whether that change is voting on an issue in a way that they will really confident about, or that change is how to understand why it is important to support our small farmers. each class has a different purpose, but what we hope is that when people leave here they understand how to achieve that goal and feel that they have the resources necessary to do that. >> are you inspired? maybe you want to learn how to have a patch in your backyard or cook better with fresh ingredients . or grab a quick bite with organic goodies. find out more about 18 reasons by going to 18 reasons.org and learn about buy right market and creamery by going to buy right market.com. and don't forget to check out our blog for more info on many of our episodes at sf quick bites.com. until next time, may the fork be with you. ♪ ♪

>> so chocolaty. mm. ♪ >> oh, this is awesome. oh, sorry. i thought we were done rolling. ♪ >> meeting is called to order. >> (roll call). >> so moved. >> second. >> any public comment? all in favor? aye.

>> motion to go into executive session. >> second. executive session. >> can i have a motion to reconvene in open session. >> all in favor. >> aye. >> i make a motion we don't reveal anything discussed in closed session. >> second. >> all in favor. >> aye. >> you i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. . >> please be advised the use of cell phones and pagers are prohibited at this meeting. please be advice the chair mayorder the removal from the meeting room for anyone

responsible for use of cell phone or pager or electronic device. be advised the member of the public has three minutes to comment on each item unless the port commission adopts a shorter period. >> is there any public comment? seeing none. >> executive director's report. >> good afternoon, madam president, vice president adams, members of the staff, i am the executive director. i would like to introduce two people on the line. to my life is michelle sexton, our new general counsel. she has already hit the ground running. one chair down is lela from the board of supervisors. she was executive director of the youth commission. you will have a backfill for

amy. she has provided good value. welcome to both of you. first item i have good news to report on the progress of selling k north. last fall as part of the pier 70 the commission approved dd a and authorized future sale subject to board of supervisors approval. it is the only par cell in the pier 70 district that can be built upon without significant infrastructure development and will provide early revenue today out more costly associated developer investment and the construction of the parcel k north project provides important fees to the city, $20 million in affordable fees and delivery of plaza and front door for pier

70. earlier collier international offered the site for sale. based on feedback received from potential buyers they recommended a few advisements shifting the payments of taxes by one year and moving requirements to commence construction within 24 months. we have moved those adjustments with collier and received offers in line with the appraised value. staff will now seek approval from the board of supervisor next year and keep the port commission and public informed on this important transaction. >> also the fare rebuilding is sold. -- ferry building is closed october 9th. the buyer between hudson and alliant paid $291 million at closing. under the ferry building lease, the port has right to 30% share

in net sale proceeds. our staff and city attorney's office have been carefully reviewing the lease and entered into negotiation was the seller. we will realize $10.3 million at closing. i would like to comment our staff and commission who putna the terms of participation at sale. it is a important provision worth $10.3 million to us this year. all other lease term are in place. i would like the equity office partners for stewardship of the building. it has been very well managed over the years. we very much look forward to new owners for innovations and strategies to refresh the property and we look forward to working with them. i have prepared a short memo. we are happy to answer any questions. on pier 5 responses do halloween 2018, we have 14 facilities in

the rfi. it has been open for three months, and during this period we have engaged with wide ranging outreach to make all potential small and large tenants aware of the rfi. you will hear more when we come forward with responses. we have fielded hundreds of jobs. we have an intern, social media posts, presentations, to the chambers and port advisory. we have one online meeting, one at pier one. rebecca and her team are burning the midnight oil. we are excited what we will be able to bring to you. that concludes my report. thank you. >> any public comment on the executive director's report? seeing none. commission any report?

>> commissioner took me up on the offer. we went down and saw where the new hotel can go by pier 7 and 70. we had a great lunch and walked around. he had on jeans. david drove us down and showed us what was happening at pier 70. we looked at the shipyard and walked around. we talked about trying to climb the tower which would have been fun. a lot of great things are going to happen down there. i like commissioner makras is like me. he likes to go down to see for himself and ask a lot of questions. i just got back from singapore. i attended a conference with 125 different conferences. singapore is going through sea level forward thinking.

out front on a lot of different things singapore, and to visit the port you can see automation technology. one of the latterrest ports. you will see 300 ship in the harbor. one you have the safest cities i have been to and i learned a lot. maybe sometime we can take a delegation to singapore. they are leading the world in ports, technology, automation, general cargo. how they see things. they have robots walking around serving coffee and drinks. they are ahead of the world in electronics. i enjoyed it. >> i just want to have a question on executive director's report. grade we get the extra proceeds from the sale of the ferry building. when are you going to tell us if that was somewhat anticipated

but we didn't know until the deal was done. i would like to hear more how we intend to apply the proceeds. >> we estimated the proceeds higher. we have allocated the revenue in the general budget. we planned for it, put it in slightly higher than it com comn andol located it on the other side. >> thank you. >> anything else? >> i would like to report that i attended the american association port authorities in chile a couple weeks ago. i was supposed to -- commissioner adams, director forbes, peter daily, we were all to go. peter daily and i ended up going. we had a wonderful time. it was a great conference. valparaiso university is like

san francisco on the bay. it was held at the cruise temnal with 600 attending. great speakers, it was great to reconnect with commissioners from around the world. i thought peter daily was going to be here to give more insight into the conference. fortunately he is not. sorry you can't make it. it was a grueling flight, but we survived. i just want to report that. thank you. >> consent calendar 10a request authorization for project information package and rent agreement with the california national resources agency up to $5 million in grant funds for the san francisco safety and traffic prevention program. two requests for contracts for

general services and micro set aside contracts for construction management. $1 million for four years. item 10 c issue request for qualifications to solicits four engineering related professional services not to exceeds $4 million for a term of four years. >> do i have a motion. >> i will move it. >> second. >> any public comment on the consent calendar. all in favor. >> aye. 1856, 57, 58 are approved. >> the port contracting -- [ inaudible ] >> yes, commissioners, i am the

ports contract. informational item to review the ports contract activity for fiscal year 17-18 from july 1st of 2017 to july 30 of 2018. with past presentations this is chapter 14b of the administrative code and talk about the city's local hire ordinance. i will review the numbers of certified lbe terms and custhe payments made during the reporting period. this istivtive tiffany the out reach cord natetor and -- coordinate to and jewel is here. albie is from the contracted office and we are happy to have

him on board. the contract monitoring division classified minority business enterprises or other business enterprises and women enter prices or wbe. there are 1290 firms certified by the contract monitoring division. that is 146 firms or 11% increase over the last time i was here with this report six months ago. the contract monitoring division has expanded outreach. they expedited and automated the certification process resulting in the increase in lbes. we are happy with the work they are doing. 11% increase in lbe firms is significant. the program is expanding and we are happy with that. during the fiscal year we

awarded 14 new contracts at $63.5 million. 10 went to lbe contractors. we awarded more contract dollars than we have in the prior four fiscal years combined. that was due to the sea wall earthquake safety program. a $36 million contract awarded to ch2 a nonlbe firm. as you can see from the slide when we include the safety program the overall performance is 35%. when we excluded the lbe clients to almost 60%. during the reporting period we successfully awarded four contracts at micro-lbe set aside these are small contracts for competition among the smallest lbe firms. the piechart shows the 14 contracts awarded this fiscal

year by lbe type. four to nonlbe firms. remaining 10 to lbe to 3-a ward to women owned businesses and four contracts to minority owned forms. on right is the breakdown. asian-american firms three contracts. african-american owned firms one of those awarded to minority firms. to become certified they must self select women owned or minority owned. during this reporting contract one of the public relations contracts. it is owned by african-american women it is a woman contract award rather than minority owned based on self selection of the firm and certification status. turning to payments on open port

contracts. over $19.8 million paid on port contracts in fiscal year 17-18. 49% to lbe firms. during the reporting period the construction in the as needed service exceeded the contracting goals. professional contracts metal the lbe requirement. overall the port is exceeding the average 17% with 24% of all payments going to lbe subcontractors. it is important to note each of the contract category in the table are made up of many individual contracts with their own individual subcontracting goals. there are a few exceptions to the as needed real estate contracts, for example not meeting the set l be goals. we are working to bring those up before the contracts close. most of the others are meeting or exceeds the cmd requirements.

details of all current contracts are in attachments 2, 3, 4 of the report. in the past you asked if the contracts are on time and on budget. per our engineering division all eight current active construction contracts are on time and on budget. all professional service contracts are on time and budget seawall earthquake, mission bay ferry, design project is on time and on project and seawall communications contract. top table in the slide compares awards made this fiscal year against the previous four fiscal years. when we exclude the sea wall 60% went to lbe firms as opposed to 35. 50% of all payments made went to lbe firms that exceeds the

mayors goal of 40%. this is another view comparing awarded dollars and contract to lbes by fiscal year. this exclude seawall design project. good news we are maintaining the positive trend we established last year. we are beholden to the type of work required to the pool of local firms available to perform that work. over the past few years by lowering mi minimum qualificatis we have awarded 50% of all project to local firms. it would be difficult to sustain the numbers as the contract size of projects increase or become larger like the sea wall project. we will about the strategies over the past few years to continue, one, to expand pool of local businesses, two, ca catalg

lock firms. local hire construction projects over $1 million are subject to local hire requirements. since 201119 port projects have been subject to the program. all 19 met the local hire mandates. the ordinance is implemented by the office of workforce development. we have four open projects subject to the ordinance. three in compliance, one pier 23 is below the 30%. early wd anticipates the prime contractor roebuck will meet the contract by the end of the contract life. local hire ordinance is unique. it allows contractors to come into compliance through off-ramps such as off site or

apprenticeship opportunities. over the past year thanks to tiffany tatum we have emphasis on outreach at the port. we held the second annual contract open house on marc march 15th. to learn about contract opportunities in partnership with the san francisco african-american chamber of commerce we had a matchmaking session on thursday september 27th at pier 1. it is part of the effort to encourage and promote diversity equity and inclusion. we take this from you seriously. the mixer was attended by over 150 individuals over 100 small san francisco businesses. at the event large contractors networked with small owners to

connect and build relationships for upcoming contract opportunities. on november 7th we will host a technical workshop. a brag bag lunch specifically tailored to upcoming engineering r.f.q. you approved. at workshop we will provide information about proposal preparation, continues on building new proposals and how to avoid submitting defaults. coming in january new contracts. upcoming contracts, we have our formal engineering two that you just approved that will be hitting the street five days after the technical workshop on november 13th. this r.f.q. will have four $3 million as needed engineering contracts. we have four as needed real estate economic and planning

projects in november. four as needed set asides at $1 million each coming in january. we have some small construction contracts designed for high lbe like peer 23 restroom upgrades project. 35% of dollars were awarded to lbes, 31% went to prime contractors. when we exclude the sea wall design contract that climb to 59%, almost half of all payments on open and active contracts went to local firms. three of the four projects subject to local hire are meeting the obligations. our team is coming up with projects and programs like the technical workshop to build the lbes to compete and win public contracts. that concludes my presentation. i am available to answer any

questions. >> thank you. any public comment another this item? seeing none, public comment is closed. commissioner gilman. >> i was impressed by the community outreach and activities. i hope we continue to do that on a regular bases. our offices at pier 1 on the waterfront. southeast, northeast, attract folks. nice job in the community outreach and growth in numbers between last fiscal year and this fiscal year. those are my overall comments. >> one comment. we do host many of our construction pre-proposal meetings at the small business center in the city southeast sector. >> commissioner makras. >> great presentation. good numbers.

>> i think it is a great presentation. i think you will hear from your toughest critique. i think we have made a lot of great progress this year quantity and quality. i do appreciate your. i would have asked the question and you anticipated my question and said on budget and on time, which is very important for us and to be able to make sure you also report on that. i think that my question is i think the numbers are great. are we satisfied we can continue to grow these number us or are we peaking at the point? >> it is tough. we are be hold deb to the contracts we award. we have had a sweet spot over the last few years with construction contracts that are under $5 million, as those continue to happen, then i think we can sustain those numbers.

you know, we will do our best to unbundle contracts and create opportunities for small firms. >> i am aware and other of the other city departments. we have a business model working very well with outreach. results are showing it, numbers are good. i think we have best practice here. elaine you are nodding your head. are we sharing this best practice so other departments can learn from it? >> we collaborate with the other departments. qec is a leader. we are learning from them and also learning what works here at the port to expand the number us. one they we do other city departments don't do we track metrics and bring to the port commission. that is a level of accountability that we don't

see. that is for us to not only have the goal but measuring ourselves to it. >> if you expect what you expect you get the results. i have to give credit to the president who has been on this track for quite some time. we can see in the results it is working and hopefully she will be more complimentary this time than last time. >> commissioner adams. >> great. we have come a highway way. clearly president brandon keeps your feet to the fire. she don't take no for an answer. she keeps pushing you. you continue to raise the bar. i like what commissioner gilman said. outreach to the community is good. the port is about our loved community and provide an opportunity and to allow

sometimes the same people to get contracts. it is good to spread the wealth. it should be 1%. everybody needs a fair opportunity. there is a lot oftalnent. i appreciate you are -- talent. i appreciate you are tapping into it. people need an opportunity and i want to say to director forbes. i think having the breakfasts and reaching out to the community, that is saying something this will be your trademark with president brendon stepping out more, raising the profile. a lot of people don't know there is a port in the city. we have the best commission in the city. we all now that. i am modest. we have to lead by example. i hope we tip to keep leading. once again to you and your team, thank you. >> thank you so much for the

report. i saw when i looked at the agenda and where this is placed. i said we have good news. we try to put it at the bottom and hope everybody is gone. thank you so much for the report. this is wonderful, and the numbers look so much better. it is wonderful that we are doing so much more outreach and partnering with african-american chamber, mary weather williams to make sure local businesses know of the opportunities at the port. going forward we have a lot of opportunities. i really want to thank you and tiffany and bob and everyone on the new addition to your team for going out to let everybody know what is going on here at the port and making us look really good. i want to thank you for that and for your creative innovative ways to spread out the contracts

to attract new lbes. this is not a bad thing, just a question. it seems with the professional services we always lack in that area. i want to make sure that going forward as we put out the as needed contracts that is taken into k when we consider who -- consideration when we consider who to choose next. i want to know if there is some way to be able to incorporate that in the r.f.p. or what we can do? >> using the as needed engineering r.f.q. as an example. in the past we issued one with an award for $4 million. 10b and 10c we unbundle and split. there is one four contracts going out there at $3 million. we somewhere also set aside four contracts at $1 million each

only available for competition nudge micro -- among the smallest most disadvantaged lbe firms. >> it all depending on the availability of the pool when we looked at the availability of firms with the contract division, there are a lot of firms certified under the engineering categories. there are fewir when it comes to real estate, economics and planning. some of that work has to -- some of our work has to be put towards increasing that pool to reach out to firm in the city that may not know about the lbe program and assisting the contract monitoring to increase the pool. it is not there in certain disciplines and real estate economics is one of those. >> thank you. i appreciate the hard work you and your team are doing on this. thank you.

>> item 12a. [ inaudible ] >> good afternoon. planning and environment division. on september 25th i was here to present the jefferson street reconstruction project and fisherman's wharf. that was informational. i am back to present to you for your consideration of adoption of that. i have with me david fuller a resource for you following my presentation should you need it. what i want to do today is to just briefly summarize some of the high points of september and add in one other item of greater

information about that. that is what we will do. this is a jefferson street is five blocks to fisherman's wharf. phase one was the first. those were westerly. this is for the three easterly powell to jones. it is complete reconstruction of the street, walks and utility in the area. the project goals are, number one, improve safety for everybody down there. there is conflicts with bicycles falling into the rail tracks, a huge amount of pedestrian traffic, vehicles with the ability to move too fast on is street. safety is the primary purpose and also improve the visitor experience and encourage return visits to the wharf with a more pleasant environment down there. before phase one it was 37 feet curb to curb with street packing

and narrow sidewalks that are crowded and a couple images where the sidewalks are wide, the text turned paving which slows down traffic. the crossing at the intersections are shorter. more activity there. overall a higher quality visitor experience which has led many merchants and fisherman's wharf district to support phase two of the project. the project is funded by a group of agencies led by san francisco public works. it is a $13.783 million project. public works contributed 3.1. mta contributorred $2 million. county transportation authority 1.4 trillion dollars. the city reimbursed the port.

the other half comes from a local llp grant. partnership grant. it will come to me in a bit. that makes up. the project at this point does have complete funding as we go forward. a little review of the revenue impacts. following phase one, the wharf area has seen over $300 million in investment the that is over half of that in lodging. it also including other sector anythings the area. there is a lot of faith in what is being done. jefferson street can take credit for part of that. i would could be other reasons as well. the port contracted with difficulting to look at this project and prepared the retail project report for the community

benefit district. the phase two improvements are important to the long-term sustainabilities of fisherman's wharf and the port property within the wharf. when the ports act would on phase one it removed parking from all five blocks. three occurred with phase one. one side of the street will be with phase two to represent a loss of parking. our indications are that we have a chance to make that up in parking on two of the sea wall lots and increased retail sales as we share percentage rent with businesses in the area and long-term improvement of the wharf may show been fits of that. those are estimates. a temthat attracted a lot of attention last time was the area add assent to jefferson and taylor.

there is a triangle parking lot and there is a corner used for a variety of events throughout the year that the projec pro proposo improve of the it is home of the annual christmas tree from thanksgiving to new year's. fleet week, fourth of july. wharf fest. american italian parade. other events occur here throughout the year. the problems with the space in addition to being unsitely are the uneven surface, poor drainage, a curb on some edges. it has a chain used as seating due to the shortage of seating. people have fallen off the chains and tripped over them at times.

there are safety issued associatorred with the corner in addition to and the current condition not accommodating to uses occurring here. jefferson street projectsject does not change the use of the space. it is to make it safer and more appropriate. per the commission request staff will be returning at a future meeting with an analysis describing if benefits and impacts of using it for shared or single use. plaza full-time or impact of doing parking part-time. staff will also reach out to tenant to understand views of the space as most appropriate and report that forecast back to you. please look forward for that. here is a planned view you have proposed improvements that would

bring the paving up to speed on jefferson street roadway. vehicles will have striping for parking cars on there should that use continue, and there will be greater seating around the edges and hazards and tripping problems will be eliminated as part of that. regarding community outreach this started in 2008 to 2010 to do a concept design. that then moved to community outreach to address phase one construction. since then community outreach has begun to look at phase two, the design. it has gone to a number of different meetings, if it is larger or more targeted. benefit district board or fisherman's wharf restaurant association. one was at the bottom not part of the agenda for the

fisherman's wharf today. public works continues and will continue to meet with the groups to look at construction impacts when is a primary kerneling. construction impact -- primary concern. it is very real. it impacts businesses. it is a complete reconstruction to the road way and improvement to utilities. tents have a reason to be concerned. the project is three blocks long, going to be reconstructed one block at a time. first is the westerly block between jones and taylor that will be closed for a couple of months. i don't know the exact amount of time. one intern section will be closed -- one intersection will be closed at that time two. the third is the center to be done during the low season

between mason and taylor street to try to create the least construction impact. that will be ongoing with the tenants of san francisco public works and the port involved in that as well. >> of that concludes meprontation. >> motion? you second. >> no public comment. commissioner makras. >> i look forward to seeing the jefferson taylor corner. is it fair to say that it is for the presentation it sounds like a six month construction job from the presentation in writing is much longer construction job.

what is the impact on each block of commercial? >> regarding the construction period it is estimated at 14.5 mus. public works hope to bid the project before the end of the year and begin in april of 2019. the idea being it closes -- it occurs during one summer season which is the heaviest commercial season but not into the second summer season. it is not a six month job, it is a 14.5 month project. >> is it going to be closed one-third of the time for each block? >> no, there is one block that will be closed completely during construction between jones and taylor. the other two blocks have a rail line that can be used for circulation as part of the time that will not have construction on that.

the construction impacts vary from block to block. >> thank you. >> i think we all look forward to the improvements and agree that will make fisherman's wharf look much better. my question was on the corner. in what phase of the three block improvements will that corner lot be addressed? in the beginning or at the end? >> the project will be generally in three phases based on the three blocks. the third would be the center block between taylor and may son. that would be part of that. that is toward the end of the project. >> you come back later with more detailed description of what the use of the space -- the design is going to look?

>> that's correct. >> and the cost of what that is going to be? >> yes, the cost is included within the contract amount here and it is funded. >> thank you. >> commissioner gilman. >> thank you for the presentation. i am excited about that. i went to the war fest and had to jump overboards and chains from jefferson street. i am excited about it. those improvements are needed. is there a traffic study? there was a lot of misses, near accidents. will this improve traffic flow? >> based on our experience from phase one, it better handles the people down there now. a study done prior to fade one said most of the people down there are not in cars, most much

them are walking. the space between the buildings was primarily dedicated to vehicles. it expanded the pedestrian space to make it safer to cross the streets. it brought the speeds down. should accidents occur they continued to be safer. that is part of it. >> i am super--supportive of the project. i look forward to seeing what we do with this triangle once we improve it. >> commissioner adam. >> 10 years is a lounge time. i think we heard from the merchants last month. i understand that everything is worked out, is that good? public works? now we have a love fest. okay. i am supportive of it.

i like the first phase. last month commissioner makras was hoping it would be done in half time working two shifts. if the merchants are okay and we can work around it, it doesn't affect pier 39 an 39 and the to. thank you. >> thank you very much. i know the commission had a lot of questions regarding this. i am not quite clear. i understand you will be back in the future regarding the lot. in the meantime what is happenings if we approve this today? it is as is in i don't see anything saying you have to come back to us and we will decide if we are going to keep it as parking or use it as plaza or

combined. when does that happen. >> it affects 17 to 23 spaces depending on the you partly cloudy regular or do tandem parking on it. the way it currently operates now is how we anticipate it. the project doesn't propose to change that at all. it proposes to put a new surface on it and other amenities to reduce the safety concerns on it. >> a couple times each year right now it is a plaza. things like war fest and that will continue. we will come back after talking with the merchants to talk with you about recommendations to further expand the plaza use there. >> when you say amenities seating, permanent things that

preclude parking. from the last meeting what does that mean? taking away 17 to 23 spaces? >> if you could go back to the photo, the rendering. >> you are making a decision now to move forward to the plaza and come back to tell us what you have decided? i am confused here. >> the plaza has planters and seating at the edges which enhance the sidewalk us in those locations. it provides more space around the iconic fishermans wharf sign. in the pavement it will have dots embedded to show the parking spaces. there are not plans to put any seating to obstruct the use of those spaces for parking. it will be able to continue. the improvements on the edges, street edges at the north part

are planters that you could perch yourself on the edge of it. >> whawhat is the the concrete ? >> there is a curved bench at the corner. >> can you go back to the existing conditions slide? >> up on the back side of the concrete curved bench where i am waving my hand. that will be replaced with a largeir seating area to provide more room for the street artists to perform. >> i think what i am trying to be clear on is we have a lot of questions regarding this plaza. we were not at that point supportive of this being a plaza until we really understood what the parking impact was going to be, what the community concern was going to be if any, we are

here again now because we want the project to move forward. the plaza is still questionable. some way, somehow you have to come to us once you do the community outreach and understand the impact of parking. >> we can put in the resolution a requirement to come back and discussion this area. from what i understand the project improved the parking area. let's call it the parking area. the front door experience at the pedestrian path. obviously there are a lot of pedestrians in this area and on jefferson street. it is separating it and improving it. is it removing one parking space? >> do we want a permanent plaza? >> this is designed for parking. it will be striped for parking, used for parking. it also can be used as it is

currently for plaza space. >> you should probably show us that slide. >> we are saying it is parking that is the calendar item. it looks like a plaza. tell me if this is what you are asking to improve. -- asking us to improve. >> the cars enter in the upper right-hand corner of the image. >> go back to exist you go condition. the commissioners need to see it is all ballard around now. it is in the current condition. there is a separation from the pid pedestrian realm. >> i don't want to get ahead of ourselves and put it out there we are building a new plaza and we can no longer park from and we have community kernels.

the retail clients demand parking as part of their existence. >> you can put the othe the pho. take away the planter boxes between the parking. there is a very small space in the upper right hand corner to bring this is space. you are coming against the tenant and using that as a driveway. take the planter boxes and let it to be open. i want it to be a plaza. but i don't want any miscommunications on what is fair and what the real world is going to be. this is not going to work as a parking lot. >> i was there on saturday. right now i want to say where the planters are big stone bowlzers and chains to -- boulders and chains to walk over. >> it is clear it is a parking

lot now and the new design looks like a parking lot plaza. we have not decided which it is going to be. at this point we are going to do the improvements, make it a plaga and put parking there. i want us to be clear on the direction with the corner instead of with this showing that it looks like a plaza, beautiful plaza, but then we have a community that warrants a plaza and open space and teeningnants that need parking. i want to make sure we look at all of that prior to making this decision, which i thought is the conservatiotheconversation at tt meeting. >> we didn't want dpw off schedule. we want to move forward to work with tenant to discuss the use of the parking area, and utilize it for the way it is utilized now which is overwhelmingly

parking and open to the public on big events like this weekend. we will come back to the commission and report the kernels. it is in the port's discretion do say more or less parking and more plaza. we would have that. >> after losing $240,000 in revenue what additional revenue will be lost? >> in terms of revenue lost we are reimbursed from the initial investment that was a timing of cash. >> going to take away 20 sparking spaces -- parking spaces. >> the impact? >> the idea of the plaza versions parking is the way the parking lot is marc managed thes stacking and parking. sometimes when there is a big public evented with less cars

they are utilizing this because they know it is that kind of event. that is not a day we lose revenue because we have more pedestrians than parking. this is the information we need to get with the parking operator and tenants. >> right now it is used as parking every day unless there is a big event. we would lose revenue if we lose these spaces. i asked at the last meet what is the impact if we use it as a plaza. >> no change. we are not proposing to add more plaza. we are proposing to use it as today primarily for parking. if we propose anything different we know through the conversation with the community and merchants and come back before we recommend any change to what exists on the ground today. >> we are building a plaza. >> not exactly a plaza.

>> it is an improved area. >> how much money are we putting into this lot? >> zero. >> the city. >> we don't have a breakdown on that. >> you don't know how much is used to improve? >> i think it is not very attractive as it is. i agree if you improve everything else around it you should improve it to a certain extent. we are trying to debate the use of it. i understood it as continuing to be parking. when it is use use today for a plaza. that is not changed. the city bait is used for -- the debate is more plaza. it will in the take away parking. there is an investment here. you can't tell us how much will

be made to make it look better to match everything else in the neighborhood. >> there is way public investment the port would benefit from. >> it is still the city's money. >> it probably eliminates two parks spaces. if we improve the parking in this corner we wrote probably lose two spaces. the entry in the corner is looked at by public works and suitable to access the space. right now vehicles do not access from that space. >> aways in this space he -- i was in the space. is that correct? i am not arguing against that. >> it is really a cosmetic fix to make someone like me not trip when when i want to go to the four or five times each year i

can walk between the planters. the seating. i would assume it is zero sum gain. it exists now we are making it look better. >> no, it will take two parking spaces. again, i think we probably need to amend the resolution to say if we decide that we want to do anything other than parking you have to come back to the commission. >> i was in the current use of the lot today there is plaza use. >> any changes, yes. we will make an amendment. >> any other questions or comments? >> i would like to make that amendment. i would make an amendments if there is any change that have to come back to the port commission. >> i will second that gladly.

>> all in favor. aye. >> resolution 1859 has been approved. 13a. [ inaudible ] >> good afternoon. mike martin real estate and development. we came forward with a staff report on the vacancy report. i would like to walk through those statistics in the key vacancies and -- strategies to fill the spaces as our different opportunities for both short, intermediate and long-term leasing before us. i guess to begin we go to the statistics to the staff report.

this shows our vacancy rates against the benchmarks for the third quarter of 2018. office space a lower vacancy rate and in fact it is class c office space. we have an even larger spread between our office rate and that class c rate. we are at vacancy rate that is higher for industrial space. we use the broader market including san mateo county. in san francisco we are a preponderance of industrial space as they get snapped up for other uses. we felt this larger geography is better comparison. i have more to say about the prime spaces we would like to lease going forward for the industrial warehouse and shed spaces. we