 27 mbe's. we have approximately seven or eight lbe's, and the rest are obe's. so most of this work with the budget allocation for these large scopes of work were primarily earth work, and there was only one lbe who is

certified a wbe who was certified to perform that work. as you can see from the next slide, you can see on the slide on the left that the blue dots -- you can see where primarily the lbe sub contractors are situated or located. and you can see that we have a large concentration or cluster around the hunters point dogpatch area. on the right side, you will see where the lbe's are located. the lbe's who are listed by hoseley construction. hoseley construction, the front contractor, is actually physically located in the 94124 zip code. he is currently leasing or on port property, and we have

other lbe's in the 94110, which is the mission district, and we have a number of lbe's in the 9 h 4134 visitacion valley area. we were asked to explain how we have changed our outreach, and we have become more proactive. we have become more proactive because now, confwe are seekin information from other departments. we are developing relations with the community. as you can see from the top title, initiated contacts with the chamber of commerce associations and business associations, presence in the community, outreach in the bayview, south of market, mission, with nonprofits and prime contractors. in the surprising department as

collaborated, we surprise with nonprofits in district six, nine, and ten. and more importantly, we are also working with the state contract licensing board to seek out firms who are situated or located in san francisco. once we get that information, we then approach them and inquire if they are interested in becoming certified as an lb. and the last note on the screen that cmd has signed an mou with the treasury or tax collector's office where we cmd inquire if there are any new construction firms that are recently certified -- certified or hold a liz bns, and then, cmde will -- a business license, and then, cmde will go out and contact them. that is the end of the presentation, and i'm available for any questions you may have.

>> president brandon: thank you very much. can i have a motion to approve this item? >> so moved. >> second. >> president brandon: is there any public comment on this item? seeing no public comment, commissioners, commissioner gilman, do you have any questions or -- >> no. >> president brandon: okay. commissioner makras? >> none brand bra. >> president brandon: okay. commissioner woo ho? >> yes, a couple questions. can you explain because i'm not sure i've seen hoseley come before us as being awarded a contract. can you explain -- maybe that might be also not good memory, but can you explain the background of hoseley and their experience with the port or with the city in terms of other work that they've done? >> hoseley corporation is a newly certified lbe. >> so it's a new company?

>> it's a new company. although they are a new company, the port and cmde met with hose lay corporation -- hoseley corporation, and he explained his rather extensive background. he has been in the construction industry for over 20 years -- >> so you mentioned in the notes here that he is neither minority or women owned, so -- >> that's correct. >> so just local business enterprise, just based in san francisco. >> just based in -- so when an lbe is seeking certification, the certification go out, and the potential lb is going to meet certain requirements. they need to be based in san francisco for six months -- >> okay. i appreciate that you've given us, and i will say -- i should have prefaced my comments by saying i think you've given us a tremendous amount of information on the lbe aspect of this, which we obviously know that is one of the goals of this commission, which is to

make sure we are giving business to our local businesses here in san francisco. i applaud you for explaining and the amount of effort which you've done. but i judges want to make sure that you are comfortable -- i think in the future if you have some new entity that's never been before us, that we have some explanation of that company's background. this is a large contract. this is not a small contract. >> we understand that. so in the -- [inaudible] >> -- work, and after that, before the bid openings, we have a bid team's chief operation officer here and other people with engineering speak with hoseley and their qualifications about the project, and they provided qualification. i did not meet directly --

>> so we have references in terms of other work that he has worked on. >> yes. they are new in business, but the people, the president, they are in this business for long times. >> and the companies that he's associated with in the past, are they known to the city and to the port? >> if i check their records right, they did have a couple contracts with the city, some of the work in mission bay. >> so i believe they served as contractor for other city work. >> during a conversation i had with -- >> you need to use the microphone. >> sorry. in the past, they've done a -- hoseley has done a lot of work with the airport. >> okay. so in the future, i would appreciate if you provide a little more information particularly on a contract of this size, that we have a little more information on the background in addition to everything that they're going to be doing, which is positive, but i just think it gives us more comfort that we have picked not only the lowest bidder, but the person that has the best qualifications and skill to do the contract.

the next question i had, i understand we're not quite sure quackly where this investment, but it would seem to me, just coming from the private sector, if you're going to put this amount of money into something, you would have some sort of return on investment. now i think that's sort of in the real estate's area to project, if we're putting this money in, what is our potential return for this investment? >> and i would like to say, we didn't include that information in that report, and that is on me. so apologies for that. because we have been discussing this project since 2010 in a variety of fashions -- fashion. and when we approved the budget for the project, we talked a lot about the financials. but our ceo is prepared to talk about the financials because we realized there was a hole in the report, so katey, could you please come up? >> i think that's great,

because it is a big investment, and we need to know what we are going to get outfit investment. >> we are assuming that we will lease this property primary for lay down and construction related activities. we are currently projecting, based on an assumption of 60% utilization, that an annual income for this property would be about $2.1 million a year. assuming it's going to take us three years to lease this space, which is probably a pretty conservative estimate, the project is expected to generate $7 million in network over a ten year period, which is about a 19% r.o.i. >> so it would be a payback of approximately ten years. >> yes -- oh. >> less than that.

>> less than that. >> okay. i appreciate that, but elaine, think that would be good for us to know, making the investment, how long it's going to take to make the investment and what the payback is. [inaudible] >> i'll follow up. why don't you walk us through the contractor's experience with these types of jobs. >> i would have to give further questions to ken. >> so contracting procedure of the project. so if i'm assigned to the project, i'd get the design done, permit, approve the project, so all the interested party in the port organization to review the project. and when we get the design ready and we check the funding available, so we work with the

financial and prepare for the lbe goals for the project, and ask port commission to advertise the project. then, we advertise publicly. so usually about four weeks to get the bid come ins. so it's the city's policy to award the project to the lowest responsible responsive bidders. so this is the process of the project. we award to hoseley. before we make a decision to recommend port commission to approve the project, port engineering accept background of the contractor as the low bidders and get input from a cmd, and that's on us to make a decision, the lowest bidder and present to the commission for approval. so after commission approval,

we're going to have -- [inaudible] >> that at times we direct the contractor to do the construction. so the construction is going to be following the design and get constructed. >> can we hone in on hoseley corporation, who you're recommending we go forward with? i'm just following up on my colleague's questions. how many years have they been in business? >> they are in business roughly three years in business. >> talking about 5 million and above, how many projects have they started and completed in a

year. [inaudible] >> please speak into the microphone. >> i was privy to the meeting that hoseley had requested to meet with port staff to be able to explain this past experience. what we were told from mr. hoseley was that he had been previously involved with a large construction company that were working on 50, $100 million projects. and there was a decision amongst the stakeholders in that company that they were going to partways, and mr. hoseley decided to setup his own company. so when he met with the port staff, he was able to explain that he had been involved in 50, $100 million projects, and that he in fact did have the experience to do this project. that decision was then assessed

by the port team, and then, they would determine, after checking references, if he met the specific construction qualification requirements which were specified in the legal bid advertisements. >> and what was that? what was that? >> when was it? >> what was the specific requirement? >> if i may read this for a second. contractor -- contractor qualifications: valid contractor's license for class a issued by the california contractor's state licensing board with at least five years of experience working on related civil projects. contractor shall have documented experience in performing a minimum of three krisk engineering construction projects with similar work as shown in the contract documents over the last five years. contractor shall have documented experience with a minimum of three public works projects over the last five years, and has either state or federal osha cited and assessed

penalties against the firm for any serious, willful, or repeat violations of its safety or health regulations in the past five years. >> so forgive me for focusing. this company, their experience, versus a resume and experience working for someone else, there's a distinct difference to me. so for hoseley, what's their company? because that's who we're hiring. so i'll go back, three years they're in business. how many contracts have they done of similar work of $5 million or above? >> commissioner, i'm going to defer that question because it's not actually a cmd question, and i would be getting in deep water. so i would like to defer to rod, who's here, and he would

be the most qualified to answer that question, please. >> so while we're coming up, when the qualifications are listed in the bid, in the bid, so they list those qualifications, how they meet them in writing? >> yes. >> they have to meet the qualification, they have to list the qualification form's attach today that. so -- [inaudible] >> -- works that have been done, so... >> the distinct difference to me is someone's experience versus a company's experience. i can work for another firm, but i'm not responsible for the checkbook. i'm just responsible for my job, and they can be real good with the checkbook. but if we're signing a job to hoseley, then hoseley's

responsible for both the checkbook and the work, so that's my focus is to see that they're an experienced company, following up on my colleague's questions. so... >> if i may, before rad responds, all of the bid documents are provided in writing, but i think the commission is asking very fair questions about the experience of the firm that was deemed the lowest responsive bidder. we need to get some very concrete detail. i know that they are a newly formed lbe, meaning, they've just been certified as an lbe, so this contract has a very large percentage to lbe's with the prime and thesubs, before they were certified as an lbe, how many years were they in work performing business as the entity with which we're recommending an award today, because the work or experience of a principle does not carry over into how you evaluate the

firm's experience. so what i would recommend is we get some specific answers because i think we need more detail here, and i would recommend that we at this point hold this over and get some rereal detail around this firm. because i hear us all struggling here, but i think we need to get a bit more research here. >> i totally agree with you. >> i agree with you. [inaudible] >> okay. thank you. >> president brandon: i also appreciate you doing the lbe briefing, and i think my concern with this project and other projects in the southern waterfront is we have no african american firms in these contracts. so what type -- and the outreach that you're saying that we are doing -- a lot of this, we've been doing for years, and we're still not getting much results. so i guess i want to know what we're doing differently to get the word out that we have

contracts available, that we have work available to all minorities. >> i'm happy to answer the question. >> president brandon: okay. >> okay. in the slide -- >> please speak into the microphone. >> in one of the end slides, we know that cnd is actively pursuing all lbe's or new firms which are coming into san francisco, outreaching them. cnd is reaching out tot firms. so we would reach out to a firm, they become certified. and as part of the certification process, we would inform the newly certified lbe

that the city offers assistance in assisting that newly certified lbe with -- in direction where to obtain technical assistance. we would provide information about meriwether and williams who provide assisting bonding directions. we would provide direction on the puc contract assistance. so as far as the newly certified lbe's, we can provide all this information, which, in fact, we do. and for this specific project, cmd sent out notices to all the lbe's. the port did abexcellent job sending out notices, and i have, actually -- actually notice that this is posted on the website.

so we as cmd goes to these events, speak to the supervisors. we provide information, we provide technical assistance, and -- >> president brandon: and i truly, truly experience your response. >> i'm not finished. >> president brandon: i know that. i know that you're very passionate, and i appreciate all you're doing and i appreciate all that the port staff is doing because we're doing exceptional with our lbe goals, but i'm really trying to understand what we can do differently because besides talking to newly certified firms, we have a pool of firms that have been certified for years that we're still not doing business with. so i'm trying to figure out what the port can do -- and i understand that the cmd is

doing things different, but i want to understand what the port can do to ensure that when we have those projects -- these huge projects in the waterfront, that is historically african american communities, and the african american community is continuing to dwindle and dwindle because they're not getting jobs. so i want to know what can we do now that our focus is finally in the southern water. we have this one, which is a $7 million contract. we the next one, which is a $5 million contract, but yet, we can't get any african american firms on these contracts. and so i'm just asking -- and you don't have to tell me today because you're going to come back. but i just need someone to really think about what we're going to do differently. >> if i may just -- just add to that, i want to commend the port because any time the port finds a potentially new lbe,

they come to me, and i will sit down with them, with a spec book, and explain the benefits but also explain what they will need to do. we also must be cognizant of the fact that the city is very, very busy, and we have projects at the airport, park and rec have projects, puc have projects, and we are now engrossed with private development projects. only today, i got a call concerning a printing subcontractor who's working on the vanness and geary hospital. so you have all these projects. >> president brandon: luckily, i'm only concerned with the port, luckily, and i just really want to focus on how we here at the port can do a little bit outreach. >> we are doing an excellent job. it's like i said, do who we're reaching out to do the work

that the port does? >> president brandon: i'm sure there are firms that do grading and graveling and trucking. i'm sure there's somewhere in here we could have fit a firm. but i really appreciate the fact that you guys are going to come back with more answers, and we can talk about this next time. >> thank you for giving me the opportunity to speak. thank you. >> president brandon: thank you. thank you so much. >> i have a question. did this thing even come in in a formal? >> yes. so we got the authorization to advertise, and the port does very, very extensive outreach. so we work with all of the chambers of commerce. we send out to all of the registered businesses, we hold open houses for upcoming work. we do literally as much as outreach as we know how to do. and the frustration, i think, that we see on this commission -- that the commission feels is that after we do all the outreach and the

work with cmd to figure out how the work can get distributed to maximize lbe participation, get the word out to businesses that we're interested in seeing, minority and diverse contracts, once we put the bid specs out, it's the lowest responsible bidder that wins, and the lbe program is neutral to race and gender. so while cmd specified what the make up is, and president brandon is right, there are a lot of mbe's in this arena, we come to you with the lowest responsible bidder and recommend that award, and there's nothing else that we will do at that point. but we will continue to think about what we can do differently and how we can see this area grow and do better, but we are bound by that city contracting regime. >> i understand that, but when

did this item come as an informal presentation to the commissi commission. >> did we miss a step? >> we did not miss a step. >> when did it come? do you remember? >> so we got authorization through the budget, and we got authorization to advertise, and now we're here with an award, so this is the third time we've been to this commission on this particular project. but i can -- when we come back with the information about the -- the firm that we're recommending, we'll also note that -- have the date of when we came with the informational. >> and also, the project is going to cost 8 million, but you're only asking us for 7,765. >> the project as bid is going to ask 6,969, but we're asking for a 10% contingency. >> but the total amount is -- >> i believe that's including work that's already been done

on design phase. [inaudible] >> i'm sorry. i have the date, i'm sorry to interrupt, president brandon. on february 13, 2018, you asked us to go and advertise for this construction contract. >> but we already approved the soft cost and the estimated cost soft? >> yes. >> okay. thank you. >> yes, because this has been a live project for us for sometime. it was originally budgeted in 2010. we defunded for the america's cup, and as soon as we had funding again, we came back, so we've had an active live budget on this project for many years, which afforded us the design work with dpw and allowed us to get to this point. >> president brandon: any other questions? thank you very much. we look forward to you coming back. [agenda item read]

>> good afternoon, commissioners, thank you for your time today. my name's jonathan roman, and i'm the director for the mission bay ferry landing project. this project is for design, permitting and construction of a ferry landing at mission bay. in june, we will have a more detailed presentation on the status of the project. for today, we're requesting an increase to the architectural engineering contract as detailed in this presentation. this is a bird's-eye view of mission bay of the project. we're looking north.

at&t park is to the north. china basin is just below that, and then in the tent area is an older representation, the mission rock development. just south of that is the new chase center. to the west of that is 16th street, and the proposed ferry landing is at the bottom center of the screen. the relocation of the boulevard is commencing now, and bay front park to the north is at 90% design which is being implemented by others. you can see there's a lot of activity in the area. mission bay is one of the fastest growing neighborhoods in the city. the port recognized that it's rapidly growing. in 2016, the port commission authorized the study to install a if you nerry land -- new ferry landing to service the area. other transit systems in the

area, how to minimize dredging, and other issues such as cost. a final site was selected and an rfp was issued for the design and permitting. a joint venture of cali and oemm which is an lbe here in the city was a successful bidder. in october 2016, the commission authorized the contract for 3.# 7' $1 million. the commission also authorized 10% contingency of $398,000 which was not applied to the contract. design and entitlement started in february 2017. this is a picture of the architectural model of the ferry land will. one of the agencies requested the model to help them visualize the impact. the fixed pier is to the left,

the float is to the right, and then, the gang way is in the middle, in between. here is a picture of the current site conditions. the ferry landing would be about where the -- the four piles are sticking up out of the water through riffraff. it would extend east ward, and the piles would eventually be demolished. i'm going to use the highlighter here, but the dredge foot print would extend out to this pile right here and be used as a navigation aid. we fine-tuned the dredge foot print. the project is currently at 60% design. the contract is approximately 60% expended as of the march 2018 invoice. all environmental permits have been submitted, and we are requesting a contract amendment -- a total contract amendment of 785,000 -- i'm

sorry $785,166. this comprises of the $398,137 authorized for the 10% contingency as well as the $300,000 for unforeseen conditions. this also includes $100,000 in additional contingency. [inaudible] >> if you authorize the request, then, we believe that we can still maintain schedule. as a summary changes, the majority is due to unforeseen depths of contamination in the dredge foot print. we anticipated some contamination, but the depth was greater than expected which requires a protective cap. as an aside, we're also looking -- there's some opportunities for cost recovery during construction if we do

proceed with the project. we can report on that at a later date. the protective cap requires sediment moving analysis, scour analysis from ferry propelers, preventative measures for preventing erosion under all conditions, and a break through analysis to ensure that the contaminatants will not surface through the cap. we need to complete this soon to maintain schedule. we also received a creditor refund on the project due to a determination by city planning that -- that an environmental impact report was not needed, and which was assumed in the rfp, so that was about $250,000, and there was some other items that came up after the rfp was issued. we found that the bed rock was actually shallower, and that required different techniques than we originally anticipated, even though we had soil reports in the area. other changes related to

development the adjacent sites by others, for example, there were additional engineering required for drainage, which was required necessary to the ter terry francois relocation, and then also the architectural model as shown in the prior slide. so in closing, we respectfully request your authority to amend the contract by adding $785,166, to a total amount of $4,766,535 for the mission bay ferry landing for the cale olmn contract. this concludes my presentation. thank you. are there any questions or comments? >> president brandon: thank you. do i have a motion? >> so moved. >> i'll second it. >> president brandon: is there any public comment on this

item? seeing no public comment, commissioner gilman? >> commissioner gilman: i have no questions. >> president brandon: okay. commissioner makras? >> board member makras: no question. >> okay. commissioner woo ho? >> i think the only question i have, is why did it take us so long -- i think it's the first time in seven years that i've seen that we did not put the contingency amount in the contract, and it took us this amount of time to realize we had not put in the 10% contingency. i thought this was, i guess kind of semiautomatic, so i guess i'm a little surprised. >> yeah, it was not done -- i was not working at the port at the time, so i didn't research the actual conditions on that. >> well, i'm surprised the contractor didn't notice it. he was one of the ones that would notice it up front, too. >> i can answer that question for you, jonathan, since you weren't here. there are two possibilities. one, it was a straight up mistake, and we didn't add the

contingency what we made up the contract. the other one was the sponsor didn't want the 10% to be seen as their money. so one way or the other, it wasn't added at the time of execution. so once you allow us to go into a contract, we can do contract modifications within my delegated authority, and that 10% contingency would have been a contract modification i could have made under my delegated authority. >> i understand that, so let's understand going forward, because obviously when we approved this, this was in the public record that we had approved a 10% contingency, and the contractor would have seen that. so i guess in the future, we should understand if you're going to award a contract, are you going to -- so for our knowledge then, if we have